Template-Type: ReDIF-Article 1.0
Author-Name: Brian Copeland 
Author-X-Name-First: Brian 
Author-X-Name-Last: Copeland 
Author-Name: Ashok Kotwal 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Kotwal 
Title: Quality-biased technical progress and North-South trade 
Abstract:
  This paper investigates the welfare effects on the South of
 quality-biased technical progress in North's export sector. North exports
 a quality-differentiated good. while South exports a homogeneous good. We
 find that if northern technical progress is quality-neutral, the South
 must gain, but if technical progress is sufficiently biased towards high
 quality goods, the South can lose. This is in contrast to the case of
 homogeneous goods, where the South must always gain from technical
 progress in North's export sector if both goods are normal. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-14 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Technological change, international change, quality, 
X-DOI: 10.1080/09638199700000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000001 
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Template-Type: ReDIF-Article 1.0
Author-Name: Panos Hatzipanaytou 
Author-X-Name-First: Panos 
Author-X-Name-Last: Hatzipanaytou 
Author-Name: Michael Michael 
Author-X-Name-First: Michael 
Author-X-Name-Last: Michael 
Title: Variable labour supply, taxes, employment and welfare under various rules of international taxation of capital 
Abstract:
  This paper develops a general equilibrium trade model to examine for a
 small capital-importing and a small capital-exporting country the
 employment and welfare effects of capital and wage taxes. The supply of
 capital is variable due to international mobility, while the supply of
 labour is variable due to endogenous supply adjustments. The paper
 considers the optimal policy toward one factor when the other is taxed,
 under three tax systems of repatriated capital earnings - (1) tax credits,
 (2) tax deductions, and (3) untaxed net repatriated capital earnings. The
 analysis also determines under which of these tax systems the employment
 and welfare effects of domestic factor taxes depend on the foreign capital
 tax rate, and under which ones they do not. 
Journal: The Journal of International Trade & Economic Development 
Pages: 15-28 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Variable factor supplies, rules of international taxation, welfare, 
X-DOI: 10.1080/09638199700000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000002 
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Template-Type: ReDIF-Article 1.0
Author-Name: Katsuya Takii 
Author-X-Name-First: Katsuya 
Author-X-Name-Last: Takii 
Title: Jobs, education and the underdevelopment trap 
Abstract:
  The purpose of this paper is to examine the complementarity between job
 opportunities and the level of worker education as a cause of the
 underdevelopment trap. I show that if firms or workers in the labour
 market have to spend money or time searching for a partner, then an
 underdevelopment trap may occur. This underdevelopment trap occurs due to
 thc complementarity between the firms' decision about their entry into the
 market and the workers' choice of the length of her education. This paper
 stresses the importance of a decrease in private costs of receiving higher
 education and recruiting new workers. 
Journal: The Journal of International Trade & Economic Development 
Pages: 29-42 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Complementarity, underdevelopment trap, education, search, 
X-DOI: 10.1080/09638199700000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000003 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Parikh 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Parikh 
Author-Name: David Bailey 
Author-X-Name-First: David 
Author-X-Name-Last: Bailey 
Author-Name: David Lovatt 
Author-X-Name-First: David 
Author-X-Name-Last: Lovatt 
Title: The European Monetary System and various tests of policy convergence 
Abstract:
  It is now widely known that most economic time series of nominal and real
 exchange rates, money supplies, nominal and real interest rates, price
 levels and annual rates of inflation possess the property of unit root
 non-stationarity (stochastic trends). The objective of this paper is to
 consider whether the establishment of the Exchange Rate Mechanism (ERM) of
 the European Monetary System (EMS) in March 1979 contributed to greater
 stability in member countries' exchange rates in the 1980s. and led to
 convergence to lower inflation rates. The analysis of time-series data in
 a multivariate framework suggests the existence of at least one stable
 relationship, and possibly two such relationships, in the goods, money and
 foreign exchange markets. The larger the number of cointegrated vectors
 for a particular set of variables, the more stable the system and the
 greater the reduction in the divergence of various indicators from their
 equilibrium values. We actually find fewer cointegrating vectors in total
 for the post-1979 period than for the earlier period, though the
 volatility of both nominal and real exchange rates are lower in the later
 period. It is, however, likely that the supply side shocks which Europe
 and the rest of the world experienced during the period 1973-79 could also
 have increased the relative volatility in indicators in the pre- EMS
 period as compared to the post-EMS period. 
Journal: The Journal of International Trade & Economic Development 
Pages: 43-62 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Cointegration, divergence indicators, EMS, monetary policy, nominal exchange rates, 
X-DOI: 10.1080/09638199700000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000004 
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Template-Type: ReDIF-Article 1.0
Author-Name: M. O. Odedokun 
Author-X-Name-First: M. O. 
Author-X-Name-Last: Odedokun 
Title: An empirical analysis on the determinants of the real exchange rate in African countries 
Abstract:
  The study employs annual data over 1970-90, pooled across 38 African
 countries, to examine the effects of a wide range of macroeconomic
 policies, devaluation and fundamentals on real exchange rate behaviour.
 Our findings suggest that the following appreciate real exchange rate:
 fiscal deficits; domestic credit growth; total domestic absorption-GDP
 ratio; public consumption-GDP ratio; private consumption-GDP ratio; terms
 of trade improvement arising from falling import prices (but not rising
 export prices); per capita income; and black market exchange rate premium.
 On the other hand, devaluation; investment-GDP ratio; consumer-wholesale
 price ratio in trading-partner countries; and economic boom or growth in
 industrial countries are found to depreciate real exchange rate. 
Journal: The Journal of International Trade & Economic Development 
Pages: 63-82 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Real exchange rate determinants, African countries, 
X-DOI: 10.1080/09638199700000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000005 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ajitava Raychaudhuri 
Author-X-Name-First: Ajitava 
Author-X-Name-Last: Raychaudhuri 
Author-Name: Sandip Chatterjee 
Author-X-Name-First: Sandip 
Author-X-Name-Last: Chatterjee 
Title: Development and welfare in the presence of an urban informal sector: a three-sector general equilibrium approach 
Abstract:
  Existing theoretical models on the urban informal sector (UIS) are
 extensions of the Harris-Todaro (H-T) framework of rural-urban migration.
 Thus the models are partial equilibrium in nature stressing the
 supply-side adjustments; and policy ranking is guided by an SWF which is
 solely based on greater resource utilization in terms of unemployment
 reduction. The present paper allows UIS development to be spontaneous,
 unlike most H-T-type models. The model also emphasizes that general
 equilibrium modelling highlights the importance of demand-side adjustments
 along with supply-side; and that policy ranking should try to admit the
 hazardous aspect of UIS which might be independent of the unemployment
 problem in the economy and as such makes the H-T-type model conclusions
 ambiguous. 
Journal: The Journal of International Trade & Economic Development 
Pages: 83-100 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Migration, informal sector, general equilibrium, 
X-DOI: 10.1080/09638199700000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000006 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mariam Khawar 
Author-X-Name-First: Mariam 
Author-X-Name-Last: Khawar 
Title: The impact of multinational corporations on a developing country: a trade off in the long run? 
Abstract:
  This paper investigates the 'long-run' effects of multinational firms on
 unemployment and welfare of the host country. Our findings indicate that a
 trade off between unemployment reduction and national welfare exists for
 the host country which is contrary to the view that foreign investment via
 multinational firms is immiserizing in the 'short run'. This may also help
 explain the continuing efforts on the part of LDC governments to attract
 foreign investment. Furthermore, in the absence of a subsidy, increased
 investment by multinational firms does not have any adverse effect on the
 welfare of the host country, while still reducing unemployment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 101-112 
Issue: 1 
Volume: 6 
Year: 1997 
Keywords: Foreign direct investment, developing countries economic welfare, 
X-DOI: 10.1080/09638199700000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000007 
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Template-Type: ReDIF-Article 1.0
Author-Name: Basant Kapur 
Author-X-Name-First: Basant 
Author-X-Name-Last: Kapur 
Title: Book Reviews 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 113-116 
Issue: 1 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638199700000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000008 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kaushik Basu 
Author-X-Name-First: Kaushik 
Author-X-Name-Last: Basu 
Author-Name: Prasanta Pattanaik 
Author-X-Name-First: Prasanta 
Author-X-Name-Last: Pattanaik 
Title: India's economy and the reforms of the 1990s: genesis and prospect 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 123-133 
Issue: 2 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638199700000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000010 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nirupam Bajpai 
Author-X-Name-First: Nirupam 
Author-X-Name-Last: Bajpai 
Author-Name: Jeffrey Sachs 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Sachs 
Title: India's economic reforms: some lessons from East Asia 
Abstract:
  In this paper we suggest further steps that India needs to take in the
 process of her economic reforms. While the reform measures undertaken
 during 1991-96 have led to considerable deregulation and liberalization of
 the Indian economy, a lot still remains on India's unfinished reform
 agenda. The experience of East Asian countries along with that of China is
 taken into account in suggesting relevant lessons for the future course of
 India's economic reforms. Among other things, we highlight the need for
 much greater openness of the economy, deregulation of the private sector,
 exit policy, and reform of the labour and land laws. Besides, in our view,
 the government needs to focus its attention to, and provide larger
 resources for, primary health and primary education. The main quantitative
 conclusion is that India can expect per capita economic growth of a mere
 3.5% per year under current policies, but could raise the overall per
 capita growth rate to as much as 7% per year under extensive market
 reforms that delivered a national saving rate and efficient market
 institutions similar to those of East Asia. 
Journal: The Journal of International Trade & Economic Development 
Pages: 135-164 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: India, economic reforms, East Asia, 
X-DOI: 10.1080/09638199700000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000011 
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Template-Type: ReDIF-Article 1.0
Author-Name: Prabhat Patnaik 
Author-X-Name-First: Prabhat 
Author-X-Name-Last: Patnaik 
Title: The context and consequences of economic liberalization in India 
Abstract:
  Liberalization is supposed usually to bring in large amounts of direct
 foreign investment. What has come into the Indian economy after
 liberalization however is not so much direct foreign investment as 'hot
 money' interested in speculation. This is hardly surprising: what we have
 witnessed of late is a 'globalization of finance' rather than a
 'globalization of production'. Liberalization in these circumstances
 causes economic stagnation, rather than growth, as the economy gets tied
 to the caprices of international rentiers. It also reduces domestic food
 availability in the pursuit of agri-exports. The Indian experience
 confirms this, but with one exception: an increase in the fiscal deficit
 after an initial phase of deflation (contrary to what liberalization
 entails) stimulated a brief industrial recovery, but this too has started
 petering out. 
Journal: The Journal of International Trade & Economic Development 
Pages: 165-178 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: 'hot money', food availability, poverty, 
X-DOI: 10.1080/09638199700000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000012 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nirvikar Singh 
Author-X-Name-First: Nirvikar 
Author-X-Name-Last: Singh 
Title: Governance and reform in India 
Abstract:
  This paper reviews the background, rationale and prospects for India's
 recent reforms in the structures of local government. It begins by
 commenting on some dimensions of governance, and why it is useful to focus
 on decentralization, especially in the current Indian context. Then some
 of the theoretical arguments on federalism as an important mechanism for
 decentralization, as well as India's overall situation in this dimension,
 are discussed. India's experience with federalism in general and with
 local government more particularly, is summarized. The paper focuses
 particularly on the 1992 constitutional amendments: their history,
 rationale, and outcomes to date. It also discusses what still needs
 attention, including complementary institutional reforms in the legal
 system and judiciary. 
Journal: The Journal of International Trade & Economic Development 
Pages: 179-208 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: decentralization, federalism, economic reform, local government, 
X-DOI: 10.1080/09638199700000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000013 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kirit Parikh 
Author-X-Name-First: Kirit 
Author-X-Name-Last: Parikh 
Title: The Enron story and its lessons 
Abstract:
  When economic reforms in India opened up the power sector to foreign
 private power plants, the Enron corporation of the USA was the first
 foreign firm to offer to build a power plant at Dabhol, a coastal town
 250km south of Bombay. In spite of public criticism, Maharashtra State
 Electricity Board signed a power purchase agreement. Subsequently, even
 though construction had started, a new state government first cancelled
 the deal and then renegotiated a new power purchase agreement. The paper
 tells this story, assesses the economics of the original and renegotiated
 agreements, examines various objections against the original agreement,
 speculates on the political economy of the episode and draws lessons for
 power policy as well as for the various actors involved namely, the
 central government, state electricity boards and private investors. 
Journal: The Journal of International Trade & Economic Development 
Pages: 209-230 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: Enron, Dabhol, private power, political economy, power purchase agreements, optimal load factor, power policy, 
X-DOI: 10.1080/09638199700000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000014 
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Template-Type: ReDIF-Article 1.0
Author-Name: M. Govinda Rao 
Author-X-Name-First: M. Govinda 
Author-X-Name-Last: Rao 
Title: Fiscal adjustment and the role of state governments 
Abstract:
  State governments play an important role in the provision of public
 services and in raising revenues to finance them. Therefore, to be
 successful, it is necessary to involve the state governments in the fiscal
 adjustment undertaken in India since 1991. In this paper. an attempt is
 made to identify the major shortcomings of the public finances of the
 state governments in India. This paper highlights the problem of
 escalating current expenditures, distortions and inequities in states' tax
 revenues and the inability of thestates in levying user charges at
 economic rates on many of the commercial services provided by them.
 Successful fiscal adjustment at state level calls for reforms in revenue
 and expenditure policies on the lines suggested in the paper. 
Journal: The Journal of International Trade & Economic Development 
Pages: 231-247 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: Indian fiscal reform, federalism, state finances, 
X-DOI: 10.1080/09638199700000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000015 
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Template-Type: ReDIF-Article 1.0
Author-Name: Servaas Storm 
Author-X-Name-First: Servaas 
Author-X-Name-Last: Storm 
Title: The unfinished agenda: Indian agriculture under the structural reforms 
Abstract:
  Employing a dynamic nine-sector, seven-income classes computable general
 equilibrium (CGE) model for the Indian economy (1985-90). this paper
 analyses the medium-run effects of (agricultural) trade liberalization.
 Its focus is on the effects of trade reform on farmers' incentives,
 because it is often presumed that the lack of adequate incentives
 constitutes the major constraint on private agricultural investment and
 the use of modem inputs. The simulation results suggest that, given
 empirically plausible price response elasticities, the improvement in
 farmers' incentives consequent upon trade liberalization is unlikely to
 increase agricultural productivity and real incomes in a broad-based and
 sustained manner. It is with reference to these results that major
 technological, social and structural, and organizational barriers to
 private agricultural investment are discussed and an important role is
 identified for government intervention in fostering agricultural
 development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 249-286 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: Trade policy, Indian development strategy, agricultural policy, 
X-DOI: 10.1080/09638199700000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000016 
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Template-Type: ReDIF-Article 1.0
Author-Name: Uma Karmbhampati 
Author-X-Name-First: Uma 
Author-X-Name-Last: Karmbhampati 
Author-Name: Pravin Krishna 
Author-X-Name-First: Pravin 
Author-X-Name-Last: Krishna 
Author-Name: Devashish Mitra 
Author-X-Name-First: Devashish 
Author-X-Name-Last: Mitra 
Title: The effect of trade policy reforms on labour markets: evidence from India 
Abstract:
  This paper investigates the labour market impact of the 1991 trade
 reforms in India using a detailed panel data set on firms in five
 different import competing industries. We have two main results. First, we
 find only a small and insignificant effect of the reforms on employment -
 overall and in each of the five import competing industries. Second, we
 investigate the relationship between labour demand and mark-ups and find
 that there is a significant negative relationship between mark-ups and the
 demand for labour - overall and in four of the five industries studied.
 This provides evidential support for 'pro-competitive' effects of trade
 reforms on labour markets as suggested by the theory: trade liberalization
 increases the demand elasticity perceived by firms and induces them to
 reduce mark-ups and increase their output, thus (in direct contradiction
 to the predictions of competitive models of trade) inducing an increase in
 the demand for labour which may at least partially offset the reduction in
 labour demand caused by other factors. 
Journal: The Journal of International Trade & Economic Development 
Pages: 287-297 
Issue: 2 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638199700000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000017 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:2:p:287-297




Template-Type: ReDIF-Article 1.0
Author-Name: Subir Gokarn 
Author-X-Name-First: Subir 
Author-X-Name-Last: Gokarn 
Title: Economic reforms and relative price movements in India: a 'supply shock' approach 
Abstract:
  This paper uses the 'supply shock' approach postulated by Ball and Mankiw
 to make an assessment of the reform process in India. In the presence of
 menu costs, a positively skewed distribution implies that more producers
 actually increase their prices than decrease them, leading to an increase
 in the inflation rate in the short run. This is tantamount to a negative
 supply shock. Conversely, a negatively skewed distribution indicates a
 positive supply shock. In this paper, we argue that a process of economic
 reforms has a direct short-run impact on relative prices, and can thus be
 viewed as providing a supply shock to the economy. We first statistically
 validate the supply shock argument for Indian data from 1982 to 1996. We
 then examine the behaviour of the skewness (and some other parameters) of
 the distribution of relative price changes over the four governments that
 India has had over this period. Somewhat surprisingly, we find that the
 properties of the distribution of relative price changes do not indicate
 the kind of positive supply shock that might have been expected, given the
 reforms that have been initiated. 
Journal: The Journal of International Trade & Economic Development 
Pages: 299-324 
Issue: 2 
Volume: 6 
Year: 1997 
Keywords: Indian economic reforms, relative price movements, supply shocks, 
X-DOI: 10.1080/09638199700000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000018 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:2:p:299-324




Template-Type: ReDIF-Article 1.0
Author-Name: Ragnar Torvik 
Author-X-Name-First: Ragnar 
Author-X-Name-Last: Torvik 
Title: Real exchange rate dynamics and trade liberalization: the case of multiple tariffs and unemployment 
Abstract:
  In this paper, a model to study a foreseen trade liberalization is
 developed. Compared with earlier dynamic models, the apparatus allows for
 multiple tariffs and unemployment - characteristics present in most less
 developed countries undertaking trade liberalization. Temporary tariffs on
 imported consumer and intermediate goods induce intratemporal and
 intertemporal substitution. Both types of tariffs raise the price of
 present to future consumption, but have different effects on the consumer
 price of non-traded relative to traded goods. The path of the real
 exchange rate, production, and employment in particular depend on the
 intertemporal elasticity of substitution, wage formation, and the initial
 relative size of different tariffs. 
Journal: The Journal of International Trade & Economic Development 
Pages: 329-344 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Dependent economy model, dynamics, trade liberalization, 
X-DOI: 10.1080/09638199700000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000019 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:329-344




Template-Type: ReDIF-Article 1.0
Author-Name: K. W. Liu 
Author-X-Name-First: K. W. 
Author-X-Name-Last: Liu 
Title: Multiple goods and growth 
Abstract:
  Recent analyses often use one-good models to explain why the least
 developed countries have little income growth. While a one-good model
 permits only supply side considerations, a multiple-goods framework
 enables analysing income growth differences from both the supply and the
 demand sides. Introducing asymmetry in preference and technology in a
 two-goods model proves to be promising in simultaneously explaining the
 unfavourable income growth rates for some LDCs and high growth rates for
 industrializing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 345-357 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Human capital accumulation, multiple goods, income growth rates, growth convergence, 
X-DOI: 10.1080/09638199700000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000020 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:345-357




Template-Type: ReDIF-Article 1.0
Author-Name: Taradas Bandyopadhyay 
Author-X-Name-First: Taradas 
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Tapan Biswas 
Author-X-Name-First: Tapan 
Author-X-Name-Last: Biswas 
Title: Allocation of investment in a new market economy 
Abstract:
  In a simple two-sector open economy model with non-shiftable capital,
 which is akin to the new free market economies of east European countries,
 this paper shows that, for a certain configuration of capital stocks, a
 temporary price intervention results in a better allocation of investment.
 It is also established that the level of intervention shouldbe declining
 during the period in question. 
Journal: The Journal of International Trade & Economic Development 
Pages: 359-375 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Open economy, investment allocation, non-shiftable capital, tariff, 
X-DOI: 10.1080/09638199700000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000021 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:359-375




Template-Type: ReDIF-Article 1.0
Author-Name: &#xd8;ystein Th&#xf8;gersen 
Author-X-Name-First: &#xd8;ystein 
Author-X-Name-Last: Th&#xf8;gersen 
Title: Government resource revenues, fiscal policy and precautionary saving 
Abstract:
  This paper explains counterintuitive effects of a tax cut on current
 consumption in a small open economy where the government is endowed with
 an uncertain resource wealth. Depending on fiscal policy and the
 extraction path of the resource, different generations face different
 risks regarding their tax burden, and this affects private saving. The
 effect of a one-period tax cut followed by tax increases in order to
 stabilize the expected government wealth depends on whether the tax cut is
 financed by intensified resource extraction. This triggers increased
 precautionary saving which may offset the wealth effect of the tax policy
 on the consumption of present generations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 377-391 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Fiscal policy, precautionary saving, resource price uncertainty, 
X-DOI: 10.1080/09638199700000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000022 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:377-391




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marie Grether 
Author-X-Name-First: Jean-Marie 
Author-X-Name-Last: Grether 
Title: Estimating the pro-competitive gains from trade liberalization: an application to Mexican manufacturing 
Abstract:
  An original two-stage method is proposed to estimate the pro-competitive
 gains from trade liberalization. In a first step, I estimate the
 sensitivity of the price-cost margins of domestic firms to changes in the
 effective rate of protection, on the basis of a structure-performance
 relationship. This parameter is later exploited in a second step, where
 the cost of protection is calculated on the basis of a simple partial
 equilibrium model where domestic and foreign goods are imperfect
 substitutes. Applied to the Mexican case, this estimation reveals that
 protection removal depresses margins significantly and suggests that
 important additional gains can be expected from pro-competitive forces. 
Journal: The Journal of International Trade & Economic Development 
Pages: 393-417 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Trade liberalization, pro-competitive gains, 
X-DOI: 10.1080/09638199700000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000023 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Pastine 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Pastine 
Author-Name: Tuvana Pastine 
Author-X-Name-First: Tuvana 
Author-X-Name-Last: Pastine 
Title: Migration, intermediate inputs and real wages 
Abstract:
  To examine the effects of immigration on real wages it is important to
 focus on the interaction between the labour and intermediate input
 markets. Immigration can lead to more extensive exploitation of external
 and internal efficiencies in other input markets, resulting in higher real
 wages in the destination country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 419-425 
Issue: 3 
Volume: 6 
Year: 1997 
Keywords: Migration, wage, increasing returns to scale, 
X-DOI: 10.1080/09638199700000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000024 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:419-425




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Klug 
Author-X-Name-First: Adam 
Author-X-Name-Last: Klug 
Title: Review article Progress and paradox in international economics 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 427-434 
Issue: 3 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638199700000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199700000025 
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Handle: RePEc:taf:jitecd:v:6:y:1997:i:3:p:427-434




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Waincymer 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Waincymer 
Title: International economic law and .the interface between trade and environmental regulation 
Abstract:
  This paper provides an international economic lawyer's perspective of the
 issues economists need to consider in analysing the trade-environment
 interface. Despite their historical polarity, proponents of both trade and
 environment regulation, principally seek to reduce negative externalities
 that are caused by trade under certain conditions. Therefore the real
 issue is the form and level of intervention. The paper further argues that
 effective economic policy must take into account the impact of problems in
 enforcement and justiciability. The WTO's potential as a forum for the
 development of comprehensive environmental agreements is examined and
 ultimately rejected. Non-discrimination, necessity and national treatment
 are forwarded as essential to prevent de facto protectionism. More
 problematically, the paper discusses the conflict between prevention of
 disguised trade barriers with the need to prevent irreparable damage that
 underlies the precautionary principle. It is pointed out that the polluter
 pays principle is one fraught with problems, particularly the accurate
 determination of liability. 
Journal: The Journal of International Trade & Economic Development 
Pages: 3-38 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: International trade regulation, environmental protection, World Trade Organisation, 
X-DOI: 10.1080/09638199800000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000002 
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Template-Type: ReDIF-Article 1.0
Author-Name: Graciela Chichilnisky 
Author-X-Name-First: Graciela 
Author-X-Name-Last: Chichilnisky 
Title: The knowledge revolution 
Abstract:
  We are on the threshold of a truly revolutionary era of discovery -
 ranging from the origins of the universe to new states of matter and
 microscopic machines, from a new understanding of the oceans and of the
 biological connections across the Earth's species to the functioning of
 the human brain and the origins of consciousness. This 'golden age' of
 discovery, with frequent breakthroughs occurring virtually in every field,
 is inducing far-reaching social changes. We are undergoing a social and
 economic revolution which matches the impact of the agricultural and
 industrial revolutions. This is a 'knowledge revolution' driven by
 knowledge and by the technologies for processing and communicating it.
 Knowledge is an intangible public good. It is privately produced, and it
 is replacing land and machines as the primary factor of production
 prevailing in the agricultural and industrial revolutions. This alters the
 terms of the debate between capitalism and socialism, and leads to a
 human-centred society with different types of markets, corporate structure
 and financial structures. Property rights on knowledge are key. Human
 capital is the engine of development. Markets require more egalitarian
 distribution of wealth for efficient functioning. The golden age of
 industrial society, with its voracious and unequal use of the Earth's
 resources, is reaching its logical limits. A new pattern of economic
 growth, knowledge-intensive growth, replaces the resource-intensive
 patterns that prevailed since World War 11. This leads to a vision of
 society that is very innovative in the use of knowledge and very
 conservative in the use of the earth's resources, a new society centred on
 diversity and human capital and offering the prospect of substantial
 economic progress without damaging the ecosystems that support life on
 earth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 39-54 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: Knowledge revolution, information, property rights, market structure, human capital, 
X-DOI: 10.1080/09638199800000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000003 
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Template-Type: ReDIF-Article 1.0
Author-Name: Eric O'N. Fisher 
Author-X-Name-First: Eric O'N. 
Author-X-Name-Last: Fisher 
Author-Name: Charles van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: van Marrewijk 
Title: Pollution and economic growth 
Abstract:
  We analyse a model of overlapping generations in which clean air, a pure
 public good, is used as a private input into production. Although
 production exhibits constant returns to scale. endogenous growth can
 occur. In a laissez-faire equilibrium, firms generate rents that are the
 value of the pollution they create. These rents crowd out investment and
 slow economic growth. Such an equilibrium may not support Pareto optimal
 allocations, but a Pigouvian tax does. Hence, a pollution tax can yield a
 double dividend because it reduces pollution and increases growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 55-69 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: Environment, growth, double dividend, 
X-DOI: 10.1080/09638199800000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000004 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:1:p:55-69




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Chur Chao 
Author-X-Name-First: Chi-Chur 
Author-X-Name-Last: Chao 
Author-Name: Eden Yu 
Author-X-Name-First: Eden 
Author-X-Name-Last: Yu 
Title: Optimal pollution and foreign-investment taxes in a small open economy 
Abstract:
  This paper examines pollution and foreign-capital tax policies on the
 host country's welfare when foreign-investment tax credits are absent or
 present in the source country. In the absence of tax credits, the optimal
 policy is a pollution tax with a foreign-investment tax or subsidy. The
 presence of tax credits may, however, result in a higher investment tax
 but a lower pollution tax, leading to higher welfare but lower
 environmental quality in the host country. The source-country's tax
 credits may cause a switch in the host-country's capital subsidy to a tax,
 which may improve the environment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 71-85 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: Foreign investment, tax credits, pollution tax, 
X-DOI: 10.1080/09638199800000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000005 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Fox 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Fox 
Author-Name: Ulrich Kohli 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Kohli 
Title: GDP growth, terms-of-trade effects, and total factor productivity 
Abstract:
  The purpose of this paper is to assess the contribution of each one of
 the major factors explaining Australian nominal GDP growth: technological
 change, movements in the terms of trade, increases in the endowments of
 labour and capital, and changes in domestic output prices. We use an index
 number technique as well as an econometric approach. Moreover, we look at
 several methods to decompose total factor productivity growth into secular
 and unexpected components. All our empirical results have a tight
 theoretical foundation, being based on the GDP function approach to
 modelling the production sector of an open economy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 87-110 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: Growth, international trade, technological change, index numbers, 
X-DOI: 10.1080/09638199800000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000006 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chyau Tuan 
Author-X-Name-First: Chyau 
Author-X-Name-Last: Tuan 
Author-Name: Linda Fung-Yee Ng 
Author-X-Name-First: Linda Fung-Yee 
Author-X-Name-Last: Ng 
Title: Export trade, trade derivatives, and economic growth of Hong Kong: a new scenario 
Abstract:
  This study aims to investigate the changing nature of trade and trade
 performance in Hong Kong and the long-run relations of trade/trade
 components with output growth. The industrial structural adjustment of the
 Hong Kong economy as fostered by the evolving nature of trade is also
 discussed. Research findings showed that the evolving trade in Hong Kong
 from conventional entrepot to domestic export-led dominance and to
 re-export or outward-processing dominance has great significance on output
 growth. Export trade and output growth are related in the long run by
 trade components. Trading businesses have been enlarged towards the domain
 of manufacturing management and/or diversified 'trade derivatives'. A new
 dimension to 'trade' traditionally perceived by economists could be added
 by allowing the contributions of 'unconventional re-exports' and 'trade
 derivatives'. 
Journal: The Journal of International Trade & Economic Development 
Pages: 111-137 
Issue: 1 
Volume: 7 
Year: 1998 
Keywords: Economic restructuring, trade components, export-led growth, 
X-DOI: 10.1080/09638199800000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000007 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:1:p:111-137




Template-Type: ReDIF-Article 1.0
Author-Name: Oded Stark 
Author-X-Name-First: Oded 
Author-X-Name-Last: Stark 
Title: Book Reviews 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 139-141 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/09638199800000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000008 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:1:p:139-141




Template-Type: ReDIF-Article 1.0
Author-Name: Kala Krishna 
Author-X-Name-First: Kala 
Author-X-Name-Last: Krishna 
Title: The adding up problem: a targeting approach 
Abstract:
  This paper looks at the problem of making multiple lending decisions
 which affect the supply of the product when the consequences of these
 lending decisions are interrelated via the effect on the world price of
 the product. This is termed the 'adding up problem'. It is argued that
 thinking of this problem from the point of view of the targeting
 literature helps to clarify the nature of optimal polices. 
Journal: The Journal of International Trade & Economic Development 
Pages: 151-173 
Issue: 2 
Volume: 7 
Year: 1998 
Keywords: Adding up, targeting, optimal policies, export tax, investment, 
X-DOI: 10.1080/09638199800000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000009 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:151-173




Template-Type: ReDIF-Article 1.0
Author-Name: Mitsuyoshi Yanagihara 
Author-X-Name-First: Mitsuyoshi 
Author-X-Name-Last: Yanagihara 
Title: Public goods and the transfer paradox in an overlapping generations model 
Abstract:
  This paper, incorporating public goods into a two-country Diamond
 overlapping generations model, shows the existence of a transfer paradox.
 Governments supply public goods, in addition to imposing a tax on workers
 and issuing government bonds. In the short-run, only a weak paradox can
 occur, but in the long-run, both weak and strong paradoxes can occur.
 These paradoxical results depend on government policy concerning the level
 of supply of public goods, and on the difference in the levels of
 externality of public goods between the donor country and the recipient
 country. The transitional economy will also be discussed. 
Journal: The Journal of International Trade & Economic Development 
Pages: 175-205 
Issue: 2 
Volume: 7 
Year: 1998 
Keywords: Fiscal policy, foreign aid, public goods, macroeconomic analyses of economic development, 
X-DOI: 10.1080/09638199800000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000010 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:175-205




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Benarroch 
Author-X-Name-First: Michael 
Author-X-Name-Last: Benarroch 
Title: Technical change in a Ricardian model of North-South trade with increasing returns to scale 
Abstract:
  This paper examines the effect of a technical change on the pattern of
 North-South trade in the presence of increasing returns to scale in
 production. The model shows that if the North initially takes advantage of
 the economies of scale in advance of the South, the relative wage will be
 higher in the North, the North will specialize in goods with the highest
 economies of scale and the South in the remaining goods. A technical
 improvement in the South or a uniform technical improvement will make both
 countries better-off as long as the price of Southern goods falls.
 Likewise, a technical improvement in the North will lead to a welfare
 improvement in both countries without altering the pattern of comparative
 advantage. 
Journal: The Journal of International Trade & Economic Development 
Pages: 207-220 
Issue: 2 
Volume: 7 
Year: 1998 
Keywords: International trade, development, technical change, economies of scale, 
X-DOI: 10.1080/09638199800000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000011 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:207-220




Template-Type: ReDIF-Article 1.0
Author-Name: Marina Murat 
Author-X-Name-First: Marina 
Author-X-Name-Last: Murat 
Author-Name: Francesco Pigliaru 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Pigliaru 
Title: International trade and uneven growth: a model with intersectoral spillovers of knowledge 
Abstract:
  We analyse a world economy composed of a continuum of small countries
 producing two final goods, the learning-by-doing potentials of which
 differ significantly. In autarky, the knowledge accumulated in the
 high-learning sector spills over into the low-learning one. A steady-state
 equilibrium common to all countries exists, in which both goods are
 produced. The steady-state growth rate is higher the larger is the
 relative share of the leading sector in the economy. Trade leads to
 complete specialization. In the absence of international spillovers, the
 growth rates of the trading countries diverge according to their
 comparative advantage. Both dynamic gains and losses from trade may be
 present. Further, we explore the possibility of international transmission
 of knowledge. The latter generates convergence of long-run growth rates
 across countries, with the duration of such a convergence being a
 decreasing function of the intensity of the international spillovers. 
Journal: The Journal of International Trade & Economic Development 
Pages: 221-236 
Issue: 2 
Volume: 7 
Year: 1998 
Keywords: International trade, economic growth, industrialization, 
X-DOI: 10.1080/09638199800000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000012 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:221-236




Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNab 
Author-X-Name-First: Robert 
Author-X-Name-Last: McNab 
Author-Name: Robert Moore 
Author-X-Name-First: Robert 
Author-X-Name-Last: Moore 
Title: Trade policy, export expansion, human capital and growth 
Abstract:
  This paper empirically investigates the impact of trade policy on export
 expansion and on GDP growth in developing countries while controlling for
 the human capital stock and the initial level of development. By using a
 simultaneous system estimation we unite the approach found in the export
 expansion and growth literature with the approach found in papers that
 estimate the effect of trade policy on growth, while also making several
 improvements in the estimation of the underlying relationships. The
 results obtained from our estimation are more credible because of these
 improvements and therefore have stronger policy implications. We find that
 outward-oriented trade policies substantially and significantly impact
 growth in developing countries not only by directly enhancing exports but
 also through a feedback (or multiplier) effect. 
Journal: The Journal of International Trade & Economic Development 
Pages: 237-256 
Issue: 2 
Volume: 7 
Year: 1998 
Keywords: Economic development, economic growth, exports, international trade, trade policy, 
X-DOI: 10.1080/09638199800000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000013 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:237-256




Template-Type: ReDIF-Article 1.0
Author-Name: Elise Brezis 
Author-X-Name-First: Elise 
Author-X-Name-Last: Brezis 
Author-Name: Daniel Tsiddon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Tsiddon 
Title: Economic growth, leadership and capital flows: the leapfrogging effect 
Abstract:
  The leapfrogging effect has been analysed in a model without capital.
 However, history has shown numerous cases in which countries lost economic
 leadership at the same time as they were exporting capital. This work
 focuses on the interaction between international capital flows, economic
 growth and the transmission of leadership. We show that capital mobility
 is at the heart of the adoption of new technologies. Malfunctioning
 international capital markets that prevent capital imports may delay
 adoption of the new technology by the lagging country and may postpone or
 even prevent leapfrogging that would have occurred in the case of free
 flows of capital. The model shows that capital mobility smooths passing
 the baton in the relay race for economic leadership. 
Journal: The Journal of International Trade & Economic Development 
Pages: 261-277 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: Growth, international capital flows, leadership, leapfrogging, learning-by-doing, technological progress, 
X-DOI: 10.1080/09638199800000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000014 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:3:p:261-277




Template-Type: ReDIF-Article 1.0
Author-Name: Halvor Mehlum 
Author-X-Name-First: Halvor 
Author-X-Name-Last: Mehlum 
Title: Why gradualism? 
Abstract:
  A Ramsey model for a two-sector economy, comprising a labour intensive
 non-traded sector and a capital intensive traded sector, is used to
 analyse the transition following trade liberalization. Liberalization
 takes the form of removing a tariff wedge that benefited the non-traded
 sector. This increases overall productivity of capital in the short run,
 and demand for labour declines. In the presence of a binding minimum real
 wage this leads to transitional unemployment. In this case, gradualism -
 in the form of gradually removing the tariff wedge - can be justified.
 Through gradualism the protection for the labour intensive non-traded
 sector is prolonged, leading to reduced unemployment in the transition
 phase. 
Journal: The Journal of International Trade & Economic Development 
Pages: 279-297 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: Development economics, economic reform, gradualism, two-sector economy, transition, unemployment, 
X-DOI: 10.1080/09638199800000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000015 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:3:p:279-297




Template-Type: ReDIF-Article 1.0
Author-Name: Hing-Man Leung 
Author-X-Name-First: Hing-Man 
Author-X-Name-Last: Leung 
Title: On wage-inequalities in the North and in the South 
Abstract:
  Northern, developed, skilled-labour rich countries have, in recent years,
 faced increasing competition from Southern, developing, unskilled-labour
 rich countries. Many have blamed the South for aggravating the
 wage-inequality in the North. We build a hybrid model with Heckscher-Ohlin
 and Ricardian characteristics to tackle this issue. Relative demand for
 the skilled-labour-intensive good (e.g. cars, computers and computer
 software) plays a bigger role here than elsewhere in the literature. We
 find the usual H-O mechanism leads to relative wage convergence,
 divergence or reversal depending on the relative strength of relative
 demand, technology and endowment effects. More provocative results arise
 from innovation/imitation considerations: Northern innovation aggravates
 Northern wage-inequality but alleviates Southern wage-inequality; Southern
 imitation alleviates Northern wage-inequality but aggravates Southern
 wage-inequality. 
Journal: The Journal of International Trade & Economic Development 
Pages: 299-315 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: North-South trade, wage-inequality, H-O endowments, Ricardian technology, innovation and imitation, 
X-DOI: 10.1080/09638199800000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000016 
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Handle: RePEc:taf:jitecd:v:7:y:1998:i:3:p:299-315




Template-Type: ReDIF-Article 1.0
Author-Name: Bharati Basu 
Author-X-Name-First: Bharati 
Author-X-Name-Last: Basu 
Title: Efficiency wages, unemployment and international factor movements 
Abstract:
  This paper examines the implications of unemployment resulting from
 efficiency wages for international factor movements in a standard
 Heckscher-Ohlin model where the relative size of the endowments of skilled
 and unskilled workers and the efficiency wage induced unemployment level
 in the unskilled labour market are simultaneously determined given the
 population, supply of capital and its distribution in the economy. Capital
 in the economy is used only to train individuals for the skilled labour
 market, where workers are fully employed. It is shown that the optimum
 labour inflow in the market with domestic distortion and the optimum
 capital inflow are always positive because they reduce the severity of
 distortion by raising employment and income for the residents. The income
 and employment of foreigners also increase. Under this situation the
 optimum labour or capital outflow on the other hand is always zero. These
 conclusions directly contradict the result obtained for international
 factor movements in the presence of exogenously determined unemployment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 317-338 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: Efficiency wages, international migration, 
X-DOI: 10.1080/09638199800000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000017 
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Template-Type: ReDIF-Article 1.0
Author-Name: Andy Kwan 
Author-X-Name-First: Andy 
Author-X-Name-Last: Kwan 
Author-Name: Yangru Wu 
Author-X-Name-First: Yangru 
Author-X-Name-Last: Wu 
Author-Name: Junxi Zhang 
Author-X-Name-First: Junxi 
Author-X-Name-Last: Zhang 
Title: An exogeneity analysis of financial deepening and economic growth: evidence from Hong Kong, South Korea and Taiwan 
Abstract:
  This paper presents exogeneity tests for the existence (or absence) of a
 behavioural relationship between financial deepening and economic growth
 for three high performing economies: Hong Kong, South Korea and Taiwan.
 The findings suggest that weak, strong and super exogeneity assumptions
 are valid, and the variable of financial deepening has a positive
 influence on output growth. Since the successful stories of these high
 performing economies have been examples for other developing countries, we
 argue that a sound financial system is essential in the course of economic
 development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 339-354 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: Exogeneity, financial deepening, economic growth, 
X-DOI: 10.1080/09638199800000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000018 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jackline Wahba 
Author-X-Name-First: Jackline 
Author-X-Name-Last: Wahba 
Title: The transmission of Dutch disease and labour migration 
Abstract:
  This paper examines the effects of the oil-boom in the Gulf states in the
 framework of a Dutch disease model. The model indicates that labour
 immigration may offset the effects of Dutch disease in the Gulf states.
 However, this may effectively shift the symptoms of Dutch disease to
 labour-exporting countries. Consequently, the theoretical model shows that
 through labour migration, Dutch disease can be transmitted to sending
 countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 355-365 
Issue: 3 
Volume: 7 
Year: 1998 
Keywords: Labour migration, Dutch disease, remittances, developing countries and Gulf countries, 
X-DOI: 10.1080/09638199800000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000019 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nord&#xe5;s 
Author-X-Name-First: Hildegunn Kyvik 
Author-X-Name-Last: Nord&#xe5;s 
Title: Terms of trade and economic growth in a world of constrained capital mobility 
Abstract:
  This paper focuses on the interaction between world commodity and capital
 markets within the framework of an extended neoclassical growth model. The
 model incorporates raw materials as an essential input and captures the
 observed, but hitherto unexplained impact of terms of trade on economic
 growth. It is shown that in a world of declining real prices of industrial
 raw materials, the steady state growth rate is an increasing function of
 the input ratio of raw materials/unskilled labour. When international
 capital flows are constrained, the speed of convergence is determined by
 the same variables. 
Journal: The Journal of International Trade & Economic Development 
Pages: 373-387 
Issue: 4 
Volume: 7 
Year: 1998 
Keywords: Economic growth, capital mobility, natural resources, 
X-DOI: 10.1080/09638199800000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000021 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sudipa Majumdar 
Author-X-Name-First: Sudipa 
Author-X-Name-Last: Majumdar 
Author-Name: Bibhas Saha 
Author-X-Name-First: Bibhas 
Author-X-Name-Last: Saha 
Title: Job security, wage bargaining and duopoly outcomes 
Abstract:
  This paper develops a model where labour supply is constrained because
 training new workers is costly and redundant workers cannot be fired. An
 entrant draws labour from an incumbent firm through a wage contest while
 wages in the latter are bargained with its unionized workers. In a Cournot
 equilibrium, the union's bargaining power has a positive effect on the
 incumbent's output, but a negative effect on the industry output. Social
 welfare under duopoly may fall short of the monopoly level. The
 distribution of bargaining gains within the incumbent firm is sensitive to
 whether wage and output choices are made sequentially or simultaneously. 
Journal: The Journal of International Trade & Economic Development 
Pages: 389-403 
Issue: 4 
Volume: 7 
Year: 1998 
Keywords: Job security, bargaining, wage contest, liberalization, 
X-DOI: 10.1080/09638199800000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000022 
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Jacobsen 
Author-X-Name-First: Peter 
Author-X-Name-Last: Jacobsen 
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Title: Income distribution in the United States: Kuznets' inverted-U hypothesis and data non-stationarity 
Abstract:
  The hypothesis that income distribution follows an inverted-U pattern
 with respect to economic growth has been tested against US time-series
 data by several authors, and rejected. We reconsider this issue, paying
 special attention to data non-stationarity, and the use of 'unbalanced'
 Seemingly Unrelated Regressions estimation. We also reject the hypothesis,
 but find that minimum income inequality occurred at different times for
 different ethnic groups, and at later dates than suggested by previous
 studies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 405-423 
Issue: 4 
Volume: 7 
Year: 1998 
Keywords: Income distribution, Gini coefficient, inverted U, time-series data, 
X-DOI: 10.1080/09638199800000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000023 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Reinert 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Reinert 
Title: Rural non-farm development: a trade-theoretic view 
Abstract:
  A key component of rural development is the growth of production linkages
 between the farm and non-farm sectors. The growth of these linkages
 contributes to the development of agricultural clusters and to the
 increased articulation of the rural economy. This articulation process is
 modelled using a specific factors model with differentiated intermediate
 inputs or producer services produced under monopolistic competition. The
 implications of labour force growth, agricultural pricing policy, and
 import substitution industrialization policy on rural non-farm development
 are explored. The results suggest that agricultural clusters and the
 (dis)articulation of the farm and non-farm sectors are important aspects
 of rural development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 425-437 
Issue: 4 
Volume: 7 
Year: 1998 
Keywords: Rural development, agricultural development, international trade, 
X-DOI: 10.1080/09638199800000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000024 
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Template-Type: ReDIF-Article 1.0
Author-Name: Krishnendu Ghosh Dastidar 
Author-X-Name-First: Krishnendu Ghosh 
Author-X-Name-Last: Dastidar 
Title: Reciprocal dumping and trade policy 
Abstract:
  This paper examines some aspects of trade intervention in a 'reciprocal
 dumping' framework of international trade. It is shown, in the presence of
 increasing returns to scale, that certain conventional wisdom regarding
 the effect of trade policies need not hold true. 
Journal: The Journal of International Trade & Economic Development 
Pages: 439-449 
Issue: 4 
Volume: 7 
Year: 1998 
Keywords: Reciprocal dumping, increasing returns, tariffs and subsidies, 
X-DOI: 10.1080/09638199800000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000025 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Ruffle 
Author-X-Name-First: Bradley 
Author-X-Name-Last: Ruffle 
Title: Book Reviews 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 451-453 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/09638199800000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000026 
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Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Morrissey 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Morrissey 
Author-Name: David Greenaway 
Author-X-Name-First: David 
Author-X-Name-Last: Greenaway 
Title: Introduction 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 1-2 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/09638199900000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000001 
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Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Nelson 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Nelson 
Title: The political economy of trade policy reform: social complexity and methodological pluralism 
Abstract:
  This paper provides a critical review of current research on formal
 modelling of the political economy of policy reform. It ultimately argues
 that, due to the complexity of policy reform situations, at least as
 currently constructed, these models do not possess sufficient systematic
 content to form the basis of empirical research or policy advice. 
Journal: The Journal of International Trade & Economic Development 
Pages: 3-26 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Political economy, policy reform, complexity, 
X-DOI: 10.1080/09638199900000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000002 
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Template-Type: ReDIF-Article 1.0
Author-Name: V. N. Balasubramanyam 
Author-X-Name-First: V. N. 
Author-X-Name-Last: Balasubramanyam 
Author-Name: M. Salisu 
Author-X-Name-First: M. 
Author-X-Name-Last: Salisu 
Author-Name: David Sapsford 
Author-X-Name-First: David 
Author-X-Name-Last: Sapsford 
Title: Foreign direct investment as an engine of growth 
Abstract:
  This paper presents, within a new growth theory framework, an analysis of
 the role of Foreign Direct Investment (FDI) in promoting economic growth.
 Evidence reported suggests that an important role is exerted by both the
 size of the domestic market and the competitive climate in relation to
 local producers. In addition, evidence is reported to indicate that
 interactions between FDI and human capital exert an especially important
 influence upon growth performance. 
Journal: The Journal of International Trade & Economic Development 
Pages: 27-40 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Foreign Direct Investment, economic growth, human capital real wages, 
X-DOI: 10.1080/09638199900000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000003 
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Template-Type: ReDIF-Article 1.0
Author-Name: David Greenaway 
Author-X-Name-First: David 
Author-X-Name-Last: Greenaway 
Author-Name: Wyn Morgan 
Author-X-Name-First: Wyn 
Author-X-Name-Last: Morgan 
Author-Name: Peter Wright 
Author-X-Name-First: Peter 
Author-X-Name-Last: Wright 
Title: Exports, export composition and growth 
Abstract:
  The relationship between trade and growth has been central to development
 economics with particular emphasis on the export-growth dynamic. The
 current paper is in the tradition of this literature but develops two new
 strands. First, it examines the exports-growth link in a dynamic fashion,
 providing a more rigorous approach than has been attempted previously.
 Second it explores the role of export composition in determining growth
 performance. By constructing a panel of 69 countries and using the dynamic
 model, the results generated suggest that there is a strong positive
 relationship between exports and growth. Further, it is apparent that the
 composition of those exports is important in determining the strength of
 growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 41-51 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Exports, growth, panel econometrics, 
X-DOI: 10.1080/09638199900000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000004 
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Template-Type: ReDIF-Article 1.0
Author-Name: Arne Bigsten 
Author-X-Name-First: Arne 
Author-X-Name-Last: Bigsten 
Author-Name: Paul Collier 
Author-X-Name-First: Paul 
Author-X-Name-Last: Collier 
Author-Name: Stefan Dercon 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Dercon 
Author-Name: Marcel Fafcharnps 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Fafcharnps 
Author-Name: Bernard Gauthier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Gauthier 
Author-Name: Jan Willern Gunning 
Author-X-Name-First: Jan Willern 
Author-X-Name-Last: Gunning 
Author-Name: Jean Habarurema 
Author-X-Name-First: Jean 
Author-X-Name-Last: Habarurema 
Author-Name: Anders Isaksson 
Author-X-Name-First: Anders 
Author-X-Name-Last: Isaksson 
Author-Name: Abena Oduro 
Author-X-Name-First: Abena 
Author-X-Name-Last: Oduro 
Author-Name: Remco Oostendorp 
Author-X-Name-First: Remco 
Author-X-Name-Last: Oostendorp 
Author-Name: Cathy Pattillo 
Author-X-Name-First: Cathy 
Author-X-Name-Last: Pattillo 
Author-Name: Mans Soderborn 
Author-X-Name-First: Mans 
Author-X-Name-Last: Soderborn 
Author-Name: Francis Teal 
Author-X-Name-First: Francis 
Author-X-Name-Last: Teal 
Author-Name: Albert Zeufack 
Author-X-Name-First: Albert 
Author-X-Name-Last: Zeufack 
Title: Exports of African manufactures: macro policy and firm behaviour 
Abstract:
  Macro policy has changed the real exchange rates for African countries
 dramatically in the 1990s. In this paper the possible impact of
 macroeconomic policy on firms in the manufacturing sector is considered
 based on a panel survey of such firms in Cameroon. Kenya, Ghana and
 Zimbabwe. The data show that most large African manufacturing firms do
 export, but most do not specialize in exporting. An export equation is
 estimated both for the propensity of the firms to export and the
 percentage of output exported. It is shown that a stable export function
 can be estimated for all four countries over the three rounds of the
 survey. While there is no evidence that real devaluations have effected a
 general rise in manufactured exports there is evidence from the surveys of
 a rise in the percentage of output exported from the Cameroon. Reasons for
 the lack of a general response to macro policy are suggested. In the
 Cameroon, large firms did increase their propensity to export.
 Understanding the links between macro policy and firm performance may
 require an understanding of how such policies impact on different types of
 firms. 
Journal: The Journal of International Trade & Economic Development 
Pages: 53-71 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Export performance, export incentives, African manufacturing, 
X-DOI: 10.1080/09638199900000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000005 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sam Laird 
Author-X-Name-First: Sam 
Author-X-Name-Last: Laird 
Title: Export policy and the WTO 
Abstract:
  The WTO has increased international disciplines and sends more consistent
 signals than the GATT on export policy. Although there is still scope for
 the use of subsidies, various other measures may be useful as a
 transitional device towards more outward oriented policies and it is also
 important to eliminate internal constraints to export. Even where
 permitted measures are used to stimulate exports, they may still be
 vulnerable to counter measures, such as anti-dumping duties, in foreign
 markets. Domestic programmes can be complemented by continued efforts to
 open markets in trade negotiations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 73-88 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Dumping, export policy, GATT, subsidies, WTO, 
X-DOI: 10.1080/09638199900000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000006 
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael Bleaney 
Author-X-Name-First: Michael 
Author-X-Name-Last: Bleaney 
Title: Trade reform, macroeconomic performance and export growth in ten Latin American countries, 1979-95 
Abstract:
  The impact of trade reforms on economic performance in ten Latin American
 countries is examined using a panel data set of 17 annual observations.
 Each country is classified as 'reformed' or 'unreformed' in a given year,
 and the model tests whether reform improves performance across various
 dimensions. Both manufactured and total exports display greater real
 exchange rate and income elasticity after reform, but the effects have
 been offset by real exchange rate appreciation. Key 'real' variables such
 as GDP growth and investment ratios appear not to have improved. 
Journal: The Journal of International Trade & Economic Development 
Pages: 89-105 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Policy reform, exports, manufactures, 
X-DOI: 10.1080/09638199900000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000007 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:1:p:89-105




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew McKay 
Author-X-Name-First: Andrew 
Author-X-Name-Last: McKay 
Author-Name: Oliver Morrissey 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Morrissey 
Author-Name: Charlotte Vaillant 
Author-X-Name-First: Charlotte 
Author-X-Name-Last: Vaillant 
Title: Aggregate supply response in Tanzanian agriculture 
Abstract:
  Tanzania is among the many African countries that have engaged in
 agricultural liberalization since the mid-1980s. in the hope that reforms
 that introduce price incentives and efficient marketing will encourage
 producers to respond. This paper assesses that claim by examining the
 supply response of agricultural output in Tanzania. Our estimates suggest
 that aggregate agricultural supply response is quite high so that the
 potential for agricultural sector response to liberalization of
 agricultural prices and marketing may be quite significant. The long-run
 elasticity of aggregate food crop output to relative prices was almost
 unity. Short-run supply responses were estimated at about 0.35 for
 aggregate food crops and for all (food and export) crops. Liberalization
 of agricultural markets, where it increases the effective prices paid to
 farmers, can be effective in promoting production, although complementary
 interventions, to improve infrastructure, marketing, access to inputs and
 credit, improved production technology etc, are probably necessary. 
Journal: The Journal of International Trade & Economic Development 
Pages: 107-123 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Agricultural supply response, Tanzania, 
X-DOI: 10.1080/09638199900000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000008 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:1:p:107-123




Template-Type: ReDIF-Article 1.0
Author-Name: T. A. Lloyd 
Author-X-Name-First: T. A. 
Author-X-Name-Last: Lloyd 
Author-Name: C. W. Morgan 
Author-X-Name-First: C. W. 
Author-X-Name-Last: Morgan 
Author-Name: A. J. Rayner 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Rayner 
Author-Name: C. Vaillant 
Author-X-Name-First: C. 
Author-X-Name-Last: Vaillant 
Title: The transmission of world agricultural prices in Cote d'Ivoire 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 125-141 
Issue: 1 
Volume: 8 
Year: 1999 
Keywords: Price transmission, primary commodities, marketing boards, price stabilization, cointegration, 
X-DOI: 10.1080/09638199900000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000009 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:1:p:125-141




Template-Type: ReDIF-Article 1.0
Author-Name: Aiting Goh 
Author-X-Name-First: Aiting 
Author-X-Name-Last: Goh 
Title: Trade, employment and fertility transition 
Abstract:
  This paper investigates the link between trade and fertility in
 developing countries. Household fertility is determined by the time cost
 of children. Women working in the manufacturing sector face a higher time
 cost, and hence desire fewer children than women working in the
 agricultural sector. If the developing country has a comparative advantage
 in labour-intensive manufactures, then trade raises the demand for female
 labour in the manufacturing sector, thus lowering fertility. 
Journal: The Journal of International Trade & Economic Development 
Pages: 143-184 
Issue: 2 
Volume: 8 
Year: 1999 
Keywords: Trade, fertility, employment, labour intensive exports, capital accumulation, agricultural productivity, 
X-DOI: 10.1080/09638199900000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000010 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:2:p:143-184




Template-Type: ReDIF-Article 1.0
Author-Name: Devashish Mitra 
Author-X-Name-First: Devashish 
Author-X-Name-Last: Mitra 
Title: History, coordination and optimality: some policy lessons 
Abstract:
  Within a two-sector dynamic framework with external economies in one
 sector (which give rise to the possibility of multiple equilibria) and
 convex adjustment costs, this paper provides a welfare ranlung of
 movements towards the two stable equilibria, solves for the optimal speed
 of industrialization and derives the shape of the social planner's optimal
 resource allocation path. These results show that one should be cautious
 in drawing policy implications from static models of coordination
 failures. Moreover, this paper also argues that a reduction in adjustment
 costs (e.g. through the provision of public education facilities) is an
 essential precondition for industrialization when the existing industrial
 base is thin. 
Journal: The Journal of International Trade & Economic Development 
Pages: 185-193 
Issue: 2 
Volume: 8 
Year: 1999 
Keywords: Coordination failures, government policy, industrialization, 
X-DOI: 10.1080/09638199900000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000011 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:2:p:185-193




Template-Type: ReDIF-Article 1.0
Author-Name: Tarun Kabiraj 
Author-X-Name-First: Tarun 
Author-X-Name-Last: Kabiraj 
Author-Name: Manas Chaudhuri 
Author-X-Name-First: Manas 
Author-X-Name-Last: Chaudhuri 
Title: On the welfare analysis of a cross-border merger 
Abstract:
  We provide a comparative welfare analysis of domestic and cross-national
 mergers. We focus, in particular, on the importance of possible synergies
 in mergers, the existing market structure and the bargaining power of the
 merging firms (in the case of a cross-border merger). 
Journal: The Journal of International Trade & Economic Development 
Pages: 195-207 
Issue: 2 
Volume: 8 
Year: 1999 
Keywords: Cross-border mergers, inside-border mergers, social welfare, synergy, bargaining power, 
X-DOI: 10.1080/09638199900000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000012 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:2:p:195-207




Template-Type: ReDIF-Article 1.0
Author-Name: Teame Ghirmay 
Author-X-Name-First: Teame 
Author-X-Name-Last: Ghirmay 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Title: Export instability, income terms of trade instability and growth: causal analyses 
Abstract:
  This paper seeks to examine the causal relationship between export
 instability. income terms of trade instability, investment and economic
 growth by using the cointegration analysis and the multivariate error
 correction model. In addition, reverse causality is also tested by
 examining whether output and investment cause export instability and
 income terms of trade instability. The data utilized are drawn from a
 sample of 14 developing nations. The cointegration results indicate that
 export and income terms of trade instability have long-run relationships
 with output. For most countries, instability in the income terms of trade
 is negatively related to output while the results for export instability
 are mixed. With respect to causality, it seems that export instability and
 income terms of trade instability play a causal role in the development
 process via a variety of avenues. 
Journal: The Journal of International Trade & Economic Development 
Pages: 209-229 
Issue: 2 
Volume: 8 
Year: 1999 
Keywords: Export instability, income terms of trade, economic development, vector error correction model, cointegration, 
X-DOI: 10.1080/09638199900000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000013 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hillel Rapoport 
Author-X-Name-First: Hillel 
Author-X-Name-Last: Rapoport 
Title: Economic integration, industrial policy and institutional design in the developing world 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 231-240 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/09638199900000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000014 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:2:p:231-240




Template-Type: ReDIF-Article 1.0
Author-Name: Ngo Van Long 
Author-X-Name-First: Ngo 
Author-X-Name-Last: Van Long 
Author-Name: Antoine Soubeyran 
Author-X-Name-First: Antoine 
Author-X-Name-Last: Soubeyran 
Title: Industry concentration and optimal discriminatory commercial policies 
Abstract:
  We derive the characteristics of firm-specific strategic trade policies
 when industries consist of heterogenous firms, and show how the
 informational requirements for policy design are thereby expanded. A
 knowledge of the Herfindahl index of concentration of the foreign industry
 is required for the design of optimal protection for domestic firms. It is
 shown that optimal firm-specific tariffs reduce the degree of foreign
 concentration, thus shifting rents to domestic firms. 
Journal: The Journal of International Trade & Economic Development 
Pages: 241-256 
Issue: 3 
Volume: 8 
Year: 1999 
Keywords: Strategic trade policies, Herfindahl index, heterogeneous firms, 
X-DOI: 10.1080/09638199900000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000015 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:3:p:241-256




Template-Type: ReDIF-Article 1.0
Author-Name: Marcle Fafchamps 
Author-X-Name-First: Marcle 
Author-X-Name-Last: Fafchamps 
Title: Risk sharing and quasi-credit 
Abstract:
  Recent empirical evidence indicates that rural households in the Third
 World smooth consumption through reciprocal gifts and informal credit but
 fail to achieve Pareto efficiency in risk sharing. Extending previous
 models of informal contracts as repeated games, this paper shows that
 several often-described features of informal risk sharing arrangements can
 be understood as limitations imposed by their self-enforcing nature. We
 argue that informal credit between friends and relatives is a hybrid
 transaction, halfway between market exchange and gift giving, whose
 purpose is to overcome enforcement problems present in pure income pooling
 arrangements. 
Journal: The Journal of International Trade & Economic Development 
Pages: 257-278 
Issue: 3 
Volume: 8 
Year: 1999 
Keywords: 01, D1, 
X-DOI: 10.1080/09638199900000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000016 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:3:p:257-278




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Fausti 
Author-X-Name-First: Scott 
Author-X-Name-Last: Fausti 
Title: Production uncertainty, enforcement, and smuggling: a stochastic model 
Abstract:
  A stochastic, joint-product model of smuggling is developed, merging the
 existing smuggling literature with the literature on competitive firm
 behaviour under uncertainty. The equilibrium and comparative static
 results of the model reconcile contradictory results found in the earlier
 literature concerning how risk and risk preference affect smuggling
 behaviour. The introduction of stochastic risk demon-strates that the
 models developed in the earlier smuggling-risk literature overstated
 (understated) the positive (negative) economic consequences associated
 with the introduction of smuggling. The analysis reveals that smuggling
 activity is not dependent on firm risk preference. However. risk
 preference does affect the amount of trade the smuggling firm will engage
 in. Government enforcement and tax policy are analysed. Increasing
 enforcement efforts against smuggling will reduce illegal activity.
 However, the affect on legal trade is shown to be dependent on whether the
 firm considers smuggling and legal trade to be complementary or substitute
 activities. It is demonstrated that the effect of a change in the tax rate
 on illegal trade is also dependent on whether the firm considers smuggling
 and legal trade to be complementary or sub-stitute activities. 
Journal: The Journal of International Trade & Economic Development 
Pages: 279-308 
Issue: 3 
Volume: 8 
Year: 1999 
Keywords: Smuggling, uncertainty, stochastic disturbance, joint-product, 
X-DOI: 10.1080/09638199900000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000017 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:3:p:279-308




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Arndt 
Author-X-Name-First: Sven 
Author-X-Name-Last: Arndt 
Title: Globalization and economic development 
Abstract:
  A feature of the continuing integration of the world economy is the
 globalization of production and the consequent rise of trade in parts and
 components. Products are more internationalized and less identified with
 any particular country. Non-trivial shares of the value-added of many
 exports consist of imports and vice versa. Extension of the international
 division of labour beyond finished products offers developing countries a
 broader range of choices for industrialization. This paper explores the
 implications of these developments in the context of a standard trade
 model. Component specialization in a developing country's import sector is
 shown to be superior in overall welfare terms to specialization in the
 integrated product. Output and employment are higher in the sector, but
 the wage-rental ratio is lower. 
Journal: The Journal of International Trade & Economic Development 
Pages: 309-318 
Issue: 3 
Volume: 8 
Year: 1999 
Keywords: Trade, division of labour, intermediate products, fragmentation, intra-product specialization, 
X-DOI: 10.1080/09638199900000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000018 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:3:p:309-318




Template-Type: ReDIF-Article 1.0
Author-Name: Pasquale Sgro 
Author-X-Name-First: Pasquale 
Author-X-Name-Last: Sgro 
Title: Book Reviews 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 319-320 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/09638199900000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000019 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:3:p:319-320




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Bianconi 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Bianconi 
Title: A dynamic monetary model with costly foreign currency 
Abstract:
  I present a dynamic general equilibrium monetary model with domestic and
 foreign currencies and a traded bond where there is an adjustment cost to
 switch into foreign currency. The focus is on the short versus long run
 trade-offs and transitional dynamics of domestic and foreign monetary
 disturbances as a function of attributes of currencies in utility. The
 main finding is that short and long run trade-offs and transitional
 dynamics together with the implied hysteresis property of the equilibrium
 are critical determinants of the qualitative results of domestic and
 foreign monetary disturbances in this class of model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 321-342 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Monetary policy, foreign inflation, hysteresis, adjustment cost, currency substitution, 
X-DOI: 10.1080/09638199900000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000020 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:321-342




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Comolli 
Author-X-Name-First: Paul 
Author-X-Name-Last: Comolli 
Title: On the gains from an expansion in factor mobility in bilateral trade 
Abstract:
  A single composite-good two-factor input production model is employed to
 investigate the gains from an expansion in factor mobility between two
 countries with different neoclassical technologies. Necessary and
 sufficient conditions for both countries to gain from an expansion in
 factor mobility are established. The analysis then develops a criterion
 based on market information for predicting whether a country would gain
 from an expansion in factor mobility. Finally, the income distributional
 effects within and between countries of an expansion in factor mobility
 are discussed. 
Journal: The Journal of International Trade & Economic Development 
Pages: 343-358 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Factor mobility, gains from trade, pattern of trade, Ramaswami effect, 
X-DOI: 10.1080/09638199900000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000021 
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Template-Type: ReDIF-Article 1.0
Author-Name: Shigemi Yabuuchi 
Author-X-Name-First: Shigemi 
Author-X-Name-Last: Yabuuchi 
Title: Foreign direct investment, urban unemployment and welfare 
Abstract:
  The effects of foreign direct investments on welfare and unemployment are
 examined in the case where there is urban unemployment. Our main findings
 are that an increase in foreign capital investment leaves social welfare
 intact and reduces unemployment if foreign capital is specific to foreign
 firms, and it may increase social welfare and reduce unemployment if
 foreign capital is also used in the domestic manufacturing sector. Thus,
 our analysis is consistent with many empirical evidences that emerging
 economies employ export processing zones or duty free zones intensively as
 their development strategies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 359-371 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Foreign direct investment, urban unemployment, export processing zone, development strategies, 
X-DOI: 10.1080/09638199900000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000022 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:359-371




Template-Type: ReDIF-Article 1.0
Author-Name: Lucia Tajoli 
Author-X-Name-First: Lucia 
Author-X-Name-Last: Tajoli 
Title: The impact of tied aid on trade flows between donor and recipient countries 
Abstract:
  This paper aims to contribute to the current debate on aid effectiveness
 and suitability by examining a specific aspect of the problem: the
 theoretical and empirical relationship between tied aid and trade flows.
 In the first part, we evaluate the theoretical implications of the use of
 tied aid as a hidden trade policy. The possibility that aid flows directly
 benefit the donor country (especially its exporters) can make aid more
 viable from the domestic point of view, but since it also might affect
 foreign competitors, international conflicts can arise. These issues are
 examined in a framework adapted from the well-known strategic trade policy
 literature, showing that tied aid cannot be considered equivalent to an
 export subsidy. The second part of the paper is empirical and tests some
 propositions suggested by the theory. We estimate the impact of tied aid
 on total imports of recipient countries in order to examine whether the
 distortionary impact of tied aid overcomes the trade generating effect. We
 also look at the consequences of tied aid on the donor's market share in
 the recipient country in order to evaluate the effectiveness of this
 policy in supporting domestic exporters. The (preliminary) evidence shows
 that tied aid does not necessarily generate trade flows and that the
 donor's export shares are not correlated to the degree of tying. 
Journal: The Journal of International Trade & Economic Development 
Pages: 373-388 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Tied aid, trade, trade policy, 
X-DOI: 10.1080/09638199900000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000023 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jose M. Serrano Sanz 
Author-X-Name-First: Jose M. Serrano 
Author-X-Name-Last: Sanz 
Author-Name: Marcela Sabate 
Author-X-Name-First: Marcela 
Author-X-Name-Last: Sabate 
Author-Name: Dolores Gadea 
Author-X-Name-First: Dolores 
Author-X-Name-Last: Gadea 
Title: Economic growth and the long run balance of payments constraint in Spain 
Abstract:
  The Thirlwall's Law test has been extensively employed in order to
 explain, from the demand side, the differences in rates of economic growth
 between countries. In this paper the test is put to an alternative use,
 namely to explain the uneven economic growth experienced in one single
 country, Spain, during two different periods, 1940-59 and 1960-85.
 Specifically, we seek to determine whether the liberalization of Spanish
 trade which preceded its integration into the EEC (1960-85) - insofar as
 this liberalization increased the possibilities of placing national
 production in the foreign market-might explain the higher rate of economic
 growth enjoyed during this period, as compared with the earlier period of
 economic autarky (1940-59). To that end, we estimate the corresponding
 export and import demand functions (using the Autoregressive Distributed
 Lags methodology and the cointegration approach of Johansen) and apply the
 McCornbie test. We conclude that the Spanish balance of payments, although
 determining the difference in potential growth between the two periods,
 did not function, strictu sensu, as a demand constraint. Rather, the
 responsibility for this lay with prices, which relaxed the limits imposed
 by foreign demand on growth during the autarky period and tightened them
 during the liberalization period. 
Journal: The Journal of International Trade & Economic Development 
Pages: 389-417 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Demand constraint, opening-up, growth, 
X-DOI: 10.1080/09638199900000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000024 
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Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Khanna 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Khanna 
Author-Name: Kusum Mundra 
Author-X-Name-First: Kusum 
Author-X-Name-Last: Mundra 
Author-Name: Aman Ullah 
Author-X-Name-First: Aman 
Author-X-Name-Last: Ullah 
Title: Parametric and semi-parametric estimation of the effect of firm attributes on efficiency: the electricity generating industry in India 
Abstract:
  A stochastic frontier cost function is estimated using panel data for the
 electricity generating industry in India. The impact of distributional and
 functional form assumptions on technical inefficiency and the sources of
 inefficiency are investigated by using maximum likelihood, GLS and
 semi-parametric-GLS approaches and by incorporating firm-specific
 inefficiency effects in the cost function itself. Average inefficiency in
 the electricity generating industry in India is found to be high by all
 three methods. The estimate predicted by the maximum-likelihood approach
 is, however, lower than that predicted by the other two methods. This
 could be due to the distributional assumptions made under the maximum
 likelihood method. Public ownership and low capacity utilization are found
 to be significant determinants of inefficiency in the electricity
 generating industry in India. 
Journal: The Journal of International Trade & Economic Development 
Pages: 419-430 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Stochastic frontier, maximum likelihood, semi-parametric, efficiency, panel data, electricity industry, 
X-DOI: 10.1080/09638199900000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000025 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:419-430




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Jensen 
Author-X-Name-First: Paul 
Author-X-Name-Last: Jensen 
Author-Name: Kala Krishna 
Author-X-Name-First: Kala 
Author-X-Name-Last: Krishna 
Title: Free entry in the Indian automobile industry: a calibration model 
Abstract:
  We examine the implications of free entry in the Indian automobile
 industry in a model that is calibrated to the Indian market using price,
 cost and production data from 1993 and 1994. In particular, we consider
 the effect that free entry has on prices, production levels and welfare.
 We have two main findings. First, that despite the experiences of other
 countries, free entry is a desirable policy in this market. Second, that
 the excise tax of 40 per cent levied on automobiles does not seem to have
 a major adverse impact on welfare. 
Journal: The Journal of International Trade & Economic Development 
Pages: 437-455 
Issue: 4 
Volume: 8 
Year: 1999 
Keywords: Entry, calibration, industrial policy, product differentiation, automobiles, India, 
X-DOI: 10.1080/09638199900000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199900000026 
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Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:437-455




Template-Type: ReDIF-Article 1.0
Author-Name: Jang Jin 
Author-X-Name-First: Jang 
Author-X-Name-Last: Jin 
Title: Openness and growth: an interpretation of empirical evidence from East Asian countries 
Abstract:
  This study investigates the effect of openness on economic growth for
 rapidly growing economies in East Asia in which rapid growth has been
 accompanied by a persistent openness to world trade. The framework of
 analysis is a five-variable vector autoregressive model that consists of
 real output, money supply, real government spending, foreign price shocks,
 and openness measures. The results do not strongly support the 'new'
 growth theories in which increasing openness affects long-run growth. For
 most countries in the sample, fiscal policy shocks as well as foreign
 price shocks have greater impacts on economic growth than does the
 openness shock. The results are generally consistent with the view that
 the role of the government is critical for growth among the East Asian
 economies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 5-17 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Openness, Economic Growth, Variance Decompositions, Impulse Response Functions, 
X-DOI: 10.1080/096381900362517 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362517 
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Stockman 
Author-X-Name-First: Peter 
Author-X-Name-Last: Stockman 
Title: The real dollar-yen exchange rate, asymmetries in trade flows and the current account in a perfect-foresight model for developing East Asia 
Abstract:
  This paper explores permanent, unanticipated shocks in the yen-dollar
 exchange rate in a perfect-foresight, infinite-horizon,
 representative-agent model for an open, semismall economy that produces a
 single good, imports intermediate inputs and investment goods from Japan
 and competes with Japan in external markets. Therefore, the model captures
 some of the features of the developing countries of East Asia. External
 debt is constrained by a country-risk premium that depends on the level of
 external debt. The capital stock is maintained and incremented by an
 endogenous mixture of Japanese and home goods. An appreciation of the
 dollar against the yen is neutral for external indebtedness and the trade
 account in the long run, but raises the capital stock, consumption and
 hence welfare in the long run; the home currency depreciates against the
 dollar but appreciates against the yen. Whether a cycle of current account
 surpluses followed by current account deficits or vice versa is generated
 depends on the initial response of the shadow value of external debt. 
Journal: The Journal of International Trade & Economic Development 
Pages: 19-36 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Current Account, Real Exchange Rate, Intermediate Imports, Representative Agent, Capital, Formation, East Asia, 
X-DOI: 10.1080/096381900362526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362526 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hak Choi 
Author-X-Name-First: Hak 
Author-X-Name-Last: Choi 
Author-Name: Hongyi Li 
Author-X-Name-First: Hongyi 
Author-X-Name-Last: Li 
Title: Economic development and growth convergence in China 
Abstract:
  We investigate the issue of per capita real GDP growth convergence of the
 Chinese economy. The shrinkage method for panel data models is used to
 estimate the convergence rates of the individual provinces. The empirical
 evidence shows that growth convergence exists in China. Our analysis
 allows us to estimate the convergence rates for individual provinces. The
 results also show that the low-income provinces of the middle and the
 western regions are experiencing higher convergence rates. 
Journal: The Journal of International Trade & Economic Development 
Pages: 37-54 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Growth Convergence, Shrinkage Estimation, 
X-DOI: 10.1080/096381900362535 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362535 
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Template-Type: ReDIF-Article 1.0
Author-Name: Siang Ng 
Author-X-Name-First: Siang 
Author-X-Name-Last: Ng 
Author-Name: Yew-Kwang Ng 
Author-X-Name-First: Yew-Kwang 
Author-X-Name-Last: Ng 
Title: Income disparities in the transition of China: reducing negative effects by dispelling misconceptions 
Abstract:
  Despite some conflicting figures, the problem of income disparities has
 probably increased in China, especially in the recent years. Although
 income disparity may be a natural outcome of a market economy, there are
 specific factors in China making it more of a problem. The negative
 effects of income disparity may be inflated by certain misconceptions.
 Such misconceptions may be dispelled by some simple economic analysis. In
 particular, the Marxist theory of exploitation can be shown to be
 incorrect; the enrichment of a sector can be shown to be beneficial to
 others in its general thrust; and a slightly higher growth rate with
 greater income disparity may be beneficial to the lower income groups in
 the long run owing to the compounding effects, which are usually
 underestimated. 
Journal: The Journal of International Trade & Economic Development 
Pages: 55-68 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: China, Chinese Economy, Economic Reform, Income Disparity, Inequality, 
X-DOI: 10.1080/096381900362544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362544 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:1:p:55-68




Template-Type: ReDIF-Article 1.0
Author-Name: Bharat Hazari 
Author-X-Name-First: Bharat 
Author-X-Name-Last: Hazari 
Author-Name: Chyau Tuan 
Author-X-Name-First: Chyau 
Author-X-Name-Last: Tuan 
Author-Name: Linda Ng 
Author-X-Name-First: Linda 
Author-X-Name-Last: Ng 
Title: A trade theoretic analysis of outward capital flows: with special reference to Hong Kong 
Abstract:
  This paper sets up a trade theoretic model to explain the output, price
 and welfare consequences of the outward investment from Hong Kong to the
 Pearl River Delta. A four-good trade theoretic model is set up to
 incorporate some special features of the Hong Kong Economy. We assume that
 the economy produces four goods: an exportable good, an importable good
 and two non-traded goods. A special feature of the model is that one of
 the non-traded goods (locally produced) is also consumed by foreigners and
 produced under the assumption of non-competitive market framework. As
 tourist or business-centre trade is of great significance to Hong Kong,
 this model allows us to capture this phenomenon. First, precise conditions
 are derived regarding the decline in manufacturing output in Hong Kong.
 Second, it is shown that, in spite of the supply side determination of the
 relative price of non-traded goods, income effects in this market are of
 great significance in both income (welfare) and output movements. These
 income effects cannot be captured in industrial organization type applied
 work. Third, it is shown how outflow of capital affects labour
 productivity. A surprising result obtained for this part of the analysis
 is that a fall in productivity (outflow of capital and
 de-industrialization) creates a favourable terms-of-trade effect in the
 monopolized sector. The welfare effect consists of four terms: (1) a
 terms-of trade effect via the price of non-traded goods consumed by
 tourists/foreigners; (2) the loss (gain) in productivity due to an outflow
 of capital; (3) repatriation payments; and (4) the gains from exporting
 from the Special Economic Zones as well as other Pearl River Delta cities.
 Our decomposition has two very important features in contrast to
 traditional models: a terms-of-trade effect from the consumption of
 services and productivity gains or losses. The last point is exceedingly
 important for policy makers specifically if outward flow of capital
 affects productivity negatively. 
Journal: The Journal of International Trade & Economic Development 
Pages: 69-81 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Outward Capital Flows, De-industrialization, Terms-of-trade, Externalities, Welfare, 
X-DOI: 10.1080/096381900362553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362553 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:1:p:69-81




Template-Type: ReDIF-Article 1.0
Author-Name: Day-Yang Liu 
Author-X-Name-First: Day-Yang 
Author-X-Name-Last: Liu 
Author-Name: Wen-Jui Yang 
Author-X-Name-First: Wen-Jui 
Author-X-Name-Last: Yang 
Title: A CGE model of 'Dutch disease' economics in Taiwan 
Abstract:
  A computable general equilibrium (CGE) model of Dutch disease economics
 in Taiwan's economy is established in order to examine the impacts of the
 imbalanced growth in output, endogenous learning effects from imports and
 exports and the import tariff reduction. Twenty-nine industry sectors and
 five quintiles of households are taken to measure the changes in industry
 structure and functional distribution of income. An imbalanced growth,
 either from output or exports, contributes to the reduction in the share
 of manufacturing industry, but the deterioration in the functional
 distribution of income only happens to an imbalanced growth in
 intersectoral output. A widespread trade liberalization policy helps to
 mitigate the Dutch disease phenomenon in the sense that
 de-industrialization and deterioration of the distribution of income by an
 imbalanced growth in manufacturing industry are not so severe. 
Journal: The Journal of International Trade & Economic Development 
Pages: 83-100 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Dutch Disease Economics, Resource Movement Effect, Spending Effect, Cge Model, Hicks-neutral Technology Progress, Tariff Reduction, Learning Effect, Functional, Distribution Of Income, 
X-DOI: 10.1080/096381900362562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362562 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:1:p:83-100




Template-Type: ReDIF-Article 1.0
Author-Name: Hsin Chang Lu 
Author-X-Name-First: Hsin Chang 
Author-X-Name-Last: Lu 
Title: International competition and wage differentials - the case of Taiwan 
Abstract:
  This paper documents and investigates the structure of relative wages
 among skill groups (distinguished by gender, education and potential
 experience) in Taiwan over the period 1978 to 1990. To account for these
 changes, I construct a model of wage determination in which demographic
 groups are treated as separate inputs into the production process. Thus,
 the changes in relative wages are determined by (i) changes in the
 relative supply of input factors; (ii) changes in the product composition;
 and (iii) biased technical changes that shift the relative demand for
 inputs. Analysis of OECD trade statistics shows that manufacturing imports
 from Taiwan to OECD, the main source of derived demand for the unskilled
 labour, exhibited a time pattern that matches the overall relative demand
 shifts. 
Journal: The Journal of International Trade & Economic Development 
Pages: 101-114 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Count Sample, Homogeneity Condition, Trade-related Demand Shifts, 
X-DOI: 10.1080/096381900362571 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362571 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:1:p:101-114




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Warr 
Author-X-Name-First: Peter 
Author-X-Name-Last: Warr 
Title: Myths about miracles: the case of Thailand 
Abstract:
  Over several decades, Thailand achieved rapid economic growth, based on
 booming exports, combined with low inflation, a record ending only with
 the crisis of 1997. The sources of this achievement have been poorly
 understood. The rapid growth has often been attributed to industry
 policies that promoted exports. But policy measures ostensibly designed to
 promote exports made no such contribution; they did not favour industries
 that subsequently performed well. The macroeconomic stability has likewise
 been attributed in part to discretionary fiscal stabilization. However,
 short-run, discretionary fiscal policy made almost no contribution to
 macroeconomic stabilization; automatic fiscal stabilizers were far more
 important. 
Journal: The Journal of International Trade & Economic Development 
Pages: 115-134 
Issue: 1 
Volume: 9 
Year: 2001 
Keywords: Thailand, Export Promoting, Fiscal Stabilization, 
X-DOI: 10.1080/096381900362580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900362580 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:1:p:115-134




Template-Type: ReDIF-Article 1.0
Author-Name: Bharati Basu 
Author-X-Name-First: Bharati 
Author-X-Name-Last: Basu 
Title: Rural-urban migration, urban unemployment and the structural transformation of a dual economy 
Abstract:
  This paper restructures the Harris-Todaro model in such a way that
 rural-urban migration in the presence of urban unemployment brings in the
 structural transformation desired for a developing dual economy by
 expanding the industrial sector before any policy is introduced to cure
 the domestic factor market distortion. Furthermore, migration may also
 help to eliminate unemployment as well as the wage gap in the economy.
 When international trade is introduced in this restructured dual economy,
 trade policies would have new implications; for example, unlike in the
 original Harris- Todaro structure, the import tariff may bring full
 employment and eliminate wage gaps between the sectors. 
Journal: The Journal of International Trade & Economic Development 
Pages: 137-149 
Issue: 2 
Volume: 9 
Year: 2001 
Keywords: Rural-urban Migration, Unemployment, Structural Transformation, 
X-DOI: 10.1080/09638190050028144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028144 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:137-149




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Echevarria 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Echevarria 
Title: Non-homothetic preferences and growth 
Abstract:
  We observe that countries at low levels of income invest at lower rates
 than those at higher levels of income. This paper explains this fact as a
 consequence of Engel's law, i.e. that there is an inverse relation between
 expenditure and its proportion spent on food. It introduces non-homothetic
 preferences based on Engel's law in a simple Solow model. These
 preferences imply rates of net investment that increase with the level of
 income as we approach the steady state. Increasing investment rates imply
 a positive correlation between growth rates and the level of income, at
 low levels of income, rather than an inverse relation, as the usual Solow
 model implies. The existence of a positive correlation between income
 growth rates and income levels, at low levels of income in the presence of
 this type of preference, has already been shown in a previous paper for a
 closed economy. The purpose of this paper is to show that this positive
 correlation persists when we introduce trade into the model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 151-171 
Issue: 2 
Volume: 9 
Year: 2001 
Keywords: Engel's Law, Growth, Investment Rates, 
X-DOI: 10.1080/09638190050028153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028153 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:151-171




Template-Type: ReDIF-Article 1.0
Author-Name: Alan King 
Author-X-Name-First: Alan 
Author-X-Name-Last: King 
Title: Modelling manufactured exports in Europe: a two-regime approach 
Abstract:
  Of the hundreds of empirical studies examining the determinants of
 aggregate export volumes, almost all are based on a theoretical model that
 assumes that firms are operating in an identical environment. The very few
 studies that attempt to relax this assumption are all subject to their
 limitations. In this paper, a simple two-regime model is presented that
 allows for some environmental heterogeneity but avoids the shortcomings of
 the earlier approaches. This model performs generally satisfactorily when
 applied to nine Western European nations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 173-192 
Issue: 2 
Volume: 9 
Year: 2001 
Keywords: Exports, Two-REGIME, Europe, Error Correction Model, 
X-DOI: 10.1080/09638190050028162 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028162 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:173-192




Template-Type: ReDIF-Article 1.0
Author-Name: John Burkett 
Author-X-Name-First: John 
Author-X-Name-Last: Burkett 
Title: Cones of diversification in a model of international comparative advantage 
Abstract:
  The hypothesis that all countries belong to a single cone of
 diversification is often used in studies of international trade. However,
 contrary to this hypothesis, the range of capital-labour input ratios in
 US industries does not encompass the range of capital- labour endowment
 ratios in the world's economies. Furthermore, among countries with
 capital-labour endowment ratios below the range of US capital-labour input
 ratios, wage rates are much lower than in the US. In this paper, the
 one-cone hypothesis is assessed relative to a two-cone alternative by
 clustering countries with similar factor proportions, estimating
 regressions for gross national product and net exports, testing for
 equality of coefficients, and approximating the posterior odds on one- and
 two-cone models. Rejecting the one-cone hypothesis, the paper presents
 estimates of a two-cone model and considers their implications for factor
 flows and the prospects of emerging market economies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 193-211 
Issue: 2 
Volume: 9 
Year: 2001 
Keywords: International Trade, Cones Of Diversification, 
X-DOI: 10.1080/09638190050028171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028171 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:193-211




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Beladi 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Beladi 
Author-Name: Sugata Marjit 
Author-X-Name-First: Sugata 
Author-X-Name-Last: Marjit 
Title: A general equilibrium analysis of foreign investment and intersectoral linkage 
Abstract:
  In this paper, we demonstrate that a foreign capital induced growth in a
 protected sector, which provides an industrial input for agricultural
 products, may increase welfare even after the entire foreign capital
 income is repatriated. Such a policy may lead to an increase in the volume
 of trade along with an increase in the size of the protected sector, quite
 contrary to the usual perception. The analysed structure also incorporates
 migration and unemployment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 213-218 
Issue: 2 
Volume: 9 
Year: 2001 
Keywords: Foreign Capital, Growth, Urban Unemployment, 
X-DOI: 10.1080/09638190050028180 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028180 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:213-218




Template-Type: ReDIF-Article 1.0
Author-Name: Chiranjib Sen 
Author-X-Name-First: Chiranjib 
Author-X-Name-Last: Sen 
Author-Name: K. Surekha Rao 
Author-X-Name-First: K. Surekha 
Author-X-Name-Last: Rao 
Title: Book review 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 219-222 
Issue: 2 
Volume: 9 
Year: 2001 
X-DOI: 10.1080/09638190050028199 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050028199 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:219-222




Template-Type: ReDIF-Article 1.0
Author-Name: Dermot Leahy 
Author-X-Name-First: Dermot 
Author-X-Name-Last: Leahy 
Author-Name: Catia Montagna 
Author-X-Name-First: Catia 
Author-X-Name-Last: Montagna 
Title: Temporary social dumping, union legalisation and FDI: a note on the strategic use of standards 
Abstract:
  This paper analyses the welfare implications for a developing country of
 using union legalisation as a policy instrument to attract inward foreign
 direct investment. While its presence may discourage a foreign
 multinational (MNE) from locating in the host country, unionisation is an
 important rent-extracting instrument for the host country. We show that if
 the MNE benefits from dynamic effects, the host country government may
 have an incentive to adopt temporary social dumping: banning the union in
 the short run to extract higher rents in the future. However, if the
 government can use a fiscal instrument in conjunction with union
 legalisation, the former can circumvent the need to engage in social
 dumping. 
Journal: The Journal of International Trade & Economic Development 
Pages: 243-259 
Issue: 3 
Volume: 9 
Year: 2001 
Keywords: Multinationals, Social Dumping, Labour Standards, 
X-DOI: 10.1080/09638190050086168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050086168 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:3:p:243-259




Template-Type: ReDIF-Article 1.0
Author-Name: Judith Giles 
Author-X-Name-First: Judith 
Author-X-Name-Last: Giles 
Author-Name: Cara Williams 
Author-X-Name-First: Cara 
Author-X-Name-Last: Williams 
Title: Export-led growth: a survey of the empirical literature and some non-causality results. Part 1 
Abstract:
  The economic development and growth literature contains extensive
 discussions on relationships between exports and economic growth. One
 debate centres on whether countries should promote the export sector to
 obtain economic growth. An abundant empirical literature on this
 export-led growth (ELG) hypothesis has followed. We aim to contribute to
 this literature in two ways. In this paper, part 1, we provide a
 comprehensive survey of more than 150 export-growth applied papers. We
 describe the changes that have occurred, over the last two decades, in the
 methodologies used empirically to examine for relationships between
 exports and economic growth, and we provide information on the current
 findings.The last decade has seen an abundance of time series studies that
 focus on examining for causality via exclusions restrictions tests,
 impulse response function analysis and forecast error variance
 decompositions. Our second contribution is to examine some of these time
 series methods. We show, in part 2, that ELG results based on standard
 causality techniques are not typically robust to specification or method.
 We do this by reconsidering two export-led growth applications - Oxley's
 (1993) study for Portugal, and Henriques and Sadorsky's (1996) analysis
 for Canada. Our results suggest that extreme care should be exercised when
 interpreting much of the applied research on the ELG hypothesis. 
Journal: The Journal of International Trade & Economic Development 
Pages: 261-337 
Issue: 3 
Volume: 9 
Year: 2001 
Keywords: Economic Growth, Export Promotion, Causality, Time Series Models, Cointegration, Innovation Accounting, 
X-DOI: 10.1080/09638190050086177 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050086177 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:3:p:261-337




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Cole 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Cole 
Author-Name: Anthony Rayner 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Rayner 
Title: The Uruguay Round and air pollution: estimating the composition, scale and technique effects of trade liberalization 
Abstract:
  This paper develops a methodology to estimate the environmental impact of
 the Uruguay Round trade agreement. The impact is estimated in terms of
 five air pollutants for both developed and developing countries/regions.
 The methodology estimates environmental Kuznets curves and uses these in
 conjunction with FranCois et al.'s (1995) estimates of Uruguay Round
 income gains and sectoral production changes, together with sectoral
 pollution intensities from Hettige et al. (1994). In this manner,
 composition, scale and technique effects of the Uruguay Round on air
 pollution are estimated. The monetary cost/benefit associated with the
 pollution changes is also estimated. Results indicate that emissions of
 all five pollutants are predicted to increase in developing and transition
 regions as a result of the Uruguay Round, whilst in developed regions
 emissions of three pollutants decrease and two increase. The results also
 suggest that the environmental impact will be considerably greater if the
 Uruguay Round affects the rate of economic growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 339-354 
Issue: 3 
Volume: 9 
Year: 2001 
Keywords: Trade Liberalization, Economic Growth, Industrial Composition, Air Pollution, 
X-DOI: 10.1080/09638190050086186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050086186 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:3:p:339-354




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Manuchehr Irandoust 
Author-X-Name-First: Manuchehr 
Author-X-Name-Last: Irandoust 
Title: Time-series evidence for Balassa's export-led growth hypothesis 
Abstract:
  This paper investigates Balassa's export-led growth hypothesis for
 Greece, Ireland, Mexico, Portugal and Turkey by constructing a vector
 autoregression (VAR) model. On the basis of the Granger non-causality
 procedure developed by Toda and Yamamoto (1995), the results show that
 export and output are causally related in the long run for Ireland, Mexico
 and Portugal. Our findings cannot offer support for the causality link
 between export and output for Greece and Turkey. Granger-causality is
 uni-directional, running from export growth to economic growth in Ireland
 and Mexico, and running from economic growth to export growth in Portugal. 
Journal: The Journal of International Trade & Economic Development 
Pages: 355-365 
Issue: 3 
Volume: 9 
Year: 2001 
Keywords: Exports, Economic Growth, Granger, Non-CAUSALITY, Cointegration, 
X-DOI: 10.1080/09638190050086195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190050086195 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:3:p:355-365




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Aizenman 
Author-Name: Michael Gavin 
Author-X-Name-First: Michael 
Author-X-Name-Last: Gavin 
Author-Name: Ricardo Hausmann 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Hausmann 
Title: Optimal tax and debt policy with endogenously imperfect creditworthiness 
Abstract:
  This paper studies the patterns of optimal tax rates and borrowing in a
 developing country characterized by a costly tax collection. Its access to
 the international credit market is determined by the efficiency of the tax
 system, the relative bargaining power of creditors, and the outstanding
 debt. Country risk modifies considerably the pattern of taxes and
 borrowing in recessions. The tax rate exhibits strong counter-cyclical
 patterns in economies operating close to the credit ceiling, whereas the
 tax rate exhibits very few cyclical patterns in economies operating on the
 elastic portion of the supply of credit, where country risk factors are
 absent. 
Journal: The Journal of International Trade & Economic Development 
Pages: 367-395 
Issue: 4 
Volume: 9 
Year: 2001 
Keywords: Borrowing Constraints, Credit Ceilings, Optimal Tax, 
X-DOI: 10.1080/096381900750056830 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900750056830 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:4:p:367-395




Template-Type: ReDIF-Article 1.0
Author-Name: Juan RosellOn 
Author-X-Name-First: Juan 
Author-X-Name-Last: RosellOn 
Title: The economics of rules of origin 
Abstract:
  Rules of origin of free trade arrangements limit the use of inputs from
 outside the preferential trade zone. A government negotiating a future
 FTAcan manipulate these rules in order to achieve national welfare
 objectives. The correct definition of rules of origin may help to enhance
 demand for domestically produced goods, promote national technological
 development, and maximize labour income. This paper proves that a more
 stringent rule of origin implies an increase of demand for the domestic
 factor if the substitution effect prevails over the effects caused by the
 decrease of the scale of operation in the domestic plant, and the
 reallocation of output between domestic and foreign plants. We further
 show that policy decisions regarding rules of origin that intertemporally
 maximize welfare and foster domestic technological evolution should be
 made at the greatest level of disaggregation that is feasible. 
Journal: The Journal of International Trade & Economic Development 
Pages: 397-425 
Issue: 4 
Volume: 9 
Year: 2001 
Keywords: Rules Of Origin, Content Protection, Commercial Policy, Free Trade Agreement, Learning, 
X-DOI: 10.1080/096381900750056849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900750056849 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:4:p:397-425




Template-Type: ReDIF-Article 1.0
Author-Name: Sung Jin Kang 
Author-X-Name-First: Sung Jin 
Author-X-Name-Last: Kang 
Author-Name: Yasuyuki Sawada 
Author-X-Name-First: Yasuyuki 
Author-X-Name-Last: Sawada 
Title: Financial repression and external openness in an endogenous growth model 
Abstract:
  An endogenous growth model has been developed that extends Sidrauski
 (1967), Roubini and Sala-i-Martin (1992,1995) and Lucas (1988) by
 combining financial development, human capital investment, and external
 openness. Financial development and trade liberalization are shown to
 increase the economic growth rate by increasing the marginal benefits of
 human capital investment. Expansionary governments are, however, provided
 with an incentive to increase the money supply growth rate, to repress the
 financial sector, to close its economy, and to impose a high proportional
 income tax rate. 
Journal: The Journal of International Trade & Economic Development 
Pages: 427-443 
Issue: 4 
Volume: 9 
Year: 2001 
Keywords: Endogenous Growth, Financial Repression, Openness, Human Capital, 
X-DOI: 10.1080/096381900750056858 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900750056858 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:4:p:427-443




Template-Type: ReDIF-Article 1.0
Author-Name: Judith Giles 
Author-X-Name-First: Judith 
Author-X-Name-Last: Giles 
Author-Name: Cara Williams 
Author-X-Name-First: Cara 
Author-X-Name-Last: Williams 
Title: Export-led growth: a survey of the empirical literature and some non-causality results. Part 2 
Abstract:
  This paper continues the investigation of Giles and Williams (2000) on
 export-led growth (ELG). In the first part, we surveyed the empirical
 export-led growth literature; it was evident that Granger non-causality
 tests are commonly applied as a test for ELG. In this paper, we explore
 the sensitivity of the test for exclusions restrictions often used as the
 Granger non-causality test for ELG by reconsidering two applications:
 Oxley's (1993) study for Portugal and Henriques and Sadorsky's (1996)
 analysis for Canada. We focus on the robustness of the method adopted to
 deal with non-stationarity, including the choice of deterministic trend
 degree. We show that different noncausality outcomes are easy to obtain,
 and consequently we recommend that readers interpret the empirical ELG
 literature with care. Our analysis also highlights the importance of
 examining the robustness of Granger non-causality test results to avoid
 spurious outcomes in applications. 
Journal: The Journal of International Trade & Economic Development 
Pages: 445-470 
Issue: 4 
Volume: 9 
Year: 2001 
Keywords: Economic Growth, Causality, Time Series Models, Robustness, Misspecification, Model Dimension, Cointegration, 
X-DOI: 10.1080/096381900750056867 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381900750056867 
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Handle: RePEc:taf:jitecd:v:9:y:2001:i:4:p:445-470




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Gervais 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Gervais 
Title: Production uncertainty and trade policy commitment 
Abstract:
  Agricultural markets are characterized by production and marketing lags.
 Uncertainty is also an inherent feature of agricultural markets. This
 paper investigates if two policy active importers will choose to commit to
 their import levels or keep the flexibility to revise their ex-ante import
 levels once production decisions are made and the uncertainty is resolved.
 This is the constant dilemma faced by prospective WTO members. We assume
 production in both importing countries is subject to an asymmetric random
 shock. We show that a government will not want to commit to its import
 level when there is a high degree of uncertainty in production. However,
 an importing country is likely to commit to a trade policy in equilibrium
 although the equilibrium may be Pareto dominated. Under certain
 conditions, an equilibrium in which one country commits to its ex-ante
 import level while the other chooses the flexibility option can emerge. In
 this setting, international trade agreements play an important role. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-21 
Issue: 1 
Volume: 10 
Year: 2001 
Keywords: Trade Agreements, Tariff-RATE Quotas, Pre-COMMITMENT, Production Uncertainty, 
X-DOI: 10.1080/09638190010015241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010015241 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:1:p:1-21




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Chur Chao 
Author-X-Name-First: Chi-Chur 
Author-X-Name-Last: Chao 
Author-Name: Chong Yip 
Author-X-Name-First: Chong 
Author-X-Name-Last: Yip 
Title: Non-traded goods and optimal trade policy in a cash-in-advance economy 
Abstract:
  This paper develops a standard trade model of a small open monetary
 economy with two traded and one non-traded goods. Money is introduced
 through a generalized cash-in-advance constraint where the share of goods
 purchases that must be made using cash, varies across sectors. We find
 that free trade may be harmful so that alternative policy instruments may
 be considered to improve welfare. In addition, we study and compare the
 optimal tariff formula and the optimal consumption tax structure. In the
 presence of a monetary distortion of the non-traded good, a consumption
 tax may not Pareto dominate a tariff although the latter bears an
 additional production burden. This corroborates the theory of second best. 
Journal: The Journal of International Trade & Economic Development 
Pages: 23-37 
Issue: 1 
Volume: 10 
Year: 2001 
Keywords: Trade Policy, Non-TRADED Goods, Cash In Advance, 
X-DOI: 10.1080/09638190010015250 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010015250 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:1:p:23-37




Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Kohli 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Kohli 
Title: Sanyal and Jones on trade in middle products 
Abstract:
  This paper reports, for the first time, empirical estimates of one of the
 most ingenious models of trade in intermediate products - the model of
 Sanyal and Jones. We show how the restrictions implied by the Sanyal and
 Jones production structure can be imposed and tested with the help of
 aggregate data even though information about the allocation of inputs and
 outputs between tiers and industries is not available. A new theoretical
 concept, that of 'disjoint production' is introduced. We also propose a
 new functional form that is a generalization of the Symmetric Normalized
 Quadratic restricted profit function. 
Journal: The Journal of International Trade & Economic Development 
Pages: 39-63 
Issue: 1 
Volume: 10 
Year: 2001 
Keywords: International Trade, Middle Products, Structure Of Production, Non-JOINTNESS, Flexible Functional Forms, 
X-DOI: 10.1080/096381901300044345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381901300044345 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:1:p:39-63




Template-Type: ReDIF-Article 1.0
Author-Name: T. A. Bhavani 
Author-X-Name-First: T. A. 
Author-X-Name-Last: Bhavani 
Author-Name: Suresh Tendulkar 
Author-X-Name-First: Suresh 
Author-X-Name-Last: Tendulkar 
Title: Determinants of firm-level export performance: a case study of Indian textile garments and apparel industry 
Abstract:
  Drawing on international trade and industrial organisation theories, this
 paper identifies variables affecting (a) the export decision function,
 i.e. to export or sell in domestic market, and (b) the export performance
 function, i.e. the share of exports in output. These functions are
 estimated for Garment and Apparel producing units in Delhi. The form of
 business organisation, reflecting access to capital, turns out to be a key
 determinant in both functions. The estimated marginal impact of identified
 variables (scale and share of sales expenses) on the probability of
 exporting in an estimated Probit model declines sharply when moving from
 single proprietorship to partnership and on to limited companies. On the
 other hand, every single determinant (scale, share of wages, share of
 sales expenses and technical efficiency) has been found to have an
 increasing marginal impact on export performance in an estimated Tobit
 model when moving across the three forms of business organisation.
 Empirical results suggest two policy changes to boost export performance.
 First, given the importance of scale for exports, the existing policy of
 reserving garments and apparel for exclusive production in small-scale
 units needs to be scrapped. Simultaneously, it is also necessary to amend
 current labour legislation applicable to large-scale factory units, as it
 introduces labour market inflexibility and hence serves as an impediment
 to the expansion of existing units and the entry of new units. 
Journal: The Journal of International Trade & Economic Development 
Pages: 65-92 
Issue: 1 
Volume: 10 
Year: 2001 
Keywords: Small Scale Industries, Technical Efficiency, Competitive Advantage, Export Decision And Performance Functions, 
X-DOI: 10.1080/09638190122431 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190122431 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:1:p:65-92




Template-Type: ReDIF-Article 1.0
Author-Name: Nilanjana Roy 
Author-X-Name-First: Nilanjana 
Author-X-Name-Last: Roy 
Title: A semiparametric analysis of calorie response to income change across income groups and gender 
Abstract:
  This paper estimates the relationship between calorie intake and income
 within a semiparametric framework, which allows for heterogeneity across
 individuals and possible nonlinearity in the relationship. The results,
 using a panel data set from rural south India, indicate that the income
 elasticity of calorie intake is small but is nonzero and statistically
 significant, and that the elasticity is higher for the relatively poor
 households in the sample. The semiparametric analysis also brings out some
 interesting patterns of calorie response to income change at different
 income levels for males and females. 
Journal: The Journal of International Trade & Economic Development 
Pages: 93-109 
Issue: 1 
Volume: 10 
Year: 2001 
Keywords: Incomeaelasticity Of Calorie Intake, Nonparametric And Semiparametric Estimation, Panel Data, 
X-DOI: 10.1080/09638190010015287 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010015287 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:1:p:93-109




Template-Type: ReDIF-Article 1.0
Author-Name: Anil Lal 
Author-X-Name-First: Anil 
Author-X-Name-Last: Lal 
Title: Goods and factors liberalization under increasing returns to scale 
Abstract:
  This paper develops a general equilibrium model with alternative forms of
 import restrictions, international capital mobility, and taxes on the rate
 of return on foreign capital in the context of a small open economy using
 an external increasing returns technology. Within this framework, this
 paper analyses the price and welfare effects of import liberalization in
 the presence of tax on foreign capital and of factor flows liberalization
 in the presence of alternative forms of import restrictions. It is shown,
 among other things, that, in contrast to the existing literature on
 constant returns to scale economy, the optimal policy towards foreign
 factors is possibly tax under each form of import restrictions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 115-131 
Issue: 2 
Volume: 10 
Year: 2001 
Keywords: Increasing Returns, Import Restrictions, Tax On Foreign Capital, 
X-DOI: 10.1080/09638190110039019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110039019 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:2:p:115-131




Template-Type: ReDIF-Article 1.0
Author-Name: Subhayu Bandyopadhyay 
Author-X-Name-First: Subhayu 
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Sudeshna Bandyopadhyay 
Author-X-Name-First: Sudeshna 
Author-X-Name-Last: Bandyopadhyay 
Title: Efficient bargaining, welfare and strategic export policy 
Abstract:
  We present an efficient bargaining model and analyse the welfare effects
 of unionization, where rival exporting governments employ strategic export
 policy. The domestic firm is unionized and conducts a Nash bargain with
 its union to determine wage and employment. The union may be wage
 oriented, wage neutral or employment oriented. The foreign firm is
 non-unionized. Stability of the reaction function equilibrium in policy
 space is sufficient for the following results: (i) domestic welfare
 increases with the degree of wage orientation; (ii) an increase in the
 union's bargaining power leads to higher (lower) domestic welfare if the
 union is wage (employment) oriented; (iii) if the domestic social marginal
 cost of labour is less than or equal to the foreign marginal cost,
 domestic market share is higher under wage orientation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 133-149 
Issue: 2 
Volume: 10 
Year: 2001 
Keywords: Unionized Oligopoly, Wage Orientation And Employment Orientation, Union Bargaining Power, Stability In Policy Space, 
X-DOI: 10.1080/09638190110039028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110039028 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:2:p:133-149




Template-Type: ReDIF-Article 1.0
Author-Name: Elio Londero 
Author-X-Name-First: Elio 
Author-X-Name-Last: Londero 
Title: The alleged countercyclical nature of Argentina's exports of manufactures 
Abstract:
  It has been suggested that, during the 1970s and 1980s, excess capacity
 played an important role in the performance of Latin American exports of
 manufactures. This paper shows that countercyclical factors should be
 expected for most exports, and submits the hypothesis that these effects
 are more important for a limited subset of products with special
 characteristics. Econometric testing of Argentine export functions could
 not reject this hypothesis. The paper ends by discussing the implications
 for export modelling and policy analysis. 
Journal: The Journal of International Trade & Economic Development 
Pages: 151-173 
Issue: 2 
Volume: 10 
Year: 2001 
Keywords: Exports, Countercyclical Behaviour, Manufactures, Price Elasticity, Argentina, Latin America, 
X-DOI: 10.1080/09638190110039037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110039037 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:2:p:151-173




Template-Type: ReDIF-Article 1.0
Author-Name: Kristin Forbes 
Author-X-Name-First: Kristin 
Author-X-Name-Last: Forbes 
Title: Skill classification does matter: estimating the relationship between trade flows and wage inequality 
Abstract:
  Empirical work must pay careful attention to how it measures the relative
 skill abundance of countries and the relative skill intensity embodied in
 trade flows. This paper compiles a new data set, using income levels,
 average education, manufacturing wages, and an index of these three
 variables, to classify countries and trade flows as relatively high skill
 or low skill. Then, in order to show the importance of skill
 classification, it uses a reduced-form fixed-effects model to estimate the
 relationship between trade flows and wage inequality. This specification
 not only controls for any time-invariant omitted variables, but also
 permits the inclusion of a large number of diverse countries. When more
 accurate skill rankings are utilized, results suggest that, in high-skill
 abundant countries, increased trade with lower-skill countries is
 correlated with an increase in wage inequality. This relationship is
 significant and highly robust and is driven by the negative relationship
 between trade and low-skill wages (instead of a positive relationship
 between trade and high-skill wages.) Results, however, are highly
 dependent on the skill classification utilized. 
Journal: The Journal of International Trade & Economic Development 
Pages: 175-209 
Issue: 2 
Volume: 10 
Year: 2001 
Keywords: Trade, Wages, Inequality, Skill, 
X-DOI: 10.1080/09638190110039046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110039046 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:2:p:175-209




Template-Type: ReDIF-Article 1.0
Author-Name: Pushkar Maitra 
Author-X-Name-First: Pushkar 
Author-X-Name-Last: Maitra 
Title: A quantitative analysis of employment guarantee programmes with an application to rural India 
Abstract:
  This paper examines the welfare effects of a workfare programme in an
 economy where agents face exogenous income shocks and are unable to insure
 themselves through private markets. A dynamic general equilibrium model is
 calibrated using data from two ICRISAT villages in the Indian state of
 Maharashtra, which had a functioning Employment Guarantee Scheme (EGS), in
 the period 1979-84. The optimal wage and the welfare gains of the program
 depend on how productive the EGS is, relative to the private sector. When
 agents are paid the optimal wage rate, they do not hold the
 non-interest-bearing asset for precautionary savings and all insurance is
 provided by the EGS. There are significant welfare gains from paying the
 optimal wage rate as opposed to simply paying the marginal product of
 labour in the EGS. 
Journal: The Journal of International Trade & Economic Development 
Pages: 211-228 
Issue: 2 
Volume: 10 
Year: 2001 
Keywords: Consumption Smoothing, Workfare, Rural Economies, 
X-DOI: 10.1080/09638190110039055 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110039055 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:2:p:211-228




Template-Type: ReDIF-Article 1.0
Author-Name: Edward Kane 
Author-X-Name-First: Edward 
Author-X-Name-Last: Kane 
Title: Financial safety nets: reconstructing and modelling a policymaking metaphor 
Abstract:
  This paper explains that financial safety nets exist because of
 difficulties in enforcing contracts and shows that elements of
 deposit-insurance schemes differ substantially across countries. It shows
 that differences in the design of financial safety nets correlate
 significantly with differences in the informational and contracting
 environments of individual countries and that a country's GDP per capita
 is correlated with proxies for a country's level of: (1) informational
 transparency, (2) contract enforcement and deterrent rights, and (3)
 accountability for safety net officials. The analysis portrays deposit
 insurance as a part of a country's larger safety net and contracting
 environment. This means that there is no universal method for preventing
 and resolving banking problems and that the structure of a country's
 safety net should evolve over time with changes in private and government
 regulators' capacity for valuing financial institutions, disciplining risk
 taking and resolving insolvency promptly, and for being held accountable
 for how well they perform these tasks. 
Journal: The Journal of International Trade & Economic Development 
Pages: 237-273 
Issue: 3 
Volume: 10 
Year: 2001 
Keywords: Safety Nets, Deposit Insurance, Financial Regulation, Financial Contracting Theory, Risk-SHIFTING, 
X-DOI: 10.1080/09638190110061302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110061302 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:237-273




Template-Type: ReDIF-Article 1.0
Author-Name: Mukesh Eswaran 
Author-X-Name-First: Mukesh 
Author-X-Name-Last: Eswaran 
Author-Name: Ashok Kotwal 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Kotwal 
Title: Agriculture, innovational ability, and dynamic comparative advantage of LDCs 
Abstract:
  The goal of this paper is twofold: (1) to model a process of development
 based on the notion that the engine of growth is the generation of new
 ideas by skilled individuals, and (2) to explore the role of agricultural
 productivity growth in such a process. The key ingredients of our model
 are: preferences consistent with Engel's Law, and the asymmetry arising
 from there being a greater scope in industry than in agriculture for
 incremental innovation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 275-289 
Issue: 3 
Volume: 10 
Year: 2001 
Keywords: Dynamic Comparative Advantage, Engel's Law, Agricultural Productivity, 
X-DOI: 10.1080/09638190110061311 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110061311 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:275-289




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Benarroch 
Author-X-Name-First: Michael 
Author-X-Name-Last: Benarroch 
Author-Name: James Gaisford 
Author-X-Name-First: James 
Author-X-Name-Last: Gaisford 
Title: Export-promoting production subsidies and the dynamic gains from experience 
Abstract:
  This paper examines export-promoting production subsidies in a dynamic
 product-cycle model with learning by doing and spillovers from experience.
 History dictates that the South is less experienced than the North and,
 thus, produces less advanced goods. Non-uniform Southern export promoting
 production subsidies applied to a small set of marginal industries that
 are on the verge of being internationally competitive, generate
 conventional static benefits for the South and costs for the North. Since
 such an industrial policy expands the South's range of production, it
 ultimately enhances Southern learning. The South's rate of production and
 technology transfer and the North's rate of innovation both increase,
 creating dynamic benefits for each country. While the South must gain
 overall, the North will also gain if the dynamic benefits outweigh the
 static costs. 
Journal: The Journal of International Trade & Economic Development 
Pages: 291-320 
Issue: 3 
Volume: 10 
Year: 2001 
Keywords: International Trade, Learning By Doing Production Subsidies, Technology Transfer, 
X-DOI: 10.1080/09638190110061320 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110061320 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:291-320




Template-Type: ReDIF-Article 1.0
Author-Name: James Melvin 
Author-X-Name-First: James 
Author-X-Name-Last: Melvin 
Author-Name: Robert Waschik 
Author-X-Name-First: Robert 
Author-X-Name-Last: Waschik 
Title: The neoclassical ambiguity in the specific factor model 
Abstract:
  An alternative diagrammatic mechanism is developed to illustrate the
 effect of output price changes on input prices, particularly the return to
 labour, in a two-good, three-factor specific factor model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 321-337 
Issue: 3 
Volume: 10 
Year: 2001 
Keywords: Neoclassical Ambiguity, Specific Factors, 
X-DOI: 10.1080/09638190110061339 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110061339 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:321-337




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Slaughter 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Slaughter 
Title: Does trade liberalization converge factor prices? Evidence from the antebellum transportation revolution 
Abstract:
  A widespread current policy concern is whether the international
 integration of product markets forces together wages across countries. To
 help gain an insight into this issue, this paper analyses the case of the
 US antebellum transportation revolution. Between 1820 and 1860 an
 extensive intranational network of canals and railroads emerged that
 dramatically reduced transportation costs within the country. Motivated by
 the factor-price-convergence (FPC) theorem from Heckscher-Ohlin trade
 theory, this paper explores the impact of these cost reductions on
 regional product prices and wages. The main empirical finding is that
 prices converged quite markedly across regions, but nominal wages
 converged very little. The paper then discusses three possible
 explanations of no wage convergence. 
Journal: The Journal of International Trade & Economic Development 
Pages: 339-362 
Issue: 3 
Volume: 10 
Year: 2001 
Keywords: Trade Liberalization, Factor Prices, 
X-DOI: 10.1080/09638190110061348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110061348 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:339-362




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Deardorff 
Author-X-Name-First: Alan 
Author-X-Name-Last: Deardorff 
Title: Developing country growth and developed country response 
Abstract:
  This paper makes a theoretical argument that growth in developing
 countries is likely to worsen the income distribution in developed
 countries and lead to a protectionist response that undermines the
 incentives for developing country growth. The model for this purpose is
 the two-cone version of the Heckscher-Ohlin (HO) trade model, in which
 countries have different factor prices even with free trade, and in which
 they produce mostly different groups of goods. In this model, unlike the
 HO model with factor price equalization, growth by the poor country
 expands the output of its capitalintensive good, which is also the
 labour-intensive good of the other country. Regardless of whether factors
 are mobile or immobile across sectors, this reduces the real wages of
 factors that are either intensive or specific in the labour-intensive
 sector of the rich country. The paper argues that this will then lead to
 the rich country restricting trade. This, in turn, will lower the return
 to capital in the poor country and reduce the incentive for further
 growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 373-392 
Issue: 4 
Volume: 10 
Year: 2001 
Keywords: Trade And Growth, Income Distribution, 
X-DOI: 10.1080/09638190110073769 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110073769 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:4:p:373-392




Template-Type: ReDIF-Article 1.0
Author-Name: Dermot Leahy 
Author-X-Name-First: Dermot 
Author-X-Name-Last: Leahy 
Author-Name: J. Peter Neary 
Author-X-Name-First: J. Peter 
Author-X-Name-Last: Neary 
Title: Robust rules for industrial policy open economies 
Abstract:
  The theory of strategic trade policy yields ambiguous recommendations for
 assistance to exporting firms in oligopolistic industries. However, some
 writers have suggested that investment subsidies are a more robust
 recommendation than export subsidies. We show that, although ambiguous in
 principle, the case for investment subsidies is reasonably robust in
 practice. Except when functional forms exhibit arbitrary nonlinearities,
 it holds under both Cournot and Bertrand competition, with either
 costreducing or market-expanding investment, and with or without
 spillovers. Only if firms have strong asymmetries in their investment
 behaviour and engage in Bertrand competition is an investment tax clearly
 justified. 
Journal: The Journal of International Trade & Economic Development 
Pages: 393-409 
Issue: 4 
Volume: 10 
Year: 2001 
Keywords: Cost-REDUCING Investment, Export Subsidies, Market-EXPANDING Investment, R+D Subsidies, Strategic Industrial Policy, Strategic Trade Policy, 
X-DOI: 10.1080/09638190110073778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110073778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:10:y:2001:i:4:p:393-409




Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Klump 
Author-X-Name-First: Rainer 
Author-X-Name-Last: Klump 
Title: Trade, money and employment in intertemporal optimizing models of growth 
Abstract:
  This paper unites elements of Sidrauski's (1967) monetary model of
 growth, Ventura's (1997) analysis of the effects of international trade on
 growth, and some work on the labour market implications of growth by Barro
 and Sala-i-Martin (1995). It was shown by Ventura that, for a small
 economy, free international trade leads to an increase of the de facto
 elasticity of substitution between the domestic factors of production. The
 first part of the paper analyses how such an increase in the elasticity of
 substitution influences the steady state and the speed of convergence.
 From the Sidrauski model we know that money is super-neutral in the
 long-run but that monetary policy can have real effects along the
 transition path as long as the intertemporal elasticity of substitution is
 not equal to one. In the second part of this paper, it is shown how these
 results also depend on the elasticity of substitution between factors of
 production. The results give some important insights into possible
 interactions between monetary and trade policy in the long and short run.
 The last part of the paper deals with a modified version of the monetary
 growth model, which includes endogenous labour supply as in Klump (1993)
 or Barro and Sala-i-Martin (1995). In this context, international trade,
 by increasing the elasticity of substitution, leads to lower domestic
 employment in the long run whereas monetary policy may be able to increase
 employment at least in the short run. Thus, under certain circumstances,
 trade and monetary policy can be regarded as complementary with respect to
 their labour market effects. 
Journal: The Journal of International Trade & Economic Development 
Pages: 411-428 
Issue: 4 
Volume: 10 
Year: 2001 
Keywords: Economic Growth, Monetary Growth Models, International Trade, 
X-DOI: 10.1080/09638190110073787 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110073787 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:4:p:411-428




Template-Type: ReDIF-Article 1.0
Author-Name: Elio Londero 
Author-X-Name-First: Elio 
Author-X-Name-Last: Londero 
Title: Primary-input intensities under alternative measures of rent content 
Abstract:
  Different methods for measuring rent (natural-resource) content have been
 proposed in studies of the primary-input content of trade. In this paper,
 these methods are applied to obtain different industry-level estimates of
 the primary-input contents and the primary-input intensities of
 Argentina's exports of manufactures. The paper then explores the extent to
 which the choice of method affects these results, the classification and
 ranking of activities according to primary-input intensities, and
 Heckscher-Ohlin tests. 
Journal: The Journal of International Trade & Economic Development 
Pages: 429-450 
Issue: 4 
Volume: 10 
Year: 2001 
Keywords: Factor Content, Input-OUTPUT, Rent Content, Natural-RESOURCE Content, Argentina, 
X-DOI: 10.1080/09638190110073796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110073796 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:4:p:429-450




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Barba Navaretti 
Author-X-Name-First: Giorgio Barba 
Author-X-Name-Last: Navaretti 
Author-Name: Anna Falzoni 
Author-X-Name-First: Anna 
Author-X-Name-Last: Falzoni 
Author-Name: Alessandro Turrini 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Turrini 
Title: The decision to invest in a low-wage country: Evidence from Italian textiles and clothing multinationals 
Abstract:
  In this paper we investigate the firm-specific factors that account for
 the decision to invest in low-wage countries on the part of Italian firms
 in the textiles and clothing sector. This analysis is motivated by the
 fact that our survey data show, between 1990 and 1997, a decline of
 average employment in parent companies, while that in subsidiaries grew
 substantially. However, correlation and regression analysis show that
 employment in parent companies that invested in low-wage countries only
 seems to be negatively related with employment abroad. Our hypothesis is
 that investments in cheap labour countries are mainly cost-driven and are
 undertaken by firms that focus on a low-quality, low-cost strategy. We
 test this hypothesis through a probit analysis. The evidence suggests that
 investments to cheap labour countries are more likely to be of a vertical
 type, being relatively more labour-intensive compared with the parent
 company. Our hypothesis seems to be confirmed empirically. Investments in
 low-wage countries are more likely to generate abundant intra-firm trade
 and to be undertaken by firms with low shares of skilled employment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 451-470 
Issue: 4 
Volume: 10 
Year: 2001 
Keywords: Foreign Direct Investment, Production Relocation, Product Differentiation, 
X-DOI: 10.1080/09638190110074588 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110074588 
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Handle: RePEc:taf:jitecd:v:10:y:2001:i:4:p:451-470




Template-Type: ReDIF-Article 1.0
Author-Name: Phillip McCalman 
Author-X-Name-First: Phillip 
Author-X-Name-Last: McCalman 
Title: National patents, innovation and international agreements 
Abstract:
  One of the most contentious issues arising from the Uruguay Round of
 trade negotiations was the attempt to harmonize patent policy. However,
 previous theoretical models have failed to provide a clear rationale for
 the coordination of patent policy, indeed they imply that world welfare
 may decline as a result of coordination. This paper argues that the
 conclusions of previous studies have been derived from definitions of
 patents that neglect to specify their duration. As a consequence, the
 monopoly distortion associated with patents has been overemphasized. In
 contrast, this paper models the choice of the hazard of imitation under a
 patent as a policy variable. This allows for a more detailed analysis of
 the determinants of patent policy in an international context, and
 isolates two externalities when countries set patent policy independently.
 These externalities arise from a free-riding incentive (policy
 competition) and the international spillovers from an innovation. Since
 these considerations influence the patent strength in both developed and
 developing countries, patents set on a national basis are inefficient from
 a global perspective. This provides an economic rational for international
 coordination of patent policy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-14 
Issue: 1 
Volume: 11 
Year: 2001 
Keywords: Intellectual Property Rights, Patents, Trade, World Trade Organization, 
X-DOI: 10.1080/09638190110093136 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093136 
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Template-Type: ReDIF-Article 1.0
Author-Name: F. Cabo 
Author-X-Name-First: F. 
Author-X-Name-Last: Cabo 
Title: Towards an ecological technology for global growth in a North-South trade model 
Abstract:
  In a world of rapid and cheap communication, where countries are not
 isolated, ideas and information spread quickly across international
 borders. Technological progress, leading to more efficient productive
 processes, in terms of the required amount of natural resources, seems to
 be the key to overcoming the conflict between environmental concerns and
 economic growth. This paper investigates the relationship between natural
 resources and sustainable economic growth in a North-South trade model. We
 assume that a process of capital transfer from North to South is performed
 in two different scenarios depending on the effect of this transfer upon
 the Southern economy. Within a game theory framework, we characterize the
 optimal paths of global economic growth which respects the sustainable use
 of natural resources. 
Journal: The Journal of International Trade & Economic Development 
Pages: 15-41 
Issue: 1 
Volume: 11 
Year: 2001 
Keywords: North-SOUTH Trade, Endogenous Growth, Renewable Resources, Sustainable Economic Growth, Differential Games, 
X-DOI: 10.1080/09638190110093165 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093165 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:1:p:15-41




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvia Gottschalk 
Author-X-Name-First: Sylvia 
Author-X-Name-Last: Gottschalk 
Title: Can market size outweigh adverse comparative advantage? 
Abstract:
  This paper investigates the roles of comparative advantage and market
 size in the international location of manufacturing production. Building
 on the conventional Helpman and Krugman (1985) general equilibrium
 framework, our analysis extends the present literature by incorporating
 both effects in the same model, while allowing trade costs to vary almost
 continuously from autarky to free trade. The main result of our exercise
 is that market size effects offset comparative advantage if countries have
 similar factor proportions. A large country with a slight comparative
 disadvantage in manufacturing production may thus be a net exporter of
 manufactures. A small country with the same comparative disadvantage would
 be a net importer of manufactures. When countries are very dissimilar in
 their relative factor endowments, land-abundant countries specialize in
 the production of food, irrespective of market size, if manufactures are a
 labour-intensive sector. Labour-rich countries of any size are manufacture
 cores. However, land-abundant countries with large markets can sustain a
 domestic manufacturing industry until trade costs are very low, and in
 some cases only specialize in agriculture at free trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 43-61 
Issue: 1 
Volume: 11 
Year: 2001 
Keywords: Trade Liberalization, Market Size, Factor Proportions, Location Of Industries, Comparative Advantage, Market Access, 
X-DOI: 10.1080/09638190110093154 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093154 
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Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Emerson 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Emerson 
Title: Corruption and industrial dualism in less developed countries 
Abstract:
  This paper provides an explanation for the observation that developing
 countries tend to have a higher degree of dualism in the size distribution
 of firms and a relatively smaller proportion of large firms than do
 developed countries. This paper builds a model where large 'formal' firms
 attract rent seeking activities from the government while small firms do
 not. In the model, there exists a 'competitive fringe' of small firms and
 a formal market consisting of Cournot competitors. The number of formal
 firms is made endogenous and is a function of the degree to which the
 government can extract rents. This ability to extract rents is itself
 posited as a function of the degree of corruption in a country's
 government. Thus, it is the high degree of corruption in developing
 country governments that contributes to the dual nature of their
 industrial structure. The model predicts that the higher the degree of
 corruption, the fewer (and larger) are the formal firms, the lower is
 social welfare and the greater is dead-weight loss, and the higher are
 government rents. An examination of the size distribution of 16 countries
 and their degree of corruption shows that the degree of corruption is a
 good predictor of the percentage of large firms in an economy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 63-76 
Issue: 1 
Volume: 11 
Year: 2001 
Keywords: Corruption, Rent Seeking, Firm Size, Developing Countries, Cournot, 
X-DOI: 10.1080/09638190110093163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093163 
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Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Callen 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Callen 
Author-Name: Paul Cashin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Cashin 
Title: Capital controls, capital flows and external crises: evidence from India 
Abstract:
  Despite the widespread use of capital controls, India has experienced
 several balance of payments crises. This paper examines the solvency and
 sustainability of India's external imbalances and analyses the optimality
 of its capital flows. We use two approaches: an intertemporal model of the
 current account that allows for capital controls, and a composite model of
 macroeconomic indicators that yields probabilities of future balance of
 payments crises. The results indicate that India's intertemporal budget
 constraint is satisfied and that the path of its current account
 imbalances is sustainable, with some support for the optimality (given
 capital controls) of its external borrowing. 
Journal: The Journal of International Trade & Economic Development 
Pages: 77-98 
Issue: 1 
Volume: 11 
Year: 2001 
Keywords: Capital Controls, External Sustainability, Balance Of Payments Crises, India, 
X-DOI: 10.1080/09638190110093172 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093172 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:1:p:77-98




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Federici 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Federici 
Author-Name: Giancarlo Gandolfo 
Author-X-Name-First: Giancarlo 
Author-X-Name-Last: Gandolfo 
Title: Chaos and the exchange rate 
Abstract:
  Chaotic exchange rate models are structural models built in discrete time
 (difference equations), and show that with orthodox assumptions (PPP,
 interest parity, etc) and introducing plausible nonlinearities in the
 dynamic equations, it is possible to obtain a model capable of giving rise
 to chaotic motion. However, none of these models is estimated, and the
 conclusions are based on simulations: the empirical validity of these
 models is not tested. In this paper, a continuous time (the exchange rate
 is obviously a continuous variable) exchange rate model is built as a
 non-linear set of three differential equations and its theoretical
 properties (steady state, stability, etc,) analysed. The model is then
 econometrically estimated in continuous time with Italian data and
 examined for the possible presence of chaotic motion. This paper also
 shows that the continuous time estimation of economic models built as
 systems of nonlinear differential equations is a very powerful tool in the
 hands of the profession. 
Journal: The Journal of International Trade & Economic Development 
Pages: 111-142 
Issue: 2 
Volume: 11 
Year: 2001 
Keywords: Chaos, Exchange Rate, Continuous Time Econometrics, 
X-DOI: 10.1080/09638190010110712 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010110712 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:2:p:111-142




Template-Type: ReDIF-Article 1.0
Author-Name: Aditya Bhattacharjea 
Author-X-Name-First: Aditya 
Author-X-Name-Last: Bhattacharjea 
Title: Foreign entry and domestic welfare: lessons for developing countries 
Abstract:
  This paper examines the effects of foreign entry, in the form of either
 imports or direct foreign investment, into an oligopolistic market.
 Incorporating a possible divergence between private and social costs, it
 first derives simple conditions under which foreign entry reduces welfare
 relative to autarky. Then, in a multi-firm Cournot model with linear
 demand and international cost asymmetries, it shows that foreign entry
 reduces welfare unless it captures a very large share of the home market.
 However, it also shows that an optimal tariff can prevent this welfare
 decline. Some suggestive empirical evidence and extensions to
 differentiated products and to merger analysis are offered. The paper
 concludes with implications for trade and investment liberalization, as
 well as for domestic and international competition policy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 143-162 
Issue: 2 
Volume: 11 
Year: 2001 
Keywords: Direct Foreign Investment, Optimal Tariff, Oligopoly, Trade Liberalization, Strategic Trade Policy, 
X-DOI: 10.1080/09638190010110721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010110721 
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Template-Type: ReDIF-Article 1.0
Author-Name: Maria-Jesus Asensio 
Author-X-Name-First: Maria-Jesus 
Author-X-Name-Last: Asensio 
Author-Name: Eva Pardos 
Author-X-Name-First: Eva 
Author-X-Name-Last: Pardos 
Title: Trade policy and Spanish specialization, 1978-93 
Abstract:
  This article uses a simplified general equilibrium model to analyse the
 short and long run incidence of trade policy in Spain between 1978 and
 1993. The incidence model is usually specified in an inter-industry
 framework, with increasing tariffs and either increasing or non-existent
 export subsidies. However, in this paper it is applied in a period of
 rapid liberalisation and with an intra-industry pattern of trade. The
 results, based on seasonal integration and cointegration techniques, show
 that, in the long run, the prices of exportables relative to non-tradables
 followed the fall in prices of import-competing goods. Hence, the effect
 of the liberalization process that took place in Spain during this period
 was precisely the intended one - that is to say, the enhancement of the
 competitiveness of the tradable sector as a whole. The slow reaction on
 the part of suppliers in shifting production from importables to
 exportables resulted in a certain gap between relative prices of tradables
 only in the short-run. In the end, the effect of trade policy was to
 create incentives for the reallocation of resources to the production of
 non-tradables. 
Journal: The Journal of International Trade & Economic Development 
Pages: 163-187 
Issue: 2 
Volume: 11 
Year: 2001 
Keywords: Spanish Trade Policy, Incidence Of Protection, Opening-UP Of Markets, 
X-DOI: 10.1080/09638190010110730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010110730 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:2:p:163-187




Template-Type: ReDIF-Article 1.0
Author-Name: Kam-Ki Tang 
Author-X-Name-First: Kam-Ki 
Author-X-Name-Last: Tang 
Title: The role of entrepOt trade in the choice of a nominal anchor for Hong Kong 
Abstract:
  This paper adds a new perspective to the literature of monetary standard
 by establishing a link between re-exports and the choice of nominal
 anchor. The model developed is applied to address the controversy over the
 US dollar versus the renminbi as the nominal anchor for Hong Kong, in the
 context of its considerable amount of entrepOt trade with the US and
 China. It is found that the distinct trade structure of the US-Hong
 Kong-China triangle significantly reduces Hong Kong's opportunity cost of
 choosing between the two currencies, its nominal anchor. 
Journal: The Journal of International Trade & Economic Development 
Pages: 189-206 
Issue: 2 
Volume: 11 
Year: 2001 
Keywords: Entrepot Trade, Re-EXPORTS, Nominal Anchor, Exchange Rate Regime, 
X-DOI: 10.1080/09638190010110749 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010110749 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kul Bhatia 
Author-X-Name-First: Kul 
Author-X-Name-Last: Bhatia 
Title: Specific and mobile capital, migration and unemployment in a Harris-Todaro model 
Abstract:
  Specific- and mobile-capital versions of the Harris-Todaro model are
 compared in a simple algebraic formulation. The former focuses on wage
 elasticity of demand in the minimum-wage ( M ) sector ( m M ), whereas the
 latter also considers elasticities of substitution ( &#x2020; s). By
 relating m M and &#x2020; M , similarities between the conclusions of the
 two models can be clearly obse M rved and M many of them can be restated
 as exogenous conditions on the substitution elasticities. A single
 &#x2020; , for which econometric estimates are readily available, can
 drive some key results. Elasticity of substitution in the non-minimum-wage
 sector, which is rarely discussed in the literature because of its
 emphasis on the minimum-wage sector, plays an important part. Among the
 new results, in the mobile-capital formulation, 'large' values of this
 elasticity ( &#x2020; A , for which precise, quantifiable expressions are
 derived) are sufficient to cause outmigration from the M -sector when the
 minimum wage is increased, irrespective of &#x2020; M and m M . Numerical
 examples from a computable general equilibrium model for Mexico
 illustrate, and in some cases flesh out, some analytical propositions for
 both versions of the HT model in a small open economy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 207-222 
Issue: 2 
Volume: 11 
Year: 2001 
Keywords: Harris-TODARO, Migration, Empirical Results, Computable General Equilibrium, 
X-DOI: 10.1080/09638190010110758 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190010110758 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nord&#x212b;s 
Author-X-Name-First: Hildegunn Kyvik 
Author-X-Name-Last: Nord&#x212b;s 
Title: Patterns of foreign direct investment in poor countries 
Abstract:
  This paper introduces endogenous adoption costs for productive assets in
 a Ramsey-type growth model with international capital flows. There are two
 classes of productive assets: owner-specific and location-specific.
 Adoption costs are an increasing function of the level of technology
 embodied in the investor's owner-specific assets and a declining function
 of the host country's location-specific assets. In this setting, the
 observed pattern of international capital flows is consistent with
 diminishing returns to capital. Further, our model predicts that the
 sectoral allocation of foreign direct investment is similar in rich and
 poor countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 247-265 
Issue: 3 
Volume: 11 
Year: 2001 
Keywords: Foreign Direct Investment, Economic Growth, Industrial Structure, Adoption Costs, 
X-DOI: 10.1080/09638190210151392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190210151392 
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Template-Type: ReDIF-Article 1.0
Author-Name: Cem Karayalcin 
Author-X-Name-First: Cem 
Author-X-Name-Last: Karayalcin 
Author-Name: Kathryn McCollister 
Author-X-Name-First: Kathryn 
Author-X-Name-Last: McCollister 
Author-Name: Devashish Mitra 
Author-X-Name-First: Devashish 
Author-X-Name-Last: Mitra 
Title: Infrastructure, returns to scale and sovereign debt 
Abstract:
  This paper explores the nexus between the issue of sovereign debt and
 investment in infrastructure, emphasizing the case of economies of scale.
 The focus is on debt contracts that are incentive compatible. It is shown
 that public and private financial institutions may need to lend amounts
 above some threshold to force the borrowing sovereign to take full
 advantage of any economies of scale that may be present. Low levels of
 lending may or may not result in default. Sufficiently high amounts of
 lending may be needed to ensure repayment and may prove to be mutually
 beneficial. 
Journal: The Journal of International Trade & Economic Development 
Pages: 267-278 
Issue: 3 
Volume: 11 
Year: 2001 
Keywords: Infrastructure, Returns To Scale, Sovereign Debt, 
X-DOI: 10.1080/09638190210151400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190210151400 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:3:p:267-278




Template-Type: ReDIF-Article 1.0
Author-Name: Soamiely Andriamananjara 
Author-X-Name-First: Soamiely 
Author-X-Name-Last: Andriamananjara 
Title: On the size and number of preferential trading arrangements 
Abstract:
  This paper uses a multi-country political economy model to investigate
 the possibility of achieving global free trade through the expansion of
 Preferential Trading Arrangements (PTAs). It is shown that bloc expansion
 would result in global free trade if blocs have an open membership.
 However, that would not be the case if membership were selective: at some
 point, the members of the bloc would stop accepting new members and this
 would lead to the creation of a second bloc. The likelihood of such a
 second bloc would make the members of the first bloc choose a larger bloc
 size than they would have chosen if only one bloc was allowed to form. 
Journal: The Journal of International Trade & Economic Development 
Pages: 279-295 
Issue: 3 
Volume: 11 
Year: 2001 
Keywords: Ptas, Regionalism, Multilateralism, Political Economy, 
X-DOI: 10.1080/09638190210151419 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190210151419 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:3:p:279-295




Template-Type: ReDIF-Article 1.0
Author-Name: Bertrand Wigniolle 
Author-X-Name-First: Bertrand 
Author-X-Name-Last: Wigniolle 
Title: Fertility, intergenerational transfers and economic development 
Abstract:
  This paper develops a model of endogenous growth where agents are
 altruistic and value both the utilities of their parent and of their
 children. Individuals endogenously choose the number of their children,
 and arbitrate between financing education, leaving them some bequest and
 offering some gift to their parents. We establish the existence of three
 types of long run regime. Starting from a low level of human capital, an
 economy converges towards a stationary state associated with a constant
 output per worker, a high level of fertility and ascendant transfers. If
 the initial level of human capital is not too low, another stationary
 state jointly exists with a lower level of fertility and no transfer.
 Finally, starting from a high level of human capital, the economy
 experiences a steady growth of output per worker associated with a low
 fertility level and descendant transfers. We then assume that an economy
 is initially in the stationary underdevelopment regime with ascendant
 transfers, and we study the power of different policies to push the
 economy toward the growth regime. We successively consider a fertility
 control policy, an education subsidies policy, and the introduction of a
 pension system for the elderly. 
Journal: The Journal of International Trade & Economic Development 
Pages: 297-321 
Issue: 3 
Volume: 11 
Year: 2001 
Keywords: Endogenous Fertility, Two-SIDED Altruism, Growth, 
X-DOI: 10.1080/09638190210158593 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190210158593 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:3:p:297-321




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Federici 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Federici 
Author-Name: Daniela Marconi 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Marconi 
Title: On exports and economic growth: the case of Italy 
Abstract:
  The export-led growth hypothesis for the Italian economy (1960-98) is
 tested through a VAR model with four macroeconomic variables: an index of
 the GDP of the rest of the world; the Italian real exchange rate; Italian
 real exports; and the Italian real GDP. Our results provide clear
 empirical support for the hypothesis. They also suggest that the Kaldorian
 approach is very useful in analysing short-run as well as long-run growth
 and fluctuations of an open economy such as Italy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 323-340 
Issue: 3 
Volume: 11 
Year: 2001 
Keywords: Exports, Economic Growth, Cointegrated, Var Model, Innovation Accounting, 
X-DOI: 10.1080/09638190210151428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190210151428 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:3:p:323-340




Template-Type: ReDIF-Article 1.0
Author-Name: Karel Janda 
Author-X-Name-First: Karel 
Author-X-Name-Last: Janda 
Title: Signalling and underutilization of import quota 
Abstract:
  This study introduces an information asymmetry regarding the foreign
 exporter's cost in a strategic trade model. We show that it is possible to
 use import quotas or voluntary export restraints as a signal of the
 strength of the foreign exporter who enters into a previously protected
 domestic market. Our model provides a possible explanation for the
 underutilization of import quotas that is consistent with rational
 behaviour on the part of importing and exporting countries. Under the
 assumption that the exporter's marginal cost of securing the import quota
 is sufficiently low the underutilization of an import quota is an
 equilibrium result. 
Journal: The Journal of International Trade & Economic Development 
Pages: 351-365 
Issue: 4 
Volume: 11 
Year: 2001 
Keywords: Import Quota, Voluntary Export Restraint, Signalling, Oligopoly, 
X-DOI: 10.1080/0963819022000014285 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014285 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:351-365




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Gao 
Author-X-Name-First: Ting 
Author-X-Name-Last: Gao 
Title: The impact of foreign trade and investment reform on industry location: the case of China 
Abstract:
  The open-door policy adopted in China, through its preferential
 treatments that consistently favour south-east coastal provinces, has
 resulted in the geographic concentration of foreign trade and investment.
 This paper provides evidence at both the aggregate and disaggregate levels
 that the south-east coast of China experienced much higher rates of
 industrial growth during 1985-98, indicating a geographic shift in
 industry towards this region. Empirical results using provincial-level
 data show a clear positive link between inward foreign direct investment
 (FDI) and regional industrial growth, especially after 1991 when the
 volume of FDI took off. This implies a significant impact of China's
 foreign trade and investment reforms on industry location. 
Journal: The Journal of International Trade & Economic Development 
Pages: 367-386 
Issue: 4 
Volume: 11 
Year: 2001 
Keywords: Foreign Direct Investment, Industry Location, Regional Growth, 
X-DOI: 10.1080/0963819022000014276 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014276 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:367-386




Template-Type: ReDIF-Article 1.0
Author-Name: Jimmy Torrez 
Author-X-Name-First: Jimmy 
Author-X-Name-Last: Torrez 
Title: The effect of openness on corruption 
Abstract:
  The seminal paper on the subject of corruption and trade is from Kruger
 (1974). She finds that quantitative trade restrictions shift resources
 from directly productive activities to rent seeking activities, such as
 corruption. This paper analyses the relationship between corruption and
 trade using corruption estimates and trade measures from multiple sources.
 The majority of empirical evidence supports a negative relationship
 between corruption and openness; however, this does not hold for all the
 data sets available. The estimated relationship seems to depend on the
 choice of the corruption index. Therefore, the data only provide weak
 support for the contention that trade restrictions increase corruption. 
Journal: The Journal of International Trade & Economic Development 
Pages: 387-403 
Issue: 4 
Volume: 11 
Year: 2001 
Keywords: Corruption, Openness, International Trade, 
X-DOI: 10.1080/0963819022000014267 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014267 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:387-403




Template-Type: ReDIF-Article 1.0
Author-Name: Yingfeng Xu 
Author-X-Name-First: Yingfeng 
Author-X-Name-Last: Xu 
Title: A comparison of two models of intra-industry trade 
Abstract:
  A direct comparison is made between two models of intra-industry trade:
 the love-of-varieties model and the Armington model. The former is a
 textbook model that is theoretically appealing, but seldom used in applied
 studies of trade policy. The latter has been widely used in CGE modelling,
 but is barely mentioned in textbooks. We find that what really
 differentiates the two models empirically is not the incorporation of
 increasing returns and monopolistic competition, but the elasticity of
 substitution between domestic and foreign differentiated products. The
 Armington model with an infinite elasticity of substitution can mimic the
 love-of-varieties model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 405-427 
Issue: 4 
Volume: 11 
Year: 2001 
Keywords: Intra-INDUSTRY Trade, Armington Model, Love-OF-VARIETIES Model, 
X-DOI: 10.1080/0963819022000014258 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014258 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:405-427




Template-Type: ReDIF-Article 1.0
Author-Name: Joakim Gullstrand 
Author-X-Name-First: Joakim 
Author-X-Name-Last: Gullstrand 
Title: Demand patterns and vertical intra-industry trade with special reference to North-South trade 
Abstract:
  Demand patterns have been considered important driving forces of
 intra-industry trade (IIT) ever since the emergence of IIT literature. The
 distribution of income within countries and per capita income differences
 between countries are regarded as major explanatory factors behind
 vertical IIT. This paper focuses on North-South trade, and we are
 particularly interested in the role of income distribution and per capita
 income as demand-side determinants of vertical IIT. We test hypotheses on
 differences in income distribution, differences in per capita income, and
 average market size in two different empirical approaches; an
 economy-wide, and a multi-industry approach. The results show evidence of
 the role of income distribution and per capita income, that there is an
 important interaction between these two variables, and that the average
 market size matters. 
Journal: The Journal of International Trade & Economic Development 
Pages: 429-455 
Issue: 4 
Volume: 11 
Year: 2001 
Keywords: Vertical Intra-INDUSTRY Trade, North-SOUTH Trade, European Union, 
X-DOI: 10.1080/0963819022000014249 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014249 
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Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:429-455




Template-Type: ReDIF-Article 1.0
Author-Name: Robin Naylor 
Author-X-Name-First: Robin 
Author-X-Name-Last: Naylor 
Author-Name: Michele Santoni 
Author-X-Name-First: Michele 
Author-X-Name-Last: Santoni 
Title: Foreign direct investment and wage bargaining 
Abstract:
  We derive the sub-game perfect Nash equilibria for the foreign direct
 investment (FDI) game played between two unionized firms. We show that FDI
 is less likely, ceteris paribus, the greater is union bargaining power and
 the more substitutable are the firms' products in the potential host
 country. We also examine the conditions under which the FDI game between
 firms will possess the characteristics of a Prisoners' Dilemma. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-18 
Issue: 1 
Volume: 12 
Year: 2003 
Keywords: Foreign direct investment, oligopoly, wage bargaining, 
X-DOI: 10.1080/0963819032000049178 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000049178 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:1:p:1-18




Template-Type: ReDIF-Article 1.0
Author-Name: Ying Kong 
Author-X-Name-First: Ying 
Author-X-Name-Last: Kong 
Title: Persistent dumping, competition and welfare 
Abstract:
  In the case of persistent dumping, welfare effects are ambiguous.
 Therefore, the existing international trade theory cannot provide a clear
 rationale for policies to prohibit international price discrimination.
 Through a two-stage game on the endogenous foreign monopolist's dumping
 decision, this paper determines when persistent dumping will negatively
 affect the home country's total welfare in an oligopolistic domestic
 market in the absence of any anti-dumping duties. Key variables of
 interest in this research include: (i) production costs; (ii) the degree
 of substitutability among the products; and (iii) the number of domestic
 firms. With a linear demand and constant marginal cost functions, the
 model demonstrates that persistent dumping will reduce total welfare if
 the domestic market is relatively less concentrated, or if the products
 are close substitutes for each other. 
Journal: The Journal of International Trade & Economic Development 
Pages: 19-37 
Issue: 1 
Volume: 12 
Year: 2003 
Keywords: International trade, trade policy, market structure, international price discrimination, 
X-DOI: 10.1080/0963819032000049169 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000049169 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:1:p:19-37




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Lewer 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Lewer 
Author-Name: Hendrik Van den Berg 
Author-X-Name-First: Hendrik Van den 
Author-X-Name-Last: Berg 
Title: Does trade composition influence economic growth? Time series evidence for 28 OECD and developing countries 
Abstract:
  This paper is an empirical test of the hypothesis suggested by Mazumdar
 (1996), namely, that the composition of trade determines the strength of
 the 'engine of growth'. Mazumdar suggested that, within the framework of
 the Solow model, the composition of trade affects the medium-run
 transition to the steady state. The composition of trade matters because
 the price of capital is affected by whether a country exports or imports
 capital goods. Using unpublished SITC data, we create two international
 trade composition variables to test this hypothesis for 28 developed and
 developing countries. We test single-equation, simultaneous-equations, and
 panel data models with time-series data. All modern time-series procedures
 are rigorously applied. The results are supportive of the hypothesis;
 countries that import mostly capital goods and export consumer goods tend
 to grow faster than countries that export capital goods. There are
 important implications for developing countries. By focusing on their
 comparative advantage in producing labour-intensive consumer goods,
 developing countries will enhance their economic growth more than
 conventional models suggest. In addition, ceteris paribus, developing
 labour-abundant and consumer goods-exporting economies will grow faster
 than developed capital good exporters. 
Journal: The Journal of International Trade & Economic Development 
Pages: 39-96 
Issue: 1 
Volume: 12 
Year: 2003 
Keywords: International trade, composition of trade, economic growth, trade and growth, Solow model, time-series analysis, 
X-DOI: 10.1080/0963819032000049150 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000049150 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:1:p:39-96




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Federici 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Federici 
Title: Migration, Unemployment and Trade 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 97-99 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963819032000049141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000049141 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:1:p:97-99




Template-Type: ReDIF-Article 1.0
Author-Name: Jayoti Das 
Author-X-Name-First: Jayoti 
Author-X-Name-Last: Das 
Author-Name: Stephen DeLoach 
Author-X-Name-First: Stephen 
Author-X-Name-Last: DeLoach 
Title: Strategic trade policy in the presence of reputation spillovers 
Abstract:
  With the emergence of North-South intra-industry trade in products where
 consumers value quality, exporting countries potentially face significant
 barriers to entry. Due to the existence of asymmetric information about
 new products in a foreign market, the producer's reputation becomes an
 important factor in determining whether consumers choose to make a
 purchase. The purpose of this paper is to add learning externalities
 across multiple products to a model of endogenous firm entry and quality
 in order to examine the implications for commercial intervention. Building
 on the work of Mayer (1984) and Grossman and Horn (1988), we introduce
 learning across multiple products in the presence of incomplete
 information. If the reputation of the initial entrants from a country is
 poor, it raises the informational barriers to entry. Consequently,
 strategic trade policy depends on both the quality choice of firms
 entering the market for exports as well as the degree of product
 interrelatedness. In the presence of high and lowquality producers,
 across-the-board subsidization hinders rather than promotes exports in
 developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 101-116 
Issue: 2 
Volume: 12 
Year: 2003 
Keywords: Asymmetric information, reputation, product quality, commercial policy, 
X-DOI: 10.1080/0963819032000084340 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000084340 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:2:p:101-116




Template-Type: ReDIF-Article 1.0
Author-Name: Howard Shatz 
Author-X-Name-First: Howard 
Author-X-Name-Last: Shatz 
Title: Gravity, education, and economic development in a multinational affiliate location 
Abstract:
  This paper investigates the relationship between education and the
 location of multinational affiliates. It finds that US multinationals seek
 production locations with high levels of education rather than with
 uneducated labour. Furthermore, the education effect can be separated from
 the effects of overall economic development. Based on these results, the
 paper suggests why previous results regarding education and multinational
 affiliate location have been mixed. Using a gravity equation framework,
 the analysis also introduces a methodological innovation by including
 numerous economies that receive no investment. The expanded data set
 reveals that about two-thirds of the variation in multinational location
 can be explained by the standard gravity variables of host country size,
 transport costs, distance from the investing country, and host country
 remoteness. Furthermore, the elasticities are higher than those resulting
 from the analysis of the more restricted country samples used in nearly
 all research on multinationals. This suggests that previous research might
 have missed or underestimated relationships and may not be useful in
 understanding why some countries receive little or no multinational
 investment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 117-150 
Issue: 2 
Volume: 12 
Year: 2003 
Keywords: Multinational location, education, economic development, FDI, gravity models, factor analysis, 
X-DOI: 10.1080/0963819032000084368 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000084368 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:2:p:117-150




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Waldkirch 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Waldkirch 
Title: The 'new regionalism' and foreign direct investment: the case of Mexico 
Abstract:
  The recent increase in foreign capital flows into developing countries
 has coincided with a new wave of regional trade agreements involving both
 developed and developing countries. This paper investigates the effect of
 the NorthAmerican Free TradeAgreement (NAFTA), a prime example of this new
 regionalism, on foreign direct investment in Mexico. Using data from the
 Mexican Ministry for Trade and Industrial Development (SECOFI), the major
 finding is that NAFTA has raised investment from the partner countries,
 the United States and Canada, but not from the rest of theworld. The
 increasing use of outsourcing and a commitment effect conveyed by the
 agreement are candidate explanations for a change in investors'
 sensitivity to the determinants of foreign direct investment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 151-184 
Issue: 2 
Volume: 12 
Year: 2003 
Keywords: Foreign direct investment, economic integration, Mexico, NAFTA, 
X-DOI: 10.1080/0963819032000084313 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000084313 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:2:p:151-184




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Gerrard 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Gerrard 
Author-Name: Robert Lucas 
Author-X-Name-First: Robert 
Author-X-Name-Last: Lucas 
Author-Name: Tom Porter 
Author-X-Name-First: Tom 
Author-X-Name-Last: Porter 
Title: Monetary policy in developing countries: lessons from Kenya 
Abstract:
  We estimate and then simulate a model of Kenyan economic development from
 1965 to 1997 with two objectives in mind. The first is to demonstrate the
 degree of volatility of cyclical shocks that developing countries
 experience and to calculate the domestic nominal adjustments required by
 these shocks under both irrevocably fixed and free exchange rates.A
 comparison of these counterfactual nominal adjustments identifies the
 short-run implications for an economy of the choice of exchange rate
 regime. The second objective is to provide an estimate of the consequences
 for the economic development of Kenya of the lack of a coherent monetary
 order (excessive domestic credit expansion and overvalued exchange rate)
 throughout most of the period since 1965.A neoclassical convergence growth
 model based on Barro and Sala-i-Martin (1992) is employed and calibrated
 to represent the long-run growth path of real GDP in Kenya. A short-run
 four-sector CGE model is constructed that allows for cyclical movements of
 real GDP about the convergence growth path. The cyclical model focuses on
 the adjustment of the relative price of non-traded goods that is required
 to ensure short-run equilibrium in the non-traded goods sector. Given that
 terms of trade shocks dominated the macro environment of Kenya over the
 sample period, we find that a free exchange rate regime would have
 insulated the economy to a greater degree than an irrevocably fixed
 regime. In the growth decomposition exercise, we estimate that the two
 largest (and negative) influences on Kenyan economic growth were the
 decline in the external terms of trade from 100 in 1965 to an average of
 79.5 over the 32-year time period, and the overvalued Kenyan shilling
 represented by a premium on the parallel market for foreign exchange.
 Overall, we estimate that the overvalued exchange rate reduced economic
 growth by an average of 0.47 per cent per annum over the 32 years. 
Journal: The Journal of International Trade & Economic Development 
Pages: 185-216 
Issue: 2 
Volume: 12 
Year: 2003 
Keywords: Free, Fixed, Overvalued Exchange Rates, Monetary Policy, CGE Model, Developing Countries, 
X-DOI: 10.1080/0963819032000084359 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000084359 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:2:p:185-216




Template-Type: ReDIF-Article 1.0
Author-Name: Herbert Grubel 
Author-X-Name-First: Herbert 
Author-X-Name-Last: Grubel 
Title: Going Alone: The Case for Relaxed Reciprocity in Freeing Trade 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 217-224 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963819032000084322 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000084322 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:2:p:217-224




Template-Type: ReDIF-Article 1.0
Author-Name: Elio Londero 
Author-X-Name-First: Elio 
Author-X-Name-Last: Londero 
Title: Trade liberalization and adjustment in Argentina 
Abstract:
  This paper looks at trade liberalization attempts in Argentina since
 1970, with particular attention to the 1991&#x200a;-&#x200a;98 period,
 estimates the size of the adjustments required by the changes in the trade
 regimes, and looks at the degree of adjustment attained as manifested by
 the real effective exchange rate. 
Journal: The Journal of International Trade & Economic Development 
Pages: 225-246 
Issue: 3 
Volume: 12 
Year: 2003 
Keywords: Trade, trade liberalization, adjustment, real exchange rate, Argentina, 
X-DOI: 10.1080/0963819032000132094 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000132094 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:3:p:225-246




Template-Type: ReDIF-Article 1.0
Author-Name: Hisashi Hokari 
Author-X-Name-First: Hisashi 
Author-X-Name-Last: Hokari 
Author-Name: Hong Hwang 
Author-X-Name-First: Hong 
Author-X-Name-Last: Hwang 
Author-Name: Hiroshi Ohta 
Author-X-Name-First: Hiroshi 
Author-X-Name-Last: Ohta 
Title: Import tariff upstream versus export tax downstream: are they welfare equivalent? 
Abstract:
  Along the lines of the strategic trade policy inquiry under vertical
 structures we show that two rival governments may select different rates
 of export subsidies and import tariffs respectively upon their own
 industries even if their marginal costs are identical. Moreover,
 regardless of any combination of these policy instruments optimally
 introduced, we show that each nation's welfare level will remain the same
 and higher than that under free trade with no trade policy at all. 
Journal: The Journal of International Trade & Economic Development 
Pages: 247-256 
Issue: 3 
Volume: 12 
Year: 2003 
Keywords: Strategic trade policy, vertical structure, import tariff, export subsidy, 
X-DOI: 10.1080/0963819032000132085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000132085 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:3:p:247-256




Template-Type: ReDIF-Article 1.0
Author-Name: Izani Ibrahim 
Author-X-Name-First: Izani 
Author-X-Name-Last: Ibrahim 
Author-Name: Craig MacPhee 
Author-X-Name-First: Craig 
Author-X-Name-Last: MacPhee 
Title: Export externalities and economic growth 
Abstract:
  Feder formulated the first model with an explicit mechanism connecting
 international trade and economic growth. We present new econometric
 estimates of this unique model for 30 developing countries studied by
 Feder. We replicate Feder's 1964&#x200a;-&#x200a;73 cross-section
 estimates for 1974&#x200a;-&#x200a;83 and 1984&#x200a;-&#x200a;93 and find
 that the export variables lose significance and that the model has less
 explanatory power overall. We also try to improve on time-series estimates
 by Ram and find that the coefficient of Feder's total factor productivity
 differential in favour of the export sector was positive and significant
 for 18 of the 30 countries. The export externality coefficient proved to
 be positive and significant in 13 countries although significant
 multicollinearity occurs in the regressions for eight of the 13.
 Comparisons of the results among countries suggest that the impact of
 exports on growth depends on population size, trade orientation, and the
 importance of manufacturing. 
Journal: The Journal of International Trade & Economic Development 
Pages: 257-283 
Issue: 3 
Volume: 12 
Year: 2003 
Keywords: Exports, economic growth, 
X-DOI: 10.1080/0963819032000132076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000132076 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:3:p:257-283




Template-Type: ReDIF-Article 1.0
Author-Name: Munisamy Gopinath 
Author-X-Name-First: Munisamy 
Author-X-Name-Last: Gopinath 
Author-Name: Weiyan Chen 
Author-X-Name-First: Weiyan 
Author-X-Name-Last: Chen 
Title: Foreign direct investment and wages: a cross-country analysis 
Abstract:
  While globalization has led to overall economic growth in a number of
 countries, questions abound on its distributional effects, especially on
 rising wage inequality across nations. The main objective of this study is
 to investigate empirically the effects of foreign direct investment (FDI)
 on wages in a cross-country setting. We investigate the general
 equilibrium propositions that capital inflows (outflows) increase (lower)
 wages in host (home) countries due to the change in relative factor
 endowments. We also explore whether capital inflows have differential
 impacts on skilled and unskilled wages in developing economies.
 Time-series data on 26 countries, 15 developed and 11 developing, are used
 to fit the labour share equation derived from a translog GNP function with
 net FDI stock as one of its arguments. Results confirm that capital
 movement brings about a cross-country convergence of wages. However, there
 is some evidence that inward FDI flows increase the wage gap between
 skilled and unskilled workers in developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 285-309 
Issue: 3 
Volume: 12 
Year: 2003 
Keywords: Factor prices, foreign direct investment, convergence, 
X-DOI: 10.1080/0963819032000132067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000132067 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:3:p:285-309




Template-Type: ReDIF-Article 1.0
Author-Name: Jurgen Meckl 
Author-X-Name-First: Jurgen 
Author-X-Name-Last: Meckl 
Author-Name: Benjamin Weigert 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Weigert 
Title: Globalization, technical change and the skill premium: magnification effects from human&#x200a;-&#x200a;capital investments 
Abstract:
  This paper shows that endogenous adjustments in the composition of labour
 supplies magnify the effects of changes in commodity prices on the
 measured skill premium under quite plausible conditions. These composition
 effects arise from decisions of individuals with heterogeneous inherent
 abilities about acquiring human capital. They reinforce the well-known
 Stolper&#x200a;-&#x200a;Samuelson effect on the measured skill premium in
 countries with a sufficiently high relative supply of skilled labour, but
 compensate them otherwise. As a result, the model can account for the
 observation of a worldwide increase in the skill premium during the last
 two decades. 
Journal: The Journal of International Trade & Economic Development 
Pages: 319-336 
Issue: 4 
Volume: 12 
Year: 2003 
Keywords: Wage inequality, globalization, technical change, 
X-DOI: 10.1080/0963819032000154784 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000154784 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:319-336




Template-Type: ReDIF-Article 1.0
Author-Name: John Francis 
Author-X-Name-First: John 
Author-X-Name-Last: Francis 
Title: The declining costs of international trade and unemployment 
Abstract:
  A two-country, two-sector new geography model where workers are
 imperfectly monitored is used to examine the relationship between falling
 trade costs and unemployment. It is shown that as trade costs fall over
 time the world naturally falls into an industrialized core and an
 agricultural periphery. Globalization has a positive effect on employment
 in the core in both the short and long term. The periphery suffers
 employment losses in the short term but can gain in the long term. 
Journal: The Journal of International Trade & Economic Development 
Pages: 337-357 
Issue: 4 
Volume: 12 
Year: 2003 
Keywords: Agglomeration, economic geography, efficiency wages, international trade, 
X-DOI: 10.1080/0963819032000154793 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000154793 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:337-357




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Mendez-Carbajo 
Author-X-Name-First: Diego 
Author-X-Name-Last: Mendez-Carbajo 
Author-Name: Dimitrios Thomakos 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Thomakos 
Title: Economic integration, market discipline and productivity growth in Spain 
Abstract:
  This paper explores the changes on productivity growth, economies of
 scale and market discipline experienced by a selected number of Spanish
 manufacturing industries as a result of the 1986&#x200a;-&#x200a;92
 integration of Spain into the European Union. Since the intra-union trade
 liberalization process spanned a seven-year, multi-stage, adhesion period
 we employ a model with a smooth transition variable to account fully for
 its impact. An additional model that uses separate sets of dummy variables
 captures differences in the regression estimates during the transitional
 and liberalized periods. In both model specifications we find strong
 evidence of increases in returns to scale and reductions in producers'
 mark-ups, whereas productivity growth increases are found to be small and
 uneven. 
Journal: The Journal of International Trade & Economic Development 
Pages: 359-375 
Issue: 4 
Volume: 12 
Year: 2003 
Keywords: Economic integration, trade liberalization, mark-ups, productivity, smoothed transition regression, Spain, 
X-DOI: 10.1080/0963819032000154801 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000154801 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:359-375




Template-Type: ReDIF-Article 1.0
Author-Name: John Wilson 
Author-X-Name-First: John 
Author-X-Name-Last: Wilson 
Author-Name: Tsunehiro Otsuki 
Author-X-Name-First: Tsunehiro 
Author-X-Name-Last: Otsuki 
Author-Name: Baishali Majumdsar 
Author-X-Name-First: Baishali 
Author-X-Name-Last: Majumdsar 
Title: Balancing food safety and risk: do drug residue limits affect international trade in beef? 
Abstract:
  There have been a number of high profile food safety disputes in trade
 over the past decade. These include the widely publicized case at the
 World Trade Organization between the US and EU over hormone-treated beef.
 In particular, consumers in some industrialized countries have expressed
 concern over the health implications of consuming beef produced with
 antibiotics and other artificial supplements. Developing countries are
 affected in a significant way in how these concerns are addressed, as well
 as the balance between risk and safety reflected in how standards are set.
 This paper examines the impact of drug residue standards on trade in beef
 and the trade effect of setting harmonized international standards. We
 find that if international standards set by Codex were followed in
 antibiotics, global trade in beef would rise by over $3.2 billion. Among
 other developing countries, South African exports would rise by $160
 million, Brazil's by $200 million, and Argentina's by over $300 million. 
Journal: The Journal of International Trade & Economic Development 
Pages: 377-402 
Issue: 4 
Volume: 12 
Year: 2003 
Keywords: Beef trade, tetracycline standards, gravity model, Codex, antibiotics, food safety, 
X-DOI: 10.1080/0963819032000154810 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000154810 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:377-402




Template-Type: ReDIF-Article 1.0
Author-Name: Sarbajit Chaudhuri 
Author-X-Name-First: Sarbajit 
Author-X-Name-Last: Chaudhuri 
Title: How and how far to liberalize a developing economy with informal sector and factor market distortions 
Abstract:
  Whether a liberalizing developing economy should implement the entire
 WTO-prescribed package, and to what extent this is expedient, are two
 important questions, especially because the available empirical evidence
 suggests that developing countries have been facing substantial adjustment
 costs in their endeavour to implement trade and investment reform. The
 present paper makes a humble effort to provide answers to the above
 questions in terms of a three-sector general equilibrium model with
 informal sectors. Welfare implications of three liberalization policies:
 inflow of foreign capital, tariff reduction and labour market reform, have
 first been analysed in a full-employment framework. Later, the paper has
 been extended into a Harris&#x200a;-&#x200a;Todaro framework with an urban
 informal sector and capital market distortion. We have shown that welfare
 consequences of a tariff reform and/or a policy of deregulating the labour
 market crucially depend on the presence and magnitude of foreign capital
 in the economy. It is argued here that unless a proper choice among
 different prescribed policies, compatible with the internal institutional,
 technological and trade-related characteristics, is made, drastic
 implementation of reform measures may produce counterproductive results
 for the welfare of the relevant country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 403-428 
Issue: 4 
Volume: 12 
Year: 2003 
Keywords: Trade liberalization, general equilibrium, foreign capital, tariff reform, labour market reform, informal sector, non-traded intermediary, 
X-DOI: 10.1080/0963819032000154829 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819032000154829 
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:403-428




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroto Takahashi 
Author-X-Name-First: Hiroto 
Author-X-Name-Last: Takahashi 
Title: Wealth distribution and the underdevelopment trap 
Abstract:
  This paper shows the possibility of the underdevelopment trap with its
 associated wealth distribution. The poor face borrowing constraints when
 they decide to finance their investment. This makes them unable to invest
 in large high-productivity technology, and only allows them to invest in
 small low-productivity technology. There are at least two steady states in
 which the interest rate and wealth distribution are endogenously
 determined. In one steady state, all agents receive an identical and high
 level of wealth, and in another steady state the distribution of wealth
 polarizes to two levels. The per capita average level of wealth and income
 is higher in the former steady state than in the latter one. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-21 
Issue: 1 
Volume: 13 
Year: 2004 
Keywords: Distribution of wealth, trickle down, underdevelopment trap, 
X-DOI: 10.1080/0963819042000213525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000213525 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jayati Bhattacharya 
Author-X-Name-First: Jayati 
Author-X-Name-Last: Bhattacharya 
Author-Name: Ajitava Raychaudhuri 
Author-X-Name-First: Ajitava 
Author-X-Name-Last: Raychaudhuri 
Title: Endogenous growth in a North&#x200a;-&#x200a;South framework with human capital accumulation and technology transfer 
Abstract:
  The purpose of this paper is to study the long run evolution of a world
 economy (divided into a North and a South) and to re-evaluate some
 conventional ideas regarding the inter-relation between the two economies.
 Here, a technologically backward South adopts the Northern technology by
 importing R&D-intensive intermediate inputs from the North. However the
 capability of its technology adoption (shown by the number of varieties of
 intermediate goods it uses) is constrained by its level of human capital.
 The results of the model suggest that (i) at the steady state, the two
 countries need not grow at the same rate and that the South can
 manipulates its own growth rate, (ii) the terms of trade (TOT) may rise,
 fall or remain static at the long run steady state depending on the growth
 rates of the two regions. A decline in the TOT of the South is associated
 with a higher growth rate and higher welfare (under certain conditions).
 This conclusion follows as a result of the incorporation of endogenous
 growth theory that generates increasing returns to scale through the use
 of different varieties of intermediate goods. 
Journal: The Journal of International Trade & Economic Development 
Pages: 23-56 
Issue: 1 
Volume: 13 
Year: 2004 
Keywords: Endogenous growth, North&#x200a;-&#x200a;South, human capital, technology-transfer, terms of trade, increasing returns, 
X-DOI: 10.1080/0963819042000213534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000213534 
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Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Alvarez 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Alvarez 
Author-Name: Raymond Robertson 
Author-X-Name-First: Raymond 
Author-X-Name-Last: Robertson 
Title: Exposure to foreign markets and plant-level innovation: evidence from Chile and Mexico 
Abstract:
  Unlike most studies that calculate productivity as a residual, this study
 uses detailed plant-level data to examine the relationship between
 exposure to foreign markets and specific innovations including product
 design, investment in new tools (such as computers), research and
 development, and innovation in products and processes. The results suggest
 that exposure to foreign markets is positively related to most types of
 technology. The effects seem to be stronger in recently liberalized
 Mexico, which may suggest that the innovation gains from liberalization
 are greatest in the early stages of liberalization. 
Journal: The Journal of International Trade & Economic Development 
Pages: 57-87 
Issue: 1 
Volume: 13 
Year: 2004 
Keywords: Trade, investment, innovation, Chile, Mexico, 
X-DOI: 10.1080/0963819042000213543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000213543 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:1:p:57-87




Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc 
Author-X-Name-First: Jarko 
Author-X-Name-Last: Fidrmuc 
Title: The core and periphery of the world economy 
Abstract:
  This paper reviews three models of foreign trade, including the
 Heckscher-Ohlin model, the new trade theory based on increasing returns to
 scale, and the model of economic geography and trade with agglomeration
 effects. It demonstrates that gravity models perform relatively well for
 differentiated and non-differentiated products. This result supports
 Hummels' and Levinsohn's (1995) critique of the new theory foundation of
 the gravity equation. Furthermore, the bilateral trade relations of
 peripheral countries are often identified as outliers. This pattern of
 outliers is consistent with the model of geography and trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 89-106 
Issue: 1 
Volume: 13 
Year: 2004 
Keywords: Differentiated products, gravity models, economic geography, outlier analysis, 
X-DOI: 10.1080/0963819042000213552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000213552 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:1:p:89-106




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Traca 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Traca 
Title: Trade liberalization, labour mobility and wages 
Abstract:
  This paper analyses the labour market effects of trade liberalization, in
 a model where (a) labour demand uncertainty is higher in tradable
 industries, due to industry-specific shocks to world prices, and (b) the
 costs of inter-sectoral mobility are lower for skilled (i.e. educated)
 workers. We look at two cases: first, where labour markets are competitive
 and, second, where an unemployment subsidy creates rigidities. The results
 show an increase in the wage skill gap, a decline in the real wage and
 welfare of unskilled workers, and an expansion of inter-sectoral labour
 mobility and wage volatility. These effects are more pronounced in the
 case of competitive markets. Our results suggest that focusing on the
 traditional Stolper&#x200a;-&#x200a;Samuelson effect may underestimate the
 effects of international trade on labour markets. 
Journal: The Journal of International Trade & Economic Development 
Pages: 111-136 
Issue: 2 
Volume: 13 
Year: 2004 
Keywords: Wage-skill gap, trade and wages, wage volatility, globalization, 
X-DOI: 10.1080/0963819042000218728 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000218728 
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Template-Type: ReDIF-Article 1.0
Author-Name: Michiel Kok 
Author-X-Name-First: Michiel 
Author-X-Name-Last: Kok 
Author-Name: Richard Nahuis 
Author-X-Name-First: Richard 
Author-X-Name-Last: Nahuis 
Author-Name: Albert de Vaal 
Author-X-Name-First: Albert 
Author-X-Name-Last: de Vaal 
Title: On labour standards and free trade 
Abstract:
  We investigate the effectiveness and efficiency of alternative measures
 to increase standards in low-income countries in a two-country framework
 where (a) trade and standards in low-income countries are negatively
 related, and (b) free trade is not longer optimal for the high-income
 country due to a negative psychological externality that low standards in
 low-income countries exert. We find that any uncoordinated, unilateral
 action by the high-income country to decrease the psychological
 externality is dominated by coordinated action; both with respect to the
 psychological externality as with respect to the welfare consequences for
 both countries. Coordination is also shown to be feasible and incentive
 compatible, provided that standards are objectively verifiable. (JEL D62,
 F13) 
Journal: The Journal of International Trade & Economic Development 
Pages: 137-158 
Issue: 2 
Volume: 13 
Year: 2004 
Keywords: psychological externalities, coordination, trade intervention, 
X-DOI: 10.1080/0963819042000218719 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000218719 
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Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Ramirez 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Ramirez 
Title: Is public infrastructure spending productive in the Mexican case? A vector error correction analysis 
Abstract:
  This paper addresses the important question of whether public investment
 spending on economic infrastructure enhances economic growth in Mexico. It
 estimates a Cobb-Douglas production function that includes public
 infrastructure capital. Using cointegration analysis, the paper estimates
 a vector error correction model (VECM) for the 1995&#x200a;-&#x200a;99
 period. The results suggest that there is a long-term stable relationship
 among the variables included in the VECM. The evidence also indicates that
 both public infrastructure spending and private capital formation have a
 positive and highly significant effect on the rate of output growth.
 Finally, the impulse response functions (IRF) and the variance
 decompositions (VDC) of the endogenous variables in the VECM suggest that
 the response of private capital to public infrastructure is positive while
 the reverse causation is not affirmed. From a policy standpoint, the
 findings call into question stabilization policies that disproportionately
 reduce public infrastructure to meet targeted reductions in the fiscal
 deficit (JEL, O1, O47, O54). 
Journal: The Journal of International Trade & Economic Development 
Pages: 159-178 
Issue: 2 
Volume: 13 
Year: 2004 
Keywords: Augmented Dickey-Fuller Test (ADF), Akaike Information Criterion (AIC), Schwartz Bayesian Criterion (SBC), Impulse Response Functions (IRF), Variance Decompositions (VDC), 
X-DOI: 10.1080/0963819042000218700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000218700 
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Template-Type: ReDIF-Article 1.0
Author-Name: Vivek Dehejia 
Author-X-Name-First: Vivek 
Author-X-Name-Last: Dehejia 
Author-Name: Yiagadeesen Samy 
Author-X-Name-First: Yiagadeesen 
Author-X-Name-Last: Samy 
Title: Trade and labour standards: theory and new empirical evidence 
Abstract:
  Recent trade negotiations, both at the regional and multilateral level,
 have seen a resurgence of the issue of trade and labour standards. Labour
 interests in high-standards countries argue that low labour standards are
 an unfair source of comparative advantage, and that increasing imports
 from low-standards countries will have an adverse impact on wages and
 working conditions in high-standards countries, thus leading to a race to
 the bottom of standards. For low-standards countries, there is the fear
 that this is just a form of disguised protectionism and that the
 imposition of high labour standards upon them is equally unfair since it
 will erode their competitiveness, the latter being largely based on labour
 costs. Our objective in the present paper is to cast some light on the
 above debate from both a theoretical and empirical perspective. In
 particular, we first discuss some possible theoretical links between
 labour standards and comparative advantage through their effects on the
 terms of trade. We then investigate empirically the relationship between
 labour standards, comparative advantage and export performance. Overall,
 our empirical results suggest that caution should be exercised before
 drawing broad conclusions on the magnitude and direction of these effects. 
Journal: The Journal of International Trade & Economic Development 
Pages: 179-198 
Issue: 2 
Volume: 13 
Year: 2004 
Keywords: International trade, labour standards, comparative advantage, 
X-DOI: 10.1080/0963819042000218692 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000218692 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:2:p:179-198




Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse 
Author-X-Name-First: Bedassa 
Author-X-Name-Last: Tadesse 
Author-Name: Michael Ryan 
Author-X-Name-First: Michael 
Author-X-Name-Last: Ryan 
Title: Host market characteristics, FDI, and the FDI&#x200a;-&#x200a;trade relationship 
Abstract:
  This paper empirically examines how a host nation's market
 characteristics, particularly its market maturity and role as an export
 platform, affect the amount of inward FDI it receives and its
 FDI&#x200a;-&#x200a;bilateral trade relationship with the FDI source. For
 the period 1989&#x200a;-&#x200a;1999, using Japanese outward FDI into 85
 geographically and developmentally diverse countries, we find a positive
 and significant relationship between FDI inflows and the host's market
 maturity levels. However, the FDI&#x200a;-&#x200a;trade interaction
 between the host and the FDI source appears to vary inversely with the
 host country's market maturity level. In addition, after controlling for
 the host's market maturity, we find that the nature of the host's 'export
 platform' status also significantly impacts both inward FDI flows and the
 FDI&#x200a;-&#x200a;trade relationship. 
Journal: The Journal of International Trade & Economic Development 
Pages: 199-229 
Issue: 2 
Volume: 13 
Year: 2004 
Keywords: FDI, trade, Japan, export platform, market maturity, regional markets, 
X-DOI: 10.1080/0963819042000218683 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000218683 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:2:p:199-229




Template-Type: ReDIF-Article 1.0
Author-Name: Munisamy Gopinath 
Author-X-Name-First: Munisamy 
Author-X-Name-Last: Gopinath 
Author-Name: Weiyan Chen 
Author-X-Name-First: Weiyan 
Author-X-Name-Last: Chen 
Title: Foreign direct investment and wages: a cross-country analysis 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 231-231 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963819042000246619 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000246619 
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Template-Type: ReDIF-Article 1.0
Author-Name: Shigeto Kitano 
Author-X-Name-First: Shigeto 
Author-X-Name-Last: Kitano 
Title: Macroeconomic effect of capital controls as a safeguard against the capital inflow problem 
Abstract:
  Concerns that a rapid surge in capital inflow leads to loss of autonomy
 in macroeconomic policy, and that its reversal has significant negative
 effects on an economy, have motivated capital controls during the 1990s.
 Under a fixed exchange rate system without capital-account restrictions, a
 decrease in world nominal interest rates causes in a small open economy a
 deterioration in the current account, real exchange rate appreciation, and
 inflationary pressure, as pointed out by Calvo et al. (1994, 1996). This
 paper examines macroeconomic effects of capital-account restrictions as a
 policy response to the capital inflow problem under fixed exchange rates.
 Theoretical analysis shows that capital-account restrictions not only stem
 the capital inflow but also reverse the associated macroeconomic effects.
 The model implies that capital-account restrictions are effective measures
 against the capital inflow problem of emerging markets in the 1990s. 
Journal: The Journal of International Trade & Economic Development 
Pages: 233-263 
Issue: 3 
Volume: 13 
Year: 2004 
Keywords: Capital controls, capital inflows, real exchange rate, current account, inflation, 
X-DOI: 10.1080/0963819042000240011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000240011 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:233-263




Template-Type: ReDIF-Article 1.0
Author-Name: &#xd8;istein R&#xf8;island 
Author-X-Name-First: &#xd8;istein 
Author-X-Name-Last: R&#xf8;island 
Author-Name: Ragnar Torvik 
Author-X-Name-First: Ragnar 
Author-X-Name-Last: Torvik 
Title: Exchange rate versus inflation targeting: a theory of output fluctuations in traded and non-traded sectors 
Abstract:
  This paper develops a basic model for output fluctuations in traded and
 non-traded sectors under two alternative monetary policy regimes; exchange
 rate targeting (or monetary union) and inflation targeting. The
 conventional wisdom from one-sector models says that inflation targeting
 gives better output stabilization than exchange rate targeting when demand
 shocks occur, but the opposite when supply shocks occur. In a model with a
 traded and a non-traded sector, we show that the conventional wisdom holds
 for the non-traded sector. However, for the traded sector, we show that
 inflation targeting destabilizes output compared with exchange rate
 targeting when both supply and demand shocks occur. The only shocks where
 inflation targeting provides the better output stability for the traded
 sector are shocks to world market prices. The two-sector structure
 introduces new mechanisms that may turn around earlier results for
 aggregate production. For instance, a demand shock may induce higher
 aggregate output fluctuations with inflation targeting than with exchange
 rate targeting. Furthermore, a positive demand shock may prove to be
 contractionary under inflation targeting. 
Journal: The Journal of International Trade & Economic Development 
Pages: 265-285 
Issue: 3 
Volume: 13 
Year: 2004 
Keywords: Inflation targeting, exchange rate targeting, monetary policy, dependent economy model, output stability, 
X-DOI: 10.1080/0963819042000240020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000240020 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:265-285




Template-Type: ReDIF-Article 1.0
Author-Name: Manmohan Agarwal 
Author-X-Name-First: Manmohan 
Author-X-Name-Last: Agarwal 
Author-Name: Alokesh Barua 
Author-X-Name-First: Alokesh 
Author-X-Name-Last: Barua 
Title: Entry liberalization and export performance: a theoretical analysis in a multi-market oligopoly model 
Abstract:
  This paper is an attempt to demonstrate how the entry (costless) of firms
 in an industry may have a dramatic effect on exports from an industry in a
 country. The results have tremendous implications for LDCs suffering from
 resource and BOP constraints but having reservoirs of cheap labor. The
 welfare effects of such entry liberalization policy (or subsidy) can be
 stated from the Bhagwati theorem that a reduction in an only (single)
 distortion is necessarily welfare improving by reducing monopoly or
 oligopoly distortions. However, we have shown that the entry
 liberalization policy is welfare superior to an equivalent subsidy policy
 where equivalent is defined in terms of the impact on exports. As a by
 product, we have also shown how one can integrate the oligopoly models of
 trade with the general oligopoly literature. The results on the limiting
 behaviour of an open economy oligopoly model extend the standard results
 in the oligopoly theory in a closed economy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 287-303 
Issue: 3 
Volume: 13 
Year: 2004 
Keywords: Entry liberalization and export performance, entry, trade and the limiting behaviour, 
X-DOI: 10.1080/0963819042000240039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000240039 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:287-303




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Gao 
Author-X-Name-First: Ting 
Author-X-Name-Last: Gao 
Title: FDI, openness and income 
Abstract:
  This is an empirical study of the impact of foreign direct investment
 (FDI) on income. It presents cross-country evidence that inward FDI is
 positively correlated with income. In addition, an instrument for FDI is
 constructed to address the issue of endogeneity. The results show that
 instrumental-variables (IV) estimates of the impact of FDI on income are
 positive and greater than OLS estimates, similar to the findings on trade
 in Frankel and Romer (1999). The evidence in this paper suggests that
 inward FDI contributes to higher income, and favours the argument of Irwin
 and Tervio (2002) that trade openness is subject to measurement error - in
 particular, trade is an imperfect proxy for many income-enhancing
 interactions between countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 305-323 
Issue: 3 
Volume: 13 
Year: 2004 
Keywords: Foreign direct investment, openness, income, growth, OLS, instrumental variables, 
X-DOI: 10.1080/0963819042000240048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000240048 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:305-323




Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Siggel 
Author-X-Name-First: Eckhard 
Author-X-Name-Last: Siggel 
Author-Name: Germina Ssemogerere 
Author-X-Name-First: Germina 
Author-X-Name-Last: Ssemogerere 
Title: Uganda's policy reforms, industry competitiveness and regional integration: a comparison with Kenya 
Abstract:
  The paper reviews, first, Uganda's economic policies affecting the
 industrial sector and analyses the international competitiveness of
 Uganda's manufacturing industries, using a sample of 21 firms in 12
 industries. It computes indices of comparative advantage, export and
 domestic competitiveness and compares the Ugandan indicators with those of
 Kenyan firms. It also identifies the main sources and obstacles to
 competitiveness using a decomposition method, which breaks the unit cost
 indices down into their main components. The study is timely as Uganda is
 re-establishing a free trade zone with Kenya and Tanzania, and also faces
 liberalized trade with the rest of the world. The numerical results of the
 study suggest that Ugandan firms, although not generally cost-competitive
 with Kenyan and other international firms, due to the country's
 land-locked geography and its de-industrialization under the preceding
 political regimes, have benefited from a recently established
 business-friendly environment and are more competitive in several
 industries than is generally assumed. This means that they may not be able
 to export internationally, but they are likely to hold their ground
 against Kenyan imports under regional free trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 325-357 
Issue: 3 
Volume: 13 
Year: 2004 
Keywords: International competitiveness, comparative advantage, policy reforms, regional integration, manufacturing, Uganda, 
X-DOI: 10.1080/0963819042000240057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000240057 
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Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:325-357




Template-Type: ReDIF-Article 1.0
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Editors' introduction 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 359-369 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: Economic growth, convergence, international trade, globalization, 
X-DOI: 10.1080/0963819042000331542 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000331542 
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Handle: RePEc:taf:jitecd:v:13:y:2001:i:4:p:359-369




Template-Type: ReDIF-Article 1.0
Author-Name: Farhad Rassekh 
Author-X-Name-First: Farhad 
Author-X-Name-Last: Rassekh 
Title: The interplay of international trade, economic growth and income convergence: a brief intellectual history of recent developments 
Abstract:
  The literature on the interplay of international trade, economic growth,
 and income convergence across economies has proliferated in the past few
 decades. The present essay reviews the theoretical advancements and
 empirical findings in this literature. The focus will be on recent
 developments with a few glances at the past. The essay also describes new
 findings and insights into the role of international trade in global
 income distribution. Ideas for further research are offered throughout the
 essay. 
Journal: The Journal of International Trade & Economic Development 
Pages: 371-395 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: International trade, economic growth, income convergence, 
X-DOI: 10.1080/0963819042000300582 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000300582 
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Handle: RePEc:taf:jitecd:v:13:y:2001:i:4:p:371-395




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Cyrus 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Cyrus 
Title: Does convergence cause trade, or does trade cause convergence? 
Abstract:
  This paper examines the direction of causality between international
 trade and cross-country income differences in several ways. First,
 instruments for income are used in pooled gravity regressions to determine
 the effect of income differences on bilateral trade, and instruments for
 trade are used in regressions to determine the causes of income
 dispersion. Results of these cross-country estimations show that more
 similar countries trade more, while trade appears to increase dispersion.
 However, fixed-effects regression, random-effects regression, and Granger
 causality tests show that trade reduces income differences over time.
 Thus, while the postwar era has seen increasing trade and conditional
 convergence, the causality is bi-directional: convergence causes trade,
 and trade causes convergence. 
Journal: The Journal of International Trade & Economic Development 
Pages: 397-418 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: Trade, convergence, income, gravity, causality, instruments, 
X-DOI: 10.1080/0963819042000300573 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000300573 
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Handle: RePEc:taf:jitecd:v:13:y:2001:i:4:p:397-418




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Ben-David 
Author-X-Name-First: Dan 
Author-X-Name-Last: Ben-David 
Author-Name: Ayal Kimhi 
Author-X-Name-First: Ayal 
Author-X-Name-Last: Kimhi 
Title: Trade and the rate of income convergence 
Abstract:
  To the extent that trade policy affects trade flows between countries,
 the ramifications can be far-reaching from an economic growth perspective.
 This paper examines one aspect of these ramifications, namely the impact
 of changes in the extent of trade between countries on changes in the rate
 of reduction in the size of the income gap that exists between them.
 Export and import data are used as the criteria for determining bilateral
 trade between major trade partners, resulting in the creation of 127 pairs
 of countries on the basis of export data and 134 pairs on the basis of
 import data. An increase in trade between major trade partners - and, in
 particular, increased exports by poorer countries to their wealthier
 partners - is shown to be related to an increase in the rate of
 convergence between the countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 419-441 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: Trade, convergence, 
X-DOI: 10.1080/0963819042000300591 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000300591 
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Handle: RePEc:taf:jitecd:v:13:y:2001:i:4:p:419-441




Template-Type: ReDIF-Article 1.0
Author-Name: Theo Eicher 
Author-X-Name-First: Theo 
Author-X-Name-Last: Eicher 
Author-Name: Leslie Hull 
Author-X-Name-First: Leslie 
Author-X-Name-Last: Hull 
Title: Financial liberalization, openness and convergence 
Abstract:
  All industrialized nations relied on capital account controls for
 significant periods of their economic development and relaxations of
 capital account restrictions thought to be an integral aspect of economic
 development. Economists long advocated the removal of capital controls as
 a stabilizing factor of the development process to improve efficiency and
 return economies from distorted factor prices to production frontiers.
 Empirically, however, financial liberalizations have become associated
 with capital flow reversals, where initial capital inflows at the onset
 are subsequently offset by capital outflows resulting in higher levels of
 accumulated indebtedness. We investigate how capital flow reversals caused
 by financial liberalizations affect the speed of convergence of an
 economy. We show that financial liberalizations reduce short run
 convergence speeds, implying that open economies should experience
 significantly less output volatility but also longer transitions. The
 increased smoothness in response to initial shocks comes at a cost: as
 foreign borrowing rises to smooth domestic income fluctuations causing an
 increase in the domestic interest rate OECD data confirms our findings. 
Journal: The Journal of International Trade & Economic Development 
Pages: 443-459 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: Financial liberalization, openness, convergence, 
X-DOI: 10.1080/0963819042000300609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000300609 
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Handle: RePEc:taf:jitecd:v:13:y:2001:i:4:p:443-459




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Loewy 
Author-X-Name-First: Michael 
Author-X-Name-Last: Loewy 
Title: Optimal tariffs, optimal taxes and economic development 
Abstract:
  Cross-section and time-series data suggest that nations substitute income
 taxes for tariffs as they develop. This paper confronts the data within
 the context of a two-country open-economy endogenous growth model in which
 public expenditure is financed by an optimal tariff and income tax. When
 the latter is subject to administrative costs, the model predicts that the
 government will optimally substitute the income tax for the tariff as
 output rises along the transition. The model is calibrated and a
 simulation yields time paths for the shares of total government revenue
 derived from the tariff and the income tax that are consistent with the
 data. 
Journal: The Journal of International Trade & Economic Development 
Pages: 461-486 
Issue: 4 
Volume: 13 
Year: 2001 
Keywords: Optimal tariffs, optimal taxes, growth, 
X-DOI: 10.1080/0963819042000300618 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000300618 
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongmin Chen 
Author-X-Name-First: Yongmin 
Author-X-Name-Last: Chen 
Author-Name: Keith Maskus 
Author-X-Name-First: Keith 
Author-X-Name-Last: Maskus 
Title: Vertical Pricing and Parallel Imports 
Abstract:
  We generalize an earlier model of international vertical pricing to
 explain key features of parallel imports, or unauthorized trade in
 legitimate goods. When a manufacturer (or trademark owner) sells its
 product through an independent agent in one country, the agent may find it
 profitable to engage in parallel trade, selling the product to another
 country without the authorization of the manufacturer. Although parallel
 imports can be deterred when the manufacturer's wholesale price is
 sufficiently high, there is a trade-off between improving vertical pricing
 efficiency and reducing parallel imports. In equilibrium, parallel imports
 can come from a country with higher retail prices, which is consistent
 with some factual data. While countries have varying interests in such a
 policy, restricting parallel imports tends to increase global welfare when
 trade cost is high, but may reduce welfare when trade cost is low. This
 finding suggests that open parallel trading regimes may be most
 appropriate within regional trade agreements. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-18 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: Parallel imports, vertical price formation, intellectual property rights, 
X-DOI: 10.1080/0963819042000333225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333225 
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Template-Type: ReDIF-Article 1.0
Author-Name: Winston Chang 
Author-X-Name-First: Winston 
Author-X-Name-Last: Chang 
Title: Optimal Trade and Privatization Policies in an International Duopoly with Cost Asymmetry 
Abstract:
  This paper examines optimal trade and privatization policies in a mixed
 duopoly in which a pubic home firm competes with a more efficient foreign
 firm. The home firm is a Cournot competitor or a Stackelberg leader. The
 home government chooses the degree of privatization and import tariff to
 maximize national welfare. The paper examines the policy effects on
 industry equilibrium with general demand and cost structures and shows
 that the optimal level of privatization depends crucially upon the
 strategic substitutability-complementarity assumption. It further shows
 that if both policies are used under linear demand and quadratic costs,
 the equilibrium prices, firms' outputs, welfare and tariff rates are the
 same under Cournot and Stackelberg competition, and price equals the home
 firm's marginal cost. Neither full nationalization nor full privatization
 is optimal under Cournot, but full nationalization is always optimal under
 Stackelberg competition. If only one policy is used, a reduction in
 government's ownership of the public firm under Cournot competition and
 constant marginal costs calls for a higher optimal tariff rate. This
 result does not carry over to the case of increasing marginal costs,
 although the optimal tariff is lower under full nationalization than under
 full privatization. 
Journal: The Journal of International Trade & Economic Development 
Pages: 19-42 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: Privatization, tariff, mixed duopoly, cost asymmetry, 
X-DOI: 10.1080/0963819042000333234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333234 
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Template-Type: ReDIF-Article 1.0
Author-Name: Joao Ricardo Faria 
Author-X-Name-First: Joao Ricardo 
Author-X-Name-Last: Faria 
Author-Name: Halis Murat Yildiz 
Author-X-Name-First: Halis Murat 
Author-X-Name-Last: Yildiz 
Title: Trade Liberalization, Nature of Mergers and Employment 
Abstract:
  This paper develops a simple two-country model in which each economy
 consists of two sectors: a competitive non-tradable sector and an
 oligopolistic tradable sector. We investigate two related issues that
 arise in response to trade liberalization. First, we examine the linkage
 between trade liberalization and the nature of merger incentives in the
 oligopolistic tradable sector. We find that trade liberalization changes
 the industry structure leading to cross border mergers. Next, we explore
 the impact of this change on the labour market of the competitive
 non-tradable sector. It is found that the employment and wage impacts of
 the fall in the price of tradable goods depend on the price elasticity of
 demand for tradable goods and non-tradable goods, and the share of the
 tradable intermediate goods in the total cost of production of
 non-tradables. As a result, the positive employment impact is certain only
 if the demand for tradable goods is inelastic, while labour and tradable
 intermediate goods are complements. 
Journal: The Journal of International Trade & Economic Development 
Pages: 43-63 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: Cross-border mergers, employment, non-tradable sector, 
X-DOI: 10.1080/0963819042000333243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333243 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kusum Mundra 
Author-X-Name-First: Kusum 
Author-X-Name-Last: Mundra 
Title: Immigration and International Trade: A Semiparametric Empirical Investigation 
Abstract:
  This paper examines the effect of immigration on the US trade flows. The
 model hypothesizes that immigration facilitates international trade with
 home countries by lowering transaction costs. Immigrants also demand
 products from their country of origin and thus stimulate trade. Using a
 panel data set we estimate a dynamic semiparametric fixed-effect model.
 The immigrant stock, a proxy for transaction costs, enters the model
 non-parametrically, whereas other variables enter the model log-linearly,
 as implied by the gravity model of international trade. To estimate this
 semiparametric model, we develop a new instrumental variable estimator
 with desirable asymptotic properties. The results indicate that the
 immigration effect on imports is positive for both finished and
 intermediate goods, but the effect on exports is positive only for
 finished goods. The findings supports the hypothesis that for finished
 goods where country specific information is crucial for trading,
 immigrants have a pro trade effect for both US imports and US exports.
 This pro trade effect of the information and knowledge carried by the
 immigrants is not observed for the US exports in the intermediate goods.
 Immigrants also have a strong demand effect both for the consumer and
 intermediate imports. 
Journal: The Journal of International Trade & Economic Development 
Pages: 65-91 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: International trade, immigration, semiparametric dynamic panel, instrumental variable, 
X-DOI: 10.1080/0963819042000333252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333252 
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Template-Type: ReDIF-Article 1.0
Author-Name: David EA Giles 
Author-X-Name-First: David EA 
Author-X-Name-Last: Giles 
Title: Output Convergence and International Trade: Time-Series and Fuzzy Clustering Evidence for New Zealand and her Trading Partners, 1950&#x200a;-&#x200a;1992 
Abstract:
  Using historical time-series data, we test for convergence and common
 trends in real per capita output for New Zealand and her four major
 trading partners. Both bivariate and multivariate time-series methods are
 used, and we also implement the fuzzy c-means clustering algorithm as a
 new method for detecting convergence. The results of our time-series
 analysis accord with earlier studies - we find limited evidence of (only
 bivariate) convergence, but ample evidence of a small number of common
 trends. In contrast, our fuzzy clustering analysis reveals very strong
 evidence of a particular form of output convergence when the five trading
 countries are considered as a group. 
Journal: The Journal of International Trade & Economic Development 
Pages: 93-114 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: Economic growth, international trade, convergence, common trends, cointegration, fuzzy sets, pattern recognition, fuzzy c-means algorithm, 
X-DOI: 10.1080/0963819042000333261 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333261 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bin Xu 
Author-X-Name-First: Bin 
Author-X-Name-Last: Xu 
Author-Name: Eric CHiang 
Author-X-Name-First: Eric 
Author-X-Name-Last: CHiang 
Title: Trade, Patents and International Technology Diffusion 
Abstract:
  This paper investigates international technology diffusion through trade
 and patenting in a sample of 48 countries for the period
 1980&#x200a;-&#x200a;2000. We divide the sample in three income groups to
 detect different patterns of technology absorption. Our results show that
 rich countries benefit from domestic technology and foreign technology
 embodied in imported capital goods, middle-income countries enjoy
 technology spillovers from foreign patents and imported capital goods, and
 poor countries benefit mainly from foreign patents. We find that
 government policies on intellectual property rights protection and trade
 openness have large effects on foreign technology spillovers in middle-
 and low-income countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 115-135 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: International technology diffusion, trade, patents, productivity, 
X-DOI: 10.1080/0963819042000333270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963819042000333270 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:1:p:115-135




Template-Type: ReDIF-Article 1.0
Author-Name: Marianna Belloc 
Author-X-Name-First: Marianna 
Author-X-Name-Last: Belloc 
Author-Name: Giancarlo Gandolfo 
Author-X-Name-First: Giancarlo 
Author-X-Name-Last: Gandolfo 
Title: The Current Account&#x200a;-&#x200a;Interest Rate Relation as a Nonlinear Phenomenon 
Abstract:
  The current account&#x200a;-&#x200a;interest rate relationship has been
 extensively investigated, but always assuming that it is linear. In this
 paper we examine the linearity versus nonlinearity issue with reference to
 this relationship in 11 OECD countries, and find overwhelming evidence in
 favour of nonlinearity. After testing alternative nonlinear
 specifications, we estimate a smooth transition regression model and a
 nonlinear VAR model. Finally, we provide a study of the innovation
 response analysis that shows adjustment behaviours of the two variables.
 The implications of the results are discussed. 
Journal: The Journal of International Trade & Economic Development 
Pages: 145-166 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Current account, real interest rate, nonlinearity, linearity testing, nonlinear modelling, 
X-DOI: 10.1080/09638190500092986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500092986 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:145-166




Template-Type: ReDIF-Article 1.0
Author-Name: Marla Ripoll 
Author-X-Name-First: Marla 
Author-X-Name-Last: Ripoll 
Title: Real Exchange Rate Targeting, Macroeconomic Performance and Sectoral Income Distribution in Developing Countries 
Abstract:
  This paper uses a two-sector general equilibrium model to analyse both
 steady-state and stochastic dynamic effects of two real exchange rate
 targeting policies: a constant-target, and a band-target rule. In the
 model, targeting is implemented by imposing a stochastic fully-rebatable
 tax on the consumption of non-traded goods. The first result is that when
 comparing only steady states, a real exchange rate appreciation favours
 labour and capital in the non-traded sector, while factors in the traded
 sector are favoured by depreciations. A second result is that both rules
 reduce the volatility of investment and the trade balance. The third key
 result is that in the stochastic economy sectoral income distribution
 outcomes depend on the design of the constant and band-target rules. In
 particular, a variety of outcomes may be generated depending on the
 magnitude of the constant target, or the amplitude of the band, relative
 to the volatility of productivity shocks. 
Journal: The Journal of International Trade & Economic Development 
Pages: 167-196 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Exchange rate targeting, sectoral income distribution, developing countries, 
X-DOI: 10.1080/09638190500093075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500093075 
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Template-Type: ReDIF-Article 1.0
Author-Name: Saltuk Ozerturk 
Author-X-Name-First: Saltuk 
Author-X-Name-Last: Ozerturk 
Author-Name: Kamal Saggi 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Saggi 
Title: Tariff Discrimination versus MFN under Incomplete Information 
Abstract:
  Does the presence of incomplete information affect a country's incentive
 to discriminate across exporters with different costs? If so, how? From a
 global perspective, does the presence of incomplete information weaken or
 strengthen the case for MFN? We examine these questions in a model of
 imperfect competition with two asymmetric exporters and a single importing
 country who is imperfectly informed about exporters' costs. Despite the
 lack of complete information, the importing country prefers discrimination
 to MFN. However, equilibrium tariff dispersion is lower under incomplete
 information. As a result, the global welfare gain from MFN, while still
 positive, is smaller under incomplete information relative to the case of
 complete information. 
Journal: The Journal of International Trade & Economic Development 
Pages: 197-208 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Tariffs, most favoured nation clause, oligopoly, trade policy, 
X-DOI: 10.1080/09638190500093208 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500093208 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:197-208




Template-Type: ReDIF-Article 1.0
Author-Name: Minsoo Lee 
Author-X-Name-First: Minsoo 
Author-X-Name-Last: Lee 
Author-Name: Moonjoong Tcha 
Author-X-Name-First: Moonjoong 
Author-X-Name-Last: Tcha 
Title: Pass-Through Elasticity, Substitution and Market Share: the Case for Sheep Meat Exports 
Abstract:
  This paper empirically examines the exchange rate pass-through
 elasticity, using sheep meat exports from the two major exporters,
 Australia and New Zealand. The results show the coexistence of incomplete
 and complete pass-through in the international sheep meat industry. The
 Australian sheep meat exporters have a relatively smaller market share
 than New Zealand and are not able to exercise monopoly power. New Zealand
 producers, on the other hand, can increase their mark-ups in those
 destination countries where they have a large market share. 
Journal: The Journal of International Trade & Economic Development 
Pages: 209-228 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Exchange rate, market share, pass-through elasticity, 
X-DOI: 10.1080/09638190500093380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500093380 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:209-228




Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Dulleck 
Author-X-Name-First: Uwe 
Author-X-Name-Last: Dulleck 
Title: WTO's Anti-dumping Rule and the Protection of Incumbents 
Abstract:
  Article VI of the GATT allows counter measures if goods are sold in a
 foreign market at a price below average production plus transportation
 costs. The present article analyses Article VI based on a simple game
 theoretic model with two countries and economies of scale in the
 production of one homogeneous good. It is shown that multiple equilibria
 exist under the WTO rule for some parameter values that do not exist
 without the rule. In some equilibria, the incumbent serves the entire
 market even if the entrant can produce at lower costs. The model supports
 the criticism of the anti-dumping rule as an instrument of protection by
 industrialized countries against competition from developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 229-239 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: GATT Article VI, anti-dumping, economies of scale, multiple Nash-equilibria, 
X-DOI: 10.1080/09638190500093471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500093471 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:229-239




Template-Type: ReDIF-Article 1.0
Author-Name: Donny Tang 
Author-X-Name-First: Donny 
Author-X-Name-Last: Tang 
Title: Effects of the Regional Trading Arrangements on Trade: Evidence from the NAFTA, ANZCER and ASEAN Countries, 1989&#x200a;-&#x200a;2000 
Abstract:
  Using the modified gravity model, this study examines whether the free
 trade areas of NAFTA, ANZCER and ASEAN would result in trade creation
 among the member countries and trade diversion with the non-member
 countries. Further, it applies Linder's income similarity concept to
 explain the trade patterns in the developed and developing countries
 within these free trade areas. First, the results suggest that the
 implementations of the free trade areas have facilitated higher trade
 among the member countries, particularly the ANZCER and ASEAN countries.
 However, among all three free trade areas, the formation of the ANZCER
 free trade area has resulted in trade diversion with non-member countries,
 whereas that of the ASEAN free trade area has resulted in a trade increase
 with non-member countries. Surprisingly, the formation of the NAFTA free
 trade area has no significant effect on trade with non-member countries as
 their trade flows remain quite low even before its implementation. Second,
 the result indicates that the trade-enhancing effect of income similarity
 is confirmed for the developing rather than developed member countries.
 The developing member countries with similar incomes would trade
 extensively more with each other. This result can be partly explained by
 Hanink's income threshold concept, which argues that the income similarity
 effect is only applicable to developed countries with very small
 difference in incomes. Given the heterogeneous country sample in this
 study, the substantial income differences among the developed member
 countries would probably account for the lack of income similarity effect
 in these countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 241-265 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Economic integration, trade liberalization, free trade area, 
X-DOI: 10.1080/09638190500093562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500093562 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:241-265




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Webb 
Author-X-Name-First: Michael 
Author-X-Name-Last: Webb 
Title: The conflicting impacts of export fluctuations and diversification programmes 
Abstract:
  While analyses of export instability and diversification policies
 typically focus on aggregate earnings, a conflict can arise between income
 instability at the aggregate and household levels. Diversification can
 reduce a country's aggregate income instability and simultaneously
 increase the instability experienced by many households, and perhaps by
 every household in the country. We demonstrate how alternative export
 portfolios can produce this conflict in instability. The conflict means
 that the conclusions from previous empirical studies need to be qualified
 and policy recommendations need to be carefully formulated. 
Journal: The Journal of International Trade & Economic Development 
Pages: 271-280 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: Export, fluctuation, diversification, portfolio, instability, development, 
X-DOI: 10.1080/09638190500202965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500202965 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:271-280




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Francis 
Author-X-Name-First: Michael 
Author-X-Name-Last: Francis 
Title: Trade and the enforcement of environmental property rights 
Abstract:
  This paper explores the relationship between trade and the regulation of
 what are otherwise open-access resources when enforcement of property
 rights is costly. When enforcement costs are significant, environmental
 property rights are only adopted and enforced when the potential resource
 rents exceed the regulatory cost. Since trade affects the magnitude of
 these rents, trade can affect the willingness to regulate. One of the most
 striking consequences of the presence of an enforcement cost is that the
 decision to liberalize trade, even at autarkic prices, can result in a
 switch in the regulatory regime and potentially reduce economic welfare. 
Journal: The Journal of International Trade & Economic Development 
Pages: 281-298 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: International trade, environmental standards, open-access renewable resources, 
X-DOI: 10.1080/09638190500204169 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500204169 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:281-298




Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Shimizu 
Author-X-Name-First: Takanori 
Author-X-Name-Last: Shimizu 
Author-Name: Hisayuki Okamoto 
Author-X-Name-First: Hisayuki 
Author-X-Name-Last: Okamoto 
Title: An analysis of stability of the north-south growth model of trade: Saddle-path stability of the generalized grossman-helpman model with skilled and unskilled labours 
Abstract:
  This paper analyses the local stability of the steady state of the
 generalized Lai (1995) model, i.e. the Shimizu and Okamoto (2004) model.
 Lai is a modified version of Grossman and Helpman (1991a, 1991b: Ch. 11)
 by assuming that there are two types of labour: skilled and unskilled
 labours. Shimizu and Okamoto (2004) generalize the Lai model by assuming
 that Southern knowledge stock depends not only on Southern cumulative
 experience but also on the number of products the North manufactures. This
 paper shows that the stability of steady state in the generalized Lai
 model has the saddle point property. Thus, this paper also establishes the
 stability of the Grossman and Helpman (1991a, 1991b: Ch. 11) model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 299-317 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: North-South trade, innovation, imitation, local stability of the steady state, saddle-path stability, 
X-DOI: 10.1080/09638190500204334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500204334 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:299-317




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Schaeffer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Schaeffer 
Title: Human capital, migration strategy, and brain drain 
Abstract:
  This research was motivated by the increasing number of foreign students
 and scientists who are in the United States on temporary visas and who are
 able to change their status to permanent immigrant. Origin countries,
 among them industrialized western European nations, are concerned about
 losing many of their best-educated and most talented citizens. This
 article modifies and extends a theoretical model of optimal human capital
 investment before and after migration to shed new light on the
 emigration/immigration of the highly skilled, and explores some possible
 implications for the study of the so-called 'brain drain' phenomenon. 
Journal: The Journal of International Trade & Economic Development 
Pages: 319-335 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: Brain drain, emigration, human capital, immigration, self-selection, immigration strategy, 
X-DOI: 10.1080/09638190500203344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500203344 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:319-335




Template-Type: ReDIF-Article 1.0
Author-Name: Samarendu Mohanty 
Author-X-Name-First: Samarendu 
Author-X-Name-Last: Mohanty 
Author-Name: E. Wesley 
Author-X-Name-First: E. 
Author-X-Name-Last: Wesley 
Author-Name: F. Peterson 
Author-X-Name-First: F. 
Author-X-Name-Last: Peterson 
Title: Food security and government interventions: A study of Indian grain markets 
Abstract:
  This study examines the future of Indian food security in light of
 possible liberalization of its agriculture sector. Demand for major food
 grains such as wheat and rice is projected after taking into account
 possible dietary changes due to income growth, urbanization and other
 demographic changes. Policy Analysis Matrix (PAM) indicators are
 constructed to predict changes in supply patterns in the case of reduced
 government intervention. The projected demand growth suggests faster
 increases in per capita wheat consumption due to strong income growth and
 urbanization whereas per capita rice consumption is projected to level off
 in the next few years and then will likely decline steadily for the
 remainder of the projection period. This indicates that Indian wheat
 production may need to grow at a much faster rate than rice production in
 order to remain self-sufficient in the future. Based on the PAM ranking,
 this may be possible under reduced or no government interventions because
 of the comparative advantage of wheat over rice in the major growing
 regions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 337-352 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: India, comparative advantage, PAM, demand projections, 
X-DOI: 10.1080/09638190500203187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500203187 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:337-352




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Martinez-Zarzoso 
Author-Name: Celestino Suarez-Burguet 
Author-X-Name-First: Celestino 
Author-X-Name-Last: Suarez-Burguet 
Title: Transport costs and trade: Empirical evidence for Latin American imports from the European union 
Abstract:
  This paper aims to investigate the relationship between trade flows and
 transport costs. In previous studies the cost of transport was considered
 as an exogenous variable. However, an expanding volume of trade also
 reduces the unit cost of transport and, therefore, the causal relationship
 between trade and transport costs may be operating in both directions. A
 transport-costs equation is estimated using data on transportation costs
 from the International Transport Data Base (BTI). The relationship between
 transport costs and trade is then analysed by applying a gravity model for
 sectoral imports for five Latin American Countries from the European
 Union. We investigate the endogeneity of the transport cost and trade
 variables by estimating simultaneously both equations. Our results show
 that, while higher distance and poor importer's infrastructure notably
 increase transport costs, a higher volume of trade has the opposite
 effect. Moreover, trade is significantly deterred by higher transport
 costs and fostered by cultural similarities. 
Journal: The Journal of International Trade & Economic Development 
Pages: 353-371 
Issue: 3 
Volume: 14 
Year: 2005 
Keywords: Transport costs, trade, infrastructure, imports sectors, 
X-DOI: 10.1080/09638190500212121 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500212121 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:353-371




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Book review 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 373-375 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638190500204219 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500204219 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:373-375




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Hertel 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Hertel 
Author-Name: Jeffrey Reimer 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Reimer 
Title: Predicting the poverty impacts of trade reform 
Abstract:
  Quantifying how international trade affects poverty in developing
 countries is currently an area of intense research activity. This paper
 surveys the developments taking place, identifies four major
 methodological groupings, and summarizes preliminary findings from this
 literature. Methodologies currently used include 'bottom-up' approaches
 based on detailed household expenditure data, and 'top-down' approaches
 based on national accounts data. The survey's general conclusion is that
 any analysis of trade and poverty needs to be informed by both
 perspectives, and indeed, an increasing number of studies do so in what
 can be labelled 'micro-macro' synthesis. Future work should be directed
 towards improving the treatment of factor markets, domestic marketing
 costs, taxes and transfer payments, as well as devoting more attention to
 the reconciliation of household survey with national accounts data. 
Journal: The Journal of International Trade & Economic Development 
Pages: 377-405 
Issue: 4 
Volume: 14 
Year: 2005 
Keywords: Modelling, poverty, trade, 
X-DOI: 10.1080/09638190500372404 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372404 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:377-405




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Tatum 
Author-X-Name-First: Robert 
Author-X-Name-Last: Tatum 
Title: Sustaining imperfectly credible trade liberalization: Do the rate of tariff reduction and the degree of labour mobility matter? 
Abstract:
  Imperfectly credible trade liberalization can lead to balance of payment
 deterioration and a subsequent reversal of the reform. Therefore, this
 paper examines whether the likelihood of policy reversal depends on the
 rate of tariff reduction or the degree of labour mobility. The analysis
 shows that transitory unemployment increases the likelihood of policy
 reversal. Furthermore, a gradual reduction in the tariff rate is found to
 extend the life of the liberalization episode, but does not necessarily
 increase the likelihood of sustained liberalization. 
Journal: The Journal of International Trade & Economic Development 
Pages: 407-435 
Issue: 4 
Volume: 14 
Year: 2005 
Keywords: Liberalization, credibility, unemployment, payments deficits, 
X-DOI: 10.1080/09638190500372503 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372503 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:407-435




Template-Type: ReDIF-Article 1.0
Author-Name: Dermot Leahy 
Author-X-Name-First: Dermot 
Author-X-Name-Last: Leahy 
Author-Name: Catia Montagna 
Author-X-Name-First: Catia 
Author-X-Name-Last: Montagna 
Title: Union legislation and export platform FDI 
Abstract:
  This paper examines Foreign Direct Investment in the presence of labour
 unions. An oligopoly model is developed in which identical firms locate in
 a host country in order to export to a foreign country. These firms are
 unionized and compete with foreign firms on the foreign market. We
 consider the incentives for social dumping via restrictive labour
 legislation, which we assume can be used by the host country government to
 affect the bargaining power of unions. We ask whether it is in the
 interest of the importing foreign country for the host country to relax or
 to tighten labour laws. 
Journal: The Journal of International Trade & Economic Development 
Pages: 437-452 
Issue: 4 
Volume: 14 
Year: 2005 
Keywords: Foreign Direct Investment, labour unions, labour legislation, social dumping, exports, 
X-DOI: 10.1080/09638190500372560 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372560 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:437-452




Template-Type: ReDIF-Article 1.0
Author-Name: Ian Goldin 
Author-X-Name-First: Ian 
Author-X-Name-Last: Goldin 
Author-Name: Kenneth Reinert 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Reinert 
Title: Global capital flows and development: A Survey 
Abstract:
  From a development perspective, capital flows can both provide
 significant benefits and entail significant costs. Consequently, the
 development impacts of capital flows do not readily lend themselves to
 simple generalizations. This survey considers the development benefits and
 costs of four kinds of capital flows: foreign direct investment, equity
 portfolio investment, bond finance, and commercial bank lending. The
 survey suggests that the development impacts of these flows are
 conditional on both their specific characteristics and the larger policy
 environments in which they take place. It claims short-term superiority
 for foreign direct investment and equity portfolio investment over bond
 finance and commercial bank lending, and offers a set of policy
 recommendations to make capital flows more development-friendly. 
Journal: The Journal of International Trade & Economic Development 
Pages: 453-481 
Issue: 4 
Volume: 14 
Year: 2005 
Keywords: Capital flows, foreign direct investment, financial development, 
X-DOI: 10.1080/09638190500372610 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372610 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:453-481




Template-Type: ReDIF-Article 1.0
Author-Name: Brishti Guha 
Author-X-Name-First: Brishti 
Author-X-Name-Last: Guha 
Title: Female labour force participation and labour saving gadgets 
Abstract:
  We show under what conditions women would migrate out of the household
 sector into formal sector jobs, in response to increased ability to use
 labour saving household gadgets, which raise the productivity of female
 labour engaged in household tasks. We model a small open economy with
 three outputs: one labour-intensive manufactured export (cloth), one
 capital-intensive intermediate good (gadgets) and one non-traded
 'household-sector good' (meals) which requires both female labour and
 household gadgets for production. A terms-of-trade improvement capturing
 greater world demand for labour-intensive manufactured exports enables
 greater adoption of labour-saving household gadgets in response to
 changing relative prices. If the elasticity of substitution between female
 labour and household gadgets exceeds a threshold, this will result in
 women migrating from the household to formal sector employment. What
 matters is not the actual date of invention of these labour-saving
 appliances (female labour force participation may not grow significantly
 until long after) but their increased adoption by the small economy in
 response to changing relative prices. 
Journal: The Journal of International Trade & Economic Development 
Pages: 483-495 
Issue: 4 
Volume: 14 
Year: 2005 
Keywords: Labour-saving gadgets, migration, female labour force participation, 
X-DOI: 10.1080/09638190500372701 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372701 
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:483-495




Template-Type: ReDIF-Article 1.0
Author-Name: James Cassing 
Author-X-Name-First: James 
Author-X-Name-Last: Cassing 
Title: Book Review 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 497-498 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638190500372743 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500372743 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:14:y:2005:i:4:p:497-498




Template-Type: ReDIF-Article 1.0
Author-Name: Kamil Yilmaz 
Author-X-Name-First: Kamil 
Author-X-Name-Last: Yilmaz 
Title: How much should primary commodity exports be taxed? Nash and Stackelberg equilibria in the Global Cocoa Market 
Abstract:
  This paper extends the partial (PE) and general equilibrium (GE) analyses
 of Nash and Stackelberg optimum export taxes to a multicountry framework,
 using a computable general equilibrium (CGE) model of the global cocoa
 market. There are several results to report. First, depending on the
 leader's market share and cocoa supply elasticity, a Stackelberg optimum
 tax rate is either higher than or equal to the Nash optimum tax rate.
 Second, undertaking a PE analysis of those countries with characteristics
 that require a GE approach leads to the overestimation of the followers'
 optimum export taxes. However, the consequences for the leaders' optimum
 tax rates are not certain. For countries with elastic supply Stackelberg
 leader optimum tax rates are higher in the PE than in the GE framework.
 The reverse is true for countries with inelastic supply. Finally, we show
 that the symmetric equilibrium result, that a country is better off under
 another country's leadership than its own, is not necessarily carried over
 to an asymmetric setting. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-26 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: Optimum tax, Nash, Stackelberg, computable general equilibrium, 
X-DOI: 10.1080/09638190500523360 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500523360 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:1-26




Template-Type: ReDIF-Article 1.0
Author-Name: Debasis Mondal 
Author-X-Name-First: Debasis 
Author-X-Name-Last: Mondal 
Author-Name: Manash Ranjan Gupta 
Author-X-Name-First: Manash Ranjan 
Author-X-Name-Last: Gupta 
Title: Product development, imitation and economic growth: A note 
Abstract:
  A dynamic North&#xa0;-&#xa0;South general equilibrium model of
 international product cycle is presented in this paper. The qualitative
 effects of strengthening intellectual property rights (IPR) on the
 balanced growth rate of the world economy is studied in two alternative
 cases: (i) imitation is direct from North to South; (ii)
 multinationalization is the channel of product transfer. 
Journal: The Journal of International Trade & Economic Development 
Pages: 27-48 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: Product variety, imitation, intellectual property rights, steady-state growth, multinational, knowledge capital, weights, 
X-DOI: 10.1080/09638190500523485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500523485 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:27-48




Template-Type: ReDIF-Article 1.0
Author-Name: Phillip McCalman 
Author-X-Name-First: Phillip 
Author-X-Name-Last: McCalman 
Title: Parallel imports and the lot of a starving artist 
Abstract:
  This paper studies the role of copyright in the market for cultural
 output and how parallel imports effect the structure of incentives faced
 by artists. It demonstrates that parallel imports effect the distribution
 of income between generations of artists, raising the income of younger
 artists while reducing the income of superstars; the net outcome being a
 decline in the number of artists producing cultural output. Optimal
 subsidies to offset this decline can either involve a subsidy to starving
 young artists and no subsidy for superstars, or the opposite outcome
 depending on government attitudes towards the distribution of income. 
Journal: The Journal of International Trade & Economic Development 
Pages: 49-62 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: International trade, parallel imports, copyright, intellectual property rights, 
X-DOI: 10.1080/09638190500523501 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500523501 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:49-62




Template-Type: ReDIF-Article 1.0
Author-Name: Sandwip Kumar Das 
Author-X-Name-First: Sandwip Kumar 
Author-X-Name-Last: Das 
Author-Name: Manoj Pant 
Author-X-Name-First: Manoj 
Author-X-Name-Last: Pant 
Title: Measuring market imperfection in the manufacturing sector: Theory and evidence from India 
Abstract:
  In this paper we have looked at the structure of competition in the
 Indian corporate sector during 1989&#xa0;-&#xa0;2003 and found that the
 new industrial policy has not been able to foster greater competitiveness
 in organized industries. In spite of an increase of in the number of
 firms, the industry has not become more competitive in terms of the
 difference between price and marginal cost. The firms that have entered
 are small players in the market and no significant entry of middle-sized
 firms has taken place. In order to deal with the 'missing middle' aspect
 of industrial concentration in India, we have used a leadership model to
 estimate the mark-ups for groups of small and large firms. The theoretical
 model suggests that sample classification is necessary in order avoid bias
 in mark-up estimates. The sub-game perfect equilibrium in the leadership
 model also suggests that the mark-up of small firms is different from that
 of the large firms and possibly higher under certain conditions, which is
 partly supported by the econometric finding in the Indian context. 
Journal: The Journal of International Trade & Economic Development 
Pages: 63-79 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: Lerner index, sub-game perfection, Indian corporate sector, size distribution of firms, 
X-DOI: 10.1080/09638190500524236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500524236 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:63-79




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Vargas-Silva 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Vargas-Silva 
Author-Name: Peng Huang 
Author-X-Name-First: Peng 
Author-X-Name-Last: Huang 
Title: Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions 
Abstract:
  This study examines the determinants of worker's remittances. Variance
 decompositions, impulse response functions and Granger causality tests
 derived from a vector error correction model are used to test if
 remittances are affected by the macroeconomic conditions of the host
 (remittance sending) or home (remittance receiving) country. Data from
 Brazil, Colombia, the Dominican Republic, El Salvador, Mexico and the US
 are used. The results indicate that remittances respond more to changes in
 the macroeconomic conditions of the host country, than to changes in the
 macroeconomic conditions of the home country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 81-99 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: Remittances, migration, international flows, error correction models, 
X-DOI: 10.1080/09638190500525779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500525779 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:81-99




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: On the transmission of exchange rate fluctuations to the macroeconomy: Contrasting evidence for developing and developed countries 
Abstract:
  The paper examines channels of interaction between exchange rate shifts
 and the macroeconomy. Exchange rate shifts are differentiated into
 anticipated and unanticipated components. Each component affects the
 demand and supply sides of the economy. Primarily, exchange rate shifts
 determine export competitiveness and the cost of imported inputs. The
 evidence reveals a relatively more important role for the cost channel in
 determining the real and inflationary effects in developing countries,
 compared with developed countries. Currency appreciation (depreciation),
 both anticipated and unanticipated, results in an increase (decrease) in
 output growth and a reduction (an increase) in price inflation in many
 developing countries. This evidence indicates the adverse effects of
 currency depreciation on macroeconomic performance in developing
 countries. Exchange rate policy should not be used to raise export
 competitiveness without considering the need for structural reforms in
 developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 101-127 
Issue: 1 
Volume: 15 
Year: 2006 
Keywords: Exchange rate, anticipated vs. unanticipated shocks, demand and supply channels, developing vs. developed countries, 
X-DOI: 10.1080/09638190500525795 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500525795 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:101-127




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Aizenman 
Author-Name: Reuven Glick 
Author-X-Name-First: Reuven 
Author-X-Name-Last: Glick 
Title: Military expenditure, threats, and growth 
Abstract:
  This paper clarifies one of the puzzling results of the economic growth
 literature: the impact of military expenditure is frequently found to be
 non-significant or negative, yet most countries spend a large fraction of
 their GDP on defense and the military. We start by empirical evaluation of
 the non-linear interactions between military expenditure, external
 threats, corruption, and other relevant controls. While growth falls with
 higher levels of military spending, given the values of the other
 independent variables, we show that military expenditure in the presence
 of threats increases growth. We explain the presence of these
 non-linearities in an extended version of Barro and Sala-i-Martin (1995),
 allowing the dependence of growth on the severity of external threats, and
 on the effective military expenditure associated with these threats. 
Journal: The Journal of International Trade & Economic Development 
Pages: 129-155 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Economic growth, military expenditure, external threats, corruption, 
X-DOI: 10.1080/09638190600689095 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600689095 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:129-155




Template-Type: ReDIF-Article 1.0
Author-Name: Arghya Ghosh 
Author-X-Name-First: Arghya 
Author-X-Name-Last: Ghosh 
Author-Name: Munirul Nabin Haque 
Author-X-Name-First: Munirul Nabin 
Author-X-Name-Last: Haque 
Title: Sequential technology adoption with asymmetric firms 
Abstract:
  We analyse the incentives and welfare implications of costly technology
 adoption in a two-period duopoly model where firms have different amounts
 of capital. We also extend our framework to an open economy set-up and
 examine the relationship between trade and technology adoption. Our
 findings are as follows. First, no monotone relationship exists between
 the threshold cost of adoption and capital shares. Second, an unequal
 distribution of capital, despite lessening competition, can increase total
 surplus. Third, trade generally encourages adoption of modern technology
 unless the share of capital for the adopters is too low. 
Journal: The Journal of International Trade & Economic Development 
Pages: 157-172 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Asymmetry, Cournot duopoly, technology adoption, trade, surplus, 
X-DOI: 10.1080/09638190600690838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600690838 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:157-172




Template-Type: ReDIF-Article 1.0
Author-Name: Subhayu Bandyopadhyay 
Author-X-Name-First: Subhayu 
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Sudeshna Bandyopadhyay 
Author-X-Name-First: Sudeshna 
Author-X-Name-Last: Bandyopadhyay 
Title: The role of capital mobility in illegal immigration policy 
Abstract:
  This paper analyzes the effectiveness of enforcement in controlling
 illegal immigration in two scenarios, capital mobility and capital
 immobility in the host nation (for illegal immigrants). The source nation
 is assumed throughout to have immobility of capital. We show that the net
 enforcement expenditure is higher (lower) in the presence of capital
 mobility if the host nation is an importer (exporter) of capital at the
 target immigration level. Furthermore, we show that if the host nation is
 an exporter of capital at the point of zero enforcement (unrestricted
 immigration), it must have lower enforcement expenditure (compared to
 capital immobility) for any illegal immigration target. If it is an
 importer of capital at zero enforcement, there is some ambiguity. National
 income must be higher (lower) under capital mobility (compared to
 immobility) if the host nation is an importer (exporter) of capital at the
 target immigration level. The analysis is extended to consider endogenous
 determination of optimal immigration level. Under capital mobility, for a
 capital exporting nation, the optimal enforcement and the national income
 levels are higher, while the optimal immigration level is lower. 
Journal: The Journal of International Trade & Economic Development 
Pages: 173-189 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Illegal immigration, capital mobility, optimal enforcement, 
X-DOI: 10.1080/09638190600690879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600690879 
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: Why do developing countries resist global trade agreements? 
Abstract:
  Although the Doha Development Round was launched with much promise for
 developing countries in 2001, the global trade negotiations have
 collapsed. One of the reasons for the lack of progress in the negotiation
 is the developed countries' unwillingness to reduce their enormous farm
 domestic subsidies and massive agricultural trade distortions. The
 developing countries' economies are characterized by heavy dependence on
 farm sector, labor-intensive agriculture, and persistent unemployment.
 Consequently, rich nations' unfair agricultural policies are detrimental
 to the well-being of poor exporting countries. This study develops a model
 incorporating developed countries' domestic and trade policies and
 developing countries' economic characteristics to illustrate the adverse
 effects of rich countries' policies on poor countries. We show that
 elimination of developed countries' policies will increase the world
 prices of agricultural commodities, which will benefit the farm-dependent
 developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 191-208 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Agricultural policies, global trade agreements, poor countries, rich countries, 
X-DOI: 10.1080/09638190600690895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600690895 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:191-208




Template-Type: ReDIF-Article 1.0
Author-Name: Brishti Guha 
Author-X-Name-First: Brishti 
Author-X-Name-Last: Guha 
Title: Green revolutions and miracle economies: Agricultural innovations, trade and growth 
Abstract:
  The purpose of this paper is to develop a simple model of an economy in
 which growth is driven by a combination of exogenous technical change in
 agriculture and a rising world demand for labor-intensive manufactured
 exports. We explore the relative roles of an exogenous agricultural
 productivity shock and rising export demand in a model with two traded
 industrial goods and a non-traded agricultural good, food. When the
 non-traded sector uses a specific factor, we show that technical change in
 agriculture may be the key to factor migration into industry, in
 particular driving intersectoral labor migration. A key assumption is a
 less than unitary price elasticity of demand for food. Our results could
 form a crucial link in capturing the story of labor-abundant economies
 which experienced structural transformation and growth through
 labor-intensive manufactured exports, without prior technology
 breakthroughs in industry. They contribute to explaining the massive
 growth in factor accumulation which shows up in some growth accounting
 studies: they may also imply that some of the contribution of 'technical
 progress' is mistakenly attributed solely to factor accumulation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 209-230 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Structural change, agricultural productivity, labor migration, terms of trade, 
X-DOI: 10.1080/09638190600690986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600690986 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:209-230




Template-Type: ReDIF-Article 1.0
Author-Name: C. Alyson 
Author-X-Name-First: C. 
Author-X-Name-Last: Alyson 
Title: On the choice of in-house production versus outsourcing by multinationals 
Abstract:
  The global economy is becoming more integrated with the increase in
 international fragmentation. This paper examines two forms of global
 production networks in a general equilibrium framework by building on the
 'knowledge-capital model.' The focus is the relationship between country
 characteristics and the multinational firm's choice either to allocate the
 labor-intensive processing stage in-house to its foreign affiliates or to
 outsource the activity to outside contractors at arm's-length. Chinese
 data on the export processing trade are used to test the theory. The
 findings show that multinational firms with their headquarters in highly
 skilled-labor-abundant countries of intermediate size have a preference
 for outsourcing. By contrast, skilled-labor-abundant countries of small
 size are homes to multinational firms with subsidiary production in the
 host country where unskilled labor is cheap. 
Journal: The Journal of International Trade & Economic Development 
Pages: 231-254 
Issue: 2 
Volume: 15 
Year: 2006 
Keywords: Outsourcing, multinational firm, imperfect competition, vertical integration, trade, 
X-DOI: 10.1080/09638190600691000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600691000 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:231-254




Template-Type: ReDIF-Article 1.0
Author-Name: Manmohan Agarwal 
Author-X-Name-First: Manmohan 
Author-X-Name-Last: Agarwal 
Author-Name: Satish Jain 
Author-X-Name-First: Satish 
Author-X-Name-Last: Jain 
Author-Name: Anjan Mukherji 
Author-X-Name-First: Anjan 
Author-X-Name-Last: Mukherji 
Title: Introduction: Conference on governance 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 255-256 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638190600871552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871552 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:3:p:255-256




Template-Type: ReDIF-Article 1.0
Author-Name: Dipankar Dasgupta 
Author-X-Name-First: Dipankar 
Author-X-Name-Last: Dasgupta 
Author-Name: Koji Shimomura 
Author-X-Name-First: Koji 
Author-X-Name-Last: Shimomura 
Title: Public infrastructure, employment and sustainable growth in a small open economy with and without foreign direct investment 
Abstract:
  The paper builds a theoretical model of endogenous growth motivated by
 the recent Indian paradox of an improving GDP growth rate in the face of
 unsatisfactory employment growth rate. The source of the problem is
 believed to be inadequate growth of manufacture for the absorption of
 unskilled or semi-skilled labour in rural sectors. The paper studies the
 impact of free trade on employment and GDP growth in a small, developing
 economy in the absence as well as presence of foreign direct investment.
 The model also recognizes the importance of public infrastructure
 accumulation to support the growth process. The results indicate that free
 trade with or without a corresponding free inflow of foreign capital into
 the manufacturing sector has a positive impact on employment and GDP
 growth. However, the beneficial effect is stronger in the presence of
 foreign capital. Foreign and domestic capital grow at equal rates in
 equilibrium. 
Journal: The Journal of International Trade & Economic Development 
Pages: 257-291 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Endogenous growth, direct foreign investment, employment, free trade, infrastructure, public goods, tax, 
X-DOI: 10.1080/09638190600871586 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871586 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:3:p:257-291




Template-Type: ReDIF-Article 1.0
Author-Name: Brati Sankar Chakraborty 
Author-X-Name-First: Brati Sankar 
Author-X-Name-Last: Chakraborty 
Title: Brain drain: An alternative theorization 
Abstract:
  This paper proposes an alternative way of looking at the issue of brain
 drain. It tries to bring into focus the crucial role of repatriated
 earnings of emigrants that can potentially help higher absorption of skill
 and sustain a higher level of skill differentiation in the domestic
 economy. A situation might also arise where insufficient demand for the
 skill-using sector gives way to an outcome in which the economy produces
 and exports a higher level of skilled workforce but is unable to absorb
 the same domestically, and this might be potentially welfare immiserizing. 
Journal: The Journal of International Trade & Economic Development 
Pages: 293-309 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Brain drain, increasing returns, monopolistic competition, 
X-DOI: 10.1080/09638190600871602 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871602 
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Template-Type: ReDIF-Article 1.0
Author-Name: S. Subramanian 
Author-X-Name-First: S. 
Author-X-Name-Last: Subramanian 
Title: A sort of Paretian liberalism 
Abstract:
  This paper reviews Amartya Sen's well-known result on 'the impossibility
 of a Paretian liberal'. In so doing, it takes stock of certain
 difficulties associated with conventional social choice theoretic
 formulations of the notion of individual liberty. An alternative
 formulation, in the spirit of an 'outcome-oriented' version of Nozick's
 approach to individual liberty as the freedom to fix certain personal
 features of the world, is advanced. An 'extended' version of a
 conventional social choice function, called a 'social selection function'
 (SSF), is introduced: the domain of the SSF is enlarged to include, apart
 from preference profiles, what are called 'personal choice profiles' and
 'rights-waiving profiles'. Within this framework, it is noted that a
 version of Sen's original impossibility result can be recovered. It is
 also pointed out that there is an alternative, ethically plausible
 construction that can be placed on the notion of 'Paretian liberalism',
 and it is demonstrated that this is a coherent construction. 
Journal: The Journal of International Trade & Economic Development 
Pages: 311-324 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Minimal liberalism, Gibbard liberalism, preference profiles, personal choice profiles, rights-waiving profiles, social choice function, social selection function, Paretian liberalism, 
X-DOI: 10.1080/09638190600871628 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871628 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sugata Marjit 
Author-X-Name-First: Sugata 
Author-X-Name-Last: Marjit 
Author-Name: Vivekananda Mukherjee 
Author-X-Name-First: Vivekananda 
Author-X-Name-Last: Mukherjee 
Author-Name: Martin Kolmar 
Author-X-Name-First: Martin 
Author-X-Name-Last: Kolmar 
Title: Poverty, taxation and governance 
Abstract:
  In a simple model based on political support approach, we show that poor
 and less egalitarian societies may impose a lower tax rate contrary to the
 prediction of the median voter approach. This is consistent with the
 available empirical findings. In the framework developed in this paper,
 the government can strategically design a weak governance system to
 promote informal activities for the poor. This constitutes an alternative
 redistributive strategy other than the standard tax-transfer policy. The
 government chooses the tax rate and the degree of governance
 simultaneously to maximize the average income of the poor in the informal
 sector of the economy, i.e. those who constitute the majority and help in
 winning the election. 
Journal: The Journal of International Trade & Economic Development 
Pages: 325-333 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Taxation, inequality, governance, poverty, 
X-DOI: 10.1080/09638190600871636 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871636 
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Template-Type: ReDIF-Article 1.0
Author-Name: M. Govinda Rao 
Author-X-Name-First: M. Govinda 
Author-X-Name-Last: Rao 
Author-Name: Pinaki Chakraborty 
Author-X-Name-First: Pinaki 
Author-X-Name-Last: Chakraborty 
Title: Multilateral adjustment lending to states in India: Hastening fiscal correction or softening the budget constraint? 
Abstract:
  The widening fiscal deficit of sub-national governments has made the task
 of macroeconomic stabilisation much more difficult and complex. In many
 countries, including India, multilateral lending institutions provide
 assistance for sub-national fiscal reforms through structural adjustment
 loans (henceforth SAL) with conditionalities heavily loaded with fiscal
 correction measures. This paper examines the fiscal impact of SAL in
 Indian states by analysing the quantitative and qualitative aspects of
 SAL-induced fiscal reforms. Econometric investigation of fiscal impact
 reveals that state specific effect of SAL in terms of fiscal consolidation
 has been mixed. There is evidence of softening of the budget constraints
 in some states, but there is also evidence of greater reduction in fiscal
 imbalances of SAL states than non-SAL states. It is also seen that much of
 the fiscal gains have occurred through improved revenue productivity of
 the tax system and not through expenditure restructuring. It is also seen
 that the poorer states have preferred to reduce their developmental
 expenditures to deal with fiscal stress and to comply with fiscal
 correction targets. This, in turn, has had adverse growth implications.
 The paper concludes that the benefits and the acceptability of SAL at the
 sub-national level in India would critically depend on factors such as the
 qualitative change in government expenditure in meeting deficient delivery
 of public services at state level, and the removal of state level social
 and infrastructural bottlenecks for promotion of growth by releasing
 government resources through expenditure restructuring and reform. 
Journal: The Journal of International Trade & Economic Development 
Pages: 335-357 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Structural adjustment loans, fiscal deficit, macroeconomic stabilisation, sub-national governments, 
X-DOI: 10.1080/09638190600871677 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871677 
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Template-Type: ReDIF-Article 1.0
Author-Name: Satish Jain 
Author-X-Name-First: Satish 
Author-X-Name-Last: Jain 
Title: Efficiency of liability rules: A reconsideration 
Abstract:
  In the mainstream of law and economics the notion of negligence is
 defined as the failure to take at least the legally specified due care
 level. In the standard tort model, with this notion of negligence, the
 efficient liability rules are characterized by the condition of negligence
 liability, which requires that if one party is negligent and the other
 non-negligent then the entire accident loss must be borne by the negligent
 party. This paper is concerned with the question of efficiency of
 liability rules when the notion of negligence is defined as failure to
 take some cost-justified precaution. The main result of the paper shows
 that there does not exist any liability rule which is efficient when
 negligence is identified by the existence of some cost-justified untaken
 precaution. 
Journal: The Journal of International Trade & Economic Development 
Pages: 359-373 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Liability rules, efficient liability rules, notion of negligence, untaken precaution, negligence rule, 
X-DOI: 10.1080/09638190600871685 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871685 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:3:p:359-373




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Chur Chao 
Author-X-Name-First: Chi-Chur 
Author-X-Name-Last: Chao 
Author-Name: Bharat Hazari 
Author-X-Name-First: Bharat 
Author-X-Name-Last: Hazari 
Author-Name: Eden Yu 
Author-X-Name-First: Eden 
Author-X-Name-Last: Yu 
Title: Rising wage inequality in developing economies: Privatization and competition 
Abstract:
  Using a dual structure depicting a developing economy, this paper shows
 that increased partial privatization or foreign competition can lead to
 wage inequality between skilled and unskilled labor. In addition, rising
 wage inequality can be triggered by inflows of unskilled labor or outflows
 of skilled labor and/or capital. Further, partial privatization or foreign
 competition reduces the urban output, thereby raising the goods price and
 unemployment ratio. These effects lower social welfare of the economy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 375-385 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Wage inequality, privatization, competition, developing economies, 
X-DOI: 10.1080/09638190600871719 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871719 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:3:p:375-385




Template-Type: ReDIF-Article 1.0
Author-Name: Manmohan Agarwal 
Author-X-Name-First: Manmohan 
Author-X-Name-Last: Agarwal 
Author-Name: Sayan Samanta 
Author-X-Name-First: Sayan 
Author-X-Name-Last: Samanta 
Title: Structural adjustment, governance, economic growth and social progress 
Abstract:
  This paper analyses the interconnection between social achievement,
 structural adjustment, governance and economic performance. It does this
 by developing indices to measure social progress, measured by achievement
 of the Millennium Development Goals, and structural adjustment, measured
 by achieving the goals specified in the Washington consensus. These
 indices are constructed using the technique pioneered by Nagar & Basu,
 which uses the information contained in the correlation among the
 different indicators. Governance is measured by an index developed by the
 World Bank, and economic performance by growth of per capital income.
 Economic growth is not correlated with social progress, structural
 adjustment or governance. However, structural adjustment is not inimical
 to social progress. Furthermore, while the governance index is not
 correlated with growth of per capita income it is very highly correlated
 with social progress. 
Journal: The Journal of International Trade & Economic Development 
Pages: 387-401 
Issue: 3 
Volume: 15 
Year: 2006 
Keywords: Social progress, structural adjustment, governance, economic growth, 
X-DOI: 10.1080/09638190600871784 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600871784 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:3:p:387-401




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Elbadawi 
Author-X-Name-First: Ibrahim 
Author-X-Name-Last: Elbadawi 
Author-Name: Taye Mengistae 
Author-X-Name-First: Taye 
Author-X-Name-Last: Mengistae 
Author-Name: Albert Zeufack 
Author-X-Name-First: Albert 
Author-X-Name-Last: Zeufack 
Title: Market access, supplier access, and Africa's manufactured exports: A firm level analysis 
Abstract:
  In a large cross-country sample of manufacturing establishments drawn
 from 188 cities, average exports per establishments are smaller for
 African firms than for businesses in other regions. Based on the
 estimation of firm level exporting equations, we show that this is mainly
 because, on average, African firms face more adverse economic geography
 and operate in poorer institutional settings. One part of the effect of
 geography operates through Africa's lower 'foreign market access': African
 firms are located further away from wealthier or denser potential export
 markets. A second occurs through the region's lower 'supplier access':
 African firms face steeper input prices, partly because of their physical
 distance from cheaper foreign suppliers, and partly because domestic
 substitutes for importable inputs are more expensive. Africa's poorer
 institutions reduce its manufactured exports directly, as well as
 indirectly, by lowering foreign market access and supplier access. Both
 geography and institutions influence average firm level exports
 significantly more through their effect on the number of exporters than
 through their impact on how much each exporter sells onto foreign markets. 
Journal: The Journal of International Trade & Economic Development 
Pages: 493-523 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Economic geography, institutions, international trade, economic development, manufacturing, Africa, 
X-DOI: 10.1080/09638190601037567 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037567 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:493-523




Template-Type: ReDIF-Article 1.0
Author-Name: Lily Jiang 
Author-X-Name-First: Lily 
Author-X-Name-Last: Jiang 
Author-Name: Yi-Pin Su 
Author-X-Name-First: Yi-Pin 
Author-X-Name-Last: Su 
Title: Foreign direct investment and wage differentials in Taiwan 
Abstract:
  The ease of restrictions on foreign direct investment in China since 1990
 has attracted a continuous and dramatic flow of outward investment from
 Taiwan to the mainland. At the same time, the relative wages for skilled
 workers in Taiwan have risen mildly despite a rapid increase in the share
 of educated workers in its labor market. The aim of this paper is to
 explore the linkage between capital outflows to China and the wage share
 of skilled workers in Taiwan over the period 1991&#xa0;-&#xa0;2001. We
 find that the pattern of changes in relative wages is consistent with
 shifts in the relative demand for skilled labor. For the most part, the
 increases in the relative demand for skilled workers could be attributable
 to within-industry factors. Findings also indicate that outward direct
 investment to China has a significantly positive impact on the skilled
 labor wage share. 
Journal: The Journal of International Trade & Economic Development 
Pages: 525-536 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Foreign direct investment, wage differentials, wage inequality, 
X-DOI: 10.1080/09638190601037609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037609 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:525-536




Template-Type: ReDIF-Article 1.0
Author-Name: George Darko 
Author-X-Name-First: George 
Author-X-Name-Last: Darko 
Author-Name: Richard Dusansky 
Author-X-Name-First: Richard 
Author-X-Name-Last: Dusansky 
Author-Name: Pankaj Maskara 
Author-X-Name-First: Pankaj 
Author-X-Name-Last: Maskara 
Author-Name: Nadeem Naqvi 
Author-X-Name-First: Nadeem 
Author-X-Name-Last: Naqvi 
Title: The gains from trade in a small monetary economy 
Abstract:
  In general equilibrium under constant returns to scale and perfect
 competition the normative theory of international trade is examined for a
 monetary, not a barter, economy. Persons exhibit flow demand for real
 balances just as they do for commodities because money provides well-being
 salient utility insofar as its content is desire fulfilment, satisfaction
 or usefulness. For such a monetary small open economy, an additional
 terms-of-trade effect or inflationary effect of a tariff is identified,
 which drives many unusual results including the sub-optimality of free
 trade, unless the exchange rate is flexible and the commodities and real
 balances are weakly separable. 
Journal: The Journal of International Trade & Economic Development 
Pages: 403-430 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Monetary economy, international trade, normative theory, tariff, quota, voluntary export constraint, exchange rate, 
X-DOI: 10.1080/09638190601037427 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037427 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:403-430




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Ota 
Author-X-Name-First: Rui 
Author-X-Name-Last: Ota 
Title: Adjustability in production and dynamic effects of domestic competition policy 
Abstract:
  This study explores the effect on trade balance of suppressing
 competition in the domestic non-tradable sector through the interaction
 between the short-run adjustment and the long-run adjustment in production
 process. Constructing a model that can capture a more short-run aspect
 than Yano (2001), this study demonstrates that the effect depends on the
 factor intensity ranking between the tradable sector and the non-tradable
 sector. In this model, a change in the price of the tradable good at time
 0 plays an important role to explain this result. 
Journal: The Journal of International Trade & Economic Development 
Pages: 431-439 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Adjustability in production, competition policy, trade balance, short run, long run, 
X-DOI: 10.1080/09638190601037435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037435 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:431-439




Template-Type: ReDIF-Article 1.0
Author-Name: Karine Gente 
Author-X-Name-First: Karine 
Author-X-Name-Last: Gente 
Author-Name: Miguel Leon-Ledesma 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Leon-Ledesma 
Title: Does the world real interest rate affect the real exchange rate? The South East Asian experience 
Abstract:
  We analyze the consequences of US real interest rate rises on the real
 exchange rate (RER) in a two-good overlapping generations model of a
 semi-small open economy. The equilibrium RER depreciates (appreciates)
 when the world interest rate increases in a debtor (creditor) country. We
 then study empirically the reaction of the RER in a set of South East
 Asian (SEA) countries to shocks in US real interest rates. The results
 support the conclusions of the theory model at least for Singapore,
 Thailand and South Korea during the period 1980&#xa0;-&#xa0;2001. This
 points towards world interest rate shocks as possible trigger factors for
 exchange rate crises during the adjustment process towards the new
 equilibrium. 
Journal: The Journal of International Trade & Economic Development 
Pages: 441-467 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Real exchange rate, overlapping generations, world interest rate shock, 
X-DOI: 10.1080/09638190601037443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037443 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:441-467




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Author-Name: Ida Mirzaie 
Author-X-Name-First: Ida 
Author-X-Name-Last: Mirzaie 
Title: Consumption and macroeconomic policies: Theory and evidence from developing countries 
Abstract:
  This paper examines determinants of private consumption in a sample of
 developing countries. The empirical model includes income, a proxy for the
 cost of consumption, and the exchange rate. Anticipated movements in these
 determinants are likely to trigger adjustment in planned consumption,
 while unanticipated changes determine random transitory adjustment in
 consumption. Fluctuations in private consumption are mostly random with
 respect to unanticipated changes in income and, to a lesser extent, the
 exchange rate. Consumption increases during cyclical expansion of income
 and decreases in the face of an unanticipated increase in the cost of
 consumption. Exchange rate fluctuations have mixed results on private
 consumption. As for the effects of domestic policies, fiscal policy has a
 limited, and sometimes negative, effect on private consumption. Monetary
 growth, in contrast, stimulates an increase in private consumption. This
 evidence supports recent calls to decrease the size of government and
 enhance the role of monetary policy in stimulating private activity in
 developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 469-491 
Issue: 4 
Volume: 15 
Year: 2006 
Keywords: Consumption, macroeconomic policies, developing countries, 
X-DOI: 10.1080/09638190601037500 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037500 
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:469-491




Template-Type: ReDIF-Article 1.0
Author-Name: Dawn Richards Elliott 
Author-X-Name-First: Dawn Richards 
Author-X-Name-Last: Elliott 
Title: Caribbean regionalism and the expectation of increased trade: Insights from a time-series gravity model 
Abstract:
  CARICOM's expectation that integration in the region promises economic
 gains by providing an avenue for increased regional and extra-regional
 trade has been criticized by many scholars. These criticisms receive mixed
 support from a limited sample of cross-sectional analysis with a general
 focus on the impact of integration on trade flows. Since much of the data
 in gravity models are time-dependent, and since CARICOM trade is and has
 been dominated by three nations, Barbados, Jamaica, and Trinidad/Tobago, I
 evaluate this expectation using a three dummy gravity model for each
 nation. The results concur with the descriptive ones; regional integration
 does not necessarily increase trade flows and may in some cases be
 associated with a decline. While Caribbean integration has provided
 numerous non-economic gains, the continued stress on trade is potentially
 problematic. Trade has had an unfortunate place in policy-making in the
 region as governments fluctuate between outright rejection to the current
 state of grudging acceptance of minimally restricted trade. Trade, while
 positively correlated with growth, is neither inherently good nor bad for
 developing countries as current debates seem to suggest. Instead, trade
 offers an opportunity for economic gains that is best realized within an
 environment that supports skilled resources, sound and credible government
 institutions, and technological development. Without these fundamentals,
 the pursuit of economic gains via regional integration will, likely,
 continue to disappoint. 
Journal: The Journal of International Trade & Economic Development 
Pages: 117-136 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: Gravity model, Caribbean, regionalism, integration, time-series analysis, 
X-DOI: 10.1080/09638190601165830 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165830 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:117-136




Template-Type: ReDIF-Article 1.0
Author-Name: Masaru Sasaki 
Author-X-Name-First: Masaru 
Author-X-Name-Last: Sasaki 
Title: International migration in an equilibrium matching model 
Abstract:
  This paper considers the effects of labor mobility in a specific factors
 model when unemployment arises for matching-theoretic reasons. Immigration
 raises the welfare of domestic workers even though the increasing labor
 supply decreases wages if firms create more jobs in response to inflows of
 immigrants. The determinants of the patterns of labor movements are
 considered in a two-country model. Unemployed workers decide whether to
 leave their country not only on the basis of the wage differential, but
 also in response to the difference in unemployment rates between the two
 countries. The two countries can diverge in equilibrium in the sense that
 one country exhibits a high wage but a high unemployment rate whereas the
 other exhibits a low wage but a low unemployment rate. It is possible to
 see movements of workers from a high-wage country to a low-wage country if
 the unemployment rate is higher in the former than in latter and wages are
 not high enough to compensate for the high level of unemployment in the
 high-wage country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-29 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: Unemployment, matching theorem, wages and labor mobility, 
X-DOI: 10.1080/09638190601165392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165392 
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Template-Type: ReDIF-Article 1.0
Author-Name: Winston Chang 
Author-X-Name-First: Winston 
Author-X-Name-Last: Chang 
Title: Optimal trade, industrial, and privatization policies in a mixed duopoly with strategic managerial incentives 
Abstract:
  This paper examines optimal trade, industrial, and privatization policies
 in a home-market model of mixed international duopoly with strategic
 managerial incentives. Under linear demand and constant marginal costs,
 the optimal degree of privatization is shown to depend crucially on cost
 and demand parameters and on the availability of strategic trade and
 industrial policies. If both firms are equally efficient, optimal trade
 and industrial policies drive out the foreign firm and the privatization
 policy loses its effect on national welfare; however, if the home firm is
 less efficient, then full privatization combined with an import tariff and
 a production subsidy is optimal for the home country, while an export
 subsidy is optimal for the foreign country. If trade and industrial
 policies are unavailable and if both firms are equally efficient, full
 state-ownership, which drives out the foreign firm, becomes optimal;
 however, if the home firm is less efficient, only partial privatization is
 optimal, The state-ownership share is increased if either the market size
 grows, the home firm's efficiency increases, or the foreign firm's
 efficiency decreases. Further, the paper demonstrates the potential
 conflict between privatization and trade liberalization policies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 31-52 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: Mixed duopoly, strategic incentives, trade and privatization policy, 
X-DOI: 10.1080/09638190601165459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165459 
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Template-Type: ReDIF-Article 1.0
Author-Name: K. C. Fung 
Author-X-Name-First: K. C. 
Author-X-Name-Last: Fung 
Author-Name: Andrea Maechler 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Maechler 
Title: Trade liberalization and the environment: The case of intra-industry trade 
Abstract:
  While a large body of literature examines the environmental impact of
 trade on the environment, this discussion focuses largely on the context
 of inter-industry trade. Empirical evidence has long suggested that an
 increasing share of international trade takes the form of intra- rather
 than inter-industry trade. In an attempt to fill this gap, the present
 paper uses a price-setting duopoly model of intra-industry trade to
 highlight the environmental consequences of trade liberalization when
 oligopolistic rivalry rather than comparative advantage drives
 international trade. We find that the environmental impact of trade
 liberalization depends mostly on two factors, namely, on the nature of
 pollution (i.e. whether it is local, transboundary or global) and on which
 country liberalizes trade (i.e. whether it is the 'clean' country or the
 'dirty' country). 
Journal: The Journal of International Trade & Economic Development 
Pages: 53-69 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: Trade, environment, intra-industry trade, 
X-DOI: 10.1080/09638190601165509 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165509 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:53-69




Template-Type: ReDIF-Article 1.0
Author-Name: Krisztina Kis-Katos 
Author-X-Name-First: Krisztina 
Author-X-Name-Last: Kis-Katos 
Title: Does globalization reduce child labor? 
Abstract:
  This paper considers the effects of trade liberalization on child labor
 that arises out of subsistence needs. It argues that favorable income
 effects are most likely to reduce the need for child labor in the South,
 even when export goods have a necessity character. However, in very poor
 economies, aggregate hours of child labor can also increase as a result of
 more open trade. Although the poorest families are the ones who benefit
 the most from trade in a Heckscher&#xa0;-&#xa0;Ohlin setting, their income
 gains might not be high enough to make them withdraw their children from
 work, while adverse income effects can raise the incidence of child labor
 among the less poor. The paper provides empirical support for the argument
 by finding that in a country panel, increases in trade openness are
 associated with significantly smaller reductions in child labor among the
 poorest food exporters than among food exporters on average. 
Journal: The Journal of International Trade & Economic Development 
Pages: 71-92 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: Child labor, international trade, income distribution, 
X-DOI: 10.1080/09638190601165558 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165558 
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Template-Type: ReDIF-Article 1.0
Author-Name: Luca De Benedictis 
Author-X-Name-First: Luca 
Author-X-Name-Last: De Benedictis 
Author-Name: Lucia Tajoli 
Author-X-Name-First: Lucia 
Author-X-Name-Last: Tajoli 
Title: Openness, similarity in export composition, and income dynamics 
Abstract:
  A relevant share of the theoretical and empirical analysis on economic
 growth has been devoted to finding a specific role for international trade
 in reinforcing countries' growth rates. Not as much attention has been
 dedicated to the role of sectoral composition of export in influencing the
 effect of trade on income convergence. In this paper we look at this issue
 along the line of research on multiple regimes and convergence clubs,
 considering how openness and similarity in export composition among
 countries can induce convergence in income levels among the same
 countries. We apply our analysis to the catching-up of income levels of
 Central and Eastern Europe Countries to the EU benchmark. We explicitly
 consider the sectoral export patterns of the CEECs by comparing them to
 those of the 15 old members of the EU, focusing on countries'
 specialization as suppliers for the EU market. Our main result is that
 similarity in export composition has a positive, significant and nonlinear
 impact on catching-up. Results are robust to controlling for openness and
 country-size and for investment, schooling, and the quality of
 institutions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 93-116 
Issue: 1 
Volume: 16 
Year: 2007 
Keywords: CEECs, transition, growth, semiparametrics, 
X-DOI: 10.1080/09638190601165798 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165798 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:93-116




Template-Type: ReDIF-Article 1.0
Author-Name: Raja Kali 
Author-X-Name-First: Raja 
Author-X-Name-Last: Kali 
Author-Name: Fabio Mendez 
Author-X-Name-First: Fabio 
Author-X-Name-Last: Mendez 
Author-Name: Javier Reyes 
Author-X-Name-First: Javier 
Author-X-Name-Last: Reyes 
Title: Trade structure and economic growth 
Abstract:
  How do the number of trade partners and the concentration of trade among
 partners affect the economic growth of a country? We refer to these
 characteristics as the structure of trade, and explore this question
 empirically in this study. We find that the structure of trade,
 independently of the level of trade itself, has an important effect on the
 rate of economic growth. The results of the study suggest that the number
 of trading partners is positively correlated with growth across all
 countries, and this effect is more pronounced for rich countries. Trade
 concentration is positively correlated with growth for all countries, and
 the effect is concentrated in poor countries. Previous work has overlooked
 these characteristics of trade, although we find them to be quite relevant
 and that they could lead to new ways of understanding the
 trade&#xa0;-&#xa0;growth relationship. 
Journal: The Journal of International Trade & Economic Development 
Pages: 245-269 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Trade, growth, trade structure, trade concentration, 
X-DOI: 10.1080/09638190701325649 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325649 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:245-269




Template-Type: ReDIF-Article 1.0
Author-Name: Hatem Samman 
Author-X-Name-First: Hatem 
Author-X-Name-Last: Samman 
Author-Name: Sheikh Shahnawaz 
Author-X-Name-First: Sheikh 
Author-X-Name-Last: Shahnawaz 
Title: The GATS and liberalization in a natural-resource rich country 
Abstract:
  We highlight the role of natural resources in countries that use resource
 revenues to subsidize employment in state-owned services sectors by
 developing a model of service provision where domestic incumbents and a
 foreign entrant compete. We find that when natural resource prices have a
 higher likelihood of increasing, domestic firms control most of the market
 share but that industry output drops. However, the output of the services
 industry rises with domestic firms losing market share when natural
 resource prices are likely to go down. This suggests that a government
 focused narrowly only on the growth and development of its economy would
 prefer services liberalization when natural resource prices are likely to
 be higher. 
Journal: The Journal of International Trade & Economic Development 
Pages: 271-292 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Services trade, liberalization, natural resources, public enterprise, 
X-DOI: 10.1080/09638190701325748 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325748 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:271-292




Template-Type: ReDIF-Article 1.0
Author-Name: Howell H. Zee 
Author-X-Name-First: Howell H. 
Author-X-Name-Last: Zee 
Title: Export taxes in times of trade surpluses 
Abstract:
  This paper studies the comparative effects between an exchange rate
 appreciation and the introduction of an export tax as alternative policy
 responses to address trade surplus concerns in a country with a fixed
 exchange rate regime facing a downward-sloping world demand curve for its
 exports. It is found that an exchange rate appreciation would not alter
 the nature of the long-run equilibrium, and would thus be welfare-neutral.
 The appreciation would merely supplant foreign reserve accumulation as the
 mechanism that transits an economy from the short- to long-run equilibria,
 resulting in a lower long-run stock of foreign reserves. By comparison, an
 export tax would raise the export price in foreign-currency terms.
 Provided that the tax revenue is transferred back to consumers in a
 non-distorting manner, the welfare consequence of the tax would depend
 largely on the elasticity of the world demand for the country's exports.
 If the demand is inelastic, both national welfare and the stock of foreign
 reserves would necessarily rise in the long run as much of the tax burden
 would be shifted forward to foreign consumers. If the demand is elastic,
 the change to national welfare would depend on the relative magnitudes of
 a number of parameters, including most notably the import content of
 exports. 
Journal: The Journal of International Trade & Economic Development 
Pages: 137-157 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Export taxes, exchange rate appreciation, trade surpluses, 
X-DOI: 10.1080/09638190701325474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325474 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:137-157




Template-Type: ReDIF-Article 1.0
Author-Name: Orn B. Bodvarsson 
Author-X-Name-First: Orn B. 
Author-X-Name-Last: Bodvarsson 
Author-Name: William H. Kaempfer 
Author-X-Name-First: William H. 
Author-X-Name-Last: Kaempfer 
Author-Name: Anton D. Lowenberg 
Author-X-Name-First: Anton D. 
Author-X-Name-Last: Lowenberg 
Author-Name: William Mertens 
Author-X-Name-First: William 
Author-X-Name-Last: Mertens 
Title: The political market for immigration restrictions: Model and test 
Abstract:
  A two-sector model of the destination economy is developed in order to
 determine the distributional effects of immigration. In one sector, native
 and immigrant workers are substitutes in production, while in the other
 they are complements. The two industries are assumed to draw immigrants
 from the same pool, whose size is exogenous to employers and set by
 politicians. A political market for an endogenous immigration quota arises
 as a consequence of the conflicting interests of the two native worker
 groups, as well as those of lobbying groups organized along non-labor
 market lines. A reduced form expression for the equilibrium quota is
 derived. The size of the quota is determined by the levels of product and
 labor demand in the two industries, lobbying costs of native workers, the
 degree of substitutability or complementarity in production between native
 and immigrant labor, the proportions in which the immigrant workforce is
 divided between the two industries, the wage elasticities of demand for
 native and immigrant labor, the influence of groups opposed to immigration
 on non-economic grounds, and the size of the immigrant population in the
 destination country. The model is tested using annual data on employment
 visas issued by US authorities. It is found that political pressure for
 tighter immigration controls is dominant during periods of economic
 expansion, while technological progress, a growing immigrant community and
 a larger share of immigrants from Europe lead to looser immigration
 restrictions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 159-192 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Immigration quotas, interest groups, endogenous policy, 
X-DOI: 10.1080/09638190701325490 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325490 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:159-192




Template-Type: ReDIF-Article 1.0
Author-Name: Ryusuke Ihara 
Author-X-Name-First: Ryusuke 
Author-X-Name-Last: Ihara 
Author-Name: Roki Iwahashi 
Author-X-Name-First: Roki 
Author-X-Name-Last: Iwahashi 
Title: Attracting foreign investment: Optimal ODA policy with trade liberalization 
Abstract:
  This paper presents a theoretical framework for analyzing the efficient
 use of foreign aid (ODA) in attracting foreign direct investment, based on
 the variant of recent economic geography models. A salient result is that
 recipient countries with less trade openness should direct ODA towards
 social infrastructure, whereas it should be aimed toward developing
 economic infrastructure if the target country is a sufficiently open
 economy. The second result is that, in spite of optimal ODA policy,
 capital might outflow temporarily from less-developed countries at the
 beginning of trade liberalization. These results are consistent with
 empirical observations of 74 recipient countries for the time period
 1991&#xa0;-&#xa0;2001. 
Journal: The Journal of International Trade & Economic Development 
Pages: 193-211 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Aid policy, foreign direct investment, trade liberalization, new economic geography, 
X-DOI: 10.1080/09638190701325524 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325524 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:193-211




Template-Type: ReDIF-Article 1.0
Author-Name: Mordechai E. Kreinin 
Author-X-Name-First: Mordechai E. 
Author-X-Name-Last: Kreinin 
Author-Name: Michael G. Plummer 
Author-X-Name-First: Michael G. 
Author-X-Name-Last: Plummer 
Title: Regional groupings, discrimination, and erosion of preferences: Effects of EU enlargement on the Mediterranean Basin 
Abstract:
  With the spread of regional and bilateral trade arrangements, there is
 always concern about the discriminatory impact on non-members. For
 example, the establishment of NAFTA deprived the Caribbean Basin of its
 preferential status vis-a-vis Mexico in the US market. Or alternatively,
 the enlargement of the EU from 15 to 25 countries may have adverse
 discriminatory effects on outsiders. This paper develops a method for
 assessing the effect of regional integration on non-member
 (non-integrating) countries that sustain trade diversion and/or lose
 preferential status in the integrating area. It then applies this
 methodology to gauge the impact of the 2004 EU Enlargement from 15 to 25
 countries on the Mediterranean Basin. The method consists of three
 sequential steps: (1) determine the commodity overlap in the exports to
 the EU-15 between the acceding 10 and the Mediterranean countries. This is
 done by use of correlation coefficients and a specially-devised
 'export-similarity index'; (2) to the extent that significant overlap is
 found, identify the product groups in which it exists; and (3) determine
 the degree of protection in the EU-15 in those products and, hence, the
 erosion of competitive position of outsiders. Textiles and clothing are
 the sectors hit hardest in the Mediterranean countries by the EU
 enlargement. 
Journal: The Journal of International Trade & Economic Development 
Pages: 213-230 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Economic integration, preference erosion, trade diversion, MENA exports, EU commercial policy, 
X-DOI: 10.1080/09638190701325540 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325540 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:213-230




Template-Type: ReDIF-Article 1.0
Author-Name: Anil Mishra 
Author-X-Name-First: Anil 
Author-X-Name-Last: Mishra 
Author-Name: Kevin Daly 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Daly 
Title: Effect of quality of institutions on outward foreign direct investment 
Abstract:
  In this paper we study the effect of quality of institutions in the OECD
 and Asian host countries on outward foreign direct investment (FDI) stocks
 of source OECD countries using International Country Risk Guide governance
 indicators, for the period 1991 to 2001. We find that better institutions
 in the host countries have an overall positive and significant effect on
 source countries' outward FDI stocks. The strength and impartiality of the
 legal system, popular observance of law, strength and quality of
 bureaucracy and government stability in host countries have a direct
 effect on source countries' outward FDI stocks. Interestingly, trade
 changes sign and loses significance in two-stage least squares regressions
 compared with theoretical expectation. Furthermore, skill proxied by
 labour abundance in source countries relative to host countries appears to
 be insignificant in determining source countries' outward FDI stock. 
Journal: The Journal of International Trade & Economic Development 
Pages: 231-244 
Issue: 2 
Volume: 16 
Year: 2007 
Keywords: Foreign direct investment, governance indicators, institutions, 
X-DOI: 10.1080/09638190701325573 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701325573 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:2:p:231-244




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Ghosh 
Author-X-Name-First: Amit 
Author-X-Name-Last: Ghosh 
Author-Name: Ramkishen S. Rajan 
Author-X-Name-First: Ramkishen S. 
Author-X-Name-Last: Rajan 
Title: How high is exchange rate pass-through in India? Has it changed over time? 
Abstract:
  Concerns about relatively high degrees of exchange rate pass-through in a
 number of emerging economies have contributed to a fear of floating.
 Despite the obvious policy relevance of this issue there is hardly any
 existing literature that has examined aggregate CPI pass-through for
 India, which has been liberalizing its economy since 1991. This paper
 estimates exchange rate pass-through (ERPT) at the aggregate level into
 India's CPI for the period 1980Q1&#xa0;-&#xa0;2005Q3. We also analyze
 whether exchange rate pass-through in India has changed over time,
 particular since 1991, which was the beginning of the country's economic
 liberalization program. 
Journal: The Journal of International Trade & Economic Development 
Pages: 373-382 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Exchange rate pass-though, fear of floating, India, inflation, NEER, 
X-DOI: 10.1080/09638190701526832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701526832 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:373-382




Template-Type: ReDIF-Article 1.0
Author-Name: Sohrab Abizadeh 
Author-X-Name-First: Sohrab 
Author-X-Name-Last: Abizadeh 
Author-Name: Mehmet Serkan Tosun 
Author-X-Name-First: Mehmet Serkan 
Author-X-Name-Last: Tosun 
Title: Open trade and skilled and unskilled labor productivity in developing countries: A panel data analysis 
Abstract:
  This paper examines the effect of trade openness on the productivity of
 skilled and unskilled labor in a group of 36 developing countries using
 panel data and fixed effect approach. We have developed and utilized an
 empirical model that readily lends itself to testing the hypothesis posed.
 Our results support the hypothesis that trade openness has a positive and
 significant impact on labor productivity for both skilled and unskilled
 labor in the sample countries. We also observe that the beneficial effect
 of trade openness is relatively stronger for the skilled labor than the
 unskilled labor. We conclude that contrary to the claim made by Mayda and
 Rodrik (2001), skilled workers in developing countries may oppose
 protectionism. When adjusting for the purchasing power parity, the impact
 of trade openness on labor productivity, although positive and
 significant, is not as pronounced as it is for other definitions of
 openness. 
Journal: The Journal of International Trade & Economic Development 
Pages: 383-399 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Trade openness, productivity, skilled labor, unskilled labor, developing countries, panel data, 
X-DOI: 10.1080/09638190701526949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701526949 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:383-399




Template-Type: ReDIF-Article 1.0
Author-Name: Debarshi Das 
Author-X-Name-First: Debarshi 
Author-X-Name-Last: Das 
Title: Persistence of small-scale, family farms in India: A note 
Abstract:
  The paper analyses the proliferation of small scale family farms in
 India. It contends that widespread involuntary unemployment in the rural
 economy is the chief reason for this phenomenon. The problem can be
 considered as that of coordination failure. The paper attempts to show
 that such a problem can be overcome through planned, investment promotion
 by the state, which by reducing unemployment induces the entry of
 capitalist farmers. 
Journal: The Journal of International Trade & Economic Development 
Pages: 401-410 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Family farming, capitalist farming, unemployment, externality, returns on investment, co-ordination problem, 
X-DOI: 10.1080/09638190701527004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701527004 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:401-410




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Martinez-Zarzoso 
Author-Name: Felicitas D. Nowak-Lehmann 
Author-X-Name-First: Felicitas D. 
Author-X-Name-Last: Nowak-Lehmann 
Title: Is distance a good proxy for transport costs? The case of competing transport modes 
Abstract:
  In this paper, we analyze separately the determinants of maritime
 transport and road transport costs for Spanish exports to Poland and
 Turkey (markets for which maritime and road transport are competing modes)
 and investigate the different effects of these costs on international
 trade. First, we investigate the extent to which maritime and road
 transport costs depend on different factors such as unit values,
 distances, transport conditions, service structures, and service quality.
 Second, we analyze the relative importance of road and maritime transport
 costs in comparison with distance measures as determinants of trade flows.
 The main results of this investigation indicate that real distance is not
 a good proxy for transportation costs and identify the central variables
 influencing road and maritime transportation costs: for both modes,
 transport conditions are strong determinants, whereas efficiency and
 service quality are more important for maritime transport costs, and
 geographical distance is more important for road transport. Road and
 maritime transport costs are central explanatory factors of exports and
 they seem to deter trade to a greater extent than road or maritime transit
 time when endogeneity is considered. 
Journal: The Journal of International Trade & Economic Development 
Pages: 411-434 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Transport costs, transport mode, Spanish exports, international trade, 
X-DOI: 10.1080/09638190701527186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701527186 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:411-434




Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Demidova 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Demidova 
Author-Name: Kala Krishna 
Author-X-Name-First: Kala 
Author-X-Name-Last: Krishna 
Title: Trade and trade policy with differentiated products: A Chamberlinian&#xa0;-&#xa0;Ricardian model. A comment 
Abstract:
  This paper shows that the results of Venables (1987) depend critically on
 the assumption that there are no fixed costs of trade. The introduction of
 fixed costs of exporting, while making the model more consistent with the
 empirical evidence, leads to the opposite conclusion that technological
 progress in one country cannot harm the welfare of its trading partner.
 However, the results can be obtained in a richer setting with
 heterogeneous firms. 
Journal: The Journal of International Trade & Economic Development 
Pages: 435-441 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Technological progress, fixed costs of exporting, 
X-DOI: 10.1080/09638190701529372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701529372 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:435-441




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Laffargue 
Author-X-Name-First: Jean-Pierre 
Author-X-Name-Last: Laffargue 
Title: Classical trade protectionism 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 443-446 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638190701529414 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701529414 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:443-446




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ozgur Kayalica 
Author-X-Name-First: M. Ozgur 
Author-X-Name-Last: Kayalica 
Author-Name: Sajal Lahiri 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Lahiri 
Title: Domestic lobbying and foreign direct investment. The role of policy instruments 
Abstract:
  Following the Common Agency approach to political equilibrium, we examine
 how domestic interest groups can influence national policies toward FDI
 and how the choice of instrument by the government can affect lobbying
 activities. Domestic firms lobby for lower subsidies when a discriminatory
 subsidy on FDI is applied. However, when a subsidy is applied uniformly to
 both groups, they may lobby for higher subsidies. The nature of lobbying
 is also different for proportional and lump-sum profit subsidies when
 uniformly applied. The qualitative effect of the number of domestic firms
 or the degree of corruption on the equilibrium depends on the choice of
 instruments. Finally, with the help of numerical simulation, we examine
 whether there is any potential conflict between the government and the
 lobby groups on the choice of the instrument. 
Journal: The Journal of International Trade & Economic Development 
Pages: 299-323 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Foreign direct investment, lobbying, subsidies, 
X-DOI: 10.1080/09638190701524316 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701524316 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:299-323




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmudul Anam 
Author-X-Name-First: Mahmudul 
Author-X-Name-Last: Anam 
Author-Name: Shin-Hwan Chiang 
Author-X-Name-First: Shin-Hwan 
Author-X-Name-Last: Chiang 
Title: Rural&#xa0;-&#xa0;urban migration of family labor: A portfolio model 
Abstract:
  In this paper we develop a family-based rural to urban migration model
 and offer an alternative explanation of urban underemployment to the
 well-known Harris-Todaro (H-T) model. We assume that the risk-averse
 family allocated its members to the rural, urban formal and urban informal
 sectors so as to maximize the expected family utility. Rural and urban
 informal sector incomes are assumed to be stochastic and potentially
 correlated creating an incentive for families to place members in the
 urban informal sector to reduce the variance of aggregate income. The
 spatial allocation or migration problem thus coincides with the portfolio
 choice model in finance. A major finding of the paper is that conventional
 policy wisdom, derived from the individualistic, expected-income
 maximizing H-T model no longer holds true in the family-based 'portfolio'
 migration model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 325-335 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Uncertainty, migration, family, risk diversification JEL, 
X-DOI: 10.1080/09638190701526477 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701526477 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:325-335




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel K. K. Lartey 
Author-X-Name-First: Emmanuel K. K. 
Author-X-Name-Last: Lartey 
Title: Capital inflows and the real exchange rate: An empirical study of sub-Saharan Africa 
Abstract:
  This paper investigates the question of whether capital inflows,
 particularly Foreign Direct Investment (FDI), cause the real exchange rate
 to appreciate. It also examines whether different forms of captial inflow
 have variable effects on the real exchange rate. The paper estimates an
 empirical real exchange rate model specifying a set of capital inflow
 variables using dynamic panel techniques. Based on data for a sample of
 sub-Saharan African countries for the period 1980&#xa0;-&#xa0;2000, the
 study reveals FDI as the category of private capital inflow that causes
 the real exchange rate to appreciate. The results also show that an
 increase in official aid causes a real appreciation, the magnitude being
 greater compared to that associated with FDI. 
Journal: The Journal of International Trade & Economic Development 
Pages: 337-357 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Capital inflows, Real exchange rate, Dutch disease, Sub-Saharan Africa, 
X-DOI: 10.1080/09638190701526667 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701526667 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:337-357




Template-Type: ReDIF-Article 1.0
Author-Name: Don P. Clark 
Author-X-Name-First: Don P. 
Author-X-Name-Last: Clark 
Title: Distance, production, and trade 
Abstract:
  This paper investigates the relationship between geographical distance
 and both the extent of trade and foreign production. Industries engaged in
 exporting and co-production activities across national boundaries are
 identified through their use of the Offshore Assembly Provisions in the US
 tariff code. Findings counter conventional wisdom. Trade and foreign
 production activities are found to drop off rapidly over the first third
 of the distance scale, rise over the middle portion, reach a peak in the
 final third, and decline thereafter. This pattern suggests frictions
 associated with distance can be offset by government policies and other
 country attributes. Management control, information and communications
 costs, and the ability to implement just-in-time delivery strategies may
 not be as distance sensitive as previously thought. Theorists should
 re-evaluate the role of distance in trade models and refrain from using
 distance as a proxy for transport costs. 
Journal: The Journal of International Trade & Economic Development 
Pages: 359-371 
Issue: 3 
Volume: 16 
Year: 2007 
Keywords: Geographical distance, co-production activity, global sourcing, 
X-DOI: 10.1080/09638190701526709 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701526709 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:3:p:359-371




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Navigating new waters: A reader on ACP-EU trade relations (volumes 1 & 2) 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 559-561 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638190701600355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600355 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:4:p:559-561




Template-Type: ReDIF-Article 1.0
Author-Name: Ryuichi Tanaka 
Author-X-Name-First: Ryuichi 
Author-X-Name-Last: Tanaka 
Title: Timing of trade liberalization 
Abstract:
  This paper studies the effects of trade liberalization on growth and
 long-run global income inequality using a two-country model of human
 capital accumulation by credit-constrained households. I show that the
 timing of trade liberalization is a crucial determinant of its effects on
 growth. Moreover, I show that the size of the long-run income gap between
 the two countries depends on the difference in domestic income inequality
 when they open up to trade. Based on these results, I analyze the effects
 of redistributive policy within a country. I show that redistribution in
 one country may increase income per capita of its trading partner if it is
 undertaken in a steady state, while the opposite is true if the policy is
 undertaken during transition. 
Journal: The Journal of International Trade & Economic Development 
Pages: 447-473 
Issue: 4 
Volume: 16 
Year: 2007 
Keywords: Income inequality, international trade, world income distribution, international policy transmission, 
X-DOI: 10.1080/09638190701600207 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600207 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:4:p:447-473




Template-Type: ReDIF-Article 1.0
Author-Name: James Cassing 
Author-X-Name-First: James 
Author-X-Name-Last: Cassing 
Author-Name: Stephen Tokarick 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Tokarick 
Title: Trade and growth in the presence of distortions 
Abstract:
  Tariffs and other policy distortions typically lower real national income
 relative to what it otherwise would have been for any given rate of factor
 accumulation. Even so, policy distortions may raise an economy's real
 measured growth rate and, somewhat deceivingly, give the impression that
 national welfare has benefited from things like tariff protection. This
 would be an incorrect conclusion. This paper discusses the issue of how
 policy distortions can affect the rate of growth for a small, open
 economy. For example, in the presence of exogenously given factor
 accumulation, a tariff can either raise or lower an economy's growth rate
 (measured by the change in the value of output at world prices), relative
 to the no-distortion growth rate. We also discuss the relevance of this
 result for tariff uniformity, 'tariff jumping' foreign direct investment,
 and the empirical literature on trade and growth. Finally, we use a
 numerical simulation model of Egypt to assess whether the costs of its tax
 distortions have increased or declined over time. 
Journal: The Journal of International Trade & Economic Development 
Pages: 475-504 
Issue: 4 
Volume: 16 
Year: 2007 
Keywords: Tariffs, distortions, growth rate, factor accumulation, 
X-DOI: 10.1080/09638190701600231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600231 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:4:p:475-504




Template-Type: ReDIF-Article 1.0
Author-Name: Hiranya Nath 
Author-X-Name-First: Hiranya 
Author-X-Name-Last: Nath 
Author-Name: Khawaja Mamun 
Author-X-Name-First: Khawaja 
Author-X-Name-Last: Mamun 
Title: Trade, growth and wage inequality in Bangladesh 
Abstract:
  Using model selection techniques based on out-of-sample predictive
 ability criterion in a Vector Autoregression (VAR) framework, this paper
 empirically examines the causal relations among growth, trade, and wage
 inequality in Bangladesh between 1971 and 2000. There is some evidence of
 bi-directional causality between growth and inequality and between trade
 and growth. That growth causes trade and that trade causes inequality are
 robust results. Furthermore, evidence strongly suggests that investment is
 important for trade, and the terms of trade between agricultural products
 and manufacturing products is an important causal determinant of both
 growth and trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 505-528 
Issue: 4 
Volume: 16 
Year: 2007 
Keywords: Bangladesh, trade, trade openness, wage inequality, out-of-sample predictive ability, mean squared forecast errors, 
X-DOI: 10.1080/09638190701600256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600256 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:4:p:505-528




Template-Type: ReDIF-Article 1.0
Author-Name: Kym Anderson 
Author-X-Name-First: Kym 
Author-X-Name-Last: Anderson 
Author-Name: Dominique van der Mensbrugghe 
Author-X-Name-First: Dominique 
Author-X-Name-Last: van der Mensbrugghe 
Title: Effects of multilateral and preferential trade policy reform in Africa: The case of Uganda 
Abstract:
  This paper estimates the effects on production, trade and economic
 welfare of current trade policy regimes throughout the world on Uganda
 relative to other economies. This will be a benchmark against which to
 examine various multilateral and preferential trade policy scenarios that
 might emerge over the next decade as part of the WTO's Doha Round and from
 the expected move later this decade towards Economic Partnership
 Agreements with the European Union. The results suggest modest gains or
 worse for Uganda, in part because it already has low tariffs and ready
 preferential access to rich-country markets. Several important caveats to
 this type of analysis are stressed though, before drawing out some trade
 and policy implications for Uganda. 
Journal: The Journal of International Trade & Economic Development 
Pages: 529-550 
Issue: 4 
Volume: 16 
Year: 2007 
Keywords: Trade policy reform, multilateral negotiations, preferential trade, computable general equilibrium, developing countries, 
X-DOI: 10.1080/09638190701600264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600264 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hernando Zuleta 
Author-X-Name-First: Hernando 
Author-X-Name-Last: Zuleta 
Title: Why labor income shares seem to be constant? 
Abstract:
  The common assumptions that labor income share does not change over time
 or across countries and that factor income shares are equal to the
 elasticity of output with respect to factors have had important
 implications for economic theory. However, there are several theoretical
 reasons for why the elasticity of output with respect to reproducible
 factors should be correlated with the stage of development. In particular,
 the behavior of international trade and capital flows and the existence of
 factor saving innovations imply such a correlation. If this correlation
 exists and if factor income shares are equal to the elasticity of output
 with respect to factors then the labor income share must be negatively
 correlated with the stage of development. The existence of a labor
 intensive sector that produces non-tradable goods would explain why labor
 income share has no correlation with income per capita. 
Journal: The Journal of International Trade & Economic Development 
Pages: 551-557 
Issue: 4 
Volume: 16 
Year: 2007 
Keywords: Factor income shares, elasticity of output with respect to factors, two sector model, 
X-DOI: 10.1080/09638190701600280 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701600280 
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Handle: RePEc:taf:jitecd:v:16:y:2007:i:4:p:551-557




Template-Type: ReDIF-Article 1.0
Author-Name: Yener Kandogan 
Author-X-Name-First: Yener 
Author-X-Name-Last: Kandogan 
Title: Falling walls and lifting curtains: analysis of border effects in transition countries 
Abstract:
  Since McCallum's (1995) finding of surprisingly high border effects on
 trade between the US and Canada, there have been a number of studies on
 other parts of the world, and improvements made to the gravity model to
 measure this effect accurately. This paper suggests some other
 modifications to the model, and applies it to a region of the world that
 presents a distinctly interesting case. Changes in border effects of
 formerly socialist countries in Central and East Europe, and countries in
 the former Soviet Union are analyzed during 1976-2002 at country and
 sectoral levels, and also with respect to blocs of countries. A discussion
 on cross-country variations in border effects follows the computations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 85-104 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: gravity models, integration, disintegration, fixed effects, Eastern Europe, bilateral trade resistance, 
X-DOI: 10.1080/09638190701728008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701728008 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:85-104




Template-Type: ReDIF-Article 1.0
Author-Name: Bulent Unel 
Author-X-Name-First: Bulent 
Author-X-Name-Last: Unel 
Title: R&D spillovers through trade in a panel of OECD industries 
Abstract:
  This paper investigates the significance of Research and Development
 (R&D) spillovers through intra- and international trade in intermediate
 goods for productivity growth in a panel of OECD industries during
 1973-1994. In the model, four different sources of R&D are identified: R&D
 conducted in the particular industry itself, R&D conducted in the same
 industries in other countries, R&D conducted in other domestic industries,
 and R&D conducted in other foreign industries. I find that among R&D
 sources the most important contributions to productivity growth come from
 the domestic R&D efforts. Here, own R&D is important for both domestic
 innovation and for the productivity catch-up process. Evidence that
 international R&D spillovers also have significant effects on productivity
 growth is found to be less robust. My analysis also shows that human
 capital affects productivity directly as a factor of production. 
Journal: The Journal of International Trade & Economic Development 
Pages: 105-133 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: productivity growth, R&D intensity, R&D spillovers, human capital, 
X-DOI: 10.1080/09638190701728024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701728024 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:105-133




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamadou Fadiga 
Author-X-Name-First: Mohamadou 
Author-X-Name-Last: Fadiga 
Author-Name: Samarendu Mohanty 
Author-X-Name-First: Samarendu 
Author-X-Name-Last: Mohanty 
Author-Name: Mark Welch 
Author-X-Name-First: Mark 
Author-X-Name-Last: Welch 
Author-Name: Suwen Pan 
Author-X-Name-First: Suwen 
Author-X-Name-Last: Pan 
Title: Doha development agenda: implications for the US and world cotton markets 
Abstract:
  This study analyzed two scenarios that considered a reduction of the US
 aggregate measure of supports (AMS) payments by 60% over a five-year
 period. In the first scenario, which considered a unilateral action by the
 US, the targeted AMS payments reduction would require a 12% cut in the US
 target price and an 8% cut in the loan rate. This would lead to a 3%
 decline in US cotton production, a 3% rise in world cotton price, and a
 26% decline in US cotton net farm income at the end of the implementation
 period. The second scenario analyzed the case in which the US AMS payments
 reduction is concomitant with multilateral tariff and subsidy eliminations
 from the rest of the world. Under this scenario, fewer cuts in the US loan
 rate and target price (i.e. 9 and 4%) were required to achieve the 60% AMS
 reduction because of market liberalization from the from the rest of the
 world. However, US cotton producers' net farm income still declined by
 18%. 
Journal: The Journal of International Trade & Economic Development 
Pages: 135-153 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: cotton, net farm income, subsidies, tariffs, United States, WTO, 
X-DOI: 10.1080/09638190701728115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701728115 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:135-153




Template-Type: ReDIF-Article 1.0
Author-Name: Kolasa Marcin 
Author-X-Name-First: Kolasa 
Author-X-Name-Last: Marcin 
Title: How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition 
Abstract:
  This paper examines the existence of externalities associated with
 foreign direct investment (FDI) in a host country by exploiting firm-level
 panel data covering the Polish corporate sector. We distinguish between
 horizontal spillovers (from foreign to domestic firms operating in the
 same industry) and two types of vertical spillovers: backward (from FDI in
 downstream industries) and forward spillovers (from FDI in upstream
 industries). The main findings are as follows. Local firms benefit from
 foreign presence in the same industry and in downstream industries. The
 absorptive capacity of domestic firms is highly relevant to the size of
 spillovers: vertical spillovers are larger for R&D-intensive firms, while
 firms investing in other (external) types of intangibles benefit more from
 horizontal spillovers. Competitive pressure facilitates backward
 spillovers, while market power increases the extent of forward spillovers.
 Horizontal spillovers are particularly strong in services, while the
 remaining results, including backward spillovers and the role of
 absorptive capacity and competition, are mainly driven by manufacturing.
 Host country equity participation in foreign firms is consistent with
 higher unconditional productivity spillovers to domestic firms. A number
 of robustness checks yield results qualitatively similar to those obtained
 in the baseline specification. 
Journal: The Journal of International Trade & Economic Development 
Pages: 155-173 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: FDI, spillovers, productivity, absorptive capacity, competition, panel data, 
X-DOI: 10.1080/09638190701728131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701728131 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:155-173




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: The WTO and reciprocal preferential trading agreements 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 175-180 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638190701728156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701728156 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:175-180




Template-Type: ReDIF-Article 1.0
Author-Name: Sukanta Bhattacharya 
Author-X-Name-First: Sukanta 
Author-X-Name-Last: Bhattacharya 
Author-Name: Sarmila Banerjee 
Author-X-Name-First: Sarmila 
Author-X-Name-Last: Banerjee 
Author-Name: Sirshendu Mukherjee 
Author-X-Name-First: Sirshendu 
Author-X-Name-Last: Mukherjee 
Title: Group lending and self-help groups: joint benefit as an alternative governance mechanism 
Abstract:
  Lending to the rural poor in developing economies, although crucial from
 the perspective of poverty management, is often subjected to severe
 informational problems. The literature on group lending with joint
 liability attempts to resolve these problems by making failure more costly
 for the borrowers. We take a different approach. In a model of lending
 with moral hazard, we show that rewarding group success by promising a
 joint benefit can be used as an alternative mechanism to solve
 informational problems. We also show that, unlike joint
 liabilitymechanism, this joint-benefit mechanism would ensure higher
 repayment probability even in the absence of peer-monitoring. Moreover, in
 this model, the optimal group size can be endogenously determined. 
Journal: The Journal of International Trade & Economic Development 
Pages: 1-19 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: joint benefit, group lending, peer monitoring, 
X-DOI: 10.1080/09638190701727752 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701727752 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sugata Marjit 
Author-X-Name-First: Sugata 
Author-X-Name-Last: Marjit 
Author-Name: Arijit Mukherjee 
Author-X-Name-First: Arijit 
Author-X-Name-Last: Mukherjee 
Title: Profit reducing international outsourcing 
Abstract:
  Recent empirical evidence shows a negative relationship between
 international outsourcing and profitability. This paper provides a
 theoretical explanation for this phenomenon. We show that, in an
 oligopolistic market, firms earn lower profits in the outsourcing
 equilibrium compared to the situation where neither firm does outsourcing,
 and this holds irrespective of the intensity of competition. We show that
 whether international outsourcing is likely to reduce profit under more
 intense competition (measured by the degree of product differentiation,
 number of firms and the type of product market competition, namely,
 Cournot and Bertrand competition) is ambiguous. We further show that
 international outsourcing may be socially 'excessive' for the sourced
 country and for the world. 
Journal: The Journal of International Trade & Economic Development 
Pages: 21-35 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: international outsourcing; profit, welfare, 
X-DOI: 10.1080/09638190701727786 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701727786 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:21-35




Template-Type: ReDIF-Article 1.0
Author-Name: Ksh. Jhaljit Singh 
Author-X-Name-First: Ksh. Jhaljit 
Author-X-Name-Last: Singh 
Title: On tax evaders and corrupt auditors 
Abstract:
  This paper takes cognizance of existence of bribery-type corruption in
 the tax system. The study seeks to analyze the strategic interaction
 between a tax evader and a corrupt auditor within a given tax situation.
 An equilibrium bribe rule is derived for the situation where a tax evader
 comes face to face with a corruptible auditor. In our stylized model,
 situations are found where both parties adopting the agreed bribe rule,
 benefit from cheating the system In addition, the existence of an
 equilibrium point is established in a two-person fixed threat Nash
 bargaining situation. A comparative static exercise brings out some
 intuitively appealing findings. Lastly, when the probability of a super
 audit is internalized within the system, besides other results, we find
 that, in a bribe situation, the effect of neither the increase in penalty
 rate for evasion nor the vigilance over the activities of a tax auditor on
 their behavior is straightforward. Rather they are ambiguous or at best
 situation specific. From the policy point of view, we find that if the
 government is successful in keeping the value of the expected probability
 of super audit above some value qo, bribery will vanish from the system.
 The age old method of the carrot and stick policy to obtain a desirable
 state also gets established in our setting. Bribery can be made
 unprofitable by adopting an appropriate carrot and stick policy towards
 the corruptible auditors. 
Journal: The Journal of International Trade & Economic Development 
Pages: 37-67 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: tax evader, corrupt auditor, bribe, super audit, equilibrium point, comparative statics, 
X-DOI: 10.1080/09638190701727836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701727836 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:37-67




Template-Type: ReDIF-Article 1.0
Author-Name: Sugato Dasgupta 
Author-X-Name-First: Sugato 
Author-X-Name-Last: Dasgupta 
Title: Coalition governments and distributive programs: a simple model 
Abstract:
  Casual empiricism reveals that a government's program implementation
 policy frequently fails to maximize the representative citizen's welfare.
 Inthis paper, I construct a model that incorporates political economy
 considerations and examine the equilibrium policy distortions that a
 coalition government begets. I show that coalition governments are
 fiscally profligate when program benefits are divisible and excessively
 conservative when these benefits are indivisible. In other words, program
 characteristics (divisible or indivisible) affect even the qualitative
 nature of coalition-related policy distortions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 69-84 
Issue: 1 
Volume: 17 
Year: 2008 
Keywords: distributive program, coalition government, inefficiency, 
X-DOI: 10.1080/09638190701727869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701727869 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:69-84




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: The asymmetric effects of exchange rate fluctuations on output and prices: Evidence from developing countries 
Abstract:
  This paper examines the asymmetric effects of exchange rate fluctuations
 on real output and price in developing countries. The theoretical model
 decomposes movements in the exchange rate into anticipated and
 unanticipated components. Unanticipated currency fluctuations determine
 aggregate demand through exports, imports and the demand for domestic
 currency, and determine aggregate supply through the cost of imported
 intermediate goods. The evidence indicates that the supply channel leads
 to output contraction and price inflation in the face of unanticipated
 currency depreciation. In contrast, the reduction in net exports
 determines output contraction without reducing price inflation in the face
 of unanticipated currency appreciation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 257-296 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: exchange rate, developing countries, asymmetric effects, 
X-DOI: 10.1080/09638190701872772 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872772 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:257-296




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Bleaney 
Author-X-Name-First: Michael 
Author-X-Name-Last: Bleaney 
Author-Name: Manuela Francisco 
Author-X-Name-First: Manuela 
Author-X-Name-Last: Francisco 
Title: Balance sheet effects and the choice of exchange rate regime in developing countries 
Abstract:
  We investigate the choice of regime amongst hard pegs, soft pegs, managed
 floats and independent floats for a panel of developing countries. There
 is evidence of a matched ordering of regimes and country characteristics.
 We find some evidence for the 'balance sheet' hypothesis that foreign
 liabilities in the banking system and foreign debt are associated with
 less exchange rate flexibility, particularly when a 'de facto' regime
 classification is used. Easily the best predictor of a country's current
 regime is its regime in the previous year. 
Journal: The Journal of International Trade & Economic Development 
Pages: 297-310 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: exchange rate regimes, developing countries, 
X-DOI: 10.1080/09638190701872822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872822 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:297-310




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Larue 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Larue 
Author-Name: Jean-Philippe Gervais 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Gervais 
Author-Name: Sebastien Pouliot 
Author-X-Name-First: Sebastien 
Author-X-Name-Last: Pouliot 
Title: Price equivalent tariffs and quotas under a domestic monopoly 
Abstract:
  Price-equivalent import tariffs and quotas are compared when domestic
 production is controlled by a monopolist, say an agricultural marketing
 board with the power to restrict domestic supply, under endogenous terms
 of trade. Welfare comparisons boil down to sourcing costs comparisons.
 Quotas tend to dominate at high domestic prices, ad valorem tariffs at
 intermediate prices and specific tariffs at low domestic prices. Welfare
 maxima are achieved with more restrictive policies than under perfect
 competition. These results rationalize separate negotiations for sensitive
 products in the Doha Round and the setting of tariff-rate quotas that
 mimic import quotas for these products. Finally, in ascertaining the
 robustness of our policy ranking to the choice of variable anchoring the
 comparisons, we found that specific tariffs unambiguously dominate ad
 valorem tariffs and quotas when government revenue or imports anchor the
 comparisons. However, some quota revenues and import levels cannot be
 achieved with tariffs. 
Journal: The Journal of International Trade & Economic Development 
Pages: 311-322 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: agricultural trade, domestic monopoly, price-equivalence, quotas, tariffs, trade policy, 
X-DOI: 10.1080/09638190701872863 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872863 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:311-322




Template-Type: ReDIF-Article 1.0
Author-Name: Monojit Chatterji 
Author-X-Name-First: Monojit 
Author-X-Name-Last: Chatterji 
Author-Name: Catia Montagna 
Author-X-Name-First: Catia 
Author-X-Name-Last: Montagna 
Title: A note on export-platform Foreign Direct Investment, training and absorptive capacity 
Abstract:
  The empirical literature on FDI suggests that investment in training is
 the major source of human resource development activities undertaken by
 MNEs, particularly those with sophisticated technologies, and host
 countries' absorptive capacity plays an important role in attracting FDI.
 We develop a model of export-platform FDI that provides theoretical
 rationalisation of the role played by a host country's absorptive capacity
 in determining MNEs' location decisions as well as their level of
 investment and training-and, through this, the extent to which they
 contribute to human capital formation in the host country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 323-332 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: foreign direct investment, training, sophisticated technology, absorptive capacity, 
X-DOI: 10.1080/09638190701872954 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872954 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:323-332




Template-Type: ReDIF-Article 1.0
Author-Name: Subhadip Ghosh 
Author-X-Name-First: Subhadip 
Author-X-Name-Last: Ghosh 
Title: FDI and the skill premium in a North-South global economy 
Abstract:
  The effect of FDI from North to South countries on the skill premium of
 both groups of countries is examined. The lower wage of unskilled labor in
 the South induces the Northern firms to shift the unskilled labor
 intensive production processes in the South. FDI occurs in an unskilled
 labor intensive activity, but in a skill-intensive sector. It is shown
 that this leads to an increase in the skill premium of skilled labor in
 both North and South. 
Journal: The Journal of International Trade & Economic Development 
Pages: 181-195 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: FDI, skill premium, outsourcing, vertical integration, 
X-DOI: 10.1080/09638190701872566 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872566 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:181-195




Template-Type: ReDIF-Article 1.0
Author-Name: Subhayu Bandyopadhyay 
Author-X-Name-First: Subhayu 
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Howard Wall 
Author-X-Name-First: Howard 
Author-X-Name-Last: Wall 
Title: Is there too little immigration? An analysis of temporary skilled migration 
Abstract:
  This paper presents a model of legal migration of temporary skilled
 workers from one source country to two host countries, both of which can
 control their levels of such immigration. Because of complementarities
 between capital and labor, the return on capital is positively related to
 the level of immigration. Consequently, when capital is immobile, host
 nations' optimal levels of immigration are positively related to their
 capital endowments. Further, when capital is mobile between the host
 nations, the common return on capital is a function of the levels of
 immigration in both countries, meaning that immigration is a public good.
 As a result, when immigration imposes costs on host countries, the Nash
 equilibrium results in free riding and less immigration than would occur
 in the cooperative equilibrium. These results are qualitatively unaltered
 when capital mobility extends to the source nation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 197-211 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: skilled immigration, optimal immigration, capital mobility, externalities, public goods, assimilation costs, 
X-DOI: 10.1080/09638190701872616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872616 
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Template-Type: ReDIF-Article 1.0
Author-Name: Andre Varella Mollick 
Author-X-Name-First: Andre Varella 
Author-X-Name-Last: Mollick 
Title: Relative wages, labor supplies and trade in Mexican manufacturing: Evidence from two samples 
Abstract:
  How do relative wages (between skilled and unskilled workers) respond to
 technical progress and to relative supply shifts? An empirical model of
 the wage premium for Mexican manufacturing is employed on two monthly data
 samples: one, from 1987 to 1995, displays the well-documented rising trend
 in wages right after Mexico joined GATT; the other, from 1994 to 2007,
 suggests slightly decreasing wages. The model provides support for
 skill-biased technical change (SBTC) and yields plausible elasticity of
 substitution for the first sample (&#x3c3;&#xa0;=&#xa0;1.03) and higher
 elasticity for the second (&#x3c3;&#xa0;=&#xa0;1.71). Allowing export
 intensity and the real exchange rate to modify the factor augmenting
 technology ratio, negative relationships are found for the earlier sample:
 the higher the export intensity or real exchange rate the lower relative
 wages. The error correction methodology and the bounds approach confirm
 these results. Combining trade and SBTC, this study supports the view that
 trade considerations have an impact on wage premiums at the very beginning
 of trade liberalization. In contrast, the benchmark model seems a more
 adequate representation when NAFTA and a market-oriented peso help
 consolidate Mexico in its path towards sustainable growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 213-241 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: export intensity, Mexico, real exchange rate, relative wages, SBTC, wage premium, 
X-DOI: 10.1080/09638190701872673 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872673 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mriduchhanda Paul 
Author-X-Name-First: Mriduchhanda 
Author-X-Name-Last: Paul 
Author-Name: Sajal Lahiri 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Lahiri 
Title: The effect of temporary devaluation on foreign investment: A trade-theoretic analysis and an application to Mexico 
Abstract:
  We develop a two-period model with foreign investment and international
 borrowing and lending. We find that temporary devaluation has no effect on
 contemporaneous foreign investment, but the effect on future foreign
 investment is positive via the working of the credit market. These
 findings are then tested for Mexico with regression analysis. 
Journal: The Journal of International Trade & Economic Development 
Pages: 243-255 
Issue: 2 
Volume: 17 
Year: 2008 
Keywords: devaluation, foreign investment, borrowing, lending, interest rate, 
X-DOI: 10.1080/09638190701872723 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872723 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:243-255




Template-Type: ReDIF-Article 1.0
Author-Name: Dibyendu Maiti 
Author-X-Name-First: Dibyendu 
Author-X-Name-Last: Maiti 
Author-Name: Sugata Marjit 
Author-X-Name-First: Sugata 
Author-X-Name-Last: Marjit 
Title: Trade liberalization, production organization and informal sector of the developing countries 
Abstract:
  The paper provides an explanation of recent empirical evidence on
 fragmentation and the expansion of the informal sector in India. We argue
 that as the prospect of getting a better price in the international market
 increases, the producers in the formal sector act more like merchants and
 subcontract production activities to the producers in the informal
 sectors. Expanding production in the informal sector allows the firm to
 take advantage of a growing export market. Our theoretical model explains
 such organizational change in terms of allocation of monitoring effort
 between marketing and production. The existence of a low-wage informal
 sector facilitates division of labor and specialization in the formal
 segment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 453-461 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: informal sector, trade liberalization, subcontracting, occupational specialization, 
X-DOI: 10.1080/09638190802137125 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137125 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:453-461




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Antweiler 
Author-X-Name-First: Werner 
Author-X-Name-Last: Antweiler 
Title: Book Review 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 463-466 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638190802137141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137141 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:463-466




Template-Type: ReDIF-Article 1.0
Author-Name: Roy Ruffin 
Author-X-Name-First: Roy 
Author-X-Name-Last: Ruffin 
Title: A rehabilitation of effective protection 
Abstract:
  This note argues that the declining interest in the theory of effective
 protection is not justified, shows how the existence of intermediate goods
 affects the basic economics of tariffs, gives a simple proof of the
 symmetry of export subsidies and import duties with intermediate goods,
 and then applies the theory to analyze a potential route to free trade
 that could have minimal objections from special interests. 
Journal: The Journal of International Trade & Economic Development 
Pages: 333-342 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: effective production, intermediate goods, Lerner-Ricardo symmetry, 
X-DOI: 10.1080/09638190802136945 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802136945 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:333-342




Template-Type: ReDIF-Article 1.0
Author-Name: Julien Gourdon 
Author-X-Name-First: Julien 
Author-X-Name-Last: Gourdon 
Author-Name: Nicolas Maystre 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Maystre 
Author-Name: Jaime de Melo 
Author-X-Name-First: Jaime 
Author-X-Name-Last: de Melo 
Title: Openness, inequality and poverty: Endowments matter 
Abstract:
  Using tariffs as a measure of openness, this paper finds consistent
 evidence that the conditional effects of trade liberalization on
 inequality are correlated with relative factor endowments. Trade
 liberalization, measured by changes in tariff revenues, is associated with
 increases in inequality in countries well-endowed with highly skilled
 workers and capital or with workers that have very low education levels.
 Similar, although less robust, results are also obtained when decile data
 are used instead of the usual Gini coefficients. Taken together, the
 results are strongly supportive of the factor-proportions theory of trade
 and suggest that trade liberalization in poor countries where the share of
 the labor force with little education is high raises inequality.
 Simulation results also suggest that relatively small changes in
 inequality as measured by aggregate measures of inequality, like the Gini
 coefficient, are magnified when estimates are carried out using decile
 data. 
Journal: The Journal of International Trade & Economic Development 
Pages: 343-378 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: international trade, income distribution, poverty, 
X-DOI: 10.1080/09638190802136978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802136978 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:343-378




Template-Type: ReDIF-Article 1.0
Author-Name: Hernando Zuleta 
Author-X-Name-First: Hernando 
Author-X-Name-Last: Zuleta 
Title: An empirical note on factor shares 
Abstract:
  In this study, we propose an explanation for why labor and capital shares
 do not seem to have a trend: an increasing trend in physical capital share
 is compensated by a decreasing trend in land share. Similarly, an
 increasing trend in human capital share is compensated by a decreasing
 trend in raw labor share. We also find empirical support for the claim
 that the elasticity of output with respect to reproducible factors, human
 and physical capital, is positively correlated with the income level. This
 result has important implications for economic growth theory and for
 empirical exercises related to economic growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 379-390 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: factor income shares, biased innovations, elasticity of output with respect to factors, 
X-DOI: 10.1080/09638190802137034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137034 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:379-390




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Aizenman 
Author-Name: Yothin Jinjarak 
Author-X-Name-First: Yothin 
Author-X-Name-Last: Jinjarak 
Title: The collection efficiency of the Value Added Tax: Theory and international evidence 
Abstract:
  This paper evaluates the political economy and structural factors
 explaining the collection efficiency of the Value Added Tax (VAT), where
 the collection efficiency is determined by the probability of audit and by
 the penalty on underpaying, and implementation lags imply that the present
 policy maker determines the efficiency of the tax system next period.
 Theory suggests that the collection efficiency is affected by political
 economy considerations&#xa0;-&#xa0;greater polarization and political
 instability would reduce the efficiency of the tax collection, and
 collection is impacted by structural factors affecting the ease of tax
 evasion (such as urbanization, agriculture share, openness). We evaluate
 the VAT collection efficiency (VAT revenue over the aggregate consumption
 divided by the standard VAT rate) in a panel of 44 countries over 1970-99.
 A one standard deviation increase in durability of political regime, and
 in the ease and fluidity of political participation, increases the VAT
 collection efficiency by 3.1% and 3.6%, respectively. A one standard
 deviation increase in urbanization, trade openness and the share of
 agriculture, changes the VAT collection efficiency by 12.7%, 3.9% and
 -4.8%, respectively. Qualitatively identical results apply for the ratio
 of VAT revenue to GDP divided by the standard VAT. 
Journal: The Journal of International Trade & Economic Development 
Pages: 391-410 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: VAT, tax collection costs, trade openness, political instability, urbanization, 
X-DOI: 10.1080/09638190802137059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137059 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:391-410




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Ruiz 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Ruiz 
Author-Name: Susan Pozo 
Author-X-Name-First: Susan 
Author-X-Name-Last: Pozo 
Title: Exchange rates and US direct investment into Latin America 
Abstract:
  This paper analyzes the impact of exchange rate levels and exchange rate
 uncertainty on US foreign direct investment into Latin America. By
 decomposing exchange rate uncertainty into temporary (short-run) and
 permanent (long-run) components, we further explore whether the nature of
 uncertainty matters. Our empirical findings support the view that exchange
 rate uncertainty has a negative impact on US investment flows into Latin
 America. Moreover, it is the persistency in uncertainty rather than
 transitory uncertainty that mostly deters foreign investment. In contrast,
 investors do not appear to be affected by discrete movements in exchange
 rate levels. 
Journal: The Journal of International Trade & Economic Development 
Pages: 411-438 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: foreign direct investment, exchange rates, CGARCH, Latin America, 
X-DOI: 10.1080/09638190802137083 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137083 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:411-438




Template-Type: ReDIF-Article 1.0
Author-Name: Romain Perez 
Author-X-Name-First: Romain 
Author-X-Name-Last: Perez 
Title: The economics of taxes with equivalent effects to tariffs 
Abstract:
  Developing countries are faced with the issue of tariff replacement at an
 early stage of their development, due to their increased commitments
 through Free Trade Arrangements with developed countries. As tariff
 replacement through VAT, or more sophisticated tools such as income tax,
 is neither practically nor economically desirable in these economies, this
 paper investigates the effects of an alternative replacement tax that only
 affects categories of goods not produced locally. This tax, denominated
 tax with equivalent effects to tariffs (TEET), is indeed a consumption tax
 as it concerns all goods, whether imported or potentially produced in the
 country. Based on a simple diagrammatic approach, the study shows that
 this tool tends to generate more welfare than tariffs if final prices of
 goods are left unchanged. It shows that a government can continue to
 maintain its revenues and increase the welfare of consumers through this
 fiscal replacement. Additionally, the political and economic reserves
 associated with this tool are discussed. The TEET are therefore useful
 mainly for small and non-diversified economies. It also remains that the
 use of this tool is, in practice, conditioned by the level of tolerance of
 developed countries, which tend to prohibit it in bilateral agreements
 with developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 439-451 
Issue: 3 
Volume: 17 
Year: 2008 
Keywords: tariff reform, VAT, welfare, government revenue, 
X-DOI: 10.1080/09638190802137091 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137091 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:439-451




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Author-Name: Rui Henrique Alves 
Author-X-Name-First: Rui Henrique 
Author-X-Name-Last: Alves 
Title: Can the North-South trade regime explain intra- and inter-country productivity differences? 
Abstract:
  The literature identifies North-South disparities in Total Factor
 Productivity (TFP), which, in turn, justify the bulk of international
 income differences. By building a dynamic, general equilibrium model of
 North-South technological-knowledge diffusion with scale-invariant growth,
 we extend the literature in several directions: (i) growth is driven by
 Schumpeterian R&D and by high and low-skilled human-capital accumulation;
 (ii) three trade regimes are considered; (iii) sectoral and aggregate TFP
 measures are computed; (iv) the extent to which the North-South trade
 regime explains intra-country TFP and inter-country TFP differences is
 evaluated. In particular, the results suggest that intra-country TFP
 differences increase and inter-country TFP differences fall when countries
 are more interdependent. 
Journal: The Journal of International Trade & Economic Development 
Pages: 561-595 
Issue: 4 
Volume: 17 
Year: 2008 
Keywords: technological-knowledge diffusion, North-South trade, R&D, human-capital accumulation, TFP differences, 
X-DOI: 10.1080/09638190802250365 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802250365 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:4:p:561-595




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Feng 
Author-X-Name-First: Hui 
Author-X-Name-Last: Feng 
Title: Regionalism and globalization in East Asia: Politics, security & economic development 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 597-598 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638190802250373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802250373 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:4:p:597-598




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen DeLoach 
Author-X-Name-First: Stephen 
Author-X-Name-Last: DeLoach 
Author-Name: Jayoti Das 
Author-X-Name-First: Jayoti 
Author-X-Name-Last: Das 
Title: Resolving the paradox of social standards and export competitiveness 
Abstract:
  Over the last decade there has been increasing international pressure on
 countries to raise 'social standards' (i.e. production standards based on
 environmental and labor conditions). Currently, the World Trade
 Organization does not allow countries to impose minimum standards on
 imports based on environmental or labor standards because it is assumed to
 undermine competition. There is no consensus in the empirical literature,
 however, to support this claim. In fact, the evidence suggests that while
 stronger environmental standards hurt competitiveness, stronger labor
 standards do the opposite. This paper offers one possible explanation for
 this paradox. In a simple model of incomplete information, externally
 imposed standards may either increase or decrease the competitiveness of
 infant firms from developing countries depending on the degree of
 complementarity between the standard and the production of high-quality
 goods. 
Journal: The Journal of International Trade & Economic Development 
Pages: 467-483 
Issue: 4 
Volume: 17 
Year: 2008 
Keywords: asymmetric information, competitiveness, product quality, production standards, 
X-DOI: 10.1080/09638190802249821 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802249821 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:4:p:467-483




Template-Type: ReDIF-Article 1.0
Author-Name: Hisashi Sawaki 
Author-X-Name-First: Hisashi 
Author-X-Name-Last: Sawaki 
Title: Potential FDI causing large distortions in domestic production 
Abstract:
  When a foreign firm enters a domestic market, either via exports or
 through foreign direct investment (FDI), one factor determining the most
 favourable entrance mode is the profitability of the market, which may not
 be directly observed by the foreign firm. If the domestic trade protection
 policy is within a certain range that causes the foreign entrant's
 decision to swing between the two entry modes, the final choice will
 depend on the foreign firm's belief about the profitability. In such a
 situation, a domestic incumbent firm wishing to prevent FDI will heavily
 distort its production downward to convince the foreign competitor that
 the market is not profitable. When making trade policy, such strategic
 behaviour on the part of the domestic firm should be taken into account. 
Journal: The Journal of International Trade & Economic Development 
Pages: 485-500 
Issue: 4 
Volume: 17 
Year: 2008 
Keywords: exports, foreign direct investment (FDI), tariffs, oligopoly incomplete information, signalling, 
X-DOI: 10.1080/09638190802249995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802249995 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:4:p:485-500




Template-Type: ReDIF-Article 1.0
Author-Name: Maggie Xiaoyang Chen 
Author-X-Name-First: Maggie Xiaoyang 
Author-X-Name-Last: Chen 
Author-Name: John Wilson 
Author-X-Name-First: John 
Author-X-Name-Last: Wilson 
Author-Name: Tsunehiro Otsuki 
Author-X-Name-First: Tsunehiro 
Author-X-Name-Last: Otsuki 
Title: Standards and export decisions: Firm-level evidence from developing countries 
Abstract:
  Standards and technical regulations set in importing countries have
 become a rising concern to exporters, especially to those in developing
 countries. This paper examines the importance of various types of
 standards in developing-country firms' export decisions. Drawn from the
 World Bank Technical Barriers to Trade (TBT) Survey database, we find that
 different types of standards exhibit sharply distinct relations with
 firms' intensive and extensive margins of exports. Quality standards are
 positively correlated not only with firms' average export volume across
 markets and products but also their export scope, measured by the number
 of export markets and products. A similar relationship is found between
 labeling requirements and export scope. Certification procedures, however,
 are associated with a significant decline in the number of export markets
 and export products. Our results suggest that different approaches should
 be taken to address each type of technical regulations. Not all standards
 need to be negotiated away to boost trade, but negotiations on
 certification procedures with the aim of reaching Mutual Recognition
 Agreements (MRAs) can help firms improve economies of scale and scope. 
Journal: The Journal of International Trade & Economic Development 
Pages: 501-523 
Issue: 4 
Volume: 17 
Year: 2008 
Keywords: standards, export decision, intensive margin, extensive margin, 
X-DOI: 10.1080/09638190802250027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802250027 
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Handle: RePEc:taf:jitecd:v:17:y:2008:i:4:p:501-523




Template-Type: ReDIF-Article 1.0
Author-Name: Devashish Mitra 
Author-X-Name-First: Devashish 
Author-X-Name-Last: Mitra 
Author-Name: Beyza Ural 
Author-X-Name-First: Beyza 
Author-X-Name-Last: Ural 
Title: Indian manufacturing: A slow sector in a rapidly growing economy 
Abstract:
  In this paper, we investigate the determinants of productivity in Indian
 manufacturing industries during the period 1988-2000. Using two-digit
 industry level data for the Indian states, we find evidence of imperfect
 interindustry and interstate labor mobility as well as misallocation of
 resources across industries and states. We find that trade liberalization
 increases productivity in all industries across all states. Productivity
 is also found to be higher in the less protected industries. These effects
 of protection and trade liberalization are more pronounced in states that
 have relatively more flexible labor markets. Similar effects are also
 found in the case of employment, capital stock and investment.
 Furthermore, we find that labor market flexibility, independent of other
 policies, has a positive effect on productivity. Importantly, per capita
 state development expenditure seems to be the strongest and the most
 robust predictor of productivity, employment, capital stock and
 investment. Industrial delicensing increases both labor productivity and
 employment but only in the states with flexible labor market institutions.
 Even after controlling for delicensing, trade liberalization is shown to
 have a productivity-enhancing effect. Finally, trade liberalization
 benefits most the export-oriented industries located in states with
 flexible labor-market institutions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 525-559 
Issue: 4 
Volume: 17 
Year: 2008 
Keywords: productivity, India, trade liberalization, labor markets, institutions, 
X-DOI: 10.1080/09638190802250282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802250282 
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Template-Type: ReDIF-Article 1.0
Author-Name: Subrata Ghatak 
Author-X-Name-First: Subrata 
Author-X-Name-Last: Ghatak 
Author-Name: Monica Ioana Pop Silaghi 
Author-X-Name-First: Monica Ioana Pop 
Author-X-Name-Last: Silaghi 
Author-Name: Vince Daly 
Author-X-Name-First: Vince 
Author-X-Name-Last: Daly 
Title: Trade and migration flows between some CEE countries and the UK 
Abstract:
  The recent enlargement of the European Union (EU) has enhanced interest
 in the causes and also the consequences of migration between Central and
 Eastern European (CEE) and Western European countries. This paper
 considers the possibility that some of these consequences make themselves
 felt in the trade flows between migrants' countries of origin and
 destination. Using a panel of data covering a number of CEE countries
 between 1996 and 2003, we employ an augmented gravity model to examine the
 effects of immigration from these transition countries on their bilateral
 trade flows with the UK. We pay attention to a number of issues that have
 been raised within the literature on gravity models. We find evidence that
 migration positively enhances the bilateral exports of the migrants' home
 country; however, there is less (but some) evidence that the imports from
 their destination country are also enhanced. 
Journal: The Journal of International Trade & Economic Development 
Pages: 61-78 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: trade, migration, gravity models, 
X-DOI: 10.1080/09638190902757426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757426 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:61-78




Template-Type: ReDIF-Article 1.0
Author-Name: Athina Zervoyianni 
Author-X-Name-First: Athina 
Author-X-Name-Last: Zervoyianni 
Author-Name: Athanasios Anastasiou 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Anastasiou 
Title: Convergence of shocks and trade in the enlarged European Union 
Abstract:
  This paper explores the relation between trade flows and cross-country
 symmetry of supply and demand shocks using data from the EU-27 countries.
 Increased bilateral trade intensity is found to have a positive impact on
 the correlation of both demand and supply shocks. Intra-industry trade is
 found to be positively linked to correlations of supply-side shocks but
 negatively linked to correlations of demand shocks. Our results thus
 provide support for the argument that aggregate demand spillovers and
 intra-industry trade, rather than specialization, dominate in the process
 through which trade flows affect the cross-country transmission of shocks
 in Europe. At the same time, our estimates suggest that monetary-policy
 convergence in Europe (the circulation of the euro), while having
 increased symmetry of supply-side shocks, has had no direct favourable
 impact on symmetry of demand shocks. By contrast, the process of
 fiscal-policy convergence is found to have resulted in more correlated
 demand shocks across the EU member states. 
Journal: The Journal of International Trade & Economic Development 
Pages: 79-114 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: trade flows, convergence of shocks, European integration, cyclical macroeconomic fluctuations, 
X-DOI: 10.1080/09638190902757434 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757434 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:79-114




Template-Type: ReDIF-Article 1.0
Author-Name: Lorea Blasco 
Author-X-Name-First: Lorea 
Author-X-Name-Last: Blasco 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Leroy Stodick 
Author-X-Name-First: Leroy 
Author-X-Name-Last: Stodick 
Title: A general equilibrium analysis of the effects of Doha Round Declaration and African Cotton Initiative on Zambian cotton sector 
Abstract:
  Cotton plays a strategic role in the development policies and poverty
 reduction programs of a number of African countries. Several African
 countries have introduced reforms in the cotton sector to improve its
 quality and competitiveness. The impact of these reforms has been
 virtually nullified because the WTO members continue to apply support
 measures and subsidies that distort global market prices. These are the
 arguments behind the African Cotton Initiative (ACI) proposed in 2003 and
 2006 WTO Ministerial meetings. Specifically, the ACI proposed (a) phasing
 out the rich countries' cotton domestic supports; (b) duty and quota free
 access for African countries' cotton to developed countries' markets; and
 (c) removal of rich countries' cotton export subsidies. In contrast, the
 Doha Round Reductions agreed upon in 2005 WTO Ministerial meetings in Hong
 Kong are (a) all forms of export subsidies for cotton will be eliminated
 by developed countries; and (b) developed countries will give duty and
 quota free access for cotton exports from the least-developed countries
 (LDCs). This paper uses a computable general equilibrium (CGE) model of
 the Zambian economy to study the impact of the Doha Round (DR) agreement
 and the ACI proposal on the cotton sector in Zambia and to contribute to
 the analysis of further agricultural trade liberalization and its
 implications for poor countries. The results show that Zambian cotton
 export price and exports rise, respectively, by 4.23% and 11.12% in the DR
 scenario and 15.65% and 43.2% in the ACI scenario. The labor employment in
 the cotton sector increases by 12.52% and 52.06% in the DR and ACI
 scenarios, respectively, which is highly beneficial as Zambia is enduring
 50% unemployment rate. Liberalization in the cotton world market also
 increases the GDP and rural household welfare. 
Journal: The Journal of International Trade & Economic Development 
Pages: 115-137 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: cotton initiative, Doha Round, general equilibrium analysis, Zambian cotton sector, 
X-DOI: 10.1080/09638190902757467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757467 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:115-137




Template-Type: ReDIF-Article 1.0
Author-Name: Hyejoon Im 
Author-X-Name-First: Hyejoon 
Author-X-Name-Last: Im 
Title: Equilibrium coalition structures in the presence of foreign direct investment 
Abstract:
  This paper incorporates foreign direct investment (FDI) into the
 examination of trading bloc formation with endogenously determined
 coalition structures. In so doing, we build a three-country model, in
 which firms serve foreign markets either by exporting or undertaking FDI,
 and consider a coalition formation game with the Coalition Proof Nash
 Equilibrium as an equilibrium concept. We find that the equilibrium
 coalition structure varies upon firms characterization before and after
 the formation of a trading bloc. As in the literature, when all firms are
 exporters in the pre- and post-formation, bilateralism can be an
 equilibrium outcome. However, when trade barriers are not so high as to be
 trade-prohibitive and the environment is favorable to multinational
 activities in the pre- or post-formation, only global free trade will
 prevail as an equilibrium coalition structure. 
Journal: The Journal of International Trade & Economic Development 
Pages: 139-167 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: trading blocs, FTA, multinational corporations, FDI, coalition formation game, 
X-DOI: 10.1080/09638190902757475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757475 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:139-167




Template-Type: ReDIF-Article 1.0
Author-Name: Xuepeng Liu 
Author-X-Name-First: Xuepeng 
Author-X-Name-Last: Liu 
Title: Trade and income convergence: Sorting out the causality 
Abstract:
  This paper studies the linkage between international trade and income
 convergence across countries. Different theories offer conflicting
 predictions regarding how they might affect each other. In the existing
 empirical literature estimating the trade impact on income convergence, a
 long-lasting problem is the reverse causality from income convergence to
 trade. This paper provides a disaggregated bilateral trade data analysis
 to solve this problem. The results show that the reverse causality from
 income convergence to trade exists in differentiated product sectors, but
 not in homogeneous product sectors. Trade in homogeneous sectors reduces
 the income gaps among trade partners, but it is not significantly affected
 by their income difference. Therefore, the negative effect of trade in
 homogeneous sectors on the income gap is free from the reverse causality
 problem. It can be taken as a pure evidence of trade-induced income
 convergence. This result is robust to various econometric methods. 
Journal: The Journal of International Trade & Economic Development 
Pages: 169-195 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: trade, income convergence, causality, 
X-DOI: 10.1080/09638190802250076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802250076 
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: The Softwood Lumber War: Politics, economics, and the long U.S.-Canadian trade dispute 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 197-203 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638190902786631 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902786631 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:197-203




Template-Type: ReDIF-Article 1.0
Author-Name: Devashish Mitra 
Author-X-Name-First: Devashish 
Author-X-Name-Last: Mitra 
Author-Name: Beyza Ural 
Author-X-Name-First: Beyza 
Author-X-Name-Last: Ural 
Title: Indian manufacturing: A slow sector in a rapidly growing economy 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 205-205 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638190902895432 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902895432 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:205-205




Template-Type: ReDIF-Article 1.0
Author-Name: Vassilis Monastiriotis 
Author-X-Name-First: Vassilis 
Author-X-Name-Last: Monastiriotis 
Author-Name: George Agiomirgianakis 
Author-X-Name-First: George 
Author-X-Name-Last: Agiomirgianakis 
Title: The economics of the Fifth Enlargement: Trade, migration and economic synchronicity 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 3-9 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638190902757350 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757350 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:3-9




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Spies 
Author-X-Name-First: Julia 
Author-X-Name-Last: Spies 
Author-Name: Helena Marques 
Author-X-Name-First: Helena 
Author-X-Name-Last: Marques 
Title: Trade effects of the Europe agreements: A theory-based gravity approach 
Abstract:
  In this paper, we develop a new version of a theory-based gravity
 equation to properly account for the relative price indices initially
 proposed by Anderson and van Wincoop (2003). The partially time-varying
 character of our multilateral resistance variables overcomes the bias
 present in earlier studies that solely rely on country or country pair
 fixed effects. Applying the augmented gravity equation to the process of
 European Union (EU) integration during the 1990s, we find robust evidence
 that the Free Trade Agreements (FTAs) with the Central and Eastern
 European Countries (CEECs) have substantially increased intra-group trade,
 in the case of the Czech and Slovak Republic and Slovenia at the expense
 of the Rest of the World (ROW). Since decreasing multilateral trade
 resistance negatively influences a country's bilateral imports but may be
 positively correlated with a bilateral FTA, earlier East-West studies,
 which ignored the relative price term's time-varying character, tend to be
 downward biased. Indeed, our results indicate that once we correct for the
 omitted variable bias, the FTAs with the CEECs created 7 to 20% more new
 trade compared with the scenario where only time-invariant country pair
 effects were included. 
Journal: The Journal of International Trade & Economic Development 
Pages: 11-35 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: free trade agreements, gravity equation, Central and Eastern Europe, panel data, 
X-DOI: 10.1080/09638190902757368 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757368 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:11-35




Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Cie&#x15b;lik 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Cie&#x15b;lik 
Title: Bilateral trade volumes, the gravity equation and factor proportions 
Abstract:
  The gravity equation has been widely used in studying the determinants of
 bilateral trade flows. Despite their dubious theoretical foundations
 gravity models have been extremely successful empirically. All theoretical
 attempts to provide a formal justification for the gravity equation assume
 complete specialization in production. This leads to a misleading
 impression that complete specialization is a necessary condition for
 deriving the gravity equation. In this paper we demonstrate formally that
 the gravity equation can be derived also from a variety of incomplete
 specialization models based on both neoclassical and monopolistic
 competition assumptions. The common prediction that emerges from these
 models is that factor proportion variables, along with the country size
 variables, play a key role in determination of bilateral trade volumes,
 however, their impact is model specific. The neglect of these variables in
 empirical studies employing gravity equations derived from complete
 specialization models might result in estimates that suffer from the
 omitted variable bias if trading partners differ in terms of their
 relative factor endowments. 
Journal: The Journal of International Trade & Economic Development 
Pages: 37-59 
Issue: 1 
Volume: 18 
Year: 2009 
Keywords: bilateral trade, factor proportions, gravity equation, incomplete specialization, 
X-DOI: 10.1080/09638190902757400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902757400 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:1:p:37-59




Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Janus 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Janus 
Title: Democracy, capital flows, and odious debt 
Abstract:
  This paper relates democracy, public and private international capital
 flows, and odious debt. Democracy commits a ruler to pass borrowed funds
 on to the private sector which builds the country's international
 collateral, and the consequent rise in the credit ceiling is a
 Pareto-improvement within a range because the ruler can appropriate a
 smaller share of the rising loan. However, the ruler may still impose
 odious debt in the sense that the private sector prefers the country to
 borrow less. Under certain conditions, a fall in the world interest rate
 or a rise in productivity growth increases the optimal levels of
 democracy, borrowing, investment, and welfare. I offer suggestive evidence
 from a global panel. 
Journal: The Journal of International Trade & Economic Development 
Pages: 207-234 
Issue: 2 
Volume: 18 
Year: 2009 
Keywords: democracy, capital flows, odious debt, globalization, 
X-DOI: 10.1080/09638190902916485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916485 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:207-234




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Brenton 
Author-X-Name-First: Paul 
Author-X-Name-Last: Brenton 
Author-Name: Erik von Uexkull 
Author-X-Name-First: Erik 
Author-X-Name-Last: von Uexkull 
Title: Product specific technical assistance for exports - has it been effective? 
Abstract:
  The international community is placing increasing emphasis on aid for
 trade to assist low income countries to integrate into the global economy
 and to address their domestic constraints to export driven growth. There
 is, however, scant information on the effectiveness of previous support
 for export development to inform the design of new initiatives. In this
 paper, we exploit information on product specific technical assistance for
 trade and estimate a simple partial equilibrium model to assess the impact
 on the key measurable outcome - exports of the product subject to
 assistance. We apply a difference in differences approach to isolate the
 impact of the policy interventions and draw four main conclusions: on
 average, export development (ED) programs have coincided with or predated
 stronger export performance; such programs appear to be more effective
 where there is already significant export activity; there is some concern
 about the additionality of the programs and that support may be being
 channeled to sectors that would have prospered anyway; ultimately,
 conclusions strongly depend on what one postulates would have happened in
 the absence of the policy intervention, so the definition of a credible
 counterfactual is of utmost importance for the evaluation of technical
 assistance for exports. 
Journal: The Journal of International Trade & Economic Development 
Pages: 235-254 
Issue: 2 
Volume: 18 
Year: 2009 
Keywords: aid for trade, export development, difference in differences, developing countries, 
X-DOI: 10.1080/09638190902916444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916444 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:235-254




Template-Type: ReDIF-Article 1.0
Author-Name: Radhames Lizardo 
Author-X-Name-First: Radhames 
Author-X-Name-Last: Lizardo 
Title: Exchange rate volatility in Latin American and the Caribbean region: Evidence from 1985 to 2005 
Abstract:
  Using a total of 28 Latin American and Caribbean countries, this study
 finds a negative relationship between trade and exchange rate volatility.
 The econometric tool for this specific analysis is the widely used gravity
 model, in a panel data context. A similar condition is detected between
 inbound foreign direct investment and exchange rate volatility. The
 results of the study support the hypothesis that significant exchange rate
 volatility has a negative impact on the economies of the region and that
 achieving exchange rate stability should be a goal of policy makers in the
 context of Latin America and the Caribbean. 
Journal: The Journal of International Trade & Economic Development 
Pages: 255-273 
Issue: 2 
Volume: 18 
Year: 2009 
Keywords: economic growth, gravity model, real exchange rate volatility, foreign direct investment, 
X-DOI: 10.1080/09638190902916501 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916501 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:255-273




Template-Type: ReDIF-Article 1.0
Author-Name: Farshid Mojaver 
Author-X-Name-First: Farshid 
Author-X-Name-Last: Mojaver 
Title: Sources of economic growth and stagnation in Iran 
Abstract:
  There is more than a 10 percentage point difference in the economic
 performance of Iran in roughly the two decades before and after the
 Islamic revolution in 1979. This paper aims to explain the difference. A
 standard measure of Total Factor Productivity (TFP) calculated at the
 aggregate level shows that over one-third of the difference in economic
 performance can be explained by the change in TFP growth rates in the two
 periods. The question is further pursued at the manufacturing level. A
 time-series cross sectional analysis of the manufacturing sector confirms
 that TFP growth rates fell after the revolution and did not recover
 anywhere close to their pre revolution levels even after the Iran-Iraq
 war. The regression analyses show that decreasing returns to scale and
 mark-up pricing behavior have developed in the manufacturing sector under
 the Islamic Republic. A Tornqvist measure of TFP, corrected for market
 imperfections and non-constant returns to scale technology, is used to
 explain sources of productivity slowdown. The results show that
 manufacturing TFP increases with (i) private participation rate in
 economic activities and (ii) exports. Manufacturing TFP falls with (iii)
 increase in capital-intensity and (iv) higher entry/exit barriers. 
Journal: The Journal of International Trade & Economic Development 
Pages: 275-295 
Issue: 2 
Volume: 18 
Year: 2009 
Keywords: TFP growth, institutional change, manufacturing, returns to scale, imperfect competition, 
X-DOI: 10.1080/09638190902916519 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916519 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:275-295




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: Domestic sale requirement, price supports, export quota, and inefficiencies 
Abstract:
  Export tax and export quota are traditional policies used by developing
 countries to restrict exports. However, a new breed of export control
 policy, namely domestic sale requirement, is pursued by some developing
 countries. According to this policy, a certain percentage of the output is
 required to be sold in the domestic market and only the remaining
 production can be exported. Indonesia has undertaken this policy in
 addition to subsidizing domestic sales of crude oil to benefit the
 consumers. This study analyzes the effects of these two policies on
 prices, quantities, and welfare, and compares these effects to those of
 export quota. The results show that the domestic sale
 requirement-cum-subsidy policies are clearly inferior to free trade but
 superior to export quota, because under these policies, unlike under the
 export quota, supply is allowed to respond to world market prices. 
Journal: The Journal of International Trade & Economic Development 
Pages: 297-309 
Issue: 2 
Volume: 18 
Year: 2009 
Keywords: domestic sale regulation, export quota, price support, subsidy, welfare, 
X-DOI: 10.1080/09638190902916469 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916469 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:297-309




Template-Type: ReDIF-Article 1.0
Author-Name: Kara Reynolds 
Author-X-Name-First: Kara 
Author-X-Name-Last: Reynolds 
Title: The biggest losers (and winners) from US trade liberalization 
Abstract:
  Many development experts worry that continuing reductions of tariff
 levels in high-income countries will limit trade flows from developing
 countries that benefit from preferential trade programs because of
 'preference erosion.' Using a panel of US import data between the years of
 1997 and 2005, I find that reductions in preference margins will
 significantly diminish imports of some products, particularly from
 lower-middle and low income countries; for example, a 1% reduction in the
 US tariff on a product that is currently imported duty-free from
 developing countries will decrease imports of that product from
 lower-middle income countries by an average of 2.6%. However, many
 products produced by developing countries fail to qualify for preferential
 tariffs, thus a gradual reduction in all US tariff rates is expected to
 have only a modest impact on trade flows from developing countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 421-442 
Issue: 3 
Volume: 18 
Year: 2009 
Keywords: Generalized System of Preferences, trade diversion, preferential tariffs, 
X-DOI: 10.1080/09638190902986553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902986553 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:3:p:421-442




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Kellenberg 
Author-X-Name-First: Derek 
Author-X-Name-Last: Kellenberg 
Title: US affiliates, infrastructure and growth: A simultaneous investigation of critical mass 
Abstract:
  A structural model of a small open economy is developed that demonstrates
 how the impacts of infrastructure on GDP, factor productivity, and
 multinational industrial location can be decomposed into direct and
 indirect general equilibrium effects. The model is then estimated on a
 panel of 28 countries and it is found that schools and telecommunications
 have a positive and significant direct effect on domestic growth and that
 there are greater marginal returns for countries with higher investment
 levels; a result that is suggestive of a critical mass story. However,
 once spurious correlation of firm location and the indirect effects
 through wages and multinational activity are accounted for, the total
 effects of telecommunications and schools on growth are found to be higher
 than direct estimates would suggest. The results reveal important
 implications for understanding the channels through which infrastructure
 influences growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 311-345 
Issue: 3 
Volume: 18 
Year: 2009 
Keywords: infrastructure, growth, multinational corporations, development, wages, schools, telecommunications, 
X-DOI: 10.1080/09638190902986488 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902986488 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:3:p:311-345




Template-Type: ReDIF-Article 1.0
Author-Name: Donna Lee 
Author-X-Name-First: Donna 
Author-X-Name-Last: Lee 
Author-Name: Jian Zhang 
Author-X-Name-First: Jian 
Author-X-Name-Last: Zhang 
Title: Efficiency, equity, and environmental implications of trade liberalization: A computable general equilibrium analysis 
Abstract:
  This paper evaluates the effect of trade liberalization on global
 efficiency, equity, and the environment using global welfare, welfare
 redistribution, and carbon emission as indicators. A static, computable
 general equilibrium trade model with explicit representation of
 agricultural production and energy use is used to simulate a series of new
 scenarios in which 1997 baseline import tax and export subsidy trade
 barrier equivalents are scaled back. Findings indicate that with trade
 liberalization agricultural output declines, energy use increases, and
 carbon emissions rise. Global welfare rises revealing an overall increase
 in efficiency; however, gains to poorer nations come at the expense of
 richer nations. An increase in the use of polluting inputs such as coal in
 developing countries suggests poorer nations will risk environmental
 degradation with the lowering of trade barriers. 
Journal: The Journal of International Trade & Economic Development 
Pages: 347-371 
Issue: 3 
Volume: 18 
Year: 2009 
Keywords: agriculture, energy, welfare, climate change, modeling, 
X-DOI: 10.1080/09638190902986504 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902986504 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:3:p:347-371




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: On the relation between financial flows and the trade balance in developing countries 
Abstract:
  Using time-series annual data for a sample of developing countries, this
 paper investigates the empirical validity of theoretical predictions
 regarding determinants of fluctuations in the trade balance and financial
 flows. The motive is to see if standard conjectures about possible
 determinants have broad support across these countries. While the evidence
 provides some support to theoretical predictions, statistical significance
 appears limited. Given mixed results, a large component of fluctuations in
 the trade balance and financial flows appears to be random in developing
 countries. Such randomness limits the ability of policy makers to
 interpret cyclical variations in components of the balance of payments.
 Moreover, this randomness raises concerns about the sustainability of a
 widening trade deficit and sources of financing in many developing
 countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 373-393 
Issue: 3 
Volume: 18 
Year: 2009 
Keywords: external financing, trade flows, cyclicality, current account sustainability, 
X-DOI: 10.1080/09638190902986520 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902986520 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:3:p:373-393




Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Masakure 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Masakure 
Author-Name: Spencer Henson 
Author-X-Name-First: Spencer 
Author-X-Name-Last: Henson 
Author-Name: John Cranfield 
Author-X-Name-First: John 
Author-X-Name-Last: Cranfield 
Title: Standards and export performance in developing countries: Evidence from Pakistan 
Abstract:
  Several studies have analyzed the exporting pattern and performance of
 firms located in a developing country. However, there is limited work on
 the impact of standards on the performance of developing country exporting
 firms. This paper uses data from Pakistan to assess the effects of ISO
 9000 certification on export sales and share of exports (relative to
 domestic and export sales) for textiles and the agro-food sector. As
 certification is not randomly assigned but there is 'self-selection into
 treatment', we use propensity matching methods to estimate the causal
 effect of certification on the change in the firms' value of export sales
 between 2000 and 2004. The results show that export performance is
 positively correlated with ISO 9000 certification. 
Journal: The Journal of International Trade & Economic Development 
Pages: 395-419 
Issue: 3 
Volume: 18 
Year: 2009 
Keywords: standards, trade, Pakistan, developing countries, exports, 
X-DOI: 10.1080/09638190902986538 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902986538 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:3:p:395-419




Template-Type: ReDIF-Article 1.0
Author-Name: Hiau Looi Kee 
Author-X-Name-First: Hiau Looi 
Author-X-Name-Last: Kee 
Title: Findlay-Grubert versus Rybczynski: Testing growth hypotheses in classic trade theories using Singapore's industries 
Abstract:
  In the classic literature of multi-sector small open economy, there are
 two, competing hypotheses on growth. Findlay and Grubert (1959) showed
 that productivity growth in one sector affects the factor intensity of all
 sectors. Rybczynski (1955) presents the long run growth effects of
 endowment accumulations. Focusing on the most open small economy, this
 paper tests the two hypotheses directly by estimating the relative
 contributions at the industry level for Singapore. Results suggest that
 productivity contributes more in the electronics industry, but domestic
 endowments matter more in other industries. This paper is also the first
 to present evidence on the Findlay-Grubert effect by showing that the
 productivity growth of the electronics industry pushes up the
 capital-labor ratios of all industries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 443-486 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: trade and growth, productivity, factor endowments, Rybczynski effects, Findlay-Grubert effects, East Asian miracle, 
X-DOI: 10.1080/09638190903217727 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217727 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:443-486




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Ghazalian 
Author-X-Name-First: Pascal 
Author-X-Name-Last: Ghazalian 
Author-Name: W. Hartley Furtan 
Author-X-Name-First: W. Hartley 
Author-X-Name-Last: Furtan 
Title: CUSFTA effects: A joint consideration of trade and multinational activities 
Abstract:
  This paper estimates the effects of the Canada-US Free Trade Agreement
 (CUSFTA) on trade, sales of foreign affiliates of multinational
 enterprises, and total bilateral commerce (aggregate of both trade ands
 sales of foreign affiliates) in the manufacturing sector. The empirical
 investigation is carried out over a panel dataset covering the US
 bilateral transactions with the Organization for Economic Cooperation and
 Development (OECD) countries for the period 1983-1998. The empirical
 specification is guided by a gravity-based model that accounts for trade
 and the operation of foreign affiliates as alternative modes of accessing
 foreign markets. The results show that the CUSFTA induced an increase in
 inward and outward trade between the US and Canada, but also led to a
 significant reduction in sales of their foreign affiliates in the
 corresponding CUSFTA partner country. This outcome implies that the
 trade-generating effect of the CUSFTA is overstated. 
Journal: The Journal of International Trade & Economic Development 
Pages: 487-504 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: free trade agreement, gravity, multinational enterprises, foreign affiliates, trade, 
X-DOI: 10.1080/09638190903217453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217453 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:487-504




Template-Type: ReDIF-Article 1.0
Author-Name: Eleonora Cavallaro 
Author-X-Name-First: Eleonora 
Author-X-Name-Last: Cavallaro 
Author-Name: Marcella Mulino 
Author-X-Name-First: Marcella 
Author-X-Name-Last: Mulino 
Title: Technological catching up, competitiveness and growth 
Abstract:
  We build an endogenous growth model for a technologically laggard country
 and analyse the implications for competitiveness when trade occurs in
 quality-differentiated products. We find that the conditions for an
 optimal growth with a balanced current account and no adverse
 terms-of-trade effects depend on the country's ability to compete in
 'quality dominated markets' thanks to a successful technological catching
 up. We argue that the greater the ability to absorb foreign knowledge and
 improve upon foreign technologies, the greater the gains in
 competitiveness, and the benefits to long-run growth. A numerical
 simulation confirms our findings. 
Journal: The Journal of International Trade & Economic Development 
Pages: 505-525 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: vertical innovation, technological change and catching up, economic growth of open economies, 
X-DOI: 10.1080/09638190903217370 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217370 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:505-525




Template-Type: ReDIF-Article 1.0
Author-Name: Debarshi Das 
Author-X-Name-First: Debarshi 
Author-X-Name-Last: Das 
Title: An explanation of share tenancy in terms of unemployment, social norms and power 
Abstract:
  Due to persistent unemployment, peasant families in developing countries
 tend to employ more labour on the leased in land plots than a capitalist
 would. In labour surplus societies, therefore, landlords may earn higher
 surplus from leasing out land than from self-cultivation. By endogenising
 disguised unemployment this paper shows that greater power and unity of
 landlords and conservative social norms may explain the persistence of
 share tenancy in developing economies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 527-540 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: tenancy, share tenancy, capitalist farming, Nash equilibrium, subgame perfect Nash equilibrium, coalition proof Nash equilibrium, 
X-DOI: 10.1080/09638190903217651 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217651 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:527-540




Template-Type: ReDIF-Article 1.0
Author-Name: Kazumichi Iwasa 
Author-X-Name-First: Kazumichi 
Author-X-Name-Last: Iwasa 
Author-Name: Toru Kikuchi 
Author-X-Name-First: Toru 
Author-X-Name-Last: Kikuchi 
Title: Indirect network effects and the impact of trade liberalization: A note 
Abstract:
  In this note, we examine how trade liberalization affects production
 structure in the presence of indirect network effects (hardware/software
 systems). For these purposes we construct a simple two-country model of
 trade with two incompatible hardware technologies. It is shown that, given
 that both types of hardware exist before trade liberalization,
 liberalization and increased intra-industry trade in software products may
 reduce the variety of hardware technology via intensified network effects.
 It is also shown that, contrary to the findings of previous studies on
 intra-industry trade, some consumers may become worse off as the result of
 trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 541-552 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: indirect network effects, hardware/software systems, trade liberalization, intra-industry trade, 
X-DOI: 10.1080/09638190802464966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802464966 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:541-552




Template-Type: ReDIF-Article 1.0
Author-Name: Ayca Tekin-Koru 
Author-X-Name-First: Ayca 
Author-X-Name-Last: Tekin-Koru 
Title: Technology transfers and optimal entry strategies for the multinational firm 
Abstract:
  This paper develops an oligopolistic model in which firms can choose
 between three different modes of entry to address three broad questions:
 (1) What is the role of trade costs and start-up costs in the entry
 decision if cross-border acquisitions involve no technology transfers? (2)
 How does the level of harmonization of technologies between the
 multinational and the acquired firm change the optimal mode of entry? (3)
 What is the role of market concentration on the entry decision given
 positive levels of technology transfers to the acquired firm? We show that
 in the case of cross-border acquisitions higher tariffs may act as an
 entry barrier by raising the reservation price of the acquisition target.
 Our analysis also underlines the importance of the usefulness of
 transferred technology. Acquisitions become more likely as the degree of
 harmonization between the multinational's and acquired firm's assets
 increases. Finally, we demonstrate that market concentration plays a
 non-trivial role in the entry decision when the technology transfers are
 not complete or as useful on the multinational. 
Journal: The Journal of International Trade & Economic Development 
Pages: 553-574 
Issue: 4 
Volume: 18 
Year: 2009 
Keywords: foreign direct investment, entry modes, technology transfers, tariff-jumping, 
X-DOI: 10.1080/09638190903217503 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217503 
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Handle: RePEc:taf:jitecd:v:18:y:2009:i:4:p:553-574




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Hoekman 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Hoekman 
Author-Name: Alessandro Nicita 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Nicita 
Title: Assessing the Doha Round: Market access, transactions costs and aid for trade facilitation 
Abstract:
  This paper compares the predicted trade impacts of a successful Doha
 Round with the trade effects of actions aimed at reducing domestic trade
 costs for traders in developing countries and the world as a whole. We
 show that a relatively small reduction in trade costs will generate trade
 impacts that are larger than what is likely to emerge even from a
 relatively ambitious Doha Round market access outcome. This illustrates
 the importance of complementing market access commitments with measures to
 reduce trade costs in developing countries - which is the objective of the
 trade facilitation negotiations in the Doha Round - and additional aid for
 trade to assist countries in covering the costs of improving trade-related
 procedures and processes. 
Journal: The Journal of International Trade & Economic Development 
Pages: 65-79 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: market access, Aid-For-Trade, trade facilitation, trade costs, WTO, Doha Round, trade negotiations, 
X-DOI: 10.1080/09638190903327476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327476 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:65-79




Template-Type: ReDIF-Article 1.0
Author-Name: Will Martin 
Author-X-Name-First: Will 
Author-X-Name-Last: Martin 
Author-Name: Aaditya Mattoo 
Author-X-Name-First: Aaditya 
Author-X-Name-Last: Mattoo 
Title: The Doha Development Agenda: What's on the table? 
Abstract:
  The outlines of a potential agreement, emerging after seven years of
 negotiations, imply that Doha offers three key potential benefits: reduced
 uncertainty of market access in goods and services; improved market access
 in agriculture and manufacturing; and the mobilization of resources to
 deal with the trade problems of least developed countries. WTO Members
 have offered to make large reductions in legally bound levels of
 protection in goods and services. The reductions in currently applied
 levels of protection are smaller. For the least developed countries, the
 proposed 'duty free and quota free' access will only add significantly to
 their access under existing preferential access arrangements if industrial
 and developing country members include vital tariff lines. The initiatives
 on trade facilitation and aid for trade can play a valuable catalytic role
 in promoting reform and mobilizing assistance, but substantial effort is
 still needed to translate notional benefits into actual gain. 
Journal: The Journal of International Trade & Economic Development 
Pages: 81-107 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: trade, liberalization, WTO, Doha Agenda, 
X-DOI: 10.1080/09638190903327609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327609 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:81-107




Template-Type: ReDIF-Article 1.0
Author-Name: Kym Anderson 
Author-X-Name-First: Kym 
Author-X-Name-Last: Anderson 
Title: Can the WTO reduce agricultural trade distortions? 
Abstract:
  Earnings from farming in many developing countries have been depressed by
 anti-agricultural biases in own-country price and trade policies, as well
 as by governments of richer countries favoring local farmers with import
 barriers and subsidies. Both sets of policies reduce national and global
 economic welfare, add to global inequality and poverty, and are mostly the
 result of trade restrictions. Yet until recently they have not been
 disciplined by the GATT or WTO. New evidence illustrates where the GATT
 and WTO have failed to prevent rises in agricultural protectionism,
 including in developing countries. Global economy wide modeling results
 reveal that substantial trade policy reform has been achieved since the
 mid-1980s in ways that have helped developing country farmers, but that
 there remains very considerable scope for further farm policy reform. In
 the decades ahead, the effects of policies on farmers and others in
 developing countries depend on whether an ambitious Doha Round agreement
 is signed and countries continue the recent trends towards free trade.
 Should Doha fail, agricultural protectionism may well grow in emerging
 economies, suggesting that the stakes in the Doha Round are much higher
 than is traditionally believed. 
Journal: The Journal of International Trade & Economic Development 
Pages: 109-134 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: agricultural policy reforms, WTO, Uruguay Round, Doha Development Agenda, 
X-DOI: 10.1080/09638190903327518 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327518 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:109-134




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Low 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Low 
Author-Name: Marina Murina 
Author-X-Name-First: Marina 
Author-X-Name-Last: Murina 
Title: Managing cooperation on climate change: What can we learn from the WTO? 
Abstract:
  Governments are striving to define the terms of international cooperation
 to address climate change. This paper considers whether there are lessons
 to be learned from more than six decades of international cooperation on
 trade through the GATT/WTO. It argues that in comparison to trade
 cooperation, the climate change negotiations are taking place against a
 background of great uncertainty, a long gap in time between actions and
 results, significant distributional issues, basic differences among
 parties in terms of the appropriate balance of national responsibilities
 for action, and sharp differences over policy approaches. All these
 factors make the negotiations more complex and less likely to result in
 the kind of detailed policy commitments that characterize the GATT/WTO.
 Nevertheless, the paper argues that excessive imprecision or reliance or
 voluntarism at the national level will result in insufficient effort to
 address the challenges of climate change. A universal agreement with
 differentiated but clear obligations, a phased approach to the assumption
 of these obligations, and creative flexibilities offer the best chance of
 success. 
Journal: The Journal of International Trade & Economic Development 
Pages: 135-161 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: trade policy, international trade organizations, trade and environment, government policy, 
X-DOI: 10.1080/09638190903327567 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327567 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:135-161




Template-Type: ReDIF-Article 1.0
Author-Name: Marion Jansen 
Author-X-Name-First: Marion 
Author-X-Name-Last: Jansen 
Title: Developing countries, standards and the WTO 
Abstract:
  Quality standards play an important role in global transactions, but can
 represent a barrier to trade if they differ across countries.
 International standards reduce transaction costs and WTO Agreements
 encourage the use of such standards. This paper presents a simple
 analytical framework to analyse the welfare effects of quality standards
 in a trade set-up, with a particular focus on voluntary measures. It
 illustrates that international standards can have positive or negative
 welfare effects for individual countries. The paper describes developing
 countries' involvement in international standard setting bodies and
 suggests that their engagement needs to be enhanced in order for
 international standards to work in the advantage of developing economies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 163-185 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: World Trade Organization, harmonization, standards, labels, 
X-DOI: 10.1080/09638190903327492 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327492 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:163-185




Template-Type: ReDIF-Article 1.0
Author-Name: K. C. Fung 
Author-X-Name-First: K. C. 
Author-X-Name-Last: Fung 
Author-Name: Alicia Garcia-Herrero 
Author-X-Name-First: Alicia 
Author-X-Name-Last: Garcia-Herrero 
Author-Name: Alan Siu 
Author-X-Name-First: Alan 
Author-X-Name-Last: Siu 
Title: Developing countries and the World Trade Organization: A foreign influence approach 
Abstract:
  This paper aims at providing an analytical examination of the criticism
 that the WTO is unfair and hurts the weak, developing countries. We
 utilize a formal model with the following features: in both the powerful
 and the weak economies, pressure groups lobby to influence their trade
 policies in their respective countries. We then allow the powerful country
 the exclusive ability to spend resources to facilitate the lobbying of one
 of the pressure groups in the weak country, thereby moving the trade
 policy of the developing country in favor of the powerful trading partner.
 Next we compare the effects of asymmetric foreign influence in a world
 with no WTO and no multilateral principles (most-favored-nation principle,
 MFN, and the negotiation principle of reciprocity) to a situation with WTO
 and its associated non-discrimination principles. We show that the weak,
 developing country will have fewer 'unfair' concessions of market openings
 and in general will be better off with the WTO and with rules of
 non-discrimination. 
Journal: The Journal of International Trade & Economic Development 
Pages: 187-201 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: WTO, developing countries, lobby groups, foreign influence, 
X-DOI: 10.1080/09638190903327302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327302 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:187-201




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: The political economy of the World Bank: The early years 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 203-205 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190903445542 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903445542 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:203-205




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Amo Yartey 
Author-X-Name-First: Charles Amo 
Author-X-Name-Last: Yartey 
Title: Capital market liberalization and development 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 207-210 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190802573089 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802573089 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:207-210




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Industrial development for the 21st century 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 211-214 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190902748938 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902748938 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:1:p:211-214




Template-Type: ReDIF-Article 1.0
Author-Name: K. C. Fung 
Author-X-Name-First: K. C. 
Author-X-Name-Last: Fung 
Author-Name: Robert Stern 
Author-X-Name-First: Robert 
Author-X-Name-Last: Stern 
Title: Introduction 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 3-7 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190903327344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327344 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alan Deardorff 
Author-X-Name-First: Alan 
Author-X-Name-Last: Deardorff 
Title: Economic effects of 'leveling the playing field' in international trade 
Abstract:
  This paper uses simple economic theory to examine the effects of various
 policies that are intended to level the playing field in international
 trade. That is, when foreign producers are given advantages over domestic
 producers by government subsidies or other interventions that lower their
 costs, domestic firms may argue that their own governments should either
 provide comparable assistance or should protect them from competing with
 the foreign firms on grounds of fairness. Economic analysis easily shows
 that granting these requests is usually harmful for the domestic economy
 as a whole, but that may not prevent such policies from being implemented.
 Therefore this paper examines what the further effects of such policies
 may be. The main conclusion that emerges is that policies to level the
 playing field most often overcompensate those who request them, making
 them better off than if the playing field had not been tilted against them
 in the first place. 
Journal: The Journal of International Trade & Economic Development 
Pages: 9-32 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: subsidies, countervailing duties, 
X-DOI: 10.1080/09638190903327419 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327419 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chad Bown 
Author-X-Name-First: Chad 
Author-X-Name-Last: Bown 
Author-Name: Rachel McCulloch 
Author-X-Name-First: Rachel 
Author-X-Name-Last: McCulloch 
Title: Developing countries, dispute settlement, and the Advisory Centre on WTO Law 
Abstract:
  Critical appraisals of the current and potential benefits from developing
 country engagement in the WTO focus mainly on the Doha Round of
 negotiations. This paper examines a different aspect of developing country
 participation in the WTO: use of the WTO dispute settlement system to
 enforce foreign market access rights already negotiated in earlier rounds
 of multilateral negotiations. We examine data on developing country use
 from 1995 through 2008 of the WTO Dispute Settlement Understanding (DSU)
 to enforce foreign market access. The data reveal three notable trends:
 developing countries' sustained rate of self-enforcement actions despite
 declining use of the DSU by developed countries, developing countries'
 increased use of the DSU to self-enforce their access to the markets of
 developing as well as developed countries, and the prevalence of disputes
 targeting highly observable causes of lost foreign market access, such as
 antidumping, countervailing duties, and safeguards. The paper also
 examines how introduction of the Advisory Centre on WTO Law (ACWL) into
 the WTO system in 2001 has affected developing countries' use of the DSU
 to self-enforce their foreign market access rights. A first pass at the
 data indicates that developing country use of the ACWL mirrors their use
 of the DSU more broadly; the ACWL has had little effect in terms of
 introducing new countries to DSU self-enforcement. A closer look at the
 data reveals evidence on at least three channels through which the ACWL
 may be enhancing developing countries' ability to self-enforce foreign
 market access: increased initiation of sole-complainant cases, more
 extensive pursuit of the DSU legal process for any given case, and
 initiation of disputes over smaller values of lost trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 33-63 
Issue: 1 
Volume: 19 
Year: 2010 
Keywords: WTO, dispute settlement, developing countries, ACWL, 
X-DOI: 10.1080/09638190903327468 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903327468 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong 
Author-X-Name-First: Kwabena 
Author-X-Name-Last: Gyimah-Brempong 
Author-Name: Jeffrey Racine 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Racine 
Title: Aid and investment in LDCs: A robust approach 
Abstract:
  This paper uses panel data and the Local Linear Kernel Estimator (LLKE),
 to investigate the effects of aid on physical capital investment in
 developing countries. Specifically, we investigate the robustness of the
 relationship between aid and physical capital investment in Less Developed
 countries (LDCs) using two different measures of aid and five measures of
 the policy environment. We find that external aid has a positive and
 significant impact on physical capital investment given the support of the
 sample data we use. This effect is robust to the measurement of aid as
 well as the policy environment. However, the character of the positive
 relationship between aid and investment varies with the combination of the
 aid measure and the policy environment. We find that conditional on
 inflows, the better the policy environment, the higher the investment
 rate, all things being equal. The results have implications for aid
 research and aid policy. 
Journal: The Journal of International Trade & Economic Development 
Pages: 319-349 
Issue: 2 
Volume: 19 
Year: 2010 
Keywords: aid, investment, developing countries, nonparametric kernel regression, policy impacts, 
X-DOI: 10.1080/09638190802464974 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802464974 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:319-349




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: International handbook of development economics (volumes one and two) 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 351-355 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190902926864 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902926864 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:351-355




Template-Type: ReDIF-Article 1.0
Author-Name: Javier Reyes 
Author-X-Name-First: Javier 
Author-X-Name-Last: Reyes 
Author-Name: Stefano Schiavo 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Schiavo 
Author-Name: Giorgio Fagiolo 
Author-X-Name-First: Giorgio 
Author-X-Name-Last: Fagiolo 
Title: Using complex networks analysis to assess the evolution of international economic integration: The cases of East Asia and Latin America 
Abstract:
  This paper exploits recently-developed indicators based on network
 analysis to investigate the pattern of international integration followed
 by East Asian countries and compares it with the Latin American
 performance. Standard trade openness indicators fall short of portraying
 the peculiarity of the Asian experience, and of explaining why other
 emerging markets with similar characteristics have been less successful
 over the last 25 years. The analysis offers an alternative perspective on
 the issue regarding international economic integration by taking into
 account the whole structure of international trade relationships and by
 determining both the position of countries in the world trade network, and
 its evolution over time. We find that East Asian countries are more
 integrated into the world economy, as they have moved from the periphery
 of the network towards its core. Our results support the idea that the
 degree of openness matters but it is not enough to characterize economic
 integration. The number and identity of trade partners, and the specific
 individual structure of trade for each country, need to be incorporated in
 order to fully characterize international economic integration. By doing
 so, it is possible to argue that the integration process of the East Asian
 countries mirrors their high economic performance, while the lower degree
 of integration of Latin America can be related to the lack of economic
 development of the region, even though their degree of openness has
 increased. 
Journal: The Journal of International Trade & Economic Development 
Pages: 215-239 
Issue: 2 
Volume: 19 
Year: 2010 
Keywords: network analysis, globalization, trade and integration, Latin America, East Asia, 
X-DOI: 10.1080/09638190802521278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802521278 
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Template-Type: ReDIF-Article 1.0
Author-Name: Henry Thompson 
Author-X-Name-First: Henry 
Author-X-Name-Last: Thompson 
Title: Wages in a factor proportions time series model of the US 
Abstract:
  The theoretical effects of changes in prices and factor endowments on
 wages in general equilibrium models have been examined under various
 assumptions. The present paper is the first to estimate wage effects in
 the context of this theory. The data cover the US real wage, labor force,
 fixed capital assets, energy input, and prices of manufactures and
 services from 1949 to 2006. Estimated input elasticities of the wage are
 consistent with labor in the middle of the factor intensity ranking, and
 energy as very intensive in manufacturing. The estimation technique
 quantifies fundamental influences on the labor market. 
Journal: The Journal of International Trade & Economic Development 
Pages: 241-256 
Issue: 2 
Volume: 19 
Year: 2010 
Keywords: wages, factor proportions, 
X-DOI: 10.1080/09638190902748920 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902748920 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:241-256




Template-Type: ReDIF-Article 1.0
Author-Name: Asier Minondo 
Author-X-Name-First: Asier 
Author-X-Name-Last: Minondo 
Title: Exports' quality-adjusted productivity and economic growth 
Abstract:
  According to recent studies, countries specialised in products associated
 with higher productivity levels are likely to grow faster than countries
 specialised in other goods. A limitation of these studies is that they do
 not control for quality differences within a product category when
 measuring goods' productivity level. In this paper we show that if
 products are distinguished by quality level there is no longer a robust
 relationship between specialising in products associated with higher
 productivity levels and faster growth. On the contrary, we find it is the
 specialisation in products that allow a larger room for quality
 improvement that leads to higher economic growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 257-287 
Issue: 2 
Volume: 19 
Year: 2010 
Keywords: productivity, exports, growth, 
X-DOI: 10.1080/09638190802573071 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802573071 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:257-287




Template-Type: ReDIF-Article 1.0
Author-Name: Roger White 
Author-X-Name-First: Roger 
Author-X-Name-Last: White 
Author-Name: Bedassa Tadesse 
Author-X-Name-First: Bedassa 
Author-X-Name-Last: Tadesse 
Title: The effects of refugee and non-refugee immigrants on US trade with their home countries 
Abstract:
  Employing data on US immigrants and trade with 59 home countries for the
 years 1996-2001, we compare the extent to which refugee and non-refugee
 immigrants affect US trade with their home countries and provide the first
 evidence of variation in the US immigrant-trade relationship across
 immigrant types. We also consider the abilities of refugee and non-refugee
 immigrants to offset the trade-inhibiting influence of cultural distance.
 Our results show that while immigrants, in general, exert positive
 influences on US imports from - and exports to - their home countries, the
 influence of refugee immigrants is quite minimal when compared with that
 of non-refugee immigrants. For both immigrant types, however, evidence
 supporting the notion that immigrants act to offset cultural distance is
 observed. To conceptualize the economic meaning of our results, we provide
 estimates of the extent to which each type of immigrants offset transport
 costs. 
Journal: The Journal of International Trade & Economic Development 
Pages: 289-317 
Issue: 2 
Volume: 19 
Year: 2010 
Keywords: cultural distance, gravity, immigrants, networks, refugees, trade, 
X-DOI: 10.1080/09638190903217537 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903217537 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:289-317




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Optimal protection of international law: Navigating between European absolutism and American voluntarism 
Abstract:
Journal: The Journal of International Trade & Economic Development 
Pages: 495-497 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638190903039048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903039048 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:3:p:495-497




Template-Type: ReDIF-Article 1.0
Author-Name: Claus Aastrup Jensen 
Author-X-Name-First: Claus Aastrup 
Author-X-Name-Last: Jensen 
Author-Name: Nikolaj Malchow-M&#xf8;ller 
Author-X-Name-First: Nikolaj 
Author-X-Name-Last: Malchow-M&#xf8;ller 
Author-Name: Jan Rose Skaksen 
Author-X-Name-First: Jan Rose 
Author-X-Name-Last: Skaksen 
Title: Does coordination of immigration policies among destination countries increase immigration? 
Abstract:
  We set up a theoretical model to analyze the implications of coordination
 of immigration policies among destination countries. The model contains
 two types of spillovers between destination countries: a terms-of-trade
 externality and a welfare-policy externality. We show that while
 coordination unambiguously increases welfare of the destination countries,
 the effects on the level of immigration and on the income distribution of
 natives are ambiguous. Thus, coordination among destination countries does
 not necessarily solve the global coordination problem of inoptimally low
 levels of migration. 
Journal: The Journal of International Trade & Economic Development 
Pages: 357-384 
Issue: 3 
Volume: 19 
Year: 2010 
Keywords: coordination, externalities, immigration policy, spillovers, terms of trade, welfare, 
X-DOI: 10.1080/09638199.2010.499687 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.499687 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:3:p:357-384




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Tatum 
Author-X-Name-First: Robert 
Author-X-Name-Last: Tatum 
Title: Liberalization of import restrictions on capital goods and the balance of payments 
Abstract:
  This paper examines the impact of capital import liberalization on the
 balance of payments when protection takes the form of a quota and when it
 takes the form of a tariff. Since tariff liberalization affects tax
 revenues, the analysis of tariff liberalization allows for a fiscal
 imbalance and a mechanism by which the fiscal imbalance is covered, namely
 an inflation tax. The analysis shows that the economy experiences a series
 of balance of payments deficits following trade liberalization, but an
 open capital account reduces the magnitude of these deficits. 
Journal: The Journal of International Trade & Economic Development 
Pages: 385-419 
Issue: 3 
Volume: 19 
Year: 2010 
Keywords: liberalization, imported input, quota, tariff, payments balance, 
X-DOI: 10.1080/09638199.2010.499688 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.499688 
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Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim 
Author-X-Name-First: Myeong Hwan 
Author-X-Name-Last: Kim 
Title: Does the WTO promote trade? Further evidence 
Abstract:
  In a recent notable paper, Rose (2004a) finds no evidence that membership
 in the GATT/WTO increases trade. However, to evaluate accurately the role
 of the trade organization on trade promotion, only trade in commodities
 and sectors that are actually under the influence of that organization
 should be taken into account. Therefore, in this study, we exclude
 agriculture, textile and oil trade from consideration, as they are not
 dealt with under GATT/WTO rules; as a result, the benefit of the
 GATT/WTO's promotional efforts is pronounced, increasing trade by
 approximately 30% for member countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 421-437 
Issue: 3 
Volume: 19 
Year: 2010 
Keywords: gravity model, GATT, WTO, trade promotion, trade liberalization, 
X-DOI: 10.1080/09638199.2010.499689 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.499689 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:3:p:421-437




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Ibarra 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Ibarra 
Title: Exporting without growing: Investment, real currency appreciation, and export-led growth in Mexico 
Abstract:
  Despite two positive developments - the rise of manufactured exports and
 a prolonged but eventually successful disinflation - Mexico failed to
 sustain a high rate of economic growth during its free-trade period
 1988-2006. The paper argues that the proximate cause of Mexico's growth
 failure is the low dynamism of investment, which resulted from the high
 share of maquila (or assembly goods) in manufactured exports and the real
 appreciation of the peso during disinflation. The argument is supported by
 two strands of evidence: an aggregate-demand decomposition that measures
 the contributions of investment and exports to GDP growth, and the
 estimation by Johansen's methodology of two- and three-equation
 cointegration models that show the effect of manufactured exports and the
 real exchange rate on total investment. 
Journal: The Journal of International Trade & Economic Development 
Pages: 439-464 
Issue: 3 
Volume: 19 
Year: 2010 
Keywords: export-led growth, real currency appreciation, real exchange rate, investment determinants, Johansen's cointegration methodology, Mexico, 
X-DOI: 10.1080/09638190802593418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802593418 
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:3:p:439-464




Template-Type: ReDIF-Article 1.0
Author-Name: Janvier Desire Nkurunziza 
Author-X-Name-First: Janvier Desire 
Author-X-Name-Last: Nkurunziza 
Title: The effect of credit on growth and convergence of firm size in Kenyan manufacturing 
Abstract:
  Few studies test for the effect of credit and convergence on firm growth
 in the context of a developing economy. The use of bank credit can affect
 firm growth in two opposite ways. The effect may be positive if credit
 allows a firm to address its liquidity constraint and increase investment
 and profitability. However, if macroeconomic shocks such as unexpected
 increases in interest rates make firm debts unsustainable, as experienced
 in Kenya in the 1990s, indebted firms may shrink or even collapse. Using
 microeconomic data on the Kenyan manufacturing sector, this study finds
 that conditional on survival, the firms that use credit grow faster than
 those not using it. There is also evidence that small firms grow faster
 than large ones, confirming the convergence hypothesis. These results are
 robust to alternative estimation procedures controlling for both
 endogeneity and selection bias. 
Journal: The Journal of International Trade & Economic Development 
Pages: 465-494 
Issue: 3 
Volume: 19 
Year: 2010 
Keywords: Africa, manufacturing sector, growth, 
X-DOI: 10.1080/09638190802617670 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802617670 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:19:y:2010:i:3:p:465-494




Template-Type: ReDIF-Article 1.0
Author-Name: Haiwen Zhou 
Author-X-Name-First: Haiwen 
Author-X-Name-Last: Zhou 
Title: A Ricardian model of international trade with oligopolistic competition 
Abstract:
  This paper studies a Ricardian model of international trade with a
 continuum of products in a general equilibrium model in which firms engage
 in oligopolistic competition. It provides a bridge between trade models
 based on perfect competition and models based on imperfect competition.
 Compared with a model based on perfect competition, the incorporation of
 fixed cost leads to the result that an increase of domestic labor may
 increase the relative wage of the domestic country. 
Journal: The Journal of International Trade & Economic Development 
Pages: 499-515 
Issue: 4 
Volume: 19 
Year: 2010 
Keywords: comparative advantage, Ricardian model, oligopolistic competition, increasing returns to scale, trade policy, 
X-DOI: 10.1080/09638199.2010.506337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.506337 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Ruan 
Author-X-Name-First: Jun 
Author-X-Name-Last: Ruan 
Author-Name: Munisamy Gopinath 
Author-X-Name-First: Munisamy 
Author-X-Name-Last: Gopinath 
Title: Technological convergence, competitiveness, and welfare: A study of international manufacturing industries 
Abstract:
  In this study, a monopolistic competition model is used to investigate
 the effects of international technological convergence on factor rewards,
 output composition, and welfare. Four testable hypotheses on the impact of
 technological convergence on follower's and leader's competitiveness and
 welfare are presented. We then use 1993-2001 data from 128 manufacturing
 industries in 35 countries to test these hypotheses. Results show that
 followers' relative wages and global value-added shares increase with
 technological convergence. Followers benefit from convergence's positive
 income effect. Leader's own technological progress is the key to its
 welfare improvement, while terms-of-trade effects appear less important. 
Journal: The Journal of International Trade & Economic Development 
Pages: 517-551 
Issue: 4 
Volume: 19 
Year: 2010 
Keywords: competitiveness, manufacturing industries, productivity growth, technological convergence, welfare, 
X-DOI: 10.1080/09638199.2010.506331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.506331 
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Template-Type: ReDIF-Article 1.0
Author-Name: Valeria Gattai 
Author-X-Name-First: Valeria 
Author-X-Name-Last: Gattai 
Title: Firm's intangible assets and multinational activity: Full versus shared ownership 
Abstract:
  This paper analyses the choice of full versus shared ownership of the
 production affiliate made by Italian multinationals in Asia, based on an
 entirely new firm-level dataset, constructed by the author. The decision
 to internalise production, rather than relying on a local partner, is
 driven by the threat of Dissipation of Intangible Assets, both at a
 theoretical and an empirical level. In particular, we show that full
 ownership is more likely to emerge in Asia for Italian firms endowed with
 better technology and human capital, or belonging to high tech sectors. 
Journal: The Journal of International Trade & Economic Development 
Pages: 553-589 
Issue: 4 
Volume: 19 
Year: 2010 
Keywords: intangible assets, ownership, wholly-owned subsidiary, joint-venture, Asia, 
X-DOI: 10.1080/09638199.2010.506335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.506335 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sorin Krammer 
Author-X-Name-First: Sorin 
Author-X-Name-Last: Krammer 
Title: International R&D spillovers in emerging markets: The impact of trade and foreign direct investment 
Abstract:
  While economic theory predicts that growth in developing countries will
 gain significantly from technology spillovers, the empirical evidence on
 this issue remains relatively scarce. The present study focuses on a panel
 of 27 transition and 20 developed countries between 1990 and 2006 and uses
 the latest developments in panel unit root and cointegration techniques to
 disentangle the effects of international spillovers via inflows of trade
 and FDI on total factor productivity (TFP). The findings show that imports
 remain the main channel of diffusion for both sets of countries, while
 FDI, although statistically significant, has a lower impact on
 productivity of the recipients. The domestic R&D capital stock plays an
 active role in Western Europe while in the Eastern part it is less
 significant owing to lower levels, transitional disinvestment and relative
 obsolescence. Human capital affects TFP directly as a factor of production
 as well as indirectly by enhancing a country's absorptive capacity. In
 aggregate, the results show that transition countries from Eastern Europe
 and Central Asia seem to enjoy bigger productivity gains from the
 international diffusion process than their Western counterparts. 
Journal: The Journal of International Trade & Economic Development 
Pages: 591-623 
Issue: 4 
Volume: 19 
Year: 2010 
Keywords: technology spillovers, trade, investment, panel cointegration, 
X-DOI: 10.1080/09638190902792464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902792464 
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Template-Type: ReDIF-Article 1.0
Author-Name: Marie Stack 
Author-X-Name-First: Marie 
Author-X-Name-Last: Stack 
Author-Name: Eric Pentecost 
Author-X-Name-First: Eric 
Author-X-Name-Last: Pentecost 
Title: Regional integration and trade: A panel cointegration approach to estimating the gravity model 
Abstract:
  Using a panel data set of bilateral export flows from 12 European Union
 (EU) countries to 20 Organisation for Economic Co-operation and
 Development (OECD) trading partners over the period 1992-2003, a panel
 cointegration approach to estimating the gravity model is adopted to test
 for the significance of European regional integration. A comparison of the
 results indicates that a positive and significant coefficient estimate of
 the EU dummy variable is found for both the pooled ordinary least squares
 (POLS) estimator and the dynamic ordinary least squares (DOLS) estimator.
 The results, however, diverge once fixed effects are admitted into the
 model. The least squares dummy variable (LSDV) estimator suggests a small
 positive effect of EU integration on trade. In contrast, the dynamic LSDV
 estimator indicates that regional integration has a larger beneficial
 effect on trade. The results highlight the fundamental importance of
 properly accounting for endogeneity when evaluating trade policy effects. 
Journal: The Journal of International Trade & Economic Development 
Pages: 53-65 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: bilateral export flows, EU accession, non-stationary panel data, 
X-DOI: 10.1080/09638199.2011.538184 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538184 
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Template-Type: ReDIF-Article 1.0
Author-Name: Paul Alagidede 
Author-X-Name-First: Paul 
Author-X-Name-Last: Alagidede 
Author-Name: Theodore Panagiotidis 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Panagiotidis 
Author-Name: Xu Zhang 
Author-X-Name-First: Xu 
Author-X-Name-Last: Zhang 
Title: Causal relationship between stock prices and exchange rates 
Abstract:
  This article investigates the nature of the causal linkage between stock
 markets and foreign exchange markets in Australia, Canada, Japan,
 Switzerland, and UK from January 1992 to December 2005. Recently developed
 cointegration tests are employed and no evidence of a long-run
 relationship between the variables is found. Three variations of the
 Granger causality test are carried out and causality from exchange rates
 to stock prices is found for Canada, Switzerland, and UK; weak causality
 in the other direction is found only for Switzerland. The Hiemstra-Jones
 test is used to examine possible non-linear causality and the results
 indicate causality from stock prices to exchange rates in Japan and weak
 causality of the reverse direction in Switzerland. 
Journal: The Journal of International Trade & Economic Development 
Pages: 67-86 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: Granger causality, stock prices, exchange rates, Hiemstra-Jones test, non-parametric causality, 
X-DOI: 10.1080/09638199.2011.538186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538186 
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Template-Type: ReDIF-Article 1.0
Author-Name: Rene Cabral 
Author-X-Name-First: Rene 
Author-X-Name-Last: Cabral 
Author-Name: Andre Varella Mollick 
Author-X-Name-First: Andre Varella 
Author-X-Name-Last: Mollick 
Title: Intra-industry trade effects on Mexican manufacturing productivity before and after NAFTA 
Abstract:
  This paper examines the effects of intra-industry imports on total factor
 productivity (TFP). Employing a new sample of 25 Mexican manufacturing
 industries with annual data from 1984 to 2000, interesting panel data
 results emerge. First, we find the positive impact of intra-industry
 imports on productivity to be substantially larger after NAFTA. Second,
 relatively labor-intensive industries have benefited the most from these
 spillovers. Third, these results are very robust to business cycle
 controls and estimation methods. Our findings suggest that the expansion
 of technology in differentiated products has increased the technology
 spillovers from the US and Canada into Mexico. 
Journal: The Journal of International Trade & Economic Development 
Pages: 87-112 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: international technology diffusion, total factor productivity, trade, panel data methods, North America, Mexico, 
X-DOI: 10.1080/09638190902836014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902836014 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Chung Hsu 
Author-X-Name-First: Kuang-Chung 
Author-X-Name-Last: Hsu 
Author-Name: Hui-Chu Chiang 
Author-X-Name-First: Hui-Chu 
Author-X-Name-Last: Chiang 
Title: The threshold effects of exchange rate volatility on exports: Evidence from US bilateral exports 
Abstract:
  Previous research that employed bilateral trading data in analyzing the
 impact of exchange rate volatility on real trading volume has yielded
 mixed results. Thus, it is possible that the effects are non-linear. This
 paper uses a threshold regression model proposed by Hansen (1999) to
 examine this impact on bilateral exports between the US and its top 13
 trading partners. The estimated results illustrate that the threshold
 effects exist if the threshold variable is real gross domestic product
 (GDP) per capita of partner countries relative to US GDP per capita.
 Exchange rate volatility reduces the exports from the US to relative
 high-income partner countries but increases exports from the US to
 relative low-income partner countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 113-128 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: exchange rate volatility, bilateral exports, threshold model, panel data, 
X-DOI: 10.1080/09638190902898105 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902898105 
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Template-Type: ReDIF-Article 1.0
Author-Name: Helena Marques 
Author-X-Name-First: Helena 
Author-X-Name-Last: Marques 
Title: Asymmetries in heterogeneous integrated areas: Evidence from sectoral trade between old and new EU members 
Abstract:
  This article estimates gravity models for both directions of trade
 between the EU-15 and the NMS-10. The two groups form a heterogeneous
 integrated area (EU-27) with respect to country size, income levels,
 relative factor endowments and a different history of economic systems.
 The estimation was conducted on industries with different degrees of scale
 economies and factor intensities in the presence of both spatial (distance
 and borders) and non-spatial (Eastern enlargements and Euro membership)
 trade costs. The results highlight the asymmetry in intra-bloc trade when
 the latter is heterogeneous: country size, income, factor endowments and
 the various trade barriers or facilitators are found to be significant
 determinants of trade between old and new EU members to an extent that is
 specific to different country and industry groups. The results also show
 how this heterogeneity eliminates the equivalence between exports and
 imports as the dependent variable in gravity models and makes the results
 sensitive to the definition of the bilateral flows to be estimated. 
Journal: The Journal of International Trade & Economic Development 
Pages: 5-29 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: asymmetry, gravity model, trade, EU enlargement, 
X-DOI: 10.1080/09638199.2011.538181 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538181 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Braude 
Author-X-Name-First: Jacob 
Author-X-Name-Last: Braude 
Author-Name: Yigal Menashe 
Author-X-Name-First: Yigal 
Author-X-Name-Last: Menashe 
Title: The Asian miracle: Was it a capital-intensive structural change? 
Abstract:
  The Asian miracle has been the focus of much research seeking to
 understand this extraordinary phenomenon. Ventura (Quarterly Journal of
 Economics 112: 57-84.) offers an explanation for the success of the Asian
 Tigers in sustaining exceptional growth rates over an extended period
 based primarily on capital accumulation. He points to their ability as
 export-oriented economies to exploit the accumulated capital to reallocate
 from labor-intensive to capital-intensive sectors instead of raising the
 capital intensity within each sector. We test this argument using
 industry-level data on manufacturing in 33 countries over three decades.
 The evidence on the argument is mixed. We identify two stages in the
 evolution of the structural change in the Tigers. It was labor-intensive
 initially and became capital-intensive only in the 1980s. Compared to
 other countries, the Tigers are exceptional in the extent of their shift
 from a labor-intensive to a capital-intensive structural change during the
 sample period. However, structural change in the 1980s accounted for only
 a negligible part of capital accumulation in manufacturing. 
Journal: The Journal of International Trade & Economic Development 
Pages: 31-51 
Issue: 1 
Volume: 20 
Year: 2011 
Keywords: Asian miracle, structural changes, capital accumulation, sustained growth, capital intensity, 
X-DOI: 10.1080/09638199.2011.538183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538183 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nejat Anbarci 
Author-X-Name-First: Nejat 
Author-X-Name-Last: Anbarci 
Author-Name: Mehmet Ulubaso&#x11f;lu 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Ulubaso&#x11f;lu 
Title: Intersectoral size differences and migration: Kuznets revisited 
Abstract:
  That researchers look for the inverted-U shape in inequality in the
 arbitrary periods of arbitrary countries underlies the divergent empirical
 evidence across studies. To point to the right context for the pattern,
 this paper establishes a formal mechanism in line with Kuznets'
 explanation that relates to the industrialization-cum-urbanization phases
 of closed trade regimes. The mechanism involves an interaction among
 urban-rural sectoral size differences, agricultural tastes/income, and
 migration, and predicts an inverted-U shape in inequality in the following
 way: (i) widening differences in the sizes of urban and rural sectors due
 to exogenous shocks affect negatively the agricultural tastes/income,
 worsening inequality; (ii) increasing sectoral size differences and
 decreasing agricultural tastes/income jointly foster intersectoral
 migration; (iii) migration acts, in turn, as an equilibrating effect,
 improving the income distribution. Empirically testing these predictions,
 non-Sub-Saharan developing countries' data support the mechanism, while
 data from developed and Sub-Saharan African countries provide little
 support, as per our prior expectations. This highlights a contrasting
 evidence on the inverted-U shape across country groups of differing
 development stages. 
Journal: The Journal of International Trade & Economic Development 
Pages: 251-292 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: Kuznets' hypothesis, inequality, intersectoral size differences, agricultural tastes, migration, 
X-DOI: 10.1080/09638199.2011.538232 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538232 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nauro Campos 
Author-X-Name-First: Nauro 
Author-X-Name-Last: Campos 
Author-Name: Ahmad Saleh 
Author-X-Name-First: Ahmad 
Author-X-Name-Last: Saleh 
Author-Name: Vitaliy Kuzeyev 
Author-X-Name-First: Vitaliy 
Author-X-Name-Last: Kuzeyev 
Title: Dynamic ethnic fractionalization and economic growth 
Abstract:
  In their survey of the literature on ethnic fractionalization and
 economic performance, Alesina and La Ferrara (2005) identify two main
 directions for future research. One is to improve the measurement of
 diversity and the other to treat diversity as an endogenous variable. This
 paper tries to address these two issues: it investigates the effects of
 ethnic fractionalization on economic growth across countries using unique
 time-varying measures. We first replicate the finding of a weak effect of
 exogenous diversity on growth and then we show that accounting for how
 diversity changes over time and treating it as an endogenous variable
 makes a difference. Once diversity is instrumented (with lagged diversity
 and latitude), it shows a significant negative impact on economic growth
 which is robust to different specifications, polarization measures,
 econometric estimators, as well as to the use of an index of
 ethnic-religious-linguistic fractionalization. 
Journal: The Journal of International Trade & Economic Development 
Pages: 129-152 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: ethnic diversity, fractionalization, polarization, growth, 
X-DOI: 10.1080/09638199.2011.538218 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538218 
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Template-Type: ReDIF-Article 1.0
Author-Name: Robbert Maseland 
Author-X-Name-First: Robbert 
Author-X-Name-Last: Maseland 
Author-Name: Albert Vaal 
Author-X-Name-First: Albert 
Author-X-Name-Last: Vaal 
Title: Trade, development, and poverty-induced comparative advantage 
Abstract:
  This paper deals with the relation between trade and development when
 poverty affects individual decision making. We develop a two-sector model
 that links production and schooling decisions under poverty with standard
 neo-classical trade analyses. The decision to either work or acquire
 skills depends on households having reached subsistence levels of income,
 implying that the income level of a country becomes important in
 establishing comparative advantages and trade patterns. Trade
 liberalisation is always allocative efficient, but its timing is important
 for the speed by which countries industrialise. Our analysis supports the
 idea that there are instances that stalling trade liberalisation may serve
 industrial development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 153-174 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: comparative advantage, poverty, economic development, 
X-DOI: 10.1080/09638190902856764 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902856764 
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Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Bianconi 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Bianconi 
Title: Transfer programs under alternative insurance schemes and liquidity constraints 
Abstract:
  We consider a dynamic allocation problem under alternative insurance and
 capital market regimes and proper risk aversion separate from
 intertemporal substitution. We apply the model to study the effect of
 one-size-fits-all transfers. We find that one-size-fits-all transfers can
 have different and diametrically opposed qualitative and quantitative
 effects on consumption, investment, expected growth of output and
 consumption and the fair price of insurance of the risky technology. The
 differences depend upon the regime of insurance to the risky technology,
 the regime of capital markets and the proper separate measures of risk
 aversion and intertemporal substitution. 
Journal: The Journal of International Trade & Economic Development 
Pages: 175-197 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: transfers, insurance, liquidity constraint, intertemporal substitution, risk aversion, 
X-DOI: 10.1080/09638199.2011.538222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538222 
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Glover 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Glover 
Author-Name: Alan King 
Author-X-Name-First: Alan 
Author-X-Name-Last: King 
Title: Trade liberalization and import demand: The Central American experience 
Abstract:
  We investigate the effect of trade liberalization on the price and income
 elasticities of demand for imports in five Central American economies. In
 contrast to recent studies, we find that liberalization has had little
 impact on import demand's sensitivity to price. However, the income
 elasticity is found to change significantly in three countries; doubling
 in two and halving in the third. Despite the similar characteristics and
 trade policies of the five economies, none of the explanations for
 structural change in import elasticities suggested in the literature can
 account for more than a minority of our results. 
Journal: The Journal of International Trade & Economic Development 
Pages: 199-219 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: imports, trade liberalization, structural change, income elasticity, price elasticity, 
X-DOI: 10.1080/09638199.2011.538226 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538226 
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Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Alvarez 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Alvarez 
Title: Export transitions 
Abstract:
  This paper uses a broad multi-country dataset to describe the main
 stylized facts about export performance in the last four decades. First,
 transition probability matrices are computed to look at changes in the
 position of countries at the world distribution of the export to GDP
 ratio. It finds that transitions toward high export ratios have been
 mainly experienced by Asian countries, but also that some reformers, like
 Mexico and Chile, have been able to improve their position relative to
 other studied economies. African countries mainly sunk to the bottom part
 of the world distribution, although they constitute only half of the
 economies with relatively bad export performance. In the consideration of
 the structural factors that may play an important role for long-run
 transitions, the results suggest that more open economies and those with
 better institutions are more likely to move to high export ratios in the
 long-run. Second, the within-country experiences are analyzed for
 identifying episodes of export transitions. Using an event study
 methodology, a very weak association is found between export transitions
 and investment rate. In contrast, the results suggest that transitions are
 potentially driven by improvements in financial development. Finally,
 favorable terms of trade, increments in productivity, and reductions in
 exchange rate distortions are not found to be a catalyst for export
 transitions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 221-250 
Issue: 2 
Volume: 20 
Year: 2011 
Keywords: export performance, transition, institutions, trade policy, 
X-DOI: 10.1080/09638199.2011.538229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538229 
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Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Correa 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Correa 
Author-Name: Mariam Dayoub 
Author-X-Name-First: Mariam 
Author-X-Name-Last: Dayoub 
Author-Name: Manuela Francisco 
Author-X-Name-First: Manuela 
Author-X-Name-Last: Francisco 
Title: Trade liberalization and 'export response': Whither complementary reforms? 
Abstract:
  What enables Ecuadorian manufacturing firms to start exporting? And what
 are the determinants of the share of total sales exported by a firm, once
 the decision of becoming an exporter has been made? We apply a Heckman
 selection model to the Ecuador's Investment Climate Survey (ICS) to
 investigate supply-side constraints to export performance at the firm
 level. We estimate export propensity (the probability of exporting) and
 export intensity (the share of total sales that are exported). The
 application of the Heckman selection model to a rich dataset as the ICS is
 a major contribution as previous applications of the Heckman selection
 model used much limited datasets, limiting the range of hypotheses to be
 tested. Furthermore, other studies on export performance based on ICS data
 use either Tobit or Probit models, incurring important methodological
 limitations. We find robust and stable relationships for export propensity
 and intensity with firm size, import of inputs, labor regulations,
 in-house R&D, quality certification, Web use, and foreign ownership.
 Capacity utilization and trade with the US positively affect export
 intensity, while trade within the Andean Community has the opposite effect
 in our outcome variable. No significant relationship was found with the
 infrastructure variables. 
Journal: The Journal of International Trade & Economic Development 
Pages: 379-400 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: Ecuador, exports, innovation, foreign networks, business environment, firm level, 
X-DOI: 10.1080/09638199.2010.543471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.543471 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:3:p:379-400




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Hubler 
Author-X-Name-First: Michael 
Author-X-Name-Last: Hubler 
Title: Avoiding the trap: The dynamic interaction of North-South capital mobility and technology diffusion 
Abstract:
  This paper analyzes a stylized model of international capital mobility
 and diffusion of embodied technologies from North to South. The South can
 fall behind in terms of technologies or get trapped in a situation in
 which it is unable to attract foreign capital and embodied technologies if
 it is too far away from the technology frontier and if its absorptive
 capacity is too low. The paper reconciles the view that technological
 catching up is stronger the larger the technology gap with the alternative
 view that technological catching up is strongest at a medium technology
 gap. The closer the South is to the technology frontier the more
 beneficial is a higher income share of foreign capital. 
Journal: The Journal of International Trade & Economic Development 
Pages: 401-427 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: technology diffusion, technology transfer, capital mobility, FDI, human capital, absorptive capacity, 
X-DOI: 10.1080/09638190903254241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903254241 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:3:p:401-427




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Fillat 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Fillat 
Author-Name: Julia Woerz 
Author-X-Name-First: Julia 
Author-X-Name-Last: Woerz 
Title: Good or bad? The influence of FDI on productivity growth. An industry-level analysis 
Abstract:
  This paper attempts to reconcile the often inconclusive evidence on the
 role of FDI in the process of economic development by taking into account
 the heterogeneity both among industries and among countries. Using a
 comparable database at the industry level for 35 countries in the OECD,
 Asia and Eastern Europe from 1987 to 2002, we test for the influence of
 both stage of development and sectoral FDI patterns in the relationship
 between FDI and productivity growth. In certain industries and for the
 catching-up countries, a significant and positive relationship emerges
 when FDI coincides with high investment or export orientation. 
Journal: The Journal of International Trade & Economic Development 
Pages: 293-328 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: FDI, labour productivity, heterogeneity, manufacturing sector, panel data analysis, openness, 
X-DOI: 10.1080/09638190903003010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903003010 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:3:p:293-328




Template-Type: ReDIF-Article 1.0
Author-Name: Rossana Patron 
Author-X-Name-First: Rossana 
Author-X-Name-Last: Patron 
Title: Public education in developing countries: Cost-effectiveness of education policies and endowments growth 
Abstract:
  The article analyses the general equilibrium effects of education as a
 user and producer of resources considering some features of the sector
 typical in developing countries, such as the presence of inefficiencies,
 in a model that nevertheless remains close to the Heckscher-Ohlin
 paradigm. Short- and long-term effects of education are considered and it
 is shown that the overall effects are linked to the efficiency with which
 endowments are produced. The analysis has implications for policymakers in
 developing countries with failing educational systems, as it suggests a
 relation between cost-effectiveness of policies and growth and not between
 enrolments and growth or between public expenditure in education and
 growth as it is usually tested in growth regressions. 
Journal: The Journal of International Trade & Economic Development 
Pages: 329-337 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: public education, skills formation, developing countries, 
X-DOI: 10.1080/09638190903003036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903003036 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Munemo 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Munemo 
Title: Foreign aid and export diversification in developing countries 
Abstract:
  This paper analyzes the effect of foreign aid on export diversification
 for a sample of developing countries while controlling for the effects of
 other factors that determine export diversification. We find that foreign
 aid not exceeding 20% of a country's GDP significantly promotes export
 diversification, while foreign aid in excess of 20% of GDP significantly
 impedes export diversification. The latter result corroborates evidence
 from related literature, which has shown that foreign aid can have an
 anti-export bias due to a Dutch disease effect. However, our results show
 that aid as a percent of GDP is below 20% in most low-income countries.
 This implies that in many low-income countries, varying amounts of
 additional aid can be used to enhance export diversification without
 causing a Dutch disease effect. As in the previous literature, we find
 that the level of development, infrastructure, transactions costs, and
 natural resources significantly affect export diversification. Our results
 are robust to the use of two different export diversification measures and
 different sub-samples. 
Journal: The Journal of International Trade & Economic Development 
Pages: 339-355 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: foreign aid, export diversification, developing countries, 
X-DOI: 10.1080/09638199.2011.538970 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538970 
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Template-Type: ReDIF-Article 1.0
Author-Name: Katja Zajc Kejzar 
Author-X-Name-First: Katja Zajc 
Author-X-Name-Last: Kejzar 
Title: Investment liberalisation and firm selection process: A welfare analysis from a host-country perspective 
Abstract:
  This paper analyses the welfare and market structure effects of
 investment liberalisation allowing for intra-industry firm-heterogeneity
 to account explicitly for the firm selection process induced by foreign
 firm entry and its interactions with productivity spillovers. Using a
 two-stage oligopolistic model in which a foreign firm decides whether and
 how to enter the host-country market (export versus foreign direct
 investment) while two asymmetrical local firms decide on their exit/stay
 strategy, it is shown that even where productivity spillover effects are
 absent and the entry of the multinational firm leads to the crowding-out
 of local firms, foreign direct investment can still improve host-country
 welfare. 
Journal: The Journal of International Trade & Economic Development 
Pages: 357-377 
Issue: 3 
Volume: 20 
Year: 2011 
Keywords: foreign direct investment, welfare, firm selection process, market structure, crowding-out, productivity spillovers, 
X-DOI: 10.1080/09638199.2011.538975 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2011.538975 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jang Ping Thia 
Author-X-Name-First: Jang Ping 
Author-X-Name-Last: Thia 
Title: Evolution of locations, specialisation and factor returns with two distinct waves of globalisation 
Abstract:
  This article presents an economic geography model with two differentiated
 sectors that exhibit weaker inter and stronger intra-industry input-output
 linkages. Labour is also differentiated according to skills in a hierarchy
 of tasks they can perform. Globalisation occurs in two distinct phases,
 leading to the agglomeration of an industry (manufacturing) in the first
 wave, which is subsequently displaced by the other industry (services)
 when the second wave of globalisation takes place. Because of
 agglomeration effects, the increase in relative endowment of a factor may
 increase its relative wages, leading to more inequality. Within and
 between nations inequality can result. 
Journal: The Journal of International Trade & Economic Development 
Pages: 535-568 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: agglomeration, wage inequality, globalisation, 
X-DOI: 10.1080/09638190903089944 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903089944 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kun-Ming Chen 
Author-X-Name-First: Kun-Ming 
Author-X-Name-Last: Chen 
Title: Outward foreign direct investment, wage rigidity and unemployment: A computable general equilibrium analysis 
Abstract:
  Taiwan has started to liberalize its exchange rate and foreign investment
 policies since the mid 1980s. The subsequent considerable appreciation of
 its currency and increasing labor cost has stimulated many Taiwanese firms
 to actively undertake outward foreign direct investment (FDI). The
 possibility of the industrial hollowing-out induced by the FDI has been a
 great concern in Taiwan. The purpose of this paper is to establish a
 computable general equilibrium (CGE) model to investigate the impact of
 outward FDI by Taiwanese firms on its domestic economy. The efficiency
 wage theory is incorporated into the analytical framework. This paper
 first employs regression analysis to show that there exists severe wage
 rigidity in the labor market of Taiwan. Its simulation analysis then
 indicates that the outward FDI from Taiwan might reduce its income and
 employment to some extent. These results reveal that the outward FDI might
 hurt a distortion-ridden economy, which is consistent with the theoretical
 findings of Brecher and Choudhri (1987) and Basu (1998). However, it seems
 that the outward FDI could account for only a very small part of the
 recent increase in Taiwan's unemployment level. 
Journal: The Journal of International Trade & Economic Development 
Pages: 569-583 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: foreign direct investment, efficiency wages, unemployment, computable general equilibrium model, 
X-DOI: 10.1080/09638190903137206 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903137206 
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Template-Type: ReDIF-Article 1.0
Author-Name: Judy Hsu 
Author-X-Name-First: Judy 
Author-X-Name-Last: Hsu 
Title: How do innovation and exchange rate changes affect firms' mode of foreign expansion? 
Abstract:
  This paper uses a two-country two-firm imperfect competition model where
 each firm is located in a different country. We study the effects of
 firms' innovation and exchange rate change on their international
 expansion choices. As in Petit and Sanna-Randaccio (2000), the market
 structure is endogenously determined by the subgame perfect Nash
 equilibrium of a three-stage game that involves three different decisions
 by the firms: how to expand abroad, how much to invest in R&D, and how
 much to sell in each country under different market configurations. Since
 the price of output is directly affected by the exchange rate, we
 carefully include the impact of an anticipated exchange rate change in the
 future on firms' current decisions. The results show that an increase in
 R&D productivity leads firms towards multinational expansion. Furthermore,
 home currency appreciation also raises the likelihood of FDI by firms.
 Compared with the results of Petit and Sanna-Randaccio (2000), mixed
 duopoly is more likely to arise under exchange rate fluctuation in our
 model. 
Journal: The Journal of International Trade & Economic Development 
Pages: 429-447 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: innovation, exchange rate changes, mode of foreign expansion, 
X-DOI: 10.1080/09638190903003044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903003044 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:4:p:429-447




Template-Type: ReDIF-Article 1.0
Author-Name: Gautam Hazarika 
Author-X-Name-First: Gautam 
Author-X-Name-Last: Hazarika 
Author-Name: Rafael Otero 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Otero 
Title: North-South trade liberalization and returns to skill in the south: The case of Mexico 
Abstract:
  This study examines the effect of North American Free Trade Agreement
 (NAFTA), an instance of North-South trade liberalization, on returns to
 skill in Mexico. Mexico is abundant in low-skill workers relative to the
 US and Canada, and so, by the Heckscher-Ohlin-Samuelson trade model, NAFTA
 ought to have raised the relative earnings of low-skill workers, that is,
 lowered returns to skill in Mexico. Analysis of Mexican labour micro-data
 yields the finding that while returns to skill in industries producing
 tradeables have risen, ceteris paribus, since Mexico embarked upon trade
 liberalization by joining the GATT in 1986, this rise was less pronounced
 by 1999 in industries liberalized relatively rapidly by NAFTA, launched in
 1994, than in industries liberalized relatively slowly by this phased
 trade treaty. This is considered evidence of NAFTA holding back rise in
 returns to skill, since it is plausible such a dampening would have been
 more marked in industries more rapidly exposed to trade with Mexico's
 skill abundant northern neighbours. Hence, this study suggests trade with
 developed nations may lower returns to skill in developing nations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 449-465 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: NAFTA, returns to schooling, Heckscher-Ohlin model, 
X-DOI: 10.1080/09638190903003028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903003028 
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Template-Type: ReDIF-Article 1.0
Author-Name: Angel Calderon-Madrid 
Author-X-Name-First: Angel 
Author-X-Name-Last: Calderon-Madrid 
Author-Name: Alexandru Voicu 
Author-X-Name-First: Alexandru 
Author-X-Name-Last: Voicu 
Title: The NAFTA tide: Lifting the larger and better boats 
Abstract:
  We use panel data on Mexican manufacturing plants to study the connection
 between plants' responses to changes in the economic environment and their
 contributions to aggregate total factor productivity growth, in the period
 following the implementation of the North American Trade Agreement. An
 overwhelming share of industry-level aggregate total factor productivity
 growth is accounted for by a small number of plants, which were larger and
 more productive before the implementation of NAFTA and expanded and became
 more productive following the implementation of NAFTA. Plants that
 exported before NAFTA and exported continuously through to 2000, and new
 exporters, are more likely to be among the top-performing plants. The
 performance of plants with similar exporting experience displays, however,
 remarkable heterogeneity: a significant number of plants that never export
 have strong output and productivity performance, while many exporters
 display poor performance. Spending on research and development, and three
 variables describing plants' level of integration in the global markets -
 foreign direct investment, use of imported intermediary inputs, and
 investment in foreign capital goods - are positively correlated with
 output and productivity performance. 
Journal: The Journal of International Trade & Economic Development 
Pages: 467-505 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: NAFTA, trade liberalization, total factor productivity, heterogeneity of plant-level performance, 
X-DOI: 10.1080/09638190903191773 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903191773 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dalila Nicet-Chenaf 
Author-X-Name-First: Dalila 
Author-X-Name-Last: Nicet-Chenaf 
Author-Name: Eric Rougier 
Author-X-Name-First: Eric 
Author-X-Name-Last: Rougier 
Title: New exports matter: Discoveries, foreign direct investment and growth, an empirical assessment for Middle East and North African countries 
Abstract:
  Export diversification has become a priority goal for the development of
 the Middle East and North African (MENA) countries. In this article, we
 aim at measuring both the effects of exports' diversification on growth in
 MENA countries and the way new exports and foreign direct investment (FDI)
 interact with each others in the process of growth. Although the effects
 of FDI on growth have been scrutinized by numerous studies up to now, the
 effects of diversification and discoveries in export have only very
 recently been assessed. But no one has made explicit the way FDI and
 export discoveries interact in the growth process. A model is estimated by
 the system-generalized method of moments and we provide robust evidence
 that export discovery and FDI stimulate gross domestic product (GDP)
 growth in our sample of countries, and that FDI does not necessarily have
 the same effect on growth according to the level of discovery of the
 country. We also show that the joint positive effect of new exports and of
 imports suggest that technological spillover from import but also from the
 integration to global value chains are likely to occur in our sample of
 countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 507-533 
Issue: 4 
Volume: 20 
Year: 2011 
Keywords: Export diversification, FDI, growth, MENA, GMM system, 
X-DOI: 10.1080/09638190903045557 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638190903045557 
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Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Balding 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Balding 
Title: A re-examination of the relation between democracy and international trade 
Abstract:
  Scholars and policy makers believe that democracy will bring prosperity
 through integration into the global economy via increased international
 trade. Existing research is plagued by methodological problems that
 obscure the empirics and avoid the theoretical problem of why democracies
 may or may not trade more. In this paper, I seek to correct these
 shortcomings. I test two theories as to why democracies might trade more.
 First, political freedom may be correlated with economic freedom, thus
 prompting higher levels of economic activity, thereby driving states to
 trade more. Second, democracy implies higher quality governance either
 through institutions or policy making procedures. To test the impact of
 democracy on trade and the potential transmission mechanisms, I utilize a
 bilateral gravity trade model covering approximately 150 countries from
 1950 to 1999, with fixed effects for time, importers, and exporters. I
 find the theory that democracy, and many of its components, promotes
 international trade unconvincing. The coefficients are the theoretically
 correct sign; however, many are statistically or economically
 insignificant and fragile to changes in modeling or data. Economic freedom
 does not have the expected impact on international trade levels, but
 quality of governance variables have broad economic and statistical
 significance. 
Journal: The Journal of International Trade & Economic Development 
Pages: 585-603 
Issue: 5 
Volume: 20 
Year: 2011 
Month: 7 
X-DOI: 10.1080/09638190903159457 
File-URL: http://hdl.handle.net/10.1080/09638190903159457 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:5:p:585-603




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: N.   Nergiz Dincer 
Author-X-Name-First: N.   Nergiz 
Author-X-Name-Last: Dincer 
Author-Name: Zafer Mustafaoglu 
Author-X-Name-First: Zafer 
Author-X-Name-Last: Mustafaoglu 
Title: Total factor productivity and macroeconomic instability 
Abstract:
  Total factor productivity (TFP) is an important component of growth for
 most countries. This article assesses the role of macroeconomic
 instability on TFP growth. We consider volatility in inflation, openness
 of an economy and financial market deepness as measures of macroeconomic
 instability. Empirical evidence provided from Turkey suggests that
 volatility of openness and financial market deepness reduce TFP growth,
 whereas volatility of inflation increases TFP growth. 
Journal: The Journal of International Trade & Economic Development 
Pages: 605-629 
Issue: 5 
Volume: 20 
Year: 2011 
Month: 9 
X-DOI: 10.1080/09638190903365930 
File-URL: http://hdl.handle.net/10.1080/09638190903365930 
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Template-Type: ReDIF-Article 1.0
Author-Name: Siu-Kee Wong 
Author-X-Name-First: Siu-Kee 
Author-X-Name-Last: Wong 
Author-Name: Yao Liu1 
Author-X-Name-First: Yao 
Author-X-Name-Last: Liu1 
Title: Optimal industrial policy in vertically related markets 
Abstract:
  This paper examines the optimal industrial policy for an industry with a
 vertical market structure. A home firm and a foreign firm both import an
 intermediate good from a third country to produce a final good. How the
 home country government sets the optimal industrial policy has to take
 account of both profit shifting between the two final good producers and
 between the intermediate good producer and the home firm. We explain how
 the optimal industrial policy depends on the slope of the demand curve,
 the levels of technology spillover and product differentiation. In
 particular, there exists a critical level of technology spillover at which
 investments of the firms are neither strategic substitutes nor complements
 and the optimal industrial policy is always investment tax. 
Journal: The Journal of International Trade & Economic Development 
Pages: 631-650 
Issue: 5 
Volume: 20 
Year: 2011 
Month: 6 
X-DOI: 10.1080/09638190903150753 
File-URL: http://hdl.handle.net/10.1080/09638190903150753 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jang   Ping Thia 
Author-X-Name-First: Jang   Ping 
Author-X-Name-Last: Thia 
Title: The impact of trade on aggregate productivity and welfare with heterogeneous firms and business cycle uncertainty 
Abstract:
  This paper presents a model with monopolistic competition, productively
 heterogeneous firms, and business cycle aggregate shocks. With
 firm-specific productive heterogeneity, weaker firms quit when faced with
 a negative aggregate shock. Consequently, trade does not always increase
 firm-level aggregate productivity as negative shocks on the home market
 can be compensated for by positive shocks elsewhere. Weaker firms, which
 would otherwise quit in autarky, can continue to operate by exporting.
 Despite this, trade can still improve welfare for the risk-averse consumer
 by reducing aggregate price fluctuations. 
Journal: The Journal of International Trade & Economic Development 
Pages: 651-675 
Issue: 5 
Volume: 20 
Year: 2011 
Month: 10 
X-DOI: 10.1080/09638190903486090 
File-URL: http://hdl.handle.net/10.1080/09638190903486090 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:5:p:651-675




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim 
Author-X-Name-First: Dong-Hyeon 
Author-X-Name-Last: Kim 
Title: Trade, growth and income 
Abstract:
  This paper uses the instrumental variable threshold regressions approach
 of Caner and Hansen (2004) to investigate whether the trade's contribution
 to the standard of living and long-run economic growth varies according to
 the level of economic development. The empirical evidence shows that
 greater trade openness has strongly beneficial effects on growth and real
 income for the developed countries but significantly negative effects for
 the developing countries. The heterogeneity in the relationships suggests
 that greater international trade and integration may foster uneven
 development and hence contribute to more diverging economies. In addition,
 the link of trade to economic performance is found to work through both
 capital accumulation and productivity growth channels. Finally, the
 evidence shows that real effects of trade also depend on the level of
 financial development, inflation and trade openness. 
Journal: The Journal of International Trade & Economic Development 
Pages: 677-709 
Issue: 5 
Volume: 20 
Year: 2011 
Month: 7 
X-DOI: 10.1080/09638199.2011.538966 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.538966 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:5:p:677-709




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chieh Wang 
Author-X-Name-First: Chun-Chieh 
Author-X-Name-Last: Wang 
Title: Aid for trade as a public good 
Abstract:
  Aid for trade (A4T) can be classified as a public good. In the case of
 more than two donors, independent bilateral provision of A4T must be
 insufficient. This article suggests that international organisations can
 be a solution to insufficient A4T. However, those international
 organisations must adopt new methods of coordinating donors and recipients
 as well as a cost-sharing rule based on the share of benefit can help. 
Journal: The Journal of International Trade & Economic Development 
Pages: 711-728 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 9 
X-DOI: 10.1080/09638190903360220 
File-URL: http://hdl.handle.net/10.1080/09638190903360220 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:6:p:711-728




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Fujiwara 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Fujiwara 
Title: Network externalities, transport costs, and tariffs 
Abstract:
  This article formulates a reciprocal market model of international
 duopoly with network externalities to reconsider welfare effects of
 reductions in transport costs and tariffs. Depending on the magnitude of
 network externalities, we show two possibilities. One of them, which
 emerges under strong network externalities, illustrates that freer trade
 unambiguously improves welfare for any initial level of trade barriers.
 This finding provides an affirmative evaluation of freer trade. 
Journal: The Journal of International Trade & Economic Development 
Pages: 729-739 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 10 
X-DOI: 10.1080/09638190903452647 
File-URL: http://hdl.handle.net/10.1080/09638190903452647 
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:6:p:729-739




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Hung Lin 
Author-X-Name-First: Chun-Hung 
Author-X-Name-Last: Lin 
Author-Name: Chia-Ming Lee 
Author-X-Name-First: Chia-Ming 
Author-X-Name-Last: Lee 
Author-Name: Chih-Hai Yang 
Author-X-Name-First: Chih-Hai 
Author-X-Name-Last: Yang 
Title: Does foreign direct investment really enhance China's regional productivity? 
Abstract:
  While foreign direct investment (FDI) is widely recognized as one of
 major driving forces on promoting the regional economic growth in China,
 its impact on regional productivity is unclear and less systematically
 investigated. This article investigates the effect of FDI on regional
 productivity in China. Specifically, we adopt a newly developed measure of
 total factor productivity (TFP) to deal with the endogenous inputs choice
 accompanied with various measures of FDI, enabling to provide robust
 estimates on the TFP effect of FDI. Moreover, we examine the role of
 absorptive ability on the FDI-TFP nexus and explore the existence of FDI
 spillover effect on productivity across regions. The potential difference
 in productivity effect of FDI between coastal and non-coastal regions is
 also examined. Based on the province-level panel dataset over the period
 1997--2006, the various estimates show that the overall productivity
 effect of FDI is significantly positive, while this effect depends heavily
 on the host region's absorptive ability. Technological gap is found to
 associate with a significantly negative coefficient along with the finding
 that FDI tends to exhibit a higher impact on productivity in coastal
 regions than their non-coastal counterparts, highlighting a widening
 income inequality between coastal and non-coastal regions in China. 
Journal: The Journal of International Trade & Economic Development 
Pages: 741-768 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 8 
X-DOI: 10.1080/09638190903294866 
File-URL: http://hdl.handle.net/10.1080/09638190903294866 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:20:y:2011:i:6:p:741-768




Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn G. Marshall 
Author-X-Name-First: Kathryn G. 
Author-X-Name-Last: Marshall 
Title: The factor content of Chinese trade 
Abstract:
  This article demonstrates that the growth of China's exports in recent
 years is consistent with the Heckscher--Ohlin--Vanek (HOV) prediction of
 the factor content of trade based on international differences in factor
 endowments, after adjusting for substantial differences in factor-specific
 productivity. A comparison of the Organisation for Economic Co-Operation
 and Development input--output data in the year 2000 shows that China's
 labor productivity relative to the United States is the lowest in a sample
 of 33 diverse countries, although China's capital is more productive than
 US capital. This in turn demonstrates the importance of a factor-specific
 rather than factor-neutral productivity adjustment common in much of the
 HOV literature. The use of value-added data to measure factor usage helps
 to correct for unobserved differences in factor qualities and differences
 in productivity across sectors, as is demonstrated for China. China's low
 average labor productivity reflects the structure of the Chinese economy
 where most employment is still in the inefficient agriculture and service
 sectors, with only 11% of employment in the more modern export-oriented
 manufacturing sector. Due to a trade surplus, China exports both labor and
 capital but Leamer's (<italic>The Journal of Political Economy</italic>
 1980;88: 495--503) test for trade-revealed factor abundance confirms that
 China is labor abundant even after substantial factor-specific
 productivity adjustments. 
Journal: The Journal of International Trade & Economic Development 
Pages: 769-787 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 9 
X-DOI: 10.1080/09638190903318194 
File-URL: http://hdl.handle.net/10.1080/09638190903318194 
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Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo   Maria Caporale 
Author-X-Name-First: Guglielmo   Maria 
Author-X-Name-Last: Caporale 
Author-Name: Thouraya Hadj Amor 
Author-X-Name-First: Thouraya 
Author-X-Name-Last: Hadj Amor 
Author-Name: Christophe Rault 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Rault 
Title: International financial integration and real exchange rate long-run dynamics in emerging countries: Some panel evidence 
Abstract:
  The aim of this article is to provide new empirical evidence on the
 impact of international financial integration on the long-run Real
 Exchange Rate (RER) in 39 developing countries belonging to three
 different geographical regions (Latin America, Asia and MENA). It covers
 the period 1979--2004, and carries out &#x2018;second-generation&#x2019;
 tests for non-stationary panels. Several factors, including international
 financial integration, are shown to drive the long-run RER in emerging
 countries. It is found that the new financial environment characterised by
 international financial integration leads to a depreciation of the RER in
 the long run. Further, RER misalignments take the form of an
 under-valuation in most MENA countries and an over-valuation in most Latin
 American and Asian countries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 789-808 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 9 
X-DOI: 10.1080/09638190903365948 
File-URL: http://hdl.handle.net/10.1080/09638190903365948 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nergiz Dincer 
Author-X-Name-First: Nergiz 
Author-X-Name-Last: Dincer 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: The effects of exchange rate fluctuations on exports: A sectoral analysis for Turkey 
Abstract:
  This paper examines the effects of exchange rate fluctuations on
 disaggregated data comprising 21 exporting sectors (BEC classification) in
 Turkey. Building on a theoretical model that decomposes movements in the
 exchange rate into anticipated and unanticipated components, the empirical
 investigation traces the effects through demand and supply channels.
 Anticipated exchange rate appreciation, in line with movements in
 underlying fundamentals, has significant adverse effects, contracting
 export growth across many sectors. Random fluctuations in the exchange
 rate, deviations around steady-state equilibrium, have asymmetric effects
 on sectoral export growth. The evidence indicates increased contraction of
 export demand to currency appreciation over time. In contrast, the effect
 of depreciation in stimulating export growth has lost momentum over time.
 While exchange rate fluctuations had a positive net effect on export
 growth before 2003, the net effect is negative for the post-2002 period.
 The implications are anticipated movement in the exchange rate guides
 export plans, signaling the importance of managing fundamentals to anchor
 rational forecasts. Moreover, less variability of the exchange rate is
 likely to improve sectoral export growth in Turkey over time. 
Journal: The Journal of International Trade & Economic Development 
Pages: 809-837 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 6 
X-DOI: 10.1080/09638190903137214 
File-URL: http://hdl.handle.net/10.1080/09638190903137214 
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Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mosk 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mosk 
Title: Offshoring in the global economy: microeconomic structure and macroeconomic implications 
Journal: The Journal of International Trade & Economic Development 
Pages: 839-841 
Issue: 6 
Volume: 20 
Year: 2011 
Month: 12 
X-DOI: 10.1080/09638199.2010.514939 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.514939 
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Cie&#x15B;lik 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Cie&#x15B;lik 
Author-Name: Jan   Jakub Micha&#x142;ek 
Author-X-Name-First: Jan   Jakub 
Author-X-Name-Last: Micha&#x142;ek 
Author-Name: Jerzy Mycielski 
Author-X-Name-First: Jerzy 
Author-X-Name-Last: Mycielski 
Title: Measuring the trade effects of the euro in Central and Eastern Europe 
Abstract:
  We study trade effects of the euro adoption in Central and Eastern Europe
 (CEE). We employ a gravity model that controls for an extended set of
 trade theory and policy variables. The gravity model is estimated using
 the panel data approach on a sample of Organisation for Economic
 Co-operation and Development (OECD) and CEE countries trading with the
 rest of the world during the period 1993--2008. We find that the adoption
 of the euro results in trade expansion for the CEE countries. This result
 is driven by elimination of exchange rate volatility and accession to the
 European Economic and Monetary Union (EMU). However, our forecasts show
 that this effect is short-lived. 
Journal: The Journal of International Trade & Economic Development 
Pages: 25-49 
Issue: 1 
Volume: 21 
Year: 2012
Month: 11 
X-DOI: 10.1080/09638199.2012.642527 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.642527 
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Template-Type: ReDIF-Article 1.0
Author-Name: Thi   Hong Hanh Pham 
Author-X-Name-First: Thi   Hong Hanh 
Author-X-Name-Last: Pham 
Title: Temporal causality and the dynamics of foreign direct investment and trade in Vietnam 
Abstract:
  Our article investigates the temporal causation between foreign direct
 investment (FDI) and trade in Vietnam for the period 1990--2007. We first
 employ Granger causality tests in a co-integration framework, where the
 order of lags for each variable is selected by the Akaike Information
 Criterion (AIC) and the Schwarz Bayesian Information Criterion (SBIC).
 Granger causality tests are then performed in both bi- and multi-variate
 models. In the short-run, we find evidence of bi-directional Granger
 causality between FDI and exports and between FDI and imports. Our
 analysis also establishes the existence of long-run unidirectional Granger
 causality running from FDI to exports and to imports. 
Journal: The Journal of International Trade & Economic Development 
Pages: 83-113 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638190903365922 
File-URL: http://hdl.handle.net/10.1080/09638190903365922 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sattwik Santra 
Author-X-Name-First: Sattwik 
Author-X-Name-Last: Santra 
Title: Trade and market congestion: An explanation for widening skilled--unskilled wage differential 
Abstract:
  A model of trade with monopolistic competition is set up to explain
 unidirectional movements in skilled--unskilled wage differential observed
 in most parts of the world. With trade, an individual firm faces a higher
 number of competitors. This rise in the number of market participants
 requires each firm to spend higher amount of a skill intensive resource to
 survive in the global market consequently raising the relative demand for
 skilled labor and thereby increasing the skilled--unskilled wage ratio. 
Journal: The Journal of International Trade & Economic Development 
Pages: 115-129 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638191003628318 
File-URL: http://hdl.handle.net/10.1080/09638191003628318 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marie Grether 
Author-X-Name-First: Jean-Marie 
Author-X-Name-Last: Grether 
Author-Name: Nicole   Andr�a Mathys 
Author-X-Name-First: Nicole   Andr�a 
Author-X-Name-Last: Mathys 
Author-Name: Jaime de Melo 
Author-X-Name-First: Jaime 
Author-X-Name-Last: de Melo 
Title: Unravelling the worldwide pollution haven effect 
Abstract:
  This paper tackles the &#x2018;pollution haven&#x2019; argument by
 estimating the pollution content of imports (PCI). The PCI is then
 decomposed into three components: (i) a &#x2018;deep&#x2019; component
 (i.e. traditional variables unrelated to the environmental debate); (ii) a
 factor endowment component and (iii) a &#x2018;pollution haven&#x2019;
 component reflecting the impact of differences in environmental policies.
 The estimation is carried out for 1987 for an extensive data set covering
 10 pollutants, 48 countries and 79 ISIC four-digit sectors. Decompositions
 based on cross-section econometric estimates suggest a significant
 pollution haven effect, which increases the PCI of the North because of
 stricter environmental regulations in the North. At the same time, the
 factor endowment effect lowers the PCI of the North, as the North is
 relatively well-endowed in capital and pollution-intensive activities are
 capital intensive. On a global scale, because the bulk of trade is
 intra-regional with a high North-North share, these effects are small
 relative to the &#x2018;deep&#x2019; determinants of the worldwide PCI.
 Robustness checks performed on a more recent dataset, but limited to
 sulphur dioxide, confirm these results. In sum, differences in factor
 endowments and environmental policies only marginally affected the PCI of
 world trade at the end of the 1980s. 
Journal: The Journal of International Trade & Economic Development 
Pages: 131-162 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638190903552040 
File-URL: http://hdl.handle.net/10.1080/09638190903552040 
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Template-Type: ReDIF-Article 1.0
Author-Name: Lucas Navarro 
Author-X-Name-First: Lucas 
Author-X-Name-Last: Navarro 
Title: Plant level evidence on product mix changes in Chilean manufacturing 
Abstract:
  This article analyzes changes in the product mix by Chilean manufacturing
 plants in the period 1996--2003. Three quarters of the surviving plants
 changed the set of products produced and more than three quarters of the
 exporting plants changed the mix of products they exported during the
 sample period. Plants that changed their product mix contributed 85% of
 the aggregate growth in real sales of surviving plants between 1996 and
 2003. Finally, and in contrast to the US evidence, there is a negative
 correlation between revenue per product and the number of products. Apart
 from this, new evidence consistent with recent models of multi-product
 heterogeneous firms and trade is provided. 
Journal: The Journal of International Trade & Economic Development 
Pages: 165-195 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 2 
X-DOI: 10.1080/09638191003710397 
File-URL: http://hdl.handle.net/10.1080/09638191003710397 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hans   Christian Kongsted 
Author-X-Name-First: Hans   Christian 
Author-X-Name-Last: Kongsted 
Title: Trade policy dynamics, entry costs, and exchange rate uncertainty 
Abstract:
  This article analyzes trade policy dynamics when there are sunk costs of
 entry and demand uncertainty. A natural generalization of the classic
 export tax prescription for a domestic industry facing downward-sloping
 foreign demand is defined and implemented as a dynamic competitive
 equilibrium with fully rational firms. The optimal tax rate adjustment
 policy is a trigger strategy. This provides a rationale for infrequent
 revisions of trade policy in response to exogenous shocks. 
Journal: The Journal of International Trade & Economic Development 
Pages: 197-216 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638191003599527 
File-URL: http://hdl.handle.net/10.1080/09638191003599527 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:2:p:197-216




Template-Type: ReDIF-Article 1.0
Author-Name: Pravakar Sahoo 
Author-X-Name-First: Pravakar 
Author-X-Name-Last: Sahoo 
Author-Name: Ranjan   Kumar Dash 
Author-X-Name-First: Ranjan   Kumar 
Author-X-Name-Last: Dash 
Title: Economic growth in South Asia: Role of infrastructure 
Abstract:
  We examine the output elasticity of infrastructure for four South Asian
 countries viz., India, Pakistan, Bangladesh, and Sri Lanka using panel
 cointegration techniques for the period 1980--2005. In this context, we
 develop an index of infrastructure stocks and investigate the impact of
 infrastructure on output. The study finds a long-run equilibrium
 relationship between output and infrastructure along with other relevant
 variables, such as gross domestic capital formation (GDCF), labor force,
 international trade and human capital. The results reveal that GDCF, labor
 force, export and expenditure on human capital exhibit a positive
 contribution to output. More importantly, infrastructure development
 contributes significantly to output growth in South Asia. Further, the
 panel causality analysis shows that there is mutual feedback between total
 output and infrastructure development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 217-252 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638191003596994 
File-URL: http://hdl.handle.net/10.1080/09638191003596994 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:2:p:217-252




Template-Type: ReDIF-Article 1.0
Author-Name: Arne Bigsten 
Author-X-Name-First: Arne 
Author-X-Name-Last: Bigsten 
Author-Name: Dick Durevall 
Author-X-Name-First: Dick 
Author-X-Name-Last: Durevall 
Author-Name: Farzana Munshi 
Author-X-Name-First: Farzana 
Author-X-Name-Last: Munshi 
Title: Offshoring and occupational wages: Some empirical evidence 
Abstract:
  Offshoring has changed the pattern of international competition; labor in
 specific occupations rather than whole firms and sectors are now facing
 competition. Accordingly, wages in offshorable occupations are affected in
 new ways. In this article, we investigate the effects of offshoring on
 relative occupational wages in 13 countries for 1990--2003. Our findings
 show that offshoring competiveness is associated with higher relative
 wages in offshorable occupations, and that export growth of IT-related
 services leads to higher relative wages in offshorable occupations,
 whereas import growth of such services reduces them. 
Journal: The Journal of International Trade & Economic Development 
Pages: 253-269 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638191003615612 
File-URL: http://hdl.handle.net/10.1080/09638191003615612 
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Template-Type: ReDIF-Article 1.0
Author-Name: Naoto Jinji 
Author-X-Name-First: Naoto 
Author-X-Name-Last: Jinji 
Title: Factor market monopsony and international duopoly 
Abstract:
  In this article, I investigate the effects of monopsony power in the
 factor market when the output market is internationally duopolistic. Two
 firms (North and South) compete in the Northern market. The Southern firm
 has monopsony power in the labor market, while the Northern firm does not.
 I show that the Northern firm actually benefits from the Southern firm's
 exercise of monopsony power in the labor market. Northern consumers,
 however, suffer from it. Imposing labor standards results in conferral of
 a strategic advantage on the Southern firm, whereas it may improve
 Northern welfare. 
Journal: The Journal of International Trade & Economic Development 
Pages: 271-286 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 2 
X-DOI: 10.1080/09638191003731278 
File-URL: http://hdl.handle.net/10.1080/09638191003731278 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:2:p:271-286




Template-Type: ReDIF-Article 1.0
Author-Name: Antoine Bou&#xEB;t 
Author-X-Name-First: Antoine 
Author-X-Name-Last: Bou&#xEB;t 
Author-Name: Devesh Roy 
Author-X-Name-First: Devesh 
Author-X-Name-Last: Roy 
Title: Trade protection and tax evasion: Evidence from Kenya, Mauritius, and Nigeria 
Abstract:
  We examine the effect of trade protection rates on evasion in three
 African countries Kenya, Mauritius, and Nigeria. In capturing the effect
 of trade protection on tariff evasion, we use a much improved measure of
 trade protection (MAcMap-HS6 2001 and 2004). For two of these countries,
 this dataset allows the novelty of using variation in trade protection
 across product, time, and trading partners leading to significantly
 refined estimates of evasion elasticity relative to existing studies on
 tariff evasion. We find a robust evidence for positive elasticity of
 evasion with respect to tariffs in Kenya and Nigeria with relatively
 weaker evidence for Mauritius. Our results match the rankings of countries
 in institutional quality. Greater responsiveness of evasion to the level
 of tariffs is established in Nigeria (comparatively weak institutional
 quality) vis-&#xE0;-vis Kenya, and in Kenya vis-&#xE0;-vis Mauritius
 (comparatively good institutional quality). This pattern is preserved even
 when focusing on same set of trading partners and same set of imported
 products for the three countries. This result is robust to controlling for
 protection on related products (that creates incentives/ opportunities for
 evasion) and also for degree of differentiation of the product and some
 other characteristics. 
Journal: The Journal of International Trade & Economic Development 
Pages: 287-320 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 4 
X-DOI: 10.1080/09638199.2010.484503 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.484503 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:2:p:287-320




Template-Type: ReDIF-Article 1.0
Author-Name: Yao Li 
Author-X-Name-First: Yao 
Author-X-Name-Last: Li 
Title: Capital mobility, diminishing returns and wage inequality 
Abstract:
  This article sets up a new economic geography model with diminishing
 marginal returns to labor and capital and examines the effect of capital
 liberalization on industrial agglomeration and wage inequality. The
 simulation results indicate that, for a country with strict capital
 controls, capital liberalization is able to reduce the wage difference
 between countries in both nominal and real terms. It is also shown that
 the diminishing marginal returns and the increasing returns to scale have
 opposite effects on the location of economic activities: the effect of
 increasing returns to scale is prone to agglomerating economic activities
 into larger economies, while the effect of diminishing marginal returns
 tends to decentralize economic activities. 
Journal: The Journal of International Trade & Economic Development 
Pages: 321-345 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 3 
X-DOI: 10.1080/09638191003759949 
File-URL: http://hdl.handle.net/10.1080/09638191003759949 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:3:p:321-345




Template-Type: ReDIF-Article 1.0
Author-Name: Amit K. Biswas 
Author-X-Name-First: Amit K. 
Author-X-Name-Last: Biswas 
Title: Import tariff led export under-invoicing: A paradox 
Abstract:
  Prolonged worldwide economic depression forces some economists and policy
 makers to demand tougher regulation to protect their domestic economy. If
 implemented, this may lead to a high-tariff regime that ruled the
 pre-globalised world economy. This paper examines the consequences of a
 tariff protected trade regime. It takes up the case of trade misreporting
 phenomena under the framework of protected regime. It builds up a basic
 trade mis-invoicing model and then develops collusion between
 underreporting traders of partner countries. I show that high tariff
 barrier gives incentives not only to the importers but also to the
 exporters to gain by underreporting the trade statistics. Interestingly,
 this paper shows that even if foreign exchange is fully floated,
 underground foreign exchange market can be created and exporters may
 rationally underreport without any gain through black market premium -- a
 departure from conventional theory. 
Journal: The Journal of International Trade & Economic Development 
Pages: 347-360 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 4 
X-DOI: 10.1080/09638199.2010.486077 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.486077 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:3:p:347-360




Template-Type: ReDIF-Article 1.0
Author-Name: Solomon W. Polachek 
Author-X-Name-First: Solomon W. 
Author-X-Name-Last: Polachek 
Author-Name: Daria Sevastianova 
Author-X-Name-First: Daria 
Author-X-Name-Last: Sevastianova 
Title: Does conflict disrupt growth? Evidence of the relationship between political instability and national economic performance 
Abstract:
  Current empirical growth models limit the determinants of country growth
 to geographic, economic, and institutional variables. This study draws on
 conflict variables from the Correlates of War (COW) project to ask a
 critical question: how do different types of conflict affect country
 growth rates? It finds that wars slow the economy. Estimates indicate that
 civil war reduces annual growth by 0.01--0.13 percentage points, and
 high-intensity inter-state conflict reduces annual growth by 0.18--2.77
 percentage points. On the other hand, low-intensity conflict slows growth
 much less than high-intensity conflict, and may slightly increase it. The
 detrimental effect of conflict on growth is intensified when examining
 non-democracies, low-income countries, and countries in Africa. 
Journal: The Journal of International Trade & Economic Development 
Pages: 361-388 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 3 
X-DOI: 10.1080/09638191003749783 
File-URL: http://hdl.handle.net/10.1080/09638191003749783 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:3:p:361-388




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Marzieh Bolhassani 
Author-X-Name-First: Marzieh 
Author-X-Name-Last: Bolhassani 
Author-Name: Scott Hegerty 
Author-X-Name-First: Scott 
Author-X-Name-Last: Hegerty 
Title: Exchange-rate volatility and industry trade between Canada and Mexico 
Abstract:
  While it has long been assumed that exchange-rate volatility introduces a
 level of uncertainty that helps reduce trade flows, this need not be the
 case for particular country pairs or for specific products. This study
 examines the case of trade between Canada and Mexico&#x2014;two members of
 the highly integrated North American market. Trade flows are examined for
 a number of specific products using the &#x201C;bounds testing&#x201D;
 cointegration approach over the period from 1973 to 2006. Relatively few
 industries see a long-run reduction in trade volumes due to volatility.
 This indicates that multinational producers in these integrated markets
 might be able to hedge against exchange-rate risk. Since major Mexican
 exports appear to see the largest reductions, Mexico might have a stronger
 incentive to reduce the volatility of the peso. 
Journal: The Journal of International Trade & Economic Development 
Pages: 389-408 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638199.2010.491160 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.491160 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:3:p:389-408




Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Fuentes 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Fuentes 
Author-Name: Pablo Ibarrar&#xE1;n 
Author-X-Name-First: Pablo 
Author-X-Name-Last: Ibarrar&#xE1;n 
Title: Firm dynamics and real exchange rate fluctuations: Does trade openness matter? Evidence from Mexico's manufacturing sector 
Abstract:
  In this article, we study the effect of North American Free Trade
 Agreement (NAFTA) on the responsiveness of Mexican economy to real
 exchange rate shocks. We argue that, by opening the US and Canadian
 markets to Mexican goods, NAFTA made it easier for domestic producers to
 take advantage of the opportunities brought by the depreciation of the
 real exchange rate. To identify this mechanism, we use plant-level data
 and compare the behavior of employment, production and investment after
 two big real exchange rate shocks: the first observed in the mid-1980s,
 the second the Tequila Crisis of 1994--1995. The evidence indicates that
 after passage of NAFTA exporting firms exhibited higher growth rates of
 employment, sales and investment vis-&#xE0;-vis non-exporters. We confirm
 our results by analyzing the behavior of a control group of firms, that
 had complete access to the US market during both devaluations, and we show
 that they responded in a similar way in both events. Finally, we also
 provide direct evidence on the relationship between exports and tariff
 reductions brought by NAFTA. Our results support the view that NAFTA has
 allowed Mexican producers to respond more quickly to real exchange shocks. 
Journal: The Journal of International Trade & Economic Development 
Pages: 409-469 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638199.2010.493220 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.493220 
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Template-Type: ReDIF-Article 1.0
Author-Name: Arti Grover Goswami 
Author-X-Name-First: Arti 
Author-X-Name-Last: Grover Goswami 
Title: Vertical FDI versus outsourcing: The role of host country human capital 
Abstract:
  The existing literature on offshoring neglects the importance of host
 country conditions in affecting the boundaries of a firm. In this paper,
 we focus on the role of the host country's human capital in affecting the
 organization of offshore production. Acknowledging that an input is
 produced offshore only after training the host labor, we propose that this
 training cost depends on the human capital gap between the home and the
 host country. Our model finds that a sourcing firm prefers to offshore
 production internationally only if the human capital gap between the home
 and the host country is below a threshold. Secondly, as the human capital
 gap increases, the probability for international outsourcing
 vis-&#xE0;-vis intra-firm trade increases. Finally, as opposed to
 conventional wisdom, our model shows the possibility of outsourcing inputs
 of a high-tech good when the human capital gap between the home and the
 host is high. 
Journal: The Journal of International Trade & Economic Development 
Pages: 471-492 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638199.2010.497848 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.497848 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:471-492




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Endoh 
Author-X-Name-First: Masahiro 
Author-X-Name-Last: Endoh 
Title: Cross-border political donations and Pareto-efficient tariffs 
Abstract:
  Lobbying activities across international borders could promote
 international trade policy cooperation because of two distinctive
 characteristics. First, special interest groups use cross-border donations
 as tools to wield their influence on ruling parties of other countries
 directly. Second, cross-border donations make ruling parties take into
 account the impact of their policy on other countries. They promote
 efficiency of policy formation. Pareto-efficient tariffs are attained
 under the conditions that all individuals participate in lobbying
 activities, ruling parties value the sum of cross-border donations and the
 sum of domestic gross welfare and domestic donations equally, and
 contribution schedules are observable to anyone. 
Journal: The Journal of International Trade & Economic Development 
Pages: 493-512 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 7 
X-DOI: 10.1080/09638199.2010.512391 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.512391 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim 
Author-X-Name-First: Dong-Hyeon 
Author-X-Name-Last: Kim 
Author-Name: Shu-Chin Lin 
Author-X-Name-First: Shu-Chin 
Author-X-Name-Last: Lin 
Author-Name: Yu-Bo Suen 
Author-X-Name-First: Yu-Bo 
Author-X-Name-Last: Suen 
Title: The simultaneous evolution of economic growth, financial development, and trade openness 
Abstract:
  This article empirically investigates the interactions among economic
 growth, financial development, and trade openness through simultaneous
 equation systems. The identification and estimation of the systems rely on
 the methodology of identification through heteroskedasticity. The
 empirical results show that each of the three variables interacts in
 important ways. When controlling for the reverse causation, trade promotes
 economic growth in high-income, low-inflation, and nonagricultural
 countries but has a negative impact on growth in countries with the
 opposite attributes. Similarly, when accounting for the feedbacks from
 growth, banks and stock markets have different impacts on economic growth.
 While banking development is detrimental to output growth, stock market
 development is more favorable to growth in high-income, low-inflation, and
 nonagricultural countries. The data also reveal coexistence of a positive
 effect of financial development on trade and a negative effect of trade on
 financial development in poorer countries. In richer countries, financial
 development stimulates trade openness whereas trade has an ambiguous
 impact on financial development. 
Journal: The Journal of International Trade & Economic Development 
Pages: 513-537 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638199.2010.497933 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.497933 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:513-537




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Volpe Martincus 
Author-X-Name-First: Christian 
Author-X-Name-Last: Volpe Martincus 
Author-Name: Jer&#xF3;nimo Carballo 
Author-X-Name-First: Jer&#xF3;nimo 
Author-X-Name-Last: Carballo 
Title: Export promotion activities in developing countries: What kind of trade do they promote? 
Abstract:
  Information problems involved in trading differentiated goods are
 <italic>a priori</italic> acuter than those associated with trading more
 homogeneous products. The impact of export promotion activities intending
 to address these problems can therefore be expected to differ across goods
 with different degree of differentiation. Empirical evidence on this
 respect is virtually inexistent. This article aims at filling this gap in
 the literature by providing estimates of the effect of these activities
 over firms trading different goods using highly disaggregated export data
 for the whole population of Costa Rican exporters over the period
 2001--2006. We find that trade promotion actions favor an increase of
 exports along the extensive margin, in particular, in terms of destination
 countries, in the case of firms that are already selling differentiated
 goods. However, these actions do not seem to encourage exporter to start
 exporting these goods. Further, no significant impacts are observed for
 firms exporting reference-priced and homogeneous goods. 
Journal: The Journal of International Trade & Economic Development 
Pages: 539-578 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 6 
X-DOI: 10.1080/09638199.2010.500741 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.500741 
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Template-Type: ReDIF-Article 1.0
Author-Name: Pascal L. Ghazalian 
Author-X-Name-First: Pascal L. 
Author-X-Name-Last: Ghazalian 
Author-Name: Lota D. Tamini 
Author-X-Name-First: Lota D. 
Author-X-Name-Last: Tamini 
Author-Name: Bruno Larue 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Larue 
Author-Name: Jean-Philippe Gervais 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Gervais 
Title: A gravity model to account for vertical linkages between markets with an application to the cattle/beef sector 
Abstract:
  A gravity model is developed to explain bilateral trade flows in primary
 and processed commodities within the same agri-food supply chain. It
 accounts for vertical production linkages, trade and domestic policies,
 and supply rigidities at the farm level. Our application focuses on
 cattle/beef trade flows between 42 countries. The estimated parameters of
 the model are used to simulate trade flows. We found large differences in
 the impacts of the full and partial liberalization scenarios. A parametric
 bootstrap procedure is used to generate confidence intervals around
 predicted trade liberalization outcomes. 
Journal: The Journal of International Trade & Economic Development 
Pages: 579-601 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 6 
X-DOI: 10.1080/09638199.2010.505297 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.505297 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:579-601




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Fujiwara 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Fujiwara 
Title: Market integration, environmental policy, and transboundry pollution from consumption 
Abstract:
  Recent empirics report that transport cost reductions significantly
 contribute to rapidly growing world trade. This article develops a
 reciprocal market model of intra-industry trade with transboundary
 pollution from consumption to consider how market integration in the form
 of transport cost reductions affects the noncooperative choice of an
 environmental policy and the equilibrium welfare. I show that market
 integration can improve welfare locally, but that welfare under any
 non-prohibitive trade cost can not be higher than welfare under autarky.
 This possibility of trade losses exhibits a sharp contrast to the case of
 production-generated pollution. 
Journal: The Journal of International Trade & Economic Development 
Pages: 603-614 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 7 
X-DOI: 10.1080/09638199.2010.508127 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.508127 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:603-614




Template-Type: ReDIF-Article 1.0
Author-Name: Shireen AlAzzawi 
Author-X-Name-First: Shireen 
Author-X-Name-Last: AlAzzawi 
Title: Innovation, productivity and foreign direct investment-induced R&D spillovers 
Abstract:
  This article examines the effect of foreign direct investment on
 innovation and productivity in the host and home countries. I investigate
 how the flows of knowledge transmitted through FDI affect the production
 of knowledge in both source and recipient countries, as well as how these
 flows affect productivity. Using patent citations within FDI as the
 measure of the degree of &#x2018;access&#x2019; that one nation gains to
 the R&D knowledge of another, and new patents as the measure of
 innovation, results reveal that there are large differences in the way FDI
 affects innovation and productivity between countries that are
 technological leaders, and technological followers. Both inward and
 outward FDI are found to have a strong positive effect on domestic
 <italic>innovation</italic> and <italic>productivity</italic> in countries
 that are technological followers. For technological leaders, outward FDI
 is highly conducive to increased domestic <italic>innovation</italic>,
 while inward FDI seems to increase competition between domestic and
 foreign firms, making it more difficult to come up with new viable ideas.
 As for domestic <italic>productivity</italic>, inward FDI is highly
 beneficial for technological leaders, while outward FDI does not have a
 significant effect. I conclude that technological followers have much to
 gain from FDI-induced R&D spillovers, and therefore governments in these
 countries will find it worthwhile to attract foreign multinationals, while
 those in the more technologically advanced economies need to weigh the
 costs and benefits of FDI carefully. 
Journal: The Journal of International Trade & Economic Development 
Pages: 615-653 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638199.2010.513056 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.513056 
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Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore 
Author-X-Name-First: Winston 
Author-X-Name-Last: Moore 
Author-Name: Diego Morris 
Author-X-Name-First: Diego 
Author-X-Name-Last: Morris 
Title: Product-level estimation of import demand: Simulating the effects of tariff harmonisation 
Abstract:
  Developing countries have traditionally used import tariffs to protect
 infant industries and raise revenues to finance government expenditure
 plans. This approach, however, has tended to protect inefficient
 industries and to some extent hindered economic development. A
 disaggregated import demand model is estimated using monthly observations
 on 91 of the most frequently imported product items in Barbados. The
 results are then employed to evaluate the feasibility of harmonising
 tariff rates to some single rate across product categories. The results
 suggest that the estimation of aggregate import demand equations is not
 accepted by the data and therefore could result in misleading inferences.
 The policy simulation exercise indicates that a single applied tariff at
 the 30% level would essentially be revenue neutral, while rates above this
 level would lead to reductions in tax receipts. 
Journal: The Journal of International Trade & Economic Development 
Pages: 655-676 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638199.2010.514938 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.514938 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Kondoh 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Kondoh 
Author-Name: Shigemi Yabuuchi 
Author-X-Name-First: Shigemi 
Author-X-Name-Last: Yabuuchi 
Title: Unemployment, environmental policy, and international migration 
Abstract:
  In this paper, we investigate the effects of an increase in emission tax,
 a decrease in fixed manufacturing wage rate, and an increased inflow of
 foreign workers on competitive wages, the environmental stock, the
 economic welfare of the representative consumer, and employment in the
 presence of a pollution abatement equipment sector and unemployment. Our
 main findings are that an increase in emission tax and a decrease in the
 urban minimum wage rate decrease unemployment, and international
 immigration may increase the competitive wage rate, employment rate, stock
 of environmental capital, and economic welfare of the representative
 worker. 
Journal: The Journal of International Trade & Economic Development 
Pages: 677-690 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 10 
X-DOI: 10.1080/09638199.2010.535613 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.535613 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:5:p:677-690




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Hao 
Author-X-Name-First: Qian 
Author-X-Name-Last: Hao 
Author-Name: Sajal Lahiri 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Lahiri 
Title: Tax competition with asymmetric market structures: The role of policy instruments* 
Abstract:
  We analyze the location choice of a multinational corporation (MNC)
 between two host countries with different market structures, i.e. the
 number of competing domestic firms in them. We consider the effects of
 import tariffs and lump-sum subsidies on the MNC's locational choice. Our
 findings include: (1) with lump-sum subsidy, the country with fewer firms
 always gets the MNC, (2) with tariffs, the country with more domestic
 firms gets the MNC when the export transportation cost is high and the
 domestic firms are sufficiently inefficient, while the country with fewer
 domestic firms wins the MNC when export transportation cost is low, and
 (3) the MNC location decision may crucially depend on which instrument is
 used to attract the MNC. 
Journal: The Journal of International Trade & Economic Development 
Pages: 691-704 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 10 
X-DOI: 10.1080/09638199.2010.533280 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.533280 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mark Assibey-Yeboah 
Author-X-Name-First: Mark 
Author-X-Name-Last: Assibey-Yeboah 
Author-Name: Mohammed Mohsin 
Author-X-Name-First: Mohammed 
Author-X-Name-Last: Mohsin 
Title: Monetary policy in a developing economy with external debt: Theory and empirics 
Abstract:
  Using annual data from four open economies (Thailand, Indonesia, Mexico,
 and Chile), and estimating correlations and generalized impulse responses
 within the traditional vector autoregressive (VAR) analysis, we find that
 inflation, both in the short and long run, is negatively correlated with
 consumption, investment, and the stock of foreign debt. We propose an
 optimizing model of an open economy with outstanding foreign debt and
 borrowing constraint that could explain these empirics. In this economy,
 risk premium depends on creditworthiness measured by debt--income ratio.
 Firms operate under costly investment, and all transactions involving
 consumption and investment are subject to cash-in-advance (CIA)
 constraints. 
Journal: The Journal of International Trade & Economic Development 
Pages: 705-724 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 10 
X-DOI: 10.1080/09638199.2010.535213 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.535213 
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter C.Y. Chow 
Author-X-Name-First: Peter C.Y. 
Author-X-Name-Last: Chow 
Title: The effect of outward foreign direct investment on home country's export: A case study on Taiwan, 1989--2006 
Abstract:
  The purpose of this study is to examine the effect of outward foreign
 direct investment (FDI) on home country's export in Taiwan since the late
 1980s. By pooling the time series and cross-section data in a modified
 gravity model, the study analyzes the effect of outward FDI, both country
 by country and host groups as a whole, on Taiwan's exports. It is
 concluded that outward FDI has a complementary effect on home country's
 export in Taiwan, most significantly evidenced in China-bound investment,
 which accounted for most FDIs after the 1990s. 
Journal: The Journal of International Trade & Economic Development 
Pages: 725-754 
Issue: 5 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638199.2010.493616 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.493616 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:5:p:725-754




Template-Type: ReDIF-Article 1.0
Author-Name: Dapeng Cai 
Author-X-Name-First: Dapeng 
Author-X-Name-Last: Cai 
Author-Name: Jie Li 
Author-X-Name-First: Jie 
Author-X-Name-Last: Li 
Title:  <italic>Quid pro quo</italic> and the enforcement of intellectual property rights protection: A bargaining approach 
Abstract:
  This article models a North--South negotiation where the North provides a
 <italic>quid pro quo</italic> in exchange for the strengthening of the
 enforcement of intellectual property rights (IPR) protection in the South.
 We show that when Northern and Southern firms compete on quantity in the
 Southern market, the South's optimal choice is either complete protection
 or complete violation, irrespective of different levels of IPR protection
 being available. We show this to depend on the Southern government's
 valuation of the <italic>quid pro quo</italic> and the Northern firm's
 level of technology. 
Journal: The Journal of International Trade & Economic Development 
Pages: 755-772 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 12
X-DOI: 10.1080/09638199.2010.534810 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.534810 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Armando Silva 
Author-X-Name-First: Armando 
Author-X-Name-Last: Silva 
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Author-Name: Ana   Paula Africano 
Author-X-Name-First: Ana   Paula 
Author-X-Name-Last: Africano 
Title: Which manufacturing firms learn by exporting? 
Abstract:
  Using a longitudinal database (1996--2003) at the plant level, this
 article analyses the causal nexus between international trade engagement
 and productivity in Portugal. By applying the propensity score matching
 and a differences-in-differences estimator, the learning-by-exporting
 hypothesis is analysed in particular. A higher growth of labour
 productivity and total factor productivity is found for new exporting
 firms. To uncover the channels through which the learning effects are
 driven, the same methodology is applied to some sub-samples. Learning
 effects are higher for new exporters that are also importers or start
 importing at the same time. Other factors affecting learning ability are
 found in firms exporting to more developed markets, in those that achieve
 a certain threshold of export intensity and mainly for those firms that
 belong to sectors where Portugal has a comparative disadvantage. 
Journal: The Journal of International Trade & Economic Development 
Pages: 773-805 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 12
X-DOI: 10.1080/09638199.2010.534811 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.534811 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Serge Shikher 
Author-X-Name-First: Serge 
Author-X-Name-Last: Shikher 
Title: Putting industries into the Eaton--Kortum model 
Abstract:
  The article introduces the industry dimension into the Eaton-Kortum model
 of trade. Industries are linked with each other by domestic and
 international trade in intermediate goods. The model is parametrized using
 data for eight industries in 1989. It is used to perform several
 counterfactual simulations that are relevant to today's policy debates.
 First, the model is used to study the effects of the US--EU trade wars. It
 is found that trade wars have a greater negative effect on countries with
 large initial net export positions. It is also found that some trade war
 scenarios are more beneficial to the US while others to the EU. Second,
 the model is used to study the effects of trade barrier reductions between
 the high-income and middle-income countries. The results show that this
 trade liberalization tends to reinforce the pattern of trade according to
 technological comparative advantages. The results also show which
 industries should be targeted for barrier reductions depending on policy
 goals. The third set of simulations investigates spillovers from the
 technological growth in the US machinery industry. The results show how
 geography, technology, and industry links affect the propagation of this
 growth across countries and industries. 
Journal: The Journal of International Trade & Economic Development 
Pages: 807-837 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 11 
X-DOI: 10.1080/09638199.2010.539704 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.539704 
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Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo   Maria Caporale 
Author-X-Name-First: Guglielmo   Maria 
Author-X-Name-Last: Caporale 
Author-Name: Christophe Rault 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Rault 
Author-Name: Robert Sova 
Author-X-Name-First: Robert 
Author-X-Name-Last: Sova 
Author-Name: Anamaria Sova 
Author-X-Name-First: Anamaria 
Author-X-Name-Last: Sova 
Title: European free trade agreements and trade balance: Evidence from four new European Union members 
Abstract:
  This article analyses the trade balance effects of Europe agreements (EA)
 between the EU-15 and four new EU members from Central and Eastern Europe
 (CEEC-4) using both static and dynamic panel data approaches.
 Specifically, the system generalised method of moments (GMM, Blundell, R.,
 and S. Bond. 1998. Initial conditions and moment restrictions in dynamic
 panel data models. <italic>Journal of Econometrics</italic> 87, no. 1:
 115--43) and recently developed econometric methods such as the Correlated
 Common Estimation Pooled--Hausman-Taylor (CCEP--HT, Serlenga, L., and Y.
 Shin. 2007. Gravity models of intra-EU trade: Application of the CCEP-HT
 estimation in heterogenous panels with unobserved common time-specific
 factors. <italic>Journal of Applied Econometrics</italic> 22: 361--81) are
 applied to analyse the effects of the agreement variable. Our estimation
 results indicate a positive and significant impact of EA on trade flows.
 However, there is an asymmetric impact of the agreement variable on the
 trade balance, exports and imports being affected in different ways, which
 results in a trade balance deficit in the CEEC-4. 
Journal: The Journal of International Trade & Economic Development 
Pages: 839-863 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638199.2011.555562 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.555562 
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Template-Type: ReDIF-Article 1.0
Author-Name: Rajat Acharyya 
Author-X-Name-First: Rajat 
Author-X-Name-Last: Acharyya 
Author-Name: Mar&#xed;a D.C. Garc&#xed;a-Alonso 
Author-X-Name-First: Mar&#xed;a D.C. 
Author-X-Name-Last: Garc&#xed;a-Alonso 
Title: Parallel imports, drug innovation and international patent protection: A policy game 
Abstract:
  We consider a policy game between a high-income country hosting a drug
 innovator and a low-income country hosting a drug imitator. The low-income
 country chooses whether to enforce an International Patent Regime (strict
 IPR) or not (weak IPR), and the high-income country chooses whether to
 allow parallel imports (PI) of on-patent drugs or market-based
 discrimination (MBD). We show that, for a moderately high imitation cost,
 both (strict IPR, PI) and (weak IPR, MBD) emerge as the subgame prfect
 Nash equilibrium (SPNE) policy choices. For relatively smaller imitation
 costs, (weak IPR, MBD) is the unique SPNE policy choice. The welfare
 properties reveal that although innovation may be higher at the (strict
 IPR, PI) policy regime, the market coverage and national welfare of the
 low-income country, and the total welfare are all lower. This opens up the
 efficiency issue of implementing TRIPS and at the same time allowing
 international exhaustion of patent rights. 
Journal: The Journal of International Trade & Economic Development 
Pages: 865-894 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 11 
X-DOI: 10.1080/09638199.2010.541273 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.541273 
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:6:p:865-894




Template-Type: ReDIF-Article 1.0
Author-Name: Hein Roelfsema 
Author-X-Name-First: Hein 
Author-X-Name-Last: Roelfsema 
Author-Name: Yi Zhang 
Author-X-Name-First: Yi 
Author-X-Name-Last: Zhang 
Title: The causal effect of institutional quality on outsourcing 
Abstract:
  We empirically investigate the relationship between institutional quality
 and outsourcing to developing economies. To examine the within-country
 time trend, in contrast to previous cross-sectional studies, this article
 constructs a time-varying industry-based outsourcing proxy for 89
 countries over 25 years (1980--2004). The resulting panel data allow us to
 identify the causal relationship by controlling for the fixed effects and
 dynamic factors. We find a significant positive effect of local
 institutional improvements on outsourcing within lower-middle income
 countries. In low, upper-middle and high income developing countries,
 institutional quality is not an important determinant of international
 outsourcing. 
Journal: The Journal of International Trade & Economic Development 
Pages: 895-920 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638199.2011.557161 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.557161 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:6:p:895-920




Template-Type: ReDIF-Article 1.0
Author-Name: Michael H&#xFC;bler 
Author-X-Name-First: Michael 
Author-X-Name-Last: H&#xFC;bler 
Author-Name: Thomas S. Lontzek 
Author-X-Name-First: Thomas S. 
Author-X-Name-Last: Lontzek 
Title: Socially optimal North--South capital transfer and technology diffusion 
Abstract:
  We study North--South capital transfer and the diffusion of embodied
 technologies within a framework of intertemporal global welfare
 maximization. We show saddle path stability and characterize the steady
 state. We then examine the transition path by running numerical
 experiments based on realistic data. As a result, technology diffusion
 will succeed if the absorptive capacity is sufficient which requires
 sufficient investment. While a large share of capital is allocated to the
 South in early periods, this share declines in later periods when the
 South has caught up in terms of technologies. 
Journal: The Journal of International Trade & Economic Development 
Pages: 921-940 
Issue: 6 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638199.2010.546869 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.546869 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:21:y:2012:i:6:p:921-940




Template-Type: ReDIF-Article 1.0
Author-Name: Peter A.G. van Bergeijk 
Author-X-Name-First: Peter A.G. 
Author-X-Name-Last: van Bergeijk 
Author-Name: Charles van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: van Marrewijk 
Title: Heterogeneity and development: An agenda 
Abstract:
	      Countries are heterogeneous both internally and externally in
 many ways, as is widely accepted in the policy arena. The booming
 literature on firm heterogeneity remains under-developed regarding the
 degree of firm heterogeneity in developing countries, and the relationship
 between firm heterogeneity and development. We sketch what we know today,
 discuss some recent contributions, and call for further research in this
 area.		
Journal: The Journal of International Trade & Economic Development 
Pages: 1-10 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745276 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745276 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:1-10




Template-Type: ReDIF-Article 1.0
Author-Name: Han-Hsin Chang 
Author-X-Name-First: Han-Hsin 
Author-X-Name-Last: Chang 
Author-Name: Charles Van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: Van Marrewijk 
Title: Firm heterogeneity and development: Evidence from Latin American countries 
Abstract:
	      We analyze normalized productivity differences for 15
 developing Latin American countries and four firm types: National
 Domestic, National Exporter, Foreign Domestic, and Foreign Exporter. There
 are no productivity thresholds for viability, export activity, or
 multinational activity, but we do find a clear size productivity premium
 and development productivity premium in the manufacturing sectors. We also
 find a clear foreign-ownership productivity premium, both for domestic
 firms and for exporting firms and both for manufacturing sectors and
 services sectors. In contrast, we only find an export productivity premium
 for national firms in the manufacturing sectors.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 11-52 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2012.704063 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.704063 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:11-52




Template-Type: ReDIF-Article 1.0
Author-Name: Anagaw Derseh Mebratie 
Author-X-Name-First: Anagaw Derseh 
Author-X-Name-Last: Mebratie 
Author-Name: Peter A. G. van Bergeijk 
Author-X-Name-First: Peter A. G. 
Author-X-Name-Last: van Bergeijk 
Title: Firm heterogeneity and development: A meta-analysis of FDI productivity spillovers 
Abstract:
	      We analyse the rich literature on FDI spillovers analysing
 econometric studies published over 1983-2010 and dealing with national
 studies in 30 developing countries and emerging markets. We find that
 these studies ignore two sources of heterogeneity: exports and -
 especially - R&D. Our meta-analysis corrects for differences in research
 design (including regional effects, sample size and level of aggregation).
 We observe positive and significant effects for heterogeneity in terms of
 labour quality, size and export. This robustness contrasts with
 contradictory findings for foreign ownership where 63% of the coefficients
 are insignificant or negative. 	 
Journal: The Journal of International Trade & Economic Development 
Pages: 53-74 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745281 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745281 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:53-74




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob A. Jordaan 
Author-X-Name-First: Jacob A. 
Author-X-Name-Last: Jordaan 
Title: Firm heterogeneity and technology transfers to local suppliers: Disentangling the effects of foreign ownership, technology gap and absorptive capacity 
Abstract:
	      In this paper, I present novel microeconomic evidence on the
 effects of firm heterogeneity on the creation and impact of technology
 transfers from foreign direct investment (FDI) to local suppliers in a
 developing country setting. The main findings are threefold. First, FDI
 firms are significantly more involved in knowledge transfer activities
 than domestic producer firms. In particular, FDI firms offer more
 technological support, support with a direct positive impact on production
 processes of local suppliers. Second, the type of ownership also
 influences the effect of the technology gap on technology transfers. A
 large technology gap between a producer firm and its suppliers lowers the
 provision of support; however, FDI firms offer more technological support
 to their suppliers of material inputs when the technology gap is large.
 Independent of the support that the suppliers receive, foreign ownership
 of client firms and a large technology gap make it more likely that
 suppliers experience large positive impacts. Third, the level of
 absorptive capacity of local suppliers is also important for the impact of
 the technology transfers, confirming the notion that heterogeneity among
 both producer firms and local suppliers affect the level, nature and
 impact of local technology transfers.		
Journal: The Journal of International Trade & Economic Development 
Pages: 75-102 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745282 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745282 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:75-102




Template-Type: ReDIF-Article 1.0
Author-Name: Anagaw Derseh Mebratie 
Author-X-Name-First: Anagaw Derseh 
Author-X-Name-Last: Mebratie 
Author-Name: Arjun S. Bedi 
Author-X-Name-First: Arjun S. 
Author-X-Name-Last: Bedi 
Title: Foreign direct investment, black economic empowerment and labour productivity in South Africa 
Abstract:
	      The impact of foreign direct investment (FDI) on domestically
 owned firms in developing countries has been widely debated in the
 literature. It has been argued that FDI provides access to advanced
 technologies and other intangible assets, which may spill over to the host
 country and allow domestic firms to improve their performance. While there
 is a substantial literature on this issue, for obvious reasons, little is
 known about the effect of FDI on domestic firms in the African context.
 Noting this gap, this paper uses two-period (2003 and 2007) firm level
 panel data from South Africa to examine the impact of FDI on the labour
 productivity of domestic firms. A key policy change during this time
 period was the passage of the broad-based black economic empowerment act
 (BB-BEE) and we also examine the effect of the interaction between foreign
 firm ownership and BEE on labour productivity. Regardless of the empirical
 specification, we find no spillover effects and no evidence that a greater
 degree of BEE compliance by foreign firms influences labour productivity.  
Journal: The Journal of International Trade & Economic Development 
Pages: 103-128 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745287 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745287 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:103-128




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Swart 
Author-X-Name-First: Julia 
Author-X-Name-Last: Swart 
Title: Intra-industry trade and heterogeneity in pollution emission 
Abstract:
	      This paper develops a model of intermediate goods firms
 heterogeneity with respect to a pollution parameter to analyze the effects
 of intra-industry trade on final good output, pollution and welfare. By
 focusing on intra-industry trade we consider trade between similar
 countries. We analyze both trade between developed countries, and trade
 between developing countries. In our model, final good producers pay an
 environmental tax on the total pollution emitted in their country.
 Therefore, final good producers determine the overall level of pollution
 by demanding 'cleaner' or 'dirtier' intermediate goods. To focus on
 intra-industry trade we consider only intermediate goods firms trade. We
 analyze three scenarios: closed economy; open economy with no impediments
 to trade; and open economy with transportation cost. Our main findings
 are: <italic>i</italic>. a developing country closed to trade faces lower
 final good output and higher total pollution and is thus worse off than a
 developed country; <italic>ii</italic>. countries are better off under
 trade than under autarky, regardless of their development level; and
 <italic>iii</italic>. an open economy with low transportation costs are
 better off than an open economy with no impediments to trade.		
Journal: The Journal of International Trade & Economic Development 
Pages: 129-156 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745288 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745288 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:129-156




Template-Type: ReDIF-Article 1.0
Author-Name: Saara Tamminen 
Author-X-Name-First: Saara 
Author-X-Name-Last: Tamminen 
Author-Name: Han-Hsin Chang 
Author-X-Name-First: Han-Hsin 
Author-X-Name-Last: Chang 
Title: Firm and sectoral heterogeneity in markup variability 
Abstract:
	      Many theoretical models assume that the markup of price over
 marginal costs is the same for all firms in a sector, irrespective of firm
 size, type, or efficiency. We analyze the distribution of markups for 70
 Finnish sectors using a complete dataset, including both manufacturing and
 services sectors and firms of all sizes. In contrast to the constant
 markup hypothesis, we find (i) large differences in markups within
 sectors, (ii) higher markups for small firms and domestic firms, and (iii)
 greater markup heterogeneity in sectors with low capital-labour ratios and
 a large number of firms.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 157-178 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 2 
X-DOI: 10.1080/09638199.2013.745289 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.745289 
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Template-Type: ReDIF-Article 1.0
Author-Name: Manash Ranjan Gupta 
Author-X-Name-First: Manash Ranjan 
Author-X-Name-Last: Gupta 
Author-Name: Priya Brata Dutta 
Author-X-Name-First: Priya Brata 
Author-X-Name-Last: Dutta 
Title: Skilled--unskilled wage inequality and imitation in a product variety model: A theoretical analysis 
Abstract:
	      The article develops a dynamic three-sector product variety
 model to analyze the role of imitation on skilled--unskilled wage
 inequality. One of these sectors produces varieties of innovated products
 with skilled labor as well as unskilled labor and another sector produces
 varieties of imitated products with only unskilled labor. Also, there is
 an R&D sector developing blueprints of new products with skilled labor as
 the only input. However, imitation is costless. It is shown that an
 increase in skilled (unskilled) labor endowment raises (lowers) the rate
 of growth, raises (lowers) the skilled--unskilled wage ratio, and lowers
 (raises) the level of social welfare. However, an increase in the rate of
 imitation raises this growth rate, lowers the skilled--unskilled wage
 ratio, and raises the level of social welfare. 	 
Journal: The Journal of International Trade & Economic Development 
Pages: 181-208 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2011.558629 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.558629 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:181-208




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Hori 
Author-X-Name-First: Masahiro 
Author-X-Name-Last: Hori 
Author-Name: Yu Ching Wong 
Author-X-Name-First: Yu Ching 
Author-X-Name-Last: Wong 
Title: Costs of Myanmar's multiple exchange-rate regime 
Abstract:
	      Myanmar's multiple exchange-rate regime creates various
 economic distortions. This paper describes the exchange-rate practices in
 Myanmar and develops a model of foreign exchange markets to estimate the
 welfare costs imposed by the current regime. Our analysis suggests that
 the equilibrium exchange rate could be around 400--500 kyat per US dollar,
 and trade openness measured using the equilibrium rate increases to more
 than 20% of gross domestic product (GDP) from less than 1% in the official
 statistics. The total welfare loss caused by the current regime is
 estimated to be in the order of 14--17% of GDP.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 209-233 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2011.555561 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.555561 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:209-233




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Cardebat 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Cardebat 
Author-Name: Alexandru Dumitrescu 
Author-X-Name-First: Alexandru 
Author-X-Name-Last: Dumitrescu 
Title: Social responsibility of countries and their international trade: A gravitational approach 
Abstract:
	      This article presents an econometric study based on a
 gravitational model estimation of the link between the prevailing social
 conditions in a country and its exports. It is based on an original
 indicator of social conditions: the <italic>Responsible Competitiveness
 Index</italic> (RCI) launched in 2007 by <italic>AccountAbility</italic>,
 the organisation that introduced the international AA1000 Standard. The
 regressions initially show a positive connection between the social
 responsibility of the countries and their exports. It is not a linear
 connection but shows a bell-shaped curve stronger in countries with lower
 levels of social responsibility (Southern countries): it can be negative
 in countries with high levels of social responsibility (Northern
 countries).	      
Journal: The Journal of International Trade & Economic Development 
Pages: 234-252 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2010.545954 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.545954 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:234-252




Template-Type: ReDIF-Article 1.0
Author-Name: Montfort Mlachila 
Author-X-Name-First: Montfort 
Author-X-Name-Last: Mlachila 
Author-Name: Paul Cashin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Cashin 
Author-Name: Cleary Haines 
Author-X-Name-First: Cleary 
Author-X-Name-Last: Haines 
Title: Caribbean bananas: The macroeconomic impact of trade preference erosion 
Abstract:
	      This article examines the macroeconomic effects of the
 erosion of trade preferences, with a focus on the export of Caribbean
 bananas to Europe. Estimates are made of the magnitude of implicit
 assistance provided over a period of three decades to eastern Caribbean
 countries through banana trade preferences. The value of such assistance
 rose until the early 1990s and has declined precipitously since then.
 Using vector autoregressive analysis, the article finds that changes in
 the level of implicit assistance have had a considerable macroeconomic
 impact, especially on Caribbean real gross domestic product growth.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 253-280 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2011.552114 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.552114 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:253-280




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Ghosh 
Author-X-Name-First: Amit 
Author-X-Name-Last: Ghosh 
Title: Cross-border production sharing and exchange-rate sensitivity of Mexico's trade balance 
Abstract:
	      Increasing patterns of international trade occur in the form
 of cross-border production sharing -- the dispersion of separate blocks of
 an integrated production process across different nations. In the case of
 &#x2018;standard&#x2019; or &#x2018;ordinary&#x2019; trade, imports are
 destined for use in the importing country, and exports are largely
 produced within the country. However, with production sharing, imported
 parts and components are destined for inclusion in the country's exports.
 A depreciation of a nation's currency raises its exports. At the same
 time, imported components become more expensive, which partly offsets the
 expansionary effect of the depreciation on exports. Using a simple
 theoretical framework, this paper shows that production networks lower the
 sensitivity of a country's trade balance to changes in exchange rates. The
 empirical examination finds Mexico's Maquiladora trade balance to be
 unresponsive to changes in both, its real effective as well as its real
 peso-dollar rates, while that for non-Maquiladora category is
 significantly responsive, in confirmation with the theorized hypothesis.   
Journal: The Journal of International Trade & Economic Development 
Pages: 281-297 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2010.551404 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.551404 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:281-297




Template-Type: ReDIF-Article 1.0
Author-Name: Halis M. Yildiz 
Author-X-Name-First: Halis M. 
Author-X-Name-Last: Yildiz 
Title: Foreign direct investment and customs union: Incentives for multilateral tariff cooperation over free trade 
Abstract:
	      The present article examines the implications of a customs
 union (CU) on the pattern of tariffs, welfare and the prospects for free
 trade when the non-member firm has an incentive to engage in foreign
 direct investment (FDI). First, I show that upon the formation of a
 bilateral CU, the non-member firm has greater incentives to engage in FDI.
 However, when FDI becomes a feasible entry option for the non- member firm
 under a CU, member countries have incentives to strategically induce
 export over FDI by lowering their joint external tariff. When fixed set-up
 cost of FDI is sufficiently low, this tariff falls below Kemp--Wan tariff
 and CU leads to a Pareto improvement relative to no agreement. Moreover,
 using an infinite repetition of the one-shot tariff game under a CU, I
 show that the presence of FDI incentive of the non-member firm makes the
 member countries more willing to cooperate multilaterally over free trade
 while the opposite is true for the non-member country. Finally, I find
 that, unless fixed cost of having an additional plant is sufficiently low,
 multilateral cooperation over free trade is easier to sustain when FDI
 incentive is present.		
Journal: The Journal of International Trade & Economic Development 
Pages: 298-316 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2011.558208 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.558208 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:298-316




Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Nguyen 
Author-X-Name-First: Xuan 
Author-X-Name-Last: Nguyen 
Title: The Quest for Prosperity: How Developing Economies Can Take Off 
Journal: The Journal of International Trade & Economic Development 
Pages: 317-320 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 3 
X-DOI: 10.1080/09638199.2013.778710 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.778710 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:317-320




Template-Type: ReDIF-Article 1.0
Author-Name: Mekbib Gebretsadik Haile 
Author-X-Name-First: Mekbib Gebretsadik 
Author-X-Name-Last: Haile 
Author-Name: Geoff Pugh 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Pugh 
Title: Does exchange rate volatility discourage international trade? A meta-regression analysis 
Abstract:
	      Since the breakdown of the Bretton Woods agreement, the trade
 effect of exchange rate variability (ERV) has been contentious. However,
 neither the theoretical nor the empirical literature provides unambiguous
 guidance on the trade effect of ERV. This article applies meta-regression
 analysis to the empirical literature and finds evidence of: modest
 publication bias; a range of authentic empirical effects that are highly
 conditional, even with respect to sign and, correspondingly, pronounced
 heterogeneity in the reported results. Investigation of this heterogeneity
 reveals that the results are significantly influenced both by authors'
 modelling strategies and by the contexts of their investigations. In
 particular, researchers are most likely to find an adverse trade effect by
 investigating low-frequency real exchange variability and trade between
 less developed economies, hence, beyond the reach of hedging opportunities
 (as suggested by previous studies). In general, our most important advice
 for policy makers is that economic research does not reveal a single
 representative effect size.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 321-350 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.565421 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.565421 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:321-350




Template-Type: ReDIF-Article 1.0
Author-Name: Goran Vuk&#x161;i&#x107; 
Author-X-Name-First: Goran 
Author-X-Name-Last: Vuk&#x161;i&#x107; 
Title: Developing countries in competition for foreign investment 
Abstract:
	      This study analyzes the competition for foreign direct
 investment (FDI) among countries at different stages of development. It is
 assumed that domestic companies in a more-developed country use more
 capital in production and that wages in a less-developed country are
 lower. Countries can compete for FDI by increasing the supply of public
 inputs in the economy, in addition to (or instead of) offering subsidies
 or tax reliefs to foreign investors. The results reveal that if
 governments of competing countries are not allowed to discriminate between
 domestic and foreign firms, there may be situations in which a
 less-developed economy will attract FDI depending on the labor cost
 differential and the responsiveness of foreign investor's and domestic
 companies' output to changes in the supply of public inputs. If tax
 discrimination between domestic and foreign firms is permitted, both
 countries will optimally raise the supply of public inputs, but the
 more-developed country will always win the foreign investment despite
 higher labor costs. Thus, governments of less-developed countries may have
 an incentive to work on an international agreement to disallow tax
 discrimination.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 351-376 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.578751 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.578751 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:351-376




Template-Type: ReDIF-Article 1.0
Author-Name: Maria E. de Boyrie 
Author-X-Name-First: Maria E. 
Author-X-Name-Last: de Boyrie 
Author-Name: Roger Johns 
Author-X-Name-First: Roger 
Author-X-Name-Last: Johns 
Title: The effects of trade agreements on the growth of major Latin American economies 
Abstract:
	      While the connection between trade openness and economic
 growth is generally assumed to be positive, empirically, it is not clearly
 demonstrable. Examinations of the relationship between trade and growth
 have taken a number of approaches, differing both in the empirical
 methods, as well as the proxies employed for trade openness, trade
 liberalization, and growth, but results have been decidedly mixed. Our
 research differs from prior studies in that it does not examine whether
 trade policy, trade liberalization or the level of trade itself enhances
 GDP; but rather whether participating in a specific type of trade
 agreement/union and/or the number of trade agreements to which a given
 country or region belongs enhances a country's level of growth. For this
 purpose, we study the relationship between trade agreements and growth for
 18 Latin American countries between 1960 and 2008. Empirical analysis uses
 an adaptation of the neoclassical Solow growth model. Even though
 supporters of globalization advance the notion that involvement in trade
 agreements will help a country's economy, our findings suggest that that
 may not be consistently so.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 377-397 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.578753 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.578753 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:377-397




Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Jensen 
Author-X-Name-First: Camilla 
Author-X-Name-Last: Jensen 
Author-Name: Jie Zhang 
Author-X-Name-First: Jie 
Author-X-Name-Last: Zhang 
Title: Trade in tourism services: Explaining tourism trade and the impact of the general agreement on trade in services on the gains from trade 
Abstract:
	      The article addresses two questions related with tourism as a
 service trade. Can tourism be explained as other export activities? Does
 service liberalisation have a positive or negative impact on tourism
 receipts in destination countries? Previous research has either focused on
 the demand side factors (i.e. factors of demand in the origin countries)
 or on tourism as a long-run factor of economic growth. The research shows
 that a complementary perspective such as that offered by trade in a supply
 side perspective can render additional insights towards understanding
 tourism. This approach can explain why countries have absolute and
 comparative advantage. Another finding is that tourism as an export can be
 explained by some of the same destination factors that explain other
 service exports. Using different panel estimators the importance of supply
 side factors that are to some extent exclusive to tourism are
 demonstrated: the general price competitiveness of the destination,
 tourism infrastructure and the provision of safety. The econometric models
 also confirm the relevance of other conventional explanatory factors of
 trade in services such as GDP per capita and internet usage. The last part
 of the article analyses the welfare gains from trade under the general
 agreement on trade in services (GATS). The revenue (tourism receipt)
 effect is decomposed into a volume (arrival) and price effect. Results
 suggest that liberalisers under the GATS gained especially from a volume
 effect with average higher growth rates in the number of arrivals. There
 is also found to be a positive effect on the average income earned per
 tourist from being a liberaliser.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 398-429 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.574723 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.574723 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:398-429




Template-Type: ReDIF-Article 1.0
Author-Name: William W. Chow 
Author-X-Name-First: William W. 
Author-X-Name-Last: Chow 
Author-Name: Michael K. Fung 
Author-X-Name-First: Michael K. 
Author-X-Name-Last: Fung 
Title: Financial development and growth: A clustering and causality analysis 
Abstract:
	      This article examines the relationship between financial
 development and economic growth in a sample of 69 countries. A regime
 switching panel vector autoregression model is specified to detect
 directional changes in finance-growth causality and potential time
 variation of such causality patterns. In addition, a clustering analysis
 is performed to identify the presence of convergence clubs based on data
 properties. The findings show that most countries have switching between
 two states: one way causality from growth to financial development but not
 the other way round, and coexistence of bi-directional causality. Poorer
 countries are represented by a system with stable steady state while the
 clusters of advanced economies tend to exhibit multiple steady states. The
 clustering results map closely the degree of financial openness, and the
 cultural and geographical proximities of member countries.	     
Journal: The Journal of International Trade & Economic Development 
Pages: 430-453 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.570364 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.570364 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:430-453




Template-Type: ReDIF-Article 1.0
Author-Name: Slobodan Djaji&#x107; 
Author-X-Name-First: Slobodan 
Author-X-Name-Last: Djaji&#x107; 
Author-Name: Michael S. Michael 
Author-X-Name-First: Michael S. 
Author-X-Name-Last: Michael 
Title: Guest worker programs: A theoretical analysis of welfare of the host and source countries* 
Abstract:
	      This article examines the interaction between migration
 policies of the host and source countries in the context of a model of
 guest-worker migration. For the host, the objective is to provide low-cost
 labor for its employers while avoiding illegal immigration. It optimizes
 over these objectives by setting the time limit of a guest-worker permit.
 The source country seeks remittance flows and return migration by offering
 fiscal benefits to returnees. Within this framework, we solve for the Nash
 equilibrium values of the migration policy instruments and compare them,
 to the extent possible, with the ones that emerge in a cooperative
 setting.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 454-475 
Issue: 3 
Volume: 22 
Year: 2013 
Month: 4 
X-DOI: 10.1080/09638199.2011.566932 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.566932 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:454-475




Template-Type: ReDIF-Article 1.0
Author-Name: Nelson Correa 
Author-X-Name-First: Nelson 
Author-X-Name-Last: Correa 
Author-Name: Michele Di Maio 
Author-X-Name-First: Michele 
Author-X-Name-Last: Di Maio 
Title: Informality, tariffs and wealth 
Abstract:
	      This article analyzes the interaction between changes in
 tariff protection, informality, inequality and aggregate income. First, we
 describe some new empirical evidence on informality, the formal/informal
 wage gap and trade openness in Latin American countries. Then we present a
 simple model characterized by three (empirically based) assumptions: (1)
 agents consume both formal and informal goods; (2) the government uses
 tariff revenues to purchase formal goods; (3) informality is a voluntary
 phenomenon. The model predicts that tariff reduction increases informality
 and wage inequality and that the maximization of income requires a
 positive level of tariff protection. The model's results are shown to be
 consistent with the empirical evidence concerning Latin American
 countries.	     
Journal: The Journal of International Trade & Economic Development 
Pages: 477-508 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.590598 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.590598 
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Template-Type: ReDIF-Article 1.0
Author-Name: Noor Aini Khalifah 
Author-X-Name-First: Noor Aini 
Author-X-Name-Last: Khalifah 
Title: Ownership and technical efficiency in Malaysia's automotive industry: A stochastic frontier production function analysis 
Abstract:
	      This article examines the direct effect of the extent of
 foreign ownership on technical efficiency in Malaysia's automotive
 industry by applying a stochastic frontier production function analysis to
 micro-panel data over the years 2000--2004. Technical efficiency in the
 overall automotive industry is positively related to the degree of
 vertical integration, the size of establishments in the respective
 sub-sectors, a higher quality of the work force, and a higher foreign
 ownership share in the establishment combined with higher net-import
 intensity. Foreign ownership and net-export intensity are not significant
 determinants of technical efficiency inthe parts sub-sector. Although
 majority foreign ownership is not allowed in the assembly sub-sector, this
 sub-sector is large, with asmall number of establishments generating scale
 economies in the automotive industry. The determinants of technical
 efficiency in the parts sub-sector show that foreign ownership <italic>per
 se</italic> does not enhance technical efficiency since other determinants
 like the degree of vertical integration and the size of establishments are
 significant determinants of technical efficiency.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 509-535 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.571702 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.571702 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:4:p:509-535




Template-Type: ReDIF-Article 1.0
Author-Name: Idil Uz 
Author-X-Name-First: Idil 
Author-X-Name-Last: Uz 
Author-Name: Natalya Ketenci 
Author-X-Name-First: Natalya 
Author-X-Name-Last: Ketenci 
Title: Current account and relative prices: Are there any cointegration relationships in the presence of structural breaks in emerging economies? 
Abstract:
	      The aim of this study is to examine the long-run relationship
 between the current account and relative prices, such as terms of trade
 (TOT) and real exchange rate, for the emerging economies. These variables
 have been exposed to large fluctuations for more than two decades in all
 emerging economies; therefore, structural breaks have to be taken into
 account in all estimations. In this article, various methodological
 techniques have been used to examine this long-run relationship (with and
 without the structural breaks). Two important results have emerged, first;
 when the structural changes are excluded there is a strong evidence for
 long-run relationship between current account and relative prices. Second;
 when the structural breaks are included, variables are found to be
 stationary. Hence, depending on the stability of the variables, the
 validity of the cointegration relationship has been seriously questioned.
 This study illustrates that the test results proving non-stationary of the
 series and the presence of cointegration may be spurious if there is any
 possibility of instability.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 536-561 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.573082 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.573082 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Beladi 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Beladi 
Author-Name: Chi-Chur Chao 
Author-X-Name-First: Chi-Chur 
Author-X-Name-Last: Chao 
Author-Name: Daniel Hollas 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Hollas 
Title: Does globalization weaken labor unions in developing countries? 
Abstract:
	      For a developing economy with a given urban wage rate,
 globalization in capital markets strengthens labor unions. This result
 hinges on the fixed urban wage rate, which leads to a constant
 capital--labor ratio in the urban sector. Globalization via capital
 inflows not only enhances the employment effect of unionization but also
 reduces the rent-shifting related loss in production inefficiency to
 domestic capital, lending a support to labor unions for developing
 economies. This result is contrary to the common belief that labor unions
 tend to be weakened during the globalization process observed after 1980s
 in many developed economies.	       
Journal: The Journal of International Trade & Economic Development 
Pages: 562-571 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.578752 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.578752 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dawood Mamoon 
Author-X-Name-First: Dawood 
Author-X-Name-Last: Mamoon 
Author-Name: Syed Mansoob Murshed 
Author-X-Name-First: Syed Mansoob 
Author-X-Name-Last: Murshed 
Title: Education bias of trade liberalization and wage inequality in developing countries 
Abstract:
	      The aim of this article is to examine the impact of increased
 trade on wage inequality in developing countries, and whether a higher
 human capital stock moderates this effect. We look at the
 skilled--unskilled wage differential. When better educated societies open
 up their economies, increased trade is likely to induce less inequality on
 impact because the supply of skills better matches demand. But greater
 international exposure also brings about technological diffusion, further
 raising skilled labour demand. This may raise wage inequality, in contrast
 to the initial egalitarian <italic>level</italic> effect of human capital.
 We attempt to measure these two opposing forces. We also employ a broad
 set of indicators to measure trade liberalization policies as well as
 general openness, which is an outcome, and not a policy variable. We
 further examine what type of education most reduces inequality. Our
 findings suggest that countries with a higher level of initial human
 capital do well on the inequality front, but human capital which accrues
 through the trade liberalization channel has inegalitarian effects. Our
 results also have implications for the speed at which trade policies are
 liberalized, the implication being that better educated nations should
 liberalize faster.	     
Journal: The Journal of International Trade & Economic Development 
Pages: 572-604 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.589532 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.589532 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:4:p:572-604




Template-Type: ReDIF-Article 1.0
Author-Name: Oleksandr Shepotylo 
Author-X-Name-First: Oleksandr 
Author-X-Name-Last: Shepotylo 
Title: Export diversification across countries and products: Do Eastern European (EE) and Commonwealth of Independent States (CIS) countries diversify enough? 
Abstract:
	      Despite the importance of geographical and product
 diversification of exports, this question has not got enough attention in
 the literature. We look at country and product diversification of exports
 from Eastern Europe (EE) and Commonwealth of Independent States (CIS), two
 groups of countries that both substantially increased trade openness since
 the beginning of transition, but took different paths in terms of product
 and geographical composition of exports, and compare with the export
 diversification predicted by the gravity equation estimated on a large
 sample of countries in 2001--2007. The results demonstrate substantial
 deviations of the actual diversification levels from the levels predicted
 by the gravity model for the CIS countries, while the EE countries' levels
 of diversification are much closer to the levels predicted by the model
 and consistent with the data. All CIS countries lag behind the region
 leaders -- Czech Republic and Poland -- in terms of the degree of export
 diversification. In particular, the CIS countries extensively engaged in
 the export of raw materials have the most concentrated exports in terms of
 their product composition. In terms of geographical diversification,
 Belarus has the least diversified exports among all transition countries.  
Journal: The Journal of International Trade & Economic Development 
Pages: 605-638 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638199.2011.577797 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.577797 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jingtao Yi 
Author-X-Name-First: Jingtao 
Author-X-Name-Last: Yi 
Title: Exchange rates and prices: Evidence from China 
Abstract:
	      This article develops a pricing model that incorporates an
 industrial organization approach with the traditional quantity theory of
 money to explain the impact of exchange rates on consumer prices. Using
 time-series data on prices and exchange rates of China, the model
 replicates the main features of the observed facts: exchange rates
 influence consumer prices through changing import prices; money supply and
 output influence consumer prices following the quantity theory. The
 estimating results show that exchange-rate pass-through to consumer prices
 is low and increases from the short run to the long run. The extent of
 pass-through is likely to depend on markup adjustment and marginal costs.  
Journal: The Journal of International Trade & Economic Development 
Pages: 639-657 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.589032 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.589032 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:639-657




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Persson 
Author-X-Name-First: Maria 
Author-X-Name-Last: Persson 
Title: Trade facilitation and the extensive margin 
Abstract:
	      The literature on trade facilitation has mostly focused on
 implications for trade volumes. However, recent theoretical contributions
 have emphasized that trade costs -- such as transaction costs related to
 cross-border trade procedures -- affect both the traded volumes of
 &#x2018;old&#x2019; goods (the <italic>intensive margin</italic>) and the
 range of traded goods (the <italic>extensive margin</italic>). This
 article therefore tests whether trade facilitation affects the extensive
 margin by counting the number of 8-digit products that are exported from
 developing to EU countries, and using this as the dependent variable in an
 estimation. Moreover, it also tests whether the extensive margins in
 differentiated and homogeneous goods are affected in the same way by
 transaction costs. Estimation results suggest that if export transaction
 costs -- proxied by the number of days needed to export a good -- declined
 by 1%, the number of exported differentiated and homogeneous products
 would rise by 0.6% and 0.3%, respectively. Policy simulations further
 illustrate that if all countries were as efficient at the border as the
 most efficient country at the same level of development, the number of
 exported differentiated and homogeneous products would increase by 62% and
 26%, respectively.	     
Journal: The Journal of International Trade & Economic Development 
Pages: 658-693 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.587019 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.587019 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:658-693




Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Ming Chang 
Author-X-Name-First: Yang-Ming 
Author-X-Name-Last: Chang 
Author-Name: Renfeng Xiao 
Author-X-Name-First: Renfeng 
Author-X-Name-Last: Xiao 
Title: Free trade areas, the limit of Rules of Origin, and optimal tariff reductions under international oligopoly: A welfare analysis 
Abstract:
	      In this article we analyze the economic effects associated
 with preferential Rules of Origin (RoO) in a free trade area (FTA). By
 presenting a stylized three-country model of trade under oligopoly, we
 show that there exists a maximum limit of RoO below which forming an FTA
 is welfare-improving. In examining external tariff reductions under FTA,
 we take into account the constrained conditions that optimal tariffs set
 by member countries effectively induce the intrabloc exporters to comply
 with RoO. This approach rules out trade regime switches and helps identify
 the economic determinants of establishing an effective and
 welfare-improving FTA with RoO. We further examine whether an FTA with RoO
 increases total trade or whether the extra trade arises at the expense of
 nonmembers. Our simple model has implications for economic factors that
 foster or impede regional economic integration under imperfect completion. 
Journal: The Journal of International Trade & Economic Development 
Pages: 694-728 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.627443 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.627443 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:694-728




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cashin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Cashin 
Author-Name: Sebastian Sosa 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Sosa 
Title: Macroeconomic fluctuations in the Eastern Caribbean: The role of climatic and external shocks 
Abstract:
	      This article develops country-specific vector autoregressive
 (VAR) models with block exogeneity restrictions to analyze how exogenous
 factors affect business cycles in the Eastern Caribbean. It finds that
 external shocks play a key role, explaining more than half of
 macroeconomic fluctuations in the region. Domestic business cycles are
 especially vulnerable to changes in climatic conditions, with a natural
 disaster leading to an immediate and significant fall in output -- but the
 effects do not appear to be persistent. Oil price and external demand
 shocks also contribute significantly to domestic macroeconomic
 fluctuations. An increase in oil prices (external demand) is
 contractionary (expansionary), and the effects dissipate up to three years
 after the shock.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 729-748 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.599854 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.599854 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:729-748




Template-Type: ReDIF-Article 1.0
Author-Name: Adriana Di Liberto 
Author-X-Name-First: Adriana 
Author-X-Name-Last: Di Liberto 
Title: High skills, high growth: Is tourism an exception? 
Abstract:
	      Despite the emphasis placed by growth models on technological
 progress, recent empirical evidence shows that tourism, a sector widely
 regarded as low-skill/low-tech and one of the fastest growing industries
 in the world, may offer a favorable strategy for growth. In addition, in
 this tourism-led growth literature it is not clear whether human capital
 plays a role. Using a panel of 72 countries (1980--2005) this study shed
 new light on the effect of tourism and human capital for economic growth.
 While our results confirm that the tourism sector indicator is always
 positive and significant in growth regressions they also show that
 increased education contributes to growth and that the role of the tourism
 sector is significantly larger in countries with higher aggregate levels
 of human capital. Our main results are robust to the inclusion of
 additional variables, the use of alternative estimators in the regression
 analysis and the use of different sub-samples. Overall, our results
 suggest that an increase in human capital endowments is always beneficial,
 even when the development strategy focuses on the expansion of a
 (successful) unskilled sector. 	 
Journal: The Journal of International Trade & Economic Development 
Pages: 749-785 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.603054 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.603054 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:749-785




Template-Type: ReDIF-Article 1.0
Author-Name: Adriana Peluffo 
Author-X-Name-First: Adriana 
Author-X-Name-Last: Peluffo 
Title: Regional integration and technology diffusion: The case of Uruguay 
Abstract:
	      We examine the impact of trade-related R&D spillovers from
 the country's partners in the MERCOSUR as well as from the European Union
 and NAFTA blocs and the rest of the world on total factor productivity for
 the Uruguayan case at the industry level, for the period 1988--95.
 Furthermore, we analyse the impact of domestic R&D in Uruguay. There is an
 evidence of trade-related technology diffusion from MERCOSUR partners to
 Uruguay, although domestic R&D has apositive impact on productivity. Thus,
 policies aimed to promote domestic R&D and decreasing trade barriers could
 enhance Uruguayan manufacturing productivity.		
Journal: The Journal of International Trade & Economic Development 
Pages: 786-816 
Issue: 5 
Volume: 22 
Year: 2013 
Month: 8 
X-DOI: 10.1080/09638199.2011.605461 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.605461 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:5:p:786-816




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Brakman 
Author-X-Name-First: Steven 
Author-X-Name-Last: Brakman 
Author-Name: Robert Inklaar 
Author-X-Name-First: Robert 
Author-X-Name-Last: Inklaar 
Author-Name: Charles Van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: Van Marrewijk 
Title: Structural change in OECD comparative advantage 
Abstract:
	      In the post-war period, the goods composition of trade in
 Organisation for Economic Cooperation and Development (OECD) countries has
 changed considerably. We analyze the evolution of comparative advantage
 using a detailed trade data set and a new analytical tool: the Harmonic
 Mass index (HM index), which enables us to identify periods of structural
 change. We then discuss which forces may be responsible for the main
 structural changes, which primarily took place in many OECD countries in
 the mid 1980s. The advantage of the HM analysis is that it indicates when
 structural breaks occur in history.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 817-838 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9 
X-DOI: 10.1080/09638199.2011.605460 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.605460 
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Handle: RePEc:taf:jitecd:v:22:y:2013:i:6:p:817-838




Template-Type: ReDIF-Article 1.0
Author-Name: Yi Lee 
Author-X-Name-First: Yi 
Author-X-Name-Last: Lee 
Author-Name: Yih-Luan Chyi 
Author-X-Name-First: Yih-Luan 
Author-X-Name-Last: Chyi 
Author-Name: Eric S. Lin 
Author-X-Name-First: Eric S. 
Author-X-Name-Last: Lin 
Author-Name: Shih-Ying Wu 
Author-X-Name-First: Shih-Ying 
Author-X-Name-Last: Wu 
Title: Do local industrial agglomeration and foreign direct investment to China enhance the productivity of Taiwanese firms? 
Abstract:
	      This article examines the impacts of industrial agglomeration
 and outward foreign direct investment (OFDI) on the total factor
 productivity (TFP) of Taiwanese firms. A vertical FDI-based model of
 heterogeneous firms is proposed to analyze how agglomeration economies and
 technology incompatibilities between parent firms and their affiliates can
 affect firm productivity. This model suggests that firms located in areas
 with more concentrated industrial agglomerations are more productive,
 while those engaging in OFDI may not perform better in terms of TFP. Using
 plant-level data, this article constructs an indicator of industrial
 agglomeration to appraise agglomeration economies on firm productivity.
 Based on the data for 578 manufacturing firms and the agglomeration
 indicator, we estimate a cross-sectional econometric model to empirically
 assess the productivity effects of industrial agglomeration and OFDI. The
 empirical results show that local industrial agglomerations exert a
 positive contribution to firm productivity, but that FDI in China has no
 significant effects on Taiwanese firms' TFP.	       
Journal: The Journal of International Trade & Economic Development 
Pages: 839-865 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9  
X-DOI: 10.1080/09638199.2011.609601 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.609601 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jan Pettersson 
Author-X-Name-First: Jan 
Author-X-Name-Last: Pettersson 
Author-Name: Lars Johansson 
Author-X-Name-First: Lars 
Author-X-Name-Last: Johansson 
Title: Aid, Aid for Trade, and bilateral trade: An empirical study 
Abstract:
	      In a gravity model for 184 countries between 1990 and 2005,
 we show that bilateral aid is not only positively correlated with donor
 exports, as suggested in earlier studies, but also positively associated
 with recipient exports to donors. Our interpretation is that an
 intensified aid relation reduces the effective cost of distance. We find a
 particularly strong effect of aid in the form of technical assistance. The
 effect of trade-related assistance (Aid for Trade) is small and fully
 accounted for by aid to investments in trade-related infrastructure. The
 aid-trade link is particularly strong for donor exports to Sub-Saharan
 African countries and for recipient exports of strategic materials.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 866-894 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9 
X-DOI: 10.1080/09638199.2011.613998 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.613998 
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrey Stoyanov 
Author-X-Name-First: Andrey 
Author-X-Name-Last: Stoyanov 
Title: A model of trade liberalization and technology adoption withheterogeneous firms 
Abstract:
	      This article demonstrates that the reason for a higher
 capital--labor ratio, observed for exporting firms, is a higher capital
 intensity of their production technology. Exporters are more productive,
 more likely to survive and, hence, more likely to repay loans. A higher
 repayment probability causes creditors to charge lower interest rates,
 which stimulates exporters to switch to cost-reducing capital-intensive
 technologies. A reduction in international trade costs stimulates
 exporting firms to switch to more efficient capital-intensive
 technologies, while non-exporters stick to less capital-intensive ones.
 This within-industry change in the composition of technologies reinforces
 the productivity advantage of exporters and contributes further to
 industry-wide productivity improvement. The results of model simulations
 highlight that 5--10% of total welfare and productivity gains of trade
 liberalization can result from the adoption of new technologies by
 existing firms in the industry, thus amplifying the effect of resource
 reallocation arising from firms&#x2019; entry and exit.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 895-923 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9 
X-DOI: 10.1080/09638199.2011.633173 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.633173 
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Template-Type: ReDIF-Article 1.0
Author-Name: Rasyad A. Parinduri 
Author-X-Name-First: Rasyad A. 
Author-X-Name-Last: Parinduri 
Author-Name: Shandre M. Thangavelu 
Author-X-Name-First: Shandre M. 
Author-X-Name-Last: Thangavelu 
Title: Trade liberalization, free trade agreements, and the value of firms: Stock market evidence from Singapore 
Abstract:
	      We examine the effects of the United States--Singapore Free
 Trade Agreement (FTA) on the value of firms listed in the Singapore
 Exchange using event study analysis. Despite the predictability of the FTA
 negotiations, we find that one event -- the removal of the last obstacle
 to the free trade deal in January 2003 -- increases the value of firms in
 some industries by 1--11% on average. These results indicate that trade
 liberalization and FTAs do increase the value of firms.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 924-941 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9 
X-DOI: 10.1080/09638199.2011.616934 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.616934 
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Template-Type: ReDIF-Article 1.0
Author-Name: Arghya Ghosh 
Author-X-Name-First: Arghya 
Author-X-Name-Last: Ghosh 
Author-Name: Jonathan Lim 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Lim 
Title: Cooperative and non-cooperative R&D and trade costs 
Abstract:
	      We examine the effect of trade liberalization on the level
 and mode of R&D in an international duopoly setting. Firms have the choice
 to invest in R&D either independently or cooperatively. A reduction in
 trade cost increases R&D irrespective of the mode of R&D. However, an
 increase in spillovers has ambiguous effects on R&D. More precisely, we
 find that an increase in spillover leads to higher R&D activity under
 cooperation but lower R&D activity under non-cooperation. Concerning
 cooperation versus non-cooperation, we find that firms prefer cooperation
 only if trade costs are low. Consumers are better off under cooperation if
 spillovers are high. We find that there can be a mismatch between private
 and social incentives. If spillovers are low and trade costs are low then
 cooperation might be privately profitable but socially undesirable. On the
 other hand, if there are large spillovers and high trade costs then
 cooperation may be socially desirable but not privately profitable.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 942-958 
Issue: 6 
Volume: 22 
Year: 2013 
Month: 9 
X-DOI: 10.1080/09638199.2011.618228 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.618228 
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Template-Type: ReDIF-Article 1.0
Author-Name: Anwesha Aditya 
Author-X-Name-First: Anwesha 
Author-X-Name-Last: Aditya 
Author-Name: Rajat Acharyya 
Author-X-Name-First: Rajat 
Author-X-Name-Last: Acharyya 
Title: Export diversification, composition, and economic growth: Evidence from cross-country analysis 
Abstract:
	      We investigate the export-growth relationship at disaggregate
 levels - disaggregation both at the country level and at the level of
 exports - focusing on the diversification and the composition of exports
 of countries. In a sample of 65 countries for the period 1965-2005 the
 dynamic panel estimation reveals that both diversification and composition
 of exports are important determinants of economic growth after controlling
 for the impacts of other variables like lagged income, investment, and
 infrastructure. There is a critical level of export concentration beyond
 which increasing export specialization leads to higher growth. Below this
 critical level, diversification of exports matters for gross domestic
 product (GDP) growth. Growth of high technology exports also contributes
 tothe output growth; the relationship becomes stronger for countries that
 have share of manufacturing exports in their total exports greater than
 the world average. These results are robust even when the dataset
 isclassified in four sub-panels based on the export-economic growth
 relationship.		
Journal: The Journal of International Trade & Economic Development 
Pages: 959-992 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2011.619009 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.619009 
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Template-Type: ReDIF-Article 1.0
Author-Name: Octavio Romano Escobar Gamboa 
Author-X-Name-First: Octavio Romano 
Author-X-Name-Last: Escobar Gamboa 
Title: Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states 
Abstract:
	      This article studies the location pattern of foreign direct
 investment (FDI) in Mexico for the period 1994-2004. An empirical model is
 specified based on recent FDI theories. This model is estimated using
 state-level data and employing spatial econometric techniques. Results
 suggest that higher education levels and lower delinquency rates are
 important determinants to attract FDI. Results also suggest a relationship
 of complementarity between inbound FDI to the host state and inward FDI to
 its neighboring states.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 993-1012 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2011.624190 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.624190 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bernardina Algieri 
Author-X-Name-First: Bernardina 
Author-X-Name-Last: Algieri 
Title: Determinants of the real effective exchange rate in the Russian Federation 
Abstract:
	      This article examines the main determinants of the Russian
 real effective exchange rate (REX) movements over the transition period
 started in the early 1990s. To understand the forces that drive exchange
 rate dynamics, five strands of the empirical literature have been combined
 ina time series dimension. The results suggest a positive long-run
 cointegration relationship between the REX, oil price, productivity and
 government financial position and a negative relation with international
 reserves. Managing international reserves and fiscal policies have
 therefore, the effect of mitigating the impact of oil/terms of trade and
 productivity shocks on the REX.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 1013-1037 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2011.631216 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.631216 
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Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel K.K. Lartey 
Author-X-Name-First: Emmanuel K.K. 
Author-X-Name-Last: Lartey 
Title: Remittances, investment and growth in sub-Saharan Africa 
Abstract:
	      Several studies have examined the impact of remittances on
 economic growth, yet the results remain largely inconclusive. I present an
 analysis of the relationship between remittances and per capita growth,
 and investigate whether the impact of remittances on growth is through
 capital accumulation or other mechanisms. Using data for sub-Saharan
 African countries and dynamic empirical models, I find that there is a
 positive relationship between remittances and growth, as well as a
 positive interaction effect between remittances and financial depth on
 growth. The findings also reveal threshold values for two main indicators
 of financial development, above which the total effect of remittances on
 growth is positive. The results further provide evidence for the existence
 of an investment channel through which remittances affect growth, and
 indirect evidence that remittances contribute towards a stable
 macroeconomic environment, and hence, growth, through a consumption
 smoothing effect.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 1038-1058 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2011.632692 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.632692 
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Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Augier 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Augier 
Author-Name: Marion Dovis 
Author-X-Name-First: Marion 
Author-X-Name-Last: Dovis 
Title: Does export-market participation improve productivity? Evidence from Spanish manufacturing firms 
Abstract:
	      This article has a dual aim. First, it sets out to underline
 a learning-by-exporting effect in Spanish firms between 1991 and 2002. It
 further seeks to outline the conditions allowing firms to benefit from
 these spillover effects. Using a propensity score matching method, a group
 of firms having entered the export market (treatment group) is compared
 with a similar group of non-exporting firms (control group), and
 difference-in-differences regressions are carried out. The results show a
 cumulative productivity differential of 32% for the first four years of
 exporting, with continuous improvement in productivity. After three years
 of exporting, productivity gain is still approximately 10%. This study
 shows that increases in capacity utilisation and competitive pressure from
 foreign markets are insufficient to explain this causal link between
 exporting and total factor productivity (TFP). It is thus possible to
 deduce the presence of a learning-by-exporting effect, benefiting firms
 with sufficiently qualified employees and which are already engaged in
 international relations (due to foreign suppliers and/or foreign equity
 participation).	  
Journal: The Journal of International Trade & Economic Development 
Pages: 1059-1087 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2011.637116 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.637116 
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Template-Type: ReDIF-Article 1.0
Author-Name: Saban Nazlioglu 
Author-X-Name-First: Saban 
Author-X-Name-Last: Nazlioglu 
Title: Exchange rate volatility and Turkish industry-level export: Panel cointegration analysis 
Abstract:
	      The purpose of this article is to investigate the impact of
 the exchange rate volatility on Turkey's export. To this end, the panel
 cointegration analysis is applied to the data from Turkey's top 20 export
 industries to major 20 trading partners for the period 1980-2009. Special
 attention is paid to test for whether employment of country-level trade
 data instead of industry-level data is subject to the aggregation bias
 problem in the estimation of long-run cointegration parameters. The
 results indicate that employing country-level trade data suffers from the
 aggregation bias in estimating the cointegration parameters for the level
 of exchange rate and for the exchange rate volatility. The findings imply
 that (i) the impact of the exchange rate volatility on Turkish exports
 differs across industries, (ii) Turkey benefits from the depreciation of
 Turkish lira, and(iii) the foreign income plays a key role in determining
 the Turkish industry-level exports. The findings increase our insights to
 explain therecent dynamics of Turkish exports and provide some policy
 implications.		
Journal: The Journal of International Trade & Economic Development 
Pages: 1088-1107 
Issue: 7 
Volume: 22 
Year: 2013 
Month: 10 
X-DOI: 10.1080/09638199.2012.660978 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.660978 
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Template-Type: ReDIF-Article 1.0
Author-Name: Satoko Takamatsu 
Author-X-Name-First: Satoko 
Author-X-Name-Last: Takamatsu 
Title: A macroeconomics perspective on international coordination in sales taxes 
Abstract:
	      This article investigates how international coordination
 vis-&#xe0;-vis sales tax policies affects the welfare of participating
 countries. A country's tax policies have asymmetric effects on the pricing
 behaviors of domestic and overseas producers. International cooperation
 endogenizes the externality that improves the purchasing power of foreign
 residents, but at the cost of its own residents' work efforts. The
 first-best taxes are lower than in the noncooperative case. When world
 welfare is utilitarian, smaller economies may experience welfare losses
 from cooperation under the weak income effect of sales tax. We propose a
 coordinated tax rule that all countries agree to employ.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 1109-1130 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2011.640755 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.640755 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Franco 
Author-X-Name-First: Chiara 
Author-X-Name-Last: Franco 
Author-Name: Elisa Gerussi 
Author-X-Name-First: Elisa 
Author-X-Name-Last: Gerussi 
Title: Trade, foreign direct investments (FDI) and income inequality: Empirical evidence from transition countries 
Abstract:
	      The aim of the article is to verify whether trade and inward
 foreign direct investments (FDI) may affect income distribution in a
 sample of 17 Transition Countries (TCs) over the period 1990-2006. In line
 with most of the previous literature, FDI do not have significant effects
 on income inequalities, whereas trade, especially when occurs with
 developed countries, seems to be more relevant. Different results are
 found when we take into consideration the educational system which
 represents an important channel through which FDI and trade may affect
 inequality.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 1131-1160 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2011.647048 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.647048 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alakananda Ganguli 
Author-X-Name-First: Alakananda 
Author-X-Name-Last: Ganguli 
Title: Green productivity and bilateral trade flows in an augmented gravity model - A panel data analysis 
Abstract:
	      Motivated by the debate in the trade liberalization and the
 environment literature, this article examines the effect of enhancing
 green productivity (GP) on bilateral trade flows. The uptake of per capita
 ISO14001 certification counts is used to measure GP. The existing
 literature provides other key determinants of bilateral trade flows. This
 article employs an augmented gravity model and presents panel data
 analysis on 26 countries from 1995-2004. Since GP is closely related to
 quality management, this article also examines the joint effect of the
 measure of quality management systems (QMS) and the measure of GP. Several
 fixed effects regression equations are estimated. The results support the
 hypothesis that enhancing green productivity is a positive and
 statistically significant determinant of real bilateral exports. The joint
 significance of the measures of GP and QMS is also supported. This article
 lends empirical support for the new trade theory and Linder's hypothesis
 and is consistent with those obtained in the existing literature.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 1161-1182 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2011.647049 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.647049 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Scott Hegerty 
Author-X-Name-First: Scott 
Author-X-Name-Last: Hegerty 
Author-Name: Hanafiah Harvey 
Author-X-Name-First: Hanafiah 
Author-X-Name-Last: Harvey 
Title: Exchange-rate sensitivity of commodity trade flows: Does the choice of reporting country affect the empirical estimates? 
Abstract:
	      While the effects of currency fluctuations on trade have long
 been of interest to economic researchers, the most recent trend in the
 literature is to estimate commodity trade flows between pairs of
 countries. This raises an important question: Does it matter which country
 reports the data? This study investigates 96 industries that are reported
 both as exports by the United States and as imports by South Korea. Since
 export data are FOB and import data are CIF, the Korean imports are
 expectedly larger than the US exports. Correspondingly, our cointegration
 analysis produces drastically different results between specifications.
 Nonparametric analysis shows that the Korean imports are more sensitive to
 real exchange-rate fluctuations than US exports, signifying the importance
 of cost of insurance and freight, as well as the data's conversion into
 dollars.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 1183-1213 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2011.651154 
File-URL: http://hdl.handle.net/10.1080/09638199.2011.651154 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ujjaini Mukhopadhyay 
Author-X-Name-First: Ujjaini 
Author-X-Name-Last: Mukhopadhyay 
Author-Name: Sarbajit Chaudhuri 
Author-X-Name-First: Sarbajit 
Author-X-Name-Last: Chaudhuri 
Title: Economic liberalisation, gender wage inequality and welfare 
Abstract:
	      The article develops a 3-sector general equilibrium model
 appropriate for economies with female labour oriented export sector to
 examine the effects of economic liberalisation policies on gender based
 wage inequality. It is assumed that there exist disparities in
 efficiencies between male and female labour due to skewed access to
 education and health, and differences in their spending patterns leading
 to differential effects of respective wages on their nutrition. The
 results indicate that tariff cut may reduce gender wage inequality, but
 may have detrimental effects on welfare; while foreign capital inflow may
 accentuate the inequality, despite improving the welfare of the economy.
 However, government policies to increase the provision of education and
 health have favourable effects on gender wage inequality but may be
 welfare deteriorating. Thus, the article provides a theoretical
 explanation to empirical evidences of diverse effects of liberalisation on
 gender wage inequality and explains the possibility of a trade-off between
 gender inequality and social welfare.		
Journal: The Journal of International Trade & Economic Development 
Pages: 1214-1239 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2012.654400 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.654400 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hui Huang 
Author-X-Name-First: Chia-Hui 
Author-X-Name-Last: Huang 
Author-Name: Tony Chieh-Tse Hou 
Author-X-Name-First: Tony Chieh-Tse 
Author-X-Name-Last: Hou 
Author-Name: Chih-Hai Yang 
Author-X-Name-First: Chih-Hai 
Author-X-Name-Last: Yang 
Title: FDI modes and parent firms' productivity in emerging economies:Evidence from Taiwan 
Abstract:
	      This article investigates the effect of foreign direct
 investment (FDI) on the productivity of parent firms for multinational
 enterprises in Taiwan. The current research specifically examines the
 potential differences in productivity effect between FDI toward developing
 (vertical FDI) and developed countries (horizontal FDI) and between
 electronics and non-electronics firms. Using panel data on Taiwan firms
 from 2000 to 2005, results obtained using propensity score matching (PSM)
 show thatmultinational firms experience a higher productivity following
 their FDI in developing countries. A time lag exists in productivity gain
 of investment to developed countries, and is relevant only to electronics
 firms. Employing the generalized method of moment of the panel fixed model
 to control for problems of endogeneity and unobservable heterogeneity, the
 empirical finding suggests that productivity effect caused by investing in
 developing countries remains significantly positive. A lagged
 productivity-enhancing effect is also found after FDI in developed
 countries for both electronics and non electronics firms.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 1240-1268 
Issue: 8 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638199.2012.654401 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.654401 
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Template-Type: ReDIF-Article 1.0
Author-Name: Neil Foster 
Author-X-Name-First: Neil 
Author-X-Name-Last: Foster 
Title: Intellectual property rights and the margins of international trade 
Abstract:
	      Economic theory indicates some ambiguity in the relationship
 between intellectual property rights (IPRs) and trade. Here, we extend the
 empirical literature that attempts to resolve this ambiguity by examining
 how IPRs affect trade along both the intensive - increasing volume of
 existing goods - and extensive - increasing variety of goods - margins
 oftrade. Our main results suggest that IPRs have a positive impact on
 imports, which is driven by a positive effect on the extensive margin and
 a negative impact on the intensive margin. Splitting countries according
 to their level of development, market size and imitative ability, we find
 that the positive impact of IPRs is strongest in less-developed countries,
 as well as larger countries and those with a higher degree of imitative
 ability.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 1-30 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.664556 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.664556 
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Template-Type: ReDIF-Article 1.0
Author-Name: Priya Brata Dutta 
Author-X-Name-First: Priya Brata 
Author-X-Name-Last: Dutta 
Title: Skilled-unskilled wage inequality, product variety and unemployment: A static general equilibrium analysis 
Abstract:
	      The paper develops a three-sector small open economy model
 with two traded final good sectors and a nontraded good sector producing
 varieties of intermediate goods. There are three primary factors: capital,
 skilled labour and unskilled labour. Industrial sector producing a
 tradedgood uses capital, intermediate goods and skilled labour as inputs.
 Intermediate goods producing sector also uses capital and skilled labour.
 The efficiency wage hypothesis is introduced to explain unemployment in
 each of these two labour markets. It is shown that an increase in either
 type of labour endowment (capital endowment) raises (lowers) the
 unemployment rate of either type of labour if the scale elasticity of
 output is very low. On the other hand, if the industrial sector is more
 capital intensive than the agricultural sector and if efficiency functions
 of both types of labour are identical, then an increase in either type of
 labour endowment (capital endowment) lowers(raises) the skilled-unskilled
 wage ratio. However, the effect of a change in capital endowment on the
 Gini Coefficient of wage income distribution is ambiguous in sign.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 31-55 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.665469 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.665469 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:1:p:31-55




Template-Type: ReDIF-Article 1.0
Author-Name: Scott W. Hegerty 
Author-X-Name-First: Scott W. 
Author-X-Name-Last: Hegerty 
Title: Exchange market pressure, commodity prices, and contagion in Latin America 
Abstract:
	      Over the past two decades, Latin American currencies have
 faced not only pressure to devalue but also periods of uncomfortable
 appreciation. Domestic macroeconomic factors, as well as global events and
 contagion, might bear part of the responsibility. This study constructs a
 monthly index of exchange market pressure (EMP) for four Latin American
 countries before using vector autoregressive methods to test the influence
 of commodity prices, macroeconomic variables, and external factors on each
 country's index. While inflation is an important determinant of EMP, we
 conclude that Chile and Peru are more likely than Mexico and Brazil to
 face pressure when commodity prices fall. This supports the idea that
 these two countries have "commodity currencies" and that their exchange
 markets are most vulnerable to international contagion.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 56-77 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.679292 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.679292 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:23:y:2014:i:1:p:56-77




Template-Type: ReDIF-Article 1.0
Author-Name: David Guerreiro 
Author-X-Name-First: David 
Author-X-Name-Last: Guerreiro 
Title: On the impact of US subsidies on world cotton prices: A meta-analysis approach 
Abstract:
	      Despite the literature dealing with the impact of subsidies
 on world cotton prices, there is no consensus regarding the quantification
 of these effects. The aim of this article is to contribute to this
 literature through the implementation of a meta-regression analysis. This
 methodology allows us to: (i) identify the main sources of heterogeneity
 between the primary studies, (ii) give some tracks to improve the
 modeling, (iii) provide a reliable effect of the removal of subsidies on
 world cotton prices. Relying on the estimation of various models to derive
 robust results, our findings show that a withdrawal of US subsidies would
 increase the world cotton price by around 11% on average.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 78-96 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.667143 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.667143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:23:y:2014:i:1:p:78-96




Template-Type: ReDIF-Article 1.0
Author-Name: Halis Murat Yildiz 
Author-X-Name-First: Halis Murat 
Author-X-Name-Last: Yildiz 
Title: Hub and spoke trade agreements under oligopoly with asymmetric costs 
Abstract:
	      Using an oligopoly model of trade with asymmetric costs, we
 study the individual and world welfare implications of a hub and spoke
 trade agreement where the hub country is more efficient than spoke
 countries. Under a hub and spoke trade regime, the hub country can benefit
 at the expense of the spokes relative to free trade. Furthermore, if the
 hub is sufficiently efficient compared to the spokes, such a regime can
 yield higher global welfare than free trade. Preferential treatment of the
 efficient hub country in its export markets improves world welfare because
 it helps allocate a larger share of the world's output to a low cost
 location.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 97-110 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.665470 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.665470 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:1:p:97-110




Template-Type: ReDIF-Article 1.0
Author-Name: Serge Shikher 
Author-X-Name-First: Serge 
Author-X-Name-Last: Shikher 
Title: International production, technology diffusion, and trade 
Abstract:
	      The paper develops a general equilibrium model of
 international production and trade. Technology is carried across borders
 by multinational producers and the set of technologies being used in a
 particular country is endogenous. Production locations are chosen based on
 the costs of production and getting the product to market. A producer may
 manufacture its product in its home country, target market country, or a
 third country. Estimated model parameters describe the states of
 technology in different countries, barriers to international investment,
 and trade costs. It is found that the barriers to international trade and
 investment are highly correlated. The model is used to measure the extent
 of technology diffusion across countries, study the relationship between
 international production and trade, investigate the effects of free-trade
 agreements (FTAs) on offshoring, and to quantify the welfare effects of
 international production and trade.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 111-154 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 2 
X-DOI: 10.1080/09638199.2012.667142 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.667142 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:1:p:111-154




Template-Type: ReDIF-Article 1.0
Author-Name: Costas Hadjiyiannis 
Author-X-Name-First: Costas 
Author-X-Name-Last: Hadjiyiannis 
Author-Name: Panos Hatzipanayotou 
Author-X-Name-First: Panos 
Author-X-Name-Last: Hatzipanayotou 
Author-Name: Michael S. Michael 
Author-X-Name-First: Michael S. 
Author-X-Name-Last: Michael 
Title: Cross-border pollution, public pollution abatement and capital tax competition 
Abstract:
	      We analyze the case where governments have to use income tax
 revenue to finance public pollution abatement and relate the results to
 the existing literature on capital tax competition. We show that the
 impact of public pollution abatement on Nash taxes on mobile factor income
 is non-trivial and the standard results from the tax competition
 literature can be reversed. When the two countries are identical, the Nash
 equilibrium capital income taxes converge to the tax on immobile factors
 income as the degree of cross-border pollution converges to one. When
 countries are asymmetric and pollution is local the presence of public
 pollution abatement lowers the capital tax for the capital exporting
 country, while the impact on the capital tax of the capital importing
 country is ambiguous.		
Journal: The Journal of International Trade & Economic Development 
Pages: 155-178 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.693128 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.693128 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:155-178




Template-Type: ReDIF-Article 1.0
Author-Name: Gianluca Orefice 
Author-X-Name-First: Gianluca 
Author-X-Name-Last: Orefice 
Title: Offshoring, migrants and native workers: The optimal choice under asymmetric information 
Abstract:
	      This paper presents a theoretical model of the optimal choice
 for firms between offshoring and hiring immigrant workers, in conditions
 of asymmetric information about their ability and effort in production
 (symmetric information is assumed for home born workers). When a domestic
 firm hires an immigrant it has no knowledge of the worker's ability; when
 the firm goes abroad it uses local agents to obtain additional information
 about workers, allowing enforceable contracts. I show that it is optimal
 for firms to produce low quality products by offshoring production abroad
 and that high quality products will be produced using native workers,
 while intermediate quality level products are more likely to be produced
 at home using foreign born workers.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 179-201 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.715669 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.715669 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:179-201




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Marti 
Author-X-Name-First: Luisa 
Author-X-Name-Last: Marti 
Author-Name: Rosa Puertas 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Puertas 
Author-Name: Leandro Garc&#xed;a 
Author-X-Name-First: Leandro 
Author-X-Name-Last: Garc&#xed;a 
Title: Relevance of trade facilitation in emerging countries' exports 
Abstract:
	      The objective of this article is to analyse trade flows in
 emerging nations with a maritime boundary, where trade facilitation plays
 a decisive role in their international development. In order to detect
 possible patterns in performance, we apply the economic approach of
 gravity models using the World Bank Logistic Performance Index (LPI) as a
 good proxy of trade facilitation. The results of the estimation lead to
 the conclusion that the more complex the transportation of goods is, the
 more influential the logistics indicator, trade facilitation being most
 prominent in Middle East exporters.	      
Journal: The Journal of International Trade & Economic Development 
Pages: 202-222 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.698639 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.698639 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:202-222




Template-Type: ReDIF-Article 1.0
Author-Name: Cesar M. Rodriguez 
Author-X-Name-First: Cesar M. 
Author-X-Name-Last: Rodriguez 
Title: Financial development, fiscal policy and volatility: Their effects on growth 
Abstract:
	      This paper analyzes how fiscal policies and credit
 constraints can affect the impact of macroeconomic volatility on long-run
 growth. The model by Aghion et al. (2005) is extended by allowing for
 governmental fiscal policy over the business cycle. The analysis shows
 that in an economy facing credit constraints, an increase in volatility
 will result in lower mean growth, and all the more the less financially
 developed and the more procyclical the fiscal policy is. The main
 implication is that in countries with lower degrees of financial
 development, countercyclical fiscal policies are particularly important in
 reducing the negative consequences of adverse aggregate shocks on firms'
 long-run investments. An empirical analysis is finally conducted using
 different groups of countries that confirm the theoretical predictions.    
Journal: The Journal of International Trade & Economic Development 
Pages: 223-266 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.711014 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.711014 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:223-266




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Cabo 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Cabo 
Author-Name: Guiomar Mart&#xed;n-Herr&#xe1;n 
Author-X-Name-First: Guiomar 
Author-X-Name-Last: Mart&#xed;n-Herr&#xe1;n 
Author-Name: Mar&#xed;a Pilar Mart&#xed;n-Herr&#xe1;n 
Author-X-Name-First: Mar&#xed;a Pilar 
Author-X-Name-Last: Mart&#xed;n-Herr&#xe1;n 
Title: Can sustained growth be attained through trading exhaustible resources for foreign research? 
Abstract:
	      We analyze the existence and the stability of a sustained
 balanced growth equilibrium (SBE) in a model of two non-homogeneous
 trading economies. A technological leader country which sells patents of
 new intermediate products in exchange for an exhaustible resource
 extracted by a technological follower trade partner. Considering a
 growth-essential resource, the 'knife-edge' assumption of exactly constant
 returns to scale (CRS) to manmade inputs can be alleviated, and the scale
 effects associated with R&D-based growth models overcome. A fully
 endogenous SBE is proven to exist, although its stability turns out to be
 a 'knife-edge' possibility. The long-run equilibrium is saddle-path stable
 assuming CRS in manmade inputs. Conversely, considering increasing returns
 to scale together with a completely specialized two-country trade, the
 equilibrium could be reached only if the two economies initially guard a
 particular relation, described by a particular subset of the state space.  
Journal: The Journal of International Trade & Economic Development 
Pages: 267-298 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.742131 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.742131 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:267-298




Template-Type: ReDIF-Article 1.0
Author-Name: Jai-Young Choi 
Author-X-Name-First: Jai-Young 
Author-X-Name-Last: Choi 
Author-Name: Hamid Beladi 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Beladi 
Title: Internal and external gains from international outsourcing 
Abstract:
	      This article examines the implications of international
 outsourcing in the Heckscher-Ohlin model of general equilibrium by
 explicitly expounding the external effects to the outsourcing firms. With
 its focus paced on the labor-augmenting effect of outsourcing, it shows
 that (a) the standard result of welfare-enhancing outsourcing always holds
 in the absence of external effects, and (b) in the presence of external
 effects, however, (i) outsourcing may be welfare-reducing for the
 outsourcing country; (ii) the effects of outsourcing on sectoral outputs,
 employment and factor prices depend on factor-intensity ranking, and the
 signs and the relative magnitudes of the sectoral returns to scale.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 299-314 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 3 
X-DOI: 10.1080/09638199.2012.730545 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.730545 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:2:p:299-314




Template-Type: ReDIF-Article 1.0
Author-Name: Ourania Karakosta 
Author-X-Name-First: Ourania 
Author-X-Name-Last: Karakosta 
Author-Name: Nikos Tsakiris 
Author-X-Name-First: Nikos 
Author-X-Name-Last: Tsakiris 
Title: Can tariff and tax reforms deliver welfare improvements under imperfect competition? 
Abstract:
	      This paper using a trade model of imperfect competition and
 product differentiation, examines the welfare effects of two popular
 tariff-tax reforms: (i) a tariff cut combined with an equal increase in
 the consumption tax and (ii) a tariff cut combined with an increase in the
 consumption tax that leaves the consumer price of the imported good
 unchanged. It is shown that if tax revenues are lump-sum distributed and
 firms compete over prices, then coordinated tariff-tax reforms improve
 welfare for a low degree of product differentiation, whereas these reforms
 are welfare-reducing for any degree of product differentiation under
 Cournot competition. When, instead, revenues are used to finance the
 provision of public goods, then the total effect of these reforms on
 welfare depends, under plausible assumptions, on the strength of the
 consumer's valuation of the public good.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 315-328 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 4 
X-DOI: 10.1080/09638199.2012.717103 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.717103 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:3:p:315-328




Template-Type: ReDIF-Article 1.0
Author-Name: Jie He 
Author-X-Name-First: Jie 
Author-X-Name-Last: He 
Author-Name: Jingyan Fu 
Author-X-Name-First: Jingyan 
Author-X-Name-Last: Fu 
Title: Carbon leakage in China's manufacturing trade: An empirical analysis based on the carbon embodied in trade 
Abstract:
	      In this paper, we use a 16 manufacturing-sector
 single-country linked input-output model to calculate the balance of
 emissions (carbon) embodied in trade (BEET) and pollution terms of trade
 (PTT) for China's international trade with the entire world and with its
 principal trade partners (Japan, the US, and the European Union) for the
 period from 1996-2004. Our results confirm that China is a net carbon
 exporter, but also reveal that China's exports are relatively less
 polluting than China's imports: the big carbon surplus embodied in trade
 is due to China's large scale of exports and its high carbon emission
 intensity compared to its trade partners. In a second step, we directly
 study the determinants of the comparative advantage of China's
 international trade with the purpose of verifying whether the increase of
 the carbon burden in China is due to the transfer of the comparative
 advantage of the polluting sectors from Annex I countries to China,
 according to the hypothesis of 'carbon leakage'. Our analyses confirm that
 China's comparative advantages are more concentrated in the less
 polluting, labor-intensive sectors, although, dynamically speaking, this
 economy also experienced a tendency of comparative advantage increases in
 carbon-intensive sectors for its trade with European countries owing to
 their increase (decrease) of carbon intensity, but not for the trade with
 the carbon club countries such as the US and Japan. This finding seems to
 provide a first piece of supportive evidence for the existence of 'carbon
 leakage' phenomenon. Our conclusion also reveals that current
 international production division is organized with little consideration
 for the environmental performance of the producers in different countries;
 this organizational issue might be the principal reason for the current,
 often-observed BEET surplus in international trade of the non-Annex I
 country, while the transfer of a comparative advantage in the
 carbon-intensive sectors plays only a marginal role.	       
Journal: The Journal of International Trade & Economic Development 
Pages: 329-360 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 4 
X-DOI: 10.1080/09638199.2012.713389 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.713389 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:3:p:329-360




Template-Type: ReDIF-Article 1.0
Author-Name: Jingtao Yi 
Author-X-Name-First: Jingtao 
Author-X-Name-Last: Yi 
Title: Firm heterogeneity, sunk costs, spatial characteristics and export market participation: Evidence from China 
Abstract:
	      This paper develops a dynamic discrete-choice model to
 analyze the exporting decisions of Chinese firms in Zhejiang province. The
 results show that sunk costs are found to be significant and prior export
 experience, productivity, scale, FDI, export spillovers, coastal area and
 economic zones are all positively related with the propensity of exporting
 while state ownership concentration has a negative impact. The export
 behavior of firms varies with country-specific characteristics.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 361-386 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 4 
X-DOI: 10.1080/09638199.2012.719922 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.719922 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:3:p:361-386




Template-Type: ReDIF-Article 1.0
Author-Name: Judy Hsu 
Author-X-Name-First: Judy 
Author-X-Name-Last: Hsu 
Author-Name: Ya-Ping Chuang 
Author-X-Name-First: Ya-Ping 
Author-X-Name-Last: Chuang 
Title: International technology spillovers and innovation: Evidence from Taiwanese high-tech firms 
Abstract:
	      This paper uses Taiwanese high-tech firms' data from 2003 to
 2007 to investigate the impacts of international technology spillovers and
 firms' R&D activities on firms' innovation performance. We also consider
 absorptive capability and examine whether the technology spillovers have
 different effect on firms' innovation performance. We choose patent
 application counts to measure firms' innovation performance, and adopt
 panel Ordinary Least Squares (OLS) with fixed-effect and random-effect
 models as well as System Generalized Method of Moments (GMM) model to
 estimate. The empirical findings indicate the innovation performance of
 high-tech firms is positively affected by their R&D efforts, export
 performance, and the presences of multinational corporations. Furthermore,
 when absorptive capacity is taken into account, the technology spillovers
 by exporting and technology import would affect the innovation performance
 more.		
Journal: The Journal of International Trade & Economic Development 
Pages: 387-401 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 4 
X-DOI: 10.1080/09638199.2012.725755 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.725755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:23:y:2014:i:3:p:387-401




Template-Type: ReDIF-Article 1.0
Author-Name: Jacopo Zotti 
Author-X-Name-First: Jacopo 
Author-X-Name-Last: Zotti 
Author-Name: Bernd Lucke 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Lucke 
Title: Welfare-optimal trade and competition policies in small open oligopolistic economies 
Abstract:
	      Standard trade theory claims that free trade is
 welfare-enhancing. We show that this is not the case if at least one
 sector of the economy is a Cournot oligopoly. In a simple small open
 economy with one oligopolistic and one competitive sector, welfare is an
 inverted U-shaped function of tariffs. Hence, an optimal tariff rate can
 be determined. The optimal rate depends on the number of firms in the
 oligopolistic sector. Below the optimal level, the competitive sector
 overproduces, i.e. oligopolistic good have a higher marginal effect on
 welfare. Increasing tariff rates stimulate the production of the
 oligopolistic sector by dampening imports. Under balanced trade, this
 reduces exports and production in the competitive sector, thus shifting
 resources to oligopolistic goods production. We also find that given
 certain levels of protection, perfect competition is not welfare maximal
 and, hence, not desirable. The finding explains why developing economies
 with imperfect competition are often reluctant to embrace trade
 liberalization and why, conversely, countries with high levels of external
 protection may be unenthusiastic about competition theory.	     
Journal: The Journal of International Trade & Economic Development 
Pages: 402-423 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 4 
X-DOI: 10.1080/09638199.2012.742555 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.742555 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:3:p:402-423




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Richard Ag&#xe9;nor 
Author-X-Name-First: Pierre-Richard 
Author-X-Name-Last: Ag&#xe9;nor  
Author-Name: Kyriakos C. Neanidis 
Author-X-Name-First: Kyriakos C. 
Author-X-Name-Last: Neanidis 
Title: Optimal taxation and growth with public goods and costly enforcement 
Abstract:
	      This paper studies optimal direct and indirect taxation in an
 endogenous growth framework with a productive public good and costly tax
 collection. Optimal (growth-maximizing) tax rules are derived under
 exogenous collection costs. The optimal direct-indirect tax ratio is shown
 to be negatively related to the administrative costs of collecting these
 taxes, as documented in cross-country data. This result also holds under
 endogenous collection costs (with these costs inversely related to
 administrative spending on tax enforcement), but for these to generate
 significant effects on tax collection requires implausibly high degrees of
 efficiency in spending, or the allocation of a large fraction of resources
 to tax enforcement. Depending on how it is financed, the latter policy may
 entail adverse effects on growth. Improving 'tax culture' and the sense of
 civic duty through greater budgetary transparency may be a more effective
 policy to improve tax collection and promote economic growth.		
Journal: The Journal of International Trade & Economic Development 
Pages: 425-454 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2012.730055 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.730055 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:23:y:2014:i:4:p:425-454




Template-Type: ReDIF-Article 1.0
Author-Name: Mamta B. Chowdhury 
Author-X-Name-First: Mamta B. 
Author-X-Name-Last: Chowdhury 
Author-Name: Fazle Rabbi 
Author-X-Name-First: Fazle 
Author-X-Name-Last: Rabbi 
Title: Workers' remittances and Dutch Disease in Bangladesh 
Abstract:
	      Workers' remittance is one of the major sources of foreign
 exchange earnings for Bangladesh in recent years. It accounted for 12% of
 GDP in 2009 and has colossal socio-economic implications for the country.
 However, the inflows of foreign exchange earnings can exert adverse
 effects on the international competitiveness of an economy as postulated
 by the Dutch Disease theory. Using Johansen Cointegration and Vector Error
 Correction Model and annual data from 1971 to 2008, this paper
 investigates the effects of remittances on the external trade
 competitiveness as measured by the movements of real exchange rate of the
 country. The results of the study suggest that the influx of workers'
 remittances significantly appreciates the real exchange rate and
 deteriorates the external trade competitiveness of Bangladesh. While
 increased terms of trade indicates similar adverse effects, openness in
 goods and capital markets and nominal devaluation improve the trade
 competitiveness of the country. Therefore, greater trade openness and
 channelling remittances to the priority investment projects can be
 powerful policy devices to improve the external competitiveness and avert
 'Dutch Disease' in Bangladesh. 	 
Journal: The Journal of International Trade & Economic Development 
Pages: 455-475 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2012.738240 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.738240 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:4:p:455-475




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Imanak Sagynbekov 
Author-X-Name-First: Ken Imanak 
Author-X-Name-Last: Sagynbekov 
Title: A tale of six states: How similar are the Gulf Cooperation Council countries? 
Abstract:
	      This paper reports the convergence rates for the Gulf
 Cooperation Council (GCC) countries using a Bayesian shrinkage estimator.
 The estimated convergence rates using a panel dataset covering period from
 1972 to 2008 across six countries vary from 9% to 22% per year. The
 results of a Bayesian change point calculations indicate that following a
 dramatic change in the crude oil prices in 1985, the pattern of
 &sigma;-convergence reversed. Based on the estimated steady states for
 each country, the rank order is hypothesized to be a function of the
 percentage of foreign workers in the labor force.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 476-490 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2012.762587 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.762587 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:4:p:476-490




Template-Type: ReDIF-Article 1.0
Author-Name: Tran Lam Anh Duong 
Author-X-Name-First: Tran Lam Anh 
Author-X-Name-Last: Duong 
Title: Optimal infant industry protection during transition to World Trade Organization membership - A numerical analysis for the Vietnamese motorcycle industry 
Abstract:
	      This paper proposes a framework to derive the optimal dynamic
 path of tariffs to protect infant industries when a country initiates a
 process to join the World Trade Organization (WTO). The framework is based
 on the model of Melitz (2005) in which externalities associated with
 dynamic learning-by-doing provide a rationale for infant industry
 protection. Unlike the original model, this paper assumes that there is a
 time limit for protection: after a fixed number of years, tariffs are
 required to be constant over time at a low level. This setup reflects the
 nature of the actual WTO agreement. This model is solved analytically to
 derive quantitative implications for the optimal tariff path, unlike in
 Melitz (2005), where only qualitative analyses are undertaken. An
 interesting result emerges: conventional wisdom is that a country in this
 situation should reduce the tariff rate gradually over time so that it
 converges to its long-run rate at the terminal date of protection. By
 contrast, this paper finds that, in some plausible scenarios, the optimal
 time path of the tariff can be upward sloping. A numerical analysis
 applied to the Vietnamese motorcycle industry, a typical infant industry
 in a country joining the WTO, confirms such a pattern. 	 
Journal: The Journal of International Trade & Economic Development 
Pages: 491-510 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2012.751440 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.751440 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:4:p:491-510




Template-Type: ReDIF-Article 1.0
Author-Name: Yasukazu Ichino 
Author-X-Name-First: Yasukazu 
Author-X-Name-Last: Ichino 
Title: Parallel imports and piracy in a North-South model 
Abstract:
	      We consider welfare effects of parallel imports under a
 possibility of piracy, by constructing a model where a monopoly firm sells
 its product in a developed country and in a developing country. We show
 that parallel imports do not always make the firm worse off and consumers
 better off. Sometimes parallel imports benefit both the firm and
 consumers, irrespective of the existence of piracy. However, piracy makes
 parallel imports more preferable to consumers and less preferable to the
 firm. We also suggest that a developing country's policy on piracy can be
 internationally coordinated with a developed country's policy on parallel
 imports, so as to improve the welfare of these countries.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 511-539 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2012.746385 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.746385 
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Template-Type: ReDIF-Article 1.0
Author-Name: Grzegorz Pac 
Author-X-Name-First: Grzegorz 
Author-X-Name-Last: Pac 
Title: Foreign acquisition and post-privatization exit of state-owned firms 
Abstract:
	      This paper analyzes the impact of foreign and domestic
 ownership on the exit rates of privatized state-owned enterprises (SOEs)
 in transitional countries. The exit of privatized SOEs can have a profound
 impact on employment and on the development of local economies of
 transitional countries. An oligopoly model that incorporates country-level
 trade costs and individual SOE's productivity is developed to assess the
 exit of SOEs under either foreign or domestic ownership. The model shows
 that market competition between firms can lead to liquidation of the SOE
 by a domestic firm when trade costs increase. When the productivity of SOE
 is high, neither foreign nor domestic firm will liquidate. The predictions
 of the model are tested using firm-level privatization data from Central
 and Eastern Europe. By controlling for productivity, trade costs, and
 other attributes of SOEs after privatization, it is found that foreign
 ownership significantly reduces the probability of SOE's exit as compared
 to domestic ownership. Furthermore, there is evidence that as trade costs
 increase, the exit probability of domestically owned SOEs increases and
 the exit probability of foreign-owned SOEs declines.	       
Journal: The Journal of International Trade & Economic Development 
Pages: 540-577 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638199.2013.764919 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.764919 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:4:p:540-577




Template-Type: ReDIF-Article 1.0
Author-Name: Lin Chen 
Author-X-Name-First: Lin 
Author-X-Name-Last: Chen 
Author-Name: Changyuan Luo 
Author-X-Name-First: Changyuan 
Author-X-Name-Last: Luo 
Title: FDI, market signal and financing constraints of firms in China 
Abstract:
 On the basis of an augmented Euler equation, we use firm survey data
 provided by the World Bank to investigate the impact of FDI (foreign
 direct investment) on the financing constraints of firms in China. First
 we calculate the forward and backward linkages of FDI. Then through
 empirical estimation, we find that only private firms have financing
 constraints and that the incoming FDI alleviates this situation. Private
 firms with more foreign capital shares or having stronger vertical linkage
 with FDI can get financial resources easily. Furthermore, industries
 hosting a large amount of FDI are favorite clients of the financial
 institutions because they are usually much more competitive in the world.
 As a result, the private firms in these industries also have easier access
 to financial resources. In the financial market, FDI is a helping hand
 that reduces the information asymmetry between firms and financial
 institutions. Financial resources go where FDI goes, which to some extent
 improves the allocation efficiency.
Journal: The Journal of International Trade & Economic Development 
Pages: 579-599 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.836239 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.836239 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ziliang Deng 
Author-X-Name-First: Ziliang 
Author-X-Name-Last: Deng 
Author-Name: Lei Hou 
Author-X-Name-First: Lei 
Author-X-Name-Last: Hou 
Title: Financial underdevelopment, distorted lending and export market survival 
Abstract:
 This paper examines the impact of financial development on exporter
 survival in foreign markets with Chinese firm-level data over the period
 1998-2008. We measure financial development using the size, lending
 efficiency, term structure of bank loans and degree of state intervention
 in financial resource allocation, respectively. We find that a larger
 scale and greater efficiency of bank lending and less state intervention
 facilitate while the relative abundance of long-term credit deteriorates
 exporter survival. These effects are more pronounced for private exporters
 compared with state-owned exporters. For foreign-invested exporters,
 weakened state intervention is of relatively great importance. We
 attribute this disproportional impact to the government's intervention in
 funding investment and the distortional lending of banks, which varies
 across regions and industries with different levels of presence of
 state-owned enterprises.
Journal: The Journal of International Trade & Economic Development 
Pages: 600-625 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8  
X-DOI: 10.1080/09638199.2013.771696 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.771696 
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Template-Type: ReDIF-Article 1.0
Author-Name: Abdorreza Soleymani 
Author-X-Name-First: Abdorreza 
Author-X-Name-Last: Soleymani 
Author-Name: Soo Y. Chua 
Author-X-Name-First: Soo Y. 
Author-X-Name-Last: Chua 
Title: Effect of exchange rate volatility on industry trade flows between Malaysia and China 
Abstract:
 This paper investigates the impact of ringgit/yuan volatility on Malaysian
 trade with her largest trading partner, China. The short- and long-run
 impacts are estimated using bounds testing approach to cointegration
 analysis and disaggregated bilateral trade data by industry over the
 period of 1985-2010. Specifically, we considered a total of 151 importing
 and 24 exporting industries in Malaysia that traded with China. Our
 finding indicates that cointegration existed in 94 Malaysian import
 industry models and 16 Malaysian export industry models. Among these
 cases, exchange rate volatility has short-run effects on majority of the
 models. However, the short-run effects shift into the long-run effects in
 46 out of 69 industries in import models and 5 out of 10 industries in
 export models. Results indicate that the exchange rate uncertainty has
 positive effects on majority of these industries.
Journal: The Journal of International Trade & Economic Development 
Pages: 626-655 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.803146 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.803146 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:5:p:626-655




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Tovar 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Tovar 
Title: External tariffs under a free-trade area 
Abstract:
 How do free-trade areas affect the tariffs that member countries impose
 against non-members? There is no consensus in the literature regarding
 this important question. In this study, we use a political-economy model
 of endogenous protection to show that if individual preferences exhibit
 loss aversion or if the government's objective is characterized by
 diminishing marginal political support, a free-trade area can lead member
 countries to increase their external tariffs and thus act as a stumbling
 block to unilateral liberalization. We also argue that the stumbling block
 result is more likely to arise under loss aversion than under diminishing
 marginal political support and confirm this using a simulation. Finally,
 we show that the stumbling block effect can also take place under
 multilateral liberalization. Our results highlight a new type of mechanism
 through which preferential trade agreements may affect external tariffs.
Journal: The Journal of International Trade & Economic Development 
Pages: 656-681 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.764920 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.764920 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:5:p:656-681




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaj Malchow-m&#xf8;ller
Author-X-Name-First: Nikolaj 
Author-X-Name-Last: Malchow-m&#xf8;ller 
Author-Name: Jan Rose Skaksen 
Author-X-Name-First: Jan Rose 
Author-X-Name-Last: Skaksen 
Title: The welfare effects of business-cycle-induced immigration 
Abstract:
 Despite the fact that migration flows have always been closely related to
 business cycles, the effects of immigration are typically analysed in
 models without economic fluctuations. In this paper, we find that the
 welfare consequences of business-cycle-induced immigration are very
 different from the consequences of permanent immigration in a static
 economy. Specifically, the welfare effects depend crucially on (1) the
 return rate of immigrants in downturns and (2) the costs of recruiting
 immigrants. This has important consequences for the optimal design of
 temporary immigration programmes to deal with labour shortages.
Journal: The Journal of International Trade & Economic Development 
Pages: 682-709 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.797008 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.797008 
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Template-Type: ReDIF-Article 1.0
Author-Name: T. Fern&#xe1;ndez-n&uacute;&#xf1;ez 
Author-X-Name-First: T. 
Author-X-Name-Last: Fern&#xe1;ndez-n&uacute;&#xf1;ez 
Author-Name: M.A. M&#xe1;rquez 
Author-X-Name-First: M.A. 
Author-X-Name-Last: M&#xe1;rquez 
Title: The dynamics of trade composition: Do trade-type interdependencies matter? 
Abstract:
 This paper explores the changes of trade composition in the Food Products,
 Beverages & Tobacco industry in the European Union (12 countries) from
 1985 to 2007, using an empirical modeling framework based on the
 statistical support proposed by M&#xe1;rquez et al. The contribution of this
 study is mainly empirical. On the one hand, we investigate whether the
 interdependencies (complementary or substitutable) between trade types are
 significant and hence if they are able to affect trade composition. And on
 the other, we provide a ranking of the dynamic drivers of trade
 composition (such as market size, endowments, technology, and consumer
 tastes and preferences). The econometric analysis reveals evidence of
 significant interdependencies between some trade components. The results
 point to technological capital and market size as the most important
 drivers of Food Products, Beverages & Tobacco in European trade, and
 suggest some relevant economic policy recommendations to foster industries
 in the sector and positively influence its pattern of trade.
Journal: The Journal of International Trade & Economic Development 
Pages: 710-734 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.778897 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.778897 
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Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Donoso 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Donoso 
Author-Name: Victor Martin 
Author-X-Name-First: Victor 
Author-X-Name-Last: Martin 
Title: Current account sustainability in Latin America 
Abstract:
 This paper examines the sustainability of the current account deficit in
 eighteen Latin American countries through the analysis of the stationarity
 properties of the current account balance. First, we apply traditional
 unit root tests and consider the possibility of structural breaks. Second,
 since the current account may have a nonlinear behaviour, we test for
 linearity in the data and analyse current account stationarity by means of
 a recently developed nonlinear unit root test. Results from linear and
 nonlinear unit root tests show that current account sustainability is
 supported for the majority of Latin American countries with the exception
 of Argentina, Brazil, Chile and Paraguay. For the Dominican Republic,
 Honduras, Mexico, Panama, Peru, Uruguay and Venezuela the current account
 dynamics are best described by a stationary linear model, and by a
 stationary linear model with a mean shift in years 2003, 1982 and 1980 in
 Bolivia, Costa Rica and Nicaragua, respectively. In the case of Colombia,
 Ecuador, El Salvador and Guatemala, results show that the current account
 is best described by a mean-reverting nonlinear process.
Journal: The Journal of International Trade & Economic Development 
Pages: 735-753 
Issue: 5 
Volume: 23 
Year: 2014 
Month: 8 
X-DOI: 10.1080/09638199.2013.775322 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.775322 
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Template-Type: ReDIF-Article 1.0
Author-Name: Weichun Chen 
Author-X-Name-First: Weichun 
Author-X-Name-Last: Chen 
Author-Name: Judith A. Clarke 
Author-X-Name-First: Judith A. 
Author-X-Name-Last: Clarke 
Author-Name: Nilanjana Roy 
Author-X-Name-First: Nilanjana 
Author-X-Name-Last: Roy 
Title: Health and wealth: Short panel Granger causality tests for developing countries 
Abstract:
	      The world has experienced impressive improvements in wealth
 and health, with, for instance, the world's real GDP per capita having
 increased by 180% from 1970 to 2007 accompanied by a 50% decline in infant
 mortality rate. Healthier and wealthier. Pl Are health gains arising from
 wealth growth? Or, has a healthier population enabled substantial growth
 in wealth? We contribute to understanding the dynamic links between wealth
 and health by examining for causal, rather than associative, links between
 health (as measured by infant mortality rate) and wealth (as measured by
 GDP per capita) for a panel of 58 developing countries using quinquennial
 data covering the period 1960-2005. Estimating as a panel allows us to
 account for unobserved heterogeneity, as well as permitting heterogeneous
 causal effects. We test for panel and country-specific noncausality, and
 we explore robustness of outcomes to level of economic development (as
 measured by national income), whether we account for bias in least squares
 estimators, and to our heterogeneity assumption on the causal
 coefficients. Overall, our panel tests detect bidirectional links between
 wealth and health, compatible with other research. However, our
 country-specific work suggests that the panel results arise from the
 dominance of a few countries, as there is evidence of noncausality between
 health and wealth for a majority of countries. These findings contrast
 with earlier research, and likely arise from different metrics being used
 to measure the health of a nation. Our work highlights the usefulness of
 panel causality tests accompanied by unit specific analysis and the
 importance of examining different metrics for health.		
Journal: The Journal of International Trade & Economic Development 
Pages: 755-784 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.783093 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.783093 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Fujiwara 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Fujiwara 
Author-Name: Ryoma Kitamura 
Author-X-Name-First: Ryoma 
Author-X-Name-Last: Kitamura 
Title: A trade and domestic tax reform in imperfectly competitive markets 
Abstract:
	      This paper develops a model of an export oligopoly to examine
 the welfare effects of an export tax reduction and a production tax
 increase that makes the foreign country no-worse off. Whether or not entry
 into the oligopolistic industry is free, the proposed policy reform is
 shown to reduce welfare of the policy-implementing country and the world.
 Relating this result to the perfectly competitive case, we closely discuss
 its implications.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 785-795 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.804583 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.804583 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:6:p:785-795




Template-Type: ReDIF-Article 1.0
Author-Name: Shinya Kawahara 
Author-X-Name-First: Shinya 
Author-X-Name-Last: Kawahara 
Title: Welfare and market-access effects of piecemeal tariff reforms on environmentally preferable products 
Abstract:
	      We examine how welfare and market access are affected by
 piecemeal tariff reforms on environmentally preferable products (EPP) in a
 small open economy. We define EPP as clean goods that, when consumed, have
 no impact on pollution. First, we show that a uniform reduction of all
 tariffs improves welfare if a country's imports consist only of clean
 goods. If a clean good is a net substitute for all other goods in excess
 demand, then reducing the highest tariff on the clean good improves
 welfare. Second, we show that a proportional tariff reduction leading to a
 welfare improvement also increases the value of imports if all tariffs are
 set at the same <italic>ad valorem</italic> rates. If the clean good is a
 net substitute for all other goods in excess demand, then reducing the
 lowest tariff on the clean good increases the value of imports. Finally,
 we explore the link between the change in welfare and the change in the
 value of imports in response to the tariff reforms, and we show that
 unlike a proportional tariff reduction, a tariff reduction on the clean
 good does not necessarily lead to improvements in both welfare and market
 access.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 796-814 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.781206 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.781206 
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Handle: RePEc:taf:jitecd:v:23:y:2014:i:6:p:796-814




Template-Type: ReDIF-Article 1.0
Author-Name: Sean J. Gossel 
Author-X-Name-First: Sean J. 
Author-X-Name-Last: Gossel 
Author-Name: Nicholas Biekpe 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Biekpe 
Title: Economic growth, trade and capital flows: A causal analysis of post-liberalised South Africa 
Abstract:
	      Development Finance and EconometricsThis paper investigates
 the causal relationships between trade, capital inflows and economic
 growth in post-liberalised South Africa over the period from 1995 to 2011.
 The results show that economic growth in South Africa is driven primarily
 by trade and fixed investment rather than by capital inflows. However, the
 relationship between economic growth and imports is bidirectional, and
 thus economic growth in South Africa is associated to a greater extent
 with the export-led growth hypothesis than the import-led growth
 hypothesis. In addition, the results find in favour of growth-led FDI
 rather than FDI-led growth, and that portfolio inflows rather than FDI are
 integrated into the country's trade-led growth dynamics.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 815-836 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.786118 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.786118 
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Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chen Lin 
Author-X-Name-First: Yi-Chen 
Author-X-Name-Last: Lin 
Author-Name: Li-Chih Chiang 
Author-X-Name-First: Li-Chih 
Author-X-Name-Last: Chiang 
Title: Efficiency and productivity comparisons between outsourcers and non-outsourcers: Evidence from a metafrontier production function with endogenous switching 
Abstract:
	      This paper aims to compare productivity and technical
 efficiency (TE) between outsourcers and non-outsourcers with an empirical
 methodology that accounts for both heterogeneous production technologies
 and non-random sample separation. Using plant-level data on six two-digit
 manufacturing industries in Taiwan over the period 2002-2005, the
 endogenous switching regression and the stochastic metafrontier
 methodology enable us to generate TE scores that are comparable across
 production units that operate under different technologies without the
 standard assumption in the literature that the outsourcing status is out
 of the control of the plant and that outsourcers and non-outsourcers use
 the same technology. We find that outsourcers are, on average, more
 technically efficient and technologically advanced than non-outsourcers.
 Productivity differences account for the lion's share of the
 outsourcer-non-outsourcer output gap.		
Journal: The Journal of International Trade & Economic Development 
Pages: 837-861 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.790474 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.790474 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Posso 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Posso 
Author-Name: Aaron Soans 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Soans 
Title: The rise of the machines: Capital imports and real manufacturing wages in 57 nations 
Abstract:
	      Outward-oriented policy reform has attracted a large number
 of academics to the study of the trade-labour market nexus. One of these
 fields has focused on capital intensive (machinery) imports and its effect
 on manufacturing wages. The skill-enhancing-trade (SET) hypothesis was put
 forth to explain a potential relationship where an inflow of capital
 imports results in increased demand for skilled labour and decreased that
 of unskilled labour, and thus resulted in a rise in skilled wages and a
 decrease in their unskilled counterparts. This study revisits this
 hypothesis with a panel from the manufacturing sector of 57 nations. We
 improve upon previous studies in a number of ways. We add developed
 nations to the sample and examine capital imports from rich countries as
 well as the rest of the world. This takes into account the prominence of
 vertical production networks in international trade. We adhere closely to
 the neo-classical trade model and employ definitions of skilled and
 unskilled workers that capture the production process of particular items.
 Finally, we fit a robust dynamic panel data model that accounts for the
 endogeneity of the determinants of trade and wages. In this way we test
 whether the SET hypothesis is generally applicable as opposed to previous
 studies which use an ad hoc selection of countries and variables. We find
 that the SET hypothesis is not driving changes in manufacturing wages.
 Instead, worker productivity and GDP per capita explain these labour
 market outcomes.	   
Journal: The Journal of International Trade & Economic Development 
Pages: 862-877 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2013.788201 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.788201 
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Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Author-Name: Pedro Neves 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Neves 
Author-Name: Maria Thompson 
Author-X-Name-First: Maria 
Author-X-Name-Last: Thompson 
Title: The skill premium and economic growth with costly investment, complementarities and international technological-knowledge diffusion 
Abstract:
	      We analyse the skill premium and the growth rate in an
 innovator-imitator general equilibrium growth model assuming (i) internal
 costly investment in both physical capital and R&D, (ii) complementarities
 between intermediate goods in production and (iii) technological-knowledge
 diffusion. We find that in the imitator country these three elements
 influence the economic growth rate and the skill premium. In the innovator
 country, while the growth rate is affected by costly investment and
 complementarities, the skill premium is not affected by any of our
 assumptions. It depends solely on the productive advantage of high-skilled
 over low-skilled labour, which suggests that the sustained increase in the
 skill premium observed in several developed countries over the last three
 decades may have been due to increases in such productive advantage.	    
Journal: The Journal of International Trade & Economic Development 
Pages: 878-905 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2010.544395 
File-URL: http://hdl.handle.net/10.1080/09638199.2010.544395 
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Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Kawabata 
Author-X-Name-First: Yasushi 
Author-X-Name-Last: Kawabata 
Title: The effects of cross-regional free trade agreements under a vertical industry structure 
Abstract:
	      This paper examines the effects of a cross-regional free
 trade agreement (FTA) on tariffs, welfare, and the incentives for
 multilateral free trade in a three-country model with a vertical industry
 structure. We show that the FTA induces member countries to reduce their
 tariffs on nonmember countries. On the other hand, a nonmember country
 lowers its tariff on final-good imports, but raises its tariff on
 intermediate-good imports. Also, the FTA makes member and nonmember
 countries better off. After the FTA is enacted, member and nonmember
 countries have an incentive to support multilateral free trade, so an FTA
 acts as a building block for multilateral trade liberalization.	  
Journal: The Journal of International Trade & Economic Development 
Pages: 906-922 
Issue: 6 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638199.2012.745587 
File-URL: http://hdl.handle.net/10.1080/09638199.2012.745587 
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Template-Type: ReDIF-Article 1.0
Author-Name: Woo-Yong Song 
Author-X-Name-First: Woo-Yong 
Author-X-Name-Last: Song 
Author-Name: Bongsuk Sung 
Author-X-Name-First: Bongsuk 
Author-X-Name-Last: Sung 
Title: Environmental regulations and the export performance of South Korean manufacturing industries: A dynamic panel approach 
Abstract:
				 This paper investigates the relationships
 among environmental regulation, export performance, and factor intensity,
 using panel data from South Korea's manufacturing sector (1991-2009). A
 panel vector autoregression (VAR) model in first differences tests the
 relationships among the variables, while considering the results of
 heterogeneous panel unit root and cointegration tests. Generalized Method
 of Moments (GMM) estimations help determine dynamic series relationships,
 and panel-causality tests are run based on the results of GMM estimations.
 There is evidence of a positive short-run linear causal relation running
 from environmental regulation to export performance, suggesting that
 environmental-protection expenditure may constitute a comparative
 advantage. The short-run linear causal relation from export performance to
 investment in activities related to environmental protection is
 insignificant. 			
Journal: The Journal of International Trade & Economic Development 
Pages: 923-945 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.786749 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.786749 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ousmanou Njikam 
Author-X-Name-First: Ousmanou 
Author-X-Name-Last: Njikam 
Title: Trade reform and firm-level labor demand in Cameroon 
Abstract:
				 This paper investigates the impact of
 trade (tariffs and import penetration) and foreign direct investment (FDI)
 on labor adjustment and labor-demand elasticities in Cameroonian
 manufacturing sector. Unlike previous studies, I distinguish the effect on
 different skill groups of employees. Using firm-level data pooled across
 sectors, I find that trade openness leads to faster adjustment of
 different labor inputs with a higher speed for unskilled workers. Tariff
 liberalization does not have any statistically significant effects on
 labor-demand elasticities. I find strong evidence for the impact of
 imports on skilled-labor-demand elasticity when I replace tariffs with
 import-penetration ratios. I also find strong evidence that FDI inflows
 strongly increase unskilled-labor-demand elasticity. The sector-level
 results do not alter the previous findings.			 
Journal: The Journal of International Trade & Economic Development 
Pages: 946-978 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.798679 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.798679 
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Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Saslavsky 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Saslavsky 
Author-Name: Ben Shepherd 
Author-X-Name-First: Ben 
Author-X-Name-Last: Shepherd 
Title: Facilitating international production networks: The role of trade logistics 
Abstract:
				 Networked trade in parts and components is
 more sensitive to the importer's logistics performance than is final goods
 trade. The difference between the two trade semi-elasticities is over 45%,
 which is quantitatively important. We also find that logistics performance
 is particularly important for trade among developing countries in the
 Asia-Pacific region, which is where the emergence of production networks
 has been most pronounced. Logistics performance is also more important for
 South-South trade than for South-North trade. Our results suggest that
 developing country policymakers can support the development of
 international production networks by improving trade logistics
 performance.			      
Journal: The Journal of International Trade & Economic Development 
Pages: 979-999 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.811534 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.811534 
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Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Lanzafame 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Lanzafame 
Title: Current account sustainability in advanced economies 
Abstract:
				 This paper investigates the sustainability
 of current accounts in advanced economies using a panel of 27 countries
 and annual data over the 1980-2008 period. Relying on various panel unit
 root tests and a sequential panel selection method, we find strong
 evidence in favour of nonlinear but stationary current account
 trajectories only for 7 countries, while the remaining 20 appear to be
 non-stationary and thus unsustainable. Our analysis indicates that careful
 empirical modelling of current account dynamics, particularly in relation
 to cross-section dependence and nonlinear behaviour, is crucial for
 appropriate economic policy-making.			   
Journal: The Journal of International Trade & Economic Development 
Pages: 1000-1017 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.821152 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.821152 
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Template-Type: ReDIF-Article 1.0
Author-Name: Giray Gozgor 
Author-X-Name-First: Giray 
Author-X-Name-Last: Gozgor 
Title: The impact of trade openness on the unemployment rate in G7 countries 
Abstract:
				 Recent and ongoing literature strongly
 implies the existence of a significant and robust impact of trade openness
 (liberalisation) and globalisation on unemployment, particularly in
 developed economies. This paper empirically investigates the impacts of
 four different measures of trade openness and globalisation on the
 unemployment rate in an unbalanced panel framework. The analysis focuses
 on the G7 countries: Canada, France, Germany, Italy, Japan, the United
 Kingdom (UK), and the United States (US). Robust empirical findings from
 panel data estimates demonstrate that, along with macroeconomic indicators
 and market size, all the measures of trade openness and globalisation are
 significantly and negatively associated with the unemployment rate.
 Therefore, we conclude that the continuation of the globalisation process
 instead of protectionism is of great importance in reducing the
 unemployment rate in developed economies.		    
Journal: The Journal of International Trade & Economic Development 
Pages: 1018-1037 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.827233 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.827233 
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Template-Type: ReDIF-Article 1.0
Author-Name: Liang-Chou Huang 
Author-X-Name-First: Liang-Chou 
Author-X-Name-Last: Huang 
Author-Name: Shu-Hwa Chang 
Author-X-Name-First: Shu-Hwa 
Author-X-Name-Last: Chang 
Title: Revisit the nexus of trade openness and GDP growth: Does the financial system matter? 
Abstract:
				 This study empirically investigates
 whether financial development is associated with a stronger or weaker
 trade openness-growth relationship. Both linear and nonlinear econometric
 models are used with panel data for 46 countries from 1983 to 2007. While
 the new growth theory holds that international trade may spur economic
 growth by facilitating the adoption of new technology and specialization,
 the evidence of this study suggests that, to take full advantage of the
 technology transfer induced by international trade, countries need to
 develop their financial systems, especially their stock markets. The
 empirical results indicate that in countries with higher stock market
 development more trade openness enhances economic growth, while in
 countries with less stock market development the ability of trade to
 facilitate growth is feeble.			 
Journal: The Journal of International Trade & Economic Development 
Pages: 1038-1058 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2013.830638 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.830638 
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Tokarick 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Tokarick 
Title: A method for calculating export supply and import demand&nbsp;elasticities 
Abstract:
				 Frequently in applied work, researchers
 need to utilize values for price elasticities of import demand and export
 supply. Unfortunately, econometric estimates of these elasticities are
 limited, perhaps due to the difficulties inherent in estimating them. This
 paper uses a methodology for estimating price elasticities of import
 demand and export supply for 87 countries without using econometrics
 directly.			   
Journal: The Journal of International Trade & Economic Development 
Pages: 1059-1087 
Issue: 7 
Volume: 23 
Year: 2014 
Month: 10 
X-DOI: 10.1080/09638199.2014.920403 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.920403 
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Template-Type: ReDIF-Article 1.0
Author-Name: Cesare Imbriani 
Author-X-Name-First: Cesare 
Author-X-Name-Last: Imbriani 
Author-Name: Piergiuseppe Morone 
Author-X-Name-First: Piergiuseppe 
Author-X-Name-Last: Morone 
Author-Name: Giuseppina Testa 
Author-X-Name-First: Giuseppina 
Author-X-Name-Last: Testa 
Title: Innovation, quality and exports: The case of Italian SMEs 
Abstract:
				 We test the hypothesis that innovating and
 targeting the upper-quality segment of markets increases Italian small and
 medium enterprises probability to export, providing empirical evidence
 that supports it. We observed a positive-quality effect and a strong
 impact of non-technological innovations over future exports. We also
 observed that larger and older firms operating in traditional sectors are
 more likely to export. The most interesting results came from the
 introduction of interaction terms. We found evidence of a 'super-additive
 effects', which delineate synergic linkages between product innovation
 activities and quality strategy.		     
Journal: The Journal of International Trade & Economic Development 
Pages: 1089-1111 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.831944 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.831944 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kristie Briggs 
Author-X-Name-First: Kristie 
Author-X-Name-Last: Briggs 
Author-Name: Walter G. Park 
Author-X-Name-First: Walter G. 
Author-X-Name-Last: Park 
Title: There will be exports and licensing: The effects of patent rights and innovation on firm sales 
Abstract:
				 Previous work has focused on how
 intellectual property rights affect inward technology transfer. This paper
 is among the first to study whether patent rights contribute to outward
 technology transfers. Patent protection can affect the ability of firms to
 be sources of technology through its effects on innovation and
 commercialization. Using micro data, this paper finds that patent rights
 and innovation are positively associated with the exporting and licensing
 of firms, controlling for other determinants of technological capacity,
 although the effect is not symmetric across firms in all countries. Patent
 rights have a strong impact on the export and licensing activities of
 firms in developed countries, and only on the licensing activities of
 firms in developing countries. Moreover, transfers of technology develop
 sequentially - namely, exporting before licensing - due to the differing
 sunk costs of each type of entry. The results have implications for how
 innovation policies and activities contribute to the outward orientation
 of firms.		      
Journal: The Journal of International Trade & Economic Development 
Pages: 1112-1144 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.843199 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.843199 
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobing Xing 
Author-X-Name-First: Xiaobing 
Author-X-Name-Last: Xing 
Author-Name: Jiexiang Xu 
Author-X-Name-First: Jiexiang 
Author-X-Name-Last: Xu 
Title: The saving rate and the upgrade of the trade commodity structure in developing countries: A dynamic H-O model under&nbsp;an&nbsp;oligopolistic market structure 
Abstract:
				 This paper constructs an oligopolistic
 dynamic Heckscher-Ohlin (H-O) model of a small open economy to analyze the
 relationship between the saving rate and the upgrade of the trade
 commodity structure. The analysis shows that the saving rate determines
 the trade commodity structure of a country in the long-run equilibrium.
 Furthermore, a developing country with a low capital-labor ratio in the
 initial state will change from exporting labor-intensive goods in the
 initial state to exporting capital-intensive goods in the long-run
 equilibrium if it has a higher saving rate, and this upgrade of trade
 commodity structure has a social welfare effect under an oligopolistic
 market structure. The effect of trade policy on the upgrade of the trade
 commodity structure is uncertain in our model; therefore, a high saving
 rate is the irreplaceable driving force for trade commodity structure
 upgrades in developing countries.			
Journal: The Journal of International Trade & Economic Development 
Pages: 1145-1169 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.853822 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.853822 
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Template-Type: ReDIF-Article 1.0
Author-Name: Piyush Chandra 
Author-X-Name-First: Piyush 
Author-X-Name-Last: Chandra 
Title: WTO subsidy rules and tariff liberalization: evidence from accession of China 
Abstract:
				 Countries increasingly rely on subsidies
 to assist their producers leading to concerns about their potential
 misuse. The WTO regulates its members' subsidies by defining subsidies
 that are permissible, as well as by providing means to retaliate against
 subsidies of partner countries if these subsidies hurt one's interest.
 However, these subsidy rules might have an unintended effect. As both
 subsidies and tariffs are substitute instruments of protection, tighter
 subsidy rules might lead to a decrease in the pace of tariff
 liberalization. In this paper, we present first empirical evidence in
 support of this prediction. Using China's accession to the WTO in 2001 as
 a case study, we show that China's accession to the WTO was associated
 with a relative increase in its tariffs for products that faced a higher
 threat of retaliation against subsidies. More importantly, we also show
 that increases in tariff were larger in products with higher potential
 costs imposed by retaliation. Finally, we include several robustness tests
 as well as conduct two counterfactual exercises to verify that the results
 we obtain are indeed due to perceived threat of retaliation against
 subsidies.			 
Journal: The Journal of International Trade & Economic Development 
Pages: 1170-1205 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.853317 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.853317 
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Template-Type: ReDIF-Article 1.0
Author-Name: Markus Leibrecht 
Author-X-Name-First: Markus 
Author-X-Name-Last: Leibrecht 
Author-Name: Aleksandra Riedl 
Author-X-Name-First: Aleksandra 
Author-X-Name-Last: Riedl 
Title: Modeling FDI based on a spatially augmented gravity model: Evidence for Central and Eastern European Countries 
Abstract:
				 Based on a spatially augmented gravity
 model, the current paper isolates spatial interrelationships in foreign
 direct investment (FDI) to Central and Eastern European Countries (CEECs)
 not only across the destination but also across the origin country
 dimension of FDI. Results show that (i) spatial interrelationships across
 destination countries are present and are consistent with the predominance
 of vertical-complex FDI in total FDI; (ii) spatial correlation across
 origin countries is given in earlier years of transition, while spillover
 and competition effects cancel over the whole sample period; and (iii)
 agglomeration forces gain in importance for FDI to CEECs.		    
Journal: The Journal of International Trade & Economic Development 
Pages: 1206-1237 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.861006 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.861006 
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Template-Type: ReDIF-Article 1.0
Author-Name: Binglin Gong 
Author-X-Name-First: Binglin 
Author-X-Name-Last: Gong 
Author-Name: Haiwen Zhou 
Author-X-Name-First: Haiwen 
Author-X-Name-Last: Zhou 
Title: Financial development, the choice of technology, and comparative advantage 
Abstract:
				 In this general equilibrium model, banks
 and manufacturing firms engage in oligopolistic competition. A more
 advanced manufacturing technology has a higher fixed cost but a lower
 marginal cost of production. We show that manufacturing firms located in a
 country with a more efficient financial sector choose more advanced
 technologies and this country has a comparative advantage in the
 production of manufactured goods. Even though the foreign country has a
 less developed financial sector than the home country, the opening up of
 trade with the foreign country leads domestic manufacturing firms to adopt
 more advanced technologies. An increase in the level of efficiency in the
 financial sector of one country causes manufacturing firms in both
 countries to adopt more advanced technologies. 		     
Journal: The Journal of International Trade & Economic Development 
Pages: 1238-1261 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.868023 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.868023 
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Template-Type: ReDIF-Article 1.0
Author-Name: Keigo Nishida 
Author-X-Name-First: Keigo 
Author-X-Name-Last: Nishida 
Title: Agricultural productivity differences and credit market imperfections 
Abstract:
				 This paper presents a simple model to
 examine the implication of credit market imperfections when considering
 the huge variation of agricultural labor productivity across countries.
 The development of credit markets enables more agents to acquire skills to
 work in non-agricultural sectors. The expansion of the sectors decreases
 the labor supply to agriculture as well as increases the supply of modern
 intermediate inputs to agriculture. Agricultural producers accordingly
 substitute the relatively cheap intermediate inputs for labor to produce a
 given level of an agricultural good, and, thereby, the output per worker
 in agriculture is improved. Poor countries with less developed credit
 markets are, therefore, far less productive in agriculture than rich
 countries with well-developed credit markets.			       
Journal: The Journal of International Trade & Economic Development 
Pages: 1262-1276 
Issue: 8 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638199.2013.812135 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.812135 
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Template-Type: ReDIF-Article 1.0
Author-Name: Paola Cardamone 
Author-X-Name-First: Paola 
Author-X-Name-Last: Cardamone 
Author-Name: Margherita Scoppola 
Author-X-Name-First: Margherita 
Author-X-Name-Last: Scoppola 
Title: Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model 
Abstract:
 According to the models of the multinational enterprise tariffs play a
 fundamental role in determining the pattern of foreign direct investment
 (FDI). The aim of this paper is to assess the impact of tariffs on the
 outward stocks of FDI of the European Union (EU). We estimate a model
 based on the knowledge-capital theory of the multinational enterprise over
 the period 1995-2008 by using a sample of five EU countries and 24 partner
 countries. We consider, first, manufacturing sector as a whole and, then,
 six manufacturing industries defined at the two-digit level of the
 <italic>Nomenclature statistique des activit&#xe9;s &#xe9;conomiques dans la
 Communaut&#xe9; europ&#xe9;enne</italic> (NACE) classification. Explanatory
 variables include an index of applied bilateral tariffs and a dummy to
 capture the presence of bilateral investment treaties (BITs). A dynamic
 panel model is estimated through the generalized method of moments
 estimator, taking also into account the endogeneity of regressors. The
 results show that the pattern of EU outward FDI is a mix of vertical and
 horizontal FDI. BITs in force have a significant and positive impact on
 the outward FDI. The impact of tariffs varies across industries and
 countries, suggesting the predominance of horizontal FDI in some
 industries, and the existence of vertical FDI in others.
Journal: The Journal of International Trade & Economic Development 
Pages: 1-23 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2013.871742 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.871742 
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Template-Type: ReDIF-Article 1.0
Author-Name: Po-Chin Wu 
Author-X-Name-First: Po-Chin 
Author-X-Name-Last: Wu 
Author-Name: Shiao-Yen Liu 
Author-X-Name-First: Shiao-Yen 
Author-X-Name-Last: Liu 
Author-Name: Sheng-Chieh Pan 
Author-X-Name-First: Sheng-Chieh 
Author-X-Name-Last: Pan 
Title: The impact of monetary policy on oil price persistence: An application of the smooth regime-switching model 
Abstract:
 This paper employs the smooth transition autoregressive model to evaluate
 the persistence of oil price changes, and chooses monetary policy
 variables as transition variables of the model to assess their roles in
 the persistence effects. The empirical results show that oil price changes
 displayed asymmetric adjustments within different regimes and were more
 sensitive to the movement of interest rates than inflation rate. In
 addition, high inflation rate would give rise to low oil price
 persistence, and expansionary monetary policy would bring about higher oil
 price persistence. Moreover, when the short- and long-term interest rates
 were over their threshold values, the persistence effects of oil price
 changes were opposite. In the present relatively low US interest rates,
 adopting either an inflation-targeting policy or/and a debt-financing
 policy to stimulate economic growth, the timing is appropriate and the
 effect will be positive and expected because of low persistence of oil
 price changes.
Journal: The Journal of International Trade & Economic Development 
Pages: 24-42 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2013.848462 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.848462 
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Template-Type: ReDIF-Article 1.0
Author-Name: Steven Yamarik 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yamarik 
Author-Name: Sucharita Ghosh 
Author-X-Name-First: Sucharita 
Author-X-Name-Last: Ghosh 
Title: Broad versus regional integration: what matters more for economic development? 
Abstract:
 In this paper, we examine the impacts of broad and regional integration on
 long-run economic development.We construct cross-country measures of
 regional integration that account for both the magnitude and the
 endogeneity of individual regional integration agreements. We then include
 our regional integration measures along with the broad trade share,
 institutions and geography in a deep determinants regression. Our results
 show that regional integration, unlike broad trade, can raise the long-run
 level of real gross domestic product (GDP) per capita.
Journal: The Journal of International Trade & Economic Development 
Pages: 43-75 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2013.868024 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.868024 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bassem Kahouli 
Author-X-Name-First: Bassem 
Author-X-Name-Last: Kahouli 
Author-Name: Samir Maktouf 
Author-X-Name-First: Samir 
Author-X-Name-Last: Maktouf 
Title: Trade creation and diversion effects in the Mediterranean area: Econometric analysis by gravity model 
Abstract:
 Since the early 1990s, the world has seen a proliferation of free trade
 agreements (FTAs). A major goal of free trade is to develop trade between
 its signatories. The gravity model is used to analyze the bilateral trade
 data against the variables of the relative size of the pair of countries
 involved in trade, distance, common border and language and dummies for
 each of the FTAs. This article focuses on the studying of the influence of
 the FTAs in the Mediterranean countries in which we integrate the role of
 the regional dummy EU-15, Economic and Monetary Union (eurozone), the Arab
 Maghreb Union and AGADIR Agreement (FTA between Jordan, Egypt, Tunisia and
 Morocco) in trade flows. In addition, this work aims to detect the impact
 of the global financial crisis on export flows between the FTAs in the
 Mediterranean region. The use of regional variables in gravity models
 designed to determine whether the FTAs contribute to the creation or trade
 diversion. This study examines a cross section and panel (static and
 dynamic) of 27 countries for 1980-2011. The results show the existence of
 a strong relationship between the factors of FTAs and trade flows.
Journal: The Journal of International Trade & Economic Development 
Pages: 76-104 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2013.873479 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.873479 
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:1:p:76-104




Template-Type: ReDIF-Article 1.0
Author-Name: Yukiko Ito 
Author-X-Name-First: Yukiko 
Author-X-Name-Last: Ito 
Title: Is starting FDI more productive than staying at home? Manufacturing and service sectors in Japan 
Abstract:
 We highlight the difference between the service sector and the
 manufacturing sector in regard to the determinants for a firm to start
 foreign direct investment (FDI) and the resulting productivity growth.
 This paper analyzes two questions: (1) whether a certain level of initial
 productivity explains a firm's choice and (2) how the productivity of such
 a multinational firm changes over time after FDI. Using the longitudinal
 panel data on Japanese firms from 1980 to 2005, we trace firm-level
 decisions over decades. We find that the total factor productivity (TFP)
 does not explain a firm's choice for starting FDI in manufacturing, but it
 does in service sector. In contrast, the size and the profitability of
 firms motivate their FDI in the manufacturing sector, but these do not
 matter in the service sector. In addition, after FDI, we observe 1.3%
 annual growth rates of TFP in service, whereas firms in manufacturing show
 only 0.9% growth rates. To eliminate the selection bias, each
 multinational firm is paired with domestic firm(s) with similar ex-ante
 characteristics in the same industry.
Journal: The Journal of International Trade & Economic Development 
Pages: 105-131 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2013.877064 
File-URL: http://hdl.handle.net/10.1080/09638199.2013.877064 
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Template-Type: ReDIF-Article 1.0
Author-Name: Channary Khun 
Author-X-Name-First: Channary 
Author-X-Name-Last: Khun 
Author-Name: Sajal Lahiri 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Lahiri 
Author-Name: Sokchea Lim 
Author-X-Name-First: Sokchea 
Author-X-Name-Last: Lim 
Title: Do people really support trade restrictions? Cross-country evidence 
Abstract:
 We investigate the effect of trade restrictions on the perception of
 well-being. Using combined cross-sectional micro data from the World
 Values Survey and the European Values Survey of individuals in 89
 countries, we find that citizens of a country with a lower degree of trade
 restrictions are more satisfied with their lives. The results are also
 robust across different measures of well-being, different definitions of
 trade restrictions, different estimation methods, and different sample
 sizes.
Journal: The Journal of International Trade & Economic Development 
Pages: 132-146 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2014.882389 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.882389 
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Template-Type: ReDIF-Article 1.0
Author-Name: William D. Craighead 
Author-X-Name-First: William D. 
Author-X-Name-Last: Craighead 
Author-Name: David R. Hineline 
Author-X-Name-First: David R. 
Author-X-Name-Last: Hineline 
Title: Current account reversals and structural change in developing and industrialized countries 
Abstract:
 This paper examines the compositional changes that occur in economies
 experiencing current account reversals using sectoral-level data on output
 and employment growth around 55 reversal episodes. The experiences of
 developing and industrialized countries are compared, and the role of
 currency crises is also examined. Labor market adjustment following
 reversals in developing countries is shown to differ from that of
 industrialized economies. The possibility that this difference is related
 to labor market informality is briefly examined.
Journal: The Journal of International Trade & Economic Development 
Pages: 147-171 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 2 
X-DOI: 10.1080/09638199.2014.881416 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.881416 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong 
Author-X-Name-First: Kwabena 
Author-X-Name-Last: Gyimah-Brempong 
Author-Name: Elizabeth Asiedu 
Author-X-Name-First: Elizabeth 
Author-X-Name-Last: Asiedu 
Title: Remittances and investment in education: Evidence from Ghana 
Abstract:
 This paper uses both cross-section and pseudo-panel data to investigate
 the effects of remittances on investment in education in Ghana. We find
 that remittances significantly increase the probability that families
 enroll their children in primary and secondary schools, suggesting that
 remittances increase education human capital formation. The impact of
 remittances on the probability of primary and secondary school enrollment
 is particularly strong for international remittance. In addition, there is
 evidence that remittances to female-headed households increase education
 investment more than do remittances to male-headed households. We
 interpret our results to mean that international remittances improve
 prospects for economic growth and decrease poverty in the long run through
 the human capital channel. Our results are robust to sample and estimation
 method.
Journal: The Journal of International Trade & Economic Development 
Pages: 173-200 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.881907 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.881907 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jamal Bouoiyour 
Author-X-Name-First: Jamal 
Author-X-Name-Last: Bouoiyour 
Author-Name: Refk Selmi 
Author-X-Name-First: Refk 
Author-X-Name-Last: Selmi 
Title: Exchange volatility and export performance in Egypt: New insights from wavelet decomposition and optimal GARCH model 
Abstract:
 To assess the link between exchange rate uncertainty and exports
 performance in Egypt, this article relies on an optimal GARCH model chosen
 by information criteria among decomposed series on a scale-by-scale basis
 (wavelet decomposition). The observed outcomes reveal that this
 relationship depends intensely on the frequency-to-frequency variation and
 slightly on the leverage effect and switching regime. Indeed, it is well
 shown that at the low frequency, the coefficient associated to exchange
 rate volatility's effect on exports is greater than that at the high
 frequency and conversely when subtracting energy's share. We attribute the
 apparently conflicting results to the co-movement between energy prices
 and those of other commodities, the excessive speculation and the
 composition of trade partners.
Journal: The Journal of International Trade & Economic Development 
Pages: 201-227 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.889740 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.889740 
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Template-Type: ReDIF-Article 1.0
Author-Name: Namsuk Choi 
Author-X-Name-First: Namsuk 
Author-X-Name-Last: Choi 
Title: Accounting for quality differences in human capital and foreign direct investment 
Abstract:
 This paper empirically investigates how cross-country differences in the
 quality of human capital, as they are captured by the conventional
 measures of international test score differences, influences the patterns
 of foreign direct investment. Using panel data covering 32 countries
 during the period between 1985 and 2004, this paper finds that a host
 country's quality of educational attainment plays an independent role in
 attracting foreign direct investment. In particular, the quality of human
 capital influences horizontal foreign direct investment, even after
 accounting for the roles of skill and factor endowments, trade costs,
 investment costs, and country-size and income effects.
Journal: The Journal of International Trade & Economic Development 
Pages: 228-246 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.898680 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.898680 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:2:p:228-246




Template-Type: ReDIF-Article 1.0
Author-Name: Yui Suzuki 
Author-X-Name-First: Yui 
Author-X-Name-Last: Suzuki 
Title: Sovereign risk and procyclical fiscal policy in emerging market economies 
Abstract:
 This study develops a dynamic stochastic general equilibrium model to
 account for the differences in fiscal policy stance over the business
 cycle between developed and emerging market countries, and, in particular,
 for the volatile and procyclical government consumption and transfer
 payment in emerging market countries. Two models with and without default
 option in sovereign borrowings replicate the contrasting cyclical
 behaviors indicating that the default option is responsible for
 procyclical fiscal policy. Further, augmented model with third-party
 bailouts, together with the stochastic trend income process, successfully
 predicts high volatilities of fiscal expenditures. These imply that
 procyclical fiscal policy, entailed by default option, may exacerbate the
 business cycle in emerging market countries.
Journal: The Journal of International Trade & Economic Development 
Pages: 247-280 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.894112 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.894112 
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Template-Type: ReDIF-Article 1.0
Author-Name: Klas R&#xf6;nnb&#xe4;ck 
Author-X-Name-First: Klas 
Author-X-Name-Last: R&#xf6;nnb&#xe4;ck 
Title: Interest-group lobbying for free trade: An empirical case study of international trade policy formation 
Abstract:
 Many public-choice models have a problem explaining why governments
 support free trade policies in the face of interest-group lobbying. A
 common assumption is that interest groups tend to be rent seeking and
 therefore protectionist. In this empirical case study I find the interest
 groups to be anti-protectionist. The study shows that many interest groups
 have a more complex analysis underlying their trade policy preferences
 than what many public-choice models so far have allowed for.
Journal: The Journal of International Trade & Economic Development 
Pages: 281-293 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.884154 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.884154 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Yen Chen 
Author-X-Name-First: Yu-Yen 
Author-X-Name-Last: Chen 
Author-Name: Jiunn-Rong Chiou 
Author-X-Name-First: Jiunn-Rong 
Author-X-Name-Last: Chiou 
Author-Name: Yan-Shu Lin 
Author-X-Name-First: Yan-Shu 
Author-X-Name-Last: Lin 
Title: Welfare and quality improvement in an international market 
Abstract:
 This paper analyzes the optimal uniform and discriminatory quality
 requirements under Cournot competition when two firms produce high-quality
 and low-quality products, respectively, in an international market. The
 quality requirements in our paper are not set for the foreign firm but are
 set to regulate products of different qualities, since in the real world a
 domestic firm could be a high- or low-quality producer. We find that
 whether the government should raise the quality requirements depends on
 the type of competition in which firms engage and the adopted quality
 requirements. By and large, the government should always set quality
 requirements raising both firms' quality directly or indirectly,
 regardless of the quality of the product of the domestic firm. However, if
 the domestic firm is a high-quality producer, the government should set a
 quality requirement that enables the domestic firm to monopolize the
 market when a discriminatory quality requirement is adopted, and should
 not set any quality requirement when a uniform quality requirement is
 adopted. Moreover, we show that the quality requirement can actually
 improve global welfare in most cases.
Journal: The Journal of International Trade & Economic Development 
Pages: 294-313 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 3 
X-DOI: 10.1080/09638199.2014.891639 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.891639 
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Template-Type: ReDIF-Article 1.0
Author-Name: Cuong Nguyen Viet 
Author-X-Name-First: Cuong 
Author-X-Name-Last: Nguyen Viet 
Title: The impact of trade facilitation on poverty and inequality: Evidence from low- and middle-income countries 
Abstract:
 Although there are numerous empirical studies on the effect of trade
 facilitation on international trade and gross domestic product (GDP),
 there have been no studies on the effect of trade facilitation on poverty
 and inequality. This study examines the effect of trade facilitation on
 poverty and inequality in low- and middle-income countries using
 generalized method of moments-type instrumental variable regression. In
 this study, trade facilitation is measured by the number of documents and
 the number of days needed for exports and imports. It is found that trade
 facilitation helps the low- and middle-income countries decrease poverty
 and inequality, and increase per capita GDP.
Journal: The Journal of International Trade & Economic Development 
Pages: 315-340 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.898315 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.898315 
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:3:p:315-340




Template-Type: ReDIF-Article 1.0
Author-Name: Jamel Jouini 
Author-X-Name-First: Jamel 
Author-X-Name-Last: Jouini 
Title: Linkage between international trade and economic growth in GCC countries: Empirical evidence from PMG estimation approach 
Abstract:
 This paper explores the empirical evidence of the links between economic
 growth and openness to international trade by controlling for auxiliary
 variables in the model for the six Gulf Cooperation Council (GCC)
 countries over the annual sample period 1980-2010. After testing for
 cointegration based on a recent bootstrap panel test, we employ the Pooled
 Mean Group (PMG) estimation technique of M.H. Pesaran, Y. Shin, and R.
 Smith (1999. "Pooled Mean Group Estimation of Dynamic Heterogeneous
 Panels". <italic>Journal of the American Statistical Association</italic>
 94: 621-634) that is appropriate for drawing sharper conclusions in
 dynamic heterogeneous panels by considering long-run equilibrium
 relations. The results show evidence of cointegration relationship between
 the variables of interest, and reveal that economic growth responds
 positively to trade openness over both the short run and long run. The
 evidence is robust to using various trade openness measures and to
 alternative model specifications, suggesting thus the non-fragility of the
 linkage between economic growth and openness to international trade for
 the GCC region. Our findings are then promising and support the view that
 economic growth is directly and robustly linked to trade openness for the
 GCC countries.
Journal: The Journal of International Trade & Economic Development 
Pages: 341-372 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.904394 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.904394 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:3:p:341-372




Template-Type: ReDIF-Article 1.0
Author-Name: J&#xf8;rgen Drud Hansen 
Author-X-Name-First: J&#xf8;rgen Drud 
Author-X-Name-Last: Hansen 
Author-Name: Virmantas Kvedaras 
Author-X-Name-First: Virmantas 
Author-X-Name-Last: Kvedaras 
Author-Name: J&#xf8;rgen Ulff-M&#xf8;ller Nielsen 
Author-X-Name-First: J&#xf8;rgen Ulff-M&#xf8;ller 
Author-X-Name-Last: Nielsen 
Title: Creative destruction and export patterns 
Abstract:
 This paper presents an international trade model based on a market
 structure with monopolistic competition and age dependent quality and
 productivity in producing each product variety. Due to innovations new
 product varieties of a still higher quality enter the market every period
 rendering old varieties obsolete. For a given technology (variety)
 production costs decrease after an infant period due to learning. While
 all firms are assumed to be symmetric in a life-cycle perspective, at a
 given point in time firms of different ages differ in productivity, firm
 size, product quality, and export behavior. The model highlights a process
 of creative destruction, which allows firms to produce in a finite span of
 periods determined by the intensity of product and process innovations.
 The model predicts a wide range of export behavior of the individual firm
 during its life cycle depending on the structure of technological progress
 and trade costs. These predictions are consistent with empirical evidence
 on firm's internationalization in a dynamic perspective.
Journal: The Journal of International Trade & Economic Development 
Pages: 373-394 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.909519 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.909519 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:jitecd:v:24:y:2015:i:3:p:373-394




Template-Type: ReDIF-Article 1.0
Author-Name: Giray Gozgor 
Author-X-Name-First: Giray 
Author-X-Name-Last: Gozgor 
Title: Causal relation between economic growth and domestic credit in the economic globalization: Evidence from the Hatemi-J's test 
Abstract:
 This paper empirically examines causality relationship between economic
 growth and domestic credit in the economic globalization in 58 developed
 and developing countries over the period 1970-2010. We use the asymmetric
 Granger causality test that is based on modified Wald test statistics
 within bootstrapped critical values. We find a significant causality from
 domestic credit to economic growth only in seven developing countries.
 Furthermore, there is a unidirectional causality from economic growth to
 domestic credit in five developed and 10 developing economies.
Journal: The Journal of International Trade & Economic Development 
Pages: 395-408 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.908325 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.908325 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:3:p:395-408




Template-Type: ReDIF-Article 1.0
Author-Name: Faqin Lin 
Author-X-Name-First: Faqin 
Author-X-Name-Last: Lin 
Title: Estimating the effect of the Internet on international trade 
Abstract:
 This paper estimates the effect of the Internet on promoting international
 trade. The Internet can reduce the information cost for traders. We study
 the effect of the Internet on trade by augmenting the gravity equation
 with the Internet. The empirical results show that a 10% increase in the
 Internet users increases international trade by 0.2%-0.4%. The results are
 not sensitive to circumstances such as adding time-varying country fixed
 effects into the gravity and controlling for infrastructure measures. The
 results do not seem to be resulting from some small subset of the data and
 the results are robust to considering zero trade flows. Furthermore, our
 results are not driven by the time series variation of the panel data
 either. To address the endogeneity issue, we use the civil liberty index
 from the Freedom House as an instrument, system-GMM (generalized method of
 moments) approach and heteroskedasticity identification strategy, and the
 results still show strong effect of the Internet on trade improvement.
Journal: The Journal of International Trade & Economic Development 
Pages: 409-428 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.881906 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.881906 
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:3:p:409-428




Template-Type: ReDIF-Article 1.0
Author-Name: L&#xe1;szl&#xf3; K&#xf3;nya 
Author-X-Name-First: L&#xe1;szl&#xf3; 
Author-X-Name-Last: K&#xf3;nya 
Title: Saving and investment rates in the BRICS countries 
Abstract:
 The first decade of the new millennium witnessed the arrival of five
 large, fast-growing emerging economies on the global stage. These
 countries, Brazil, Russia, India, China and South Africa, collectively
 known as the BRICS countries, have achieved robust growth and steadily
 outpaced the advanced economies in the last quarter of a century or so. In
 spite of their recent slowdown, on the basis of their demographics, vast
 natural resources, physical and human capital accumulation and overall
 progress, they are likely to remain the engines of global economic growth
 and development for some time in the future. In the light of the rising
 role of BRICS countries in the world economy, this paper aims to study the
 relationship between their domestic saving and investment rates in the
 vein of Feldstein-Horioka but on a country-by-country basis using
 time-series econometric techniques. The results suggest that the basic
 Feldstein-Horioka regression is misspecified for each BRICS country. The
 preferred autoregressive-distributed-lag specifications imply that capital
 is not perfectly mobile internationally in any of the BRICS countries, but
 it is more mobile in South Africa and Russia than in India, Brazil and
 China.
Journal: The Journal of International Trade & Economic Development 
Pages: 429-449 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 4 
X-DOI: 10.1080/09638199.2014.920401 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.920401 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: Chi Wei Su 
Author-X-Name-First: Chi Wei 
Author-X-Name-Last: Su 
Title: Uncovered interest parity and monetary integration in East Asian countries based on China 
Abstract:
 This study applies a nonlinear threshold unit-root test to investigate the
 nonstationary properties of the uncovered interest parity (UIP) with risk
 premium for eight East Asian countries relative to China. We find that the
 nonlinear threshold unit-root test has greater power than the linear
 method, if the true data generating process of risk premium convergence is
 a stationary nonlinear process. We examine the validity of UIP from the
 nonlinear point of view and provide robust evidence that clearly indicates
 that UIP holds true for five countries based on China. Our findings
 highlight that capital mobility, exchange rate market efficiency and
 monetary integration are nonlinear in these East Asian countries.
Journal: The Journal of International Trade & Economic Development 
Pages: 451-464 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.920402 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.920402 
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Handle: RePEc:taf:jitecd:v:24:y:2015:i:4:p:451-464




Template-Type: ReDIF-Article 1.0
Author-Name: Louren&#xe7;o S. Paz 
Author-X-Name-First: Louren&#xe7;o S. 
Author-X-Name-Last: Paz 
Title: The welfare impacts of a revenue-neutral switch from tariffs to VAT with intermediate inputs and a VAT threshold 
Abstract:
 The debate about replacing tariffs with value-added tax (VAT) in
 developing countries has paid little attention to the role of VAT as an
 input tax on the informal sector and has overlooked the usefulness of
 changing the VAT threshold in a revenue-neutral switch from tariffs to
 VAT. This paper contributes to the literature by addressing these two
 issues via a heterogeneous firm model of a small open economy with
 endogenous firm entry and VAT compliance. The results found indicate that
 the VAT collected on intermediate inputs consumed by the informal sector
 not only reduces the benefits of evading VAT, but also diminishes the
 production distortion between the formal and the informal sectors. The use
 of a change in the VAT threshold to offset lost tariff revenue leads to
 welfare gains; however, the source of such gains is different from that of
 a change in the VAT rate. While an increase in the VAT rate expands
 informality, a revenue-equivalent decrease in the VAT threshold reduces
 informality. These novel results suggest that the VAT threshold plays an
 important role in the design of revenue-neutral tax reforms.
Journal: The Journal of International Trade & Economic Development 
Pages: 465-498 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.924652 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.924652 
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Template-Type: ReDIF-Article 1.0
Author-Name: Neil Foster-McGregor 
Author-X-Name-First: Neil 
Author-X-Name-Last: Foster-McGregor 
Author-Name: Anders Isaksson 
Author-X-Name-First: Anders 
Author-X-Name-Last: Isaksson 
Author-Name: Florian Kaulich 
Author-X-Name-First: Florian 
Author-X-Name-Last: Kaulich 
Title: Importing, exporting and the productivity of services firms in Sub-Saharan Africa<xref ref-type="fn" rid="FN0001"/> 
Abstract:
 We examine productivity differences between trading and non-trading firms
 in the services sector using data on a sample of 19 Sub-Saharan African
 countries. A variety of parametric and non-parametric tests are
 implemented in order to examine whether exporters, importers and two-way
 traders perform better than non-traders, and whether there are differences
 in performance between different types of trading firms. Our results
 indicate that services firms that are engaged in international trade
 perform significantly better than those firms that trade on the domestic
 market only. While two-way traders tend to perform better than importers
 only and exporters only, few differences in performance are found between
 these latter two groups.
Journal: The Journal of International Trade & Economic Development 
Pages: 499-522 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.926386 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.926386 
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Template-Type: ReDIF-Article 1.0
Author-Name: Antoine Gervais 
Author-X-Name-First: Antoine 
Author-X-Name-Last: Gervais 
Title: Product quality, firm heterogeneity and trade liberalization 
Abstract:
 This paper develops a framework for studying the general equilibrium
 effects of endogenous quality upgrading, a new margin of trade, on the
 welfare impact of trade liberalization. The theoretical model introduces
 product quality differentiation amongst heterogeneous firms and focuses on
 supply-side determinants of international trade. Among other results, in
 general equilibrium, trade liberalization decreases the share of
 high-quality varieties in exports and the average productivity of
 exporters. These changes affect average export price in opposite ways.
 Nevertheless, trade liberalization in the quality-extended model increases
 consumers&#x2019; welfare by more than in the benchmark model.
Journal: The Journal of International Trade & Economic Development 
Pages: 523-541 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.932426 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.932426 
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Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Leonard 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Leonard 
Author-Name: Ngo Van Long 
Author-X-Name-First: Ngo 
Author-X-Name-Last: Van Long 
Title: Technology transfers and industry closures 
Abstract:
 There has been a shift of manufacturing industries from Organization for
 Economic Co-operation and Development (OECD) countries to emerging
 countries. In a competitive global economy increases in productivity in
 any country are generally welfare-enhancing. The established
 industrialized countries can suffer from the collapse of some industries,
 and from the associated increase in unemployment. We model this process
 and analyze the interactions between various rigidities that cause it,
 such as the minimum viable scale of an industry or the number of workers
 who lack the necessary skills to change jobs. When, under free trade, the
 technology transfer causes the manufacturing industry to collapse in the
 home country, it experiences a discrete drop in welfare and the price of
 the manufactured good rises sharply. Further transfers may reverse these
 results. The optimal level of protection is the minimum size required to
 operate. Conditions that make supporting an ailing industry worthwhile can
 be interpreted in several ways but the conclusion is inescapable:
 technology transfers fundamentally affect arguments for industry
 protection at home.
Journal: The Journal of International Trade & Economic Development 
Pages: 542-569 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.931450 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.931450 
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Template-Type: ReDIF-Article 1.0
Author-Name: Omid Ranjbar 
Author-X-Name-First: Omid 
Author-X-Name-Last: Ranjbar 
Author-Name: Xiao-Lin Li 
Author-X-Name-First: Xiao-Lin 
Author-X-Name-Last: Li 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Title: Stability of long-run growth in East Asian countries: New evidence from panel stationarity test with structural breaks 
Abstract:
 This paper investigates the stability of the steady-state growth process
 in East Asian region using a novel panel stationarity test, which allows
 us to control for (a) unobserved heterogeneity in form and date of
 potential structural breaks in a trend function, (b) the cross-sectional
 dependence among countries in the panel bootstrapping methods, and (c) the
 serially correlated errors. Evidence shows that a large majority of
 countries exhibit slowdowns in economic growth after their structural
 breaks and thus could not recover from negative shocks and return original
 balanced growth path.
Journal: The Journal of International Trade & Economic Development 
Pages: 570-589 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638199.2014.937352 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.937352 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohammadou Nourou 
Author-X-Name-First: Mohammadou 
Author-X-Name-Last: Nourou 
Title: Human development effects of large changes in food prices: Does openness policy matter? 
Abstract:
 This paper analyses the effects of food price shocks on selected
 disaggregated human development indicators and investigates the role of
 openness policy in mitigating the adverse effects of large changes in food
 prices. Using a panel of 74 developing countries from 1980 to 2012, I find
 that positive food price shocks reduce life expectancy at birth both in
 the fixed-effect model and in the dynamic panel model while negative food
 price shocks do not seem to matter for this human development indicator in
 the static model but adversely affect it in the dynamic model. I also find
 that both positive and negative shocks have no effect on youth literacy
 rate; this probably means that households do not react to food price
 shocks by taking children out of school. Analysing the role of commercial
 openness, I find that openness policy enhances countries&#x2019; capacity
 to manage the adverse effects of food price shocks on life expectancy at
 birth. This suggests that the tempting policy option of reducing openness
 to trade during food price shocks is not an efficient choice as regards
 the human development. Countries must therefore set institutional
 arrangements that could prevent policy-makers from taking this inefficient
 policy option.
Journal: The Journal of International Trade & Economic Development 
Pages: 591-615 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.939694 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.939694 
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Template-Type: ReDIF-Article 1.0
Author-Name: Micha&#xeb;l Bonnal 
Author-X-Name-First: Micha&#xeb;l 
Author-X-Name-Last: Bonnal 
Title: The &#x2018;<italic>amelioration</italic>&#x2019; of child labor, &#x2018;a modest proposal&#x2019;<xref ref-type="fn" rid="FN0001"/> 
Abstract:
 More than 317 million children between the age of 5 and 17 are working in
 the world. Child labor is a persistent phenomenon, even though its
 incidence has subsided with economic development. In this paper, we
 conduct a panel study of 101 countries from 1980 to 2004 where child labor
 is proxied by the labor force participation of children aged 10--14. We
 look at the relationships between child labor and investments in human
 capital, foreign direct investments, countries&#x2019; openness to trade,
 and credit market constraints. We depart from the contributions of
 cross-country studies by employing a fixed effects instrumental variable
 (FE-IV) panel data model by employing a fixed effects instrumental
 variable (FE-IV) panel data model to account for unobserved heterogeneity
 and endogeneity of child labor and individual country-specific effects. We
 find support for the conclusions of the above-mentioned studies: countries
 that trade more and have a higher stock of foreign direct investment have
 less child labor. More generally, we find that trade openness, investments
 in human capital, and financial development are associated with a
 reduction of child labor. Child labor persists but tailored policies on
 trade, investment, and financial reform can lessen child labor along with
 economic growth, improvements in health, and rising standards of living.
Journal: The Journal of International Trade & Economic Development 
Pages: 616-637 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.950685 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.950685 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ba&#x15f;ak Dalg&#x131;&#xe7; 
Author-X-Name-First: Ba&#x15f;ak 
Author-X-Name-Last: Dalg&#x131;&#xe7; 
Author-Name: Burcu Fazl&#x131;o&#x11f;lu 
Author-X-Name-First: Burcu 
Author-X-Name-Last: Fazl&#x131;o&#x11f;lu 
Author-Name: Deniz Karao&#x11f;lan 
Author-X-Name-First: Deniz 
Author-X-Name-Last: Karao&#x11f;lan 
Title: Entry to foreign markets and productivity: Evidence from a matched sample of Turkish manufacturing firms 
Abstract:
 We examine the effects of international trading activities of firms on
 creating productivity gains in Turkey by using a recent firm-level data
 set over the period 2003--2010. We establish treatment models and
 investigate the productivity improvements of firms through trade by using
 propensity score matching techniques together with
 difference-in-difference estimates. Three different groups of treatment
 are constructed: (1) firms that are involved only with import activities,
 (2) firms that are involved only with export activities and (3) firms that
 are involved with both export and import activities. The results of the
 study suggest that both exporting and importing have positive significant
 effects on total factor productivity (TFP) and labour productivity (LP) of
 firms. Importing is found to have a greater impact on productivity of
 firms compared to exporting. Further, two-way trade is found to have more
 significant effects than those of one-way trade on firm productivity.
 Finally, our results indicate that international trade has greater impact
 on LP rather than TFP of firms.
Journal: The Journal of International Trade & Economic Development 
Pages: 638-659 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.948904 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.948904 
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Template-Type: ReDIF-Article 1.0
Author-Name: Frank Bickenbach 
Author-X-Name-First: Frank 
Author-X-Name-Last: Bickenbach 
Author-Name: Wan-Hsin Liu 
Author-X-Name-First: Wan-Hsin 
Author-X-Name-Last: Liu 
Author-Name: Peter Nunnenkamp 
Author-X-Name-First: Peter 
Author-X-Name-Last: Nunnenkamp 
Title: Regional concentration of FDI in post-reform India: A district-level analysis 
Abstract:
 We analyze the concentration of foreign direct investment (FDI) in India
 at the district level, based on project-specific location choices since
 the reform program in the early 1990s. The decomposition property of the
 Theil index allows us to trace changes over time in the overall
 concentration of FDI to changes in concentration between and within
 subgroups of districts. We also differentiate between major types and
 sources of FDI. We find that FDI concentrated in a persistently decreasing
 number of districts. Concentration across those districts that received at
 least one FDI project within a given time interval also increased, but
 this increase leveled off in the more recent past. These trends hold for
 essentially all types and sources of FDI, while the average level of
 concentration varies considerably between these types and sources.
Journal: The Journal of International Trade & Economic Development 
Pages: 660-695 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.955869 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.955869 
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Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Cezar 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Cezar 
Title: The gravity of financial development 
Abstract:
 The article empirically tests the link between financial constraints with
 the extensive (proportion of exporters) and the intensive (volume of
 exports) margins of international trade. The main contribution is the
 macroeconomic analysis of this relationship -- i.e. the investigation of
 the effect of finance on trade of all economic sectors combined -- which
 is further reaching than the manufactured-sector-based focus found in the
 current literature. The study is developed on the basis of a bilateral
 trade database on 104 countries between 1998 and 2007. The empirical
 section estimates a two-stage gravity equation using panel data and shows
 a positive impact of financial development on the marginal variation of
 the extensive margin. However, the estimate of the relationship between
 finance and the intensive margin shows an unexpected result. It finds
 inconsistent results demonstrating a relationship that is negative,
 positive or statistically null.
Journal: The Journal of International Trade & Economic Development 
Pages: 696-723 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.955870 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.955870 
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael H&#xfc;bler 
Author-X-Name-First: Michael 
Author-X-Name-Last: H&#xfc;bler 
Title: A model of endogenous growth that elucidates the complexity of South--North convergence 
Abstract:
 This North--South model of Schumpeterian endogenous growth combines a
 market, productivity and knowledge effect. Depending upon the interaction
 of these effects, various convergent and divergent South--North growth
 paths occur: for example, full or partial convergence of the Southern
 technology level to the Northern one, conditional convergence or
 divergence depending upon the Southern initial technology level and
 absorptive capacity, higher or lower as well as decreasing or increasing
 growth rates during the phase of catching up, and equal or higher growth
 rates of the South compared to the North after catching up. This set of
 growth paths can better explain the diversity of the empirical
 observations for economies at different income and technology levels than
 those generated by existing models. In this new model, convergence based
 on North--South trade and associated flows of patents (innovations) is
 guaranteed if the knowledge effect dominates the productivity effect. A
 larger Southern market expands the area of convergence and can prevent
 divergence. Not only a larger Southern market, but also a higher Southern
 steady state growth rate benefit the North so that convergence is
 desirable for both, the South and the North.
Journal: The Journal of International Trade & Economic Development 
Pages: 724-750 
Issue: 5 
Volume: 24 
Year: 2015 
Month: 8 
X-DOI: 10.1080/09638199.2014.959544 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.959544 
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Template-Type: ReDIF-Article 1.0
Author-Name: K.V. Bhanu Murthy 
Author-X-Name-First: K.V. Bhanu 
Author-X-Name-Last: Murthy 
Author-Name: Niti Bhasin 
Author-X-Name-First: Niti 
Author-X-Name-Last: Bhasin 
Title: The impact of bilateral tax treaties: A multi-country analysis of FDI inflows into India 
Abstract:
 This paper models the role of tax treaties in promoting foreign direct
 investment (FDI) with the help of panel data for 14 countries for the
 period 1993--2011. A fixed effects (least squares dummy variable) model is
 developed that captures macroeconomic factors such as gross domestic
 product (GDP) and per capita income (PCI) in ratio form of home to host
 country. It also includes bilateral tax treaties as a determinant of FDI
 inflow. The results show that GDP is a major determinant that is demand
 driven and per capita income is a major determinant that is supply driven.
 FDI openness of the home countries and population are also significant
 determinants. The introduction of the treaty had a positive impact on FDI
 inflows into India. We get largely significant and positive results for
 the &#x2018;age of the treaty effect&#x2019;, especially, in the case of
 Germany, Switzerland and Japan. The main contribution of the paper is to
 show that both presence and &#x2018;age of treaty&#x2019; are important
 determinants of FDI flows to India. Further, fundamentals like GDP and PCI
 are major variables that influence FDI inflows.
Journal: The Journal of International Trade & Economic Development 
Pages: 751-766 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.960442 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.960442 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jo&#xe3;o Tovar Jalles 
Author-X-Name-First: Jo&#xe3;o 
Author-X-Name-Last: Tovar Jalles 
Author-Name: Jose Tavares 
Author-X-Name-First: Jose 
Author-X-Name-Last: Tavares 
Title: Trade, scale or social capital? Technological progress in poor and rich countries 
Abstract:
 Endogenous growth theory suggests scale and trade as the determinants of
 total factor productivity (TFP) growth. The literature on social capital
 suggests that the levels of trust and participation in societies may
 affect cooperation and innovation. While there is evidence of the role of
 trade and inconclusive evidence on the role of social capital, previous
 studies have generally omitted two factors, out of the three mentioned,
 used small sample sizes and emphasized economic growth rather than
 technological progress. Our study addresses these shortcomings. We find
 robust evidence of the role of trade in fostering technological progress
 which is invariant to TFP proxies and independent of the debate on
 measuring TFP. Moreover, there is no clear role for scale, and a country
 rate of TFP growth seems to increase the most the more the country trades
 with dynamic economies that are different from. We uncover a positive
 effect of social capital, which is more significant in richer countries,
 suggesting that other characteristics, such as institutional quality, may
 be complementary to social capital. The paper's results are robust to
 different specification and estimation methods.
Journal: The Journal of International Trade & Economic Development 
Pages: 767-808 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.969757 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.969757 
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Template-Type: ReDIF-Article 1.0
Author-Name: Atsuyuki Kato 
Author-X-Name-First: Atsuyuki 
Author-X-Name-Last: Kato 
Title: Effects of exchange rate changes on East Asian technology-intensive exports<xref ref-type="fn" rid="FN0001"/> 
Abstract:
 This paper examines effects of exchange rate changes on
 technology-intensive exports for five Northeast Asian economies: China,
 Hong Kong, Japan, Republic of Korea (ROK) and Taiwan. In these economies,
 China, Hong Kong and Taiwan have increased the shares of high-skill and
 technology-intensive exports (usually finished goods) while Japan has
 highly concentrated on medium-skill and technology-intensive exports
 (mainly intermediate goods). ROK has shifted its exports from finished to
 intermediate goods following Japan. Panel dynamic Ordinary Least Squares
 (OLS) with heterogeneous time trends was applied to trade data during the
 period 1995--2011. Our estimation results revealed that exports with high
 skill and technology intensity are more sensitive to real exchange rates
 in China and Taiwan, while exports with medium skill and technology
 intensity are very sensitive to exchange rate changes except for China.
 These results are consistent with the current roles of those economies in
 the regional production networks.
Journal: The Journal of International Trade & Economic Development 
Pages: 809-821 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.974659 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.974659 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Beladi 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Beladi 
Author-Name: Chi-Chur Chao 
Author-X-Name-First: Chi-Chur 
Author-X-Name-Last: Chao 
Author-Name: Jean-Pierre Laffargue 
Author-X-Name-First: Jean-Pierre 
Author-X-Name-Last: Laffargue 
Title: Tariff and Consumption Tax Reforms in a Developing Tourism Economy 
Abstract:
 This paper examines the effects of a coordinated tax reform by replacing
 import tariffs with point-by-point increases in consumption taxes for a
 small-open developing tourism economy. Foreign tourists demand for the
 non-traded goods provided in the informal sector of the host economy,
 resulting in a tourism-induced terms-of-trade effect. The presence of
 inbound tourism lends a support to positive tariffs even for a small open
 economy. The indirect tax reform of this kind can increase
 residents&#x2019; welfare and government revenue when the initial tariffs
 are relatively larger to the consumption taxes.
Journal: The Journal of International Trade & Economic Development 
Pages: 822-834 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.978356 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.978356 
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Template-Type: ReDIF-Article 1.0
Author-Name: Pradeep Agrawal 
Author-X-Name-First: Pradeep 
Author-X-Name-Last: Agrawal 
Title: The role of exports in India's economic growth 
Abstract:
 We analyze the role of exports in India's economic growth and examine
 whether the export-led growth hypothesis (ELGH) applies to India. Our
 causality analysis provides support for the validity of the ELGH for India
 in the trade liberalization phase. Error variance decomposition and other
 analyses are also undertaken; these corroborate the results of the
 causality analysis and suggest that the rapid growth of exports has played
 a substantial role in increasing the growth rate in India following the
 economic reforms of 1991.
Journal: The Journal of International Trade & Economic Development 
Pages: 835-859 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.968192 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.968192 
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Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Sakyi 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Sakyi 
Author-Name: Jose Villaverde 
Author-X-Name-First: Jose 
Author-X-Name-Last: Villaverde 
Author-Name: Adolfo Maza 
Author-X-Name-First: Adolfo 
Author-X-Name-Last: Maza 
Title: Trade openness, income levels, and economic growth: The case of developing countries, 1970--2009 
Abstract:
 This paper attempts to investigate the extent to which trade openness has
 had an impact on the levels of income and rates of growth in a sample of
 115 developing countries for the period 1970--2009. Additionally, to
 assess whether there is an income level threshold for a country to benefit
 from international trade, the sample is broken down into three mutually
 exclusive groups of countries: low-income, lower middle-income, and upper
 middle-income countries. The main novelty of the paper lies on the use, on
 the one hand, of a new and better trade openness measure and, on the other
 hand, of non-stationary heterogeneous panel cointegration techniques to
 cope with the problem of cross-sectional dependence. The results show a
 positive bi-directional relationship between trade openness and income
 level in the long run, thus suggesting that trade openness is both a cause
 and a consequence of the level of income. The results for the short run,
 that is, the link between openness growth and economic growth, go in the
 same direction.
Journal: The Journal of International Trade & Economic Development 
Pages: 860-882 
Issue: 6 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638199.2014.971422 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.971422 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kazunobu Hayakawa 
Author-X-Name-First: Kazunobu 
Author-X-Name-Last: Hayakawa 
Title: Does firm size matter in exporting and using FTA schemes? 
Abstract:
 In this paper, we empirically compare the role of firm size when exporting
 with that when using free trade agreement (FTA) schemes. We employ a
 unique survey providing detailed information on FTA use by Japanese
 affiliates in ASEAN, India, and Oceania. Our findings from the analysis on
 Japanese affiliates in ASEAN are as follows. First, firm size matters in
 both decisions on exporting and on using FTA schemes. In particular, firm
 size is more quantitatively important in decisions on FTA use than on
 exporting. Second, firms with experience in utilizing FTAs for exporting
 have an approximately 40% higher probability of using an FTA for exporting
 to a new country. Third, larger-sized firms use a larger number of FTA
 schemes.
Journal: The Journal of International Trade & Economic Development 
Pages: 883-905 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.967282 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.967282 
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Template-Type: ReDIF-Article 1.0
Author-Name: Hisashi Sawaki 
Author-X-Name-First: Hisashi 
Author-X-Name-Last: Sawaki 
Title: Educating voters for protection 
Abstract:
 This paper analyzes an agricultural pressure group's publicity campaigns
 for protection of their industry. If the group knows the positive
 externalities of domestic production of their goods, they may educate
 voters on these before an election to induce a favored trade policy.
 Modeling this situation shows that the expenditure on such campaigns is an
 increasing convex function of the true externalities. It also shows that,
 when the farmer population is relatively large, a marginal decline in that
 population makes the per-capita campaign effort more intense; however,
 when the farmer population becomes small, a further decline makes the
 effort less intense.
Journal: The Journal of International Trade & Economic Development 
Pages: 906-921 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.926385 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.926385 
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Template-Type: ReDIF-Article 1.0
Author-Name: Tadashi Morita 
Author-X-Name-First: Tadashi 
Author-X-Name-Last: Morita 
Author-Name: Kouki Sugawara 
Author-X-Name-First: Kouki 
Author-X-Name-Last: Sugawara 
Title: Human capital and FDI: Development process of the developing country in an overlapping generation model 
Abstract:
 We construct an overlapping generation model with human capital
 accumulation to analyze the effect of human capital level on foreign
 direct investment (FDI) in a small open developing country. In particular,
 we assume that manufactured goods have the human capital intensive
 technology and young agents choose whether to work or to educate
 themselves. When the human capital level in the developing country is
 sufficiently small, manufactured goods firms do not conduct FDI and the
 economy in the developing country is trapped in poverty. If the government
 of the developing country levies a tariff on the imports of manufactured
 goods, manufacturers conduct FDI, and the economy in the developing
 country can escape from the poverty trap.
Journal: The Journal of International Trade & Economic Development 
Pages: 922-946 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.986748 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.986748 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nathaniel P.S. Cook 
Author-X-Name-First: Nathaniel P.S. 
Author-X-Name-Last: Cook 
Author-Name: Jason Cannon Jones 
Author-X-Name-First: Jason Cannon 
Author-X-Name-Last: Jones 
Title: The African Growth and Opportunity Act (AGOA) and export diversification 
Abstract:
 This paper explores the effect of the African Growth and Opportunity Act
 (AGOA) on export diversification in Sub-Saharan Africa. The existing
 empirical studies suggest that AGOA has had a positive effect on the
 overall <italic>volume</italic> of trade between Sub-Saharan Africa and
 the United States. However, the economic development literature emphasizes
 the importance of export <italic>diversification</italic> for developing
 countries; therefore, it is important to understand the effects of AGOA on
 the <italic>extensive</italic> margin of trade (i.e. the number of
 distinct products a country exports). Our empirical results suggest that
 AGOA does contribute to export diversification, specifically through its
 apparel provision. Countries that are eligible for the AGOA apparel
 provision export not only more apparel products, but also more non-apparel
 products to the USA. Thus, AGOA contributes to export diversification at
 the extensive margin of trade with the USA.
Journal: The Journal of International Trade & Economic Development 
Pages: 947-967 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.986663 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.986663 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sanghyun Hwang 
Author-X-Name-First: Sanghyun 
Author-X-Name-Last: Hwang 
Author-Name: Seungrae Lee 
Author-X-Name-First: Seungrae 
Author-X-Name-Last: Lee 
Title: Regional economic integration and multinational firm strategies 
Abstract:
 This paper analyzes the effects of regional economic integrations on
 investment patterns among multinational firms. We develop a model in which
 heterogeneous firms decide on the optimal foreign direct investment (FDI)
 strategies for serving trade-integrated regions consisting of asymmetric
 countries: developed and developing nations. Following reduced trade costs
 within the trade-integrated region, our model shows that integrating into
 a regional economic zone affects firms with relatively low productivity
 levels to enter developing nation within the region via complex FDI -- a
 firm activity of engaging in multiple types of FDI. Specifically, we show
 that depending on the size of the region respective to the home country,
 complex FDI involves different investment patterns. Using Korean firm- and
 plant-level data, we specify a binary choice model to link firms&#x2019;
 choice of FDI strategies with their productivity levels and
 trade-integrated regions. Our empirical results are consistent with the
 theoretical implications.
Journal: The Journal of International Trade & Economic Development 
Pages: 968-1013 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.987681 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.987681 
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Template-Type: ReDIF-Article 1.0
Author-Name: Olga Kiuila 
Author-X-Name-First: Olga 
Author-X-Name-Last: Kiuila 
Title: Interactions between trade and environmental policies in the Czech Republic 
Abstract:
 The Czech Republic is obliged to implement pollution charges in accordance
 with the EU environmental policy. The charges may affect international
 competitiveness of the country, since they are applied to the domestically
 produced, but not to the imported commodities. We investigate how such
 environmental taxation of six main pollutants affects the Czech
 competitiveness. Using computable general equilibrium modeling with
 bottom-up approach, we consider a small-open economy with endogenous
 unemployment and ten types of taxes. A distinction between taxes on
 products and taxes on production is essential for analysis of a fiscal
 policy. Emissions reduction is possible in our model either through
 substitution with less polluting inputs, or a reduction of output, or
 through technical abatement. The last channel for emission reduction is
 ignored by other studies. The results show that the imports should not be
 affected by the tax reform, except for coal. Exports will increase in the
 non-energy-intensive and the biomass industries, but it will decrease in
 the chemical, the coal, and the metal industries. The overall effect on
 the trade balance is slightly negative. We conclude that investments in
 energy-saving technologies are necessary in order to preserve
 international competitiveness.
Journal: The Journal of International Trade & Economic Development 
Pages: 1014-1035 
Issue: 7 
Volume: 24 
Year: 2015 
Month: 10 
X-DOI: 10.1080/09638199.2014.995208 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.995208 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ruohan Wu 
Author-X-Name-First: Ruohan 
Author-X-Name-Last: Wu 
Author-Name: Mario Javier Miranda 
Author-X-Name-First: Mario Javier 
Author-X-Name-Last: Miranda 
Title: Exports, investment and production growth: A dynamic heterogeneous firm model with learning and entry costs 
Abstract:
 We analyze a firm&#x2019;s joint decision to export and invest using a
 model that incorporates the essential features of self-selection and
 learning-by-exporting theories of firm-level dynamics. We calibrate the
 model to 2002--2007 Chilean manufacturing plant data and simulate it under
 different assumptions, finding that neither self-selection nor
 learning-by-exporting alone can adequately explain the observed
 cross-sectional relationship between firm level exports and capital,
 favoring instead a model that allows both mechanisms to work in tandem.
Journal: The Journal of International Trade & Economic Development 
Pages: 1037-1053 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2014.998856 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.998856 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chrysostomos Tabakis 
Author-X-Name-First: Chrysostomos 
Author-X-Name-Last: Tabakis 
Title: Free-trade areas and special protection 
Abstract:
 This paper investigates the impact of free-trade-area (FTA) agreements on
 the ability of countries to multilaterally cooperate within an economic
 environment characterized by trade-flow volatility. We show that the
 parallel formation of different FTAs leads to a gradual but permanent
 easing of multilateral trade tensions. In particular, we demonstrate that
 the emergence of the FTAs will be accompanied by a decline in global
 &#x2018;special&#x2019;-protection activity, such as safeguard or
 anti-dumping initiations, but will have less significant implications for
 most-favored-nation tariffs, or &#x2018;normal&#x2019; trade protection.
Journal: The Journal of International Trade & Economic Development 
Pages: 1054-1076 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2014.999817 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.999817 
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Template-Type: ReDIF-Article 1.0
Author-Name: James T. Bang 
Author-X-Name-First: James T. 
Author-X-Name-Last: Bang 
Author-Name: Aniruddha Mitra 
Author-X-Name-First: Aniruddha 
Author-X-Name-Last: Mitra 
Author-Name: Phanindra V. Wunnava 
Author-X-Name-First: Phanindra V. 
Author-X-Name-Last: Wunnava 
Title: Financial liberalization and remittances: Recent panel evidence 
Abstract:
 We investigate the impact of financial liberalization on remittances to 84
 countries over the period 1986--2005. Explicitly accounting for the
 multidimensionality of financial reform, we find that the various
 dimensions impact remittances differently: Increased economic freedom in
 the financial sector, as captured by absence of direct government control
 over the allocation of credit, has a positive and immediate impact.
 However, the improved robustness of financial markets, as captured by the
 development of security markets, improvement in the quality of banking
 supervision, and removal of stringent restrictions on interest rates and
 international capital, has a negative and lagged effect. The net combined
 effect reveals that financial liberalization may have a modest negative
 impact on remittances in the long run.
Journal: The Journal of International Trade & Economic Development 
Pages: 1077-1102 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2014.1001772 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.1001772 
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Template-Type: ReDIF-Article 1.0
Author-Name: Lino P. Briguglio 
Author-X-Name-First: Lino P. 
Author-X-Name-Last: Briguglio 
Author-Name: Melchior Vella 
Author-X-Name-First: Melchior 
Author-X-Name-Last: Vella 
Title: Labour demand in the EU and returns to scale: A production function approach 
Abstract:
 The paper tests the hypothesis that small member states of the European
 Union (EU) experience economies of scale constraints. This study adopts a
 production function approach, utilising data from the 27 differently sized
 EU member countries. The results confirm the hypothesis and indicate that
 larger EU member countries incur lower costs per unit of output produced
 when compared to the smaller ones. This finding has important implications
 for small EU member states, including that smaller countries have to
 overcome their economies of scale constraint in order to attain and
 maintain international competitiveness. This disadvantage is particularly
 relevant for small states, because these states tend to be highly
 dependent on international trade, in which case international
 competitiveness is a major issue.
Journal: The Journal of International Trade & Economic Development 
Pages: 1103-1116 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2014.1002414 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.1002414 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mahmudul Anam 
Author-X-Name-First: Mahmudul 
Author-X-Name-Last: Anam 
Author-Name: Ghulam Hussain Anjum 
Author-X-Name-First: Ghulam Hussain 
Author-X-Name-Last: Anjum 
Author-Name: Shin-Hwan Chiang 
Author-X-Name-First: Shin-Hwan 
Author-X-Name-Last: Chiang 
Title: Optimum choice of invoice currency with correlated exchange rates-super-&#x2020; 
Abstract:
 In this paper, we revisit optimal choice of invoice currency for an
 exporting firm in the face of exchange rate uncertainty. We demonstrate
 that when a vehicle currency is available, the optimum choice depends not
 only on the volatility of the exchange rates but the covariance between
 them as well. In particular, we show that when the exchange rates between
 the exporter and importer currencies on the one hand, and the exporter and
 the vehicle currency on the other, are positively correlated, vehicle
 currency becomes an attractive choice. The intuition underlying this novel
 outcome is that this regime dampens profit variability for the exporter.
Journal: The Journal of International Trade & Economic Development 
Pages: 1117-1129 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2015.1010446 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1010446 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dal Didia 
Author-X-Name-First: Dal 
Author-X-Name-Last: Didia 
Author-Name: Mihai Nica 
Author-X-Name-First: Mihai 
Author-X-Name-Last: Nica 
Author-Name: Geungu Yu 
Author-X-Name-First: Geungu 
Author-X-Name-Last: Yu 
Title: The gravity model, African Growth and Opportunity Act (AGOA) and US trade relations with sub-Saharan Africa 
Abstract:
 The United States of America enacted the African Growth and Opportunity
 Act (AGOA) in 2000 to grant sub-Saharan African countries (SSA) a
 preferential treatment in their exports to the USA. With this Act, most of
 the exports from SSA can now enter the USA duty-free, and this is expected
 to boost the exporting and manufacturing sectors in SSA. Hopefully, this
 singular act of assistance from the USA will spur entrepreneurship in SSA,
 thereby creating jobs and jump starting meaningful economic growth in the
 region. Since trade is a major catalyst in economic development, AGOA is
 arguably the most meaningful intervention from a developed country to an
 under-developed region such as SSA in recent times. Has AGOA had any
 impact on US trade with SSA? This paper sheds some light on this issue by
 examining the flow and composition of trade between the USA and AGOA
 countries. The analysis uses trade data (US imports) for 36 countries over
 12&#xa0;years. Empirical estimations based on the gravity model show that
 receiving AGOA status has a strong positive and significant impact on
 overall trade with the US. Interestingly, however, the analysis also shows
 a disproportionate impact of crude oil imports from the oil-producing
 countries of Angola, Gabon, and Nigeria, which is clearly not the intent
 of the Act.
Journal: The Journal of International Trade & Economic Development 
Pages: 1130-1151 
Issue: 8 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638199.2014.1000942 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.1000942 
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Template-Type: ReDIF-Article 1.0
Author-Name: Baybars Karacaovali 
Author-X-Name-First: Baybars 
Author-X-Name-Last: Karacaovali 
Title: Trade-diverting free trade agreements, external tariffs, and feasibility 
Abstract:
 There has been a proliferation of preferential trade agreements within the
 last two decades. This paper analyzes the effects of free trade agreements
 (FTAs) on external tariffs in small economies where protection decisions
 are made politically. Our model determines tariff rates endogenously
 instead of assuming they are fixed during or after the formation of FTAs
 as commonly done in the literature. We show that when an FTA is
 established, the tariff rates that apply to non-members essentially
 decline. More importantly, we investigate the interaction between
 endogenous tariff determination and the feasibility of an FTA. We find
 that the expectation of tariff reductions under endogenous tariffs could
 make an otherwise feasible FTA if tariffs were fixed become infeasible.
 However, if domestic import-competing sectors are relatively smaller and
 the government places a significant weight on political contributions
 relative to social welfare, an FTA with endogenous tariffs may be more
 likely to be feasible than an FTA assumed to fix external tariffs.
Journal: The Journal of International Trade & Economic Development 
Pages: 1-22 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2014.924657 
File-URL: http://hdl.handle.net/10.1080/09638199.2014.924657 
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Template-Type: ReDIF-Article 1.0
Author-Name: Tinh Doan 
Author-X-Name-First: Tinh 
Author-X-Name-Last: Doan 
Author-Name: Son Nguyen 
Author-X-Name-First: Son 
Author-X-Name-Last: Nguyen 
Author-Name: Huong Vu 
Author-X-Name-First: Huong 
Author-X-Name-Last: Vu 
Author-Name: Tuyen Tran 
Author-X-Name-First: Tuyen 
Author-X-Name-Last: Tran 
Author-Name: Steven Lim 
Author-X-Name-First: Steven 
Author-X-Name-Last: Lim 
Title: Does rising import competition harm local firm productivity in less advanced economies? Evidence from the Vietnam's manufacturing sector 
Abstract:
 This paper examines whether rising import penetration has an effect on the
 productivity of domestic firms. The study uses data on a 10-year
 unbalanced panel of firms in the manufacturing sector in Vietnam from 2000
 to 2009. Panel and instrumental variable methods are used to control firm
 heterogeneity and endogeneity of import penetration. We find statistically
 significant and negative effects of import competition on local
 firms&#x2019; productivity, but the effect in terms of magnitude is
 economically small. Further investigation shows no clear evidence of
 variations in the effects by firm size and technological level. However,
 we find that rising import penetration is associated with the likelihood
 of firm death.
Journal: The Journal of International Trade & Economic Development 
Pages: 23-46 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2015.1035739 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1035739 
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Template-Type: ReDIF-Article 1.0
Author-Name: Xianhua Wu 
Author-X-Name-First: Xianhua 
Author-X-Name-Last: Wu 
Author-Name: Yingying Wang 
Author-X-Name-First: Yingying 
Author-X-Name-Last: Wang 
Author-Name: Lingjuan Yang 
Author-X-Name-First: Lingjuan 
Author-X-Name-Last: Yang 
Author-Name: Shunfeng Song 
Author-X-Name-First: Shunfeng 
Author-X-Name-Last: Song 
Author-Name: Guo Wei 
Author-X-Name-First: Guo 
Author-X-Name-Last: Wei 
Author-Name: Ji Guo 
Author-X-Name-First: Ji 
Author-X-Name-Last: Guo 
Title: Impact of political dispute on international trade based on an international trade Inoperability Input-Output Model: A case study of the 2012 Diaoyu Islands Dispute 
Abstract:
 While political disputes occur frequently and widely among many countries,
 their impact on the international trade is unclear and less systematically
 investigated. Considering the 2012 Diaoyu Islands Dispute, under several
 premised assumptions, this paper applies the international trade
 Inoperability Input-Output Model to determine the indirect economic loss
 and to screen out Chinese industries that are sensitive to the dispute.
 Results based on Leontief's technical coefficients matrix show that the
 total indirect economic loss of China's gross trade is between RMB
 540.4226 billion and RMB 1023.3068 billion. Industries that are sensitive
 to the dispute include electrical equipment and machinery, general special
 equipment manufacturing, metal smelting and rolling processing,
 manufacture and processing of metals and metal products, and chemical. The
 empirical findings suggest that China establish an early-warning mechanism
 and trade assistance system, so that key industries that were damaged
 could be properly compensated.
Journal: The Journal of International Trade & Economic Development 
Pages: 47-70 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2015.1019552 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1019552 
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Template-Type: ReDIF-Article 1.0
Author-Name: Henry Thompson 
Author-X-Name-First: Henry 
Author-X-Name-Last: Thompson 
Title: A tariff on a productive factor and import competing supply 
Abstract:
 A tariff on an imported factor of production such as energy or capital
 reduces the import as well as output in the general equilibrium of a small
 open economy. The present paper shows real income may rise, however, due
 to an increase in the import competing quantity supplied. The present
 competitive economy produces a single exported output with two factors of
 production, one purely domestic. The import competing price elasticity,
 shares of income and output, and factor substitution determine general
 equilibrium adjustments to a tariff on the imported factor.
Journal: The Journal of International Trade & Economic Development 
Pages: 71-79 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2015.1023334 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1023334 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Jane Casabianca 
Author-X-Name-First: Elizabeth Jane 
Author-X-Name-Last: Casabianca 
Title: Distributional effects of multilateral and preferential trade liberalisation: The case of Paraguay 
Abstract:
 The aim of this work is to dissect the distributional impact of
 preferential and multilateral trade liberalisation on household well-being
 using individual level data for Paraguay never exploited so far. For this
 purpose, the intrazone and applied most favored nation (MFN) tariff
 pass-through rate on the prices of traded goods is estimated, and the
 impacts of trade induced price changes on households as consumers and as
 income earners are calculated. The results indicate that trade
 liberalisation has benefited households along the entire income
 distribution and, most importantly, show that these benefits differ
 according to the type of liberalisation policies implemented.
Journal: The Journal of International Trade & Economic Development 
Pages: 80-102 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2015.1041418 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1041418 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:1:p:80-102




Template-Type: ReDIF-Article 1.0
Author-Name: Tchai Tavor 
Author-X-Name-First: Tchai 
Author-X-Name-Last: Tavor 
Author-Name: Uriel Spiegel 
Author-X-Name-First: Uriel 
Author-X-Name-Last: Spiegel 
Title: The optimal supply of congested public goods for homogeneous and heterogeneous customers 
Abstract:
 Impure public goods resulting from the congestion effect are discussed in
 the literature solely for the case of homogenous populations where
 consumers have identical demands. We extend this to include heterogeneous
 populations, where demands are rectangularly distributed. We compare the
 optimal values of the control variables (quantity of the public good and
 the number of users) for both homogeneous and heterogeneous populations,
 as well as the social optimum values for both cases. We distinguish
 between two kinds of congestion effects: (1) increased usage which
 negatively affects the individual consumer's utility, and (2) the affect
 is located on the supply side, i.e. higher production costs due to an
 increased number of users.
Journal: The Journal of International Trade & Economic Development 
Pages: 103-130 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 2 
X-DOI: 10.1080/09638199.2015.1040054 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1040054 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alessia Lo Turco 
Author-X-Name-First: Alessia Lo 
Author-X-Name-Last: Turco 
Author-Name: Daniela Maggioni 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Maggioni 
Title: On tariff changes and firm-production evolution: insights from Turkish manufacturing 
Abstract:
 We contribute to the yet limited evidence on the relationship between
 trade liberalisation and a firm's product mix and diversification
 strategies for an emerging economy, Turkey. Lower import barriers foster
 firms&#x2019; specialisation in their core products. A drop in import
 tariffs, indeed, enhances a firm's propensity to drop fringe varieties and
 favours production growth of core products. More importantly, it favours
 firms&#x2019; specialisation in more sophisticated goods. Export tariff
 cuts, instead, by relaxing competitive pressure at home and lowering the
 cost to export, only reduce the firms&#x2019; incentive to innovate.
Journal: The Journal of International Trade & Economic Development 
Pages: 131-164 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1038846 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1038846 
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Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: On the relationship between public and private spending in developing and developed countries 
Abstract:
 Using annual data, the paper studies the time-series evidence regarding
 the effectiveness of government spending. The emphasis is on the
 relationship between public spending and private spending. The objective
 is to identify whether the effects of public spending on macro variables
 are reinforced or mitigated through the spillover effects on private
 spending. The evidence attests to the importance of stimulating private
 spending to maximize the positive effect of an increase in public spending
 on real growth. Concerns about the crowding out effects of higher public
 spending on private demand are more dominant in developing countries.
 Moreover, the scope for government spending to determine aggregate
 uncertainty is much larger in developing countries. Overall, the evidence
 attests to the importance of managing trends and variability of government
 spending towards maximizing the fiscal multiplier. The paper's evidence
 spells out potential to maximize the fiscal multiplier via private
 spending and concerns about the ineffectiveness of fiscal policy where
 crowding out concerns dominate.
Journal: The Journal of International Trade & Economic Development 
Pages: 165-191 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1048706 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1048706 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:2:p:165-191




Template-Type: ReDIF-Article 1.0
Author-Name: Islem Khefacha 
Author-X-Name-First: Islem 
Author-X-Name-Last: Khefacha 
Author-Name: Lotfi Belkacem 
Author-X-Name-First: Lotfi 
Author-X-Name-Last: Belkacem 
Title: Technology-based ventures and sustainable development: Cointegrating and causal relationships with a panel data approach 
Abstract:
 The aim of this article is to provide new empirical evidence on the
 causality between proxy variables of technology entrepreneurship and proxy
 variable of sustainable economic performance in a vector error correction
 model. It covers a sample of 13 countries participated to Global
 Entrepreneurship Monitor studies under the period 2002--2013. Building on
 a theoretical background that considers the adoption of new technologies
 through a dynamic process of creative destruction based on innovation as
 the most important factor for achieving long-term economic growth, the
 empirical investigation uses robust econometric techniques that are
 capable of estimating long-run cointegrating relationships in panel
 data.Our results support the idea that total entrepreneurship activity
 related to the technology sector leads to improve the sustainability of a
 nation in the long run. More importantly, our paper helps understand the
 nature of liaison between the creation of innovative and high-technology
 business and the presence of favorable social and environmental conditions
 for the well-being of a population.
Journal: The Journal of International Trade & Economic Development 
Pages: 192-212 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1048707 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1048707 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:2:p:192-212




Template-Type: ReDIF-Article 1.0
Author-Name: Nurullah Gur 
Author-X-Name-First: Nurullah 
Author-X-Name-Last: Gur 
Author-Name: Veysel Av&#x15f;ar 
Author-X-Name-First: Veysel 
Author-X-Name-Last: Av&#x15f;ar 
Title: Financial system, R&D intensity and comparative advantage 
Abstract:
 In this paper, we test whether financial system affects the export
 performance of R&D intensive industries. We consider four different
 dimensions of financial system: (1) financial development, (2) financial
 liberalization, (3) financial integration and (4) foreign banks. Our
 results show that financial development and financial integration increase
 exports relatively more in R&D intensive industries. These effects are
 highly robust. Financial liberalization and foreign banks do not have such
 effects. Our results also show that the positive effect of financial
 integration disappears when the quality of institutions and the level of
 financial development are low. To the best of our knowledge, this paper is
 the first study that examines the effects of different dimensions of
 financial system on exports through R&D channel.
Journal: The Journal of International Trade & Economic Development 
Pages: 213-239 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1045928 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1045928 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:2:p:213-239




Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Portela Forte 
Author-X-Name-First: Rosa Portela 
Author-X-Name-Last: Forte 
Title: Multinational firms and host country market structure: A review of empirical literature 
Abstract:
 We address the impact of multinationals on host country market structure
 through reviewing existing empirical literature. Our main conclusion is
 that the majority of studies focus on samples of manufacturing
 industries/firms, neglecting the service sector, despite its importance.
 Future research should be directed to this sector and explore the
 possibility of bidirectional causality between foreign presence and host
 country industry concentration. Studies concerning the impact of
 multinationals on entry, exit and survival of host country firms must use
 more recent data, investigate the role of vertical linkages and taking
 into account other control variables that may affect the exit rate.
 Finally, future work should take into account the mode of foreign firm
 establishment in the host country.
Journal: The Journal of International Trade & Economic Development 
Pages: 240-265 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1049198 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1049198 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:2:p:240-265




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Edwards 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Edwards 
Author-Name: Neil Rankin 
Author-X-Name-First: Neil 
Author-X-Name-Last: Rankin 
Title: Is Africa integrating? Evidence from product markets 
Abstract:
 This paper presents a price-based assessment of product market integration
 in Africa using disaggregated retail prices for 91 products and 12 African
 cities from 1991 to 2008. We find evidence of substantial deviations from
 the law of one price &#x2212; product price differences between the cities
 averaged 76% over the period -- a result that is consistent with the
 presence of large barriers to trade in the continent. Mean price
 differences across cities fell by close to a quarter over the period, but
 the decline was concentrated in the early 1990s with little progress
 subsequently, despite the regional trade policies implemented by the
 countries. Gravity-style estimates reveal that reductions in external
 tariffs and global trends towards price convergence in the early 1990s are
 the key contributors to the trend in price integration amongst the African
 cities.
Journal: The Journal of International Trade & Economic Development 
Pages: 266-289 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 3 
X-DOI: 10.1080/09638199.2015.1064158 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1064158 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:2:p:266-289




Template-Type: ReDIF-Article 1.0
Author-Name: Syeda Tamkeen Fatima 
Author-X-Name-First: Syeda Tamkeen 
Author-X-Name-Last: Fatima 
Title: Productivity spillovers from foreign direct investment: evidence from Turkish micro-level data 
Abstract:
 This paper analyzes the productivity spillovers from foreign direct
 investment (FDI) using Turkish firm-level data for a more recent time
 period, 2003--2010, which coincides with significant FDI inflows both in
 manufacturing and service sectors in the region. The empirical model is
 derived from endogenous growth theory whereby the rate of technological
 progress is partly determined by technology transfers and spillovers from
 international contacts, our exclusive focus being on FDI-induced
 spillovers. The impact of FDI onto the firm-level productivity is
 evaluated via the channels of horizontal and vertical linkages. The
 empirical results show that horizontal linkages decrease the productivity
 of firms, whereas vertical linkages exert a positive impact onto the local
 productivity levels, thereby drawing attention of policy makers towards
 strengthening of supplier--buyer relationship between local and
 multinationals in order to optimize the benefits from FDI. This study also
 acknowledges the heterogeneity of local (foreign) firms and their
 differential capacity to absorb (exude) the FDI-induced externalities.
Journal: The Journal of International Trade & Economic Development 
Pages: 291-324 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1050057 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1050057 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:3:p:291-324




Template-Type: ReDIF-Article 1.0
Author-Name: Omar G. Aziz 
Author-X-Name-First: Omar G. 
Author-X-Name-Last: Aziz 
Author-Name: Anil V. Mishra 
Author-X-Name-First: Anil V. 
Author-X-Name-Last: Mishra 
Title: Determinants of FDI inflows to Arab economies 
Abstract:
 The paper studies location determinants of foreign direct investment (FDI)
 to 16 Arab economies over the period from 1984 to 2012, by employing
 Arellano--Bover/Blundell--Bond linear dynamic panel data estimation. We
 find that market size, trade openness, preferential trade agreements and
 financial development have significant positive impact on FDI inflows to
 Arab economies. FDI in Arab economies appears to be resource seeking since
 the total oil supply variable is positive and significant. The paper finds
 that better institutions and educated labour force may play a key role in
 attracting FDI inflows. We suggest that Arab economies should sequence
 their economic policy measures with the institutional ones, beginning with
 a focus on privatization and trade liberalization, and subsequently shift
 to improvement in economic growth.
Journal: The Journal of International Trade & Economic Development 
Pages: 325-356 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1057610 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1057610 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chi Wei Su 
Author-X-Name-First: Chi Wei 
Author-X-Name-Last: Su 
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: Chengsi Zhang 
Author-X-Name-First: Chengsi 
Author-X-Name-Last: Zhang 
Title: Nonlinear Taylor rules in Central Eastern European countries 
Abstract:
 This study applies sequential panel selection method (SPSM), proposed by
 Chortareas and Kapetanios (2009), to investigate to test the validity of
 Taylor rules to assess the nonstationary properties of the convergence of
 the real exchange rates for 10 Central Eastern European countries. The
 SPSM can be used to decompose a panel of real exchange rate series into
 two groups: a group of stationary series and a group of nonstationary
 series. We identify the stationary processes in the panel and demonstrate
 that Taylor rules holds for 7 of the 10 countries studied. These results
 imply that the choices and effectiveness of the monetary policies in
 Central Eastern European economies are highly influenced by external
 factors originating from the United States. Additionally, our findings
 highlight that their real exchange rate convergence is a mean reversion
 toward equilibrium values of Taylor rules in a nonlinear manner.
Journal: The Journal of International Trade & Economic Development 
Pages: 357-376 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1054862 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1054862 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ole Boysen 
Author-X-Name-First: Ole 
Author-X-Name-Last: Boysen 
Author-Name: Hans Grinsted Jensen 
Author-X-Name-First: Hans Grinsted 
Author-X-Name-Last: Jensen 
Author-Name: Alan Matthews 
Author-X-Name-First: Alan 
Author-X-Name-Last: Matthews 
Title: Impact of EU agricultural policy on developing countries: A Uganda case study 
Abstract:
 Despite substantial reforms, the European Union (EU)'s Common Agricultural
 Policy (CAP) is still criticised for its detrimental effects on developing
 countries. This paper provides updated evidence on the impact of the CAP
 on one developing country, Uganda. It goes beyond estimating macrolevel
 economic effects by analysing the impacts on poverty. The policy
 simulation results show that eliminating EU agricultural support would
 have marginal but nonetheless positive impacts on the Ugandan economy and
 its poverty indicators. From the perspective of the EU's commitment to
 policy coherence for development, this supports the view that further
 reducing EU agricultural support would be positive for development.
Journal: The Journal of International Trade & Economic Development 
Pages: 377-402 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1069884 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1069884 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:3:p:377-402




Template-Type: ReDIF-Article 1.0
Author-Name: Rapha&#xeb;l Chiappini 
Author-X-Name-First: Rapha&#xeb;l 
Author-X-Name-Last: Chiappini 
Title: Do overseas investments create or replace trade? New insights from a macro-sectoral study on Japan 
Abstract:
 This paper investigates the relationship between outward foreign direct
 investment (FDI) and exports and imports from Japan, employing an
 augmented standard gravity model. Several econometric techniques,
 including the Gamma Pseudo Maximum Likelihood estimator, are used to
 rectify possible problems of heteroskedasticity and zero trade flows
 inherent in the estimation of gravity models of trade. The major finding
 is that outward FDI is trade enhancing for the Japanese manufacturing
 industry. However, we find that whether outward FDI creates or replaces
 trade depends on the industry under scrutiny. Our results indicate that
 the complementary relationship between FDI and trade is dominant in
 Japanese manufacturing, especially in the food and beverages, electric
 machinery, primary metals, and precision machinery sectors. We find also
 that Japanese overseas investments substitute for imports of chemical
 products, and for both exports and imports of general machinery.
Journal: The Journal of International Trade & Economic Development 
Pages: 403-425 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1062906 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1062906 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:3:p:403-425




Template-Type: ReDIF-Article 1.0
Author-Name: Darong Dai 
Author-X-Name-First: Darong 
Author-X-Name-Last: Dai 
Author-Name: Kunrong Shen 
Author-X-Name-First: Kunrong 
Author-X-Name-Last: Shen 
Title: IPR protection vs. innovation subsidy: What is the choice for the emerging South? 
Abstract:
 In this paper, we use a classical variety-expanding growth model to
 analyze the policy or institutional-arrangement choice for the Southern
 government who faces the tradeoff between imitating Northern innovation
 without cost and encouraging domestic innovation. We assume that the
 Southern government fully respects the principle of non-discrimination and
 hence treats both imitations, i.e., imitation of Northern innovation and
 imitation of domestic innovation, equally. For a given state of the
 economy, we explicitly and uniquely establish an optimal degree of
 intellectual property rights (IPR) protection for the South. Then, we find
 that there is a complementary relationship between optimal IPR protection
 and the innovation subsidy policy, which implies that they form an
 effective policy mix, hence offering a useful insight for avoiding
 ineffective policy conflicts widely occurred in real-world economies.
Journal: The Journal of International Trade & Economic Development 
Pages: 426-451 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1060625 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1060625 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:3:p:426-451




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Aftab 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Aftab 
Author-Name: Karim Bux Shah Syed 
Author-X-Name-First: Karim Bux Shah 
Author-X-Name-Last: Syed 
Author-Name: Rubi Ahmad 
Author-X-Name-First: Rubi 
Author-X-Name-Last: Ahmad 
Author-Name: Izlin Ismail 
Author-X-Name-First: Izlin 
Author-X-Name-Last: Ismail 
Title: Exchange-rate variability and industry trade flows between Malaysia and Japan 
Abstract:
 This research investigates the exchange-rate risk sensitivity of Malaysian
 bilateral trade flows with its important trading partner, Japan. To this
 end, bounds testing approach to co-integration is applied using industry
 level data over the monthly period 2000--2013. Findings suggest that above
 the one-third of the total co-integrated export (43.86%) and import
 (34.54%), industries experiences the ringgit/yen variability effect in the
 short run. However, this effect sustains in relatively less number of
 export (14.03%) and import (32.73%) industries in the long run. It is
 interesting to note that exchange-rate risk boosts trade flows in the
 majority of these affected industries.
Journal: The Journal of International Trade & Economic Development 
Pages: 453-478 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1065901 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1065901 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Emilia Barbu 
Author-X-Name-First: Emilia 
Author-X-Name-Last: Barbu 
Author-Name: Xueda Song 
Author-X-Name-First: Xueda 
Author-X-Name-Last: Song 
Title: The effects of offshoring on employer-provided training<xref ref-type="fn" rid="FN0001"/> 
Abstract:
 This study examines how offshoring affects employers&#x2019; investment in
 training. Departing from the standard assumption in the literature that
 low-skilled jobs are transferred to developing countries while
 high-skilled jobs are still performed in the Home Country, we argue that
 whether a productive activity is offshored depends on whether its
 associated occupation is offshorable, regardless of its skill content. Our
 theoretical model suggests that the offshoring of productive activities
 involving offshorable occupations raises the wage rate for non-offshorable
 occupations in the Home Country, and thus reduces the incentive for firms
 to provide training in non-offshorable occupations. The effects of
 offshoring on training for offshorable occupations, however, are
 ambiguous. Based on two new measures of offshoring and data from the
 National Longitudinal Survey of Youth 1979 (1989--2004), we empirically
 investigate the relationship between offshoring and employer-provided
 training in the United States. For non-offshorable occupations, we find
 that offshoring has a significant negative relationship with the incidence
 of training, but does not have much, if any, significant relationship with
 the intensity of training. For offshorable occupations, offshoring does
 not have any significant relationship with either the incidence or the
 intensity of employer-provided training. These findings are in line with
 our theoretical model.
Journal: The Journal of International Trade & Economic Development 
Pages: 479-503 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1068838 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1068838 
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Template-Type: ReDIF-Article 1.0
Author-Name: Christian Daude 
Author-X-Name-First: Christian 
Author-X-Name-Last: Daude 
Author-Name: Arne Nagengast 
Author-X-Name-First: Arne 
Author-X-Name-Last: Nagengast 
Author-Name: Jose Ramon Perea 
Author-X-Name-First: Jose Ramon 
Author-X-Name-Last: Perea 
Title: Productive capabilities: An empirical analysis of their drivers 
Abstract:
 Recent contributions to the growth and trade literature have argued that
 the structure of an economy, as measured by its productive capabilities,
 is a key determinant for inter-country differences in development.
 Productive capabilities have been shown to be highly predictive of future
 economic growth, yet the country-level variables associated with them
 remain relatively unknown. In this paper, we empirically explore what
 variables are systematically associated with productive capabilities using
 a model averaging framework that can handle a very large number of
 potential explanatory variables without the need for arbitrary model
 selection. In order to estimate our dynamic panel specification, we
 propose a novel Bayesian averaging of classical estimates procedure based
 on the simple and efficient bias-corrected least squares dummy variable
 estimator. Our baseline and robustness analysis consider a large number of
 variables, sample periods and model priors. We find that there is
 persistence (as measured by the lagged dependent variable) and that
 variables, such as commodity terms of trade, energy availability,
 government consumption, capital per worker, arable land and capital
 inflows show a strong and robust association with capabilities.
Journal: The Journal of International Trade & Economic Development 
Pages: 504-535 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1073342 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1073342 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bethuel Kinyanjui Kinuthia 
Author-X-Name-First: Bethuel Kinyanjui 
Author-X-Name-Last: Kinuthia 
Title: Technology spillovers: Kenya and Malaysia compared 
Abstract:
 This paper aimed at investigating the existence of productivity spillovers
 and their transmission channels in both Kenya and Malaysia firm-level
 panel data from the manufacturing sector for the period 2000--2005. Both
 countries have a long history of relying on FDI in industrial development.
 The existing literature on productivity spillovers suggests that
 productivity spillovers may be one of the most important effects that
 foreign MNEs impart to local firms in developing countries. Yet still, few
 studies exist in both countries on productivity spillovers and their
 transmission channels. Three spillover channels were examined:
 demonstration, competition, and information. In addition, the backward
 linkage channel was examined for the case of Malaysia. The results reveal
 that there is limited evidence of negative productivity spillovers from
 foreign firms to domestic firms through the competition effects in Kenya.
 In Malaysia, there is evidence of positive spillovers from foreign-owned
 firms to domestic firms through the demonstration effects. In addition,
 there is evidence of negative spillovers through the competition effects
 as well as backward linkages. There is also evidence of positive
 productivity spillovers from domestic firms to foreign-owned firms through
 backward linkages. Productivity spillovers are found to be dependent on
 the technology gap.
Journal: The Journal of International Trade & Economic Development 
Pages: 536-569 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1084524 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1084524 
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Template-Type: ReDIF-Article 1.0
Author-Name: Nurgun Topalli 
Author-X-Name-First: Nurgun 
Author-X-Name-Last: Topalli 
Author-Name: &#x130;brahim Dogan 
Author-X-Name-First: &#x130;brahim 
Author-X-Name-Last: Dogan 
Title: The structure and sustainability of current account deficit: Turkish evidence from regime switching 
Abstract:
 This study focuses on the current account deficit dynamics and
 sustainability, using data of the period between 1990:Q1 and 2014:Q2 in
 the context of Turkish economy. The main findings of the study can be put
 into two categories. The first category covers energy consumption,
 openness rate, gross domestic product, exchange rate and investments,
 which are the most important determinants of the current deficit. The
 second one asserts that sustainability is weak for Turkish economy;
 however, it is even weaker during the economic contraction. There is
 extensive literature about structure and sustainability of the current
 account deficit. However, many of the studies have analysed the
 sustainability of the current account deficits without considering the
 economic conjuncture. For this purpose, the study employs the
 Markov-switching method which is a non-linear time series model.
Journal: The Journal of International Trade & Economic Development 
Pages: 570-589 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1090472 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1090472 
File-Format: text/html
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:4:p:570-589




Template-Type: ReDIF-Article 1.0
Author-Name: Heike Belitz 
Author-X-Name-First: Heike 
Author-X-Name-Last: Belitz 
Author-Name: Florian M&#xf6;lders 
Author-X-Name-First: Florian 
Author-X-Name-Last: M&#xf6;lders 
Title: International knowledge spillovers through high-tech imports and R&D of foreign-owned firms 
Abstract:
 The international transmission of knowledge through import spillovers, as
 a source of Total Factor Productivity (TFP) growth, has received much
 attention in the literature. We investigate two additional direct channels
 through which R&D disseminates: the import of high-technology goods and
 the internationalization of business R&D. Building on an extensive
 data-set, covering both developing and industrial countries, we add
 foreign-owned patents as a proxy for R&D activities of foreign
 multinationals. While we confirm the significance of import spillovers for
 all countries included, we find additional spillovers for developing
 countries through the import of high-technology goods. Only developed
 economies seem to benefit from the diffusion of knowledge that originates
 through cross-border cooperation in R&D by multinationals.
Journal: The Journal of International Trade & Economic Development 
Pages: 590-613 
Issue: 4 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638199.2015.1106575 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1106575 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:4:p:590-613




Template-Type: ReDIF-Article 1.0
Author-Name: N. Nergiz Dincer 
Author-X-Name-First: N. Nergiz 
Author-X-Name-Last: Dincer 
Author-Name: Ay&#xe7;a Tekin-Koru 
Author-X-Name-First: Ay&#xe7;a 
Author-X-Name-Last: Tekin-Koru 
Title: A league of their own: services exporters -- a developing country perspective 
Abstract:
 This paper provides a firm-level portrait of services exporters along with
 goods exporters in a developing country. Current findings of firm-level
 services trade literature suggest that the stylized facts of goods trade
 apply to services trade as well for a set of developed countries. This
 paper investigates if similar results hold for a developing country,
 Turkey, for the period 2003--2008. Most results lend support to the
 evidence found in the previous literature. However, the analysis of
 Turkish data shows that firms that export both goods and services are
 larger than those exporting goods or services only while multinationals
 that sell only goods are bigger than multinationals exporting both goods
 and services or those exporting only services.
Journal: The Journal of International Trade & Economic Development 
Pages: 615-635 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1103776 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1103776 
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Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Rhetorics of saving--investment correlations and the international mobility of capital: A survey 
Abstract:
 This study surveys the literature on saving--investment (SI) correlations
 and international mobility of capital (IMC) generated over more than three
 decades since the 1980s. Several studies have shown the presence of
 paradoxically high SI correlations for the developed countries with
 observed high IMC, and low SI correlations for the developing countries
 with observed low IMC. The studies accounting for structural breaks in
 model parameters provide dominant support for the decrease in SI
 correlations and increase in IMC after the switch from fixed to flexible
 exchange rate regime and the removal of policy restrictions on capital
 flows. The intertemporal optimisation approach to current account and the
 open-economy growth and dynamic stochastic general equilibrium models
 mainly provide theoretical predictions and suggest that it is possible to
 find high SI correlations in the wake of high IMC. The increases in
 international capital flows have been the natural corollary of the growth
 of international trade in goods and services and increases in foreign
 direct investment flows. It is these factors, rather than international
 trade in capital market securities (bonds and equities) driven by the
 diversification benefits of financial portfolios per se, that have been
 the key levers of international financial flows.
Journal: The Journal of International Trade & Economic Development 
Pages: 636-690 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1118526 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1118526 
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Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Asali 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Asali 
Author-Name: Adolfo Cristobal-Campoamor 
Author-X-Name-First: Adolfo 
Author-X-Name-Last: Cristobal-Campoamor 
Author-Name: Avner Shaked 
Author-X-Name-First: Avner 
Author-X-Name-Last: Shaked 
Title: Local human capital formation and optimal FDI 
Abstract:
 This paper lends both theoretical and empirical support to the notion of
 optimal foreign direct investment (FDI) levels. It does so by uncovering
 an inverted-U-shaped relationship between FDI and human capital formation.
 The optimality of a particular FDI inflow depends on the educational
 incentives induced by FDI on the local, heterogeneous population. Our
 estimates confirm the significance of a positive (linear) and a negative
 (non-linear) impact of FDI stocks on tertiary schooling, which are
 exclusively relevant in developing countries.
Journal: The Journal of International Trade & Economic Development 
Pages: 691-705 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1118527 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1118527 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:5:p:691-705




Template-Type: ReDIF-Article 1.0
Author-Name: Korhan G&#xf6;kmeno&#x11f;lu 
Author-X-Name-First: Korhan 
Author-X-Name-Last: G&#xf6;kmeno&#x11f;lu 
Author-Name: Nigar Taspinar 
Author-X-Name-First: Nigar 
Author-X-Name-Last: Taspinar 
Title: The relationship between Co<sub>2</sub> emissions, energy consumption, economic growth and FDI: the case of Turkey 
Abstract:
 This study investigates the relevance of the environmental Kuznets curve
 (EKC) hypothesis in Turkey for the period 1974--2010 using carbon dioxide
 (CO<sub>2</sub>) emissions, energy consumption, economic growth, and
 foreign direct investment (FDI) variables. The long-run equilibrium
 relationship among CO<sub>2</sub> emissions, energy consumption, economic
 growth, and FDI is revealed using the bounds test. The error correction
 model under autoregressive-distributed lag mechanism suggests that
 CO<sub>2</sub> emissions converge to their long-run equilibrium level by a
 49.2% speed of adjustment every year by the contribution of energy
 consumption, economic growth, and FDI. The Toda--Yamamoto (1995) causality
 test results imply that carbon emissions and FDI, energy consumption, and
 CO<sub>2</sub> emissions have bidirectional causal relationships. On the
 other hand, there are unidirectional causal relationships running from
 economic growth and energy consumption to FDI and from economic growth to
 energy consumption. Our findings provide evidence of the validity of the
 pollution haven hypothesis, in addition to the scale effect, and the EKC
 in the case of Turkey.
Journal: The Journal of International Trade & Economic Development 
Pages: 706-723 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1119876 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1119876 
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Template-Type: ReDIF-Article 1.0
Author-Name: Fernando&#x2009; Martin-Mayoral 
Author-X-Name-First: Fernando&#x2009; 
Author-X-Name-Last: Martin-Mayoral 
Author-Name: Gabriela&#x2009; Mor&#xe1;n Carofilis 
Author-X-Name-First: Gabriela&#x2009; 
Author-X-Name-Last: Mor&#xe1;n Carofilis 
Author-Name: John&#x2009; Cajas Guijarro 
Author-X-Name-First: John&#x2009; 
Author-X-Name-Last: Cajas Guijarro 
Title: The effects of integration agreements in Western Hemisphere trade, 1970--2014 
Abstract:
 The paper analyzes the effects of four regional integration agreements
 (Common Market of the South [MERCOSUR], Andean Community [ANCOM], Central
 American Common Market [CACM] and North America Free Trade Agreement
 [NAFTA]) on bilateral trade in 19 countries from the Western Hemisphere
 for the period 1970--2014. For this purpose we estimate different gravity
 models to control for trade creation and diversion, export diversification
 and intra-industry trade using OLS log-linearized gravity model and
 Poisson pseudo-maximum-likelihood panel data estimators that allow
 controlling for zero-value trade flows. We find trade creation for ANCOM,
 MERCOSUR and CACM and trade diversion for NAFTA and MERCOSUR countries.
 Export diversification negatively affects bilateral trade in all American
 agreements, while intra-industry trade has contributed to trade expansion
 in ANCOM and the opposite for NAFTA, MERCOSUR and CACM. Global supply
 chains may help us explain these results. Finally, we find anticipatory
 effects on trade several years before the signing of the agreements, but
 only NAFTA countries seem to be natural trading partners in the region
 while the rest of Latin American regional agreements have not resulted in
 a comprehensive, profound and consolidated common market.
Journal: The Journal of International Trade & Economic Development 
Pages: 724-756 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1125519 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1125519 
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Template-Type: ReDIF-Article 1.0
Author-Name: Xian-Liang Tian 
Author-X-Name-First: Xian-Liang 
Author-X-Name-Last: Tian 
Title: Participation in export and Chinese firms&#x2019; capacity utilization 
Abstract:
 This paper first sets up a firm heterogeneity trade model and shows that
 given capital stock and productivity, export firms will have higher rates
 of capacity utilization. In addition, given capital stock and fixed export
 costs, firms with higher productivity are more likely to export. I then
 use the 2012 Chinese enterprise survey from the World Bank to empirically
 investigate the impact of participation in export on Chinese firms&#x2019;
 capacity utilization rate. The results show that on average, export firms
 have capacity utilization rate 1.55--2.01 percent higher than non-export
 firms, which amounts to 14.6--18.9 percent of the standard deviation of
 capacity utilization rate in the sample. I also find that firms with a
 larger part of shares owned by the government have lower capacity
 utilization. Stronger market competition leads to over-investment and
 therefore lower capacity utilization rate. Faced with more rigorous labor
 market regulation, firms will substitute capital for the use of labor,
 resulting in higher capacity utilization rate.
Journal: The Journal of International Trade & Economic Development 
Pages: 757-784 
Issue: 5 
Volume: 25 
Year: 2016 
Month: 8 
X-DOI: 10.1080/09638199.2015.1128473 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1128473 
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Template-Type: ReDIF-Article 1.0
Author-Name: Luciano Fanti 
Author-X-Name-First: Luciano 
Author-X-Name-Last: Fanti 
Author-Name: Domenico Buccella 
Author-X-Name-First: Domenico 
Author-X-Name-Last: Buccella 
Title: Strategic trade policy and union-firm bargaining agenda 
Abstract:
 In this paper, we revisit the issue of the scope of bargaining between
 duopolistic firms and unions in an open economy with strategic trade
 policy. It is shown that, in contrast with the case of the absence of
 export tax/subsidy, a right-to-manage (RTM) arrangement always emerges
 endogenously as a sub-game perfect Nash equilibrium in agreement between
 parties. Moreover, such an arrangement may be also Pareto-optimal in both
 exporting countries in the sense that profits, workers' welfare (provided
 that union's power is sufficiently high) and social welfare as a whole are
 higher than the efficient bargaining (EB) arrangement. Moreover, since the
 government of the country in which there is EB (while in the other country
 the alternative agenda RTM is used) levies a tax on export, then the
 conventional result that under quantity competition it is always optimal
 for exporting countries to subsidise exports may be reversed.
Journal: The Journal of International Trade & Economic Development 
Pages: 787-808 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2015.1130078 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1130078 
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Template-Type: ReDIF-Article 1.0
Author-Name: Amal Hili 
Author-X-Name-First: Amal 
Author-X-Name-Last: Hili 
Author-Name: Rim Lahmandi-Ayed 
Author-X-Name-First: Rim 
Author-X-Name-Last: Lahmandi-Ayed 
Author-Name: Hejer Lasram 
Author-X-Name-First: Hejer 
Author-X-Name-Last: Lasram 
Title: Differentiation, labor market and globalization 
Abstract:
 We consider two countries with initially one firm in each country and the
 possibility for each firm to invest in the other country or commercialize
 its products, and for workers to immigrate (Common Labor Market; CLM).
 Interestingly, when firms compete on the product market with no
 competition on the labor market (Goods&#x2019; Mobility; GM), they do not
 differentiate their qualities. However, when competition is introduced in
 both markets (Foreign Investment; FI) firms differentiate their products.
 We compare the globalization scenarii and prove that they improve the
 global social welfare relative to autarky and that a cooperative choice by
 countries of a globalization scenario would lead to GM.
Journal: The Journal of International Trade & Economic Development 
Pages: 809-833 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2015.1136832 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1136832 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chia Yi Cheng 
Author-X-Name-First: Chia Yi 
Author-X-Name-Last: Cheng 
Author-Name: Chen Fu Lu 
Author-X-Name-First: Chen Fu 
Author-X-Name-Last: Lu 
Author-Name: Yu Hui Chen 
Author-X-Name-First: Yu Hui 
Author-X-Name-Last: Chen 
Title: Does Taiwan's entry into the WTO truly reduce its agricultural output values? 
Abstract:
 This study has used the time series data of Australia, China, Denmark,
 India, Japan, the Netherlands, Norway, the Philippines, South Korea,
 Spain, and the United States from the World Bank to estimate the
 agricultural economic shock of Taiwan's accession to the World Trade
 Organization (WTO). We have adopted the recently developed panel data
 approach  for policy evaluation to construct the annual agricultural
 growth path of Taiwan, which is mainly based on the cross-sectional
 correlations between the domestic and international agricultural trade
 markets in the absence of Taiwan's entry into the WTO. Our results have
 not only revealed the importance of <italic>ex post</italic>
 counterfactual analysis, but also provided empirical evidence that the
 agricultural economic shock is not as severe as predicted by many
 <italic>ex ante</italic> studies. Based on these results, we have
 concluded that the outcome may have arisen from the slow progress of
 achieving agricultural trade liberalization under the WTO and the
 Taiwanese Government's effective adoption of phase-in periods and relative
 adjustment policies.
Journal: The Journal of International Trade & Economic Development 
Pages: 834-856 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2016.1138238 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1138238 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chi Wei Su 
Author-X-Name-First: Chi Wei 
Author-X-Name-Last: Su 
Author-Name: Heng-Guo Zhang 
Author-X-Name-First: Heng-Guo 
Author-X-Name-Last: Zhang 
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: Rui Nian 
Author-X-Name-First: Rui 
Author-X-Name-Last: Nian 
Title: Is exchange rate stability beneficial for stabilizing consumer prices in China? 
Abstract:
 This study examines the relationship between real effective exchange rates
 (REERs) and the consumer price index (CPI) in China, utilizing a bootstrap
 Granger full-sample causality test and a sub-sample rolling-window
 estimation. Considering structural changes, we assess the stability of the
 parameters and find that both the short-run and long-run relationships
 between the two estimated variables are unstable. This result suggests
 that full-sample causality tests cannot be relied upon. We instead employ
 a time-varying (bootstrap) rolling-window approach to revisit the dynamic
 causal relationship, and we find that the CPI is affected by the REER for
 several sub-samples due to the role of exchange rate pass-through (ERPT)
 under the managed floating exchange rate regime in China. These findings
 provide further proof of the impact of stable exchange rates on the
 maintenance of relatively steady price levels especially during the
 economic crisis and economic reform in China. The policy implication of
 these findings is that maintaining exchange rate stability is beneficial
 for controlling inflation during the economic crisis and economic reform.
Journal: The Journal of International Trade & Economic Development 
Pages: 857-879 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2016.1142605 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1142605 
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Template-Type: ReDIF-Article 1.0
Author-Name: Karam Shaar 
Author-X-Name-First: Karam 
Author-X-Name-Last: Shaar 
Author-Name: Mohamed Ariff 
Author-X-Name-First: Mohamed 
Author-X-Name-Last: Ariff 
Title: Re-examination of price level differentials using economic freedom index 
Abstract:
 Findings reported in this paper provide improved explanation as to what
 factors are correlated with price levels across a large sample of 152
 countries. The results are obtained from using a new set of variables
 called economic freedom indices, covering 19&#xa0;years. Prior studies
 used income, trade openness, and productivity, which led to results with
 much less explanatory power compared to findings reported in this paper.
 We apply advanced panel data econometrics to obtain robust estimates of
 parameters, which, in our view, led to results with substantially high
 coefficient of variations close to 90%. The findings show that all the
 nine dimensions of economic freedom used in this study significantly
 account for the variations in national price levels.
Journal: The Journal of International Trade & Economic Development 
Pages: 880-896 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2015.1137345 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1137345 
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Template-Type: ReDIF-Article 1.0
Author-Name: Parviz Asheghian 
Author-X-Name-First: Parviz 
Author-X-Name-Last: Asheghian 
Title: GDP growth determinants and foreign direct investment causality: the case of Iran 
Abstract:
 Given the economic conditions in Iran and the need to accelerate its
 economic growth, there is a rising interest in examining the variables
 that fuel its GDP growth. The scant literature on economic growth in Iran
 is composed of only a few scholarly studies that investigate this nation's
 GDP growth. However, none of these studies has examined the causality
 between GDP growth and its determining elements. The purpose of this study
 is: (1) to determine the economic variables that contribute to Iran's GDP
 per capita growth over time, and (2) to examine the causality between
 foreign direct investment and the relevant variables that are included in
 the model. To achieve these goals the study uses a model that is based on
 the postulates of de Mello. The results indicate that: (1) the major
 determinants of GDP per capita growth in Iran are value added growth and
 domestic investment growth; (2) there is no causal relationship between
 foreign direct investment growth and GDP per capita growth in Iran in
 either direction; and (3) there is no causal relationship between foreign
 direct investment growth and value added growth in Iran in either
 direction.
Journal: The Journal of International Trade & Economic Development 
Pages: 897-913 
Issue: 6 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638199.2016.1145249 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1145249 
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Template-Type: ReDIF-Article 1.0
Author-Name: Cong S. Pham 
Author-X-Name-First: Cong S. 
Author-X-Name-Last: Pham 
Author-Name: Mehmet Ali Uluba&#x15f;o&#x11f;lu 
Author-X-Name-First: Mehmet Ali 
Author-X-Name-Last: Uluba&#x15f;o&#x11f;lu 
Title: The role of endowments, technology and size in international trade: new evidence from product-level data 
Abstract:
 Using product-level trade data, we empirically investigate the export
 patterns of more than 150 countries in their exports to the USA, Brazil,
 India, and Japan. We document strong evidence that exporters specialize
 according to their relative factor endowments, technology, and economic
 size. More developed, capital abundant countries are found to export
 products of higher unit values and a wider range of products to developed,
 emerging and developing markets. More developed, economically larger, and
 technologically advanced countries are also the major exporters of new
 products, spanning a wide range of product categories with high unit
 values. Our findings provide important insights into the macro phenomenon
 that a large proportion of the global trade takes place among developed
 economies, and that the latter are also major exporters to developing
 markets.
Journal: The Journal of International Trade & Economic Development 
Pages: 913-937 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2015.1126625 
File-URL: http://hdl.handle.net/10.1080/09638199.2015.1126625 
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Template-Type: ReDIF-Article 1.0
Author-Name: Atif Awad 
Author-X-Name-First: Atif 
Author-X-Name-Last: Awad 
Author-Name: Ishak Youssof 
Author-X-Name-First: Ishak 
Author-X-Name-Last: Youssof 
Title: The impact of economic globalisation on unemployment: The Malaysian experience 
Abstract:
 Malaysia plans to emerge as one of the high-income economies by 2020
 through the Economic Transformation Programme. A key component of this
 programme is to adopt more trade liberalisation policies that can generate
 a variety of economic activities, particularly more jobs. Although the
 integration with the world market bears the promise of prosperity for the
 developing and transitional economies, such integration may also adversely
 affect such economies. Preceding studies regarding labour market and
 international trade policies are still inconclusive and raise questions
 that require further examination; particularly in terms of whether
 exposure to the external sector can create or destroy jobs. The present
 study evaluates how Malaysia labour market has responded to the economic
 globalisation of the country. The study focuses on the long-run impact of
 economic globalisation on unemployment within the period between 1980 and
 2014. The study uses autoregressive distributive lags method to examine
 the pattern of the relationship. The results show that economic
 globalisation have significant and positive impact on reducing
 unemployment in Malaysia in the long run. These findings indicate that
 policy-makers in Malaysia should facilitate the economy globalisation to
 maintain the current low level of unemployment rate.
Journal: The Journal of International Trade & Economic Development 
Pages: 938-958 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2016.1151069 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1151069 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bulent Guloglu 
Author-X-Name-First: Bulent 
Author-X-Name-Last: Guloglu 
Author-Name: Guzin Bayar 
Author-X-Name-First: Guzin 
Author-X-Name-Last: Bayar 
Title: Sectoral exports dynamics of Turkey: Evidence from panel data estimators 
Abstract:
 This study aims to determine the most important factors affecting sectoral
 exports dynamics of Turkey and to estimate sectoral exports elasticities.
 It then relates sectoral elasticities to factor and technology
 intensities. The study uses three recent panel data estimators, Mean
 Group, Augmented Mean Group and Common Correlated Effects Mean Group
 estimators, all of which take into consideration slope heterogeneity and
 the last two also taking into consideration cross-sectional dependency.
 The results obtained show that foreign demand and productivity are
 important determinants of Turkish exports. In addition, sectoral
 elasticities vary across sectors, tending to be greater in some sectors
 where factor and technology intensities are the main distinctive features.
Journal: The Journal of International Trade & Economic Development 
Pages: 959-977 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2016.1157886 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1157886 
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Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Christophe Andr&#xe9; 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Andr&#xe9; 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Omid Ranjbar 
Author-X-Name-First: Omid 
Author-X-Name-Last: Ranjbar 
Title: The Feldstein--Horioka puzzle in South Africa: A fractional cointegration approach 
Abstract:
 The Feldstein--Horioka (FH) puzzle, that is the strong correlation between
 saving and investment in a world where obstacles to capital mobility are
 limited, has been studied extensively since it was exposed in 1980. Even
 though the theoretical and empirical literature has examined many of its
 potential causes, the puzzle persists. This paper aims at shedding further
 light on the issue by investigating the relationship between saving and
 investment in South Africa since 1946 using fractional integration and
 cointegration techniques to account for high persistence in the series. We
 find evidence of fractional cointegration between saving and investment,
 indicating some degree of persistence in the gap between the two
 variables. We also find a structural break in saving and investment ratios
 to GDP around 1980, which roughly coincides with the start of a financial
 deregulation process in South Africa. While fractional cointegration holds
 before the break, it does not thereafter. In other words, while the FH
 puzzle is observed before the start of financial deregulation, it
 subsequently disappears. This suggests that financial deregulation may
 have loosened the link between saving and investment.
Journal: The Journal of International Trade & Economic Development 
Pages: 978-991 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2016.1151545 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1151545 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:7:p:978-991




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chieh Wang 
Author-X-Name-First: Ming-Chieh 
Author-X-Name-Last: Wang 
Author-Name: Tai-Feng Chen 
Author-X-Name-First: Tai-Feng 
Author-X-Name-Last: Chen 
Title: Does the spillover of China's economic growth exist? Evidence from emerging markets 
Abstract:
 This paper primarily investigates if China affects emerging markets
 economies triggered by its rapid economic growth and the trend of economic
 globalization over the world. Our results indicate that China's economic
 growth causes a significant spillover effect on the economic performances
 of emerging markets, varying across the detected structural break in 2006
 and the degree of economic globalization between China and 25 emerging
 economies over the period 2000--2012. The results herein support the
 formation of an inseparable interdependence between China and those
 emerging economies.
Journal: The Journal of International Trade & Economic Development 
Pages: 992-1009 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2016.1168477 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1168477 
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:7:p:992-1009




Template-Type: ReDIF-Article 1.0
Author-Name: Zoryana Olekseyuk 
Author-X-Name-First: Zoryana 
Author-X-Name-Last: Olekseyuk 
Title: Modeling of FDI in business services: Additional effects in case of Ukraine's European integration 
Abstract:
 To analyze Ukraine's deep and comprehensive integration with the EU, we
 develop a multi-regional general-equilibrium simulation model
 incorporating heterogeneous firms and Foreign Direct Investment (FDI) in
 business services. This allows for consideration of (a) trade growth in
 new varieties; (b) aggregate productivity changes attributed to
 reallocation of resources across and within an industry; and (c)
 productivity growth in manufacturing due to increased access to business
 services. The results indicate relatively small gains for the EU, whereas
 Ukraine benefits with a welfare increase of over 8%. The
 deindustrialization impact, previously found by Olekseyuk and Balistreri
 (2014) in a comparison of different modeling structures, is supported by
 our findings. Ukraine's welfare gains are higher under an Armington
 structure compared to monopolistic competition. This is due to a movement
 of resources into Ukraine's traditional export sectors producing under
 constant returns. Implementation of the FDI modeling approach and
 liberalization of barriers to FDI, however, mitigates the
 deindustrialization impact as multinational firms enter the Ukrainian
 market. This increases the number of available varieties and,
 consequently, induces productivity growth of manufacturing sectors due to
 improved access to business services as critical inputs.
Journal: The Journal of International Trade & Economic Development 
Pages: 1010-1043 
Issue: 7 
Volume: 25 
Year: 2016 
Month: 10 
X-DOI: 10.1080/09638199.2016.1170193 
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1170193 
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Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Ehrl
Author-X-Name-First: Philipp
Author-X-Name-Last: Ehrl
Title: Task trade and employment patterns: The offshoring and onshoring of Brazilian firms
Abstract: 
 The present paper tackles the question whether firms in a middle-wage country offshore production to save labor costs or if they onshore tasks that were offshored from high-wage countries. To distinguish which is the empirically more relevant case, I analyze the effect of importing intermediate inputs on the labor composition using matched employer–employee data and information on trade transactions from the universe of Brazilian firms. Propensity score matching indicates that an intermediate import expansion at the extensive margin leads to employment growth, higher intensities in routine and non-routine manual tasks and an increased share of intermediates exports. These findings thus point out that Brazil's intermediate imports predominantly represent onshored tasks. This result holds regardless of whether intermediate imports from high- or low-wage countries are considered. In line with theoretical considerations, the data show that Brazil's comparative advantage is in medium-complex and routine manual intensive production stages.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 235-266
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1362462
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1362462
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:235-266




Template-Type: ReDIF-Article 1.0
Author-Name: Muhlis Can
Author-X-Name-First: Muhlis
Author-X-Name-Last: Can
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Effects of export product diversification on quality upgrading: an empirical study
Abstract: 
 This paper empirically examines the effects of export product diversification on overall export quality in a panel data set of 115 countries from 1970 to 2010. It uses the data sets of the overall export quality and three export diversification measures of the International Monetary Fund: the extensive margin (variation in the number of new products exported), the intensive margin (variation in export values among existing exports), and the overall (Theil) index. It finds that export quality has only been increasing with a higher variation in export values among existing exports in low- and lower-middle-income countries. It also observes that export quality has been increasing with both a higher variation in export values among existing exports and new products exported in upper-middle- and high-income countries. The results are robust to the changing measures of controls in the benchmark model, the inclusion of many other controls; i.e. various measures of globalization, country size, factor endowments, macroeconomic stance, etc., and the exclusion of outliers.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 293-313
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1370006
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1370006
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Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Cigno
Author-X-Name-First: Alessandro
Author-X-Name-Last: Cigno
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Laura Sabani
Author-X-Name-First: Laura
Author-X-Name-Last: Sabani
Title: The role of trade and offshoring in the determination of relative wages and child labour
Abstract: 
 Incorporating family decisions in a two-period model of the world economy, we predict that trade liberalization raises the skill premium and reduces child labour in developing countries where the adult labour force is sufficiently well educated to attract production activities from abroad that will increase the demand for skilled relative to unskilled labour. Elsewhere, liberalization will reduce the skill premium, but it will not necessarily raise child labour. Our prediction is not rejected by the data, and it explains why child labour is negatively associated with trade openness in those developing countries where the labour force was relatively well educated when the liberalization took place, but not elsewhere.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 267-292
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1378254
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1378254
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:267-292




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Njindan Iyke
Author-X-Name-First: Bernard Njindan
Author-X-Name-Last: Iyke
Author-Name: Sin-Yu Ho
Author-X-Name-First: Sin-Yu
Author-X-Name-Last: Ho
Title: Nonlinear effects of exchange rate changes on the South African bilateral trade balance
Abstract: 
 In testing for the J-curve, previous studies have shown that the trade balance model is better fitted using cointegration and error correction mechanisms. These mechanisms are able to incorporate the short-term deterioration and the long-term improvement of the trade balance – the definition of the J-curve. However, the drawback of the established cointegration and error correction frameworks is that they assume symmetry in the equilibrium adjustment process. Incidentally, studies which have used the linear frameworks have found little support for the J-curve. Since the adjustment process could be nonlinear, a fresh investigation of the J-curve using nonlinear approaches could provide competing evidence. This paper retested the J-curve by using quarterly data for South Africa and her key trade partners (China, Germany, India, Japan, the UK and the USA) and found the linear specification to support the J-curve phenomenon in only two cases (India and the USA) under relaxed conditions. In contrast, the nonlinear specification supported the J-curve phenomenon in all cases at no cost of serial correlation and functional misspecification. We also found the real exchange rate changes to have significant nonlinear effects on the South African trade balance.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 350-363
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1378916
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1378916
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Template-Type: ReDIF-Article 1.0
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Title: The impact of parallel market exchange rate volatility and oil exports on real GDP in Syria: Evidence from the ARDL approach
Abstract: 
 This paper investigates the impact of parallel market exchange rate volatility and trade on real GDP and real GDP growth in the Syrian economy over the period of 1990Q1–2010Q4. To this end, we first construct a parallel market exchange rate volatility indicator. Second, we estimate an autoregressive distributed lag (ARDL) model where we include our indicator of volatility among the main determinants of real GDP. Our findings imply that real GDP can be explained by three main variables: parallel market exchange rate, money supply, and oil exports. The long-run equilibrium reveals that parallel market exchange rate volatility has a negative impact on real GDP compared to the positive impact of money supply and oil exports. In contrast, the short-run impact of parallel market exchange rate volatility on real GDP growth is positive and very small counter to the long-run impact. Furthermore, the coefficient of the error correction term of the estimated ARDL model indicates that real GDP deviation from the equilibrium level will be corrected by about 10% after each quarter.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 333-349
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1389974
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1389974
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:333-349




Template-Type: ReDIF-Article 1.0
Author-Name: Jiao-Jiao Fan
Author-X-Name-First: Jiao-Jiao
Author-X-Name-Last: Fan
Author-Name: Ruzhi Xu
Author-X-Name-First: Ruzhi
Author-X-Name-Last: Xu
Author-Name: Chi Wei Su
Author-X-Name-First: Chi Wei
Author-X-Name-Last: Su
Author-Name: Qing-Hua Shi
Author-X-Name-First: Qing-Hua
Author-X-Name-Last: Shi
Title: Demand-following or supply-leading? Trade openness and financial development in China
Abstract: 
 This study explores the causal relationship between financial development and trade openness in China, using the research methodology namely bootstrap Granger full-sample causality test and sub-sample rolling-window estimation. The results reveal that there is a significant bidirectional relationship between financial development and trade openness in China, pointing out the existence of both ‘demand-following’ and ‘supply-leading’ hypotheses. Furthermore, their relationship fits well the fact that China has experienced economic restructuring and structural changes in the past few decades. As financial development improves trade openness robustly, the Chinese policymakers should further increase financial reform to promote trade development.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 314-332
Issue: 3
Volume: 27
Year: 2018
Month: 4
X-DOI: 10.1080/09638199.2017.1390779
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1390779
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:314-332




Template-Type: ReDIF-Article 1.0
Author-Name: Ayhab F. Saad
Author-X-Name-First: Ayhab F.
Author-X-Name-Last: Saad
Title: Trade and technology adoption
Abstract: 
 This paper endogenizes firms' choices of production technology in what would be a standard Melitz model otherwise. The responses of firms' productivity to trade liberalization are heterogenous: exporters, on average, improve their level of technology adoption, whereas nonexporters downgrade their level of technology adoption. The degree to which firms adjust production technology depends on domestic market size, export destination market size, trade impediments, and export status. The conflicting empirical results of the impact of trade liberalization on exporters' productivity are rationalized by showing that changes in different trade costs (variable vs. fixed costs) affect firms' productivity differently. We calibrate the model's parameters to match firms' characteristics in the global economy. The results indicate that endogenous productivity increases the gains from trade liberalization.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1-24
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1197298
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1197298
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Nazif Durmaz
Author-X-Name-First: Nazif
Author-X-Name-Last: Durmaz
Title: Evidence on Orcutt's hypothesis using Turkish–US commodity trade
Abstract: 
 Many of the studies that have tested the Orcutt's hypothesis in trade have used aggregate trade data between one country and rest of the world. Since these studies suffer from aggregation bias, three recent studies have employed data at commodity level and have found relatively more support for the hypothesis. In this paper we test the hypothesis using commodity level data from 54 industries that trade between Turkey and the US. We find support for the notion that trade flows respond to exchange rate changes faster than to relative price changes in one-third of the industries, supporting Orcutt's conjecture.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 25-44
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1201126
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1201126
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Template-Type: ReDIF-Article 1.0
Author-Name: J. Alexander Nuetah
Author-X-Name-First: J. Alexander
Author-X-Name-Last: Nuetah
Author-Name: Xian Xin
Author-X-Name-First: Xian
Author-X-Name-Last: Xin
Title: Global agricultural trade liberalization: Is Sub-Saharan Africa a gainer or loser?
Abstract: 
 This paper analyzes the potential impact of agricultural trade liberalization on Sub-Saharan Africa. We used the Agricultural Trade and Policy Simulation Model to estimate the potential effects of agricultural trade liberalization, mainly in the US and EU, on the world-market prices of agricultural commodities. We then used the estimated price changes to assess the impact of these reforms on net-food importers as well as other Sub-Saharan African countries that enjoy preferential trade agreements with the EU and US. The results indicate that the world market prices of all commodities imported by Sub-Saharan Africa are expected to rise while the prices of the key export commodities of the region would either decline or remain unchanged. Given that the prices of major food commodities are expected to rise, net-food-importing countries will experience increasing import bill, thus leading to welfare loss. Major Sub-Saharan Africa sugar exporters who are beneficiaries of preferential agreements such as the EU sugar protocol and US AGOA initiative will become losers as preferences erode due to global liberalization. Thus, the region is expected to generally become a net loser from the current WTO reform modalities.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 65-88
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1205120
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1205120
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:1:p:65-88




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Fernández
Author-X-Name-First: Juan
Author-X-Name-Last: Fernández
Author-Name: Juan Carlos Gavilanes
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Gavilanes
Title: Learning-by-importing in emerging innovation systems: evidence from Ecuador
Abstract: 
 Using data from the population of Ecuadorian importers, we examine the extent to which the characteristics of their imports relate to their labor productivity. Results indicate that the technological intensity of imports does not explain differences in labor productivity, although the region of origin of imports explains differences in the manufacturing sector, as imported technologies from advanced regions are associated with superior labor productivity. Nevertheless, as technology intensive imports are not associated with superior performance, we argue that importers from developing countries may use foreign technology inexpertly due to the lack of absorptive capacity and the emerging nature of their national innovation system.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 45-64
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1205121
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1205121
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Template-Type: ReDIF-Article 1.0
Author-Name: Usman Khalid
Author-X-Name-First: Usman
Author-X-Name-Last: Khalid
Title: The effect of trade and political institutions on economic institutions
Abstract: 
 This study examines the relationship between trade and the quality of economic institutions under different political institutions. It uses panel data of 138 countries from 1984 to 2010 and employs instrumental variables and identification through heteroscedasticity to mitigate the problem of endogeneity. The findings suggest that the effect of trade on economic institutions reduces significantly in the presence of extractive political institutions. The findings indicate that ‘trade’ is not a sufficient tool for improving economic institutions; rather, trade policies need to be embedded in distinct political institutions to trigger the substantive improvement of economic institutions.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 89-110
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1206142
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1206142
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:1:p:89-110




Template-Type: ReDIF-Article 1.0
Author-Name: Avik Chakrabarti
Author-X-Name-First: Avik
Author-X-Name-Last: Chakrabarti
Author-Name: Yi-Ting Hsieh
Author-X-Name-First: Yi-Ting
Author-X-Name-Last: Hsieh
Author-Name: Yuanchen Chang
Author-X-Name-First: Yuanchen
Author-X-Name-Last: Chang
Title: Cross-border mergers and market concentration in a vertically related industry: theory and evidence
Abstract: 
 We present a tractable model of oligopoly to identify the linkages between local competition and cross-border mergers in a vertically related industry. We show that the incentives for cross-border mergers rise with vertical integration in an industry when the premerger concentration in that industry is sufficiently high relative to the concentration in the same industry in a foreign country. We also show that the incentives for a merger between a foreign firm and a vertically integrated home firm will be higher than that for a merger between a foreign firm and a disintegrated home firm, when the premerger concentration at home is low relative to the premerger concentration in the foreign country. We then analyze a firm-level panel of 90,614 M&amp;A observations, between 1990 and 2012, from 86 countries. Logistic regressions confirm that market concentration is an important determinant of cross-border M&amp;A. Our results support the conjectures of our theoretical model and are consistent with recent empirical findings and theoretical predictions.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 111-130
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1220971
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1220971
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:1:p:111-130




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best paper Prize 2016
Journal: The Journal of International Trade &amp; Economic Development
Pages: 131-131
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638199.2016.1261799
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1261799
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:1:p:131-131




Template-Type: ReDIF-Article 1.0
Author-Name: Ying-Hsiu Chen
Author-X-Name-First: Ying-Hsiu
Author-X-Name-Last: Chen
Title: Estimating the speeds of long-run technological catch-up and growth of total factor productivity for countries
Abstract: 
 This paper constructs a dynamic production frontier function under the framework of a forward-looking rational expectations model, taking the effect of quasi-fixed inputs into account. The sample comprises balanced panel data of 36 countries over the period from 1990 to 2009. Evidence is found that all of the four country groups show the technological catch-up phenomenon in the long run and experience total factor productivity (TFP) growth. Their TFP growth is primarily driven by long-run technical efficiency improvement, followed by technological progress. The Non-G7 and Non-NICs groups are the top two groups in terms of speeds of long-run technological catch-up and rates of TFP growth.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 220-234
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1339204
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1339204
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:220-234




Template-Type: ReDIF-Article 1.0
Author-Name: Manash Ranjan Gupta
Author-X-Name-First: Manash Ranjan
Author-X-Name-Last: Gupta
Author-Name: Priya Brata Dutta
Author-X-Name-First: Priya Brata
Author-X-Name-Last: Dutta
Title: Tourism development, environmental pollution and economic growth: A theoretical analysis
Abstract: 
 We develop a two-sector dynamic model of a less-developed economy with an imported traded good sector and with a non-traded tourism service sector serving international tourists. Revenue earned from tourism finances imports. The model takes care of the negative effect of tourism development on environmental pollution. Environmental quality and capital stock accumulates over time. We analyse comparative steady-state effects and show that tourism development raises the level of capital stock as well as national income but lowers the quality of environment in the new steady-state equilibrium leading to a relative expansion (contraction) of the capital (labour) intensive non-tourism (tourism) sector. Pollution abatement policy produces a completely opposite effect; and so tourism development policies are to be accompanied by pollution abatement policies in order to ensure green growth.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 125-144
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1346139
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1346139
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:125-144




Template-Type: ReDIF-Article 1.0
Author-Name: Seng Sothan
Author-X-Name-First: Seng
Author-X-Name-Last: Sothan
Title: Foreign aid and economic growth: evidence from Cambodia
Abstract: 
 This paper attempts to examine the growth impact of foreign aid in Cambodia over the period 1980–2014, using the autoregressive distributive lag (ARDL) bounds testing approach. The study also incorporates investment and trade openness into the model. The empirical findings show that trade openness has positive effects on growth in both the short run and the long run; investment has positively contributed to growth in the long run while foreign aid has positive impact on growth only for the short run. On the contrary, in the long run, it has negative impact on investment and growth. This can be suggested that dependence on foreign aid for long periods of time does not positively contribute to investment and growth in Cambodia. In order to achieve sustainable growth and enhanced industrialization, policy-makers should move from aid dependence to promote investments through elevating domestic and foreign capital in the country.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 168-183
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1349167
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1349167
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:168-183




Template-Type: ReDIF-Article 1.0
Author-Name: Deng-Kui Si
Author-X-Name-First: Deng-Kui
Author-X-Name-Last: Si
Author-Name: Xiao-Lin Li
Author-X-Name-First: Xiao-Lin
Author-X-Name-Last: Li
Title: Mean reversion of inflation rates in seven Eastern European countries: An application of a fourier quantile unit root test
Abstract: 
 This paper applies recently developed Fourier quantile unit root test to investigate time-series property of inflation in seven Eastern European countries. This method combines the quantile unit root test with smooth unknown multiple breaks through Fourier function, and has good size and power when the data follows heavy tailed distribution. Our results show that the inflation rates are stationary within each quantile for Czech Republic, Bulgaria and Lithuania, while the other four countries contain a unit root within some quantiles. We also find the speed of inflation adjustment towards to its long-run equilibrium for each country is asymmetric. Our results have important policy implications for monetary authorities in these Eastern European countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 145-167
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1350200
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1350200
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:145-167




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Malambwe Kilolo
Author-X-Name-First: Jean-Marc Malambwe
Author-X-Name-Last: Kilolo
Title: Foreign aid and trade reform: Evidence from ACP-EU data
Abstract: 
 Beside traditional motives of giving – namely, altruism and donors’ self-interest, foreign aid also serves to encourage poor countries to liberalize trade. In this paper, I use recent foreign aid data from 15 European donors to 45 African, Caribbean and Pacific countries (ACP) to assess the importance of each motive. Although all the motives are important, their relative importance varies from one sub-group of donors to another. In particular, big donors such as France, Germany and the United Kingdom seem to weight more their commercial interests than other European donors; besides, recipient needs appear to be less important. Contrary to other European donors, international cooperation, measured by the correlation in the votes at the United Nations General Assemblies influences their decision to allocate aid to ACP recipients. This last finding probably reflects their relatively high political power in international fora. Finally, I introduce a dummy variable for economic partnership agreement (EPA) and find that donors do not give to support trade liberalization per se. However, large donors give more aid to ACP exporters of raw materials that engage in the EPA. This result implies that foreign aid is a device to secure access to raw materials.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 184-199
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1353124
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1353124
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Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Castillo
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Castillo
Author-Name: Gaaitzen de Vries
Author-X-Name-First: Gaaitzen
Author-X-Name-Last: de Vries
Title: The domestic content of Mexico's maquiladora exports: A long-run perspective
Abstract: 
 This paper studies the domestic value-added content of exports by Mexico's maquiladoras (export-processing firms) during the period from 1981 to 2006. We combine a specific input–output table for maquiladora firms with detailed longitudinal data on outputs and inputs. Policy shifts and major currency devaluations (both taking place in 1982 and 1994) drastically altered the foreign sourcing structure of most maquila firms and conditioned their demand for domestic inputs in the years thereafter. A long-run gradual decline in aggregate domestic value added in maquiladora exports is largely accounted for by the falling domestic content within electronics manufacturing.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 200-219
Issue: 2
Volume: 27
Year: 2018
Month: 2
X-DOI: 10.1080/09638199.2017.1353125
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1353125
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:200-219




Template-Type: ReDIF-Article 1.0
Author-Name: Javier Arnaut
Author-X-Name-First: Javier
Author-X-Name-Last: Arnaut
Title: Did structural change account for productivity growth within manufacturing during the import substitution era? A historical appraisal of Mexico, Argentina, and Brazil
Abstract: 
 The long-term productivity dynamics of Latin America have been the focus of vast research looking to understand the origins of the growth underperformance of the region. Based on new estimates from official industrial censuses from 1935 to 1975, this paper reassesses whether there was a process of structural change within the manufacturing industries of Mexico, Argentina, and Brazil. It presents a quantitative reassessment of the dynamics of productivity in these industries providing a new decomposition of labor productivity growth at a more disaggregated level. The overall results from a shift-share analysis are unable to find substantial evidence of structural change within manufacturing in these countries over the period.
Journal: The Journal of International Trade & Economic Development
Pages: 1-35
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2017.1389975
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1389975
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Template-Type: ReDIF-Article 1.0
Author-Name: Steven Brakman
Author-X-Name-First: Steven
Author-X-Name-Last: Brakman
Author-Name: Harry Garretsen
Author-X-Name-First: Harry
Author-X-Name-Last: Garretsen
Author-Name: Raoul van Maarseveen
Author-X-Name-First: Raoul
Author-X-Name-Last: van Maarseveen
Author-Name: Peter Zwaneveld
Author-X-Name-First: Peter
Author-X-Name-Last: Zwaneveld
Title: Firm heterogeneity and exports in the Netherlands: Identifying export potential beyond firm productivity
Abstract: 
 According to the Melitz [2003. ‘The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.’ Econometrica 71: 1695–1725] model, potential exporters have to be sufficiently productive to overcome the entry costs of foreign markets. Once firms pass this productivity threshold, they all export. However, empirical evidence indicates that a substantial share of highly productive top-performing firms does not export. In this paper, we focus specifically on this group of high-performing non-exporters and identify the factors that prevent them from successfully exporting. We employ a large Dutch administrative dataset containing both small and large firms in services and manufacturing for the period 2010–2016. Our main findings are two-fold. First, controlling for high productivity identifies other factors that need to be fulfilled for exporting firms. Firm size, import status, and foreign ownership are important determinants of a firm’s future export activity. Second, firm location is crucial. A location in more peripheral areas increases the probability that high-productive firms do not export, whereas a location close to the border increases export probabilities.
Journal: The Journal of International Trade & Economic Development
Pages: 36-68
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1631876
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1631876
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Template-Type: ReDIF-Article 1.0
Author-Name: Rakesh Kumar
Author-X-Name-First: Rakesh
Author-X-Name-Last: Kumar
Title: India & South Asia: Geopolitics, regional trade and economic growth spillovers
Abstract: 
 The South Asian countries formed the regional trade bloc namely South Asian Association for Regional Cooperation (SAARC) with the aim to promote regional economic cooperation through multilateral engagements. India which comes to be the largest economy in the SAARC has posted impressive economic growth in the last decades. As of now India stands major contributor to the exports and imports to/from South Asia, having trade surplus with all other countries from the region. In this backdrop, this paper presents the facts on India’s role in the economic development of South Asia region while testing the potential spillovers of India’s trade and economic growth. We utilize Autoregressive distributed lag (ARDL) bound test procedure for short and long run causal relations during the period 1990–2016, hence raising the quality of statistical inference. The results highlight that the economic growth and regional trade of India are found significant short and long run spillovers on the economic growth of Bangladesh, Sri Lanka, Nepal and Bhutan. The results are highly insightful for policy implication which raises the attention towards the greater degree of trade openness for balanced economic development in the region. India can act as engine of growth, and thus requires to play key role in pushing forward the SAARC objectives through political and diplomatic engagements.
Journal: The Journal of International Trade & Economic Development
Pages: 69-88
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1636121
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1636121
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Template-Type: ReDIF-Article 1.0
Author-Name: Brian Mazorodze
Author-X-Name-First: Brian
Author-X-Name-Last: Mazorodze
Title: Trade and efficiency of manufacturing industries in South Africa
Abstract: 
 This paper advances and empirically tests the hypothesis that trade raises input-oriented technical efficiency through cost saving practices that reduce cost inefficiencies. Using a primal and dual True-Fixed-Effects (TFE) stochastic frontier approach on a panel dataset comprising 28 manufacturing industries in South Africa between 1970 and 2016 at 3-digit level, it found average technical and cost efficiency values of 0.83 and 0.33 respectively indicating that the industries operated 33% above their cost minimising level and could have reduced their input usage by 17% without compromising their output level. Empirical findings then confirmed a significant positive effect of import penetration and export intensity on technical efficiency that operates through reduction of cost inefficiencies. These findings do not only support our proposed hypothesis; they also corroborate the idea that competition from global trade forces local industries to rationalise their operations and give up production practices that are not consistent with the cost minimisation objective. The Department of Trade and Industry (DTI) might find these results useful as they suggest that a less restrictive trade policy that promotes exports and imports has the potential to improve resource utilisation within the manufacturing sector through downward cost adjustments.
Journal: The Journal of International Trade & Economic Development
Pages: 89-118
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1640273
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1640273
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Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Author-Name: Hong-Youl Kim
Author-X-Name-First: Hong-Youl
Author-X-Name-Last: Kim
Title: On the relation between crude oil prices and exchange rates in sub-saharan African countries: A nonlinear ARDL approach
Abstract: 
 This article examines the effect oil price fluctuations have on exchange rates in selected sub-Saharan African (SSA) countries. To investigate the subject thoroughly, unlike previous studies we take specific account of the asymmetric effects of oil price changes in our modeling process, using the nonlinear autoregressive distributed lag (NARDL) model proposed by Shin et al. [2014. “Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework.” In Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, edited by R. Sickels, and W. Horrace, 281–314. New York: Springer.] The results provide strong evidence that changes in oil prices have the asymmetric effects on the real exchange rates in the long-run; that is, the movements in the real exchange rates in selected SSA countries appear to respond mostly more to oil price increases than to decreases. In the short-run, on the other hand, the asymmetry of oil price changes is not observed.
Journal: The Journal of International Trade & Economic Development
Pages: 119-130
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1638436
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1638436
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Template-Type: ReDIF-Article 1.0
Author-Name: Pejman Bahramian
Author-X-Name-First: Pejman
Author-X-Name-Last: Bahramian
Author-Name: Andisheh Saliminezhad
Author-X-Name-First: Andisheh
Author-X-Name-Last: Saliminezhad
Title: On the relationship between export and economic growth: A nonparametric causality-in-quantiles approach for Turkey
Abstract: 
 This study re-examines the dynamic causal relationship between exports and economic growth in Turkey for the period from 1960 to 2018. Unlike the previous studies ignoring the presence of the potential nonlinearities in the relationship between the series; we apply a novel nonparametric causality-in-quantile methodology that relaxes the restrictive assumption of linearity and provides more reliable and inclusive inference in the causal nexus between the variables. Using the nonlinearity test, we show that the absence of causality linkages based on the linear framework is subject to a misspecification error. However, by employing the causality-in-quantiles test, we find evidence of positive causation from economic growth to export growth at low- and high-quantile ranges of export growth. Our findings highlight the emphasis on the modelling of nonlinear interactions between the variables as well as the consideration of the entire conditional distribution to avoid the risk of misleading inferences on the causality analysis.
Journal: The Journal of International Trade & Economic Development
Pages: 131-145
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1648537
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1648537
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best paper 2019
Journal: The Journal of International Trade & Economic Development
Pages: 146-146
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638199.2019.1710044
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1710044
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:1:p:146-146




Template-Type: ReDIF-Article 1.0
Author-Name: Farrukh Suvankulov
Author-X-Name-First: Farrukh
Author-X-Name-Last: Suvankulov
Title: Revisiting national border effects in foreign trade in goods of Canadian provinces
Abstract: 
 A significant body of empirical studies demonstrates sizable national border effects in foreign trade of Canadian provinces throughout the 1980s and 1990s. This paper revisits and expands the scope of the border effects analysis by estimating the border effect in trade with US states as well as countries in the European Union (EU) and the G-20 using more recent data from 2001–10. Furthermore, we perform the Blinder–Oaxaca nonlinear decomposition to decompose the border effects into various components, including the transaction costs, the tariff and non-tariff measures, and the unexplained component. Results from the Poisson pseudo-maximum likelihood model show that, compared to existing estimates from the 1980s and 1990s, the size of the border effect in trade between Canadian provinces and US states has declined. The border effects for Canada–EU and Canada–G-20 bilateral trade flows sit at somewhat elevated levels. About a third of the border effects in overall trade with EU and G-20 countries can be attributed to the variables related to transaction costs in foreign trade. While the significance of tariffs has declined, the prevalence of non-tariff measures seems to be on a rise. That said, we find that the welfare-changing measures combined – tariff and non-tariff measures – play a limited role in explaining the border effects in comparison with the role of transaction costs and the unexplained component.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1045-1070
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1176229
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1176229
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong Xuan Nguyen
Author-X-Name-First: Dong Xuan
Author-X-Name-Last: Nguyen
Title: Trade liberalization and export sophistication in Vietnam
Abstract: 
 This paper empirically examines the impacts of trade liberalization policy on the sophistication level of Vietnam's exports from 2001 to 2010. The export sophistication measure proposed by Hausmann and co-workers is computed by using the disaggregated trade data. By descriptive analysis, this indicator reveals that Vietnam's export structure was similar to that of Indonesia and the Philippines and then became much more similar to Thailand after Vietnam's accession to World Trade Organization (WTO). In addition, this paper econometrically analyzes the effects of trade liberalization on Vietnam's industry-level export sophistication with the additional consideration of its WTO accession in 2007. This paper suggests that tariff reductions have a positive impact on the sophistication level of Vietnam's industry exports. Trade liberalization has a stronger impact on the nonmanufacturing sectors than on manufacturing sectors. However, the results also imply that the WTO membership does not have any additional effects on Vietnam's industry export sophistication.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1071-1089
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1179778
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1179778
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1071-1089




Template-Type: ReDIF-Article 1.0
Author-Name: Nazli Toraganli
Author-X-Name-First: Nazli
Author-X-Name-Last: Toraganli
Author-Name: Hasan Murat Ertugrul
Author-X-Name-First: Hasan Murat
Author-X-Name-Last: Ertugrul
Title: Does credit composition matter for current account dynamics? Evidence from Turkey
Abstract: 
 Based on a dynamic approach using the Kalman filter we depict effects of time-varying interactions between different components of credit stock on the current account in the Turkish Economy for the period 2002Q3–2014Q3. We decompose the credit stock into consumer and non-financial corporate sector credit and show empirically that both types of credit stock have negative effects on the current account dynamics.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1090-1100
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1188974
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1188974
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1090-1100




Template-Type: ReDIF-Article 1.0
Author-Name: Bebonchu Atems
Author-X-Name-First: Bebonchu
Author-X-Name-Last: Atems
Author-Name: John K Mullen
Author-X-Name-First: John K
Author-X-Name-Last: Mullen
Title: Outward FDI from the USA and host country financial transparency
Abstract: 
 Extant research has focused on the role of host country corruption as either an attractant or deterrent to foreign investment. These studies generally contend that corruption acts more like a ‘grabbing hand’ than as a ‘helping hand’. However, it is plausible that a significant component of foreign investment may be attracted to locales that offer opaque financial environments. Specifically, we hypothesize that money laundering opportunities may encourage illicit capital flows into certain jurisdictions. Using the USA as the ‘source’ country, we investigate the effect of corruption and money laundering opportunities on Foreign Direct Investment (FDI) flows. The empirical findings indicate that corruption deters foreign investment, while money laundering opportunities attract it. We also show that the effect of money laundering and corruption vary based on the host country's level of development. Our findings bolster the contention that FDI into certain host countries is motivated by a facilitation of illicit capital flows.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1122-1143
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1191526
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1191526
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Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Behar
Author-X-Name-First: Alberto
Author-X-Name-Last: Behar
Title: The endogenous skill bias of technical change and wage inequality in developing countries
Abstract: 
 This paper draws on existing empirical literature and an original theoretical model to argue that technical change does not have to be skill-biased in developing countries. Instead, the extent to which technology adoption in developing countries favors skilled workers depends on a number of factors. Free trade induces technology that favors skilled workers in skill-abundant developing countries and that favors unskilled workers in skill-scarce developing countries, and therefore amplifies the predicted wage effects of trade liberalization. Developing countries experience technical change that is skill-biased when imported skill-biased technologies become relatively cheaper. Increased skill supply further biases technical change in favor of skilled labor. These features aid our understanding of the observed rises in inequality within developing countries, the absence of a significant downward effect of expanded educational attainment on skill premia, and the differential effects of trade liberalization on inequality.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1101-1121
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1193887
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1193887
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1101-1121




Template-Type: ReDIF-Article 1.0
Author-Name: Feride Gönel
Author-X-Name-First: Feride
Author-X-Name-Last: Gönel
Author-Name: Tolga Aksoy
Author-X-Name-First: Tolga
Author-X-Name-Last: Aksoy
Title: Revisiting FDI-led growth hypothesis: the role of sector characteristics
Abstract: 
 Does foreign direct investment (FDI) lead to higher growth? What type of FDI really works? In this paper, we disaggregate FDIs based on their technological characteristics and investigate which kind of FDI leads to output growth. The results for the sample of OECD countries during the period 1985–2012 indicate that FDI inflows to Information and Communication Technologies (ICTs) using and producing manufacturing and service sectors (ICT-based), non-ICT using and producing manufacturing and service sectors (non-ICT-based) and other sectors (non-ICT-other) play no role in contributing to economic growth. However, we provide evidence that absorptive capacities of host countries work through ICT-based FDI inflows. Only if the host countries have sufficient level of human capital, financial resources and technological infrastructure, ICT-based FDI will foster economic growth. The results are robust to controlling missing values, studying the subsample of emerging market economies and consideration of endogeneity.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1144-1166
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1195431
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1195431
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1144-1166




Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Nicholas
Author-X-Name-First: Aaron
Author-X-Name-Last: Nicholas
Title: China's war against the many faces of poverty: Towards a New Long March, by J. Yang and P. Mukhopadhaya
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1167-1168
Issue: 8
Volume: 25
Year: 2016
Month: 11
X-DOI: 10.1080/09638199.2016.1203475
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1203475
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Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1167-1168




Template-Type: ReDIF-Article 1.0
Author-Name: Kyungmin Kim
Author-X-Name-First: Kyungmin
Author-X-Name-Last: Kim
Title: An analysis of Korea's export performance using US import data
Abstract: 
 This paper assesses the relative sophistication of the Korean export products in manufacturing industry both across and within products between 1989 and 2012 using the very detailed United States import data. I first compare Korea's export performance in the US market in terms of market share, product penetration and export similarity to those of its rival countries. Next, I propose far more extensive estimates of difference in export quality between Korea and its trading rivals. The estimated quality difference reveals substantial heterogeneity across products and countries. In particular, this paper shows that the current greatest competitor of Korea is still Japan in the US market, but China is steadily climbing up the quality ladder and is chasing after Korea.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1-24
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1336639
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1336639
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Template-Type: ReDIF-Article 1.0
Author-Name: Antoine Bouët
Author-X-Name-First: Antoine
Author-X-Name-Last: Bouët
Author-Name: David Laborde
Author-X-Name-First: David
Author-X-Name-Last: Laborde
Author-Name: Fousseini Traoré
Author-X-Name-First: Fousseini
Author-X-Name-Last: Traoré
Title: The European Union–West Africa Economic Partnership Agreement: Small impact and new questions
Abstract: 
 Despite recent modifications, the Economic Partnership Agreement (EPA) between the European Union (EU) and West African (WA) countries is still being criticized for its potential detrimental effects on WA countries. This paper provides updated evidence on the impact of the EPA on these countries. A dynamic multi-country, multi-sector computable general equilibrium trade model with modeling of the dual–dual economy and with a consistent tariff aggregator is used to simulate a series of new scenarios that include updated information on the agreement. We also go beyond estimating macro-level economic effects to analyze the impacts on poverty. The policy simulation results show that the implementation of the EPA between the EU and WA countries would have marginal but positive impacts on Burkina Faso and Côte d'Ivoire and negative impacts on Benin, Ghana, Nigeria, Senegal, and Togo. The impact on poverty indicators in Ghana and Nigeria would be marginal. From the perspective of WA countries, this study supports the view that recent EU concessions are not sufficient and that domestic fiscal reforms are needed in WA countries themselves.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 25-53
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1337803
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1337803
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:1:p:25-53




Template-Type: ReDIF-Article 1.0
Author-Name: Biswajit Maitra
Author-X-Name-First: Biswajit
Author-X-Name-Last: Maitra
Title: Dynamics of capital account and current account in Sri Lanka
Abstract: 
 This paper enquires the dynamics of current account and capital account in Sri Lanka for the period 2001:Q1 to 2016:Q1 and also examines the role of some policy variables such as exchange rate and interest rate in this dynamics. Estimated autoregressive distributed lag (ARDL) bound testing approach to cointegration followed by error correction representation of the ARDL model have found that current account is caused by capital account and exchange rate, where capital account causes to produce a deficit in current account. In the dynamic adjustment of current account due to exchange rate, an evidence of J-curve phenomenon is noticed. Capital account is neither caused by current account nor by exchange rate but interest rate has a positive impact on it. Robustness of these findings is testified by the vector autoregression model, Wald test of Granger causality followed by an impulse response analysis and a variance decomposition analysis. These analyses, in addition, establish a negative impact of interest rate on current account. With the best of knowledge this is the first study that reveals the dynamics of current and capital account of Sri Lanka. Such a dynamics is critical from the policy perspective. Policy makers should caution before capital account liberalization.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 54-73
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1337804
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1337804
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Template-Type: ReDIF-Article 1.0
Author-Name: Majidah Ashour
Author-X-Name-First: Majidah
Author-X-Name-Last: Ashour
Author-Name: Chen Chen Yong
Author-X-Name-First: Chen
Author-X-Name-Last: Chen Yong
Title: The impact of exchange rate regimes on economic growth: Empirical study of a set of developing countries during the period 1974–2006
Abstract: 
 An increment in the quantity of services/goods manufactured per-head of the population over time denotes economic growth of a country. Exchange Rate Intermediate Regimes are unable to continue under conditions of capital movement. To examine the relationship between exchange rate regimes and economic growth. This study has kept its focus on the economic growth of a set of developing countries during the years (1974–2006). Fixed effects and pooled regression for 16 developing countries have been incorporated as the methodologies techniques for data. Analysis of data was performed through SPSS. A relationship between exchange rate regimes and economic growth has been identified through statistical approaches. The results indicated that as compared to flexible exchange regime, growth rate was higher by 1.2% when fixed exchange regime was adopted; and a growth rate of 0.64% was achieved under the intermediate regime when compared with the flexible regime. A positive impact has been identified in exchange rate regimes upon economic growth of the developing countries. Countries following the flexible exchange rates are facing scarcity for the existence of advanced financial systems, which deprives them of enjoying the benefits of flexible regime.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 74-90
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1339117
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1339117
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Fujiwara
Author-X-Name-First: Kenji
Author-X-Name-Last: Fujiwara
Author-Name: Keita Kamei
Author-X-Name-First: Keita
Author-X-Name-Last: Kamei
Title: Trade liberalization, division of labor and welfare under oligopoly
Abstract: 
 Incorporating explicitly division of labor into a two-country general oligopolistic equilibrium model, we examine the effects of trade liberalization on firm productivity and welfare. We show that a tariff reduction increases the firm productivity of the trading industries but decreases that of the non-trading industries. An expansion of the trading industries, in contrast, decreases the firm productivity of both the trading and non-trading industries. We then find that a tariff reduction necessarily reduces welfare while the welfare effect of expansion of trading industries is ambiguous.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 91-101
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1339362
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1339362
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:1:p:91-101




Template-Type: ReDIF-Article 1.0
Author-Name: Denis Stijepic
Author-X-Name-First: Denis
Author-X-Name-Last: Stijepic
Author-Name: Helmut Wagner
Author-X-Name-First: Helmut
Author-X-Name-Last: Wagner
Title: Impacts of intermediate trade on sector structure
Abstract: 
 Structural changes, i.e. long-run changes in the agriculture-manufacturing-services-structure, are a key property of growth and development processes with massive impacts on economy and society and are part of actual debates regarding policy in developing and developed economies. While traditional literature has attempted to explain structural changes by using autarkic models, recent literature has emphasised the importance of deriving theories of structural change using open economy settings. We elaborate on the impacts of intermediate trade on sector structure. In particular, we study how import of intermediate products, which is increasingly feasible due to improvements in transport technology and political integration, affects sector structure in a multi-sector growth model with capital accumulation. This topic has not been studied in the previous literature on structural change in open economies, despite the fact that intermediate imports and capital accumulation are central aspects of modern developing and developed economies. We show that the impacts of intermediate trade on sector structure depend on three factors: productivity gains from trade, specialisation in international trade and development stage. Depending on the constellation of these factors, intermediate trade may accelerate, decelerate or have no effect on structural change. Thus, the effects of intermediate trade may vary strongly across countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 102-122
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1344725
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1344725
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best Paper Prize 2017
Journal: The Journal of International Trade &amp; Economic Development
Pages: 123-123
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638199.2017.1414462
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1414462
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Template-Type: ReDIF-Article 1.0
Author-Name: Sylvanus Kwaku Afesorgbor
Author-X-Name-First: Sylvanus Kwaku
Author-X-Name-Last: Afesorgbor
Title: Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model
Abstract: 
 Two main shortcomings flaw the estimation of gravity model in previous studies that examined the trade-creating effects of African Regional Trade Agreements (RTAs). First, these studies fail to account for the multilateral resistance term. This omission makes the estimates from standard gravity model bias and inconsistent. Second, there is a significant proportion of zero trade flows, however, these studies also fail to account for them properly. They use either the Tobit model or replace zero flows with arbitrary small values. Apart from these problems, they also exhibit considerable heterogeneity in the RTA effects on trade. In this paper, a meta-analysis of previous empirical studies is conducted to derive a combined effect size and also to explain the heterogeneity. In addition, I use the gravity model to compare the trade-creating effect of the main African RTAs. Using the gravity model, I compare the estimation methods of previous studies to the Poisson pseudo-maximum-likelihood estimator that tackles the zero flows. From the meta-analysis, I find a general positive effect of African RTAs of about 27%–32%. A comparative assessment of the RTAs using gravity model shows a striking heterogeneity.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 133-153
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1219381
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1219381
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobing Huang
Author-X-Name-First: Xiaobing
Author-X-Name-Last: Huang
Author-Name: Xiaolian Liu
Author-X-Name-First: Xiaolian
Author-X-Name-Last: Liu
Title: How do firms finance their exports? – evidence from China
Abstract: 
 Using a firm-level production data over the period of 2005–2009 from China, this paper provides a new empirical evidence on how firms finance their exports when they have several financial options. The main results of the paper can be summarized as follows. First, firms who have better access to any finance are more likely to export and export more. More financial options lead to a higher export probability and capacity due to the complementary relation between financial options. Second, of all financial options, the internal finance captured by cash holdings or profit plays the most important role on firms’ export likelihood and volume. Firms rely more on the external finance through borrowing to start exporting, but depend more on issuing stocks to their shareholders to expand their exports. Third, subsample results suggest that the financial option of issuing stocks is generally more important for firms who have worse access to external finance in determining export propensity and quantity, such as private-owned firms, small-scale firms, young firms, and non-eastern firms.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 154-173
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1227869
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1227869
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:2:p:154-173




Template-Type: ReDIF-Article 1.0
Author-Name: Oguzhan Ozcelebi
Author-X-Name-First: Oguzhan
Author-X-Name-Last: Ozcelebi
Author-Name: Nurtac Yildirim
Author-X-Name-First: Nurtac
Author-X-Name-Last: Yildirim
Title: Impacts of short-term interest rates on stock returns and exchange rates: Empirical evidence from EAGLE countries
Abstract: 
 In this study, we estimate Bayesian vector autoregression (BVAR) and time-varying structural VAR (TVP-VAR) models for Brazil, Indonesia, Mexico and Turkey to analyze the impacts of short-term interest rates on stock prices and exchange rates considering the relationships between these variables. BVAR and TVP-VAR models’ estimations indicate that monetary policy decisions of these countries lead to capital movements as well as capital movements may create a considerable amount of variation in exchange and stock markets both in the periods of economic stability and financial crisis. We also reveal that increases in interest rates intending to prevent capital outflows may lead to decrease in stock returns, which in turn may deteriorate the real economic activity in Indonesia, while changes in short-term interest rates in Brazil, Indonesia and Turkey cannot be used as a tool to stabilize the value of their home currencies against the USD. Our study highlights the importance of formulating an optimal monetary policy framework accompanied by macro-prudential polices, which help to reach inflation target and smooth the possible variations in exchange rates and stock prices during economic crisis conditions in Brazil, Indonesia, Mexico and Turkey.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 228-255
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1232747
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1232747
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:2:p:228-255




Template-Type: ReDIF-Article 1.0
Author-Name: Dincer Dedeoglu
Author-X-Name-First: Dincer
Author-X-Name-Last: Dedeoglu
Author-Name: Kaan Ogut
Author-X-Name-First: Kaan
Author-X-Name-Last: Ogut
Title: Asymmetric cointegration with threshold adjustment model of exchange rates and the trade balance in Turkey
Abstract: 
 This paper aims to investigate the long-run equilibrium relationship between the trade balance and exchange rates in Turkey using the asymmetric error correction model with threshold cointegration. The results provide new evidence for the asymmetric long-run relationship between the trade balance and exchange rates. Besides, deviations from the long-run equilibrium due to a relative increase in real exchange rates have a lower speed of adjustment in comparison to the deviations caused by a relative decrease in real exchange rates.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 174-194
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1233288
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1233288
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:2:p:174-194




Template-Type: ReDIF-Article 1.0
Author-Name: Eugene Bempong Nyantakyi
Author-X-Name-First: Eugene
Author-X-Name-Last: Bempong Nyantakyi
Author-Name: Jonathan Munemo
Author-X-Name-First: Jonathan
Author-X-Name-Last: Munemo
Title: Technology gap, imported capital goods and productivity of manufacturing plants in Sub-Saharan Africa
Abstract: 
 This paper uses firm-level data from Ghana, Tanzania and Kenya to examine the effect of capital goods imports on domestic firms' productivity, and the role firms' technology gap plays in aiding the transmission of knowledge embodied in capital goods to domestic firms. The results show that increasing imports of capital goods and closing technology gaps have positive effects on productivity. Furthermore, domestic firms with technology standards farther from international best practices benefit more from capital goods imports. The results also imply that trade liberalization policy aimed at eliminating tariffs on capital goods will significantly improve the performance of technically incompetent firms in the African manufacturing sector.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 209-227
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1233450
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1233450
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:2:p:209-227




Template-Type: ReDIF-Article 1.0
Author-Name: Yasunori Ishii
Author-X-Name-First: Yasunori
Author-X-Name-Last: Ishii
Title: Dumping in a product differentiated reciprocal trade industry emitting global pollution
Abstract: 
 By modeling an international industry where developed and developing countries’ firms reciprocally trade differentiated goods under global pollution and the incomplete internalization of the pollution externality, we examine the firms’ dumping and anti-dumping duty (ADD). We assume that the product quality, pollution emissions, and consumer's pollution internalization are worse in the developing country. We find, among others, that the developing country's firm always conducts dumping, but the developed country's firm only does so under a certain condition and that if the two countries’ internalization degrees of the pollution externality are the same, the firms’ dumping disappears, regardless of product qualities and units of pollution emissions. We also show that a rise in the developed (developing) country's ADD decreases (increases) global pollution and that a rise in a country's ADD always decreases its rival country's welfare, but there is the possibility that it also reduces its own welfare in a certain case.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 195-208
Issue: 2
Volume: 26
Year: 2017
Month: 2
X-DOI: 10.1080/09638199.2016.1236831
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1236831
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:2:p:195-208




Template-Type: ReDIF-Article 1.0
Author-Name: Felipa de Mello-Sampayo
Author-X-Name-First: Felipa
Author-X-Name-Last: de Mello-Sampayo
Title: Testing competing destinations gravity models – evidence from BRIC International
Abstract: 
 This paper derives and compares two competing-destinations formulation of the gravity model applied to trade in intermediates. We build a probabilistic input demand function from entropy maximization in which firms may purchase some of their inputs from other firms paying the required transport costs and accounting for the spatial structure of trading partners in a geographical system. In the second model, firms trade inputs to reduce the overall cost of production and intermediate sales are encouraged by low distance costs and low competition from alternative input sources. Even if the gravity equations look similar, we show that their underlying structures are different, and that the type of gravity equation has significant implications for the estimation technique adopted.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 277-294
Issue: 3
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638199.2016.1239752
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1239752
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:277-294




Template-Type: ReDIF-Article 1.0
Author-Name: Heather Congdon Fors
Author-X-Name-First: Heather
Author-X-Name-Last: Congdon Fors
Title: Globalization and school enrollment in a panel of countries
Abstract: 
 As the process of globalization has gained momentum in the past few decades, so too has interest in the effects of globalization on various socioeconomic outcomes grown. In this paper, I investigate the relationship between globalization and primary school enrollment. Both the economic globalization and social globalization measures from the KOF Index of Globalization are utilized in the analysis in order to capture the broad nature of globalization. The results of the panel data analysis indicate that there is a weak relationship between economic globalization and primary school enrollment, whereas the relationship between social globalization and primary school enrollment is both robust and highly significant. Examining the data by groups of countries indicates that relationship between economic globalization and school enrollment is positive and significant in Latin America and the Caribbean and in Asia, while it is weakly negative in Eastern Europe. The positive relationship between social globalization and school enrollment on the other hand is driven by countries in Latin America and the Caribbean and the Middle East and Africa.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 295-315
Issue: 3
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638199.2016.1243723
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1243723
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:295-315




Template-Type: ReDIF-Article 1.0
Author-Name: Rao Muhammad Atif
Author-X-Name-First: Rao Muhammad
Author-X-Name-Last: Atif
Author-Name: Liu Haiyun
Author-X-Name-First: Liu
Author-X-Name-Last: Haiyun
Author-Name: Haider Mahmood
Author-X-Name-First: Haider
Author-X-Name-Last: Mahmood
Title: Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model
Abstract: 
 The most important and imperative objective of the developing nations is rapid economic growth and exports are generally considered as an engine for economic growth. Being an agro-based economy, agriculture exports play pivotal role not only in economic growth but also in socioeconomic uplifting. This study aims at evaluating main determinants of agricultural exports of Pakistan by applying stochastic frontier gravity model over the period of 1995–2014 for a sample of 63 countries. In addition, the study also analyzes whether there is any untapped export potential between Pakistan and the trading partners in agriculture sector. The results confirm the consistency of gravity model for agriculture exports of Pakistan. Likewise, the estimates also point out that bilateral exchange as well as tariff rates also effect agriculture exports. The study has also incorporated the effect of common border, common culture, colonial history and preferential trading agreements by including their respective dummies. The study confirms the significance of each factor, except common language, with their respective magnitude. Moreover, technical efficiency estimates reveal that Pakistan has great export potential with neighboring, Middle Eastern and European countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 257-276
Issue: 3
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638199.2016.1243724
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1243724
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:257-276




Template-Type: ReDIF-Article 1.0
Author-Name: Rudra P. Pradhan
Author-X-Name-First: Rudra P.
Author-X-Name-Last: Pradhan
Author-Name: Mak B. Arvin
Author-X-Name-First: Mak B.
Author-X-Name-Last: Arvin
Author-Name: John H. Hall
Author-X-Name-First: John H.
Author-X-Name-Last: Hall
Author-Name: Mahendhiran Nair
Author-X-Name-First: Mahendhiran
Author-X-Name-Last: Nair
Title: Trade openness, foreign direct investment, and finance-growth nexus in the Eurozone countries
Abstract: 
 The paper investigates causal relationships between trade openness, foreign direct investment, financial development, and economic growth in 19 Eurozone countries over the period 1988–2013. Using a panel vector error-correction model (VECM), the empirical results show that these variables are cointegrated. The study shows that a combination of opening the Eurozone countries for trade and fostering their financial and economic development have elevated inflows of foreign direct investment into the region in the long run. At the same time, increasing inflows of foreign direct investment in the short run have propelled economic growth, which in return has strengthened the role of financial development and international trade to sustain economic growth in the region through feedback effects. The empirical results have important policy implications for countries in the Eurozone, especially those who face challenges as a result of lack of confidence in their financial system and those who face a sovereign debt crisis.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 336-360
Issue: 3
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638199.2016.1249392
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1249392
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:336-360




Template-Type: ReDIF-Article 1.0
Author-Name: Shoya Ishimaru
Author-X-Name-First: Shoya
Author-X-Name-Last: Ishimaru
Author-Name: Soo Hyun Oh
Author-X-Name-First: Soo Hyun
Author-X-Name-Last: Oh
Author-Name: Seung-Gyu Sim
Author-X-Name-First: Seung-Gyu
Author-X-Name-Last: Sim
Title: Trade preferences and political equilibrium associated with trade liberalization
Abstract: 
 This paper, motivated by the so-called North–South problem in trade, analyzes ex ante trade preferences and the source of potential political conflicts regarding trade liberalization. Developing a dynamic extension of the traditional Heckscher–Ohlin model with imperfect labor mobility and tracking overall dynamic paths from the autarky to free-trade steady states, we demonstrate that in the presence of inter-sectoral migration barrier, bilateral free-trade agreements can be welcomed (opposed) by the majority of workers in a capital-abundant (labor-abundant) country, which is inconsistent with the welfare prediction by Stolper and Samuelson. This paper also proposes a numerical algorithm to solve for the entire transition path of the model under rational expectation. Our simulation experiments further reveal that preannounced and delayed implementation can facilitate a bilateral free-trade agreement by partially neutralizing short-run transitional gains and losses so as to persuade the losers to support the reform without affecting the beneficiaries’ trade preferences.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 361-384
Issue: 3
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638199.2016.1252417
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1252417
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:361-384




Template-Type: ReDIF-Article 1.0
Author-Name: Arta Mulliqi
Author-X-Name-First: Arta
Author-X-Name-Last: Mulliqi
Author-Name: Nick Adnett
Author-X-Name-First: Nick
Author-X-Name-Last: Adnett
Author-Name: Mehtap Hisarciklilar
Author-X-Name-First: Mehtap
Author-X-Name-Last: Hisarciklilar
Title: Human capital and exports: A micro-level analysis of transition countries
Abstract: 
 This paper investigates the impact of human capital endowments on export intensity employing firm-level data for 29 transition economies. A particular focus is placed on comparing and contrasting Central and Eastern Europe countries (CEECs) with those from the former Soviet Union, the Commonwealth of Independent States (CIS). The impact of the share of employees with higher education, provision of on-the-job training, years of experience of the top manager and labour cost on export intensity is assessed. To test these relationships, Tobit and Fractional Logit approaches are adopted. The estimation results suggest that, overall, having a more educated workforce exerts a positive impact on the export intensity of firms in transition economies, the magnitude being larger for CEECs. Average labour cost, as an alternative measure, also turns out to exert a positive but stronger impact. Insufficient evidence is found of a role for training programmes and years of experience of the top manager.
Journal: The Journal of International Trade & Economic Development
Pages: 775-800
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1603319
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1603319
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:7:p:775-800




Template-Type: ReDIF-Article 1.0
Author-Name: Piyush Chandra
Author-X-Name-First: Piyush
Author-X-Name-Last: Chandra
Title: Multiproduct firms and antidumping duties: Evidence from India
Abstract: 
 With the growing availability of high-quality higher-dimension data in international trade, many new stylized facts have also emerged. One such stylized fact is that multiproduct firms play a significant role in international trade. In this paper, we investigate the effect of US antidumping duties on the exports of Indian multiproduct firms. In particular, we study whether US antidumping duties lead the Indian exporter to alter their product-scope to third country markets (aka to trade partners other than the US). Using a unique transaction-level data from India, we find that firms affected by US antidumping duties increased the number of products exported to other destinations by about 0.7 products, on average. This translates to a substantial 40% increase in the product-scope of these firms because a typical Indian exporting firm exported an average of 1.8 products to a given destination in our sample. We also find that firms whose products spanned multiple sectors drove most of this increase. However, we do not find any difference in the product-scope response of firms producing differentiated vs. those producing homogenous products. We find our results to be robust across various specification and sample size changes.
Journal: The Journal of International Trade & Economic Development
Pages: 801-828
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1604789
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1604789
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:7:p:801-828




Template-Type: ReDIF-Article 1.0
Author-Name: Austin Drenski
Author-X-Name-First: Austin
Author-X-Name-Last: Drenski
Author-Name: Ross Hallren
Author-X-Name-First: Ross
Author-X-Name-Last: Hallren
Author-Name: Jean N. Lee
Author-X-Name-First: Jean N.
Author-X-Name-Last: Lee
Title: Tariff evasion in global trade data
Abstract: 
 We find evidence of pervasive tariff evasion in the global data on trade from 1988 to 2015. Using over 35 million observations of data on import and export flows at the HS6 product category level, we find evidence of substantial underreporting of imports relative to export data on average and particularly when tariffs on product categories are high. These effects are stronger in more corrupt destination countries, as measured by the World Bank's Worldwide Governance Indicators [World Bank. 2016. Worldwide Governance Indicators. September 25, 2016]. In addition, evidence of tariff evasion increases significantly in economic downturns. We document these patterns in the global data and explore the welfare effects of this evasion by (1) putting a lower bound on the extent to which there are revenue losses from tariff evasion, and by (2) estimating the effects of corruption as measured by this indicator on global trade in a simple gravity model. We estimate that in total, revenue losses from tariff evasion are currently likely to exceed 400 to 670 million USD globally per year, and find that the effects of corruption on trade flows are ambiguous overall but change from weakly positive (‘grease the wheels’) to largely negative over the years in our sample.
Journal: The Journal of International Trade & Economic Development
Pages: 829-842
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1602667
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1602667
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:7:p:829-842




Template-Type: ReDIF-Article 1.0
Author-Name: Jana Riedel
Author-X-Name-First: Jana
Author-X-Name-Last: Riedel
Author-Name: Anja Slany
Author-X-Name-First: Anja
Author-X-Name-Last: Slany
Title: The potential of African trade integration – Panel data evidence for the COMESA-EAC-SADC Tripartite
Abstract: 
 The COMESA-EAC-SADC Tripartite FTA, formed in 2011, is supposed to be a milestone towards Africa's continental trade integration. This study analyzes the impact of regional integration among the Tripartite countries on their bilateral imports before that date to evaluate the latest integration efforts. We estimate an extended gravity model on a large panel of 51 African countries using yearly observations from 1995 to 2010. We proxy existing formal trade barriers by sample average tariff data on imports from the world as well as indicator variables for the membership in regional FTAs. We consider different estimation techniques and discuss distinct sets of fixed effects. The PPML regression results indicate that remaining tariffs are significantly negatively correlated with imports throughout the preferred multiplicative models. An FTA status does not show a clear-cut import enhancing effect. In the specifications that control for country-year effects, the EAC coefficient is positively correlated with imports, and the COMESA and SADC FTA membership show a positive relation to imports within some reduced-sample robustness checks.
Journal: The Journal of International Trade & Economic Development
Pages: 843-872
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1575457
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1575457
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Template-Type: ReDIF-Article 1.0
Author-Name: Khee Giap Tan
Author-X-Name-First: Khee Giap
Author-X-Name-Last: Tan
Author-Name: Luu Nguyen Trieu Duong
Author-X-Name-First: Luu Nguyen
Author-X-Name-Last: Trieu Duong
Author-Name: Hui Yin Chuah
Author-X-Name-First: Hui Yin
Author-X-Name-Last: Chuah
Title: Impact of exchange rates on ASEAN's trade in the era of global value chains: An empirical assessment
Abstract: 
 Exchange rate risk remains a key concern for export-oriented economies in Southeast Asia. Traditionally, export performance is thought to be adversely affected by exchange rate appreciation and high exchange rate volatility. Nonetheless, in the context of global value chains where export production relies heavily on imported inputs, the trade effects of exchange rate may be weakened. Using the OECD-WTO Trade in Value-added (TiVA) database, this paper seeks to tease out the association between exchange rate movements, volatility and aggregate exports of goods and services among ASEAN economies. More importantly, it investigates whether integration into GVCs affects these relationships. Applying panel regression techniques to a sample of eight ASEAN countries over the period 1995–2011, we found that high share of foreign value added (FVA) embodied in exports almost completely offsets the negative effect of an appreciation in the real effective exchange rate (REER) on real gross exports. At the same time, high FVA share also dampens the negative association between exports and increased REER volatility.
Journal: The Journal of International Trade & Economic Development
Pages: 873-901
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1607532
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1607532
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:7:p:873-901




Template-Type: ReDIF-Article 1.0
Author-Name: Amjad M. Kisswani
Author-X-Name-First: Amjad M.
Author-X-Name-Last: Kisswani
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Title: Modeling the employment–oil price nexus: A non-linear cointegration analysis for the U.S. market
Abstract: 
 Theoretically, fluctuations in oil prices are expected to affect production costs and may force businesses to delay their investment decisions, triggering pressures on employment. Following these theoretical notions, this paper investigates the asymmetric impact of oil prices on employment (measured as total employment, male employment, and female employment), in a nonlinear cointegration structure for the U.S. market. In doing so, this paper adopts the nonlinear autoregressive distributed lags (NARDL) model to shed light on such asymmetric association, as the NARDL model recently emerged as a new direction in examining nonlinear cointegration and asymmetry. The empirical findings document a long-run asymmetric effect in case of total employment and male employment only. Furthermore, the short-run asymmetric effect was detected for all three employment categories. As a final point, the Granger Causality test documents a unidirectional causality running from oil price decrease to both total employment and male employment.
Journal: The Journal of International Trade & Economic Development
Pages: 902-918
Issue: 7
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638199.2019.1608461
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1608461
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:7:p:902-918




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Wu
Author-X-Name-First: Chen
Author-X-Name-Last: Wu
Title: Human capital, life expectancy, and the environment
Abstract: 
 This paper analyzes how transboundary pollution caused by the pursuit of economic growth in developing countries affects the environmental conditions and life expectancy in these countries and in neighboring developed countries. We develop an overlapping generations (OLGs) model, which considers the environmental interactions between two regions representing the developed and developing countries. We consider two models that differ in their environmental interactions: one in which the two regions share an environment and the other in which they do not. By comparing the environmental qualities of the two models’ steady states, we show that the two regions sharing an environment may enter a trap characterized by both lower environmental quality and shorter life expectancy due to a free rider problem.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 885-906
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1314543
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1314543
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Template-Type: ReDIF-Article 1.0
Author-Name: Jingbo Cui
Author-X-Name-First: Jingbo
Author-X-Name-Last: Cui
Title: Induced clean technology adoption and international trade with heterogeneous firms
Abstract: 
 This paper introduces an environmental externality and factor-biased technology adoption into a trade model with heterogeneous firms. This study explores how firms’ decisions of technology adoption and of exports are affected by openness to trade and the stringency of environmental regulations. It shows that: (1) these decisions induced by tightened environmental policies depend upon whether the upgraded technology is labor-biased or emission-biased; (2) the environmental impact of trade cost reductions on the aggregate emissions and price of emissions permits varies with the factor-biased feature; and (3) regardless of the factor-biased feature, the trade cost reduction induces firms to export and to upgrade the factor-biased technology, while it forces the least productive firms to exit the market. Moreover, the model is further calibrated to simulate policy scenarios of bilateral and unilateral variations in trade variable costs and environmental policies. The bilateral reduction of emissions cap may contribute to welfare gains in both home and foreign countries. The unilateral action of tightening environmental policy in the home country may hurt the home country, but makes the foreign country better off.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 924-954
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1320579
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1320579
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Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Yoong Wong
Author-X-Name-First: Chin-Yoong
Author-X-Name-Last: Wong
Author-Name: Yoke-Kee Eng
Author-X-Name-First: Yoke-Kee
Author-X-Name-Last: Eng
Title: International spillovers of China's structural reforms
Abstract: 
 This paper sheds light on the international spillovers of China's reforms in upgrading industrial capabilities, liberalizing capital account, internationalizing the renminbi, and transition to flexible exchange rates. Drawing on two-country New Keynesian model of endogenous entry and portfolio adjustment, we find that China's industrial upgrading that peddles on yuan appreciation lifts all boats through global production network irrespective of capital account convertibility, degree of renminbi internationalization, and exchange rate reform. Feasibility of appreciation-driven upgrading is called into question, however, when renminbi reform and capital account liberalization go in parallel. We also show that international spillovers disappear once renminbi internationalization is associated with liberalized capital account and flexible renminbi exchange rates.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 955-978
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1325071
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1325071
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:8:p:955-978




Template-Type: ReDIF-Article 1.0
Author-Name: Fetene Bogale Hunegnaw
Author-X-Name-First: Fetene Bogale
Author-X-Name-Last: Hunegnaw
Author-Name: Soyoung Kim
Author-X-Name-First: Soyoung
Author-X-Name-Last: Kim
Title: Foreign exchange rate and trade balance dynamics in East African countries
Abstract: 
 This study investigates the effects of real exchange rate on trade balance in East African countries. In contrast to past studies that have often focused on one country in the region and adopted traditional empirical methods that are subject to shortcomings, the present study employed the ARDL procedure and investigated the issue in 10 East African countries. The main results are as follows. First, real exchange depreciation significantly improves trade balance for four countries in individual country estimations, as well as in panel estimation. Second, the elasticity of trade balance with respect to real exchange rate is inelastic. Elasticity slightly increases after exchange rate liberalization but remains inelastic. Third, significant short-run fall was not found for trade balance, which suggests lack of evidence for J-curve relationship
Journal: The Journal of International Trade &amp; Economic Development
Pages: 979-999
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1327611
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1327611
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Template-Type: ReDIF-Article 1.0
Author-Name: Dambar Uprety
Author-X-Name-First: Dambar
Author-X-Name-Last: Uprety
Title: The impact of international trade on emigration in developing countries
Abstract: 
 This paper studies how international trade affects emigration in developing countries. This is a new aspect as previous studies investigated the impact of immigration on trade from host countries perspective. However, there are also reasons to believe that trade may affect the propensity to emigrate in the home countries, leading to potential brain drain in developing countries, especially given the theoretical hypothesis in Stolper–Samuelson (S–S) theorem within Heckscher–Ohlin (H–O) factor-proportion model that more educated workers are more likely to emigrate due to an increase in international trade. When low-skill abundant developing countries liberalize trade, the reward of the scarce factor (skilled labor) is reduced in these countries, but it increases in the high-skill abundant developed countries. Therefore, skilled workers in the developing countries see a strong incentive to migrate to developed countries. To test this hypothesis, this paper utilizes a panel of 133 developing countries for the period of 1980–2010 and finds that high-skilled workers are more likely to emigrate with trade while there appears to be no effect of trade on low-skilled workers.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 907-923
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1329847
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1329847
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:8:p:907-923




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Nguyet Anh Nguyen
Author-X-Name-First: Thi Nguyet Anh
Author-X-Name-Last: Nguyen
Author-Name: Thi Hong Hanh Pham
Author-X-Name-First: Thi Hong Hanh
Author-X-Name-Last: Pham
Author-Name: Thomas Vallée
Author-X-Name-First: Thomas
Author-X-Name-Last: Vallée
Title: Similarity in trade structure: Evidence from ASEAN + 3
Abstract: 
 The present paper aims to explore the competition in exports among ASEAN + 3 members by applying the export similarity index for the disaggregation export data from 1990 to 2014. We also discuss the changes of comparative advantage of ASEAN + 3's exports through the revealed comparative advantage index and its relation with similarity index. First, the results support the idea that export similarity varies among ASEAN + 3 member states over the period 1990–2014. Second, we find evidence of several export communities. In particular, five countries, notably China, Japan, Malaysia, Singapore and South Korea, with the highest similarity index form an export community mainly in the electronic microcircuits and parts of office machines. Third, the revealed comparative advantage seems to be the key factor defining the similarity level of exports. Finally, the revealed comparative advantage analysis partly allows us to verify the Ricardo's theory and New Trade theory in the context of ASEAN + 3 trade integration.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1000-1024
Issue: 8
Volume: 26
Year: 2017
Month: 11
X-DOI: 10.1080/09638199.2017.1331372
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1331372
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Template-Type: ReDIF-Article 1.0
Author-Name: Sarra Ben Yahmed
Author-X-Name-First: Sarra
Author-X-Name-Last: Ben Yahmed
Author-Name: Sean Dougherty
Author-X-Name-First: Sean
Author-X-Name-Last: Dougherty
Title: Domestic regulation, import penetration and firm-level productivity growth
Abstract: 
 This paper shows that the impact of import penetration on firms’ productivity growth depends on firms’ distance to the efficiency frontier and on product market regulation. Using firm-level data for a substantial number of OECD countries from the late 1990s to late 2000s, the analysis reveals nonlinear effects of both sectoral import penetration and de jure product market regulation measures, depending on firms’ positions along the global distribution of productivity. Close to the technology frontier, import penetration has a strongly positive effect on firm-level productivity growth, with less stringent domestic regulation enhancing this effect substantially. However, far from the frontier, the effect of import penetration on firm-level productivity growth is much smaller and often not significant. Its interaction with domestic regulation generally has no statistically significant effect either. The heterogeneous effects of import penetration and domestic product market regulation on firm-level productivity growth are consistent with a neo-Schumpeterian view of trade and regulation.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 385-409
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1260632
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1260632
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:4:p:385-409




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel van den Berg
Author-X-Name-First: Marcel
Author-X-Name-Last: van den Berg
Author-Name: Charles van Marrewijk
Author-X-Name-First: Charles
Author-X-Name-Last: van Marrewijk
Title: Imports and productivity: the impact of geography and factor intensity
Abstract: 
 Usingmicro-data for Dutch firms, we argue that both the geographic component (what country is the import from) and the intensity component (what type of good is imported) is crucial for measuring and understanding productivity premia associated with importing. For example, our results indicate that the productivity premium associated with importing technology-intensive products from Taiwan differs from importing unskilled-labor-intensive products from Switzerland. We show that increasing distance and decreasing levels of development of the origin economy are negatively associated with the productivity premia of importing. Similarly, these premia are larger for technology- intensive goods and smaller for unskilled-labor-intensive goods. This implies that the geographic-intensity markets are unique and cannot be lumped together. In addition, a more dispersed import portfolio (the extensive dimension) is always positively associated with firm-level productivity.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 425-450
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1263359
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1263359
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:4:p:425-450




Template-Type: ReDIF-Article 1.0
Author-Name: Chengjun Shi
Author-X-Name-First: Chengjun
Author-X-Name-Last: Shi
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Title: Does dollar-pegging matter? A closer look at US trade deficits with China and Germany
Abstract: 
 China and Germany are comparable in terms of having persistent trade surplus with the USA, but they differ in how their currencies are valued. By invoking the China–Germany comparison, this paper finds that there is weak, if any, statistical association between the US trade deficit and the exchange rate. This finding is robust to long-run vs. short-run horizon, without vs. with an instrumental variable, and in-sample fitting vs. out-of-sample forecasting. This paper predicts that the US trade deficits with China and Germany will continue to rise in the presence of a recovery in the US economy.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 451-472
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1264988
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1264988
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:4:p:451-472




Template-Type: ReDIF-Article 1.0
Author-Name: Xianzhong Yi
Author-X-Name-First: Xianzhong
Author-X-Name-Last: Yi
Author-Name: Alireza Naghavi
Author-X-Name-First: Alireza
Author-X-Name-Last: Naghavi
Title: Intellectual property rights, FDI, and technological development
Abstract: 
 This paper presents two simultaneous trade-offs faced by a developing country in protecting intellectual property rights (IPRs), namely (1) between attracting foreign direct investment and deterring international technology spillovers, and (2) between encouraging domestic innovation and suppressing technology diffusion. The optimal level of IPR protection depends on the technological capability of the host country. In less developed countries, IPRs should be just strong enough to induce FDI since international technology spillovers are the dominant source of technological development. A stronger level of IPR protection is instead recommended for more advanced emerging economies as a tool to exploit the potential of their domestic innovators. The results cast doubt on the adequacy of globally harmonized IPR standards that do not consider the level of development.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 410-424
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1266380
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1266380
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:4:p:410-424




Template-Type: ReDIF-Article 1.0
Author-Name: Saeed Rasekhi
Author-X-Name-First: Saeed
Author-X-Name-Last: Rasekhi
Author-Name: Zahra Sheidaei
Author-X-Name-First: Zahra
Author-X-Name-Last: Sheidaei
Author-Name: Seyed Peyman Asadi
Author-X-Name-First: Seyed Peyman
Author-X-Name-Last: Asadi
Title: A causal relationship between trade efficiency and economic efficiency: Evidence from dynamic simultaneous equations models
Abstract: 
 The objective of this study is to examine the causal relationship between economic efficiency and trade efficiency using dynamic panel data in simultaneous equations models for global panel of 50 countries over the period 2000–2014. The study also implements this interrelationship for two groups of countries based on their level of development. Two models applying different factors reflecting countries’ economic and trade policies are proposed to measure the targeted efficiencies using data envelopment analysis method. Evidence from the simultaneous equations models to identify a relationship between economic efficiency and trade efficiency supports the bidirectional causality between them in all three categories of countries. It has been also found that both economic and institutional factors have a significant positive influence on trade and growth performance, with the effect of political factors being especially pronounced for developing countries that suffer from weak institutional capacity. These empirical findings are of particular interest to policy-makers as they help to build sound policies in order to maximize trade performance as well as economic efficiency.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 473-487
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1267788
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1267788
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Template-Type: ReDIF-Article 1.0
Author-Name: Chengchun Li
Author-X-Name-First: Chengchun
Author-X-Name-Last: Li
Author-Name: Syed Mansoob Murshed
Author-X-Name-First: Syed Mansoob
Author-X-Name-Last: Murshed
Author-Name: Sailesh Tanna
Author-X-Name-First: Sailesh
Author-X-Name-Last: Tanna
Title: The impact of civil war on foreign direct investment flows to developing countries
Abstract: 
 We investigate the impact of civil war on foreign direct investment (FDI) flows to developing countries. We employ a new data-set that disaggregates FDI inflows to primary, secondary and tertiary sectors. Second, we control for a richer set of economic and institutional variables that could determine FDI inflows including population, gross domestic product (GDP) per capita, the degree of trade openness, exchange rate variability, inflation, the governance structure of the host country using International Country Risk Guide data and its regime type using the POLITY autocracy–democracy data. We also address the reverse causality between FDI and conflict and the potential endogeneity of explanatory variables by employing dynamic system generalised method of moments (GMM) techniques in estimation. Our results indicate that primary sector FDI flows to developing countries are not significantly affected by civil war, whereas secondary and tertiary sectors FDI are more sensitive to such outbreak, potentially leading to reversals of existing FDI. Among institutional variables, government stability and control of corruption are more significant compared to regime type, law and order, and bureaucratic quality.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 488-507
Issue: 4
Volume: 26
Year: 2017
Month: 5
X-DOI: 10.1080/09638199.2016.1270347
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1270347
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:4:p:488-507




Template-Type: ReDIF-Article 1.0
Author-Name: Lumengo Bonga-Bonga
Author-X-Name-First: Lumengo
Author-X-Name-Last: Bonga-Bonga
Title: Fiscal policy, monetary policy and external imbalances: Cross-country evidence from Africa's three largest economies
Abstract: 
 This paper determines which of the three policy approaches: fiscal, monetary and exchange rate can better address external imbalances in the three largest African economies, Nigeria, South Africa and Egypt. To this end, use is made of the panel vector autoregressive model to assess the dynamic effects of shocks emanating from the three policy approaches. The findings of the paper indicate that unlike in many emerging and developed economies the current accounts of these three economies react to fiscal, monetary and exchange rate shocks. More particular, the results of the empirical analysis show that the appreciations of the currencies in the three economies lead to current account surpluses. This is mainly attributed to the fact that most African economies have a high propensity to import with limited productive capacity for exports.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 123-136
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1507045
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1507045
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:2:p:123-136




Template-Type: ReDIF-Article 1.0
Author-Name: Gunja Baranwal
Author-X-Name-First: Gunja
Author-X-Name-Last: Baranwal
Title: Links between foreign direct investment and human capital formation: Evidence from the manufacturing sector in India
Abstract: 
 This paper is related to the literature on the effect of foreign direct investment (FDI) on the labour market of host countries. Labour market literature has focused on the demand side of FDI; that is, increasing wage inequality by demanding more skilled workers or just increasing the overall average wages. On the supply side, FDI can enrich the skilled labour force of the host country by the provision of on-the-job training or learning or through indirect technological spillover effects. This paper takes into account both these effects and tests for human capital formation effect of FDI in India for core manufacturing sector firms for the period 2001&#x2013;2015 using the Prowess database of the Centre for Monitoring Indian Economy. It also takes into account the endogeneity of decision-making on the part of foreign firms in locating FDI. Different dynamic panel data methods are used with static and dynamic generalized method of moments techniques. This study does not find any positive supply-side human capital formation effects of FDI but finds a positive demand-side effect of FDI of raising wage inequality and average wages. The results remain robust while taking into account heterogeneities at region, industry, size, and age of the firms.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 137-160
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1508304
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1508304
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:2:p:137-160




Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Meliciani
Author-X-Name-First: Valentina
Author-X-Name-Last: Meliciani
Author-Name: Grzegorz Tchorek
Author-X-Name-First: Grzegorz
Author-X-Name-Last: Tchorek
Title: Internationalization strategy, financial constraints and assets (in)tangibility. A study of euro area countries after the 2008 crisis
Abstract: 
 This paper studies the determinants of companies&#x2019; performance during the crisis based on their short-term (sales changes) and medium-term (exit) reaction, using firms&#x2019; data from the European Firms in Global Economy (EFIGE) survey and combining them with balance-sheet statistics. The results, based on the four largest euro area countries show that vulnerability to the crisis depended on a company&#x2019;s mode of international operation. More sophisticated forms of internationalization increased firms&#x2019; resilience in the first and second waves of the crisis. The paper also investigates the mediating role of intangible assets and financial constraints in the relationship between internationalization and companies&#x2019; response to the crisis. While intangible assets were very important for preventing a drop in sales for internationalized firms immediately after 2008, they amplified the probability of firms&#x2019; exit five years after the crisis in weaker European countries (Spain and Italy). At the same time, financial constraints increased companies&#x2019; probability of exit. Innovation prevented a drop in firms&#x2019; sales and firms&#x2019; exit.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 161-188
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1514065
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1514065
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:2:p:161-188




Template-Type: ReDIF-Article 1.0
Author-Name: Bertrand Blancheton
Author-X-Name-First: Bertrand
Author-X-Name-Last: Blancheton
Author-Name: Dina Chhorn
Author-X-Name-First: Dina
Author-X-Name-Last: Chhorn
Title: Export diversification, specialisation and inequality: Evidence from Asian and Western countries
Abstract: 
 This paper examines the dynamic effect of globalization at the disaggregated level of sectoral export diversification and manufacturing specialization on income inequality using a panel data set of 52 Asian and Western countries from 1988 to 2014. The paper uses dynamic panel data models applying the System Generalized Method of Moments (GMM) estimations that provide more accurate and better results than those obtained with static panel data models. The results suggest that there is no statistically significant relationship between manufacturing specialization and inequality while sectoral export diversification has been the driving force of inequality. For sub-groups of countries, higher sectoral export diversification increases inequality and higher manufacturing specialization decreases inequality in high-income Asian countries and European Union (EU) member states. Moreover, the study finds insignificant effects in low-income Asian countries and Anglo-Saxon countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 189-229
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1533032
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1533032
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:2:p:189-229




Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Campi
Author-X-Name-First: Mercedes
Author-X-Name-Last: Campi
Author-Name: Marco Due&#xF1;as
Author-X-Name-First: Marco
Author-X-Name-Last: Due&#xF1;as
Author-Name: Matteo Barigozzi
Author-X-Name-First: Matteo
Author-X-Name-Last: Barigozzi
Author-Name: Giorgio Fagiolo
Author-X-Name-First: Giorgio
Author-X-Name-Last: Fagiolo
Title: Intellectual property rights, imitation, and development. The effect on cross-border mergers and acquisitions
Abstract: 
 In this paper, we analyze whether the recent global process of strengthening and harmonization of intellectual property rights (IPRs) affects decisions of cross-border mergers and acquisitions (M&amp;As). We investigate if IPRs have a differential effect across sectors of different technology content and for countries of different development level. Also, we study how imitation abilities of target countries interact with the tightening of IPRs. Using data for the post-TRIPS period (1995&#x2013;2010), we estimate an extended gravity model to study the bilateral number of M&amp;As, including a measure of the strength of IPRs systems on target countries and a set of control variables usually considered as determinants of M&amp;As. The estimation results verify the gravity structure for M&amp;As and show that IPRs &#x2013;and enforcement&#x2013; influence decisions of cross-border M&amp;As in all sectors regardless of their technological content. However, IPRs are more important in countries with high imitation abilities and in sectors of high-technology content. Furthermore, a strengthening of IPRs leads to a larger increase of M&amp;As in developing countries than in developed countries. These results call the attention on the possible implications for least developed economies and challenge the adequacy of a globally harmonized IPRs systems.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 230-256
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1518477
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1518477
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiancai Pi
Author-X-Name-First: Jiancai
Author-X-Name-Last: Pi
Author-Name: Shenyu Shi
Author-X-Name-First: Shenyu
Author-X-Name-Last: Shi
Title: Public pollution abatement and wage inequality
Abstract: 
 This paper constructs three-sector general equilibrium models to investigate how public pollution abatement affects the skilled&#x2013;unskilled wage inequality. In the basic model with full employment, we find that a higher degree of public pollution abatement will decrease the wage inequality if the intensity of skilled labor in the urban skilled sector is sufficiently large and expand or narrow down the wage gap if this intensity is sufficiently small. In the extended models, we consider other four cases, and obtain the results similar or dissimilar to that of the basic model.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 257-275
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2018.1521464
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1521464
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best Paper Prize 2018
Journal: The Journal of International Trade &amp; Economic Development
Pages: 276-276
Issue: 2
Volume: 28
Year: 2019
Month: 2
X-DOI: 10.1080/09638199.2019.1557429
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1557429
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Template-Type: ReDIF-Article 1.0
Author-Name: Binyam Afewerk Demena
Author-X-Name-First: Binyam Afewerk
Author-X-Name-Last: Demena
Author-Name: Syed Mansoob Murshed
Author-X-Name-First: Syed Mansoob
Author-X-Name-Last: Murshed
Title: Transmission channels matter: Identifying spillovers from FDI
Abstract: 
 The empirical literature on the spillovers of foreign direct investment (FDI) has so far not analysed the well-established theoretical transmission channels through which FDI impacts on domestic firms. This paper shows how channels of transmission matter for productivity spillovers from FDI by providing more fuller and nuanced picture of the effects. We analyse a panel of eight sub-Saharan Africa countries spanning the period 2006&#x2013;2014 and demonstrate the empirical relevance of distinguishing three channels&#xA0;&#x2013;&#xA0;demonstration, labour mobility, and competition. We provide measures of these effects and also show that the size, significance, and sign of spillover effects depend on the local absorptive capacity, technology levels, geographical proximity, and foreign ownership structure. Overall, results suggest that demonstration spillovers are large and economically significant, whereas the patterns of labour mobility and competition spillovers are not stable across the various specifications and measures. Finally, the analysis involves several measures of further investigations and robustness checks. Results are robust to the construction of spillover and outcome variables, the introduction of additional explanatory variables and an alternative estimation method.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 701-728
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1439083
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1439083
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Template-Type: ReDIF-Article 1.0
Author-Name: Menggen Chen
Author-X-Name-First: Menggen
Author-X-Name-Last: Chen
Author-Name: Xuemei Hu
Author-X-Name-First: Xuemei
Author-X-Name-Last: Hu
Title: Linkage between consumer price index and purchasing power parity: Theoretic and empirical study
Abstract: 
 Price measurement is always important in the economic analysis. Both the consumer price index (CPI) and purchasing power parity (PPP) belong to the scope of price statistics, and the former is a temporal price index, while the latter is a spatial price index. Consumer price survey accounts for more than 70% in the coverage of the international comparison program (ICP), constituting the main part of the catalog of ICP specifications. The similar calculation method, data investigation, and compilation process also suggest that there should be an intrinsic linkage between CPI and PPP. On this basis, an approximate quantity equation is derived for them in terms of price measurement. The empirical analysis with a sample of 178 economies ranging from 2000 to 2013 found that the CPI and PPP are positive correlated significantly, and there is a long-term equilibrium relationship between them. In short run, the CPI may lead to a deviation from the equilibrium state of PPP, but the error correction mechanism makes this deviation come back gradually. Meanwhile, PPP has a price pass-through effect on CPI. The inherent relationship between CPI and PPP provides support for the integration of the CPI statistical system and the global ICP project.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 729-760
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1430164
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1430164
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Template-Type: ReDIF-Article 1.0
Author-Name: Tie-Ying Liu
Author-X-Name-First: Tie-Ying
Author-X-Name-Last: Liu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Testing explosive behavior of public debt in OECD countries
Abstract: 
 This paper examines the beginning and end of potentially speculative explosive public debt patterns occurring in 29 major OECD countries. The method we use is most appropriate for practical implementation with a time series and delivers a consistent date-stamping strategy for the origination and termination of multiple explosive behaviors. Our results also test that most OECD countries, except for Israel, Luxembourg, and Turkey, have experienced periods of explosive public debt. The stationarity of public debt varies by country. Approximately two-thirds of the explosive periods occurred prior to 2012. Based on the scale, structure, and safety of government debt for dynamic monitoring and evaluation, governments can improve risk management measures.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 761-791
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1444784
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1444784
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Yan
Author-X-Name-First: Jing
Author-X-Name-Last: Yan
Title: Do mergers and acquisitions promote trade? Evidence from&#xA0;China
Abstract: 
 Many studies have shown that mergers and acquisitions (M&amp;A) raise firms' productivity. Few researches investigate whether exporters can enhance export performance after M&amp;A through higher levels of efficiency. Based on detailed information on M&amp;A activities of Chinese firms, China's customs trade data and National Bureau of Statistics surveys, we investigate the causal effect of M&amp;A on trade performance. In particular, the value and the volume of firm exports, product quality, product scope and the number of export destinations have been examined. We find positive and significant effects of M&amp;A on all the examined indicators of export performance. These findings are generally robust to a variety of robustness checks. We further observe that state-owned firms are the least likely to benefit from M&amp;A. We also obtain evidence that firms benefit more from M&amp;A deals if they are targets or merge with foreign firms. Overall, this paper is to our knowledge the first study that uses micro-level data in multiple industries to examine the relationship between M&amp;A and exports of heterogeneous firms. Our results deepen our understanding of the consequences of M&amp;A by suggesting another potential benefit, and hence provide policy implications for merger regulation.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 792-805
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1451553
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1451553
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Template-Type: ReDIF-Article 1.0
Author-Name: Chuantian He
Author-X-Name-First: Chuantian
Author-X-Name-Last: He
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: John Whalley
Author-X-Name-First: John
Author-X-Name-Last: Whalley
Title: General equilibrium trade modelling with Canada&#x2013;US transportation costs
Abstract: 
 Transportation costs are an important topic in international trade, but seldom have researchers paid attention to general equilibrium trade modelling with transportation costs and explored their relevant effects. This paper uses numerical general equilibrium trade model structures to simulate the impacts of transportation costs on welfare and trade for a Canada&#x2013;US country pair case. We compare two groups of model structures: Armington assumption models and homogeneous goods models. Within these two groups of models, we also compare balanced trade structures to trade imbalance structures and production function transportation costs to iceberg transportation costs. Armington goods models generate more absolute welfare gains from transportation cost elimination than homogeneous goods models. Welfare gains under balanced trade structures are larger in production function transportation cost scenarios than in iceberg transportation cost scenarios, but under trade imbalance structures, welfare gains are greater under iceberg transportation cost scenarios. Canada's welfare gains in the iceberg transportation cost scenario are significantly larger than gains in the production function transportation cost scenario. On trade effects, homogeneous goods models generate more export and import gains, balanced trade structures have more trade variations, and iceberg transportation costs generate more trade effects.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 806-829
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1454499
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1454499
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:7:p:806-829




Template-Type: ReDIF-Article 1.0
Author-Name: Fumitaka Furuoka
Author-X-Name-First: Fumitaka
Author-X-Name-Last: Furuoka
Title: Exports and economic growth in Sub-Saharan Africa: New insights from innovative econometric methods
Abstract: 
 This study examined the relationship between exports and economic growth in Sub-Saharan Africa. It employed innovative econometric methods, including the Fourier ADF with structural break test, a comparative analysis of three causality tests and a rolling causality test procedure. The findings suggested that there was a statistically significant relationship between exports and economic growth in several Sub-Saharan countries. However, the causal linkages between exports and economic growth in these countries were found to be weak and unstable. These empirical results have some notable policy implications.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 830-855
Issue: 7
Volume: 27
Year: 2018
Month: 10
X-DOI: 10.1080/09638199.2018.1455890
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1455890
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:7:p:830-855




Template-Type: ReDIF-Article 1.0
Author-Name: Korhan Gokmenoglu
Author-X-Name-First: Korhan
Author-X-Name-Last: Gokmenoglu
Author-Name: Dervis Kirikkaleli
Author-X-Name-First: Dervis
Author-X-Name-Last: Kirikkaleli
Author-Name: Baris Memduh Eren
Author-X-Name-First: Baris Memduh
Author-X-Name-Last: Eren
Title: Time and frequency domain causality Testing: The causal linkage between FDI and economic risk for the case of Turkey
Abstract: 
 This study aims to explore the causal relationship between economic risk and foreign direct investment (FDI) inflows for the case of Turkey. With the aim of establishing robust findings for the research in mind, both traditional and modern causality techniques are utilized; time domain Granger (1969, “Investigating Causal Relations by Econometric Models and Cross-Spectral Methods.” Econometrica 37: 424–438.), Toda and Yamamoto (1995, “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes.” Journal of Econometrics 66 (1–2): 225–250.), Fourier Toda-Yamamoto and frequency domain Breitung and Candelon (2006, “Testing for short- and long-run causality: A frequency-domain approach.” Journal of Econometrics 132 (2): 363–378.) spectral causality test. Our empirical findings reveal that; economic risk changes in Turkey significantly lead to changes in FDI inflows. However, there is no evidence of causality running from FDI to economic risk. The findings imply that economic risk is an essential determinant of FDI inflows in Turkey. Our findings are compatible with historical macroeconomic developments in Turkey and imply important policy implications. The results of this study can be generalized for other emerging economies that have similar macroeconomic environments, in order to create useful policy implications regarding FDI inflow.
Journal: The Journal of International Trade & Economic Development
Pages: 649-667
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2018.1561745
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1561745
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:6:p:649-667




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullah Gulcu
Author-X-Name-First: Abdullah
Author-X-Name-Last: Gulcu
Author-Name: Dilem Yildirim
Author-X-Name-First: Dilem
Author-X-Name-Last: Yildirim
Title: Smooth breaks and nonlinear mean reversion in real interest parity: Evidence from East Asian countries
Abstract: 
 This study aims to explore the empirical validity of the real interest rate parity (RIP) hypothesis for East Asian countries using Japan as the base country. To this end, we employ the recently proposed unit root tests of Christopoulos and Leon-Ledesma that account for both multiple smooth structural breaks of unknown form and nonlinear mean reversion in the series. Our empirical results uncover overwhelming evidences in favor of the RIP hypothesis for the whole countries in our sample. More specifically, through a Fourier approximation, it is observed that all real interest rate differentials display a mean-reverting behavior around an infrequently smooth-breaking mean, with the breaks being in accordance with the financial reforms and economic crises witnessed by the countries. Moreover, the degree of mean reversion appears to vary nonlinearly with the size of real interest rate appreciations and depreciations.
Journal: The Journal of International Trade & Economic Development
Pages: 668-685
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2019.1582083
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1582083
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:6:p:668-685




Template-Type: ReDIF-Article 1.0
Author-Name: Tatyana Chesnokova
Author-X-Name-First: Tatyana
Author-X-Name-Last: Chesnokova
Author-Name: Jesmin Rupa
Author-X-Name-First: Jesmin
Author-X-Name-Last: Rupa
Author-Name: Nicholas Sim
Author-X-Name-First: Nicholas
Author-X-Name-Last: Sim
Title: Gender specific effects of exports on work decisions in Indonesia
Abstract: 
 This paper proposes a new household panel data approach to study the gender specific effects of exports on labor force participation and household work.We construct a novel measure, the Export Exposure index, by combining information about exports and the respondent's location. The index enables us to address a key identification issue, which is to estimate the effect of exports that is unconfounded by unobserved household characteristics and macroeconomic shocks. We construct a simple model to show that if women have a comparative disadvantage in market work relative to men, and if an increase in exports increases the gender wage gap, Labor force participation of the women would be negatively related to exports. We find that in Indonesia, exports encourage women to substitute their time away from paid labor participation towards unpaid house or family work, but have no statistically significant effect on men, as predicted by our model.
Journal: The Journal of International Trade & Economic Development
Pages: 686-711
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2019.1582685
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1582685
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:6:p:686-711




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Fen Yen
Author-X-Name-First: Meng-Fen
Author-X-Name-Last: Yen
Author-Name: Ruohan Wu
Author-X-Name-First: Ruohan
Author-X-Name-Last: Wu
Author-Name: Mario Javier Miranda
Author-X-Name-First: Mario Javier
Author-X-Name-Last: Miranda
Title: A general equilibrium model of bilateral trade with strategic public investment in commercial infrastructure
Abstract: 
 We explore how public investment in commercial infrastructure affects the composition of trade between countries. To this end, we develop a model of bilateral trade in which two countries produce, consume, and trade a continuum of goods. Goods are produced by a single homogeneous factor, labor, the productivity of which depends on the quality of the country’s commercial infrastructure, broadly conceived to encompass transportation, communication, and power transmission networks; regulatory and legal institutions; and basic research and educational systems. Countries may improve the quality of their commercial infrastructures through increased public investment. However, returns on these investments are constrained by fixed ‘natural’ endowments, with the better-endowed country enjoying greater labor productivity for a given level of public investment. We begin by analyzing optimal investment in public infrastructure in one country when public investment by the trading partner is fixed. We find that, ceteris paribus, greater public investment in commercial infrastructure raises general labor productivity, leading to gains in workers’ real income. We then analyze a non-cooperative game in which both countries strategically vary public investment in commercial infrastructure. We find that, in a Nash game, the better-endowed country optimally spends more on infrastructure and produces the goods requiring the greatest labor productivity. However, in a Stackelberg game, the results are ambiguous. An empirical analysis based on recent international trade data supports our theoretical finding that investment in public infrastructure is positively related to the export of ‘high-end’ goods.
Journal: The Journal of International Trade & Economic Development
Pages: 712-731
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2019.1588351
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1588351
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Template-Type: ReDIF-Article 1.0
Author-Name: Mengyun Wu
Author-X-Name-First: Mengyun
Author-X-Name-Last: Wu
Author-Name: Jabbar Ul-Haq
Author-X-Name-First: Jabbar
Author-X-Name-Last: Ul-Haq
Author-Name: Naeem uz Zafar
Author-X-Name-First: Naeem uz
Author-X-Name-Last: Zafar
Author-Name: Huaping Sun
Author-X-Name-First: Huaping
Author-X-Name-Last: Sun
Author-Name: Jingyu Jiang
Author-X-Name-First: Jingyu
Author-X-Name-Last: Jiang
Title: Trade liberalization and informality nexus: Evidence from Pakistan
Abstract: 
 This study investigates the impact of trade openness on informal sector employment during the drastic 1988s trade reforms of Pakistan. It is generally perceived that increased external competition in less developed countries results in as an expansion in informal sector, which has less compliance with labor market regulations. Using micro-level data of Pakistan, we study the adjustments in the employment of informal sector due to trade openness. We find that informality and trade openness are associated. In Pakistan, trade reforms have given rise to employment in the informal sector. Our findings are robust to different trade-related measures. A substantial flexibility in labor market is required to benefit from the gains of liberalization.
Journal: The Journal of International Trade & Economic Development
Pages: 732-754
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2019.1593489
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1593489
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Template-Type: ReDIF-Article 1.0
Author-Name: Kaushal Kishore
Author-X-Name-First: Kaushal
Author-X-Name-Last: Kishore
Title: Tax competition, imperfect capital mobility and the gain from non-preferential agreements
Abstract: 
 The gain to competing governments from entering into binding non-preferential tax agreements (that prevents discriminatory taxation in favor of mobile capital) depends on the extent of capital mobility between jurisdictions. In particular the gain is increasing in the cost of relocation of capital and the fraction of the domestic tax base which is relatively immobile. We show this in a symmetric model of tax competition between two governments where all capital is imperfectly mobile and differ only in their cost of relocation.
Journal: The Journal of International Trade & Economic Development
Pages: 755-774
Issue: 6
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638199.2019.1583764
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1583764
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:6:p:755-774




Template-Type: ReDIF-Article 1.0
Author-Name: Halis Kıral
Author-X-Name-First: Halis
Author-X-Name-Last: Kıral
Author-Name: Lutfi Erden
Author-X-Name-First: Lutfi
Author-X-Name-Last: Erden
Title: Bilateral trade effects of fiscal devaluation: Evidence from OECD countries
Abstract: 
 This paper empirically examines the effects of a fiscal devaluation on bilateral trade. To this end, employers’ social contribution (ESC) and value-added tax (VAT), which stand as the factors that represent typical fiscal devaluation, are embodied within the framework of a gravity model. Fixed effects vector decomposition (FEVD) technique is applied to the empirical models specified within this framework, employing panel data from 22 OECD countries over the 1980–2014 periods. The findings show that the effectiveness of the fiscal devaluation policy seems to alter with respect to how ESC and VAT are measured. Considering the fiscal devaluation policy implemented unilaterally, the policy turns out to be effective in nine countries in the sample.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 585-606
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2017.1402945
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1402945
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:585-606




Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Andre
Author-X-Name-First: Christophe
Author-X-Name-Last: Andre
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Current account sustainability in G7 and BRICS: Evidence from a long-memory model with structural breaks
Abstract: 
 In this paper, we extend the existing literature on current account sustainability by examining the relevance of long memory and structural breaks in modelling the dynamics of current account to gross domestic product (GDP) ratios in G7 and BRICS. Unlike standard unit root tests, which have low power, especially in cases where the series is characterized by a fractional process, the long-memory approach provides an exact measure of the degree of persistence. However, long-memory models are known to overestimate the degree of persistence of the series in the presence of structural breaks. We show that regime changes do exist in both the mean and trend of the current account to GDP ratios. Thus, we test persistence allowing for both smooth and sharp breaks. Our methodology also allows any number of sharp breaks, whereas standard unit root tests only permit either one or two breaks. Hence, our approach is more general and more robust to misspecifications caused by the omission of breaks than standard methods. We show that current accounts are sustainable in both groups of countries, with the G7 and South Africa displaying long-memory behaviour.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 638-654
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2017.1410853
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1410853
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:638-654




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Muhammad Aftab
Author-X-Name-First: Muhammad
Author-X-Name-Last: Aftab
Title: A new perspective on the third-country effect: The case of Malaysia–US industry-level trade
Abstract: 
 Cushman suggested that impact of exchange rate volatility declines after the inclusion of the third-country effect. Like Cushman, when we use a linear analysis, we confirm his results. However, when we engage in asymmetric effects of exchange rate volatility which requires including nonlinear adjustment of volatility measures, the findings show more support to both exchange rate volatility influence and the third-country effect. Therefore, we propose that in examining exchange rate volatility effect on trade, consideration must be given to not just asymmetric effects of exchange rate volatility but also asymmetric effects of the third-country effect. We demonstrate these findings using monthly data from 54 Malaysian industries that export to the US and 63 Malaysian industries that import from the US.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 607-637
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2017.1411967
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1411967
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:607-637




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Yépez
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Yépez
Title: Cyclical wage movements in emerging markets compared to developed economies: a general equilibrium comment
Abstract: 
 I examine distinct cyclical properties of labor markets in emerging economies compared to developed ones from a general equilibrium perspective. The evidence in emerging economies shows that (1) wages are more volatile than income, while (2) employment is less volatile and (3) less pro-cyclical than in developed economies. I use a standard open-economy model to study the implications of wealth effects on labor market dynamics in both emerging and developed economies simultaneously. In contrast to the (partial equilibrium) results of the small open economy (SOE) model, I show that in general equilibrium, strong wealth effects on labor supply in emerging economies are necessary to rationalize the evidence. The model is also consistent with empirical regularities of exchange rate fluctuations, namely (1) excess volatility of real exchange rates, and (2) the negative co-movement between the real exchange rate and relative consumption.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 655-666
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2017.1416661
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1416661
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:655-666




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Raza
Author-X-Name-First: Hamid
Author-X-Name-Last: Raza
Author-Name: Gylfi Zoega
Author-X-Name-First: Gylfi
Author-X-Name-Last: Zoega
Author-Name: Stephen Kinsella
Author-X-Name-First: Stephen
Author-X-Name-Last: Kinsella
Title: Asymmetries exist in the Feldstein–Horioka relationship
Abstract: 
 Most studies assume symmetry between saving and investment changes. They are wrong to do so. We model the response of investment to positive and negative changes in saving for 17 OECD countries from 1960 to 2015. We use both panel and time series methods. We find that negative changes in saving have a stronger effect on investment than positive changes in saving do. In the short run, causality only runs from negative changes in saving to investment. In the long run, both negative and positive changes in saving Granger cause investment. Models relying on saving-investment symmetry in the long run are called into question. Policies assuming symmetric effects throughout the business cycle are similarly flawed.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 667-684
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2017.1418412
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1418412
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:667-684




Template-Type: ReDIF-Article 1.0
Author-Name: Fayyaz Ahmad
Author-X-Name-First: Fayyaz
Author-X-Name-Last: Ahmad
Author-Name: Muhammad Umar Draz
Author-X-Name-First: Muhammad Umar
Author-X-Name-Last: Draz
Author-Name: Su-Chang Yang
Author-X-Name-First: Su-Chang
Author-X-Name-Last: Yang
Title: Causality nexus of exports, FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis
Abstract: 
 This paper analyzes the causal relationships between exports, FDI and economic growth among the ASEAN5 countries. We have used a three-stage procedure based on unit root, co-integration and causality tests applied to the panel data from 1981 to 2013. The results reveal that there is a bi-directional causal relationship between FDI and growth in the long run, while there is a unidirectional causal relationship from FDI to exports in the short run. Our results also confirm that the export-led growth (ELG) and FDI-led growth hypotheses hold true in the long and short run. To reinforce the FDI inflows, authorities should continue the progressive reduction of barriers, and increase the sophistication of quality exports to compete in the global market. This paper is the first of its kind to analyze the role of both FDI and exports in the ASEAN5 economies using panel analysis.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 685-700
Issue: 6
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638199.2018.1426035
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1426035
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:6:p:685-700




Template-Type: ReDIF-Article 1.0
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Jason Z. Ma
Author-X-Name-First: Jason Z.
Author-X-Name-Last: Ma
Author-Name: Lu Yang
Author-X-Name-First: Lu
Author-X-Name-Last: Yang
Author-Name: Lisi Shi
Author-X-Name-First: Lisi
Author-X-Name-Last: Shi
Title: Do anticorruption efforts affect banking system stability?
Abstract: 
 This paper examines whether the level of anticorruption efforts in a country affects the stability of its banking system. After analyzing banking system stability in a large international sample of 26,865 of bank-year observations across 40 countries during 1987&#x2013;2013, we argue that the following factors are involved: (1) anticorruption efforts, (2) inflation rate, (3) transparency, and (4) adoption of International Financial Reporting Standards. Our results support the idea that having a high anticorruption rating is related to high banking system stability. We also find that this relationship depends on a country&#x2019;s inflation rate and level of country-level investor protection, supporting the notion that anticorruption is relatively more important in poorer information environments. In addition, given that anticorruption has a stronger effect on financial stability when banks are within a corrupt environment, we posit that corruption may have insider marginal effects.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 277-298
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1522661
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1522661
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Template-Type: ReDIF-Article 1.0
Author-Name: Ekpeno L. Effiong
Author-X-Name-First: Ekpeno L.
Author-X-Name-Last: Effiong
Author-Name: Godwin E. Bassey
Author-X-Name-First: Godwin E.
Author-X-Name-Last: Bassey
Title: Stock prices and exchange rate dynamics in Nigeria: An asymmetric perspective
Abstract: 
 This paper investigates the asymmetric effect of exchange rate changes on stock prices in Nigeria. Using the nonlinear ARDL framework and monthly data from 2000:1 to 2016:12, the nominal exchange rate is separated into currency depreciation and appreciation through a partial sum decomposition process. Asymmetry is examined both in the long-run relationship and short-run error correction mechanism. The results show that the effects of exchange rate changes on stock prices is asymmetric both in the short- and long-run. That is, stock prices react in different magnitude to depreciation and appreciation. However, currency depreciation has a strong pass-through effect on stock prices than appreciation in the long-run. In the absence of asymmetry, exchange rate has only short-run effect on stock prices. This implies that the symmetry assumption underestimates the impact of exchange rate changes on stock prices in Nigeria.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 299-316
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1531436
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1531436
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:3:p:299-316




Template-Type: ReDIF-Article 1.0
Author-Name: Zhike Lv
Author-X-Name-First: Zhike
Author-X-Name-Last: Lv
Author-Name: Ting Xu
Author-X-Name-First: Ting
Author-X-Name-Last: Xu
Title: Trade openness, urbanization and CO emissions: Dynamic panel data analysis of middle-income countries
Abstract: 
 Using the Pooled Mean Group (PMG) approach of Pesaran, Shin, and Smith [1999. &#x201C;Pooled Mean Group Estimation of Dynamic Heterogeneous Panels.&#x201D; Journal of the American Statistical Association 94 (446): 621&#x2013;634], this article attempts to empirically examine the heterogeneous effects of trade openness and urbanization on CO2 emissions in 55 middle-income countries over the period from 1992 to 2012. We find that trade openness has a benign effect on the environment in the short run, but a harmful effect in the long run. Meanwhile, our results show that urbanization has a negative and significant impact on CO2 emissions both in the short and long run, implying that urbanization improves environmental quality. The results are robust even after controlling for a number of factors such as economic or non-economic factors.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 317-330
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1534878
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1534878
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:3:p:317-330




Template-Type: ReDIF-Article 1.0
Author-Name: Mini P. Thomas
Author-X-Name-First: Mini P.
Author-X-Name-Last: Thomas
Title: Impact of services trade on economic growth and current account balance: Evidence from India
Abstract: 
 This paper aims to study the impact of services trade on India&#x2019;s economic growth and current account balance during the post-reform period. Earlier studies on this subject have mostly looked at the goods sector. Indian studies which analysed services-led growth from a balance of payments perspective suffered from a bias of having focused only on call-centre exports. In such a context, this study brings in a novel approach by using the Balance of Payments Constrained Growth model and autoregressive distributed lag cointegration to estimate the balance of payments equilibrium growth rate for India&#x2019;s service sector. The key service sub-sectors are also identified using input&#x2013;output tables and the TIVA database. This study finds that India&#x2019;s service sector is growing at a rate almost equal to its balance of payments equilibrium growth rate under the assumption of constant relative prices in international trade, and at a rate lower than the equilibrium growth rate when this assumption is relaxed. Among the major services in India&#x2019;s export basket, construction, transport and business services are found to exhibit strong backward linkages. Foreign value-added content in India&#x2019;s services exports is found to be highest in the case of business services, transport services and telecommunications.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 331-347
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1538383
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1538383
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Template-Type: ReDIF-Article 1.0
Author-Name: Ritu Rana
Author-X-Name-First: Ritu
Author-X-Name-Last: Rana
Author-Name: Manoj Sharma
Author-X-Name-First: Manoj
Author-X-Name-Last: Sharma
Title: Dynamic causality testing for EKC hypothesis, pollution haven hypothesis and international trade in India
Abstract: 
 This study examines the causality relationships between foreign direct investment (FDI), economic growth (GDP) and CO2 emissions along with the level of trade (exports and imports) taking place in India. The study uses data obtained from World Development Indicators (WDI) of World Bank Group for the period 1982&#x2013;2013. The study employed the dynamic multivariate Toda-Yamamoto (TY) approach that uses the modified Wald (MWALD) test. Among the major findings of the study are: the existence of both Pollution Haven Hypothesis and Environmental Kuznets Curve (EKC) hypothesis in India. The other findings of the study are: FDI is causing exports; exports are causing imports; imports are causing CO2 emissions; and finally CO2 emissions and GDP are causing each other. This finding concludes mainly two things. First, India imports more of pollution-intensive manufactured goods. Second, FDI is causing GDP in India but through CO2 emissions.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 348-364
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1542451
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1542451
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:3:p:348-364




Template-Type: ReDIF-Article 1.0
Author-Name: Syeda Tamkeen Fatima
Author-X-Name-First: Syeda Tamkeen
Author-X-Name-Last: Fatima
Author-Name: Abdul Qayyum Khan
Author-X-Name-First: Abdul Qayyum
Author-X-Name-Last: Khan
Title: Globalization and female labor force participation: The role of trading partners
Abstract: 
 This paper uses industrial level data from 21 developing and emerging economies over the period of 1995&#x2013;2013, to analyze the impact of globalization, in particular, trade orientation of industries onto female employment share. The fractional probit estimation reveals that taking cumulative measures of export and import share often camouflages the impact of trade on female employment. The disintegration of export and import share according to their trading partners reveals that exports and imports from the developed world alone contribute to higher female employment. Moreover, it is the low-tech exports to developed countries and high-tech imports from developed countries which results in an increase in female employment. These findings call for the strengthening of trade ties with the developed world, especially when it comes to promoting low-tech exports and high-tech imports. Our results also reveal that the trading links with the developed world can further enhance female employment if developing country possesses a greater pool of educated female labor force.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 365-390
Issue: 3
Volume: 28
Year: 2019
Month: 4
X-DOI: 10.1080/09638199.2018.1545140
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1545140
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:3:p:365-390




Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi
Author-X-Name-First: Kangsik
Author-X-Name-Last: Choi
Author-Name: DongJoon Lee
Author-X-Name-First: DongJoon
Author-X-Name-Last: Lee
Author-Name: Seonyoung Lim
Author-X-Name-First: Seonyoung
Author-X-Name-Last: Lim
Title: Strategic trade policies with first-mover and second-mover advantages in a vertical structure
Abstract: 
 With strategic trade policies, we consider first- and second-mover advantages in a vertical structure given the two-part tariff contract (composed of the input price and the fixed fee) of an upstream firm, where a home and a foreign final-good firms export to a third-country market. We find that the upstream firms’ and governments’ preference orderings over sequential versus simultaneous play and over free trade versus a regime of subsidies contrast with early results in the strategic trade policy. Thus, the endogenous market structure is that (i) the potential leader chooses the Leader role with quantity strategies, and the equilibrium trade regime is unilateral subsidy regardless of the nature of goods; (ii) with price strategies, the potential leader chooses the simultaneous timing, and the equilibrium trade regime is bilateral taxes (free trade) when goods are substitutes (complements).
Journal: The Journal of International Trade &amp; Economic Development
Pages: 612-632
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2016.1262892
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1262892
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:612-632




Template-Type: ReDIF-Article 1.0
Author-Name: Jože Damijan
Author-X-Name-First: Jože
Author-X-Name-Last: Damijan
Author-Name: Črt Kostevc
Author-X-Name-First: Črt
Author-X-Name-Last: Kostevc
Author-Name: Matija Rojec
Author-X-Name-First: Matija
Author-X-Name-Last: Rojec
Title: Exporting status and success in innovation: evidence from CIS micro data for EU countries
Abstract: 
 Using a large sample of micro data from four waves of Community Innovation Survey for EU member states, we investigate the relationship between firms’ export status and different sorts of innovation activities. We find systematically positive relationship between the two, whereby the strongest correlation is found in case of product innovation and the weakest in case of organizational innovations. While aggregate data show that innovation success is increasing in firm size, we find that exporting has the strongest effect on innovation in the medium-sized firms. We also explore cross-country differences in the impact of export status on innovation. Countries with a higher share of exports in GDP and greater share of spending on research and development generally display a stronger correlation between exporting status and innovation.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 585-611
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2016.1271819
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1271819
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:585-611




Template-Type: ReDIF-Article 1.0
Author-Name: Ayşe Özden Birkan
Author-X-Name-First: Ayşe Özden
Author-X-Name-Last: Birkan
Title: Technological structure of trade and BOP-constrained growth in Turkey
Abstract: 
 This study investigates the empirical validity of the Multisectoral Thirwall's Law for Turkey over the last half century. Multisectoral Thirwall's Law facilitates the discussion of the effects of the sectoral composition of trade on the extent of the balance of payments (BOP) constraint and consequently on the long run growth prospects of an economy. In particular, structural change favoring sectors with Schumpeterian and Keynesian efficiencies is expected to improve these prospects. Lall's commodity classification on a technology basis is adequate for delineating such sectors. In this study, distinct export and import functions are estimated for primary production, low technology manufacturing, medium technology manufacturing and high technology manufacturing industries using the autoregressive distributed lag (ARDL) bounds test and Johansen approaches to cointegration. Resulting income elasticities are used to discuss the structural change in the technological content of Turkish trade and the validity of the Multisectoral Thirwall's Law. Results suggest that Turkey has come a long way in terms of improvements in Schumpeterian and Keynesian efficiency over the last 50 years and that the Multisectoral Thirwall's Law is empirically valid in the case of Turkey.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 509-533
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2016.1274333
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1274333
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Template-Type: ReDIF-Article 1.0
Author-Name: Nabil Alimi
Author-X-Name-First: Nabil
Author-X-Name-Last: Alimi
Author-Name: Nabil Aflouk
Author-X-Name-First: Nabil
Author-X-Name-Last: Aflouk
Title: Terms-of-trade shocks and macroeconomic volatility in developing countries: panel smooth transition regression models
Abstract: 
 This paper investigates the relationship between terms-of-trade shocks and macroeconomic volatility for a panel of 58 developing countries from 1980 to 2015. Using a Panel Smooth Transition Regression model, we prove first, that terms-of-trade volatility have a statistically significant and positive impact on the volatility of output growth, although the magnitude of this effect is not the same by the report to the threshold that has been identified. Second, the terms-of-trade volatility affect macroeconomic fluctuation differently depending on whether the country is a net exporter of the commodity, fuel or manufactured goods.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 534-551
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2016.1278029
File-URL: http://hdl.handle.net/10.1080/09638199.2016.1278029
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:534-551




Template-Type: ReDIF-Article 1.0
Author-Name: John O'Trakoun
Author-X-Name-First: John
Author-X-Name-Last: O'Trakoun
Title: New perspectives on corruption contagion
Abstract: 
 Is corruption within one country affected by corruption within another? Few studies have examined this question in detail due to the difficulty of measuring corruption and paucity of consistent data over an adequate time span. I use a cross-country panel data-set spanning 1995–2014 to examine how domestic corruption reacts to the culture of corruption amongst a country's regional neighbors. I find evidence that a reduction in regional corruption can actually lead to a worsening of corruption within a country, and vice versa. If in an open economy, regional graft lowers the level of income that a rent-seeking government can tax, a reduction in regional corruption can increase the marginal benefit of imposing a more extractive domestic policy by increasing the pool of exploitable funds. My results suggest that corruption will be an enduring institution in a more interconnected world.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 552-565
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2017.1281340
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1281340
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:552-565




Template-Type: ReDIF-Article 1.0
Author-Name: Ayesha Ashraf
Author-X-Name-First: Ayesha
Author-X-Name-Last: Ashraf
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Peter Nunnenkamp
Author-X-Name-First: Peter
Author-X-Name-Last: Nunnenkamp
Title: Greenfield FDI, cross-border M&amp;As, and government size
Abstract: 
 This study examines the effects of greenfield foreign direct investment (FDI) and cross-border mergers and acquisitions (M&amp;As) on government size in host countries of FDI. Using panel data for up to 130 countries for the period from 2003 to 2011, the study specifically tests the compensation hypothesis, suggesting that by increasing economic insecurity, economic openness leads to larger government size. It is found that greenfield FDI increases labour market volatility and thereby economic insecurity while M&amp;As are not significantly associated with labour market volatility. The main results of this study are that greenfield FDI has a robust positive effect on government size, while M&amp;As have no statistically significant effect on government size in the total sample of developed and developing countries, as well as in the sub-samples of developed and developing countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 566-584
Issue: 5
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638199.2017.1281341
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1281341
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:566-584




Template-Type: ReDIF-Article 1.0
Author-Name: Arshad Hayat
Author-X-Name-First: Arshad
Author-X-Name-Last: Hayat
Title: Foreign direct investments, institutional quality, and economic growth
Abstract: 
 Institutional quality is considered to be an important factor in boosting economic growth of a country. This paper explores the role of institutional quality in economic growth and more specifically the role it plays via the channel of foreign direct investments. This paper uses a larger dataset of 104 countries and applies GMM estimation method to a dynamic panel data to evaluate the direct impact of institutional quality on economic growth and the indirect impact of institutional quality on economic growth through enhancing the FDI-induced economic growth. This paper provides evidence that both FDI inflows and institutional quality cause stronger economic growth. The FDI-led growth, however, was only experienced in the low and middle-income countries. In these countries, better institutional quality was also found to be enhancing the FDI-led economic growth. An important finding of this paper is that in the high-income countries, FDI was found to slow down the economic growth. The results are robust and consistent for individual institutional quality indicators and controlling for endogeneity.
Journal: The Journal of International Trade & Economic Development
Pages: 561-579
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2018.1564064
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1564064
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:561-579




Template-Type: ReDIF-Article 1.0
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Shahad Salem S. A. Al-Marri
Author-X-Name-First: Shahad
Author-X-Name-Last: Salem S. A. Al-Marri
Author-Name: Zainab Ali Al-khayat
Author-X-Name-First: Zainab
Author-X-Name-Last: Ali Al-khayat
Title: Modelling the asymmetric responses of price level to oil price changes in Qatar
Abstract: 
 This paper inspects the asymmetric effect of oil price on prices level in Qatar. To achieve that, we proceed by employing a nonlinear autoregressive distributed lag (ARDL) approach on data during the period 1990Q1–2014Q4. The estimation results show evidences of an incomplete and asymmetric influence of oil price on price level in the long term. Moreover, we find that price responses to negative changes in oil price is greater than its response to positive changes. Given Qatar’s economic features, a decrease in oil price could cause lower imports and production prices and consequently a substantial influence on domestic prices level. However, the lower effect of positive oil price changes on consumer prices can be explained by the subsidies system, the consumption patterns, and the exchange rate regime.
Journal: The Journal of International Trade & Economic Development
Pages: 548-560
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2018.1564065
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1564065
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:548-560




Template-Type: ReDIF-Article 1.0
Author-Name: Satoshi Honma
Author-X-Name-First: Satoshi
Author-X-Name-Last: Honma
Author-Name: Yushi Yoshida
Author-X-Name-First: Yushi
Author-X-Name-Last: Yoshida
Title: Convergence in pollution terms of trade
Abstract: 
 To construct pollution terms of trade (PTT) on the basis of CO2 emissions, we implement the world input–output tables for 40 countries by 35 industries to account for intermediate trade. We examine whether the PTTs have converged among the 40 countries between 1995 and 2009. The empirical evidence supports PTT convergence; PTT growth is negatively related to its initial level and this empirical result is robust to various control variables.
Journal: The Journal of International Trade & Economic Development
Pages: 603-627
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2019.1568523
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1568523
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:603-627




Template-Type: ReDIF-Article 1.0
Author-Name: Darong Dai
Author-X-Name-First: Darong
Author-X-Name-Last: Dai
Title: Patent protection in the South: Is there a case for nondiscrimination?
Abstract: 
 We evaluate in terms of equilibrium world welfare the principle of national treatment (NT) in Southern patent protection. We use a variety-expansion model with R&D in North and South, and with Southern imitation targeted at both foreign and domestic innovations. In the short-run of Northern economy, NT can never dominate discrimination in the sense of generating a higher world welfare, and it tends to be dominated by discrimination. In the long-run of Northern economy, we obtain three results. First, under free trade, NT is favorable to the North while discrimination is favorable to the South. Second, if the entry cost of Northern R&D market is high and the strength of protection for Northern innovation under discrimination is not that weak, then NT is strictly dominated by discrimination, no matter whether trade barriers exist or not. Third, if trade barriers are sufficiently large, then NT dominates discrimination only when the strength of protection for Northern innovation under discrimination is weak; otherwise, NT is strictly dominated by discrimination.
Journal: The Journal of International Trade & Economic Development
Pages: 580-602
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2019.1568524
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1568524
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:580-602




Template-Type: ReDIF-Article 1.0
Author-Name: Houssem Eddine Chebbi
Author-X-Name-First: Houssem Eddine
Author-X-Name-Last: Chebbi
Author-Name: Marcelo Olarreaga
Author-X-Name-First: Marcelo
Author-X-Name-Last: Olarreaga
Title: Investigating exchange rate shocks on agricultural trade balance: The case of Tunisia
Abstract: 
 The paper studies the impact of changes in Tunisia's exchange rate on the net external position of the agricultural sector. It shows that substitutability on production and consumption among domestically produced goods leads to an ambiguous impact for reasons that go beyond the Marshall-Lerner condition. Using cointegration techniques to disentangle the long and short-run impact of changes in the exchange rate on the net agricultural trade balance, we find that the depreciation of the domestic currency leads to a deterioration of the net external position of Tunisia's agricultural sector in the long-run.
Journal: The Journal of International Trade & Economic Development
Pages: 628-647
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2019.1572774
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1572774
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:628-647




Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Author-Name: Monday Jerry Ikponmwosa
Author-X-Name-First: Monday Jerry
Author-X-Name-Last: Ikponmwosa
Author-Name: Yoon Jung Choi
Author-X-Name-First: Yoon Jung
Author-X-Name-Last: Choi
Title: Crude oil prices and the balance of trade: Asymmetric evidence from selected OPEC member countries
Abstract: 
 The contribution of this article is to assess whether the effects of crude oil price fluctuations on the trade balance are symmetric or asymmetric in the context of an individual oil-exporting country, specifically four OPEC member countries – Iran, Nigeria, Saudi Arabia, and Venezuela. To examine this subject thoroughly, we use three different measures of trade balances such as oil trade balance, non-oil trade balance, and total trade balance, and examine whether oil prices are asymmetrically passed on to the trade balances for those OPEC countries in the long- and short-run. After implementation of the nonlinear autoregressive distributed lag (ARDL) model, we find that changes in oil prices indeed have asymmetric effects on the oil trade balance for all four OPEC countries in the long-run, though not in the short-run. In the case of the non-oil and total trade balance, however, the asymmetry of oil price changes is not detected in both the long- and short-run.
Journal: The Journal of International Trade & Economic Development
Pages: 533-547
Issue: 5
Volume: 28
Year: 2019
Month: 7
X-DOI: 10.1080/09638199.2019.1574310
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1574310
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:5:p:533-547




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Frede
Author-X-Name-First: Julian
Author-X-Name-Last: Frede
Author-Name: Hakan Yetkiner
Author-X-Name-First: Hakan
Author-X-Name-Last: Yetkiner
Title: The regional trade dynamics of Turkey: a panel data gravity model
Abstract: 
 This paper analyzes the Turkish export and import flows with regard to regional clusters (RCs) and bilateral trade costs (BTCs) by using a panel data gravity model. We study the role of RCs and BTCs in two complementary parts: in the first part, we use an unbalanced panel data for 180 countries over the period 1960–2012, compiled from the DOTS database. We extend these estimations by running the data at four different time intervals, each representing different economic or political regimes in Turkey. In the second part, we repeat the same exercise at sectoral level for 176 countries over the period 1994–2010, using the BACI database. Aggregate estimates show that the gravity model is very effective in explaining the export and import flows of Turkey and that all close-by regions, including EU27, have a significant impact on trade flows of Turkey. We also find that the EU Customs Union has a negative effect on Turkish exports and a positive effect on imports. Estimates at selected time intervals reinforce aggregate estimates and sectoral level analyses indicate that while some regions contribute positively in all or the majority of sectors, others contribute negatively or produce mixed results.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 633-648
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1279205
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1279205
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:633-648




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Anh-Dao Tran
Author-X-Name-First: Thi Anh-Dao
Author-X-Name-Last: Tran
Author-Name: Minh Hong Phi
Author-X-Name-First: Minh Hong
Author-X-Name-Last: Phi
Author-Name: Diadié Diaw
Author-X-Name-First: Diadié
Author-X-Name-Last: Diaw
Title: Export diversification and real exchange rate in emerging Latin America and Asia: A South–North vs. South-South decomposition
Abstract: 
 The present paper examines the directional causality between export diversification and real exchange rate in the middle-income countries of Asia and Latin America over the period from 1995 to 2013. Additionally, we investigate asymmetries in the causality issue by examining the direction across trading partners.Our empirical results show that there is a two-way causality between the two variables when we look at the sample as a whole. A causal link running from the real exchange rate to export diversification is consistent with the standard literature but it is not systematic at all. The reverse causation is very appealing and challenges the standard argument on exchange rate determination. When the causality issue is investigated by treating export markets differently, our findings at the aggregate level are confirmed in exports destined for the advanced countries. The analysis for ‘South-South’ trade only shows a unidirectional link from the real exchange rate to changes in export diversification. The same tests performed at the individual countries level reveal a heterogeneous causality across trading partners.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 649-676
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1286680
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1286680
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:649-676




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulmajid Bobokhonov
Author-X-Name-First: Abdulmajid
Author-X-Name-Last: Bobokhonov
Author-Name: Jan Pokrivcak
Author-X-Name-First: Jan
Author-X-Name-Last: Pokrivcak
Author-Name: Miroslava Rajcaniova
Author-X-Name-First: Miroslava
Author-X-Name-Last: Rajcaniova
Title: The impact of agricultural and trade policies on price transmission: The case of Tajikistan and Uzbekistan
Abstract: 
 This paper examines the extent and speed of price transmission from international to local markets in two transition economies, Tajikistan and Uzbekistan. The two countries have similar economic backgrounds, but a notable difference is that Tajikistan has adopted a more liberal agricultural trade regime than Uzbekistan. We use a vector error correction model to analyse how global agricultural prices are transmitted to domestic food prices in the two countries. We find strong cointegration between world market and domestic prices in Tajikistan for food crops but not meat, and no cointegration in Uzbekistan.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 677-692
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1287212
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1287212
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:677-692




Template-Type: ReDIF-Article 1.0
Author-Name: Amelia U. Santos-Paulino
Author-X-Name-First: Amelia U.
Author-X-Name-Last: Santos-Paulino
Title: Estimating the impact of trade specialization and trade policy on poverty in developing countries
Abstract: 
 This paper investigates the impact of trade specialization on poverty. The empirical findings show that in developing countries manufacturing exports contribute to poverty reduction. But agricultural exports have a more significant effect on poverty in low-income countries. The analysis also confirms that trade specialization reduces poverty but under specific trade specialization patterns and policy conditions.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 693-711
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1291710
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1291710
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:693-711




Template-Type: ReDIF-Article 1.0
Author-Name: Sofía Boza
Author-X-Name-First: Sofía
Author-X-Name-Last: Boza
Author-Name: Jazmín Muñoz
Author-X-Name-First: Jazmín
Author-X-Name-Last: Muñoz
Title: Factors underlying sanitary and phytosanitary regulation for food and agricultural imports notified by WTO members
Abstract: 
 The impact of sanitary and phytosanitary (SPS) measures has been extensively studied in the trade literature. However, there is very scant research on the factors underlying the World Trade Organization (WTO) members’ regulatory process. The aim of this paper is to fill that gap, examining the main determinants for the development of SPS regulation considering the notifications presented by WTO members. A negative binomial regression was estimated, where the dependent variable was the number of SPS measures notified during the period 1995–2012 by WTO members, while the explanatory variables were related to each country: (1) agricultural production value; (2) agricultural imports weight; (3) health concerns; (4) agricultural import tariffs; and (5) scientific and legal capacities. The results provide evidence that legal and scientific capacities are major factors in the number of notifications presented by WTO members. On the other hand, those countries with a higher relative weight of the agricultural sector in the economy or of agricultural products in their imports have notified fewer SPS measures. This leads to the conclusion that it is necessary to reinforce actions that strengthen institutional and technical capacities for further convergence.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 712-723
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1293712
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1293712
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:712-723




Template-Type: ReDIF-Article 1.0
Author-Name: Syeda Tamkeen Fatima
Author-X-Name-First: Syeda Tamkeen
Author-X-Name-Last: Fatima
Title: Globalization and technology adoption: evidence from emerging economies
Abstract: 
 This paper examines the role of globalization in the creation and dissemination of technology across firms operating in 30 emerging and developing economies. Firm-level data from four rounds of Business Environment and Enterprise Performance Surveys from 2002 to 2014 is pooled to assess whether international exposure translates into greater propensity for firms to innovate. The viability of different channels of international technology transmission, i.e. exporting and importing activities, foreign licensing agreements and foreign direct investment are studied to analyze whether they indeed succeed in delivering the push to the firms operating in developing countries to innovate and as a result push them closer to the world's technology frontier. The empirical results endorse the view that exporting and importing activities and foreign licensing agreements are important channels for technology transfer. This study also acknowledges country, sector and firm specific characteristics and their differential capacity to benefit from foreign exposure.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 724-758
Issue: 6
Volume: 26
Year: 2017
Month: 8
X-DOI: 10.1080/09638199.2017.1303080
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1303080
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:6:p:724-758




Template-Type: ReDIF-Article 1.0
Author-Name: Hongsheng Zhang
Author-X-Name-First: Hongsheng
Author-X-Name-Last: Zhang
Author-Name: Bo Meng
Author-X-Name-First: Bo
Author-X-Name-Last: Meng
Author-Name: Shuzhong Ma
Author-X-Name-First: Shuzhong
Author-X-Name-Last: Ma
Title: Determinants of China's bilateral trade balance in global value chains
Abstract: 
 This paper identifies the determinants of China's bilateral trade balance using a new measure based on international input–output data, the so-called ‘trade in value-added’ (TiVA), which can prevent double counting in the estimation of bilateral trade balance. Our results show that using a measure based on gross exports, rather than TiVA, causes relatively large overestimation of the impact of the RMB exchange rate on China's bilateral trade balance. This overestimation is mainly because that the increasing production of exports may require increasing intermediate imports as a consequence of international fragmentation of production in global value chains. In addition, our results also show that the impact of FDI inflows on China's bilateral trade balances depends on the position and role of China and its trading partners in GVCs.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 463-485
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1391322
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1391322
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:463-485




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Huseyin Bilgin
Author-X-Name-First: Mehmet Huseyin
Author-X-Name-Last: Bilgin
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Title: The determinants of Turkey's exports to Islamic countries: The impact of political risks
Abstract: 
 Using the traditional gravity model, this paper aims to analyze the determinants of Turkish exports to 43 Islamic Development Bank member countries for the period from 1996 to 2015. The paper specifically investigates the effects of 12 political risk measures (bureaucracy quality, corruption, democratic accountability, government stability, internal and external conflict, investment profile, law and order, military in politics, religious and ethnic tensions, and socioeconomic conditions) in the importing countries on the total volume of exports of Turkey. After implementing various robustness checks, the paper finds that the government instability in the importing countries is negatively associated with the Turkish exports.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 486-503
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1396489
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1396489
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:486-503




Template-Type: ReDIF-Article 1.0
Author-Name: Anayochukwu Basil Chukwu
Author-X-Name-First: Anayochukwu Basil
Author-X-Name-Last: Chukwu
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Title: Real exchange rate (RER) as a policy tool for industrial diversification and growth in Africa
Abstract: 
 Appropriate exchange rate (ER) policies in some Asian and Latin American countries have led to improvement in industrial diversification and growth. The growth ‘miracle’ of the Asian countries centres on the effective use of ER and trade policies, specifically the adoption of depreciation of real exchange rate (RER). However, the case of Africa is different, as the continent is yet to adopt an appropriate ER policy that enhances industrial diversification and growth. Examining the effectiveness of the RER as a policy tool for industrial diversification and growth in 36 African countries, this study applied a dynamic generalised method of moments (GMM) estimation technique to determine how changes in RER affects the growth composition of the three main productive sectors – primary, secondary, and tertiary and their response rates. Our findings suggest that the primary sector leads to appreciation of the RER, while the secondary and tertiary lead to depreciation of the RER. This result has serious policy implication for the Africa continent that has relied so much on the production of primary commodities. Rather than pursue the policy of ER depreciation which affects the primary and secondary sectors, policy shift in favour of the tertiary sector should be highly encouraged.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 504-520
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1397729
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1397729
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:504-520




Template-Type: ReDIF-Article 1.0
Author-Name: Andisheh Saliminezhad
Author-X-Name-First: Andisheh
Author-X-Name-Last: Saliminezhad
Author-Name: Fatma G. Lisaniler
Author-X-Name-First: Fatma G.
Author-X-Name-Last: Lisaniler
Title: Validity of unbalanced growth theory and sectoral investment priorities in Indonesia: Application of feature ranking methods
Abstract: 
 This study develops a new approach for testing the validity of unbalanced growth theory as well as determining the sectoral priorities for investment in Indonesia over the period 1995–2015. To this end, the high linkage sector(s) is identified through the input–output framework. Afterward, two different approaches, multiple linear regression and multi-layered perceptron (MLP) artificial neural network, are applied to capture the linear and nonlinear relationships between the extracted engine sectors and gross domestic product growth. Given that the detection of sector ranking is crucial for preparing a proper development plan, in the same vein we apply two types of feature-ranking methods (namely, stepwise regression and ant colony optimization (ACO-MLP based). The findings suggest a consistent relationship between the theory and economic growth in both linear and nonlinear models. However, the nonlinear model outperforms its competitor. In general, we find that the manufacturing sector is the most strategic sector in Indonesia, as it has been ranked first in both linear and nonlinear forms. Hence, its development path could be reinforced by more investment in this leading sector and then followed by investment in construction, hotels and restaurants, and agriculture.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 521-540
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1398270
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1398270
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:521-540




Template-Type: ReDIF-Article 1.0
Author-Name: H. Binder
Author-X-Name-First: H.
Author-X-Name-Last: Binder
Author-Name: B. Dluhosch
Author-X-Name-First: B.
Author-X-Name-Last: Dluhosch
Author-Name: D. Horgos
Author-X-Name-First: D.
Author-X-Name-Last: Horgos
Author-Name: S. Horgos
Author-X-Name-First: S.
Author-X-Name-Last: Horgos
Title: Bifurcations in the evolutionary approach to multilateralizing trade policy
Abstract: 
 The Doha Round on multilateral trade liberalization, originally intended to better integrate developing countries into the world economy, has been largely considered a failure. With the Doha outcome falling short of expectations, North–South trade remains underdeveloped. Embedding the political economy and the resulting importance of reciprocating trade liberalization in an evolutionary model along Axelrod–Rapoport lines indicates that factor endowments are crucial in triggering trade policies. Their pivotal nature gives rise to bifurcations, thereby tilting policies towards or away from liberalization trajectories. The theoretical insights are reflected in an empirical analysis, thus strengthening the case for a variable-geometry approach.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 541-564
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1399158
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1399158
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:541-564




Template-Type: ReDIF-Article 1.0
Author-Name: Aadil Nakhoda
Author-X-Name-First: Aadil
Author-X-Name-Last: Nakhoda
Title: The impact of long-term secured loans on exports at the firm-level: The case of a developing country
Abstract: 
 We analyze the role of the accumulation of long-term secured loans on the participation of firms in exporting activities. Internal sources of finance, such as cash balance and its equivalent as well as operating cash flow, may alleviate concerns on liquidity shocks and finance shorter-term variable costs but long-term secured loans are likely to be required to finance fixed costs related to investments in plant, machinery and other fixed assets that complement exporting activities. Exporting activities may involve hysteresis such that the likelihood of a firm to participate in exporting activities is influenced by the accumulation of long-term secured loans in the period prior to the export transactions. Even though the availability of internal sources of finance and the capital structure of a firm has greater economic significance, we observe that lagged long-term secured loans influences participation in exporting activities. Furthermore, we analyze the impact of one-year lagged long-term secured loans on the participation of firms in exporting activities based on the financial characteristics at the industry-level. This relationship holds for firms within industries with higher levels of long-term secured loans, higher levels of finance leverage, higher levels of asset tangibility and lower levels of total assets.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 565-584
Issue: 5
Volume: 27
Year: 2018
Month: 7
X-DOI: 10.1080/09638199.2017.1402073
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1402073
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:5:p:565-584




Template-Type: ReDIF-Article 1.0
Author-Name: Misheck Mutize
Author-X-Name-First: Misheck
Author-X-Name-Last: Mutize
Author-Name: Sean Gossel
Author-X-Name-First: Sean
Author-X-Name-Last: Gossel
Title: The effects of sovereign credit rating spillovers on neighbouring countries’ financial markets
Abstract: 
 This study investigates the spillover effects of long-term foreign currency sovereign credit rating announcements on foreign currency-denominated bonds and stock markets in 19 African countries during the period of 1994–2014. Using a combination of Granger causality tests and impulse response function, the results show that there is marginal regional sovereign rating spillover impacts that are quickly absorbed into capital markets trading long-term securities. The analysis further shows marginal spillover effects that persist over longer time periods in sovereign ratings of other countries in the same region from a sovereign rating change in one country. These results imply that the regional bilateral linkages between countries serve as channels of capital and sovereign credit rating information flow. Thus, it is imperative for regional countries to pursue prudent developmental macroeconomic policies to avoid negative ratings that will have regional spillover effects.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 857-900
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1458891
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1458891
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:8:p:857-900




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Yin Chen
Author-X-Name-First: Chien-Yin
Author-X-Name-Last: Chen
Author-Name: Shiue-Hung Lin
Author-X-Name-First: Shiue-Hung
Author-X-Name-Last: Lin
Author-Name: Li-Chen Chou
Author-X-Name-First: Li-Chen
Author-X-Name-Last: Chou
Author-Name: Kun-Dang Chen
Author-X-Name-First: Kun-Dang
Author-X-Name-Last: Chen
Title: A comparative study of production efficiency in coastal region and non-coastal region in Mainland China: An application of metafrontier model
Abstract: 
 This paper examines production efficiency of coastal region and non-coastal region in Mainland China between 2000 and 2010 using one-step stochastic frontier analysis and two-step metafrontier model. Unlike previous studies, this study not only discusses production efficiencies but also considers differences in production patterns. The empirical results indicate that coastal region has better production performance in metafrontier technology efficiency (MTE) and technology gap ratio (TGR). In addition, this study finds that the gap of MTE and TGR between coastal region and non-coastal region is increasing for the past years.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 901-916
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1472292
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1472292
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:8:p:901-916




Template-Type: ReDIF-Article 1.0
Author-Name: Awudu Sare Yakubu
Author-X-Name-First: Awudu Sare
Author-X-Name-Last: Yakubu
Author-Name: Anthony Q. Q. Aboagye
Author-X-Name-First: Anthony Q. Q.
Author-X-Name-Last: Aboagye
Author-Name: Lord Mensah
Author-X-Name-First: Lord
Author-X-Name-Last: Mensah
Author-Name: Godfred A. Bokpin
Author-X-Name-First: Godfred A.
Author-X-Name-Last: Bokpin
Title: Effect of financial development on international trade in Africa: Does measure of finance matter?
Abstract: 
 Although improving international trade on the back of financial sector development is one of the preoccupations of countries in Africa, empirical literature on financial development-trade nexus has not been rigorous in examining how finance shapes trade. In this study, we examine the effect of financial development on international trade in Africa relying on data for 46 countries over the period 1980–2015. Results from our system generalized method of moments reveal differential effects of finance on trade. In particular, we notice that, private credit does not promote trade while domestic credit positively affects trade. These effects are robust to measures of trade. Thus, improving the level of private (domestic) credit dampens (amplifies) exports and trade openness. However, we also find a U-shaped relationship between private credit and trade measures suggesting that financial sector development may be detrimental (helpful) to trade for economies with low (high) level of private credit.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 917-936
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1474246
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1474246
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:8:p:917-936




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chun-Wei Lin
Author-X-Name-First: Chun-Wei
Author-X-Name-Last: Lin
Title: Economic growth, financial market, and twin crises
Abstract: 
 In this study, we look not only to provide empirical evidence to investigate the direct impact of financial crises on economic growth, but also to examine the roles of insurance development, financial liberalization, financial institution, and crisis intervention policies on the relationship between the two. We employ a panel data framework from 50 countries by applying the dynamic panel generalized method of moments model. Our main empirical results show that financial crises do have a significantly negative impact on economic growth. In addition, governments or authorities are encouraged to further enhance their insurance sector in order to help spur economic growth when financial crises arise. The government intervention policy choice is also an important factor influencing economic growth during crises.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 937-967
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1477824
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1477824
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Template-Type: ReDIF-Article 1.0
Author-Name: Ugur Korkut Pata
Author-X-Name-First: Ugur Korkut
Author-X-Name-Last: Pata
Title: The Feldstein Horioka puzzle in E7 countries: Evidence from panel cointegration and asymmetric causality analysis
Abstract: 
 In this study, the Feldstein–Horioka (FH) puzzle were investigated by the panel cointegration and causality methods over the available period of 1989–2015 for the E7 countries. Westerlund panel cointegration test with multiple structural breaks, and Westerlund and Edgerton regime panel cointegration test results indicate that there is a cointegration relationship between the two variables in the long term. The long-term FH panel coefficients obtained from common correlated effects mean group (CCMEG) and augmented mean group (AMG) estimators are 0.792 and 0.758, respectively. The findings of the Kónya bootstrap panel Granger causality test show that there is no causality relationship between the two variables in the short term. However, in the results of the asymmetric causality test, unidirectional and statistically significant causality is going from the negative shocks of domestic saving to the positive shocks of investment for China, Indonesia, Mexico and Turkey. The overall results show that the FH puzzle is valid for the E7 countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 968-984
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1480053
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1480053
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Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Shaista Alam
Author-X-Name-First: Shaista
Author-X-Name-Last: Alam
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: Globalisation, economic growth and energy consumption in the BRICS region: The importance of asymmetries
Abstract: 
 This paper examines the asymmetric impact of globalisation and economic growth on energy consumption in BRICS countries, applying the NARDL bounds approach to explore the presence of asymmetric cointegration across variables. The empirical results reveal that energy consumption is positively and negatively affected by the positive and negative globalisation shocks, respectively. A positive shock in economic growth promotes energy consumption, while a negative shock reduces energy consumption.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 985-1009
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1481991
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1481991
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1010-1012
Issue: 8
Volume: 27
Year: 2018
Month: 11
X-DOI: 10.1080/09638199.2018.1525810
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1525810
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Template-Type: ReDIF-Article 1.0
Author-Name: Kexin Chen
Author-X-Name-First: Kexin
Author-X-Name-Last: Chen
Author-Name: He Nie
Author-X-Name-First: He
Author-X-Name-Last: Nie
Author-Name: Zhenyu Ge
Author-X-Name-First: Zhenyu
Author-X-Name-Last: Ge
Title: Policy uncertainty and FDI: Evidence from national elections
Abstract: 
 This paper examines the impact of policy uncertainty on FDI among 126 countries from 1996 to 2015. Using the timing of national elections as a proxy for policy uncertainty, we find that FDI drops significantly in election years, when policy uncertainty increases. The negative effect of policy uncertainty on FDI also depends on the degree of democratization and the political system. In democracies and countries with the Assembly elected president, the decline of FDI in election years is far more pronounced. Our results highlight the role of policy environment and institution in economic development.
Journal: The Journal of International Trade & Economic Development
Pages: 419-428
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2018.1545860
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1545860
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Ojede
Author-X-Name-First: Andrew
Author-X-Name-Last: Ojede
Author-Name: Eddery Lam
Author-X-Name-First: Eddery
Author-X-Name-Last: Lam
Author-Name: Nicholas Okot
Author-X-Name-First: Nicholas
Author-X-Name-Last: Okot
Title: Identifying macro-determinants of remittance flows to a developing country: The case of Uganda
Abstract: 
 This paper employs minimum Lagrange Multiplier (LM) unit root tests for endogenous structural breaks combined with ARCH and GARCH models to investigate how key macrovariables impact diaspora remittances. Since remittances can reverse-cause exchange rate movements and domestic income, we use changes in the world price of oil denominated in U.S. dollars to proxy movements in the Uganda shilling nominal effective exchange rate. To control for endogenous bias between remittances and income, we use rainfall shocks as proxies for income shocks in a non-oil-producing developing economy dominated by agricultural sector and its related activities. In addition, large movements in oil price and rainfall shocks typically cause large supply shocks that can significantly impact size of remittance inflows. We control for interest rate differential, political business cycles and seasonality. Results indicate that accounting for structural change in intercepts (levels) and slopes (trends) of key macroeconomic determinants of remittances around their major structural break points significantly increases their explanatory power. In particular, positive (negative) innovations in income and depreciation (appreciation) in the currency of a recipient developing country are negatively (positively) correlated with remittance inflows. These results are robust across different model specifications.
Journal: The Journal of International Trade & Economic Development
Pages: 429-451
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2018.1546336
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1546336
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Template-Type: ReDIF-Article 1.0
Author-Name: Freddy Cepeda-López
Author-X-Name-First: Freddy
Author-X-Name-Last: Cepeda-López
Author-Name: Fredy Gamboa-Estrada
Author-X-Name-First: Fredy
Author-X-Name-Last: Gamboa-Estrada
Author-Name: Carlos León
Author-X-Name-First: Carlos
Author-X-Name-Last: León
Author-Name: Hernán Rincón-Castro
Author-X-Name-First: Hernán
Author-X-Name-Last: Rincón-Castro
Title: The evolution of world trade from 1995 to 2014: A network approach
Abstract: 
 This paper employs network analysis to study world trade from 1995 to 2014. We focus on the main connective features of the world trade network (WTN) and their dynamics. Results suggest that countries’ efforts to attain the benefits of trade have resulted in an intertwined network that is increasingly dense, reciprocal, and clustered. However, these features do not correspond to a linear aggregation of the characteristics of its constituents (trade sectors). Trade linkages are distributed homogeneously among countries, but their intensity (i.e. their value) is highly concentrated in a small set of countries. The main connective features of the WTN were not affected by the 2007–2008 international financial crisis. However, we find that the crisis marks a turning point in the evolution of the WTN from a two-group (led by the US and Germany) to a three-group (led by the US, Germany, and China) hierarchical structure.
Journal: The Journal of International Trade & Economic Development
Pages: 452-485
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2018.1549588
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1549588
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Author-Name: John Serieux
Author-X-Name-First: John
Author-X-Name-Last: Serieux
Title: Globalization, regionalization and convergence in East Asia
Abstract: 
 This research paper reports the result of an investigation into the pattern of income convergence in East Asia since 1970 and the proximate role of increased regionalization and inter-regional globalization in generating regional convergence or divergence. Specifically, we apply sigma and log t convergence tests for income convergence in the East Asian region and an augmented autoregressive distributed lag (ARDL) model to analyze the relationship between regional income dispersion and intra- and extra-regional flows of goods, capital and technology. Regardless of the measure of per capita income, the sigma convergence tests fail to find any evidence of intra-regional convergence. The log t convergence tests do not indicate overall convergence either, but, indicate the existence of convergence clubs within the region. The regression analysis suggests that intra-regional flows of capital and technology and extra- regional FDI flows unambiguously engender convergence while intra-regional trade flows and extra-regional exports have divergence effects.
Journal: The Journal of International Trade & Economic Development
Pages: 486-507
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2018.1550801
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1550801
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Template-Type: ReDIF-Article 1.0
Author-Name: Manoranjan Sahoo
Author-X-Name-First: Manoranjan
Author-X-Name-Last: Sahoo
Author-Name: M. Suresh Babu
Author-X-Name-First: M. Suresh
Author-X-Name-Last: Babu
Author-Name: Umakant Dash
Author-X-Name-First: Umakant
Author-X-Name-Last: Dash
Title: Asymmetric effects of exchange rate movements on traditional and modern services exports: Evidence from a large emerging economy
Abstract: 
 The service sector in India has emerged as the ‘new engine of growth’ with an increasing share in output and exports. In this paper we analyse the effect of real exchange rate movements on service exports of India, incorporating goods exports, financial development, FDI inflows, world demand and the role of globalization as drivers. We find that while traditional service exports are negatively and significantly affected by the real exchange rate movements, the modern service exports are negatively but not significantly affected. By applying the asymmetric cointegration approach, the results also confirm the non-existence of any asymmetric relationship between the real exchange rate and service exports in India. Further, the results also show that the supply augmenting and demand-side factors are more dominant than the exchange rate to affect service exports from India.
Journal: The Journal of International Trade & Economic Development
Pages: 508-531
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2018.1561744
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1561744
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Template-Type: ReDIF-Article 1.0
Author-Name: Jude Eggoh
Author-X-Name-First: Jude
Author-X-Name-Last: Eggoh
Author-Name: Chrysost Bangake
Author-X-Name-First: Chrysost
Author-X-Name-Last: Bangake
Author-Name: Gervasio Semedo
Author-X-Name-First: Gervasio
Author-X-Name-Last: Semedo
Title: Do remittances spur economic growth? Evidence from developing countries
Abstract: 
 This paper provides original econometric evidence on whether international remittance transfers spur economic growth based on data for a sample of 49 developing countries during the period 2001-2013. Using Panel Smooth Transition Regression (PSTR), difference and system generalized methods of moment models, we find two main results. First, remittances have a positive and significant impact on economic growth in developing countries, while aid and foreign direct investments have insignificant impact. Secondly, as far as the nonlinear relationship is concerned, we find two extreme regimes with a sharp shift characterizing the remittance–growth relationship, with respect to conditional variables, where the remittances effects are positive and significant under the first regime and negative or insignificant under the second. Our findings suggest that the nonlinear relationship between remittances and growth mainly depends on financial development and investment, and less on remittance level and consumption.
Journal: The Journal of International Trade & Economic Development
Pages: 391-418
Issue: 4
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638199.2019.1568522
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1568522
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:4:p:391-418




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Huang
Author-X-Name-First: Rui
Author-X-Name-Last: Huang
Author-Name: Manfred Lenzen
Author-X-Name-First: Manfred
Author-X-Name-Last: Lenzen
Author-Name: Arunima Malik
Author-X-Name-First: Arunima
Author-X-Name-Last: Malik
Title: CO2 emissions embodied in China’s export
Abstract: 
 The reduction of CO2 emissions embodied in export will have an important role for China to achieve its CO2 emissions peaking target. In this study, we use input–output analysis to examine the embodied CO2 emissions in China’s export to its top largest trading countries from 2008 to 2015. We find that China’s exported CO2 emissions peaked in 2008. More than 70% of embodied CO2 emission were exported to only 20 countries, and CO2 emissions exported to developing countries have been increasing. High-energy consumption sectors contribute to CO2 emissions embodied in export significantly, such as Electricity, Gas and Water. We conclude that structural adjustment could be considered alongside technological improvements to curb China’s growing CO2 emissions.
Journal: The Journal of International Trade & Economic Development
Pages: 919-934
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1612460
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1612460
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Template-Type: ReDIF-Article 1.0
Author-Name: Ronald B. Davies
Author-X-Name-First: Ronald B.
Author-X-Name-Last: Davies
Author-Name: Benjamin H. Liebman
Author-X-Name-First: Benjamin H.
Author-X-Name-Last: Liebman
Author-Name: Kasaundra Tomlin
Author-X-Name-First: Kasaundra
Author-X-Name-Last: Tomlin
Title: Trade liberalization in services: Investor responses to NAFTA’s cross-border trucking provisions
Abstract: 
 We investigate the response of US trucking firms to the removal of barriers to cross-border trucking under NAFTA. This was done via a program implemented in 2007, cancelled in 2009, and reinstated in 2011. We use a model of endogenous exporting to show that this can arise from incorrect expectations of import competition. We find that, unsurprisingly, the program’s start resulted in lower stock returns, particularly for border firms. However, later policy changes indicate that investors, and particularly those investing in US multinationals, viewed the pilot as beneficial.
Journal: The Journal of International Trade & Economic Development
Pages: 935-959
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1610473
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1610473
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Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Ramzan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Ramzan
Author-Name: Bin Sheng
Author-X-Name-First: Bin
Author-X-Name-Last: Sheng
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Jian Song
Author-X-Name-First: Jian
Author-X-Name-Last: Song
Author-Name: Zhilun Jiao
Author-X-Name-First: Zhilun
Author-X-Name-Last: Jiao
Title: Impact of trade openness on GDP growth: Does TFP matter?
Abstract: 
 The objective of this study is to empirically explore the impact of trade openness on GDP growth initiating with the idea that trade openness cannot be fully characterized through the different openness measures only, we propose to account for total factor productivity (TFP) development level as an additional dimension of countries’ trade integration. Our empirical application is based on 35 years’ balanced panel of 82 countries spanning 1980–2014. To address the potential endogeneity issue, we use the system GMM estimator developed for dynamic panel data models. The results outline that there exists an interesting non-linear pattern between trade openness and GDP growth when TFP development level is taken as an intervening variable into account: trade may have a negative impact on GDP growth when countries have specialized in low-TFP development level; trade openness clearly boosts GDP growth once countries exhibit a minimum threshold of TFP development level. Therefore, there is some pattern of complementarity between trade openness and TFP development level so that the higher the TFP development level, the higher the impact of the trade openness on GDP growth.
Journal: The Journal of International Trade & Economic Development
Pages: 960-995
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1616805
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1616805
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Template-Type: ReDIF-Article 1.0
Author-Name: Furkan Baser
Author-X-Name-First: Furkan
Author-X-Name-Last: Baser
Author-Name: Soner Gokten
Author-X-Name-First: Soner
Author-X-Name-Last: Gokten
Title: Paths of economic development: A global evidence for the mediating role of human capital
Abstract: 
 This paper revisits the roles of institutions and human capital in the development process by using structural equation modeling with a latent construct. Two models are constructed by using the data of 143 countries with 14 publicly available indicators; non-mediated (Model A) and mediated one (Model B). A path between institutional quality and economic development is identified in Model A and found as significant. When human capital is added into the Model B as a mediator, the direct relationship between institutional quality and economic development which is confirmed in Model A becomes insignificant. This evidence contributes to the debate by explaining the roles of institutions and human capital in the development process, based on the existing level of institutional quality that determines conditions on decisions for starting or sustaining the development process. In other words, (a) improving institutions in addition to human capital is needed for the countries with low level of institutional quality to start development process and; (b) on the other hand, since the human capital develops immunity on the quality of the institutions, human capital plays a more basic role to sustain the development process for the countries with a high level of institutional quality.
Journal: The Journal of International Trade & Economic Development
Pages: 996-1018
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1625067
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1625067
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Template-Type: ReDIF-Article 1.0
Author-Name: Hany Fahmy
Author-X-Name-First: Hany
Author-X-Name-Last: Fahmy
Title: Classifying and modeling nonlinearity in commodity prices using Incoterms
Abstract: 
 This paper proposes a novel approach of classifying and modeling the nonlinear behavior of commodity prices using regime-switching models with exogenous transition variables. The approach rests on using the International Commercial Terms (Incoterms), also known as border prices, to classify commodities in groups that tend to display similar dynamics. The suggested border price classification is useful in identifying the key exogenous driving variables in each group. In particular, the classification suggests that inflation and oil price are the best transition candidates that are capable of capturing the nonlinear dynamics of free on board (FOB) and cost insurance and freight (CIF) prices respectively. Our statistical linearity tests and estimation results confirm this prediction and highlight the importance of the suggested border price classification in improving our understanding of the behavior of commodity prices.
Journal: The Journal of International Trade & Economic Development
Pages: 1019-1046
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1629616
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1629616
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Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Corona
Author-X-Name-First: Francisco
Author-X-Name-Last: Corona
Author-Name: Pedro Orraca
Author-X-Name-First: Pedro
Author-X-Name-Last: Orraca
Title: Remittances in Mexico and their unobserved components
Abstract: 
 The present study aims to determine the common trends and the permanent and transitory components of remittances received by Mexican households. This is done by estimating a small Dynamic Factor Model (DFM), using the approach first proposed by Gonzalo and Granger [1995. “Estimation of Common Long-memory Components in Cointegrated Systems.” Journal of Business and Economic Statistics 13 (1): 27–35], determining the number of common trends subject to the cointegration results. The study also shows the similarities between this small DFM with respect to large DFM, which are widely used in the econometric literature. The results indicate the presence of one cointegration relationship. Consequently, there are four common trends. The cointegration relationship is negatively dominated by Mexico's economic activity and positively by the US industrial production. The effects of the exchange rate and the US unemployment rate are positive, but less relevant. This economic scenario leads to remittances exceeding its permanent component.
Journal: The Journal of International Trade & Economic Development
Pages: 1047-1066
Issue: 8
Volume: 28
Year: 2019
Month: 11
X-DOI: 10.1080/09638199.2019.1630847
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1630847
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Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: Sizhong Sun
Author-X-Name-First: Sizhong
Author-X-Name-Last: Sun
Title: Firm heterogeneity and FDI-related productivity spillovers: A theoretical investigation
Abstract: 
 A number of existing empirical studies have attempted to estimate the foreign direct investment (FDI)-related productivity spillover effects to domestic firms in host economies using various methodologies and measures of FDI. This literature has produced mixed results. While some studies found positive spillovers, others reported zero or even negative spillovers. In this paper, using a model of firm heterogeneity, we provide a rigorous theoretical justification for the mixed findings. We show that FDI-related productivity spillover effects can be decomposed into a direct and an indirect effect. If the direct effect is positive then relatively less capable domestic firms that were not able to survive in the industry (before the arrival of foreign firms) can enter the industry, which decreases the average (expected) productivity of the industry. If this indirect effect is sufficiently strong then the overall impact of FDI on productivity of domestic firms can be zero or negative. Hence, irrespective of the type of FDI (vertical or horizontal) and control variables included in empirical models, one may find negative or zero spillover effects.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 1-10
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1482947
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1482947
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Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi
Author-X-Name-First: Kangsik
Author-X-Name-Last: Choi
Author-Name: Seonyoung Lim
Author-X-Name-First: Seonyoung
Author-X-Name-Last: Lim
Title: A reappraisal of strategic trade policies with the endogenous mode of competition under vertical structures
Abstract: 
 This paper examines the endogenous choice of competition mode with strategic export policies in vertically related markets when each upstream firm located in each country determines the terms of the two-part tariff contract by maximizing generalized Nash bargaining. We show that (i) choosing Cournot (Bertrand) competition is the dominant strategy for both downstream firms when goods are substitutes (complements), which leads Pareto superior regardless of the nature of goods under the optimal trade policies; (ii) irrespective of rival&#x2019;s competition mode, the optimal trade policy is an export subsidy under Cournot competition and an export tax under Bertrand competition; and (iii) trade liberalization may give rise to changes of competition mode and increase of social welfare.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 11-29
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1482948
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1482948
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Template-Type: ReDIF-Article 1.0
Author-Name: Eric Evans Osei Opoku
Author-X-Name-First: Eric Evans Osei
Author-X-Name-Last: Opoku
Author-Name: Isabel Kit-Ming Yan
Author-X-Name-First: Isabel Kit-Ming
Author-X-Name-Last: Yan
Title: Industrialization as driver of sustainable economic growth in Africa
Abstract: 
 Whilst the last couple of decades have witnessed an unprecedented growth expedition in Africa, an important question is how to make the growth sustainable. A remarkable distinction between the growth experience in the Asian economies and the African economies is that Africa has more or less skipped the industrial stage which many developed countries observed. Given the major contribution of industrialization to growth, this paper examines the impact of industrialization on economic growth in Africa. The examination of industrialization has become more imperative following recent commitments of African governments and the African Development Bank to it, and also it been a core part of the Sustainable Development Goals. Employing data for the period 1980&#x2013;2014 from 37 African countries and the generalized method of moments method, we show two main interesting results despite the fact that industrialization is very much on the low in the region. First, our results affirm the hypothesis that industrialization is an important booster of economic growth. Second, trade openness further augments the effect of industrialization on economic growth. We also employ alternative measures of industrialization and perform sub-regional/sampling analyses. The results are shown to be robust across.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 30-56
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1483416
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1483416
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:1:p:30-56




Template-Type: ReDIF-Article 1.0
Author-Name: Shima&#x2019;a Hanafy
Author-X-Name-First: Shima&#x2019;a
Author-X-Name-Last: Hanafy
Author-Name: Marcus Marktanner
Author-X-Name-First: Marcus
Author-X-Name-Last: Marktanner
Title: Sectoral FDI, absorptive capacity and economic growth &#x2013; empirical evidence from Egyptian governorates
Abstract: 
 Using a novel panel dataset of Egyptian governorates for the period 1992&#x2013;2007, we investigate the effects of aggregate and sectoral foreign direct investment (FDI) on Egypt&#x2019;s economic growth. We distinguish between FDI in the manufacturing, agriculture and service sector. The similarity of governorates in terms of institutional characteristics like culture, language and legal framework and the consistency of the data collection process enables an effective estimation of the effect of FDI on Egypt&#x2019;s economic growth. Employing General Methods of Moments (GMM) panel estimations, we find that neither aggregate nor sectoral FDI has an unconditional effect on economic growth. We also reject human capital as a channel of absorptive capacity, but reveal an interesting effect of FDI in the service sector on economic growth in interaction with domestic private investment (DPI). Service FDI promotes economic growth only if the host governorate has a minimum threshold of DPI to absorb foreign knowledge and technology.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 57-81
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1489881
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1489881
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Handle: RePEc:taf:jitecd:v:28:y:2019:i:1:p:57-81




Template-Type: ReDIF-Article 1.0
Author-Name: Ku-Chu Tsao
Author-X-Name-First: Ku-Chu
Author-X-Name-Last: Tsao
Author-Name: Shih-Jye Wu
Author-X-Name-First: Shih-Jye
Author-X-Name-Last: Wu
Author-Name: Jin-Li Hu
Author-X-Name-First: Jin-Li
Author-X-Name-Last: Hu
Author-Name: Yan-Shu Lin
Author-X-Name-First: Yan-Shu
Author-X-Name-Last: Lin
Title: Subcontracting bargaining power and the trade policy
Abstract: 
 In this paper, we consider that the split of surplus from a subcontracting deal depends on the relative bargaining powers of domestic and foreign firms. The finding shows that a domestic optimal export policy is a tax (subsidy) if the bargaining power of the domestic firm is sufficiently small (large). We also demonstrate that a domestic firm&#x2019;s higher bargaining power increases (may decrease) domestic profit if the export policy is exogenous (endogenous). In the presence of an outsider option, the domestic optimal export policy will be threatened by the outsider option if the domestic firm&#x2019;s bargaining power is sufficiently small, and thus a large bargaining power increases the optimal export tax. At the same time, the foreign firm may still subcontract to the domestic firm even if the domestic firm has a higher total marginal cost of the intermediate good than the outsider option.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 82-100
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1501084
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1501084
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Template-Type: ReDIF-Article 1.0
Author-Name: Zobaida Khan
Author-X-Name-First: Zobaida
Author-X-Name-Last: Khan
Title: Utilizing low-wage labour for economic growth: A critical analysis of Bangladesh&#x2019;s trade policy review
Abstract: 
 Critically analysing some suggestions of the WTO&#x2019;s trade policy review mechanism (TPRM) on Bangladesh&#x2019;s trade and labour policy, this article proposes that attention to the sustainable development (SD) objective of trade liberalization can redirect the review process. Amartya Sen&#x2019;s capability-based perspective to SD is borrowed to argue that the TPRM can advise on some urgent social or distributional impacts of trade liberalization, or at least refrain from advising/encouraging economic growth based solely on utilizing low-wage labour. However, it argues that even with a broader approach the TPRM might be unable to address some crucial social or distributional issues: for example, it might not be possible to report on issues relating to semi-formal or informal workers and their life-threatening work conditions. Addressing these complex trade-related social concerns require effective coordination between mechanisms and forces operating at multiple governance frameworks.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 101-122
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638199.2018.1504978
File-URL: http://hdl.handle.net/10.1080/09638199.2018.1504978
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Template-Type: ReDIF-Article 1.0
Author-Name: Haiwen Zhou
Author-X-Name-First: Haiwen
Author-X-Name-Last: Zhou
Title: Impact of international trade on unemployment under oligopoly
Abstract: 
 By studying a two-sector general equilibrium model in which firms engage in oligopolistic competition and unemployment is a result of the existence of efficiency wages, we derive the following results analytically. A country's comparative advantage in producing manufactured goods increases with the level of efficiencies in the labor market. The opening of international trade leads to the equalization of wage rates even though countries differ in their factor endowments and labor market efficiencies. If countries have the same level of labor market efficiencies but differ in their endowments of labor and land, the opening to international trade leads to an increase in the wage rate in both countries.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 365-379
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1379553
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1379553
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:365-379




Template-Type: ReDIF-Article 1.0
Author-Name: Gordon Sirr
Author-X-Name-First: Gordon
Author-X-Name-Last: Sirr
Author-Name: John Garvey
Author-X-Name-First: John
Author-X-Name-Last: Garvey
Author-Name: Liam A. Gallagher
Author-X-Name-First: Liam A.
Author-X-Name-Last: Gallagher
Title: Local conditions and economic growth from South–South FDI
Abstract: 
 This paper examines growth in Southern economies arising from FDI from both Southern and Northern economies. We explore local conditions that are necessary for growth. A system GMM estimator is used to distinguish between South–South and North–South FDI flows. The highly skilled labour and strong property rights protection required to achieve growth from Northern FDI are not necessary local conditions for achieving growth from Southern FDI. It is strong law and order that emerges as a critical necessary condition associated with positive growth following Southern FDI. The results indicate a distinctive impact of local conditions in activating growth from FDI.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 380-388
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1385645
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1385645
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:380-388




Template-Type: ReDIF-Article 1.0
Author-Name: Reth Soeng
Author-X-Name-First: Reth
Author-X-Name-Last: Soeng
Author-Name: Ludo Cuyvers
Author-X-Name-First: Ludo
Author-X-Name-Last: Cuyvers
Title: Domestic institutions and export performance: Evidence for Cambodia
Abstract: 
 The paper analyzes the relevance of domestic institutions for export performance of Cambodia. Regulatory quality, control of corruption, rule of law, government effectiveness, and political stability are introduced in an augmented gravity model with a panel data set over 1996–2015. The research is the first application to Cambodia, until 2015 a least developed country which is generally believed to have poorly developed institutions. Due to high multicollinearity among the variables, the institutional variables are introduced in the model one by one. Estimation is by the Hausman–Taylor method, which reduces or removes the correlation between the composite error terms and the included variables. All institutional variables show a highly significant positive relationship with Cambodia's exports, with rule of law having the largest impact. It is concluded that the government should give high priority to the further improvements of the legal environment and to strong enforcement of property rights and contracts.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 389-408
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1386230
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1386230
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:389-408




Template-Type: ReDIF-Article 1.0
Author-Name: Simplice A. Asongu
Author-X-Name-First: Simplice A.
Author-X-Name-Last: Asongu
Author-Name: Jules R. Minkoua N.
Author-X-Name-First: Jules R.
Author-X-Name-Last: Minkoua N.
Title: Dynamic openness and finance in Africa
Abstract: 
 This study assesses dynamics of openness and finance in Africa by integrating financial development dynamics of depth, activity and size in the assessment of how financial, trade, institutional, political and other openness policies (of second generation structural and institutional reforms) have affected financial development. The empirical evidence is based on Generalized Method of Moments with data from 28 African countries for the period 1996–2010. The following findings are established. (1) While the de jure (KAOPEN) indicator of financial openness improves financial depth, the de facto (FDI) measurement decreases it, with the effect of the latter measure positive on financial size. (2) Whereas trade openness improves financial depth, its effect on financial activity and size is negative. (3) Institutional openness has a positive effect on financial dynamics of depth and activity, while its effect on financial size is negative. (4) Political openness and economic freedom are detrimental to financial depth and activity. Justifications for these nexuses are discussed.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 409-430
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1387167
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1387167
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:409-430




Template-Type: ReDIF-Article 1.0
Author-Name: William W. Chow
Author-X-Name-First: William W.
Author-X-Name-Last: Chow
Author-Name: Michael K. Fung
Author-X-Name-First: Michael K.
Author-X-Name-Last: Fung
Author-Name: Man-Kwong Leung
Author-X-Name-First: Man-Kwong
Author-X-Name-Last: Leung
Title: Finance–growth nexus in China from an endogenous switching perspective
Abstract: 
 This study examines the relationship between financial development and economic growth across Chinese provinces with switching causality. Four states are considered: bidirectional causality (state 1); one-way causality from growth to finance (state 2); one-way causality from finance to growth (state 3); and non-causality (state 4). While state 3 dominates in developed regions, states 1 and 3 occur intermittently in other regions. This implies that the demand for financial services induced by local economic growth plays a stronger role in driving financial development in under-developed regions. Consistent with prior research, bank loans negatively affect economic growth in China.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 443-462
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1389976
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1389976
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:443-462




Template-Type: ReDIF-Article 1.0
Author-Name: Haslifah M. Hasim
Author-X-Name-First: Haslifah M.
Author-X-Name-Last: Hasim
Author-Name: Nasser Al-Mawali
Author-X-Name-First: Nasser
Author-X-Name-Last: Al-Mawali
Author-Name: Debojyoti Das
Author-X-Name-First: Debojyoti
Author-X-Name-Last: Das
Title: Bilateral intra-industry trade flows and intellectual property rights protections: further evidence from the United Kingdom
Abstract: 
 This paper investigates the relationship between the United Kingdom's (hereafter referred as UK) bilateral intra-industry trade (IIT) and foreign intellectual property rights (IPRs) protections. The empirical investigation is based on pooled UK data and benefits from the theoretical distinction between horizontal and vertical IIT. It also estimates a gravity equation for international trade using both fixed and random effects models. We then extend the analysis by employing the GMM system for dynamic panel models. The principal findings suggest that the UK's IIT is stimulated when the level of a trading partner's IPRs and its imitative ability are considered jointly. However, when IPRs and imitation abilities are considered separately, their disparate effects are not an important factor in determining UK IIT flows.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 431-442
Issue: 4
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638199.2017.1390594
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1390594
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Handle: RePEc:taf:jitecd:v:27:y:2018:i:4:p:431-442




Template-Type: ReDIF-Article 1.0
Author-Name: Joanna Wyszkowska-Kuna
Author-X-Name-First: Joanna
Author-X-Name-Last: Wyszkowska-Kuna
Title: The role of intermediate demand and technology for international competitiveness of the KIBS sector: evidence from European Union countries
Abstract: 
 In this paper, it is tested whether intermediate consumption of knowledge-intensive business services (KIBS) in the economy and technology advancement in the KIBS sector (measured by R&amp;D expenditures) affect the international competitiveness of a country's KIBS sector. First, the definition of KIBS trade, in light of the available data from the balance of payments statistics, is presented. Then, using a panel data set from the EU countries over the period 2000–2009, a panel cointegration approach to estimating the model is adopted. The empirical study shows that among the old EU countries only those with high income are competitive in KIBS exports. Estimation results demonstrate that their competitiveness in KIBS exports is positively determined by domestic and imported KIBS intensity in the economy, as well as by the KIBS sector's technology advancement. The new EU countries usually were not competitive in KIBS exports, and those which were successful in this field seem to have derived their success mainly from international outsourcing rather than from building their own capacities. Their competitiveness in KIBS exports was positively determined by the KIBS sector's endowment in human capital, or via domestic KIBS intensity in the economy together with lower labour costs.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 777-800
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1302495
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1302495
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:7:p:777-800




Template-Type: ReDIF-Article 1.0
Author-Name: Jingbo Cui
Author-X-Name-First: Jingbo
Author-X-Name-Last: Cui
Author-Name: Hang Qian
Author-X-Name-First: Hang
Author-X-Name-Last: Qian
Title: The effects of exports on facility environmental performance: Evidence from a matching approach
Abstract: 
 This paper employs matching techniques to investigate the effects of facility export status on environmental performance. Using facility-level criteria air emission data in the US manufacturing industry, we find the industry-specific effects of export status on emission intensity, measured by emissions per value of sale. In some industries, there is consistent and robust evidence supporting the superior environmental performance of exporters relative to non-exporters in terms of emission intensity for all criteria air pollutants tracked. In other industries, we find weak evidence that exporters appear to have a higher emission intensity than non-exporters. This industrial heterogeneity in the effects of exporting on the environment is closely related to industrial characteristics including pollution abatement capital expenditure, trade costs, capital intensity and others.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 759-776
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1303079
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1303079
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:7:p:759-776




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangjun Ma
Author-X-Name-First: Xiangjun
Author-X-Name-Last: Ma
Title: Do taxes influence the organizational boundaries of international firms? An incomplete-contracting model with empirical evidence
Abstract: 
 Firms that import intermediate goods choose between outsourcing and vertical integration. When corporate tax rates differ between the home country and the foreign country, the possibility of shifting income and reducing overall tax payments through transfer pricing makes integration more attractive than outsourcing. This paper develops an incomplete-contracting model in which an international firm facing tax rate differentials chooses whether or not to internalize intermediate transactions in order to trade off production efficiency and tax minimization. By shifting economic activities across borders, an integrated multinational enterprise establishes a proper transfer price and reaches the optimal profit-splitting arrangement that maximizes its total after-tax profit. This paper finds that cross-country differences in corporate tax rates and product intangibility play important roles in affecting firms’ internalization decision. Empirical analysis employing the US data also supports the theoretical findings. The positive correlation of the integration level of US firms and tax rate differentials between the US and foreign countries remains in the sample excluding tax havens.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 801-828
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1303744
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1303744
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Template-Type: ReDIF-Article 1.0
Author-Name: Chi Wei Su
Author-X-Name-First: Chi Wei
Author-X-Name-Last: Su
Author-Name: Zhi-Feng Wang
Author-X-Name-First: Zhi-Feng
Author-X-Name-Last: Wang
Author-Name: Rui Nian
Author-X-Name-First: Rui
Author-X-Name-Last: Nian
Author-Name: Yanping Zhao
Author-X-Name-First: Yanping
Author-X-Name-Last: Zhao
Title: Does international capital flow lead to a housing boom? A time-varying evidence from China
Abstract: 
 This paper examines the causal relationship between the housing prices (HP) and the international capital flows (ICF) in China. With structural changes existing, we find that long-run relationship using full-sample data is unstable, suggesting that traditional Granger causality test is not reliable. However, we further find an unstable short-run relationship between ICF and HP when assessing the stability of the parameters and there are bidirectional causal relationships between ICF and HP for several sub-periods. Additionally, our findings indicate both positive and negative bidirectional causal relations between the series. Based on the arbitrage of ICF, the results suggest that the rise of Chinese HP is the underlying force for the inflows of international capital. Meanwhile, a surge in capital inflows may be accompanied by a rise in the price of housing. This confirms the theoretical analysis that there is an interconnected transmission mechanism between the ICF and the HP, which is diverse and depends both on the flow of ICF and on other factors.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 851-864
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1305434
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1305434
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:7:p:851-864




Template-Type: ReDIF-Article 1.0
Author-Name: Wen Chen
Author-X-Name-First: Wen
Author-X-Name-Last: Chen
Title: Do stronger intellectual property rights lead to more R&amp;D-intensive imports?
Abstract: 
 There is much evidence that intellectual property rights (IPR) protection stimulates trade flows between countries. Yet less is known whether this effect is stronger for technology-intensive products. Using data for 119 countries over the period 1976–2010, this paper shows that the impact of IPR protection on manufacturing imports is significantly stronger for products with greater technology embodiment, as measured by their R&amp;D intensity. An increase in the level of IPR protection leads to 22 per cent faster increase in the value of imports of products at the 90th percentile of R&amp;D intensity than products at the 10th percentile.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 865-883
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1312493
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1312493
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:7:p:865-883




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Hossein Setayesh
Author-X-Name-First: Mohammad Hossein
Author-X-Name-Last: Setayesh
Author-Name: Abbas Ali Daryaei
Author-X-Name-First: Abbas Ali
Author-X-Name-Last: Daryaei
Title: Good governance, innovation, economic growth and the stock market turnover rate
Abstract: 
 This study is primarily aimed at testing the theory of good governance in the group of eight developing Islamic countries. Using a panel data regression model, we examined the data to determine the relationship between political economy and economic development of eight countries, for the period 2005 to 2014. The results show a significant positive correlation between the rule of law, corruption control with economic growth and stock market turnover rate proxy. The examination through an artificial neural network resulted in a higher determination coefficient and less average standard error. This, in turn, reveals that the fitting power and efficiency of this method is higher than the panel data regression model. Furthermore, the findings of this study suggest that the application of good governance theory calls for more inquiry.
Journal: The Journal of International Trade &amp; Economic Development
Pages: 829-850
Issue: 7
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638199.2017.1334809
File-URL: http://hdl.handle.net/10.1080/09638199.2017.1334809
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Handle: RePEc:taf:jitecd:v:26:y:2017:i:7:p:829-850




Template-Type: ReDIF-Article 1.0
Author-Name: Clemence Gomwe
Author-X-Name-First: Clemence
Author-X-Name-Last: Gomwe
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Title: Iron ore price and the AUD exchange rate: A Markov approach
Abstract: 
 The present paper fitted the monthly data set into the Markov regime switching model to examine the relationship between the iron ore price and the Australian dollar (AUD) exchange rate. The study dichotomised the AUD into state 1 (depreciation) and state 2 (appreciation). The empirical results indicate evidence of an asymmetric relationship between an iron ore price change and the AUD exchange rate fluctuation based on states. The AUD appreciates with a fall in iron price and depreciates with a rise in iron ore price. The results contradict with the understanding of the commodity-currency theory. Additionally, iron ore price reduces the AUD state expected duration and the switching probability, but increases the AUD volatility. Based on the transition probability, the AUD has a higher chance of depreciating than appreciating. The statistical economic impact of the AUD currency is higher when appreciating than depreciating.
Journal: The Journal of International Trade & Economic Development
Pages: 147-162
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1655087
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1655087
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:2:p:147-162




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Ahad
Author-X-Name-First: Muhammad
Author-X-Name-Last: Ahad
Author-Name: Zaheer Anwer
Author-X-Name-First: Zaheer
Author-X-Name-Last: Anwer
Title: Asymmetrical relationship between oil price shocks and trade deficit: Evidence from Pakistan
Abstract: 
 This study investigates the asymmetric impact of oil price shocks on trade deficit for Pakistan economy, using NonLinear ARDL analysis, over the period of 1990QI-2016QIV. The estimation results confirm the presence of nonlinearity in the series. The bound testing approach also establishes the existence of asymmetric relationship between trade deficit and oil price movements. We find that increase (decrease) in oil prices and wholesale prices and decrease (increase) in industrial product results in a significant increase (decrease) in trade deficit. The adjustment pattern, using dynamic multipliers, reveals that the new long-run equilibrium for oil prices can be archived after 1 year and 2 months, wholesale prices by 3 years and 8 months and for industrial growth in 6 years and 6 months. This paper has important policy implications for Pakistani decision-makers.
Journal: The Journal of International Trade & Economic Development
Pages: 163-180
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1655782
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1655782
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:2:p:163-180




Template-Type: ReDIF-Article 1.0
Author-Name: Debasish Kumar Das
Author-X-Name-First: Debasish Kumar
Author-X-Name-Last: Das
Author-Name: Champa Bati Dutta
Author-X-Name-First: Champa Bati
Author-X-Name-Last: Dutta
Title: Can oil and precious metal price forecast exchange and interest rate movement in Bangladesh?
Abstract: 
 This paper investigates the predictive power of world oil and precious metal price for exchange rate (BDT/US dollar) and interest rate movements using monthly data spanning from January 1990 to April 2016. Using a structural VAR with identification restriction, our impulse response and variance decomposition analysis suggest that oil price has a significant influence in forecasting both exchange and interest rate in short-run. Whereas, precious metal (i.e. gold and silver) price tends to display overshooting behavior on interest rate in both short and long horizons. This evidence also suggests that shocks to exchange rate account for a substantial share of fluctuations in interest rate. The findings offer major quantitative evidence for central bank policy makers, investors, hedge and portfolio managers.
Journal: The Journal of International Trade & Economic Development
Pages: 181-198
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1655584
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1655584
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:2:p:181-198




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Gains from domestic versus international trade: Evidence from the US
Abstract: 
 Using varieties of a rich model that considers sectoral heterogeneity and input-output linkages, this paper shows that the overall welfare gains of a region within a country can be decomposed into domestic versus international welfare gains from trade. Empirical results based on sector- and state-level data from the US suggest that about 94 percent of the overall welfare gains of a state is due to domestic trade with other states. The ocean states gain from international trade about two times the Great Lake states and about three times the landlocked states.
Journal: The Journal of International Trade & Economic Development
Pages: 199-210
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1662075
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1662075
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Template-Type: ReDIF-Article 1.0
Author-Name: Sena Kimm Gnangnon
Author-X-Name-First: Sena Kimm
Author-X-Name-Last: Gnangnon
Title: Poverty and export product diversification in developing countries
Abstract: 
 The current article contributes to the literature on the relationship between poverty and international trade by addressing an issue that has received scant attention in this literature, that is, the effect of poverty on export product diversification in developing countries. The analysis focuses on a sample of 109 developing countries covering the period 1980–2014. It shows that over this sample, poverty influences positively export product concentration, with the magnitude of this effect increasing as countries experience higher development level. Furthermore, the analysis reveals that the effect of poverty on export product concentration depends on a number of factors, including the amount of development aid flows that accrue to a country, the accumulated human capital, the depth of financial development as well as the amount of public revenue available to the government.
Journal: The Journal of International Trade & Economic Development
Pages: 211-236
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1658124
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1658124
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:2:p:211-236




Template-Type: ReDIF-Article 1.0
Author-Name: Sumei Gan
Author-X-Name-First: Sumei
Author-X-Name-Last: Gan
Author-Name: Dingping Cheng
Author-X-Name-First: Dingping
Author-X-Name-Last: Cheng
Title: Exchange rate appreciation, R&D, and export sophistication: Evidence from China
Abstract: 
 Based on panel data of 26 manufacturing industries in China from 2000 to 2010, this paper investigates the impact of exchange rate changes on export sophistication. Utilizing a fixed-effects model, we found that prior to the RMB exchange rate reform in 2005, the RMB exchange rate was significantly negatively correlated with export complexity, while it was significantly positively correlated with export complexity after the exchange rate reform. The appreciation of the RMB brought about by the implementation of the reform policy has significantly improved the sophistication of China’s exports. It was also determined that the appreciation of the RMB significantly augmented the sophistication of China’s exports by promoting R&D investment.
Journal: The Journal of International Trade & Economic Development
Pages: 237-246
Issue: 2
Volume: 29
Year: 2020
Month: 2
X-DOI: 10.1080/09638199.2019.1657171
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1657171
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Template-Type: ReDIF-Article 1.0
Author-Name: Juan Esteban Carranza
Author-X-Name-First: Juan Esteban
Author-X-Name-Last: Carranza
Author-Name: Alejandra González-Ramírez
Author-X-Name-First: Alejandra
Author-X-Name-Last: González-Ramírez
Author-Name: Alex Perez
Author-X-Name-First: Alex
Author-X-Name-Last: Perez
Title: The quality and the destination of the colombian manufacturing exports
Abstract: 
 In this paper, we describe the relationship between the quality of goods and inputs of the Colombian manufacturing firms and the income level of their export markets. We show that there is a positive correlation between measures of product and input quality and measures of per capita income of export markets. In particular, the results suggest that the taste for quality is correlated with income, and that the quality of manufactured products is correlated with the quality of the inputs used to produce them. These findings are consistent with the recent literature on the demand and supply of quality, and with evidence for other countries.
Journal: The Journal of International Trade & Economic Development
Pages: 247-271
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1658212
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1658212
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:3:p:247-271




Template-Type: ReDIF-Article 1.0
Author-Name: Imtiaz Ahmad
Author-X-Name-First: Imtiaz
Author-X-Name-Last: Ahmad
Author-Name: Zafar Mahmood
Author-X-Name-First: Zafar
Author-X-Name-Last: Mahmood
Title: Firms’ heterogeneity and margins of trade under uncertainty
Abstract: 
 This study provides empirical evidence for the impact of uncertainty on the firms' export decisions. In the heterogeneous firms model, the firms' export decisions are affected by uncertainty and the firm’s risk-taking behavior along with productivity and the firms' size. The estimates show that risk-taking firms have higher probability of exporting relative to risk-neutral and risk-taking firms at 91 percent. For relatively small-sized firms, the risk-taking behavior does not make much difference in terms of probability of exporting. However, there is considerably larger impact of increase in the firm size on the probability of exporting in case of risk-taking firms. The firm-specific uncertainties also negatively affect the intensive margins of trade; consequently, firms spread their costs of adjustment over more than one period instead of making adjustments at once.
Journal: The Journal of International Trade & Economic Development
Pages: 272-288
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1660396
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1660396
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:3:p:272-288




Template-Type: ReDIF-Article 1.0
Author-Name: Hüseyin Şen
Author-X-Name-First: Hüseyin
Author-X-Name-Last: Şen
Author-Name: Ayşe Kaya
Author-X-Name-First: Ayşe
Author-X-Name-Last: Kaya
Author-Name: Savaş Kaptan
Author-X-Name-First: Savaş
Author-X-Name-Last: Kaptan
Author-Name: Metehan Cömert
Author-X-Name-First: Metehan
Author-X-Name-Last: Cömert
Title: Interest rates, inflation, and exchange rates in fragile EMEs: A fresh look at the long-run interrelationships
Abstract: 
 This study attempts to establish the possible existence of the long-run interrelationship between interest rates, inflation, and exchange rates in five EMEs (Brazil, India, Indonesia, South Africa, and Turkey), what is so-called by Morgan Stanley ‘Fragile Five’. To do so, we utilize Li and Lee's [2010. “ADL Tests for Threshold Cointegration.” Journal of Time Series Analysis 31 (4): 241–254.] Autoregressive Distributed Lag test for threshold cointegration and apply it to the sample country's time-series data from 2013:m1 to 2018:m12. Overall, our results are threefold: First, there seems to be a long-run positive relationship between actual rates of inflation and nominal interest rates supporting the validity of the ex-post Fisher hypothesis for all the sample countries. Second, the results support the presence of a cointegrating relationship between interest rates and exchange rates for Brazil, India, and Turkey but not for Indonesia and South Africa. Lastly, without exception, exchange rates and actual rates of inflation in all the sample countries tend to co-move in the long-run, implying that the depreciation of their currencies creates an inflationary effect on domestic prices through raising the prices of imported goods. The results above are widely consistent with both theoretical expectations and the relevant empirical literature.
Journal: The Journal of International Trade & Economic Development
Pages: 289-318
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1663441
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1663441
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Samour
Author-X-Name-First: Ahmed
Author-X-Name-Last: Samour
Author-Name: Aliya Zhakanova Isiksal
Author-X-Name-First: Aliya Zhakanova
Author-X-Name-Last: Isiksal
Author-Name: Nil Gunsel Resatoglu
Author-X-Name-First: Nil
Author-X-Name-Last: Gunsel Resatoglu
Title: The impact of external sovereign debt and the transmission effect of the US interest rate on Turkey’s equity market
Abstract: 
 The main objective of this study is to examine the dynamic impacts of external sovereign debt and the transmission effect of the US interest rate on Turkey’s equity market. Autoregressive Distributed Lag (ARDL) model is used to test the long-run coefficients between the variables. Gregory-Hansen with one structural break (SB), Hatemi-J cointegration tests with two (SB), and the recently developed Bayer-Hanck (BH) combined co-integration tests are used to confirm robustness of the ARDL bounds test. Moreover, the Granger causality test is applied to examine the causality direction among the variables. The results showed empirical evidence that the Turkish equity market was negatively affected by the external sovereign debt. Furthermore, the results provided a strong evidence of the spillover effects of the US interest rate on Turkey’ equity market through the local interest rate and external sovereign debt channels. These findings suggest that the Turkish policy makers are required to design plans to avoid any undesirable impacts of the spillover effects of the external debt and foreign interest rates policies on equity market in order to maintain stability.
Journal: The Journal of International Trade & Economic Development
Pages: 319-333
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1668047
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1668047
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:3:p:319-333




Template-Type: ReDIF-Article 1.0
Author-Name: Jong Woo Kang
Author-X-Name-First: Jong Woo
Author-X-Name-Last: Kang
Author-Name: Dorothea Ramizo
Author-X-Name-First: Dorothea
Author-X-Name-Last: Ramizo
Title: Impact of antidumping measures on international trade: Growing South–South tensions?
Abstract: 
 In the last two decades, developing economies have become prominent users of antidumping measures in their trade protection policies. However, few empirical studies have studied the impact of antidumping measures according to region, development status, and product groups. This paper addresses this gap by investigating empirically the trade impact of antidumping measures on trade between different region and country groupings. Using various econometric models, this paper estimates the trade impact of such measures on exports to different country groups from North America, the European Union, and developing Asia from 2000–2015. Developing countries have become more frequent initiators of antidumping measures than before, in particular against imports from other developing countries. Robust empirical evidence suggests that antidumping measures by countries outside the Organisation for Economic Cooperation and Development and non-developing Asia have particularly adverse effects on developing Asian economies.
Journal: The Journal of International Trade & Economic Development
Pages: 334-352
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1676295
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1676295
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Template-Type: ReDIF-Article 1.0
Author-Name: John Egyir
Author-X-Name-First: John
Author-X-Name-Last: Egyir
Author-Name: Daniel Sakyi
Author-X-Name-First: Daniel
Author-X-Name-Last: Sakyi
Author-Name: Samuel Tawiah Baidoo
Author-X-Name-First: Samuel Tawiah
Author-X-Name-Last: Baidoo
Title: How does capital flows affect the impact of trade on economic growth in Africa?
Abstract: 
 The paper empirically examines the extent to which different forms of capital flows (foreign direct investment [FDI], remittances, foreign aid and external debt) affect the impact of trade (exports) on economic growth in Africa. We do this with the aid of an augmented endogenous growth model which we estimate by dynamic system GMM technique with endogeneity-expunging efficiency. First, we find that whilst the direct impact of trade (exports) has been crucial in driving economic growth in Africa in both the short- and long-run, capital flows (FDI, remittances, foreign aid and external debt) do not. Second, our results clearly show that, in both the short- and long-run, inflows of FDI and remittances serve as important channels through which trade (exports) has its largest impact on economic growth while inflows of foreign aid and external debt do not. Following these outcomes, we conclude that policies aimed at attracting FDI and remittances to African countries are what policy reforms should target. Further, our findings suggest that moderating the inflow of external debt and foreign aid could be beneficial to the effect of trade (exports) on economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 353-372
Issue: 3
Volume: 29
Year: 2020
Month: 4
X-DOI: 10.1080/09638199.2019.1692365
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1692365
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:3:p:353-372




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Ibarra
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Ibarra
Title: Real exchange rate and relative profit margins: Evidence from non-linear ARDL models for Mexico
Abstract: 
 While many studies have documented the positive effect the real exchange rate (RER) can have on the rate of economic growth in developing countries, the channels of this effect are not yet well understood. The paper contributes to this literature by studying the pass-through of the RER into aggregate relative profit margins in the manufacturing and whole tradables sectors with respect to non-tradables in Mexico during the period 1990–2017. Based on estimates from non-linear error-correction ARDL models, the paper shows the RER affects relative profit margins asymmetrically – with larger reductions after appreciations than increases after depreciations – and that this asymmetry comes from the asymmetric adjustment of both relative costs and to lower extent relative prices. The results support the hypothesis of an RER’s tradables-led economic growth channel and help explain why the RER may affect capital accumulation asymmetrically, with stronger negative effects from appreciations than the positive effects of depreciations, as reported in recent research on Mexico.
Journal: The Journal of International Trade & Economic Development
Pages: 373-398
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1700544
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1700544
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:4:p:373-398




Template-Type: ReDIF-Article 1.0
Author-Name: Sinem Eyuboglu
Author-X-Name-First: Sinem
Author-X-Name-Last: Eyuboglu
Author-Name: Umut Uzar
Author-X-Name-First: Umut
Author-X-Name-Last: Uzar
Title: Is the Feldstein–Horioka puzzle valid in lucky seven countries?
Abstract: 
 In recent years, seven countries, called lucky seven have come to the fore due to improvements in governance quality and economic growth. Thus, examining the investment-saving nexus, which is an important factor of sustainable growth, is very important in the creation of economic policies. In this paper, the nexus between savings and investments in lucky seven countries are examined during the period 1990–2017. Westerlund (2006) and Westerlund (2007) cointegration test results denote that savings and investments are cointegrated. Common correlated effects mean group (CCEMG) and augmented mean group (AMG) estimation results showed that savings have a significant and positive effect on investments in Indonesia, Mexico, and Poland. Kónya (2006) panel causality test results indicate that there is causality running from savings to investments in India and Mexico. Asymmetric test results denote that there is causality from positive shocks of savings to positive shocks of investments in Colombia, India, Kenya, and Mexico. In terms of negative shocks, no causality is determined. The overall results show that the hidden Feldstein–Horioka puzzle is valid in some lucky seven countries.
Journal: The Journal of International Trade & Economic Development
Pages: 399-419
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1694965
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1694965
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:4:p:399-419




Template-Type: ReDIF-Article 1.0
Author-Name: Mutawakil M. Zankawah
Author-X-Name-First: Mutawakil M.
Author-X-Name-Last: Zankawah
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Title: Measuring the volatility spill-over effects of crude oil prices on the exchange rate and stock market in Ghana
Abstract: 
 This paper examines shock and volatility spill-over effects from crude oil prices to Ghana’s exchange rate and stock market. We employ multivariate GARCH BEKK and TBEKK models using monthly data from January 1991 to December 2015. We address two main issues. First, whether oil price movements affect Ghana’s exchange rate and stock market. There are very few previous papers that consider the impact of such volatility spill-overs for Ghana and we are the first to do so in a four-variable system of equations. Second, whether any oil price effects depend on the treatment of oil prices as exogenous or endogenous. We are the first to consider specifications that treat crude oil price spill-over effects as exogenous. We find that oil prices have significant spill-over effects on the exchange rate. This result is unaffected by the treatment of oil prices as exogenous or endogenous. However, the relationship between oil prices and Ghana’s stock market depends on whether the oil price is exogenous or endogenous. The implication of these results is that internationally diversified portfolio investors in Ghana should use hedging strategies such as currency forwards, futures, and options to protect their investments from exchange rate risk emanating from oil price shocks.
Journal: The Journal of International Trade & Economic Development
Pages: 420-439
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1692895
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1692895
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Template-Type: ReDIF-Article 1.0
Author-Name: Mui-Yin Chin
Author-X-Name-First: Mui-Yin
Author-X-Name-Last: Chin
Author-Name: Sheue-Li Ong
Author-X-Name-First: Sheue-Li
Author-X-Name-Last: Ong
Author-Name: Chew-Keong Wai
Author-X-Name-First: Chew-Keong
Author-X-Name-Last: Wai
Author-Name: Chin-Hong Puah
Author-X-Name-First: Chin-Hong
Author-X-Name-Last: Puah
Title: Vertical intra-industry trade and economic size: The case of Malaysia
Abstract: 
 The manufacturing sector has become increasingly important as the engine of growth in the external trade landscape in Malaysia. Meanwhile, most of the manufactured products are involved in intra-industry trade (IIT) and the past studies have documented that vertical intra-industry trade (VIIT) dominates IIT. Thus, using the panel autoregression (VAR) model, this study aims to shed light on the dynamic relationship between VIIT and economic size during 1988–2016 for the case of Malaysia and her top trading partners. The empirical results reveal positive bidirectional causality between VIIT and the economic size of the countries under study. This finding provides evidence that VIIT serves as the new strand of trades lending support to the trade-led growth hypothesis. Therefore, VIIT can act as an engine of growth for Malaysia in the short run. In addition, the findings imply that a shock to VIIT does not create chaos in Malaysia’s economy. On the other hand, a positive shock to Malaysia’s gross domestic product (GDP) increases the VIIT instantly and significantly. Overall, the empirical results suggest that Malaysia’s policy makers should continue to focus on stimulating the growth of VIIT.
Journal: The Journal of International Trade & Economic Development
Pages: 440-454
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1696878
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1696878
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:4:p:440-454




Template-Type: ReDIF-Article 1.0
Author-Name: You-How Go
Author-X-Name-First: You-How
Author-X-Name-Last: Go
Author-Name: Cheong-Fatt Ng
Author-X-Name-First: Cheong-Fatt
Author-X-Name-Last: Ng
Author-Name: T. K. Jayaraman
Author-X-Name-First: T. K.
Author-X-Name-Last: Jayaraman
Title: Asymmetric effect of China’s exchange rates on global commodity prices: New evidence and implication
Abstract: 
 In the context of the ongoing trade dispute between China and the United States, our study attempts to investigate the sensitivity of global commodity prices to the appreciation and depreciation of renminbi (RMB). Using quarterly data of 1994–2016, we reach three notable findings based on linear and non-linear specifications of autoregressive distributed lag (ARDL) model. First, the global price for selected agricultural commodities is sensitive to the appreciation of RMB, exercising downward pressure on agricultural commodity markets. Second, the global price for crude oil is found to react negatively to real appreciation of RMB. Third, the global price for selected metal commodities is found to respond negatively to changes in RMB. Based on these findings, we suggest China adopts a one-off appreciation instead of tariffs on imported commodities to prevent the fluctuation of commodity prices and realize the self-sufficiency goal.
Journal: The Journal of International Trade & Economic Development
Pages: 455-481
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1697346
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1697346
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:4:p:455-481




Template-Type: ReDIF-Article 1.0
Author-Name: Yongliang Zhao
Author-X-Name-First: Yongliang
Author-X-Name-Last: Zhao
Author-Name: Xiaohui Fei
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Fei
Author-Name: Chenxing Wu
Author-X-Name-First: Chenxing
Author-X-Name-Last: Wu
Author-Name: Shabir Mohsin Hashmi
Author-X-Name-First: Shabir Mohsin
Author-X-Name-Last: Hashmi
Title: A global value chain (GVC) model for determining changes in global output caused by currency appreciation
Abstract: 
 This study used a global value chain model to determine the effect of currency appreciation and its resultant impact on different sectors, value chains, and world output. Based on the global value chain (GVC) perspective, we derived a formula for the computation of world output adjustment by sectors caused by currency appreciation. Utilizing the WIOD database, we applied the formula to calculate the changes to the value-added by each sector level, given a specified currency appreciation. Our empirical findings revealed that currency appreciation creates an illusion of higher GDP growth when denominated in a foreign currency. However, when denominated in domestic currency, appreciation of the currency put an adverse impact on its own GDP growth. The impact of currency appreciation varies from country to country and their respective sectors. Taking the world as a whole, US dollar exchange rate appreciation drives up global real GDP, while RMB appreciation leaves a negative impact on the global GDP. Furthermore, it is assumed that if a country’s aggregate demand exceeds its aggregate output, its currency appreciation tends to expand global GDP. Similarly, if a country produces more than what it consumes, its currency appreciation leads to decline in the global GDP.
Journal: The Journal of International Trade & Economic Development
Pages: 482-493
Issue: 4
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638199.2019.1699594
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1699594
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:4:p:482-493




Template-Type: ReDIF-Article 1.0
Author-Name: Ervin Prifti
Author-X-Name-First: Ervin
Author-X-Name-Last: Prifti
Author-Name: Silvio Daidone
Author-X-Name-First: Silvio
Author-X-Name-Last: Daidone
Author-Name: Noemi Pace
Author-X-Name-First: Noemi
Author-X-Name-Last: Pace
Author-Name: Benjamin Davis
Author-X-Name-First: Benjamin
Author-X-Name-Last: Davis
Title: Stuck exchange: Can cash transfers push smallholders out of autarky?
Abstract: 
 This paper focuses on the role of unconditional cash transfers in helping smallholders’ commercialization by overcoming barriers to trade from transaction costs. We use data from a controlled experiment for the evaluation of the Child Grant model in Zambia. We employ a Heckman model that allows us to capture the effects of the program on the propensity to engage in trade in both inputs and outputs markets as well as on the value of trade. The cash transfer program contributes significantly to increase farmers’ commercialization. The program produced greater benefits for those households that face more binding transaction costs from transportation and information gathering.
Journal: The Journal of International Trade & Economic Development
Pages: 495-509
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1702711
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1702711
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:5:p:495-509




Template-Type: ReDIF-Article 1.0
Author-Name: Pui Sun Tam
Author-X-Name-First: Pui Sun
Author-X-Name-Last: Tam
Title: Global impacts of China–US trade tensions
Abstract: 
 This paper studies the economic impacts of China–US trade tensions. A global value chains-augmented global vector autoregressive trade model that gauges the spatial and temporal dynamics of international transmission of economy-specific trade policy shock across economies is employed. Trade tensions are found to have both real and financial effects on individual economies. Results lend support to the thesis that international trade is a positive-sum game in the world trading system characterized by global value chains. The US restrictive trade policy is counter-productive to the US economy by worsening its trade imbalances. Redirection of investment from China may be limited given the contemporary world economy characterized by global value chain production networks. Economies from different regional economic groups and with different trade balance positions are heterogeneously affected. As a whole, trade protectionism is detrimental to the economic well-being of the world economy by shrinking international trade, reducing output, curbing investment and plummeting stock prices.
Journal: The Journal of International Trade & Economic Development
Pages: 510-545
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1703028
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1703028
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Handle: RePEc:taf:jitecd:v:29:y:2020:i:5:p:510-545




Template-Type: ReDIF-Article 1.0
Author-Name: Melisa Chanegriha
Author-X-Name-First: Melisa
Author-X-Name-Last: Chanegriha
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Author-Name: Christopher Tsoukis
Author-X-Name-First: Christopher
Author-X-Name-Last: Tsoukis
Title: Testing for causality between FDI and economic growth using heterogeneous panel data
Abstract: 
 The causal relationship between FDI inflows and growth is of great policy interest, yet the state of concrete knowledge on the issue is rather poor. Our contribution is to investigate the causal relationship between the ratio of FDI to GDP (FDIG) and economic growth (GDPG) using a battery of cutting-edge methods and an extensive data set. We employ the heterogeneous-panel tests of the Granger non-causality hypothesis based on the works of Hurlin, C. 2004a. Testing Granger Causality in Heterogeneous Panel Data Models with Fixed Coefficients. Mimeo: University of Orléans, (Fisher, R. A. 1932. Statistical Methods for Research Workers. Edinburgh: Oliver & Boyd., Fisher, R. A. 1948. ‘Combining Independent Tests of Significance.’ American Statistician 2 (5): 30–31) and Hanck, C. 2013. ‘An intersection test for panel unit roots.’ Econometric Reviews 32 (2): 183–203. Our panel data set is compiled from 136 developed and developing countries over the 1970-2006 period. According to the Hurlin and Fisher tests, FDIG unambiguously Granger-causes GDPG for at least one country. However, the results from these tests are ambiguous regarding whether GDPG Granger-causes FDIG for at least one country. Using a test based upon Hanck, C. 2013. ‘An intersection test for panel unit roots.’ Econometric Reviews 32 (2): 183–203, both with and without one structural break in the vector autoregression, we are able to determine whether and for which countries there is Granger-causality. This test suggests that at most there are six countries (Estonia, Guyana, Poland, Switzerland, Tajikistan and Yemen) where FDIG Granger-causes GDPG and at most four countries (Dominican Republic, Gabon, Madagascar and Poland) where GDPG Granger-causes FDIG.
Journal: The Journal of International Trade & Economic Development
Pages: 546-565
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1704843
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1704843
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Template-Type: ReDIF-Article 1.0
Author-Name: Prasad Padmanabhan
Author-X-Name-First: Prasad
Author-X-Name-Last: Padmanabhan
Author-Name: Chi-Hui Wang
Author-X-Name-First: Chi-Hui
Author-X-Name-Last: Wang
Author-Name: Chia-Hsing Huang
Author-X-Name-First: Chia-Hsing
Author-X-Name-Last: Huang
Title: Did the 2008 global financial crisis influence the host country corruption and inward foreign direct investments relationship? An empirical examination
Abstract: 
 We use annual data over the 2002–2016 period with Panel Smooth Transition Regression model to examine how the 2008 global financial crisis affected the relationship between FDI inflows into developed, developing, and transition host countries and host country corruption levels. We also partitioned the data for each type of host into corruption regimes (low, moderate, and high) and examined the results separately for each regime. Our results indicate that the crisis altered the FDI inflows/corruption relationships and generally depend on the development level of the host country and corruption regimes. In addition, our evidence suggests a strong correlation between selected host country macroeconomic variables like financial depth, gross capital formation, and FDI outflows and sample variables. In turn, the crisis also affects these variables. Factor analysis results using all sample variables and separately for donor/aid recipient countries indicate the emergence of a few key factors (host country economic environment, host country international involvement, and host country economic growth potential) that are also affected by the crisis. Our analysis strongly suggests that the FDI/corruption is a complex one and corruption prone host countries must consider improvements to corruption, financial depth and domestic gross capital simultaneously to attract FDI inflows.
Journal: The Journal of International Trade & Economic Development
Pages: 566-603
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1706624
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1706624
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Template-Type: ReDIF-Article 1.0
Author-Name: Jai S. Mah
Author-X-Name-First: Jai S.
Author-X-Name-Last: Mah
Author-Name: Sang-Chul Yoon
Author-X-Name-First: Sang-Chul
Author-X-Name-Last: Yoon
Title: The effects of grants and loans on economic growth in Sub-Saharan Africa: Considering different types of income level
Abstract: 
 This paper investigates the question of aid’s effects on economic growth in Sub-Saharan Africa (SSA) by disaggregating aid into grants and loans during 1994–2015. The estimation results indicate that grants have a positive and statistically significant effect on economic growth, while loans have a negative but insignificant effect on it. When we break down the panel data into Low Income Countries (LICs) and Middle Income Countries (MICs) in order to gain further insight, grants have been effective in spurring growth in both LICs and MICs, while loans have had positive and significant impact on economic growth in neither LICs nor MICs. Accordingly, the main findings of this study provide a consistent evidence in support of the grants-effectiveness on growth in both MICs and LICs, contrary to the ineffectiveness of loans. The other supplementary results show that the domestic investment (GCF) and education (SEC) which are basically public policy variables have significantly positive impacts on economic growth in MICs, while they are not statistically significant in LICs.
Journal: The Journal of International Trade & Economic Development
Pages: 604-618
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1708962
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1708962
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Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Dadakas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Dadakas
Author-Name: Salim Ghazvini Kor
Author-X-Name-First: Salim
Author-X-Name-Last: Ghazvini Kor
Author-Name: Scott Fargher
Author-X-Name-First: Scott
Author-X-Name-Last: Fargher
Title: Examining the trade potential of the UAE using a gravity model and a Poisson pseudo maximum likelihood estimator
Abstract: 
 When the United Arab Emirates (UAE) started exporting oil in 1962, it leveraged off the country's economy to emerge as one of the world's fastest-growing nations. Recently, however, worries about the vulnerability of the economy from shocks in international oil prices have effectuated a rapid transformation based on production and trade diversification. Trade agreements and liberalization policies turned the country into a regional trade hub. Given the recent changes in the economy's structure and the importance of trade for the UAE economy, we examine opportunities for the country to further expand trade. We use a gravity equation on 2002–2016 panel data and a Poisson pseudo maximum likelihood estimator to examine the determinants of trade and the trade potential. We compare the results obtained from a theory-consistent econometric approach for the estimation of gravity with the results obtained from past ‘intuitive’ approaches to gravity estimation and infer on the bias present. Results reveal that the UAE has exhausted trade potential with some of its major trading partners including many member countries of the GCC and PAFTA. However, potential for trade expansion exists with many other countries, including Japan and India that could dictate future policy efforts for trade expansion.
Journal: The Journal of International Trade & Economic Development
Pages: 619-646
Issue: 5
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638199.2019.1710551
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1710551
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Template-Type: ReDIF-Article 1.0
Author-Name: Seher Gülşah Topuz
Author-X-Name-First: Seher Gülşah
Author-X-Name-Last: Topuz
Author-Name: Özcan Dağdemir
Author-X-Name-First: Özcan
Author-X-Name-Last: Dağdemir
Title: Analysis of the relationship between trade openness, structural change, and income inequality under Kuznets curve hypothesis: The case of Turkey
Abstract: 
 This study investigates the effect of trade liberalization between 1987 and 2016 on income inequality, which is related to structural transformation in Turkey. For this purpose, the effect of trade openness on income inequality is modelled in non-linear form based on the Kuznets hypothesis. The model has been analysed using the Autoregressive Distributed Lag (ARDL) method. This study has found that there is a non-linear U type relationship between trade openness and income inequality. We have some evidence that shows that while income inequality first decreased when trade openness increased in the early stages of the trade liberalization, during later stages of trade liberalization, there has been an increasing income inequality trend in Turkey. Additionally, the sectoral income inequality variable calculated to represent structural transformation shows that as income gap between agriculture and industry sectors increases, there has been an increasing trend in overall income inequality. The results that were obtained through this analysis are evaluated with other explanatory variables such as GDP per capita, the internal terms of trade and financial development dynamics. There is evidence that while an increase in income per capita decreases income inequality, an increase in financial development and internal terms of trade decrease income inequality.
Journal: The Journal of International Trade & Economic Development
Pages: 647-664
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2019.1711146
File-URL: http://hdl.handle.net/10.1080/09638199.2019.1711146
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Template-Type: ReDIF-Article 1.0
Author-Name: Halvor Mehlum
Author-X-Name-First: Halvor
Author-X-Name-Last: Mehlum
Author-Name: Ragnar Torvik
Author-X-Name-First: Ragnar
Author-X-Name-Last: Torvik
Author-Name: Simone Valente
Author-X-Name-First: Simone
Author-X-Name-Last: Valente
Title: Growth with age-dependent preferences
Abstract: 
 We study the consequences of age-dependent preferences for economic growth and structural change in a two-sector model with overlapping generations and non-dimishing returns to capital. Savings and accumulation rates depend on the relative price of services consumed by old agents and on the intergenerational distribution of income. The feedback effects originating in preferences and income distribution yield three possible long-run growth outcomes: sustained endogenous growth, decumulation traps, and bounded accumulation. In the endogenous growth scenario, the transition features rising savings and accumulation rates accompanied by distributional shifts in favor of young workers, growing employment and rising prices in the service sector. Traps are triggered by initially low capital in manufacturing and low employment in services. Bounded accumulation yielding zero long-run growth in per capita incomes is induced by preferences, not by diminishing returns to capital.
Journal: The Journal of International Trade & Economic Development
Pages: 665-676
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2020.1716834
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1716834
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Template-Type: ReDIF-Article 1.0
Author-Name: Fatma Bouattour
Author-X-Name-First: Fatma
Author-X-Name-Last: Bouattour
Title: Measuring financial constraints of Brazilian industries: Rajan and Zingales index revisited
Abstract: 
 This paper investigates the inter-sectorial capital misallocation in Brazil over 2000–2012. In this regard, I first propose Brazilian specific sector-level indicators of dependence on external finance, using the methodology of the pioneering work of Rajan and Zingales (1998, RZ). In order to assess capital misallocation, I perform correlation tests between the Brazilian and the original RZ indicators. I also compute measures of the wedge of capital for Brazilian industries, following Marconi and Upper (2017). I then examine the role of the level of financial development as well as the state-bank BNDES in driving capital misallocation in Brazil, and in explaining sector-level growth. Results show that the credit expansion in the 2000s has been less beneficial to manufacturing sectors with high dependence on external finance. This suggests that the development of the financial system in Brazil does not permit to ensure a better allocation of capital. BNDES credits are found to improve sectors’ growth of output, but their effects are reduced in sectors that highly depend on external finance. BNDES loans are also found to increase capital misallocation in Brazil.
Journal: The Journal of International Trade & Economic Development
Pages: 677-710
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2020.1718745
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1718745
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Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Godwin Olasehinde-Williams
Author-X-Name-First: Godwin
Author-X-Name-Last: Olasehinde-Williams
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The impact of US uncertainty shocks on a panel of advanced and emerging market economies
Abstract: 
 In this paper, we analyze the spillovers of uncertainty from the United States (US) on Gross Domestic Product (GDP) in a large panel of 50 advanced and emerging economies. We allow the response of GDP in each country to vary according to its exchange rate regime, trade openness, and a vulnerability index (based on current account, foreign reserves, inflation, and external debt). We observe large heterogeneity in the response of advanced and emerging economies to uncertainty surprises of the US. In response to an increase in US uncertainty, GDP in foreign economies drops slightly more, as it does in the US. In addition we find that, for advanced economies the exchange rate regime and financial vulnerability account for a large portion of the contraction in activity. In emerging economies, however, the responses do not depend on the exchange rate regime, but are larger when trade openness is high and weakness in the financial system is high.
Journal: The Journal of International Trade & Economic Development
Pages: 711-721
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2020.1720785
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1720785
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Template-Type: ReDIF-Article 1.0
Author-Name: Dominik Naeher
Author-X-Name-First: Dominik
Author-X-Name-Last: Naeher
Author-Name: Raghavan Narayanan
Author-X-Name-First: Raghavan
Author-X-Name-Last: Narayanan
Title: Untapped regional integration potential: A global frontier analysis
Abstract: 
 This paper proposes a novel approach to estimate untapped regional integration potential across geographical subregions of the world. We first construct an empirical production possibility frontier for regional integration outcomes based on two composite indices capturing enabling factors and achieved levels of regional integration outcomes across various domains. We then use non-parametric frontier analysis to rate the performance of subregions in terms of integration relative to their estimated potential. The obtained efficiency scores allow us to quantify and compare the empirical magnitudes of untapped integration potential across individual subregions. Our results suggest that, globally, subregional integration levels are currently at 60 percent of the estimated potential on average. Furthermore, there is large variation in integration outcomes, and subregions with large untapped integration potential are spread across all parts of the world. We also demonstrate how, from a policy perspective, the proposed method can be used for assessing achievements in targeting subregions with certain needs and characteristics, and guiding decisions about types of interventions that future programs aimed at fostering higher integration should prioritize in each subregion.
Journal: The Journal of International Trade & Economic Development
Pages: 722-747
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2020.1722204
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1722204
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Template-Type: ReDIF-Article 1.0
Author-Name: Juan Ricardo Perilla Jiménez
Author-X-Name-First: Juan Ricardo
Author-X-Name-Last: Perilla Jiménez
Title: Testing the impact of technology diffusion and innovation on long-run growth using cointegration techniques
Abstract: 
 The long-run relationship between technology diffusion, (local) innovation and productivity, and the impact of government intervention on long-run economic growth, are studied using a sample of 62 countries classified into successful and unsuccessful cases of catching-up. Our dataset is constructed by combining a large suite of statistics for a 30-year period spanning 1980–2010. We rely on conventional Johansen cointegration analysis on individual countries and discuss our findings based on the mean group estimates and empirical distributions of the results for each country classification. The evidence supports the importance of the interaction between technology diffusion and innovation, and the relevance of government coordination to boost innovation and economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 748-773
Issue: 6
Volume: 29
Year: 2020
Month: 8
X-DOI: 10.1080/09638199.2020.1729229
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1729229
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Template-Type: ReDIF-Article 1.0
Author-Name: Gideon Onyewuchi Ndubuisi
Author-X-Name-First: Gideon Onyewuchi
Author-X-Name-Last: Ndubuisi
Title: Contractual frictions and the patterns of trade: The role of generalized trust
Abstract: 
 Extant studies on the relationship between ‘domestic institutions, comparative advantage, and international specialization’ have primarily focused on formal institutions. This paper contributes to this literature by focusing on domestic informal contracting institutions vis-á-vis generalized trust as a source of comparative advantage. Employing a bilateral industry trade data, the paper finds robust evidence that countries with high generalized trust level export relatively more in industries that are prone to contractual frictions. Results on export margins further suggest that countries with a high generalized trust level enter more markets, ship more products to each destination, and have higher export per product and export intensities in those industries. On the one hand, the results reemphasize the importance of trust for improved economic performance. On the other hand, the results explain why a country endowed with weak formal domestic contracting institutions may still have a comparative cost advantage in contract intensive industries due to having strong domestic informal institutions such as generalized trust.
Journal: The Journal of International Trade & Economic Development
Pages: 775-796
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1745259
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1745259
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Template-Type: ReDIF-Article 1.0
Author-Name: Hiroaki Ino
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Ino
Author-Name: Akira Miyaoka
Author-X-Name-First: Akira
Author-X-Name-Last: Miyaoka
Title: Government-induced production commitment vs. import-tariff under endogenous entry of foreign firms
Abstract: 
 Governments often have direct or indirect control over domestic production to develop or protect their domestic industries that have cost disadvantages against foreign firms. We investigate the welfare effects of such a production control policy when domestic firms face the free entry of foreign firms. We consider the production control policy as the government inducing domestic firms to commit to some target output levels before the foreign entry, and compare the resulting domestic social welfare with that under an import tariff. We show that when the products are homogeneous, the production control policy yields higher domestic welfare than any level of import tariff, even if the production control policy aims to maximize domestic industry profits rather than overall domestic welfare. We also show that when the products are differentiated, the superiority of the production control policy crucially depends on the degree of product differentiation. The results suggest a benefit of maintaining the government's control over domestic production even after opening the domestic market, particularly for homogeneous products.
Journal: The Journal of International Trade & Economic Development
Pages: 797-820
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1746385
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1746385
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Template-Type: ReDIF-Article 1.0
Author-Name: Marek A. Dąbrowski
Author-X-Name-First: Marek A.
Author-X-Name-Last: Dąbrowski
Author-Name: Monika Papież
Author-X-Name-First: Monika
Author-X-Name-Last: Papież
Author-Name: Sławomir Śmiech
Author-X-Name-First: Sławomir
Author-X-Name-Last: Śmiech
Title: Classifying de facto exchange rate regimes of financially open and closed economies: A statistical approach
Abstract: 
 This paper offers a new de facto exchange rate regime classification that draws on the strengths of three popular classifications. Its two hallmarks are the careful treatment of a nexus between an exchange rate regime and financial openness and the use of formal statistical tools (the trimmed k-means and k-nearest neighbour methods). It is demonstrated that our strategy minimises the impact of differences between market-determined and official exchange rates on the ‘fix’ and ‘float’ categories. Moreover, it is more suited to assess empirical relevance of the Mundellian trilemma and ‘irreconcilable duo’ hypotheses. Using comparative analysis we find that the degree of agreement between classifications is moderate: the null of no association is strongly rejected, but its strength ranges from low to moderate. Moreover, it is shown that our classification is the most strongly associated with each of the other classifications and as such can be considered (closest to) a centre of a space of alternative classifications. Finally, we demonstrate that unlike other classifications, ours lends more support to the Mundellian trilemma than to the ‘irreconcilable duo’ hypothesis. Overall, our classification cannot be considered a variant of any other de facto classification. It is a genuinely new classification.Highlights
We develop a statistically-based de facto exchange rate regime classificationThe trimmed k-means and k-nearest neighbour methods are usedFix and float categories are identified with the correction for financial opennessThe new classification is a centre of a space of alternative classificationsOur classification supports the trilemma rather than irreconcilable duo hypothesis
Journal: The Journal of International Trade & Economic Development
Pages: 821-849
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1748692
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1748692
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Template-Type: ReDIF-Article 1.0
Author-Name: Olufemi Adewale Aluko
Author-X-Name-First: Olufemi Adewale
Author-X-Name-Last: Aluko
Author-Name: Patrick Olufemi Adeyeye
Author-X-Name-First: Patrick Olufemi
Author-X-Name-Last: Adeyeye
Title: Imports and economic growth in Africa: Testing for granger causality in the frequency domain
Abstract: 
 In this paper, we test for causality between imports and economic growth in 41 African countries. We differ from earlier studies by testing for causality at high and low frequency levels, that is, in the short and long run, respectively. In doing so, we employ a frequency domain Granger causality test robust to pretest biases relating to unit root and cointegration tests. We document that there is: (i) unidirectional causality running from imports and economic growth in 7 countries in the short run and 5 countries in the long run, (ii) unidirectional causality running from economic growth to imports in 4 countries in the short run and 10 countries in the long run, (iii) bidirectional causality in only one country in the short run and 3 countries in the long run, and (iv) no causality in 29 countries in the short run and 23 countries in the long run. Our findings suggest that, for the most part, the neutrality hypothesis is valid in the short- and long-run periods. We imply from our findings that possible changes in the causality dynamics between imports and economic growth over time should be taken into consideration before designing policies.
Journal: The Journal of International Trade & Economic Development
Pages: 850-864
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1751870
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1751870
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Template-Type: ReDIF-Article 1.0
Author-Name: Phuc Nguyen Canh
Author-X-Name-First: Phuc Nguyen
Author-X-Name-Last: Canh
Author-Name: Su Dinh Thanh
Author-X-Name-First: Su
Author-X-Name-Last: Dinh Thanh
Title: Exports and the shadow economy: Non-linear effects
Abstract: 
 This study is the first attempt to investigate the non-linear impacts of export diversification and export quality on the shadow economy. Using a global sample of 116 countries over the period 2003–2014 and applying for panel econometric techniques, we find that the effects of export diversification and export quality are nonlinear on the shadow economy, respectively. The non-linear effects are also consistently found for low- and middle-income economies and high-income economies. The results are robust through different measures of shadow economy and control variables. Our findings show that this is a tipping point in the relationship of export diversification and export quality with the shadow economy. That is, when moving beyond the tipping point, both export diversification and export quality could reduce the shadow economy. This implies that trade liberalization towards export diversification and export quality is an important factor for curbing the shadow economy.
Journal: The Journal of International Trade & Economic Development
Pages: 865-890
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1759676
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1759676
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Template-Type: ReDIF-Article 1.0
Author-Name: David Riker
Author-X-Name-First: David
Author-X-Name-Last: Riker
Title: Estimating U.S. import penetration in sub-national regions
Abstract: 
 We develop an industry-specific model of import demand that takes into account the costs associated with international transport from the exporting country to the port of entry and also the costs associated with domestic transport from the port of entry to the consumer. The costs of domestic transport are usually not included in empirical models of international trade. We estimate these costs using an econometric specification derived from the structural model. We apply the model to 2013–7 import data for the U.S. electrical equipment industry. We use the structural equations and the econometric estimates of the parameter values to impute the flow of imports to U.S. consumers in five regions that cover the lower 48 states, and then we calculate industry-specific import penetration rates for each region. Finally, we simulate the exposure of consumers and industry employment in each region to changes in tariffs on U.S. imports from different countries.
Journal: The Journal of International Trade & Economic Development
Pages: 891-906
Issue: 7
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638199.2020.1758199
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1758199
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Template-Type: ReDIF-Article 1.0
Author-Name: Binh Thai Pham
Author-X-Name-First: Binh Thai
Author-X-Name-Last: Pham
Author-Name: Hector Sala
Author-X-Name-First: Hector
Author-X-Name-Last: Sala
Title: The macroeconomic effects of oil price shocks on Vietnam: Evidence from an over-identifying SVAR analysis
Abstract: 
 This paper studies the macroeconomic effects of oil price shocks in Vietnam. It expands Kilian’s (2009. “Not All Oil Price Shocks are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market.” American Economic Review 99: 1053–1069) framework to simultaneously consider world interest rate shocks and comprehensively assess their consequences on international competitiveness and the State Bank management of the monetary policy. Methodologically, this implies dealing with an over-identified structural vector autoregression (SVAR) model. Data wise, the analysis is performed on a unique dataset with variables defined at a monthly frequency running from 1998:01 to 2018:12. Demand-side, global-, and specific-oil price shocks determine inflation and international competitiveness. They play an essential role in explaining the long-run variations of several Vietnamese macroeconomic indicators (mainly the trade balance, three-month interest rate, and the inflation rate). Vietnam’s Dong pegging to the US Dollar results in a stronger impact of these shocks when real exchange rates and the rate of exports are modelled, than when real effective exchange rates and the trade balance are modelled. In the latter case, shock absorption is quicker given the multilateral trade context in which no single pegging holds. In association with the strong tie between Vietnam’s Dong and the U.S. dollar, we also uncover remarkable effects of the U.S. federal funds rate shocks. Supply-side oil price shocks have little impact on inflation and international competitiveness but condition the monetary policy. Neglecting such influence in the past may have resulted in an excessively conservative monetary policy.
Journal: The Journal of International Trade & Economic Development
Pages: 907-933
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1762710
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1762710
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Template-Type: ReDIF-Article 1.0
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Effect of economic integration on sectorial value added in sub–saharan Africa: Does financial development matter?
Abstract: 
 The need for higher sectorial output for enhanced structural transformation has long been acknowledged in the literature, with economic integration touted as one of the ways of spurring sectorial value added. However, recent studies have been less informative in examining how integration influences sectorial output, given the narrow focus of trade and financial integration measures. More tellingly, whether countries domestic financial development mediates the impact of integration on sectorial value added is yet to be explored. This study, therefore, re-engages the literature by investigating the integration–sectorial output linkage using comprehensive measures of integration and financial development. By employing data from 28 sub–Saharan African countries from 1985 to 2015, we find that higher economic integration spurs sectorial value added with robust impact in the industrial sector. This effect holds albeit disproportionately when economic integration is disaggregated into its various forms with the effect of trade integration consistently higher relative to financial integration. Further evidence shows that improved financial development significantly increases the output–enhancing effect in the industrial sector with a weak magnifying role in the agricultural and service sectors.
Journal: The Journal of International Trade & Economic Development
Pages: 934-951
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1767682
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1767682
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Template-Type: ReDIF-Article 1.0
Author-Name: Hamza Almassri
Author-X-Name-First: Hamza
Author-X-Name-Last: Almassri
Author-Name: Huseyin Ozdeser
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ozdeser
Author-Name: Andisheh Saliminezhad
Author-X-Name-First: Andisheh
Author-X-Name-Last: Saliminezhad
Title: Does financial development promote growth in Kuwait? time- and frequency- domain causality testing
Abstract: 
 The present study endeavors to explore the dynamic causal relationship between economic growth and financial development in Kuwait, covering the time span between 1991 and 2017. Based on the objective of presenting robust results in relation to the research focus, a combination of time and frequency-domain methodologies has been applied. Using the Toda–Yamamoto and the Fourier Toda–Yamamoto time-domain techniques, no causal direction is found through the former test, while the causality flowing from financial development to economic growth is demonstrated by the latter. Nevertheless, the spectral causality test developed by Breitung and Candelon [(2006). “Testing for short- and long-run causality: A frequency-domain approach.” Journal of Econometrics 132 (2): 363–378. https://doi.org/10.1016/j.jeconom.2005.02.004] gives a more thorough overview of the dynamic causal relationships because it allows the temporary and permanent movements in the linkages between variables to be differentiated. The findings show proof of a bidirectional causality between financial development and economic growth. Our findings highlight the emphasis on covering the frequency causality to provide greater insight into the interrelationship between the variables under consideration.
Journal: The Journal of International Trade & Economic Development
Pages: 952-972
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1769711
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1769711
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Template-Type: ReDIF-Article 1.0
Author-Name: Ted M. Hayduk
Author-X-Name-First: Ted M.
Author-X-Name-Last: Hayduk
Title: Do the rich get richer? Exploring disparate effects of hosting sport mega events on high technology exports for developed and developing nations
Abstract: 
 Plenty of research has investigated the relationship between exports and economic growth. Because positive linkages are regarded as situational, research investigated a range of covariates that could moderate the relationship. One variable that has received scant attention is whether or not an economy hosted a mega sport event (MSE). MSEs spur massive technological projects that must be undertaken to prepare the locale. Three characteristics of MSEs make them of interest: they require significant influxes of scarce resources, additional rents from disrupted markets spillover to non-event contexts, and MSEs’ international scale provides opportunities for cross-border relationships. The analysis investigates the effect of a MSE on host nations’ high technology exports (HTX). Results suggest that hosting a MSE was generative of HTX for Developed nations, but not for Developing nations. This holds implications for (1) academics seeking to develop theories supporting a linkage between MSEs and entrepreneurial rents, and (2) practitioners seeking to develop optimal trade relationships.
Journal: The Journal of International Trade & Economic Development
Pages: 973-994
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1782973
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1782973
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Template-Type: ReDIF-Article 1.0
Author-Name: Gang Wu
Author-X-Name-First: Gang
Author-X-Name-Last: Wu
Author-Name: Lianyue Feng
Author-X-Name-First: Lianyue
Author-X-Name-Last: Feng
Author-Name: Mihaela Peres
Author-X-Name-First: Mihaela
Author-X-Name-Last: Peres
Author-Name: Jiali Dan
Author-X-Name-First: Jiali
Author-X-Name-Last: Dan
Title: Do self-organization and relational embeddedness influence free trade agreements network formation? Evidence from an exponential random graph model
Abstract: 
 The rapid development of free trade agreements (FTAs) has made FTA networks an important aspect of the global economic ecosystem and governance system. This study analyzes the network properties and its evolutionary process using data for 193 economies from 1965 to 2018 and applies the Exponential Random Graph Model (ERGM) and temporal Exponential Random Graph Model (TERGM) to made empirical tests. The work aims to clarify the effect of self-organization and relational embeddedness on FTA network formation and evolution. Our findings several conclusions: (I) The FTA networks tend to cluster with a growing density by self-organization – a FTA’s partners are more likely to be partners. (II) The formation and evolution of the FTA networks exhibits degree centrality and population Matthew effect. Economies with more FTA partners or population are more likely to sign FTAs with others. (III) Economies show obvious economic homogeneity and population heterogeneity in choosing FTA partners. (IV) The formation and evolution of FTA networks is significantly embedded in the international trade network, historical colonial network, and geographic contiguity network.
Journal: The Journal of International Trade & Economic Development
Pages: 995-1017
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1784254
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1784254
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Template-Type: ReDIF-Article 1.0
Author-Name: Armand Fouejieu
Author-X-Name-First: Armand
Author-X-Name-Last: Fouejieu
Author-Name: Ratna Sahay
Author-X-Name-First: Ratna
Author-X-Name-Last: Sahay
Author-Name: Martin Cihak
Author-X-Name-First: Martin
Author-X-Name-Last: Cihak
Author-Name: Shiyuan Chen
Author-X-Name-First: Shiyuan
Author-X-Name-Last: Chen
Title: Financial inclusion and inequality: A cross-country analysis
Abstract: 
 In the context of increasing economic inequality, linkages between finance and the distribution of wealth and income have attracted considerable attention. This paper examines the relationships between access to and use of financial services – financial inclusion – and economic inequality. Building on new dataset on availability and use of financial services, the analysis provides empirical estimates of the impact of financial inclusion on inequality, and explores potential nonlinearities in this relationship by highlighting the role of the prevailing macroeconomic and financial conditions. The paper also sheds light on financial inclusion gender gaps and investigates how disproportionate exclusion of women from usage of financial services affects income inequality. Finally, the study provides proxies for measuring extreme inequality, and examines the linkages between those variables and financial inclusion.
Journal: The Journal of International Trade & Economic Development
Pages: 1018-1048
Issue: 8
Volume: 29
Year: 2020
Month: 11
X-DOI: 10.1080/09638199.2020.1785532
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1785532
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Template-Type: ReDIF-Article 1.0
Author-Name: Duong Lam Anh Tran
Author-X-Name-First: Duong Lam Anh
Author-X-Name-Last: Tran
Title: Effect of international trade on wage inequality with endogenous technology choice
Abstract: 
 This paper investigates how trade openness affects wage inequality within and between trading countries under a new framework that incorporates the endogenous technology choice assumption. This assumption implies that as well as making a labor choice, the firms in our model simultaneously choose to adopt different technology compositions, rather than simply utilizing the standard constant technology, as assumed in most previous researches. Theoretically, we find that the endogenous technology choice partially absorbs the negative effect of the unskilled-skilled labor supply ratio on the relative wage within a country. Furthermore, compared with the standard constant technology model, the calibration of the new framework using data from 52 countries yields qualitatively and quantitatively different results for the impacts of transport costs on the relative wage between the two countries. Specifically, there are cases in which this difference generates contradictory interpretations of the effect of a transport cost reduction on wage inequality. For several pairs of countries, the wage differential between two countries becomes more evident in response to trade openness in the standard constant technology model, whereas in the endogenous technology choice model, the gap becomes narrower.
Journal: The Journal of International Trade & Economic Development
Pages: 1-26
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1813795
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1813795
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Template-Type: ReDIF-Article 1.0
Author-Name: Mery Patricia Tamayo Plata
Author-X-Name-First: Mery Patricia
Author-X-Name-Last: Tamayo Plata
Author-Name: Cristian Camilo Chica Castaño
Author-X-Name-First: Cristian Camilo
Author-X-Name-Last: Chica Castaño
Author-Name: Gustavo Javier Canavire-Bacarreza
Author-X-Name-First: Gustavo Javier
Author-X-Name-Last: Canavire-Bacarreza
Title: Analysis of the offshoring network: Empirical evidence of the implied comparative advantage in offshoring
Abstract: 
 Using a measure of the volume of offshoring conducted by 62 countries, the intrinsic properties of the global offshoring network are analyzed: size, density, and others. From these properties, we extract information about which countries and sectors of the economy are the main drivers of the network. We find a regularity through the network of all sectors, which we call a stylized fact, that yields an insight into the uniform trade integration of countries through time. Additionally, we construct the measure of implied comparative advantage (ICA) – proposed by Hausmann et al. (2019. Implied comparative advantage) – and empirically verify, for the offshoring conducted by these 62 countries, the hypothesis of a systematic correlation between pairs of industries across different countries. Finally, since the ICA measure is a predictor of the revealed comparative advantage for the offshoring, we verify that the ICA measure preserves the basic properties of the original offshoring network.
Journal: The Journal of International Trade & Economic Development
Pages: 27-46
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1804605
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1804605
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Template-Type: ReDIF-Article 1.0
Author-Name: Phuc Nguyen Canh
Author-X-Name-First: Phuc Nguyen
Author-X-Name-Last: Canh
Author-Name: Christophe Schinckus
Author-X-Name-First: Christophe
Author-X-Name-Last: Schinckus
Author-Name: Su Dinh Thanh
Author-X-Name-First: Su
Author-X-Name-Last: Dinh Thanh
Title: What are the drivers of shadow economy? A further evidence of economic integration and institutional quality
Abstract: 
 This article uses panel-corrected standard errors (PCSE) estimator and dynamic fixed effects autoregressive distributed lag (DFE ARDL) estimator to examine the influence of the institutional quality and economic integration on shadow economy for a global sample of 112 economies (between 2005 and 2015). Our empirical research shows that the inward foreign direct investment (FDI), trade openness, institutional quality, and shadow economy have bi-causal relationships. Notably, the results show a strong negative impact of institutional quality and FDI inflows but a weaker negative influence of trade openness on shadow economy. There is also long-run cointegration between institutional quality, economic integration with shadow economy, and heteroscedastic effects of these factors in short run- and long run. Especially, trade openness has a negative impact in both short run and long run, while FDI inflows have a negative influence in the short run but it is positive in the long run. Interestingly, the influence of the institutional quality is quite heterogeneous since the control of corruption and the rule of law have a significant negative impact in the short run, while the political stability has significant negative impact in the long run.
Journal: The Journal of International Trade & Economic Development
Pages: 47-67
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1799428
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1799428
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Template-Type: ReDIF-Article 1.0
Author-Name: Claire Giordano
Author-X-Name-First: Claire
Author-X-Name-Last: Giordano
Author-Name: Paloma Lopez-Garcia
Author-X-Name-First: Paloma
Author-X-Name-Last: Lopez-Garcia
Title: Firm heterogeneity and international trade: A cross-country analysis within the EU
Abstract: 
 By exploiting cross-country micro-aggregated CompNet data, this study investigates the main implications of firm heterogeneity for international trade of EU countries, distinguishing between old and new Member States. On the one hand, exporting firms are larger, more productive and pay higher wages than non-exporting firms, especially in new EU economies. Only the former firms are indeed able to bear export costs, which are higher in new EU countries and are related to various factors, such as the quality of the legal system, the restrictiveness of labour-market regulation and the degree of access to finance. Hence, only few enterprises actually export, and the intensity of aggregate export concentration within few firms varies across countries and sectors. On the other hand, opening to trade boosts individual firms’ productivity, via a number of channels (including GVC integration, which is particularly important for new EU countries), and also enhances allocative efficiency across firms, in turn increasing aggregate productivity growth. One of the main standard determinants of export growth, namely changes in the real effective exchange rate, impacts aggregate performance differently across countries and sectors, depending on sectoral composition and on firm characteristics, in both old and new Member States.
Journal: The Journal of International Trade & Economic Development
Pages: 68-103
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1788123
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1788123
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Template-Type: ReDIF-Article 1.0
Author-Name: P. Jithin
Author-X-Name-First: P.
Author-X-Name-Last: Jithin
Author-Name: M. Suresh Babu
Author-X-Name-First: M.
Author-X-Name-Last: Suresh Babu
Title: Does sub-sectoral FDI matter for trade in emerging economies? Evidence from nonlinear ARDL approach
Abstract: 
 Using sectoral as well as subsectoral FDI data, we explore the asymmetric effect of nonfinancial services FDI on trade in services for 24 emerging economies for the period 1999–2016. We employ the panel unit root tests and recently developed panel nonlinear autoregressive distributed lag (NARDL) model, to analyze the impacts of FDI in service and its sub-sectors on trade in services. Our results confirm the nonlinear asymmetric relationship between nonfinancial services FDI and trade in services. We find that FDI in financial services has positive and significant impacts on trade in services, which implies there exists a complementary relationship between FDI in financial services and trade in services. Concurrently, positive changes in nonfinancial services FDI have adverse effects on trade in services in the long run, which indicates the substitutability of same with trade in services. Our results also show the complementary relationship between nonfinancial services FDI and manufacturing trade.
Journal: The Journal of International Trade & Economic Development
Pages: 104-124
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1795703
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1795703
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Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Kurata
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Kurata
Author-Name: Takao Ohkawa
Author-X-Name-First: Takao
Author-X-Name-Last: Ohkawa
Author-Name: Makoto Okamura
Author-X-Name-First: Makoto
Author-X-Name-Last: Okamura
Title: A higher-cost region excessively attracts firms
Abstract: 
 This study examines the economic efficiency associated with firm location in a non-traded goods industry. This industry comprises of two segmented regions (markets) and a fixed number of potentially identical, oligopolistic firms. We consider the following two-stage game. In the first stage, firms determine the region in which they want to locate simultaneously and independently. In the second, given the pattern of firm location, every firm engages in Cournot competition in each market. If a potentially identical firm is located in a different region, the firm has a different cost function, and therefore, different fixed and marginal costs. Thus, the cost function of each firm is not firm-specific but region-specific. We define welfare as the sum of the region's social surplus, which includes consumer surplus and producer surplus. We obtain the following results. First, when only the marginal costs differ across regions, from a welfare perspective, an insufficient number of firms are located in the higher-cost region. Second, when only the fixed costs differ across regions, an excessive number of firms are located in the higher-cost region. Third, when a region has sufficiently higher fixed and marginal costs than another, an excessive number of firms are located in this region.
Journal: The Journal of International Trade & Economic Development
Pages: 125-137
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1799427
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1799427
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Template-Type: ReDIF-Article 1.0
Author-Name: Godwin Olasehinde-Williams
Author-X-Name-First: Godwin
Author-X-Name-Last: Olasehinde-Williams
Title: Is US trade policy uncertainty powerful enough to predict global output volatility?
Abstract: 
 Trade policy uncertainty is at an all-time high in the United States and continues to escalate. This paper empirically examined the ability of US trade policy uncertainty to predict global output volatility. To this end, a battery of econometric tests was employed—Toda and Yamamoto linear Granger causality test, nonparametric test for nonlinear causality, and nonlinear Granger causality test in frequency domain. Findings based on standard linear Granger causality tests suggested that US trade policy uncertainty is not a significant predictor of global output volatility. Further tests, however, showed that due to the presence of nonlinearities in the US trade policy uncertainty–global output volatility nexus, the linear Granger causality framework initially relied upon might have led to misspecification. Consequently, a nonparametric causality test was further conducted. The test results showed that in fact the US trade policy uncertainty is a significant predictor of global output volatility. To further verify the findings, the powerful frequency domain-based Granger causality test which is able to detect causality at short, medium and longer horizons was conducted. The test findings again confirmed that trade policy uncertainty emanating from the United States is a significant predictor of global output volatility.
Journal: The Journal of International Trade & Economic Development
Pages: 138-154
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1806912
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1806912
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best paper 2020
Journal: The Journal of International Trade & Economic Development
Pages: 1-1
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638199.2020.1859067
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1859067
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephan Klasen
Author-X-Name-First: Stephan
Author-X-Name-Last: Klasen
Author-Name: Inmaculada Martínez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martínez-Zarzoso
Author-Name: Felicitas Nowak-Lehmann
Author-X-Name-First: Felicitas
Author-X-Name-Last: Nowak-Lehmann
Author-Name: Matthias Bruckner
Author-X-Name-First: Matthias
Author-X-Name-Last: Bruckner
Title: Does the designation of least developed country status promote exports?
Abstract: 
 In this paper we examine to what extent developing countries export more as a result of having the official Least Developed Country (LDC) status. We estimate a gravity model of trade over the period 1973–2013, in which identification is achieved by exploiting the particularities and asymmetries of ‘inclusion’ and ‘graduation’ criteria of LDC status. As mechanisms through which LDCs might benefit, we evaluate the effectiveness of individual trade preference schemes for LDCs of the European Union, United States, Canada, Japan, Australia, New Zealand, Norway, and Turkey and the impact of LDC status on exports. We find that first, individual trade preference regimes are not always beneficial in terms of increased export values. Export promoting effects are found for the individual schemes of some developed countries and some sectors. Second, a country’s official designation as a LDC is associated with higher aggregated exports. This is particularly the case for LDCs that export agricultural goods and light manufacturing products, including textiles and leather after 1990. Third, the positive effect of LDC status is significant and sizable even when controlling for specific trade preference schemes suggesting that there are other benefits of LDC status that play a role in promoting exports.
Journal: The Journal of International Trade & Economic Development
Pages: 157-177
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1831042
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1831042
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Template-Type: ReDIF-Article 1.0
Author-Name: Haoliang Zhu
Author-X-Name-First: Haoliang
Author-X-Name-Last: Zhu
Title: The impact of imported intermediate inputs on the skill structure of labor demand
Abstract: 
 As global value chains (GVCs) are expanding worldwide, two notable consequences have been documented during recent decades: the increased use of imported inputs for production and the rising demand for high-skilled labor relative to that for low-skilled labor. This paper aims to answer the question of how imported intermediate inputs affect the skill structure of labor demand. The traditional indicator of imported inputs for production has become unreliable with the development of GVCs. Based on the data from input-output tables, this paper uses the foreign value-added (FV) share to measure the reliance on imported inputs for production. Furthermore, the FV share is divided into different sourcing origins to estimate the responses of labor demand to the imported inputs sourced from different origins. The results confirm that the FV share reduces the cost shares of all skill levels of domestic labor. Specifically, the FV share contributes more to the decrease in the demand for medium-skilled labor. Moreover, the FV originating from advanced and developing countries exerts different effects on the demand for domestic labor. Finally, the impact of imported inputs on labor demand varies when different indicators are used.
Journal: The Journal of International Trade & Economic Development
Pages: 178-202
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1825776
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1825776
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Template-Type: ReDIF-Article 1.0
Author-Name: Olufemi Adewale Aluko
Author-X-Name-First: Olufemi Adewale
Author-X-Name-Last: Aluko
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Author-Name: Michael Offy Atagbuzia
Author-X-Name-First: Michael Offy
Author-X-Name-Last: Atagbuzia
Title: On the causal nexus between FDI and globalization: Evidence from Africa
Abstract: 
 We pioneer empirical investigation into the causal relationship between foreign direct investment (FDI) and globalization in Africa with the aid of the Dumitresu-Hurlin panel Granger causality test. Using a panel dataset of 50 countries for the period 1996–2016, we find evidence of unidirectional causality from globalization to FDI. Considering the dimensions of globalization, we find evidence of unidirectional causality from social and political globalization to FDI while, in the case of economic globalization, the direction of causality moves from FDI. However, at the country level, there are substantial variations in terms of the causal relations. Thus, making policies regarding FDI–globalization should be treated with caution as one–size–does–not–fit all given the differential causal nexuses in Africa.
Journal: The Journal of International Trade & Economic Development
Pages: 203-223
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1823460
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1823460
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Template-Type: ReDIF-Article 1.0
Author-Name: Athanasia Stylianou Kalaitzi
Author-X-Name-First: Athanasia Stylianou
Author-X-Name-Last: Kalaitzi
Author-Name: Trevor William Chamberlain
Author-X-Name-First: Trevor William
Author-X-Name-Last: Chamberlain
Title: The validity of the export-led growth hypothesis: some evidence from the GCC
Abstract: 
 This study investigates the validity of the export-led growth hypothesis (ELG) in five GCC countries, namely, Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates. The study uses an augmented production function and annual time series data over the period 1975-2016. For the estimation of the models, the Johansen cointegration test is employed to test the existence of a long-run relationship between growth and exports. In addition, the multivariate Granger causality test in a vector autoregressive model framework and a modified version of the Wald test are applied to examine the direction of the short-run and long-run causality respectively. The empirical results provide evidence to support the validity of the ELG hypothesis in the short-run for the UAE, while the converse is true for Bahrain. In addition, a bi-directional causality exists between exports and growth in the case of Kuwait. In the long-run, the validity of the ELG is confirmed in the case of Bahrain, while economic growth causes exports in the case of Kuwait and Saudi Arabia.
Journal: The Journal of International Trade & Economic Development
Pages: 224-245
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1813191
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1813191
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Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Godwin Olasehinde-Williams
Author-X-Name-First: Godwin
Author-X-Name-Last: Olasehinde-Williams
Author-Name: Ifedolapo Olanipekun
Author-X-Name-First: Ifedolapo
Author-X-Name-Last: Olanipekun
Title: Financial systems, regulatory quality, and economic growth
Abstract: 
 This study examined symmetric and asymmetric causal relationships among financial systems, regulatory quality, and economic performance in selected African countries. The patterns of causality and impulse responses were found to vary across the selected countries, and the following were confirmed: symmetric demand-following, symmetric supply-leading, symmetric feedback, and neutrality hypotheses. Also confirmed were negative and positive demand-following hypotheses, negative and positive supply-leading hypotheses, and negative and positive feedback hypotheses. Overall, our recommendation is that in cases where supply-leading hypothesis is confirmed, policy target should be financial development so as to either stimulate economic growth or prevent economic decline, whereas in cases where demand-following hypothesis is confirmed, emphasis should be placed on growth-enhancing policies in order to either achieve financial development or prevent crisis in the financial system. We also argue that the quality of regulation plays an important role in the finance-growth nexus as it has a mediating effect on both the real and financial sectors. We further argue that it is important to consider asymmetric dynamics when testing causality in finance-growth relationships. It is possible that the economy (financial system) would react differently to changes in financial system (economy), depending on whether the changes are positive or negative.
Journal: The Journal of International Trade & Economic Development
Pages: 246-274
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1847172
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1847172
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Template-Type: ReDIF-Article 1.0
Author-Name: Osama Elsalih
Author-X-Name-First: Osama
Author-X-Name-Last: Elsalih
Author-Name: Kamil Sertoglu
Author-X-Name-First: Kamil
Author-X-Name-Last: Sertoglu
Author-Name: Mustafa Besim
Author-X-Name-First: Mustafa
Author-X-Name-Last: Besim
Title: Comparative advantage of crude oil production:evidence from 28 oil-producing countries
Abstract: 
 This study computed the comparative advantage (CA) of 28 oil-producing countries in crude oil over the period 1990–2016 using Normalised Revealed Comparative Advantage (NRCA) index and applied a Panel ARDL model to investigate the determinants of the CA. The results of the NRCA index indicated that not all the sampled 28 countries have a CA in crude oil production. The Panel econometric estimation revealed that in the long run, all the investigated explanatory variables are fundamental determinants of the CA of crude oil. Specifically, crude oil price (COP), a daily average of crude oil production (DAP), and institutional quality (IQ) contribute significantly e to increase in the CA of crude oil, while higher domestic demand for crude oil (DDO) and proven reserve (PR) decrease the CA. The negative effect of PR seems to align with the philosophy of scarcity rent. In the short run, the effects of COP and ADP remain the same, while PR, DDO, and IQ have insignificant effect. The Panel-causality results detected a feedback effect between the NRCA and all the explanatory variables.
Journal: The Journal of International Trade & Economic Development
Pages: 275-294
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1850846
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1850846
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Template-Type: ReDIF-Article 1.0
Author-Name: Yohanna Panshak
Author-X-Name-First: Yohanna
Author-X-Name-Last: Panshak
Author-Name: Irfan Civcir
Author-X-Name-First: Irfan
Author-X-Name-Last: Civcir
Author-Name: Huseyin Ozdeser
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ozdeser
Title: Is the Nigerian economy balance-of-payments constrained? Empirical evidence from multi-sectoral model with intermediate imports
Abstract: 
 This paper seeks to determine Nigeria’s long-run growth path using a multi-sectoral version of the balance of payment constrained growth model from 1981 to 2016. It particularly contends that the actual growth of an economy is highly connected to sectoral differences in elasticities of income of tradable goods produced in the economy. The autoregressive distributed lag model (ARDL) approach is employed to obtain the required elasticities for the determination of the equilibrium growth rate. In line with research expectations, the first outcome of the study reveals that while, machinery and equipment turned out with the highest income elasticity; animal, fats and vegetable products was the lowest. This suggests that transition from primary production to the production of products of hi-tech products is necessary for growth. Second, high reliance on intermediate imports with high income elasticity could harm growth in the long run.
Journal: The Journal of International Trade & Economic Development
Pages: 295-318
Issue: 2
Volume: 30
Year: 2021
Month: 02
X-DOI: 10.1080/09638199.2020.1851289
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1851289
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Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Hatzigeorgiou
Author-X-Name-First: Andreas
Author-X-Name-Last: Hatzigeorgiou
Author-Name: Magnus Lodefalk
Author-X-Name-First: Magnus
Author-X-Name-Last: Lodefalk
Title: A literature review of the nexus between migration and internationalization
Abstract: 
 Protectionism and anti-globalization tides have been rising already before the COVID-19 pandemic, with Brexit and the China-U.S. trade war, as two examples. A continued disruption to global trade, investment and value chains could worsen global development. Economic recovery will require restoring firms’ ability to trade, offshore and invest globally. To achieve this, it will be useful to understand the role of migration for foreign trade, investment and other aspects of internationalization. In this paper we review and discuss over 100 papers published about migrants’ roles on international trade, foreign direct investment and offshoring. Although the evidence suggests that migration facilitates trade and internationalization, we also note substantial gaps and inconsistencies in the existing literature. The aim of this paper is to encourage further research and assist policymakers in their efforts to promote economic recovery including internationalization.
Journal: The Journal of International Trade & Economic Development
Pages: 319-340
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2021.1878257
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1878257
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Template-Type: ReDIF-Article 1.0
Author-Name: Veli Yilanci
Author-X-Name-First: Veli
Author-X-Name-Last: Yilanci
Author-Name: Esra N. Kilci
Author-X-Name-First: Esra N.
Author-X-Name-Last: Kilci
Title: The Feldstein-Horioka puzzle for the Next Eleven countries: A panel data analysis with Fourier functions
Abstract: 
 The main objective of this paper is to empirically investigate the Feldstein-Horioka puzzle for the Next Eleven (N-11), which are Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey, and Vietnam, employing using panel data techniques that allow structural breaks through Fourier functions. We also introduce a new panel causality test to the literature that allows structural changes via Fourier functions. In the empirical section of the study, we first test the stationarity of gross domestic savings and gross capital formation levels of N-11 countries over 1990–2017 using the Fourier CIPS Test and find that the series are non-stationary. Following this, we examine the long-run relationship between the variables using the panel Fourier cointegration test. Having found a cointegration between the variables, we estimate the long-run coefficients employing the panel Augmented Mean Group. Finally, we analyze the causality relationship between the variables by using a panel Fourier causality test. Our findings support the evidence of the validity of the Feldstein-Horioka puzzle in the N-11 countries.
Journal: The Journal of International Trade & Economic Development
Pages: 341-364
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2021.1879901
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1879901
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Template-Type: ReDIF-Article 1.0
Author-Name: Syeda Tamkeen Fatima
Author-X-Name-First: Syeda Tamkeen
Author-X-Name-Last: Fatima
Title: Globalization and labor demand elasticities: Do trading partners matter
Abstract: 
 This paper uses industrial level data across 41 developing and emerging economies over the period of 1993–2013, to analyze the impact of globalization on the elasticity of demand for labor. The use of both import penetration ratios and export intensity in our model allows for assessment of relative effectiveness of exports vis à vis imports in influencing the labor elasticities. Furthermore, the disintegration of exports and imports according to their trading partners helps explore a novel source of heterogeneity in labor elasticity originating as a result of trading relationship with developed and developing world. Using system-GMM approach, our results reveal that both exports and imports make labor demand more elastic, with imports leaving the labor demand more vulnerable to wage changes. Trading with developing countries renders labor demand more elastic and that too with respect to low-tech or labor intensive products, while trading with developed countries poses no effect. Overall, the results point towards developing countries encouraging greater exporting and importing ties with developed world to ease its impact on the elasticity of demand for labor. However, trading with developing countries need not be suspended rather labor protection programs need to be in place to counter any consequent adverse effects.
Journal: The Journal of International Trade & Economic Development
Pages: 365-383
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2020.1852302
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1852302
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Template-Type: ReDIF-Article 1.0
Author-Name: Fida Karam
Author-X-Name-First: Fida
Author-X-Name-Last: Karam
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: On women participation and empowerment in international trade: Impact on trade margins in the MENA region
Abstract: 
 This paper investigates the contribution of female labor participation as well female ownership/management to trade margins using firm-level data for 18 manufacturing and services sectors in eight MENA countries for 2013. This topic is innovative, and critical for the MENA region where female participation in the export sector is shy, at a time the region is looking for new sources of competitiveness to boost its exports. Our results show that first, female labor participation has a positive a significant impact on both the probability of export and export volume, with the effect being independent of the size of the firm. Female labor participation matters in traditional sectors where the MENA region has a comparative advantage. Second, while the effect of female ownership or management is not significant on trade margins, female management/ownership exerts a positive effect on the probability of large firms to export. This positive effect is mainly driven by female ownership and not management, and thus sheds light on the potential importance of female empowerment in international trade. Third, the effect of some regulatory barriers on exports is more pronounced for a female-owned/managed firm, with respect to a men-owned/managed firm.
Journal: The Journal of International Trade & Economic Development
Pages: 384-406
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2020.1861067
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1861067
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Template-Type: ReDIF-Article 1.0
Author-Name: Yoshimichi Murakami
Author-X-Name-First: Yoshimichi
Author-X-Name-Last: Murakami
Title: Trade liberalization and wage inequality: Evidence from Chile
Abstract: 
 This study analyzes the impacts of further tariff reductions resulting from the proliferation of regional trade agreements on wage inequality between skilled and unskilled workers in Chile in the 2000s. I match panel data on industry-level effective tariff rates and other industry variables calculated from plant-level microdata to pooled individual cross-section data from national household surveys at the industry level. Based on this unique data set, I estimate the impacts of effective tariffs on workers’ wages directly in one stage. I find that a reduction in effective tariffs on final goods leads to an increase in industry wage and skill premiums. Moreover, the impact on the industry skill premiums is larger for skilled workers employed in large-sized firms. Therefore, the findings indicate that increased import competition due to reductions in output tariffs leads to skill upgrading within industries, thereby increasing demand for skilled workers. The results are robust to the possible endogeneity of effective tariffs and the inclusion of industry-level productivity.
Journal: The Journal of International Trade & Economic Development
Pages: 407-438
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2020.1871502
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1871502
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Template-Type: ReDIF-Article 1.0
Author-Name: Martina Aronica
Author-X-Name-First: Martina
Author-X-Name-Last: Aronica
Author-Name: Giorgio Fazio
Author-X-Name-First: Giorgio
Author-X-Name-Last: Fazio
Author-Name: Davide Piacentino
Author-X-Name-First: Davide
Author-X-Name-Last: Piacentino
Title: SMEs' heterogeneity at the extensive margin and within the intensive margin of trade
Abstract: 
 In this paper, we contribute to the literature on firm-heterogeneity and trade, by looking not only at the firm-level determinants of trade participation (i.e. extensive margin) but also at differences between firms with different levels of trade intensity (i.e. intensive margin). Further, we compare firms that are born ‘local’ and display different scales of international exposure to firms that are born ‘global’, i.e. access international markets soon after their birth. Using a large World Bank dataset of SMEs from 112 countries and qualitative dependent variable models, our analysis uncovers the heterogeneity of SMEs not only at the extensive margin but also within the intensive margin of trade. Born local and born global firms present different characteristics.
Journal: The Journal of International Trade & Economic Development
Pages: 439-467
Issue: 3
Volume: 30
Year: 2021
Month: 04
X-DOI: 10.1080/09638199.2021.1875024
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1875024
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Template-Type: ReDIF-Article 1.0
Author-Name: Désiré Avom
Author-X-Name-First: Désiré
Author-X-Name-Last: Avom
Author-Name: Brice Kamguia
Author-X-Name-First: Brice
Author-X-Name-Last: Kamguia
Author-Name: Henri Njangang
Author-X-Name-First: Henri
Author-X-Name-Last: Njangang
Title: Understand growth episodes in Sub-Saharan Africa: Do exogenous shocks matters?
Abstract: 
 This paper analyzes the effects of exogenous shocks on long-term growth. Additionally, it analyzes episodes of growth acceleration and reversal in 33 sub-Saharan Africa countries over the period 1980–2016. Fixed effects and the generalized method of moments are used to assess the effects of exogenous shocks on long-term growth. The results show that the terms of trade, remittances, and world demand improve long-term growth, while aid reduces it. Growth acceleration and reversal episodes are identified using an improved variant of the filter developed by Hausmann et al. (2005. “Growth Accelerations.” Journal of Economic Growth 10: 303–329). We further used a probit model to evaluate how exogenous shocks affect both growth episodes. Our results show that a favorable shock on the terms of trade, foreign aid and world demand increases the probability of acceleration, while an unfavorable shock on the terms of trade, remittances and world demand increases the probability of a growth reversal. Moreover, we find that economic and political reforms precede growth accelerations. Finally, the results show that growth reversals are associated with higher inflation, lower domestic credit, and civil wars.
Journal: The Journal of International Trade & Economic Development
Pages: 596-624
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2021.1885477
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1885477
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Template-Type: ReDIF-Article 1.0
Author-Name: Dang Luu Hai
Author-X-Name-First: Dang
Author-X-Name-Last: Luu Hai
Title: Aid for trade and export sophistication in recipient countries
Abstract: 
 This study investigates the effects of Aid for Trade (AfT) on the sophistication level of recipient countries’ export baskets. The results indicate that total AfT inflows do not benefit the export sophistication. AfT for trade policy and regulations seems to be the only type of AfT that are found to be effective in low-income countries with a real GDP per capita of less than USD 3047.72 and the poorer the recipient country the greater the positive impact on export sophistication. In contrast, the effect of AfT for economic infrastructure seems to be increasing in per capita income. The positive and negative significant effects of AfT for economic infrastructure are observed for countries with real GDP per capita above USD 29,542.64 and below USD 2558.02, respectively. Otherwise, there are no significant impacts of these two categories on export sophistication. AfT dedicated to building productive capacity exerts a negative impact on the export sophistication at the sectoral level.
Journal: The Journal of International Trade & Economic Development
Pages: 530-548
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2021.1879900
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1879900
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Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Welfare implications of solving the distance puzzle: global evidence from the last two centuries
Abstract: 
 This paper theoretically shows that changes in the distance elasticity of trade can be connected to welfare changes that depend on bilateral distance measures and expenditure shares of countries. Empirical results based on international and domestic trade data from the last two centuries show that the negative effects of distance on trade have increased over time when zero trade observations are ignored in inconsistent OLS estimations, confirming the distance puzzle in the literature. The corresponding welfare implications suggest that the world economy has experienced a cumulative welfare loss (about 
 $ 81\% $ 81%) due to this puzzle in the last two centuries. When the puzzle is solved by considering zero trade observations in PPML estimations, the tables turn such that there are significant welfare gains from trade (about 
 $ 58\% $ 58%) during the same period due to the decreasing negative effects of distance on trade over time. Welfare gains from further reductions in the negative effects of distance are investigated as well, suggesting significant potential gains from trade in the future.
Journal: The Journal of International Trade & Economic Development
Pages: 469-483
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2020.1863450
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1863450
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Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Munasib
Author-X-Name-First: Abdul
Author-X-Name-Last: Munasib
Author-Name: Devesh Roy
Author-X-Name-First: Devesh
Author-X-Name-Last: Roy
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Title: Differential impact of the Great Recession on foreign and domestic firms in China: Did processing trade play a role in export performance?
Abstract: 
 Using firm-level transaction records from the proprietary Chinese Customs data we estimate differential impacts of the Great Recession (GR) of 2008–2009 on exports of private domestic firms (PDFs) and foreign invested firms (FIFs). We exploit the longitudinal nature of the data spanning almost a decade (2003–2011), as well as product level details available in the customs data, to establish the links. We identify processing trade intensity as one possible mechanism behind the change in exports due to the GR, as well as the differentiated recovery across firm types in its aftermath. Prior to the GR, compared to the PDFs, the FIFs not only accounted for the larger share of China’s exports but were also relatively more involved with processing trade. Subsequently, it seems that the firms with greater processing trade intensity were affected more due to GR. We argue that in a comparative sense, processing trade of the FIFs captures the transmission of the negative demand shocks of the GR.
Journal: The Journal of International Trade & Economic Development
Pages: 484-511
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2020.1864455
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1864455
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Template-Type: ReDIF-Article 1.0
Author-Name: Zera Zuryana Idris
Author-X-Name-First: Zera Zuryana
Author-X-Name-Last: Idris
Author-Name: Normaz Wana Ismail
Author-X-Name-First: Normaz Wana
Author-X-Name-Last: Ismail
Author-Name: Saifuzzaman Ibrahim
Author-X-Name-First: Saifuzzaman
Author-X-Name-Last: Ibrahim
Author-Name: Hanny Zurina Hamzah
Author-X-Name-First: Hanny Zurina
Author-X-Name-Last: Hamzah
Title: The impact of high-technology trade on employment
Abstract: 
 This paper aims to empirically examine the impact of high-technology trade on employment. A dynamic labour demand equation is employed to investigate the impact of high-tech trade on employment in 20 high-tech exporting countries. Using data from 2007 to 2016, this study highlights some evidence on the negative relationship between high-tech trade and employment. This paper argues the development towards high-tech trade should be accompanied by appropriate policy measures to lessen the employment effect and to ensure the benefit of growth is well-distributed among all segments of the labour market.
Journal: The Journal of International Trade & Economic Development
Pages: 512-529
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2020.1852301
File-URL: http://hdl.handle.net/10.1080/09638199.2020.1852301
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Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Bansah
Author-X-Name-First: Marcus
Author-X-Name-Last: Bansah
Author-Name: Mohammed Mohsin
Author-X-Name-First: Mohammed
Author-X-Name-Last: Mohsin
Title: Welfare implications of trade liberalization when revenue matters
Abstract: 
 Some empirical studies have shown that many developing economies were unable to recover lost trade revenue from domestic taxes after implementing trade liberalizing policies. Ignoring the fiscal cost of trade liberalization when government spending is not completely wasteful may lead to misleading welfare estimates. We address these concerns by developing a model in which government spending augments the production function, enabling it to account for the role of revenue and its impact on welfare. The model is calibrated to capture the features of the Ghanaian economy. We find significant but lower welfare effects of trade liberalization when government spending on infrastructure plays an important role in the production process. The lower welfare impact of trade liberalization is explained by a decline in infrastructure spending caused by shortfalls in revenue emanating from tariff cuts. The implication of the study is that there are further welfare gains to trade liberalization but such gains are significantly reduced when fiscal costs are high. The role of revenue matters in evaluating the welfare implications of trade liberalization.
Journal: The Journal of International Trade & Economic Development
Pages: 574-595
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2021.1883722
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1883722
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Template-Type: ReDIF-Article 1.0
Author-Name: Yoshihiro Hamaguchi
Author-X-Name-First: Yoshihiro
Author-X-Name-Last: Hamaguchi
Title: Polluting firms' location choices and pollution havens in an R&D-based growth model for an international emissions trading market
Abstract: 
 We investigate the effect of grandfathered permit allocation and abatement productivity for carbon emissions on growth rate, firms' location choices, foreign direct investment, and total pollution in an agglomeration model with innovation. We consider grandfathered permit allocation as potential rent. We find a distribution effect wherein increasing (decreasing) permit price raises (reduces) firms' rent, thereby stimulating (inhibiting) R
 $ \& $ &D and the growth rate. Decreasing the permit level (improving abatement productivity) prompts firms to locate from the South (North) to the North (South) in the long run via this effect. Thus, our results imply that improving abatement productivity leads to support of the pollution haven hypothesis.
Journal: The Journal of International Trade & Economic Development
Pages: 625-642
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2021.1889644
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1889644
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Template-Type: ReDIF-Article 1.0
Author-Name: Doan Ngoc Thang
Author-X-Name-First: Doan Ngoc
Author-X-Name-Last: Thang
Author-Name: Le Thanh Ha
Author-X-Name-First: Le Thanh
Author-X-Name-Last: Ha
Author-Name: Hoang Phuong Dung
Author-X-Name-First: Hoang Phuong
Author-X-Name-Last: Dung
Author-Name: Trinh Quang Long
Author-X-Name-First: Trinh Quang
Author-X-Name-Last: Long
Title: On the relationship between rules of origin and global value chains
Abstract: 
 This paper uses a modified gravity model to investigate the effects of rules of origin (RoO) on 61 countries’ participation in global value chains (GVCs) during the period 2005–2015. We define GVC participation as the value added contained in exports, looking both backward and forward from a reference nation. RoO are heterogeneous in the degrees of restrictiveness that govern the origin of products to obtain preferential tariff treatment. The empirical results show negative relationships between RoO’s restrictiveness and both backward and forward participation, and these adverse effects become more prominent when we control the endogeneity bias. However, the implementation of regime-wide RoO, including diagonal cumulation and de minimis, can reduce these negative effects. The mitigating roles of both regime-wide rules are quite similar in terms of magnitude, which is significant as the current literature on the liberalization of RoO only focuses on the role of cumulation. Our findings suggest that in order to upgrade participation in international production networks, a country should adopt a less restrictive and regime-wide RoO in free trade agreement (FTA) negotiations.
Journal: The Journal of International Trade & Economic Development
Pages: 549-573
Issue: 4
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638199.2021.1880467
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1880467
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Template-Type: ReDIF-Article 1.0
Author-Name: Munmi Saikia
Author-X-Name-First: Munmi
Author-X-Name-Last: Saikia
Title: Foreign direct investment and institutions: A case of Indian firms
Abstract: 
 The present study examines the effect of institutions on the location choice of foreign direct investment (FDI) using a novel dataset for bilateral FDI of India. My study follows prior works to argue that institutions have a positive association with FDI. The study considers three widely used institutional pillars namely state judiciary system, bureaucracy system, and property right protection to examine the effect of institutions on location choice of FDI. The study extends prior works focusing on the influence of firms’ heterogeneity on the connection between institutions and FDI using the gravity model. The study finds that institutions have a significant and positive impact on the location choice of FDI. The results reveal that institution of developed regions is positively associated with FDI. But surprisingly, there is a negative association between institutions of the developing region and FDI. I put the firms into four separate bins according to their size to capture the firms’ heterogeneity. Results show that large-sized firms are more likely to invest in countries with good institutions.
Journal: The Journal of International Trade & Economic Development
Pages: 725-738
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1894217
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1894217
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:5:p:725-738




Template-Type: ReDIF-Article 1.0
Author-Name: David M. Kemme
Author-X-Name-First: David M.
Author-X-Name-Last: Kemme
Author-Name: Yerkezhan Akhmetzaki
Author-X-Name-First: Yerkezhan
Author-X-Name-Last: Akhmetzaki
Author-Name: Bulat M. Mukhamediyev
Author-X-Name-First: Bulat M.
Author-X-Name-Last: Mukhamediyev
Title: The effects of the Eurasian Economic Union on regional foreign direct investment and implications for growth
Abstract: 
 The positive direct and indirect spillover effects of foreign direct investment on growth are often case specific and not necessarily uniform nor easily predicted. Effects of FDI due to international investment policy changes are often confounded by free trade and customs union agreements that occur simultaneously because trade may be a complement to or substitute for FDI. We review the effects of regional trade agreements on FDI and focus on the new Eurasian Economic Union (EAEU). With annual data from 1995 to 2019 for post-Soviet countries, three members, the Russian Federation, Belarus, and Kazakhstan and nine non-members, Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan, we estimate the EAEU integration effect on country FDI flows, post-2010. We control for other determinants, including infrastructure development, natural resource rents, potentially confounding trade flows, the financial crisis, sanctions against Russia and country fixed effects. The formation of the EAEU did not stimulate FDI and while GDP grew it was not associated with higher FDI. Further growth opportunities via FDI lie with relationships with countries outside the EAEU.
Journal: The Journal of International Trade & Economic Development
Pages: 643-660
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1896769
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1896769
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Template-Type: ReDIF-Article 1.0
Author-Name: Brian Mazorodze
Author-X-Name-First: Brian
Author-X-Name-Last: Mazorodze
Author-Name: Irrshad Kaseeram
Author-X-Name-First: Irrshad
Author-X-Name-Last: Kaseeram
Author-Name: Lorraine Greyling
Author-X-Name-First: Lorraine
Author-X-Name-Last: Greyling
Title: Trade and profit efficiency of manufacturing industries in South Africa
Abstract: 
 The relationship between trade and industrial performance has received a great deal of empirical attention over the past three decades. Much of this empirical attention has however focused on productivity, employment, and output growth oblivious of profit effects – the primary motive for manufacturers. Different from this literature, this paper contributes to the existing body of knowledge by testing the hypothesis that trade affects profit efficiency of manufacturing industries through its effect on technical and allocative efficiency. Using a panel stochastic frontier model based on 28 South African manufacturing industries observed between 1970 and 2016, evidence confirms a strong positive effect of export intensity on profit efficiency that operates mainly through technical efficiency. Import penetration appears to have improved allocative efficiency without having a discernible effect on profit efficiency. The former result lends empirical support to the long-standing view that outward-oriented policies have the potential to enhance industrial profit maximization while the latter result suggests that inward-oriented polices at worst promote suboptimal input allocation.
Journal: The Journal of International Trade & Economic Development
Pages: 707-724
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1893374
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1893374
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Template-Type: ReDIF-Article 1.0
Author-Name: Başak Dalgıç
Author-X-Name-First: Başak
Author-X-Name-Last: Dalgıç
Author-Name: Burcu Fazlıoğlu
Author-X-Name-First: Burcu
Author-X-Name-Last: Fazlıoğlu
Author-Name: Michael Gasiorek
Author-X-Name-First: Michael
Author-X-Name-Last: Gasiorek
Title: Does it matter where you export and does productivity rise with exporting?
Abstract: 
 Utilizing a comprehensive dataset for Turkish manufacturing firms, we analyse differentials in the post-entry effects on productivity of exporting to markets with different income levels. We employ propensity score matching techniques with multiple treatments, together with a differences-in-differences (DiD) methodology. Controlling for firm level mark-ups, we explore whether the post-entry effects on productivity are driven by changes in physical productivity. The results confirm the learning-by-exporting hypothesis, and suggest physical productivity gains, in particular for exports to high income countries as opposed to middle low-income countries, even after controlling for the composition of exports. This suggests that where a firm export does matter for productivity growth.
Journal: The Journal of International Trade & Economic Development
Pages: 766-791
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1909108
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1909108
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Template-Type: ReDIF-Article 1.0
Author-Name: Ketan Reddy
Author-X-Name-First: Ketan
Author-X-Name-Last: Reddy
Author-Name: Subash Sasidharan
Author-X-Name-First: Subash
Author-X-Name-Last: Sasidharan
Title: Financial constraints and global value chain participation: Firm-level evidence from India
Abstract: 
 This paper explores the relationship between financial constraints and firm participation in global value chains (GVC). We use a rich firm-level data belonging to the Indian manufacturing sector for the period 2001–2016. Controlling for endogeneity and sample selection bias, our empirical outcome reveals a negative impact of financial constraint on firm GVC participation. We also find that inter-firm trade credit fosters firm participation in GVCs. Our findings also highlight that firms dependent on external finance find it challenging to participate in GVCs. Further, sub-sample analysis shows a significant effect of financial constraints in the case of small firms. Finally, we find that firms that are relatively more financially constrained are more likely to become a part of GVC (GVC starters) during the study period. Our findings have strong policy implication on the lines of promoting GVC participation for Indian manufacturing firms and hence remains of interest for policymakers.
Journal: The Journal of International Trade & Economic Development
Pages: 739-765
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1900343
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1900343
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Template-Type: ReDIF-Article 1.0
Author-Name: Taoufiki Mbratana
Author-X-Name-First: Taoufiki
Author-X-Name-Last: Mbratana
Author-Name: Andrée Kenne Fotié
Author-X-Name-First: Andrée Kenne
Author-X-Name-Last: Fotié
Author-Name: Marius Claude Oyon Amba
Author-X-Name-First: Marius Claude Oyon
Author-X-Name-Last: Amba
Title: Foreign direct investment and financial development in Africa: A causality assessment in the frequency domain
Abstract: 
 Previous contributions have recognized that Foreign Direct Investment (FDI) and financial development, respectively, play a vital role in enhancing economic growth across nations. However, the causal relationship between FDI and financial development have not been sufficiently investigated in developing countries and particularly in Africa. The current paper overcomes this gap by assessing the direct causality between FDI and financial development for 47 African countries. To that end, the frequency domain Granger causality test is used to establish short (temporary) and long run (permanent) causality. The main results document evidence of permanent and temporary causality in terms of bidirectional or unidirectional links, although there are several cases of no causality between FDI and financial development indicators. The outcomes of this study invite policymakers to address issues regarding the relationship between foreign investments and financial sector from a temporal or a permanent dynamic.
Journal: The Journal of International Trade & Economic Development
Pages: 685-706
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1892164
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1892164
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:5:p:685-706




Template-Type: ReDIF-Article 1.0
Author-Name: Essotanam Mamba
Author-X-Name-First: Essotanam
Author-X-Name-Last: Mamba
Title: Role of governance in open trade policies–growth nexus in ECOWAS countries: The use of extended IV approach in panel data
Abstract: 
 The work assesses whether the effect of open trade policies-OTP on growth is dependent on the level of governance quality in the Economic Community of West African States (ECOWAS) countries. We estimate a non-linear growth equation that interacts OTP with governance. Based on the cross-sectional dependence test, we use the Driscoll–Kraay approach and mainly an extended instrumental variables-IV approach (fixed effect + IV approach also controls the endogeneity issue) to control the correlation between units. The basic regressions without interaction terms indicate that good governance itself is essential for growth while economic growth decreases with the level of OTP. The findings from the non-linear growth equation indicate that while the effect of OTP on growth increases as the institutional quality improves, it changes from statistically significant in the negative direction for bad institutional quality to statistically significant in the positive direction for better institutional quality. These findings suggest that ECOWAS countries must improve their institutional quality to increase the positive effect of OTP on growth.
Journal: The Journal of International Trade & Economic Development
Pages: 661-684
Issue: 5
Volume: 30
Year: 2021
Month: 07
X-DOI: 10.1080/09638199.2021.1889643
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1889643
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:5:p:661-684




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Brakman
Author-X-Name-First: Steven
Author-X-Name-Last: Brakman
Author-Name: Shiwei Hu
Author-X-Name-First: Shiwei
Author-X-Name-Last: Hu
Author-Name: Charles Van Marrewijk
Author-X-Name-First: Charles
Author-X-Name-Last: Van Marrewijk
Title: Urban development in China: On the sorting of skills
Abstract: 
 For advanced economies, it is a well-established stylized fact that large cities are relatively skill abundant. For emerging markets, like China, this relationship is less well established. We show, using recently developed tests, that also in China higher skills sort into larger locations. This sorting process is consistent with the comparative advantage of cities. We identify two types of spatial units (Core-Cities and Extended-Cities) and analyse sorting for three types of skills (education skills, sector skills, and occupation skills). The sorting process across cities is stronger for Core-Cities than for Extended-Cities, stronger for education skills than for sector- and occupation skills, and stronger for 2010 than for 2000. We interpret these results as an indication that investments in, for example, infrastructure and institutional liberalization (such as the relaxation of the Hukou system), stimulates sorting of higher skills in larger cities.
Journal: The Journal of International Trade & Economic Development
Pages: 793-817
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1919181
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1919181
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:793-817




Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Ali
Author-X-Name-First: Sajid
Author-X-Name-Last: Ali
Author-Name: Zulkornain Yusop
Author-X-Name-First: Zulkornain
Author-X-Name-Last: Yusop
Author-Name: Shivee Ranjanee Kaliappan
Author-X-Name-First: Shivee Ranjanee
Author-X-Name-Last: Kaliappan
Author-Name: Lee Chin
Author-X-Name-First: Lee
Author-X-Name-Last: Chin
Author-Name: Raima Nazar
Author-X-Name-First: Raima
Author-X-Name-Last: Nazar
Title: Asymmetric openness-growth nexus in 20 highly open OIC countries: Evidence from quantile-on-quantile regression approach
Abstract: 
 This study analyzes the asymmetric association between trade openness and economic growth in 20 highly open Organization of Islamic Cooperation (OIC) countries. A novel technique, quantile-on-quantile (QQ), is applied by using the data for the period 1991–2018. The results consider the mode of how quantiles of trade openness asymmetrically affect the quantiles of economic growth by giving an appropriate framework to apprehend the overall dependence structure. A positive linkage between trade openness and economic growth is found in United Arab Emirates, Malaysia, Suriname, Kuwait, Mauritania, Turkey, Tunisia, Qatar, Brunei, Morocco, Sierra Leone, Bahrain, Libya, Oman, Saudi Arabia and Albania. However, there is a negative association between trade openness and economic growth in Guinea, Guyana and Mozambique. Hence 16 out of 20 OIC countries support the trade-led growth hypothesis. These outcomes intimate that the intensity of asymmetric association in openness-growth nexus varies with countries that require individual attention and caution for governments in postulating the policies related to trade and growth.
Journal: The Journal of International Trade & Economic Development
Pages: 882-905
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1916571
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1916571
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:882-905




Template-Type: ReDIF-Article 1.0
Author-Name: Turkmen Goksel
Author-X-Name-First: Turkmen
Author-X-Name-Last: Goksel
Author-Name: Harun Ozturkler
Author-X-Name-First: Harun
Author-X-Name-Last: Ozturkler
Title: The relationship between labor productivity and number of operating firms
Abstract: 
 This paper constructs a theoretical model matching empirically observed relationships between average labor productivity and the number of operating firms. The models in the related literature which utilize CES utility function find no relationship between average labor productivity and the number of operating firms in the economy (Melitz, Marc J. [2003. “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.” Econometrica 71 (6): 1695–1725] and many versions of this model). Moreover, the models which utilize non-homothetic preferences with a numeraire good find a positive relationship between average labor productivity and the number of operating firms (Melitz, Marc, and Gianmarco I. P. Ottaviano [2008. “Market Size, Trade, and Productivity.” Review of Economic Studies 75: 295–316] and many versions of this model). However, the model developed in this paper provides a single theoretical framework that depending on the source, a rise in the average labor productivity may lead to an increase or a decrease in the number of operating firms. In line with our results, we provide empirical evidence from ten European countries for the 2008–2016 period, which shows that the correlation between these two variables is positive for some of the countries, while negative for the others.
Journal: The Journal of International Trade & Economic Development
Pages: 818-828
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1884739
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1884739
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Template-Type: ReDIF-Article 1.0
Author-Name: Çağlayan Aslan
Author-X-Name-First: Çağlayan
Author-X-Name-Last: Aslan
Author-Name: Oğuzhan Çepni
Author-X-Name-First: Oğuzhan
Author-X-Name-Last: Çepni
Author-Name: Selçuk Gül
Author-X-Name-First: Selçuk
Author-X-Name-Last: Gül
Title: The impact of real exchange rate on international trade: Evidence from panel structural VAR model
Abstract: 
 This paper investigates the importance of real exchange rates on export volumes by estimating a panel SVAR model using quarterly unbalanced panel data from 21 emerging markets over the 2005:Q1-2018:Q4 period. Although the results suggest no conclusive evidence that real exchange rate shocks do affect the export volumes in our sample of emerging markets, the responses of export volume to real exchange rate shocks are heterogeneous across countries in which commodity exporter countries, on average, have a lower response of exports to the real exchange rate movements. Furthermore, we find that while the magnitude of response of the export volumes to exchange rate shocks is positively related to exchange rate volatility, the higher export market penetration ratio helps insulate the economy from real exchange rate shocks. Overall, our results carry broad policy implications indicating that policymakers need to pay attention to the exchange rate volatility of their countries and expand their export competition in the world trade.
Journal: The Journal of International Trade & Economic Development
Pages: 829-842
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1905695
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1905695
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:829-842




Template-Type: ReDIF-Article 1.0
Author-Name: Wenzhong Ye
Author-X-Name-First: Wenzhong
Author-X-Name-Last: Ye
Author-Name: Yuxi Liu
Author-X-Name-First: Yuxi
Author-X-Name-Last: Liu
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: The effect of Confucius Institutes on Chinese outward foreign direct investment: A province-level analysis
Abstract: 
 From the perspective of cultural impetus from home country, this study examines the effects of Confucius Institutes (CIs) on outward foreign direct investment (OFDI) based on the panel data of 29 Chinese provinces from 2007 to 2016. The findings are as follows: Organizing CIs abroad has a positive and significant effect on OFDI, which can promote a province's OFDI, radiate adjacent provinces, and moderate the relationship between some factors and OFDI like opening-up and human capital; moreover, CIs have a hysteresis effect on promoting OFDI, and provinces in different regions organizing CIs abroad form a different driven force of OFDI. Chinese provinces should give full play to CIs in their OFDI.
Journal: The Journal of International Trade & Economic Development
Pages: 843-855
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1909647
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1909647
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:843-855




Template-Type: ReDIF-Article 1.0
Author-Name: Aakanksha Shrawan
Author-X-Name-First: Aakanksha
Author-X-Name-Last: Shrawan
Author-Name: Amlendu Dubey
Author-X-Name-First: Amlendu
Author-X-Name-Last: Dubey
Title: Technology intensive trade and business cycle synchronisation: Evidence from a panel threshold regression model for India
Abstract: 
 In recent years, the export baskets of developing economies have undergone a structural shift away from traditional exports towards more technology-intensive exports. The case of India, in particular, is important as the performance of Indian exports in terms of their productivity is now at par with that of developed countries. Since trade integration has significant implications for output comovements, we analyse whether this phenomenon of a structural shift in India’s intra-industry trade composition has had any impact on its business cycle synchronisation with its developing and developed trade partners. Using a panel threshold regression model, our estimates reveal that intra-industry trade in technology leads to a convergence in business cycle of India with only its developing country trade partners. Further, when the GDP per capita of the partner country is greater than the threshold estimate, we find a negative relationship between technology-intensive trade and output comovements.
Journal: The Journal of International Trade & Economic Development
Pages: 906-929
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1918224
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1918224
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:906-929




Template-Type: ReDIF-Article 1.0
Author-Name: Adelajda Matuka
Author-X-Name-First: Adelajda
Author-X-Name-Last: Matuka
Author-Name: Shuffield Seyram Asafo
Author-X-Name-First: Shuffield Seyram
Author-X-Name-Last: Asafo
Title: Effects of Services on Economic Growth in Albania: An ARDL Approach
Abstract: 
 Using annual data for the period 2000–2018, the study employed an autoregressive distributed lag (ARDL) methodology to examine the long-run cointegrating relations between service subsectors and economic growth in Albania. Results are presented both for the short run and long run. Findings indicate that the transport sector, communication and financial services have a positive impact on economic growth. However, the manufacturing sector has a negative impact. This confirms Baumol’s theory on cost disease but does not corroborate Kaldor’s theory. Furthermore, agriculture and industry stimulate the Albanian economy whilst expenditure on health have a limited impact. In addition, the Granger causality test indicates a bidirectional causality from transport, communication and financial services to GDP per capita. Lastly, our models are robust to all the conventional battery of tests.
Journal: The Journal of International Trade & Economic Development
Pages: 856-881
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1910723
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1910723
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:856-881




Template-Type: ReDIF-Article 1.0
Author-Name: Kingsley Ikechukwu Okere
Author-X-Name-First: Kingsley Ikechukwu
Author-X-Name-Last: Okere
Author-Name: Obumneke Bob Muoneke
Author-X-Name-First: Obumneke Bob
Author-X-Name-Last: Muoneke
Author-Name: Favour Chidinma Onuoha
Author-X-Name-First: Favour Chidinma
Author-X-Name-Last: Onuoha
Title: Symmetric and asymmetric effects of crude oil price and exchange rate on stock market performance in Nigeria: Evidence from multiple structural break and NARDL analysis
Abstract: 
 This study explores the linear and non-linear impact of Nigeria's oil price and exchange rate on stock market performance from January 1995 to December 2019 using the non-linear autoregressive distributed lag (NARDL) method. The results from the linear ARDL show a long and short-run positive relationship between the Nigerian stock market and crude oil prices while, the exchange rate show an insignificant in the long-run effect but a significant positive relationship in the short run. The non-linear ARDL front, the tests show that the impact of positive shocks in crude oil price has a significant increasing effect on stock market performance in Nigeria, while negative shocks in crude oil prices have a significant increasing effect on stock market performance. The exchange rate has an insignificant relationship with stock market performance both in short- and long-run asymmetric test. The adjustment asymmetry from the dynamic multiplier graphs shows that the response of stock market performance to a negative change in oil price is stronger than that in response to a positive change. Overall, the result provides the need to diversify investment portfolios through the international equity market, keeping a close watch on the oil price fluctuation which is of importance in formulating risk–return portfolios of stock market performance.
Journal: The Journal of International Trade & Economic Development
Pages: 930-956
Issue: 6
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638199.2021.1918223
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1918223
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:6:p:930-956




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Ho Seok
Author-X-Name-First: Jun Ho
Author-X-Name-Last: Seok
Author-Name: Hanpil Moon
Author-X-Name-First: Hanpil
Author-X-Name-Last: Moon
Title: Agricultural exports and agricultural economic growth in developed countries: Evidence from OECD countries
Abstract: 
 This study examines the validity of the export-led growth hypothesis in the context of developed countries’ agricultural sector, considering the existence of a common market among countries. Using the annual data of Organisation for Economic Co-operation and Development (OECD) countries from 1997 to 2016, we analyze the effect of agricultural exports on agricultural growth. For the comparison between developed countries with and without common markets, we create three subsamples (OECD, the European Union [EU] countries among OECD members, and the non-EU countries among OECD members). Estimation results show that agricultural exports (imports) have a positive (negative) effect on agricultural growth only in the case of the EU subsample. These results imply that access to foreign markets is important to validate the export-led growth hypothesis in the agricultural sector of developed countries.
Journal: The Journal of International Trade & Economic Development
Pages: 1004-1019
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1923780
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1923780
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Handle: RePEc:taf:jitecd:v:30:y:2021:i:7:p:1004-1019




Template-Type: ReDIF-Article 1.0
Author-Name: Yumei Lin
Author-X-Name-First: Yumei
Author-X-Name-Last: Lin
Author-Name: Shanlang Lin
Author-X-Name-First: Shanlang
Author-X-Name-Last: Lin
Author-Name: Xiaowan Wang
Author-X-Name-First: Xiaowan
Author-X-Name-Last: Wang
Author-Name: Jian Wu
Author-X-Name-First: Jian
Author-X-Name-Last: Wu
Title: Does institutional quality matter for export product quality? Evidence from China
Abstract: 
 In this study, we discuss institutional quality and export product quality within a unified framework and explore the influence of institutional quality on product export quality empirically by matching regional-level data, Chinese Industrial Enterprises Database and the China Customs Import and Export Database in the period of 2000–2011. To reflect institutional quality as comprehensively as possible, we construct an index system including six institutional factors: financial service, open-door, government intervention, corruption, property rights protection and judicial fairness. To avoid the loss of information and minimize the endogeneity of reverse causality, we take advantage of microdata of enterprise in regression. The results show that, on average, the improvement of institutional quality has a positive impact on export product quality; Compared with processing trade, export product quality of general trading enterprises is more affected by local institutional quality. Among the various factors of institutional quality, corruption and judicial fairness have the greatest impact on export product quality.
Journal: The Journal of International Trade & Economic Development
Pages: 1077-1100
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1936133
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1936133
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Template-Type: ReDIF-Article 1.0
Author-Name: Francis Ejones
Author-X-Name-First: Francis
Author-X-Name-Last: Ejones
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Author-Name: Amir Mahmood
Author-X-Name-First: Amir
Author-X-Name-Last: Mahmood
Title: Do regional trade agreements promote international trade? New empirical evidence from the East African Community
Abstract: 
 Using an extended gravity model that corrects for zero trade, endogeneity and heterogeneity, we empirically investigate whether regional trade agreements (RTAs) promote trade. The model was estimated using a comprehensive panel dataset of the East African Community (EAC) from 1990 to 2017 and applying the Poisson Pseudo-Maximum Likelihood estimator. Empirical results show that RTAs have enhanced trade within the EAC regional bloc, but the impact varied across countries and sectors. We find that RTAs have led to an increase in imports from and exports to non-bloc countries, and this impact persists after 12 years. Our empirical findings are robust to alternative model specifications. Exploiting RTAs policy implication, this paper provides new empirical evidence highlighting that promoting RTAs could promote trade in the East African Community.
Journal: The Journal of International Trade & Economic Development
Pages: 1020-1053
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1930110
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1930110
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Template-Type: ReDIF-Article 1.0
Author-Name: Sèna Kimm Gnangnon
Author-X-Name-First: Sèna Kimm
Author-X-Name-Last: Gnangnon
Title: Export product diversification, poverty and tax revenue in developing countries
Abstract: 
 The current paper has examined the effect of both export product diversification and poverty on non-resource tax revenue in developing countries. The analysis has used an unbalanced panel dataset of 111 countries over the period 1980–2014. Based on the Blundell and Bond two-step system Generalized Methods of Moments technique, the empirical analysis has shown interesting findings. Export product concentration and poverty influence negatively non-resource tax revenue over the full sample, but this effect varies across countries in the sample. Furthermore, the effect of export product diversification on non-resource tax revenue performance depends on the level of poverty. It appears that export product diversification influences positively non-resource tax revenue performance in countries that experience lower poverty rates. From a policy perspective, these findings show that policies in favour of diversifying export product baskets and reducing poverty would contribute to enhancing non-resource tax revenue performance in developing countries.
Journal: The Journal of International Trade & Economic Development
Pages: 957-987
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1919182
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1919182
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Template-Type: ReDIF-Article 1.0
Author-Name: Godwin Olasehinde-Williams
Author-X-Name-First: Godwin
Author-X-Name-Last: Olasehinde-Williams
Author-Name: Ifedola Olanipekun
Author-X-Name-First: Ifedola
Author-X-Name-Last: Olanipekun
Author-Name: Oktay Özkan
Author-X-Name-First: Oktay
Author-X-Name-Last: Özkan
Title: Foreign exchange market response to pandemic-induced fear: Evidence from (a)symmetric wild bootstrap likelihood ratio approach
Abstract: 
 This study tested whether pandemic-induced fear is a predictor of the exchange rate returns of seven major currencies – Australian dollar, Canadian dollar, Swiss franc, yuan, EURO, pound sterling, and yen. Daily data on US dollar-based exchange rate returns and the global fear index for COVID-19 pandemic for the period 10-02-2020–02-04-2021 were used. Symmetric and asymmetric wild bootstrap likelihood ratio tests were employed in testing the relationship. The symmetric test results showed that pandemic-induced fear is capable of predicting the exchange rate returns of the Swiss franc, yuan, and the EURO. Specifically, negative relationships were recorded between their returns and the global fear index for pandemics. The asymmetric test results however showed that increasing pandemic-induced fear leads to decreases in the returns of the Australian dollar, Canadian dollar, Swiss franc, yuan and EURO. Overall, this study showed that pandemic-induced fear is a predictor of exchange rate returns. It is therefore suggested that the maintenance of stability in the financial system should be treated as an integral part of policy responses designed to mitigate the adverse effects of pandemics. This way, economic agents will not be forced to move their investments to foreign currency-denominated assets due to fear of investment losses.
Journal: The Journal of International Trade & Economic Development
Pages: 988-1003
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1922490
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1922490
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Template-Type: ReDIF-Article 1.0
Author-Name: Hanane Aghasafari
Author-X-Name-First: Hanane
Author-X-Name-Last: Aghasafari
Author-Name: Milad Aminizadeh
Author-X-Name-First: Milad
Author-X-Name-Last: Aminizadeh
Author-Name: Alireza Karbasi
Author-X-Name-First: Alireza
Author-X-Name-Last: Karbasi
Author-Name: Roberto Calisti
Author-X-Name-First: Roberto
Author-X-Name-Last: Calisti
Title: CO2 emissions, export and foreign direct investment: Empirical evidence from Middle East and North Africa Region
Abstract: 
 This study aimed to investigate the relationship among CO2 emissions, exports of goods and services, and foreign direct investment (FDI) inflows in countries in the MENA region over the period 2002–2014. To that end, spatial panel simultaneous equations model based on the adjacency-based and distance-based weight matrices was used. The findings indicated that the results of spatial panel simultaneous equations with distance-based weight matrix were more fitting than those with adjacency-based weight matrix. The empirical findings approved a two-way linkage between CO2 emissions and exports and a one-way linkage between CO2 emissions and FDI inflows and also, between FDI inflows and exports. Furthermore, the existence of the spatial correlations among the CO2 emissions, exports and FDI inflows across countries was confirmed. It was further indicated that fossil fuel energy consumption was the main determinant of CO2 emissions, and accession to the WTO played a major role in enhancing exports and FDI inflows. The present study can provide new insights for policymakers and planners to not only consider the economic benefits of exporting goods and services and FDI inflows, but also attend their environmental impacts on local and neighboring countries.
Journal: The Journal of International Trade & Economic Development
Pages: 1054-1076
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1934087
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1934087
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Template-Type: ReDIF-Article 1.0
Author-Name: Fei Guo
Author-X-Name-First: Fei
Author-X-Name-Last: Guo
Author-Name: Eric Evans Osei Opoku
Author-X-Name-First: Eric Evans Osei
Author-X-Name-Last: Opoku
Author-Name: Isabel Kit-Ming Yan
Author-X-Name-First: Isabel Kit-Ming
Author-X-Name-Last: Yan
Title: The heterogeneous sectoral productivity impacts of FDI on real exchange rate
Abstract: 
 The Balassa-Samuelson effect provides a theoretical explanation for the deviation of the real exchange rate (RER) from its purchasing power parity based on the heterogeneous productivity growth in the tradable and non-tradable sectors. This paper bridges the literature on foreign direct investment (FDI) spillovers with the Balassa-Samuelson effect by theoretically and empirically showing that (1) the productivity impact of inward FDI is notably larger in the tradable sector than in the non-tradable sector, generating an appreciation effect on the RER; (2) the magnitude of heterogeneous productivity impacts of inward FDI in the tradable and non-tradable sectors is commensurate with the technological backwardness in the two sectors relative to the world leaders.
Journal: The Journal of International Trade & Economic Development
Pages: 1101-1121
Issue: 7
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638199.2021.1936135
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1936135
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Template-Type: ReDIF-Article 1.0
Author-Name: Cong Minh Huynh
Author-X-Name-First: Cong Minh
Author-X-Name-Last: Huynh
Title: Foreign direct investment and income inequality: Does institutional quality matter?
Abstract: 
 This research examines the impacts of FDI inflows, institutional quality (IQ) and their interaction on income inequality in 36 Asian countries over the period 2000–2018. Results demonstrate that FDI exacerbates income inequality, and the improvement in IQ from FDI diminishes this detrimental impact until a threshold of IQ, then beyond that FDI reduces income inequality. Meanwhile, institutional quality reduces income inequality, and this beneficial effect is intensified with the rising FDI inflows. Notably, IQ moderates the impact of FDI on income inequality through the internal mechanism of government effectiveness, control of corruption, political stability and absence of violence/terrorism, and rule of law.
Journal: The Journal of International Trade & Economic Development
Pages: 1231-1243
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1942164
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1942164
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Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Jalil
Author-X-Name-First: Abdul
Author-X-Name-Last: Jalil
Author-Name: Abdul Rauf
Author-X-Name-First: Abdul
Author-X-Name-Last: Rauf
Title: Revisiting the link between trade openness and economic growth using panel methods
Abstract: 
 The link between trade openness and economic growth remains an open question due to the inconclusive findings provided by empirical studies. We argue that the primary reasons for such disagreement are the differences between previous studies regarding their methodologies, sample selection, measures of trade openness, and duration of analyses. Based on this argument, we reinvestigate the trade–growth nexus by applying newly developed methodologies on a robust sample of 82 countries for the period 1960–2019. Also, this study integrates five region-wise subsamples and use different measures of trade openness. Our econometric results corroborate the view that trade openness induces economic growth. These results emerge after employing a variety of panel methods to data, including common correlated effects mean group (CCEMG) estimator and a system generalized method of moments (system-GMM) estimator, which accounts for cross-sectional dependence, structural breaks and endogeneity between trade and growth. Based on our robust results, we can safely claim that trade openness may contribute to economic growth. The findings of the study question the validity of the empirical results of previous studies which argue that trade restrictions promote economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 1168-1187
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1938638
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1938638
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Template-Type: ReDIF-Article 1.0
Author-Name: Paramita Mukherjee
Author-X-Name-First: Paramita
Author-X-Name-Last: Mukherjee
Author-Name: Sahana Roy Chowdhury
Author-X-Name-First: Sahana
Author-X-Name-Last: Roy Chowdhury
Author-Name: Poulomi Bhattacharya
Author-X-Name-First: Poulomi
Author-X-Name-Last: Bhattacharya
Title: Does financial liberalization lead to financial development? Evidence from emerging economies
Abstract: 
 In the last few decades, most of the emerging market economies (EMEs) have adopted financial liberalization. Evidence shows that the financial sectors/institutions in emerging economies were either underdeveloped or functioning with a lot of inefficiencies under inadequate regulation. The paper examines whether liberalization in the financial sector has led to financial development for a bunch of EMEs including BRICS. The paper differs from the existing literature in its approach of dealing with the measurements of financial development and considering financial liberalization as a gradual process. Panel regressions are estimated for 9 countries based on 22 years’ data for four aspects of financial development, viz. depth, efficiency, stability and competition. Results indicate that financial liberalization in terms of freedom in capital markets has a positive effect on financial depth and competition, whereas liberalization from government interference in the banks and other financial institutions has a positive impact on the stability of the financial sector. Trade openness has a role in enhancing the efficiency of the financial sector. Also, evidence suggests that capital account openness leads to increased depth and does not destabilize the financial sector. GDP, political stability, regulatory quality and government effectiveness are also important factors in influencing more than one aspect of financial development in a country.
Journal: The Journal of International Trade & Economic Development
Pages: 1263-1287
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1948589
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1948589
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Template-Type: ReDIF-Article 1.0
Author-Name: Yasmine Kamal
Author-X-Name-First: Yasmine
Author-X-Name-Last: Kamal
Title: Determinants of export pricing at the firm-level: evidence from Egypt
Abstract: 
 The study explains the export pricing behaviors of Egyptian firms using detailed customs data and high-dimensional fixed effects. Firstly, it finds that more productive firms (as proxied by firms’ importation of intermediate inputs and capital goods) charge higher export prices which are correlated with higher revenues, providing an evidence for competition in quality, rather than price, amongst firms. Secondly, firms with more destinations charge a higher price for their exported products and a wider price range across markets. Thirdly, firms charge higher prices for more distant and richer destinations, whereas they charge lower prices for larger-sized and less central ones. This could be explained by variable mark-ups across destinations, where higher mark-ups are set in more distant, richer, smaller (less competitive), and more central destinations. It could also indicate that higher quality product versions are sent to more distant destinations (Alchian-Allen or selection effects) and richer ones (demand effect). Lastly, firms charge higher prices for destinations with a larger prevalence of technical measures or those imposing specifically restrictive ones, potentially reflecting an adverse effect of these measures on the number of exporting firms, allowing survivors to charge higher mark-ups. Alternatively, this could reflect firms’ quality upgrading in compliance with such measures.
Journal: The Journal of International Trade & Economic Development
Pages: 1188-1206
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1938639
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1938639
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenwu Zhang
Author-X-Name-First: Wenwu
Author-X-Name-Last: Zhang
Author-Name: Ruru Li
Author-X-Name-First: Ruru
Author-X-Name-Last: Li
Author-Name: Fei Zuo
Author-X-Name-First: Fei
Author-X-Name-Last: Zuo
Title: Enterprise heterogeneity, agglomeration model, and urban exports: Evidence from Chinese cities and micro enterprises
Abstract: 
 Heterogeneous enterprise agglomeration is an important perspective in understanding urban exports and reshaping the new advantages of urban openness. This paper considers data from China’s industrial enterprises and municipality-level panel data from 192 cities to systematically examine enterprises’ heterogeneity, agglomeration patterns, and urban exports. The results reveal that: (1) the heterogeneity in enterprise productivity exhibits a significant promotional effect on urban exports in China’s central and northeastern regions, but not on its western regions; (2) specialized agglomeration positively affects exports in the central and western regions and in small and medium-sized cities, while diversified agglomeration significantly and positively impacts the eastern and northeastern regions and small and large cities; and (3) thresholds exist in determining the effects of agglomeration and sequencing on urban exports and their sequence by considering heterogeneity in enterprises’ productivity. This work provides important policy implications for the development of export trade in cities and countries by suggesting a focus on rational planning and adjustments to regional industrial policies, improvements to talent flow mechanisms, and construction of social infrastructures.HIGHLIGHTS
Heterogeneous enterprise agglomeration can shape exports from city-based businessesA new simultaneous model determines how to increase urban exportsHeterogeneity can have various impacts in different Chinese regions and citiesIncreasing productivity and exports requires strategic planning for optimization
Journal: The Journal of International Trade & Economic Development
Pages: 1207-1230
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1942163
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1942163
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Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Perez-Silva
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Perez-Silva
Author-Name: Ekaterina Krivonos
Author-X-Name-First: Ekaterina
Author-X-Name-Last: Krivonos
Title: The effects of trade openness on rural-urban sectoral employment, wages, and earnings: Evidence from Peru's second wave of trade liberalization
Abstract: 
 The effects of trade liberalization on wages, inequality, and employment in middle-income countries remains an important empirical question. However, with few exceptions, most of the empirical literature has focused on aggregate impacts at a national or regional level and the effects on skilled versus unskilled workers. This paper focuses on the effects of trade liberalization on industry-specific wages, earnings, and employment in rural and urban areas of Peru, providing more nuanced evidence on the distributional effects of trade. We use an instrumental variable approach and different measures of trade liberalization for the 2001–2016 period. Our main results suggest that, first, trade openness is associated with an increase in urban workers’ earnings and wages, with self-employed workers benefitting the most. Second, whereas wages of workers with low and high levels of education decrease as a consequence of trade openness, the earnings of self-employed workers are affected positively, benefiting unskilled workers the most. In addition, while earnings increase in almost all industries in both rural and urban areas, effects are heterogeneous for wages. Overall, both salaried and self-employed agricultural workers benefitted from trade openness, indicative that agriculture is a competitive sector with important export potential.
Journal: The Journal of International Trade & Economic Development
Pages: 1138-1167
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1936134
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1936134
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Template-Type: ReDIF-Article 1.0
Author-Name: Ariel Herbert Fambeu
Author-X-Name-First: Ariel Herbert
Author-X-Name-Last: Fambeu
Title: Poverty reduction in sub-Saharan Africa: The mixed roles of democracy and trade openness
Abstract: 
 This paper examines the impact of democracy and trade openness on poverty. To this end, we estimate a poverty model using the generalized method of moments (system-GMM) on a sample of 24 sub-Saharan African countries during the period 2005–2016. The econometric estimates provide two main sets of results. On the linear effects side, we find that democracy increases income poverty in non-oil producing countries and has no effect in oil producing countries, while trade openness has no impact on poverty. On the non-linear side, we find that imports improve household living conditions in democratic oil-producing countries on the one hand, and contribute to reducing monetary poverty in democratic non-oil-producing countries on the other. Our results are robust to estimates by different democracy indicators. Democracy and trade openness should therefore not be considered in isolation, and simultaneous policies are needed to enhance their impact on poverty in sub-Saharan Africa.
Journal: The Journal of International Trade & Economic Development
Pages: 1244-1262
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1946128
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1946128
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Template-Type: ReDIF-Article 1.0
Author-Name: Van Bon Nguyen
Author-X-Name-First: Van Bon
Author-X-Name-Last: Nguyen
Title: The difference in the FDI inflows – Income inequality relationship between developed and developing countries
Abstract: 
 Foreign direct investment (FDI) plays a crucial role in the fight against poverty and income inequality in countries worldwide. How does the governance environment decisively contribute to the difference in the FDI – income inequality relationship between developed and developing countries? To answer this question, the study empirically assesses the effect of FDI on income inequality for a group of 24 developed countries with the good governance environment and a group of 37 developing countries with the poor one from 2005 to 2018 using the two-step system GMM Arellano-Bond estimator. The estimated results indicate some interesting findings. First, FDI increases income inequality in developed countries but reduces it in developing countries. Second, in both groups of countries governance and education narrow income inequality while economic growth widens it. In particular, the robustness of estimates is checked by the PMG estimator. These findings suggest some policy implications for central governments about policies and regulations relating to the fight against income inequality.
Journal: The Journal of International Trade & Economic Development
Pages: 1123-1137
Issue: 8
Volume: 30
Year: 2021
Month: 11
X-DOI: 10.1080/09638199.2021.1925331
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1925331
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Template-Type: ReDIF-Article 1.0
Author-Name: Roger Hosein
Author-X-Name-First: Roger
Author-X-Name-Last: Hosein
Author-Name: Leera Boodram
Author-X-Name-First: Leera
Author-X-Name-Last: Boodram
Author-Name: George Saridakis
Author-X-Name-First: George
Author-X-Name-Last: Saridakis
Title: The impact of Spanish immigrants on the Trinidad and Tobago’s economy: can Spanish as a second language promote trade?
Abstract: 
 This paper examines the extent to which having Spanish as a second language influences trade in Trinidad and Tobago (T&T). Our study is motivated by the inflow of Venezuelan migrants into T&T on account of political and economic tensions in Venezuela. This influx of immigrants can positively impact the T&T economy using the Rybczynski theorem. This is necessary given that the country faces an aging population and a decline in trade with traditional trade partners. Gravity modelling including Pooled OLS, Fixed Effects Model, Random Effects Model and the Poisson-Pseudo Maximum Likelihood method are used to examine whether language affects T&T’s extra-regional trade with Spanish speaking countries. It is determined that language is a significant factor in promoting trade in T&T, increasing bilateral trade and exports. The impact of Spanish immigrants on the T&T economy reduces the loss of exports as compared to if Spanish immigrants were absent. We suggest an intensification of the adoption of Spanish as a second language in T&T in order to promote trade with other Spanish speaking countries as it would reduce communication costs.
Journal: The Journal of International Trade & Economic Development
Pages: 136-159
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1962955
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1962955
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Template-Type: ReDIF-Article 1.0
Author-Name: Ọláyínká Oyèkọ́lá
Author-X-Name-First: Ọláyínká
Author-X-Name-Last: Oyèkọ́lá
Title: A cross-country analysis of the roles of border openness, human capital and legal institutions in explaining economic development
Abstract: 
 Globalisation, human capital, and institutions have been widely recognised in the literature to be causally important for economic development. Most of the available studies, however, treat measures of these determinants either separately or as substitutes. In this paper, we study the income effects of border openness to migration, education, and the rule of law (our proxies for globalisation, human capital, and institutions, respectively). Using cross-country data covering all regions of the world, and employing instrumental variables for all three factors, we establish that they each have a robust, positive, and strong association with economic development. We then consider whether there are any useful interrelations between the three factors in explaining income. On the interaction effects, the results show that the impact on income of: (i) migration can be materially affected by cultivating good institutions but this effect is not dependent on the education level; (ii) education is important irrespective of the levels of migration and institutions; and (iii) institutions is significantly improved by raising the level of education but is not influenced by migration level. Our paper makes a significant contribution as the first investigation into the effects of migration, education, and institutions jointly and as complements.
Journal: The Journal of International Trade & Economic Development
Pages: 75-108
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1949380
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Best paper 2021
Journal: The Journal of International Trade & Economic Development
Pages: 1-1
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2022.2010883
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2010883
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Template-Type: ReDIF-Article 1.0
Author-Name: Julia Grübler
Author-X-Name-First: Julia
Author-X-Name-Last: Grübler
Author-Name: Mahdi Ghodsi
Author-X-Name-First: Mahdi
Author-X-Name-Last: Ghodsi
Author-Name: Robert Stehrer
Author-X-Name-First: Robert
Author-X-Name-Last: Stehrer
Title: Import demand elasticities revisited
Abstract: 
 Import demand elasticities are regularly used to compute trade restrictiveness indices, to transform estimated effects of trade policies into ad-valorem equivalents, or to judge on the prohibitive level of various tariff and non-tariff policy instruments. The fast rising number of negotiations of free trade agreements and the fact that non-tariff measures are at the core of these strongly motivates for an update of the import demand elasticity estimates provided by Kee, Nicita, and Olarreaga in 2008 which are based on trade data for the period 1988–2001. Following their GDP function approach, we present import demand elasticities for more than 150 countries and over 5000 products over the period 1996–2014. Countries exhibiting the highest average elasticities belong to the economically biggest countries in their respective regions, while countries with the lowest import demand elasticities are typically small island states. Import-weighted results suggest that especially countries rich in natural resources are facing an inelastic import demand, with the agri-food sector being more price-responsive than the manufacturing sector. Finally, import demand for intermediate goods seems to be more elastic than demand for products destined for final consumption.
Journal: The Journal of International Trade & Economic Development
Pages: 46-74
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1951820
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1951820
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Template-Type: ReDIF-Article 1.0
Author-Name: Yunzhi Zhang
Author-X-Name-First: Yunzhi
Author-X-Name-Last: Zhang
Author-Name: Inmaculada Martínez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martínez-Zarzoso
Title: Does new donors' aid affect gross exports and GVC participation differently?
Abstract: 
 This paper investigates whether new donors use foreign aid to facilitate their integration in the world economy. With this aim, the effect of foreign aid on gross trade and global value chains (GVC) is estimated for a sample of 12 new donors and 130 recipients over the period from 2000 to 2014. The results from a theoretically justified gravity model show that the aid effects are heterogeneous across donors and, although weak in the short run for GVC, they are however sizable in the long run. Foreign aid has a positive impact on gross trade for all donors, but only for some of them on the length of GVC. In particular, aid provided by Czech Republic, Hungary, Poland, Korea, Thailand and Turkey fosters the two forms of internationalization, whereas aid given by Russia and Israel only affects gross exports. Surprisingly, the magnitude of the aid effects is smaller for China than for other donors.
Journal: The Journal of International Trade & Economic Development
Pages: 2-22
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1948590
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1948590
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:1:p:2-22




Template-Type: ReDIF-Article 1.0
Author-Name: Prachi Gupta
Author-X-Name-First: Prachi
Author-X-Name-Last: Gupta
Author-Name: Matthias Helble
Author-X-Name-First: Matthias
Author-X-Name-Last: Helble
Title: Adjustment to trade opening: The case of labor share in India's manufacturing industry
Abstract: 
 While trade opening is generally welfare enhancing, it requires a reallocation of capital and labor across sectors and firms. The empirical evidence on how this reallocation works is still relatively thin. Our paper contributes to this literature by studying how the labor’s share of income adjusted due to trade liberalization in India’s formal manufacturing sector during the period 1998–99 to 2007–08. Our baseline model suggests that a fall in output tariffs led to an increase in the labor share while a fall in input tariffs brought about a decrease in labor share. However, once we control for factor and technology intensity of production, we find that this differential impact of tariff reduction on labor share aligns with these classifications. Tariff liberalization led to a decline in labor share in technology and capital-intensive sectors while in labor-intensive and low-tech sectors it brought about an increase. This suggests that following trade opening, demand for labor improved in labor-intensive and low-tech sectors but deteriorated in capital-intensive and high-tech sectors. India’s manufacturing bias towards the latter explains the overall decline in labor share in the post-reform period. Furthermore, we find that labor adjustment occurred more efficiently in states with flexible labor laws.
Journal: The Journal of International Trade & Economic Development
Pages: 109-135
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1949379
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1949379
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Template-Type: ReDIF-Article 1.0
Author-Name: Komla M. Agudze
Author-X-Name-First: Komla M.
Author-X-Name-Last: Agudze
Author-Name: Favour Olarewaju
Author-X-Name-First: Favour
Author-X-Name-Last: Olarewaju
Title: The growth impact of trade openness: A comparative analysis of the USA and China
Abstract: 
 Given the continuum of views regarding the impact of trade openness on the growth of economies in our globalised world, this paper investigates the comparative case of the USA and China, two of the world’s largest economies and power houses, for the period 1985–2020. We find contradicting growth effects of trade in the US and China, with trade having a mixed or negative effect on the former but a consistently positive effect on the latter, both in the short and long run. We provide some commentary in light of the recent global debates on trade and propose policy recommendations in the context of these countries.
Journal: The Journal of International Trade & Economic Development
Pages: 23-45
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638199.2021.1965646
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1965646
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Template-Type: ReDIF-Article 1.0
Author-Name: Seren Özsoy
Author-X-Name-First: Seren
Author-X-Name-Last: Özsoy
Author-Name: Oylum Şehvez Ergüzel
Author-X-Name-First: Oylum Şehvez
Author-X-Name-Last: Ergüzel
Author-Name: Ahmet Yağmur Ersoy
Author-X-Name-First: Ahmet Yağmur
Author-X-Name-Last: Ersoy
Author-Name: Metin Saygılı
Author-X-Name-First: Metin
Author-X-Name-Last: Saygılı
Title: The impact of digitalization on export of high technology products: A panel data approach*
Abstract: 
 This study argues that easy access to new information using information and communication technologies (ICT) will bring both more technological development and information about new markets, together catalyzing high technology (high-tech) production. This paper aims to show the impact of digitalization on the technology intensity of export. We use the ICT Development Index (IDI) as a proxy for the digitalization level of a country and the value of the exports of high-tech products as a proxy for the technology intensity of export. IDI comprises three components, including ICT access, usage and skills. These statistics reflect the ICT development of the country. To analyze the relevant relationship, we use panel data on countries between 2007 and 2017. The system-generalized method of moments (system GMM) dynamic panel estimator is utilized in the estimations, permitting us to control for potential endogeneity problems between the main dependent and independent variables. Results show that in developing countries, IDI has a significant effect on the export of high-tech products. In addition, the significance of the main components of IDI varies. These results suggest that developing countries striving to increase the export of high-tech products should invest more in ICT.
Journal: The Journal of International Trade & Economic Development
Pages: 277-298
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1965645
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1965645
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Template-Type: ReDIF-Article 1.0
Author-Name: Cemil Ciftci
Author-X-Name-First: Cemil
Author-X-Name-Last: Ciftci
Author-Name: Dilek Durusu-Ciftci
Author-X-Name-First: Dilek
Author-X-Name-Last: Durusu-Ciftci
Title: Economic freedom, foreign direct investment, and economic growth: The role of sub-components of freedom
Abstract: 
 This study investigates the causality relationships among the economic freedom, foreign direct investment (FDI), and economic growth for top FDI attracting countries during 1995–2019. Apart from the previous studies, we examine these three sets of causal links simultaneously and use the panel Granger causality test of Kόnya [2006. “Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach.” Economic Modelling 23: 978–992], which considers heterogeneity and cross-sectional dependency across panel members. The findings provide weak evidence for the causal links between economic freedom, FDI, and economic growth for the overall score of economic freedom index. We also conduct causality tests for freedom vs. FDI, freedom vs. growth, and FDI vs. growth by using sub-components of the freedom index and reveal too many causality linkages among these variables. Thereby, we conclude that the direction of causality seems to be country and economic freedom indicator specific. These results have important implications for policymakers.
Journal: The Journal of International Trade & Economic Development
Pages: 233-254
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1962392
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1962392
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:2:p:233-254




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Ilyas
Author-X-Name-First: Muhammad
Author-X-Name-Last: Ilyas
Author-Name: Liying Song
Author-X-Name-First: Liying
Author-X-Name-Last: Song
Author-Name: Mukhtar Danladi Galadima
Author-X-Name-First: Mukhtar Danladi
Author-X-Name-Last: Galadima
Author-Name: Muhammad Noshab Hussain
Author-X-Name-First: Muhammad Noshab
Author-X-Name-Last: Hussain
Author-Name: Abdul Sattar
Author-X-Name-First: Abdul
Author-X-Name-Last: Sattar
Title: Shocks effects of inflation, money supply, and exchange rate on the West African Monetary Zone (WAMZ): Asymmetric SVAR modelling
Abstract: 
 This paper has investigated the shocks effects of inflation, money supply, and exchange rate on the economies of the West African Monetary Zone (WAMZ) from 1987 to 2019 using the Kapetanios-Shin-Snell nonlinear cointegration test, Kilian-Vigfusson asymmetric tests, and Hatemi technique that allows the estimation of Asymmetric Structural Vector Autoregressive (ASVAR) model. The findings revealed that in all the countries, the shocks effects of inflation, money supply, and exchange rate are asymmetric except in Guinea and inflation in Liberia. Furthermore, for Gambia and Nigeria, only money supply is impacting the economies, while for Ghana, Guinea, and Liberia, none of the variables is impacting the economies but for Serra Leone, money supply and exchange rate are impacting its economy. Moreover, all the countries have common sources of shocks emanating from monetary and exchange rate policies except Gambia, which is monetary policy only. Therefore, the paper recommends the members, especially Ghana, Guinea, and Liberia, a solemn effort on appropriate monetary and exchange rate policies to boost their economies. Also, since almost all the countries have common sources of shocks emanating from monetary and exchange rate policies, they can embark into the monetary integration.
Journal: The Journal of International Trade & Economic Development
Pages: 255-276
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1965191
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1965191
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Template-Type: ReDIF-Article 1.0
Author-Name: Mitsuyo Ando
Author-X-Name-First: Mitsuyo
Author-X-Name-Last: Ando
Author-Name: Kazunobu Hayakawa
Author-X-Name-First: Kazunobu
Author-X-Name-Last: Hayakawa
Title: Does the import diversity of inputs mitigate the negative impact of COVID-19 on global value chains?
Abstract: 
 This study sheds light on the role of the import diversity of inputs and explores the effects of COVID-19 on global value chains (GVCs). Using monthly export data of final machinery products for 35 countries and indicators of diversity with 252 trade partner countries, we investigate the supply-side effects of COVID-19 on GVCs during the period from January to August 2020 and examine how the import diversity of inputs influences such effects. As a result, we find the negative supply-side effects in all three machinery industries, with the greatest ones in the transport equipment industry. In addition, such negative impacts on machinery industries are larger during the trade–fall period from February to May 2020. Furthermore, we demonstrate that the import diversity of inputs had a significant influence in partially mitigating the harmful supply-side effects of COVID-19, particularly during the early period of February–March 2020.
Journal: The Journal of International Trade & Economic Development
Pages: 299-320
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1968473
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1968473
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:2:p:299-320




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno S. Sergi
Author-X-Name-First: Bruno S.
Author-X-Name-Last: Sergi
Author-Name: Renáta Pitoňáková
Author-X-Name-First: Renáta
Author-X-Name-Last: Pitoňáková
Title: Modelling trade specialisation of Slovakia and Czechia in automobile industry
Abstract: 
 This paper proposes an innovative approach to modelling trade specialisation of Slovakia and Czechia. These countries have a limited export structure concentrated mainly on machinery and transport equipment that require recent technologies and are subject to continuous automation. We aimed to identify factors that impact Slovakia's and Czechia's performance in the automobile industry on the EU-28 market using the Auto Regressive Distributed Lag Approach. The Vollrath indicator of the revealed competitiveness (Vollrath 1987) demonstrates specialisation, representing a modification of the Balassa index of revealed comparative advantages (Balassa 1965). The paper shows compelling evidence of long-and-short-run asymmetry between trade specialisation and the real effective exchange rate in Slovakia. The results suggest that the Czech competitiveness in the automobile industry does not fall with a higher effective exchange rate. Other factors such as human capital and country size bolster the theoretical assumptions and show the over specialisation of both countries and chances to be less specialised with higher population growth. This paper's findings have a broader context and application for countries focusing primarily on manufacturing road vehicles.
Journal: The Journal of International Trade & Economic Development
Pages: 181-203
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1961846
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1961846
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:2:p:181-203




Template-Type: ReDIF-Article 1.0
Author-Name: David De Villiers
Author-X-Name-First: David
Author-X-Name-Last: De Villiers
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Title: Towards resolving the purchasing power parity (PPP) ‘Puzzle’ in newly industrialized countries (NIC’s)
Abstract: 
 The purchasing power parity (PPP) hypothesis represents one of the oldest existing economic doctrines and is plagued with empirical inconsistencies collectively labelled as ‘puzzles’. Theory suggests that there exist several frictions to price movements that manifest themselves as nonlinear adjustment processes whilst traditional empirical methodologies for evaluating PPP are, however, inadequate in accounting for these phenomena. To close the gap between theory and empirical evidence, the fractional frequency flexible Fourier form (FFFFF) unit root test is used to capture asymmetries and approximate unknown structural breaks in the real exchange rate series for 14 newly industrialised countries (NIC’s). Our study proposes a new binary search method to ease the computational burden and reduce the approximation errors in obtaining the optimal fractional frequencies used in the test. The main result of the study is that all NIC’s real exchange rates are mean-reverting over the monthly periods of 1970:1–2018:12 once asymmetries and structural breaks are simultaneously accounted for although there exists heterogeneity in the different forms of asymmetries between the different NIC’s. Policy implications of the study are discussed.
Journal: The Journal of International Trade & Economic Development
Pages: 161-180
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1964581
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1964581
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:2:p:161-180




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Urom
Author-X-Name-First: Christian
Author-X-Name-Last: Urom
Author-Name: Ilyes Abid
Author-X-Name-First: Ilyes
Author-X-Name-Last: Abid
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Author-Name: Gideon Ndubuisi
Author-X-Name-First: Gideon
Author-X-Name-Last: Ndubuisi
Title: Renewable energy consumption, globalization, and economic growth shocks: Evidence from G7 countries
Abstract: 
 This paper examines the asymmetric responses of renewable energy (RE) technology to globalization and economic growth shocks across the G7 countries using the Nonlinear Cointegrating Auto-Regressive Distributed Lag (NARDL) model. Our results indicate asymmetries across these countries and that positive shocks on globalization increase RE in Canada, Germany, the United Kingdom (UK), and the United States (US) while negative shocks decrease RE. However, both positive and negative globalization shocks promote RE consumption in Italy and Japan but decrease it in France. In contrast, both income shocks increase RE in France whilst positive income shocks increase RE in Canada, Germany, and Italy while negative shocks decrease RE. Positive income shock facilitates RE in the UK and the US while negative income shocks are detrimental to RE in Japan. Further analysis using panel cointegration, Fully Modified Ordinary Least Squares, and Panel Dynamic Ordinary Least Squares suggests that RE deployment in the G7 countries is mainly driven by positive shocks on income, globalization, and capital. We discuss the implications of the findings.
Journal: The Journal of International Trade & Economic Development
Pages: 204-232
Issue: 2
Volume: 31
Year: 2022
Month: 02
X-DOI: 10.1080/09638199.2021.1961845
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1961845
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobing Huang
Author-X-Name-First: Xiaobing
Author-X-Name-Last: Huang
Author-Name: Xinxin Meng
Author-X-Name-First: Xinxin
Author-X-Name-Last: Meng
Author-Name: Meng Chen
Author-X-Name-First: Meng
Author-X-Name-Last: Chen
Author-Name: Xiaolian Liu
Author-X-Name-First: Xiaolian
Author-X-Name-Last: Liu
Title: The impact of administrative simplification on outward foreign direct investment: Evidence from a quasi-natural experiment in China
Abstract: 
 Using firm-level data from China from 2007 and 2014, this study assesses the impact of administrative simplification on the performance of an outward foreign direct investment. Results estimated by the difference-in-difference method indicate that the administrative simplification has a positive impact on OFDI. The delegation of approval authority can promote the growth of firms’ OFDI in China. This result is robust after addressing the concerns of the endogeneity and sample selection bias. Moreover, results of extension studies show that the growth of OFDI contributed by administrative simplification plays a negative role in firms’ export performance. Finally, the policy effect of administrative simplification on OFDI is stronger for non-SOEs than SOEs.
Journal: The Journal of International Trade & Economic Development
Pages: 375-393
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1981983
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1981983
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Template-Type: ReDIF-Article 1.0
Author-Name: Nandika Sanath Kumanayake
Author-X-Name-First: Nandika Sanath
Author-X-Name-Last: Kumanayake
Title: Do customs and other trade regulatory barriers lead firms to bribe? Evidence from Asia
Abstract: 
 Corruption has become a big issue in the international trade environment with the increasing number of non-tariff barriers. The cost of corruption in customs administrations around the world has been estimated to be at least USD 2 billion. When stringent regulations become barriers to firms, they sometimes bribe government officials to get things done. Using firm-level data covering 11 Asian countries, this study sets out to quantify the impact of customs and other trade regulatory barriers on the firms’ decision to bribe. Endogenous treatment model has been accommodated to address possible endogeneity problems usually inherited in this kind of observational data. Results provide that in Asia, firms which experience difficulties with customs and other trade regulatory constraints are likely to pay more bribe amounting to 6.4% of their annual total sales than other firms. Enterprises which trust the fair functioning of their judiciary systems and enterprises with high productivity levels are less likely to bribe government officials to get things done. It is, therefore, necessary to implement policies to eliminate administrative inefficiencies especially in customs and minimize trade regulatory constraints to control trade-related corrupt practices.
Journal: The Journal of International Trade & Economic Development
Pages: 340-357
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1962391
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1962391
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Template-Type: ReDIF-Article 1.0
Author-Name: Nathaniel Kwapong Obuobi
Author-X-Name-First: Nathaniel Kwapong
Author-X-Name-Last: Obuobi
Author-Name: John Gartchie Gatsi
Author-X-Name-First: John Gartchie
Author-X-Name-Last: Gatsi
Author-Name: Michael Owusu Appiah
Author-X-Name-First: Michael Owusu
Author-X-Name-Last: Appiah
Author-Name: Seyram Kawor
Author-X-Name-First: Seyram
Author-X-Name-Last: Kawor
Author-Name: Emmanuel Kwakye Amoah
Author-X-Name-First: Emmanuel Kwakye
Author-X-Name-Last: Amoah
Author-Name: Mac Junior Abeka
Author-X-Name-First: Mac Junior
Author-X-Name-Last: Abeka
Title: Trade liberalization policies and foreign direct investment inflows in Africa: Evidence from new measures of trade liberalization
Abstract: 
 This paper examines the role that trade liberalisation policies play in attracting FDI flows to African economies from 2000 to 2017. This study contributes to the extant literature on the relevance of trade liberalisation policies in developing economies and in particular, African Countries. By employing new measures for trade liberalisation policies, the study estimated a System Generalized Method of Moment model to examine the relationship between trade liberalisation policies and FDI inflows to Africa. The findings suggest that the institutionalisation of policies to enhance trade liberalisation would be germane in attracting higher levels of FDI flows to African economies.
Journal: The Journal of International Trade & Economic Development
Pages: 394-409
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1983009
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1983009
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlos F. Cea
Author-X-Name-First: Carlos F.
Author-X-Name-Last: Cea
Author-Name: José Antonio Gonzalo Angulo
Author-X-Name-First: José Antonio
Author-X-Name-Last: Gonzalo Angulo
Author-Name: José Luís Crespo Espert
Author-X-Name-First: José Luís
Author-X-Name-Last: Crespo Espert
Title: Effects of destination countries financial development and public export credit guarantees on Spanish exports
Abstract: 
 Without accounting for the period 2008–2009, the evolution of Spanish exports from 2001 to 2015 was marked by constant growth. This period includes an economic recession in Spain from 2008 to 2013, which was accompanied by important credit restrictions to the private sector. This environment pushed Spanish firms abroad for survival, affecting the geographical mapping of exports. With this study, we examined the role played by the degree of financial development in destination countries, and by the export credit guarantees issued by CESCE, the Spanish export credit agency (ECA) in the evolution of such exports. Following previous studies, we proxied the financial development in the destination countries and used CESCE’s new business underwritten on exports between Spain and 161 destination countries. We applied a modified gravity model and a System GMM estimator to show that the effects of the financial development in the destination countries on Spanish exports differed by regions and by periods, becoming statistically non-significant during the period of higher financial stress in Spain. Our results also provide evidence that CESCE behaved countercyclically during this period and contributed to the geographical diversification of Spanish exports.
Journal: The Journal of International Trade & Economic Development
Pages: 410-426
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1983010
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1983010
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Template-Type: ReDIF-Article 1.0
Author-Name: Katsuzo Yamamoto
Author-X-Name-First: Katsuzo
Author-X-Name-Last: Yamamoto
Title: The role of side payment requirements in free trade negotiations under asymmetric information
Abstract: 
 Recent free trade agreements (FTAs) have two outstanding features: they have been drawn among countries with different market size, and relatively small market-sized countries have offered implicit side payments (i.e. concessions pertaining to non-trade aspects). The present study examines FTA negotiations between two asymmetric market-sized countries (one large and the other small) in which the former is unaware of the latter's demand and is allowed to require the latter to transfer side payments. The analysis clarifies that the side payments required by the large country depend on its beliefs about the small country's demand. If the large country expects that the small country's demand is sufficiently high, the FTAs derived from the former's requirement for moderate side payments could be either building blocks or stumbling blocks to global free trade, depending not only on each country's relative market size but also on the required side payments. Otherwise, the large country's requirement for huge side payments leads to or prevents FTAs that serve as stumbling blocks to global free trade, depending on the small country's actual demand.
Journal: The Journal of International Trade & Economic Development
Pages: 321-339
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1968019
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1968019
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:3:p:321-339




Template-Type: ReDIF-Article 1.0
Author-Name: Ha Thanh Le
Author-X-Name-First: Ha Thanh
Author-X-Name-Last: Le
Author-Name: Dung Phuong Hoang
Author-X-Name-First: Dung Phuong
Author-X-Name-Last: Hoang
Author-Name: Thang Ngoc Doan
Author-X-Name-First: Thang Ngoc
Author-X-Name-Last: Doan
Author-Name: Chuong Hong Pham
Author-X-Name-First: Chuong Hong
Author-X-Name-Last: Pham
Author-Name: Thanh Trung To
Author-X-Name-First: Thanh Trung
Author-X-Name-Last: To
Title: Global economic sanctions, global value chains and institutional quality: Empirical evidence from cross-country data
Abstract: 
 The present paper applies a modified gravity model to examine the relationship between global economic sanctions (GES) and global value chains (GVC) by using a dyad panel dataset of 38 developed and 28 developing countries during the 2005–2015 period and the rich and updated database of the Global Sanction Database version 2 (Felbermayr, G., A. Kirilakha, C. Syropoulos, E. Yalcin, and Y. V. Yotov. 2020. “The Global Sanctions Data Base.” European Economic Review 129: 1–23. doi:10.1016/j.euroecorev.2020.103561; Kirilakha, A., G. Felbermayr, C. Syropoulos, E. Yalcin, and Y. V. Yotov. 2021. The Global Sanctions Data Base: An update that includes the years of the Trump presidency. The Research Handbook on Economic Sanctions, Edited by Peter AG van Bergeijk.). GVC participation is classified into the source of the value-added as incorporated in exports, looking both backward and forward from the view of a reference country. With distinct econometric techniques and empirical estimation strategies, our empirical results document a negative association between GESs and GVC, including backward and forward linkages. This marginal effect of sanction on backward GVC is more sizable than those on forward GVC. Furthermore, the GES-GVC nexus is only evident in the case of developing countries, while the effects of sanctions are found to be small or statistically insignificant in the developed countries. However, these marginal effects of sanctions become less sizable if the target country develops a well-developed institutional system.
Journal: The Journal of International Trade & Economic Development
Pages: 427-449
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1983634
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1983634
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Template-Type: ReDIF-Article 1.0
Author-Name: Sachin Kumar Sharma
Author-X-Name-First: Sachin Kumar
Author-X-Name-Last: Sharma
Author-Name: Teesta Lahiri
Author-X-Name-First: Teesta
Author-X-Name-Last: Lahiri
Author-Name: Suvayan Neogi
Author-X-Name-First: Suvayan
Author-X-Name-Last: Neogi
Author-Name: Raihan Akhter
Author-X-Name-First: Raihan
Author-X-Name-Last: Akhter
Title: Revisiting domestic support to agriculture at the WTO: Ensuring a level playing field
Abstract: 
 In the agriculture negotiations, developing members remain concerned about the inherent inequities in the Agreement on Agriculture (AoA) which allows developed members to provide huge product-specific support without breaching their commitments. As a result, developed members enjoy artificial competitiveness, which leads to an adverse impact on farm income and livelihood security for poor farmers. Further, developing members have been increasingly finding difficulties in implementing support measures due to the constraining provisions of the AoA. From the developing members’ perspective, the elimination of trade-distorting entitlement for developed members along with special and differential treatment for themselves are the key demands in domestic support negotiations. However, some developed members have tried to build a narrative depicting developing members as major providers of trade-distorting support. This study brings out the fallacies of this narrative by highlighting the asymmetries and inequities in the trade-distorting entitlement of 8 developed and 12 developing members based on their socio-economic conditions. Results show that per farmer Amber box entitlement for developing members under the AoA is a mere fraction of the entitlement enjoyed by the developed members. This study provides a different dimension to the on-going agriculture negotiations to make trade rules development-oriented and inclusive for all.
Journal: The Journal of International Trade & Economic Development
Pages: 358-374
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1967429
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1967429
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Template-Type: ReDIF-Article 1.0
Author-Name: Nazire Nergiz Dinçer
Author-X-Name-First: Nazire Nergiz
Author-X-Name-Last: Dinçer
Author-Name: Anirudh Shingal
Author-X-Name-First: Anirudh
Author-X-Name-Last: Shingal
Author-Name: Ayça Tekin-Koru
Author-X-Name-First: Ayça
Author-X-Name-Last: Tekin-Koru
Title: Exchange rate fluctuations, volatility and exports: The intensive margin effect for Turkish firms*
Abstract: 
 We estimate an augmented gravity model using a firm-level database on Turkish firms to revisit the trade-exchange rate relationship over 2003–2015 at the intensive export margin. Besides several additional layers of analysis made possible by unique attributes of our firm-level database, we also examine exchange rate effects separately for firms engaged in manufacturing and services-intensive activities, which differentiates us from existing literature. A depreciation of the Lira is found to be associated with an increase in the quantity of Turkish exports, irrespective of firm ownership or size, though the effect is found to be muted for manufacturing firms in the sample that are more reliant on imported intermediates. Meanwhile, exchange rate volatility is found to be adversely associated with firm-level exports, especially for the sample of services-intensive and foreign-owned firms, irrespective of whether the Lira appreciated or depreciated. Finally, while the results display significant heterogeneity across sectors, at the regional level, they are driven by the location of production/export hubs in Turkey, namely İstanbul in Marmara, Ankara in Central Anatolia and İzmir in Aegean.
Journal: The Journal of International Trade & Economic Development
Pages: 450-473
Issue: 3
Volume: 31
Year: 2022
Month: 04
X-DOI: 10.1080/09638199.2021.1984548
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1984548
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Template-Type: ReDIF-Article 1.0
Author-Name: Guivis Zeufack Nkemgha
Author-X-Name-First: Guivis Zeufack
Author-X-Name-Last: Nkemgha
Author-Name: Boker Poumie
Author-X-Name-First: Boker
Author-X-Name-Last: Poumie
Author-Name: Hervé Kaffo Fotio
Author-X-Name-First: Hervé Kaffo
Author-X-Name-Last: Fotio
Title: The upsurge of trade protectionism in sub-Saharan Africa since the 2008 crisis: Is the twin deficit guilty?
Abstract: 
 Despite the growing literature on the political economy of trade protectionism, little is known about the effect of twin deficit on trade restrictions in general around the world and particularly in sub-Saharan Africa (SSA). The aim of this study is to fill this gap by assessing how twin deficit affects trade restrictions in SSA. We used a panel of 16 countries which recorded simultaneously and successively the current account deficit and the budget deficit during the period 2008–2018. The empirical evidence is based on the system Generalized Method of Moment (GMM). Our results show that the twin deficit is responsible for the upsurge of trade protectionism in sub-Saharan Africa.
Journal: The Journal of International Trade & Economic Development
Pages: 475-492
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1985160
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1985160
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:4:p:475-492



Template-Type: ReDIF-Article 1.0
Author-Name: Aisha Nanyiti
Author-X-Name-First: Aisha
Author-X-Name-Last: Nanyiti
Author-Name: John Sseruyange
Author-X-Name-First: John
Author-X-Name-Last: Sseruyange
Title: Do remittances impact on entrepreneurial activities? Evidence from a panel data analysis
Abstract: 
 Although remittances contribute towards improving the livelihoods of the recipients through income and consumption smoothing, evidence pointing to how they impact on entrepreneurial activities at cross country level has remained scanty. In this paper, we use dynamic panel procedures on data from 63 countries for the years 1981–2011, to examine the impact of remittances on entrepreneurial activities. Our main results indicate that remittances positively influence entrepreneurial activity, but this effect is more pronounced in low-income countries. From a policy perspective, our results suggest that a sustainable contribution of remittances to entrepreneurial activity especially in developing countries requires an unconstrained flow of remittances, and this can be ensured through building strong bilateral relationships and reducing bureaucratic procedures related to migration.
Journal: The Journal of International Trade & Economic Development
Pages: 553-565
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1995466
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1995466
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Template-Type: ReDIF-Article 1.0
Author-Name: Amin Sokhanvar
Author-X-Name-First: Amin
Author-X-Name-Last: Sokhanvar
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: FDI, tourism, and accelerating the rate of economic growth in Spain
Abstract: 
 Foreign direct investment (FDI) and tourism are listed as essential components of economic growth in many countries. However, empirical evidence remains controversial and ambiguous. This paper investigates the long-run effects of international tourism and FDI inflows on the rate of economic growth in Spain as an economy with a great GDP share of tourism and FDI. By employing a non-linear ARDL analysis, this study suggests that although international tourism development improves the economic growth rate, it might be wishful thinking to improve this rate by increasing the current rate of FDI in this country if the quality of FDI and its rate of return is as low as in the past. The reasons and solutions are explored in detail, and policy implications are provided.
Journal: The Journal of International Trade & Economic Development
Pages: 493-510
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1988135
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1988135
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Template-Type: ReDIF-Article 1.0
Author-Name: Sisong Duan
Author-X-Name-First: Sisong
Author-X-Name-Last: Duan
Author-Name: Yifan Li
Author-X-Name-First: Yifan
Author-X-Name-Last: Li
Author-Name: Zhuang Miao
Author-X-Name-First: Zhuang
Author-X-Name-Last: Miao
Title: Income inequality and trade of ‘Made in China’
Abstract: 
 This paper presents a theory and empirical evidence on how destination countries’ income inequality affects the export price and volume of Chinese products. We provide a simple model to illustrate exporters’ market dynamics and product-quality specialization induced by the change in the destination country's income distribution. Under the nonhomothetic preference assumption, the model predicts that higher income inequality makes Chinese exporters who produce low-quality products concentrate on serving low-income consumers, which accounts for a large proportion of the population. Exploiting highly disaggregated customs transaction records of Chinese exporters, we provide empirical evidence consistent with the model predictions: (i) A rise in income inequality leads to a lower export price, (ii) induces entry of new exporters, and (iii) leads to higher export value and export price dispersion.
Journal: The Journal of International Trade & Economic Development
Pages: 614-645
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1999484
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1999484
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Template-Type: ReDIF-Article 1.0
Author-Name: Marthinus C. Breitenbach
Author-X-Name-First: Marthinus C.
Author-X-Name-Last: Breitenbach
Author-Name: Carolyn Chisadza
Author-X-Name-First: Carolyn
Author-X-Name-Last: Chisadza
Author-Name: Matthew Clance
Author-X-Name-First: Matthew
Author-X-Name-Last: Clance
Title: The Economic Complexity Index (ECI) and output volatility: High vs. low income countries
Abstract: 
 In this study, we explore whether more complex economies are better shielded against exogenous shocks. We contribute to the literature on determinants of output volatility with a relatively new index on productive capabilities of export goods, the Economic Complexity Index (ECI), developed by Hausmann et al. [Hausmann, R., C. A. Hidalgo, S. Bustos, M. Coscia, A. Simoes, and M. A. Yildirim. 2014. The Atlas of Economic Complexity: Mapping Paths to Prosperity. MIT Press]. The ECI measures the productive capabilities of countries by explaining the knowledge accumulated in a population based on the goods produced and exported and to which countries they export. Therefore ECI captures diversification as well as the technology embedded in the products. Using panel data analysis for a cross section of countries from 1984 to 2016, we find variations in the effects of ECI on output volatility between high and low income countries. For high income countries, increases in ECI reduce output volatility in the short to medium term with a longer delay in output volatility moderation for low income countries. Findings suggest that low income countries have less diversified and less complex export goods which leave them open to external shocks and reduce their ability to adjust quickly to the shocks. Furthermore, disaggregation by regions reveals that economic complexity in Asia is relatively more effective at reducing output volatility than in Africa.
Journal: The Journal of International Trade & Economic Development
Pages: 566-580
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1995467
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1995467
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Template-Type: ReDIF-Article 1.0
Author-Name: Cui Zhang
Author-X-Name-First: Cui
Author-X-Name-Last: Zhang
Title: Foreign-firm work experience and entrepreneurial choice in China
Abstract: 
 This paper analyses the effect of foreign-firm work experience on entrepreneurial choice in China. We propose a theoretical framework to explore the possible positive and negative effects of foreign-firm work experience on the decision to become an entrepreneur. Based on a large-scale individual-level database from China, this paper finds a significant and robust negative relationship between prior foreign-firm work experience and entrepreneurial choice, which can be explained by the characteristics of jobs in foreign firms in China. Our results indicate that FDI crowds out Chinese entrepreneurship at the individual level.
Journal: The Journal of International Trade & Economic Development
Pages: 537-552
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1991989
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1991989
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Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Tien Dzung
Author-X-Name-First: Nguyen
Author-X-Name-Last: Tien Dzung
Title: Regional integration and product quality upgrading: The case of Vietnam’s manufacturing industries
Abstract: 
 In this paper, I make use of Vietnam’s enterprise surveys to estimate markups and product quality and investigate the effects of tariff preferences under the ASEAN and ASEAN+1 free trade areas (FTAs) on quality upgrading. The empirical results consistently show that Vietnam’s manufacturing firms have moved toward high-quality products and speeded up the rate of quality upgrading in response to the increasing competition from regional imports. The quality responses by domestic firms are much stronger in the competitive industries with a low degree of concentration, but are insignificant in highly concentrated industries. This indicates the importance of the domestic competition condition in transmitting the effects of tariff reductions. The empirical results and findings remain robust when the margins of tariff preferences or imports are used to proxy for import competition.
Journal: The Journal of International Trade & Economic Development
Pages: 511-536
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1990374
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1990374
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Template-Type: ReDIF-Article 1.0
Author-Name: Richard Agyabeng Donkor
Author-X-Name-First: Richard Agyabeng
Author-X-Name-Last: Donkor
Author-Name: Lord Mensah
Author-X-Name-First: Lord
Author-X-Name-Last: Mensah
Author-Name: Emmanuel Sarpong-Kumankoma
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Sarpong-Kumankoma
Title: Oil price volatility and US dollar exchange rate volatility of some oil-dependent economies
Abstract: 
 This paper examines the relationship and related causality patterns of oil price volatility and exchange rate volatility of a group of oil-dependent economies before and after the 2008–2009 global financial crisis. We employed weekly time-series data of oil price and exchange rates for 2000–2007 (pre-crisis) and 2010–2016 (post-crisis). United States dollar exchange rates are for Ghanaian cedi, Nigerian naira, Russian ruble, Indian rupee, South African rand, and the Euro. To investigate the volatility impacts that exist between oil price and exchange rates during both sub-sample periods, we merged Vector Autoregressive (VAR) with GARCH and EGARCH models in the form of Bivariate VAR-GARCH and VAR-EGARCH. We further adopted the Toda-Yamamoto causality test to investigate related causality patterns. Empirical findings revealed both bidirectional and unidirectional relationship between oil price volatility and the exchange rates volatility of four out of the six oil-dependent economies considered for the study. These findings were more prevalent in the post-crisis period than the pre-crisis period. We also confirmed both bidirectional and unidirectional causality pattern between oil price volatility and exchange rate volatility of the same four currencies as observed with the VAR results in both sub-sample periods.
Journal: The Journal of International Trade & Economic Development
Pages: 581-597
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1998581
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1998581
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Template-Type: ReDIF-Article 1.0
Author-Name: Cheuk Yin Ho
Author-X-Name-First: Cheuk
Author-X-Name-Last: Yin Ho
Title: Effects of decolonization on bilateral trade: Evidence from natural experiments
Abstract: 
 This paper estimates the effects of decolonization on bilateral trade by exploiting the end of colonial linkages between the United Kingdom and Hong Kong in 1997 and between Portugal and Macau in 1999. The two-year gap between these two historical events creates an exogenous time variation in colonial separations across colonial pairs to implement the differences-in-differences strategy. The results show that if a colonial relationship breaks up, then the imports from the former colonial counterpart increases by 42 percent and the post-colonial trade share increases by 0.29 percentage points. Further investigations suggest that the large and positive effects of decolonization on the post-colonial imports are largely operated through mechanisms of income and exchange rate.
Journal: The Journal of International Trade & Economic Development
Pages: 598-613
Issue: 4
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638199.2021.1998582
File-URL: http://hdl.handle.net/10.1080/09638199.2021.1998582
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:4:p:598-613

Template-Type: ReDIF-Article 1.0
Author-Name: Juan S. Blyde
Author-X-Name-First: Juan S.
Author-X-Name-Last: Blyde
Author-Name: Mayra A. Ramirez
Author-X-Name-First: Mayra A.
Author-X-Name-Last: Ramirez
Title: Exporting and environmental performance: Where you export matters
Abstract: 
 Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm-level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper, we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.
Journal: The Journal of International Trade & Economic Development
Pages: 672-691
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2003424
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2003424
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Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim N. Khatatbeh
Author-X-Name-First: Ibrahim N.
Author-X-Name-Last: Khatatbeh
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Financialization and income inequality: An extreme bounds analysis
Abstract: 
 Several theoretical hypotheses predict conflicting effects of financialization on income inequality, and the lack of consensus is reinforced by the mixed findings of related empirical studies. In this paper we address the model uncertainty issue by applying extreme bounds analysis (EBA) to examine the robustness of financialization variables as determinants of income inequality. The results suggest that financialization is a leading driver of income inequality and that the effects are larger when transmitted through financial markets. In addition, the results show that law and order, labour union density, population, globalization, remittances, education, and the agriculture sector share are also robust determinants of income inequality. Policy recommendations are put forward to reduce the power of the financial sector.
Journal: The Journal of International Trade & Economic Development
Pages: 692-707
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2005668
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2005668
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:5:p:692-707



Template-Type: ReDIF-Article 1.0
Author-Name: Lei Yang
Author-X-Name-First: Lei
Author-X-Name-Last: Yang
Author-Name: Qianli Dong
Author-X-Name-First: Qianli
Author-X-Name-Last: Dong
Author-Name: Ziqiang Tong
Author-X-Name-First: Ziqiang
Author-X-Name-Last: Tong
Author-Name: Qiuling Wang
Author-X-Name-First: Qiuling
Author-X-Name-Last: Wang
Author-Name: Jiani Wu
Author-X-Name-First: Jiani
Author-X-Name-Last: Wu
Title: Logistics input intensity, trade facilitation and comparative advantage
Abstract: 
 This paper investigates the impact of trade facilitation on comparative advantage in logistics-intensive manufacturing industries. To capture the industry-level heterogeneity, we introduce logistics input intensity (LII) to measure the degree of logistics service used by different manufacturing sectors. The results show that country-level trade facilitation measured by Logistics Performance Index (LPI) can promote the comparative advantage more in manufacturing sectors with higher usage intensity of logistics, especially in developing countries. Furthermore, after dividing the logistics input intensity into two parts of foreign and domestic, we find that foreign logistics input can enhance manufacturing comparative advantage in countries with low LPI. It is suggested that policymakers in developing countries should formulate specific policies to guide logistics resources toward manufacturing sectors that are more dependent on logistics and open up the logistics services market to take full advantage of foreign logistics services.
Journal: The Journal of International Trade & Economic Development
Pages: 725-741
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2011380
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2011380
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Eren Yildirim
Author-X-Name-First: Ahmet Eren
Author-X-Name-Last: Yildirim
Author-Name: Taha Bahadır Saraç
Author-X-Name-First: Taha Bahadır
Author-X-Name-Last: Saraç
Title: Exchange rate volatility and Turkey-Germany bilateral trade: An asymmetry analysis
Abstract: 
 This study investigates the asymmetric effect of exchange rate volatilities on Turkey’s bilateral trade with Germany over the period between 2002:1 and 2020:2. This study uses the Markov Regime Switching model to analysis the effect of the real exchange rate changes on the bilateral trade volume of Turkey with Germany throughout the periods of expansion and contraction in the trade volume. The results obtained reveal that the changes in real exchange rate have positive impact on the bilateral trade balance in the expansion period, despite there is no statistically significant evidence in the contraction period. This study also concludes the J-curve is valid in Turkey and Germany's bilateral trade relations because of the export-boosting effect of the real exchange rate in the expansion period.
Journal: The Journal of International Trade & Economic Development
Pages: 783-797
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2022742
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2022742
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:5:p:783-797



Template-Type: ReDIF-Article 1.0
Author-Name: Lutz G. Arnold
Author-X-Name-First: Lutz G.
Author-X-Name-Last: Arnold
Author-Name: Michael Heyna
Author-X-Name-First: Michael
Author-X-Name-Last: Heyna
Title: Low-wage competition: pains from trade for medium-wage countries
Abstract: 
 The entry of a low-wage country into a world economy with preexisting wage differentials puts the gains from trade in a former low-wage and then medium-wage country under pressure. If negotiations over the formation of a free trade area cover international transfers, there is a strong presumption that they bring about global free trade and compensation of the medium-wage country if necessary. In the absence of international transfers, by contrast, the medium-wage country is not compensated when global free trade causes a reduction in its gains from trade, and it may even happen that it is not part of the equilibrium free trade area.
Journal: The Journal of International Trade & Economic Development
Pages: 742-758
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2016897
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2016897
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Handle: RePEc:taf:jitecd:v:31:y:2022:i:5:p:742-758



Template-Type: ReDIF-Article 1.0
Author-Name: Anelí Bongers
Author-X-Name-First: Anelí
Author-X-Name-Last: Bongers
Author-Name: Carmen Díaz-Roldán
Author-X-Name-First: Carmen
Author-X-Name-Last: Díaz-Roldán
Author-Name: José L. Torres
Author-X-Name-First: José L.
Author-X-Name-Last: Torres
Title: Brain drain or brain gain? International labor mobility and human capital formation
Abstract: 
 This paper studies the impact of international labor migration on human capital investment in both hosting and sending countries using an integrated theoretical framework. We develop a two-country dynamic stochastic general equilibrium human capital investment model with international labor mobility, in which both decisions to migrate and to invest in skill acquisition are endogenous. We show that the human capital formation process in the countries of origin is very sensitive to migration policies implemented by hosting countries. Our findings show that human capital accumulation in the sending country is encouraged by the possibility of emigration to higher labor productivity countries, supporting the recent view of the ‘brain gain’ hypothesis. Productivity shocks hitting the hosting country reduce the human capital investment by natives but increase the human capital investment in the sending country when migration is allowed. Finally, we find that migration increases world human capital, increasing the stock of human capital in both hosting and sending countries.
Journal: The Journal of International Trade & Economic Development
Pages: 647-671
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2004209
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Author-Name: The Editors
Title: Correction
Journal: The Journal of International Trade & Economic Development
Pages: i-i
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2022.2031615
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiancai Pi
Author-X-Name-First: Jiancai
Author-X-Name-Last: Pi
Author-Name: Xiangyu Huang
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Huang
Title: Preference shifts and wage inequality
Abstract: 
 This paper analyzes how preference shifts affect wage inequality. We take the Cobb–Douglas preference, the Dixit-Stiglitz preference and the quasi-linear preference into account, and find that there exists preference-driven wage inequality. In the two-type labor (i.e. skilled labor and unskilled labor) models, when the preferences of consumers for skilled products are strengthened, wage inequality will be widened (resp. narrowed down) if there is a relatively low (resp. high) capital intensity in the unskilled sector. We also build a three-type labor (i.e. high-skilled labor, medium-skilled labor, and unskilled labor) model and a model with a non-tradable unskilled sector to strengthen the explanatory power. The role of preferences shifts in changing wage inequality is overlooked by the existing literature.
Journal: The Journal of International Trade & Economic Development
Pages: 759-782
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2022177
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2022177
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Author-Name: Caroline Wanjiru Kariuki
Author-X-Name-First: Caroline Wanjiru
Author-X-Name-Last: Kariuki
Author-Name: Fatima Wanjiru Kabaru
Author-X-Name-First: Fatima Wanjiru
Author-X-Name-Last: Kabaru
Title: Human capital, governance, foreign direct investment and their relationship with TFP growth: Evidence from Sub-Saharan Africa
Abstract: 
 Developing countries in Sub-Saharan Africa (SSA) are increasingly integrating into the global economy. As such, this region has experienced a surge in inward foreign direct investment (FDI). Increasing FDI in African countries should lead to productivity growth, resulting from the transfer of capital, technology and skills. However, this effect is contingent on the absorptive capacities in the host countries, such as governance and human capital. This research brings forth empirical evidence on the impact of FDI on total factor productivity (TFP) growth, while accounting for the level of human capital and governance in SSA countries. This analysis was conducted using cross country data for 34 countries in SSA for the period 1996–2019 and estimated using the system generalised methods of moments (GMM) technique. The results indicate a negative linear effect of FDI on TFP growth, albeit statistically insignificant. The study also finds that there is a positive non-linear effect, dependent on the country’s local conditions of governance and human capital. Hence, greater productivity returns from FDI in SSA can be realised through an increase in the level of human capital and better governance.
Journal: The Journal of International Trade & Economic Development
Pages: 708-724
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2021.2010794
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Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Godwin Olasehinde-Williams
Author-X-Name-First: Godwin
Author-X-Name-Last: Olasehinde-Williams
Author-Name: Berkan Tokar
Author-X-Name-First: Berkan
Author-X-Name-Last: Tokar
Title: The investment volatility-dampening role of foreign aid in poor sub-Saharan African countries
Abstract: 
 Sustained investment is required for economic growth. Investment however often experiences severe volatility in poor countries, making spending plans difficult to formulate, and diminishing growth potentials. Foreign aid serves as an important source of complementary financing for sustained investment. This paper thus studies the effect of aid inflows on total investment volatility in 19 heavily indebted poor sub-Saharan African countries over the period 1980–2018. Employing the cross-sectionally augmented distributed lag (CS-DL) estimation technique for long-run coefficients in dynamic heterogeneous panels with cross-sectional dependence along with bootstrap panel causality testing, we show that aid has an inverse relationship with investment volatility. We thus conclude that aid can be viewed as a dampening factor for investment volatility in poor countries. We also show that the ability of sudden reductions in aid inflows to trigger investment volatility is bigger than the ability of sudden increases in aid inflows to lower investment volatility.
Journal: The Journal of International Trade & Economic Development
Pages: 798-809
Issue: 5
Volume: 31
Year: 2022
Month: 07
X-DOI: 10.1080/09638199.2022.2030392
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2030392
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Template-Type: ReDIF-Article 1.0
# input file: RJTE_A_2047217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Aihua Wang
Author-X-Name-First: Aihua
Author-X-Name-Last: Wang
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Title: Does ICT promote digitizable product trade? – Evidence from Chinese exports to the ‘Belt and Road’ countries
Abstract: 
 Based on the trade data of digitizable products exported by China to the 65 ‘Belt and Road’ countries from 1998 to 2018, this study adopts the extended trade gravity model to analyze the impact of ICT on the country's exports of these products. The empirical results show that ICT has a significant and positive effect on the development of trade of digitizable products and it also promotes China's exports by lowering trade costs and accelerating innovation. The paper provides new evidence on information and technology's impact and influential mechanisms with regard to new trade patterns.
Journal: The Journal of International Trade & Economic Development
Pages: 953-965
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2022.2047217
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2047217
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Template-Type: ReDIF-Article 1.0
# input file: RJTE_A_2018021_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Lianying Hong
Author-X-Name-First: Lianying
Author-X-Name-Last: Hong
Author-Name: Xujun Liu
Author-X-Name-First: Xujun
Author-X-Name-Last: Liu
Author-Name: Huiwen Zhan
Author-X-Name-First: Huiwen
Author-X-Name-Last: Zhan
Author-Name: Feng Han
Author-X-Name-First: Feng
Author-X-Name-Last: Han
Title: Use of industrial robots and Chinese enterprises’ export quality upgrading: Evidence from China
Abstract: 
 Using the micro-level data on China’s export enterprises from 2005 to 2013, this paper discusses the impact of industrial robots on the quality upgrading of export products from two aspects: the change of enterprises’ costs and the structural effect of labor allocation. We find that there is a U-shaped relationship between the use of industrial robots and export products’ quality upgrading, but the enterprises whose robot applications exceed the U-shaped inflection point only account for 22.68%; in other words, most enterprises have not yet realized export products quality upgrading, and there exists a mismatched effect in the initial development stage. The results of mechanism analysis showed that industrial robots have significant effects on the costs and the structure of labor for export enterprises.
Journal: The Journal of International Trade & Economic Development
Pages: 860-875
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2021.2018021
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2018021
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Template-Type: ReDIF-Article 1.0
# input file: RJTE_A_2036792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Author-Name: Farhad Rassekh
Author-X-Name-First: Farhad
Author-X-Name-Last: Rassekh
Title: Does economic complexity influence the efficacy of foreign direct investment? An empirical inquiry
Abstract: 
 This paper aims to determine whether economic complexity influences the efficacy of inward foreign direct investment (FDI). To this end, in the context of a theoretical framework, we estimate a model that relates economic growth to the flow as well as the stock of FDI while taking into account the role of complexity of the economy (measured by the Economic Complexity Index). This index captures the capabilities that are embodied in the productive structure of the economy. Our empirical work shows that economic complexity influences the growth effect of FDI on the host countries. We find countries that rank relatively high in economic complexity benefit from FDI while countries that rank very low may be adversely affected.
Journal: The Journal of International Trade & Economic Development
Pages: 894-910
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2022.2036792
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2036792
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Template-Type: ReDIF-Article 1.0
# input file: RJTE_A_2013517_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mohammad Asif
Author-X-Name-First: Mohammad
Author-X-Name-Last: Asif
Author-Name: Haider Hassan Itoo
Author-X-Name-First: Haider Hassan
Author-X-Name-Last: Itoo
Author-Name: Javaid Ahmad Dar
Author-X-Name-First: Javaid Ahmad
Author-X-Name-Last: Dar
Title: On the environmental effects of development and non-development expenditure in India: Evidence from an asymmetric ARDL model
Abstract: 
 The main purpose of this study is to model and measure the impact of development and non-development expenditure on the carbon dioxide emissions (per capita metric tons) in India over 1980–2018. The Asymmetric ARDL approach (NARDL), an advanced econometric technique, was applied to examine the nexus between CO2 emissions, development and non-development expenditure, national income, energy consumption and population. The short-run and long-run results establish a statistically significant relationship between carbon emissions and the explanatory variables. The long-run asymmetrical results indicate that energy consumption and national income growth pollute the environment. However, we did not find any significant long-run impact of population on pollution levels in India. Furthermore, the results reveal that increase in development expenditure leads to environmental degradation and non-development expenditure mitigates pollution. No evidence of the applicability of EKC was found in India. The authors conclude that a reasonable method of tackling the threat of environmental degradation is to remove distortions in public expenditure policy. We recommend the government to phase out fiscal benefits to pollution-prone economic activities and thus spend the money saved on pollution abatement efforts.
Journal: The Journal of International Trade & Economic Development
Pages: 835-859
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2021.2013517
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2013517
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# input file: RJTE_A_2033303_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: George Babington Amegavi
Author-X-Name-First: George Babington
Author-X-Name-Last: Amegavi
Author-Name: Zechariah Langnel
Author-X-Name-First: Zechariah
Author-X-Name-Last: Langnel
Author-Name: Albert Ahenkan
Author-X-Name-First: Albert
Author-X-Name-Last: Ahenkan
Author-Name: Thomas Buabeng
Author-X-Name-First: Thomas
Author-X-Name-Last: Buabeng
Title: The dynamic relationship between economic globalisation, institutional quality, and ecological footprint: Evidence from Ghana
Abstract: 
 Research on the relationship between globalisation and the environment tends to focus on the direct effect of globalisation, rarely considering the role of institutions. This paper introduces insights from political economy, which suggests that environmental sustainability models would be greatly improved if institutions are considered. We test this hypothesis by estimating the relationship between economic globalisation, bureaucratic quality, and ecological footprint in Ghana for the period 1984–2016. The long-run analysis is based on the autoregressive distributive lag (ARDL) bound testing approach to cointegration. The result supports the hypothesis that expansion in economic globalisation has a reducing effect on environmental quality. Bureaucratic quality appears to exert a significant positive effect on ecological footprint. Furthermore, the estimation shows that the quality of institutions is critical for environmental quality. Based on the results the paper presents some policy recommendations.
Journal: The Journal of International Trade & Economic Development
Pages: 876-893
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2022.2033303
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2033303
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# input file: RJTE_A_2039751_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hodabalo Bataka
Author-X-Name-First: Hodabalo
Author-X-Name-Last: Bataka
Author-Name: Maman Maï Assan Chedi
Author-X-Name-First: Maman
Author-X-Name-Last: Maï Assan Chedi
Title: Globalization and business cycles synchronization in sub-Saharan Africa
Abstract: 
 This study uses data on sub-Saharan African countries for the period from 1988 to 2018 to examine the effects of globalization and its dimensions on business cycles synchronization, while disentangling the de jure aspects from the de facto ones. Globalization is measured by the quasi-correlation coefficient of the KOF globalization indices while business cycles synchronization is measured by the quasi-correlation coefficient of the real GDP cyclical components, and the absolute differential in the real GDP growth rate preceded by the negative sign. We specified a static panel model which is estimated by the Feasible Generalized Least Squares in order to overcome the spatial dependence, heteroscedasticity and errors’ autocorrelation issues. We find that globalization and its dimensions foster the business cycles synchronization in sub-Saharan Africa. The distinction between the de jure and de facto aspects of globalization also shows that both aspects strengthen the business cycles synchronization. Importantly, we mention that beyond economic globalization which is considered as a traditional determinant of the business cycles synchronization, this study shows that social and political globalization also heighten the synchronization of the latter.
Journal: The Journal of International Trade & Economic Development
Pages: 911-935
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2022.2039751
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2039751
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# input file: RJTE_A_2043930_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen Minh
Author-X-Name-Last: Ha
Author-Name: Bui Hoang Ngoc
Author-X-Name-First: Bui Hoang
Author-X-Name-Last: Ngoc
Title: The asymmetric effect of financial development on human capital: Evidence from a nonlinear ARDL approach
Abstract: 
 Human capital accumulation and financial development are two vital determinants of economic growth. Recently, human development has been increasingly seen as the ultimate goal of development, rather than economic growth, because it primarily affects future well-being. Financial development is expected to have a positive impact on human development. However, the conclusions of previous studies are inconsistent. In this work, we use a nonlinear autoregressive distributed lag method and asymmetric causality analysis to probe the potential asymmetric effect of financial development and economic growth on the human capital index per capita in Vietnam from 1992 to 2017. The outcome obtained shows that the influence of financial development and economic growth is strong and positive on human capital. The empirical results also indicate that the impact of financial development is symmetric in the short run but asymmetric in the long run. Asymmetric Granger causality from the positive changes in financial development to human capital is found. Based on the empirical results, several policy implications are suggested for emerging countries, including Vietnam.
Journal: The Journal of International Trade & Economic Development
Pages: 936-952
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2022.2043930
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2043930
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# input file: RJTE_A_2022741_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jesus Gonzalez-Garcia
Author-X-Name-First: Jesus
Author-X-Name-Last: Gonzalez-Garcia
Author-Name: Yuanchen Yang
Author-X-Name-First: Yuanchen
Author-X-Name-Last: Yang
Title: The effect of trade on market power — evidence from developing economies
Abstract: 
 The rise of market power has sparked off increasing public debate over the past decade. Using a novel large-scale firm-level dataset, this paper examines the effect of trade liberalization on corporate market power in emerging and developing economies. We find that opening up to trade significantly reduces market power by promoting competition and improving resource allocation. The cumulative impact is estimated at 4 percent reduction in average markups over a 5-year horizon post each trade liberalization episode. We also draw on machine learning algorithms to account for nonlinearities in the relationship and show that trade reform is complementary to other structural reforms.
Journal: The Journal of International Trade & Economic Development
Pages: 811-834
Issue: 6
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638199.2021.2022741
File-URL: http://hdl.handle.net/10.1080/09638199.2021.2022741
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# input file: RJTE_A_2053189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Dapeng Cai
Author-X-Name-First: Dapeng
Author-X-Name-Last: Cai
Author-Name: Kazunobu Hayakawa
Author-X-Name-First: Kazunobu
Author-X-Name-Last: Hayakawa
Title: Heterogeneous Impacts of COVID-19 on trade: Evidence from China’s province-level data
Abstract: 
 This study investigates how the coronavirus disease 2019 (COVID-19) pandemic affected China’s province-level trade. Using data on trade for January to April 2019 and 2020 and the number of confirmed COVID-19 cases or deaths, we empirically examine the effects of COVID-19-related damage on provincial exports and imports separately. We find that, on average, the COVID-19 pandemic did not lead to a reduction in provincial trade. However, we find negatively significant effects on trade in some provinces (e.g. those with a smaller number of deaths during a past coronavirus outbreak) and some industries (e.g. labor-intensive industries).
Journal: The Journal of International Trade & Economic Development
Pages: 1072-1085
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2053189
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2053189
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# input file: RJTE_A_2047218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Thanh Ha Le
Author-X-Name-First: Thanh Ha
Author-X-Name-Last: Le
Author-Name: Ngoc Thang Bach
Author-X-Name-First: Ngoc Thang
Author-X-Name-Last: Bach
Title: Global sanctions, foreign direct investment, and global linkages: evidence from global data
Abstract: 
 Using a rich and updated dataset on the Global Sanction Data Base (Felbermayr et al. “The Global Sanctions Data Base,” European Economic Review 2020; 129: 1–23), this study examines the effect of sanctions on FDI flows across 1,717 pairs of 66 countries during the 2000–2012 period and the role played by international linkages such as global value chains and global bank linkages in the sanction-FDI nexus. Results from the gravity model show that sanctions indeed have heterogenous effects on FDI flows when separate types of sanctions are put into consideration. They significantly reduce FDI flows in the pre- and during the crisis period. Both global value chains (GVCs) and global bank linkages (GBLs) play a moderating role in the sanction-FDI nexus, where the consequences of sanctions on FDI flows become more severe in the presence of these two types of international linkages. It is also found that GVCs signify the negative impacts of trade sanctions, while the GBLs can be regarded as a channel through which financial sanctions affect FDI flows more significantly. These findings bridge two strands of literature on sanctions and international linkages, where the latter is on the rise due to the worldwide presence of multinational corporations’ activities and the globalization of the financial markets.
Journal: The Journal of International Trade & Economic Development
Pages: 967-994
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2047218
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2047218
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# input file: RJTE_A_2050783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Theofanis Tsoulouhas
Author-X-Name-First: Theofanis
Author-X-Name-Last: Tsoulouhas
Title: Business commonality, standardization and product cycles
Abstract: 
 By analyzing production with a continuum of tasks subject to common stochastic effects, the analysis shows that tension between business commonality and standardization is an important source of product cycles. The paper addresses the question of whether business commonality and standardization work in tandem or against each other in a general framework, when fragmentation of production is or is not possible due to contractual incompleteness or technology features. Unlike current literature, the analysis shows that a product cycle can be obtained even with complete contracts. This is so because retaining manufacturing within the firm enhances and exploits commonality in the early stages of production and, hence, reduces the moral hazard cost of providing incentives, which would be a hidden cost of outsourcing instead. Standardization later on can favor offshoring.
Journal: The Journal of International Trade & Economic Development
Pages: 1017-1040
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2050783
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2050783
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# input file: RJTE_A_2050782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Fan Feng
Author-X-Name-First: Fan
Author-X-Name-Last: Feng
Author-Name: Fa-qin Lin
Author-X-Name-First: Fa-qin
Author-X-Name-Last: Lin
Author-Name: Tang-you Wang
Author-X-Name-First: Tang-you
Author-X-Name-Last: Wang
Title: Exchange rate appreciation and outward FDI in China
Abstract: 
 This study analysed the impact of appreciation of the renminbi (RMB) on China's outward foreign direct investment (OFDI) on a theoretical and empirical basis. Based on theoretical analysis, we found that the appreciation of RMB can promote OFDI, as it can lower the threshold for foreign direct investment. Then, by constructing export-weighted effective exchange rates, we found that for every 1% appreciation of the RMB, the probability of enterprises engaging in OFDI increased by 0.0069 over 2001–2012.
Journal: The Journal of International Trade & Economic Development
Pages: 995-1016
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2050782
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2050782
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# input file: RJTE_A_2058068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Gideon Ndubuisi
Author-X-Name-First: Gideon
Author-X-Name-Last: Ndubuisi
Author-Name: Solomon Owusu
Author-X-Name-First: Solomon
Author-X-Name-Last: Owusu
Title: Wage effects of global value chains participation and position: An industry-level analysis1
Abstract: 
 We examine how participation and positioning in global value chains (GVC) affect wages. We also examine whether this relationship is conditioned by a country’s development level and labor market regulation. The results show that participation and upstream specialization in GVCs are associated with higher wages but only in developed countries. In developing countries, while GVC participation is associated with higher wages, upstream specialization exerts downward pressure on wages. For analysis focusing on the role of labor market regulation, we find that GVC participation only exerts a positive effect on wages under stringent labor market regulation. Under flexible labor market conditions, it exerts downward pressure on wages but allows for the effective reallocation of GVC workers into knowledge-intensive and high value added upstream activities in the value chain that are more productive and wage rewarding. Additional analysis on the effects of GVCs along the wage distribution show that participation and upstream specialization in GVCs are associated with higher wages across all wage segments in developed countries. In developing countries, GVC participation only benefits higher wage earners and make low-wage earners worse-off. Even when upstream specialization is associated with lower wages across all wage segments, low wage earners are disproportionately affected.
Journal: The Journal of International Trade & Economic Development
Pages: 1086-1107
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2058068
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# input file: RJTE_A_2063928_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Simon Abendin
Author-X-Name-First: Simon
Author-X-Name-Last: Abendin
Author-Name: Duan Pingfang
Author-X-Name-First: Duan
Author-X-Name-Last: Pingfang
Title: Capital mobility and business cycle synchronization in Sub-Saharan Africa: The role of the digital economy
Abstract: 
 The existing literature on capital mobility-business cycle synchronization nexus has been centered on the implications of FDI for business cycles without investigating the various transmission channels of capital mobility on business cycles. More importantly, how digitalization mediates the relationship between capital mobility and business cycle synchronization remains unexplored. Our research addresses these gaps in the literature relying on the Panel Corrected Standard Errors (PCSE) model over the period 2014–2019 for 24 Sub-Saharan African (SSA) countries. The effect of capital mobility on business cycle synchronization proves to be affected positively by the digital economy development, and the effect of the digital economy on business cycle synchronization is positively strengthened by an increase in capital mobility in Sub-Saharan Africa. We further found that capital mobility and the digital economy have a causal relationship with business cycle synchronization. Our study reveals an important novelty in that the marginal effects on business cycle synchronization increase when capital mobility in the SSA interacts with the digital economy.
Journal: The Journal of International Trade & Economic Development
Pages: 1108-1126
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2063928
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2063928
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# input file: RJTE_A_2051588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Verena Tandrayen-Ragoobur
Author-X-Name-First: Verena
Author-X-Name-Last: Tandrayen-Ragoobur
Title: The innovation and exports interplay across Africa: Does business environment matter?
Abstract: 
 The paper investigates the relationship between innovation and export behaviour across manufacturing and services firms in Africa. The study is based on the general premise that innovation has a positive effect on firm’s exports (self-selection hypothesis) and the complementary assumption that internationalisation drives firms to innovate (learning-by-exporting hypothesis). To test this complex, two-way link between innovation and exports, the study contributes to the existing literature by analysing the complementarity effects between product and process innovation in their relationship with exports. A combination of process and product innovation is expected to have a greater impact on the likelihood of firms entering the foreign market and on their export performance. Using data from 45 African countries, from 2006 to 2020, the multinomial probit and two-stage least squares models are estimated. There is support for the learning by exporting and the self-selection hypotheses for African firms. The findings also reveal the need to improve the business environment across African economies to foster greater exports and innovation.
Journal: The Journal of International Trade & Economic Development
Pages: 1041-1071
Issue: 7
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638199.2022.2051588
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# input file: RJTE_A_2064902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Le Thanh Ha
Author-X-Name-First: Le Thanh
Author-X-Name-Last: Ha
Author-Name: Nguyen Thi Thanh Huyen
Author-X-Name-First: Nguyen Thi Thanh
Author-X-Name-Last: Huyen
Title: Global value chains and shadow economy: A multi-dimensional analysis
Abstract: 
 This article investigates the impacts of global value chain (GVC) participation on the shadow economy size (SES). GVC participation is classified by the source of the value-added in exports, looking both backward and forward from the perspective of a reference country. First, by using a global sample of 33 developed and 23 developing countries during the 2005–2015 period, the empirical results demonstrate that GVC participation has a negative impact on SES. Second, our findings confirm the presence of a non-linear bell-shaped association between backward GVC and SES while forward GVC has a significant increasingly negative influence on the SES. Third, the positive effects of backward GVC on SES are greater for developing countries, while the forward GVC plays a more critical role in reducing SES in developed countries. Finally, in the short term, both backward and forward GVC participation reduce SES, but the effects follow a U-shaped curve. In the long-term, there is evidence on the bell-shaped non-linear relationship between backward GVC and SES in developing countries, and between forward GVC and SES in developed countries. Backward GVC is an effective tool to control the SES of developing countries, while forward GVC is more important for developed countries.
Journal: The Journal of International Trade & Economic Development
Pages: 1173-1198
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2064902
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2064902
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# input file: RJTE_A_2072938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adian McFarlane
Author-X-Name-First: Adian
Author-X-Name-Last: McFarlane
Author-Name: Leanora Brown
Author-X-Name-First: Leanora
Author-X-Name-Last: Brown
Author-Name: Anupam Das
Author-X-Name-First: Anupam
Author-X-Name-Last: Das
Title: Real exchange rates and remittance inflows in Jamaica
Abstract: 
 Large remittance inflows (remittances) can have several positive economic impacts, but they can also lead to real exchange rate appreciation and a loss of international competitiveness for recipient countries, or the Dutch disease effect of remittances. Using Jamaican data from 1977 to 2019, we test for the existence of this effect. After applying autoregressive bounds and Granger causality testing, we arrive at three findings. First, there is a long run cointegrating relationship running from remittances to the real exchange rate, where 64% of any perturbation from this relationship is corrected within one year. Second, we find that a 1% increase in remittances leads to a 0.53% appreciation of the real exchange rate in the long run. The Dutch disease effect exists in Jamaica. Third, consistent with the long run results, we find that remittances Granger cause the real exchange rate in the short run. An important policy implication of our findings is that the Jamaican government should channelize remittances to capital investment in the tradeable sector, while focusing on improving trade competitiveness to compensate for the deterioration of the country's terms of trade due to remittances’ impact on the real exchange rate.
Journal: The Journal of International Trade & Economic Development
Pages: 1224-1242
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2072938
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2072938
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# input file: RJTE_A_2071456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Joanna Wolszczak-Derlacz
Author-X-Name-First: Joanna
Author-X-Name-Last: Wolszczak-Derlacz
Author-Name: Dagmara Nikulin
Author-X-Name-First: Dagmara
Author-X-Name-Last: Nikulin
Title: Within- and between-firm wage inequalities and trade integration in GVC
Abstract: 
 This paper examines between- (inter) and within- (intra) firm wage inequality using rich employer-employee data for 12 European countries. We confirm that much overall wage inequality is observed within sectors and within occupations. The share of the within- and between-firm components in overall wage inequality varies across countries. We estimate the link between involvement in global value chains (GVCs) and wages differentiating into the within- and between-firm components and test the hypothesis that there is a different effect of GVCs on wages depending on the position in a value chain (close to or far from the final demand). The results indicate that the between-firm wage component is the main channel through which involvement in global value chains is materialised. However, the exact sign of the relationship between GVC growth and wages (conditioned on upstreamness) is country-heterogeneous albeit its marginal economic significance.
Journal: The Journal of International Trade & Economic Development
Pages: 1199-1223
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2071456
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2071456
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# input file: RJTE_A_2073603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Claire Y. C. Liang
Author-X-Name-First: Claire Y. C.
Author-X-Name-Last: Liang
Author-Name: Pei-Chien Lin
Author-X-Name-First: Pei-Chien
Author-X-Name-Last: Lin
Title: Financial integration and the comparative advantage of exports
Abstract: 
 We use a cross-country cross-industry unbalanced panel dataset to examine whether countries with a higher degree of international financial integration exhibit a greater comparative advantage in the exports of industries that rely more on external financing. Our results indicate that financial integration can be a source of comparative advantage, especially for industries relying more on external finance. However, the benefits of financial integration also depend on a country’s quality of economic and legal institutions. The pros and cons of international financial integration are still being debated in the literature. Our study adds empirical evidence to the beneficial effects of financial integration on real economic activity.
Journal: The Journal of International Trade & Economic Development
Pages: 1127-1148
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2073603
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# input file: RJTE_A_2064901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Andrew Cassey
Author-X-Name-First: Andrew
Author-X-Name-Last: Cassey
Author-Name: Qianqian Wang
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wang
Title: Productivity, agglomeration, and exporting directly: evidence from the Chinese textile industry
Abstract: 
 This paper estimates the effect of total factor productivity (TFP) and agglomeration on the choice of a firm to export directly or indirectly through an intermediary. Using Chinese firm-level textile industry data, we apply a spatial autoregressive probit model. We find agglomeration is several times more important than productivity for a firm choosing to export directly. The marginal effect of agglomeration, however, is decreasing as the number of neighbors increases beyond 10.
Journal: The Journal of International Trade & Economic Development
Pages: 1149-1172
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2064901
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# input file: RJTE_A_2063927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dieudonné Mignamissi
Author-X-Name-First: Dieudonné
Author-X-Name-Last: Mignamissi
Author-Name: Mbouandi Njikam Mouhamed
Author-X-Name-First: Mbouandi Njikam
Author-X-Name-Last: Mouhamed
Title: Dimensional and dynamic effects of common currency on trade: The case of the African Franc Zone
Abstract: 
 This paper estimates the dimensional and dynamic trade effects of monetary integration in the African Franc Zone. We consider the 14 CAEMC and WEAMU countries and their bilateral trading partners over the period 1995–2019. On the basis of an augmented gravity model, the results show the existence of heterogeneous effects, the first being dimensional and the second time-related. In other words, while monetary integration has a positive and significant average effect, a refined analysis shows that not only have some countries experienced losses and others gains, but also, the time-related effects have not been uniform. However, when considering the Franc Zone as a consolidated entity, absolute trade losses disappear. Finally, the application of a non-parametric approach reveals the existence of economies of scale for low trade intensities. Based on these results, we propose a set of policies conducive to the implementation of resilience mechanisms in the event of exogenous shocks and to an ambitious reform of the monetary structure of the Franc Zone as a whole.
Journal: The Journal of International Trade & Economic Development
Pages: 1243-1280
Issue: 8
Volume: 31
Year: 2022
Month: 11
X-DOI: 10.1080/09638199.2022.2063927
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# input file: RJTE_A_2080246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Di Wang
Author-X-Name-First: Di
Author-X-Name-Last: Wang
Author-Name: Sajal Lahiri
Author-X-Name-First: Sajal
Author-X-Name-Last: Lahiri
Title: Bilateral foreign direct investments: differential effects of tariffs in source and destination countries
Abstract: 
 We study the asymmetric effects of bilateral tariffs in FDI-receiving (destination) and FDI-sending (source) countries on bilateral FDI using Gravity analysis, with bilateral FDI and average tariff data for 47 countries during the period 2001–2012. Theory suggests that while the former would encourage tariff-jumping inward FDI, the latter would discourage offshoring and export-oriented outward FDI. Our empirical study uses two alternative methodologies to estimate a Gravity model, viz., PPML estimation method which uses pairwise, destination-time and origin-time fixed effects, and GMM with time fixed effects, which can deal with possible two-way causality. After correcting for possible two-way causality, our study confirms the theoretical expectations. We also find that the 2008 Financial Crisis has had a significant impact on the magnitude of the effects of bilateral tariffs. We find that one percentage-point increase in tariffs in the destination country increases inward FDI stock to GDP ratio in that country by 0.06% in the non-crisis years and by 0.01% in the crisis years. Similarly, one percentage-point increase in tariffs in the origin country decreases outward FDI stock to GDP ratio from that country by 0.06% in the non-crisis years and by 0.02% in the crisis years.
Journal: The Journal of International Trade & Economic Development
Pages: 66-83
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2080246
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2080246
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# input file: RJTE_A_2079709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Addis Yimer
Author-X-Name-First: Addis
Author-X-Name-Last: Yimer
Title: The effects of FDI on economic growth in Africa
Abstract: 
 This paper investigates the growth effects of FDI in Africa for the period 1990–2016 using a dynamically common correlated effect approach for an error-correction model. It uses an analytical classification of African economies, with each being fragile, factor-driven or investment-driven. It also accounts for interaction effects and the problem of cross-sectional dependence that previous studies overlooked. While the long-run effect of FDI on growth is significantly positive in investment- and factor-driven economies, its short-run effect is insignificant in the latter type of economies. The effect of FDI on growth is insignificant in the fragile category both in the short-run and long-run, however.
Journal: The Journal of International Trade & Economic Development
Pages: 2-36
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2079709
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# input file: RJTE_A_2080855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Apostolos Vetsikas
Author-X-Name-First: Apostolos
Author-X-Name-Last: Vetsikas
Author-Name: Yeoryios Stamboulis
Author-X-Name-First: Yeoryios
Author-X-Name-Last: Stamboulis
Title: Does innovation activity affect trade openness? An ARDL bounds testing approach for 10 European countries
Abstract: 
 International differences in technological activity are considered a fundamental factor in explaining differences in both levels and trends between countries’ exports, imports, and income, especially among industrialized nations. This study examines the effects of innovation activity (measured by R&D expenditure and patent applications) and economic growth (GDP per capita) on trade openness (the ratio of imports plus exports to GDP) in 10 European countries from 1983 to 2018 using time series analysis. We also investigate the impact of the Lisbon and Europe 2020 strategies on trade openness. We use autoregressive distributed lag methodology and Granger causality tests based on the vector error correction model to conduct the analysis. The empirical findings indicate a strong long-run relationship among the variables in all the countries examined. In most countries, the long-run coefficients of R&D expenditure, patent applications, and GDP per capita are positive and statistically significant. In short-run dynamics, error correction models are well-defined and provide interesting results for each country. The effects of the Lisbon Strategy and Europe 2020 differ across the countries examined. Finally, the Granger causal relationships among the variables vary across countries.
Journal: The Journal of International Trade & Economic Development
Pages: 163-188
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2080855
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2080855
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# input file: RJTE_A_2072520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Enamul Hoque
Author-X-Name-First: Mohammad Enamul
Author-X-Name-Last: Hoque
Author-Name: Low Soo-Wah
Author-X-Name-First: Low
Author-X-Name-Last: Soo-Wah
Author-Name: Md Akther Uddin
Author-X-Name-First: Md Akther
Author-X-Name-Last: Uddin
Author-Name: Ashiqur Rahman
Author-X-Name-First: Ashiqur
Author-X-Name-Last: Rahman
Title: International trade policy uncertainty spillover on stock market: Evidence from fragile five economies
Abstract: 
 Trade policy uncertainty (TPU) and its impact on the global economy have captured much attention of the policymakers in the last decade. This paper contributes to building an emerging literature strand by investigating TPU spillovers of United States, China, and Japan on stock returns and volatilities of fragile economies, namely, Colombia, Indonesia, Mexico South Africa, and Turkey. This study confirms the existence of spillover effects employing Diebold and Yilmaz’s (2012) methodology. The results show that USA and China are net shock transmitter of TPU, while Japan is a net receiver. Chinese TPU has the largest influence among the three countries followed by USA and Japan. This study also employs vector autoregression (VAR)-DCC-GARCH and VAR-ADCC-GARCH to capture the spillover effects on stock returns and volatility. We find that TPU of USA, China, and Japan transmits shocks that drive stock market returns of fragile economies. However, the sign of the spillover effects is country specific and depends on a country’s TPU. Similar evidence was found for volatility spillover. In few cases, TPU of USA, China, and Japan stabilizes the stock market returns volatility. Hence, TPU has heterogeneous effects on stock market in Colombia, Indonesia, Mexico South Africa, and Turkey.
Journal: The Journal of International Trade & Economic Development
Pages: 104-131
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2072520
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2072520
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# input file: RJTE_A_2079710_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chun-Wei Lin
Author-X-Name-First: Chun-Wei
Author-X-Name-Last: Lin
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Globalization, government regulation, and country risk: International evidence
Abstract: 
 This paper investigates the risk-sharing and risk-taking effects of multidimensional globalization and government regulation on multifaceted country risk by using a panel data of 77 countries over the period 1984–2015. To gain further insights into this issue, we also examine the roles of banking activities, economic development, and geographic regions on the relationship between globalization, government regulation, and country risk. Our main empirical results show that a higher level of globalization and less restricted government regulation of the financial sector significantly decrease country risks, supporting the risk-sharing hypothesis in our study. In addition, bank performance, bank concentration, and economic development play an essential role as conditional factors to influence the country risk. This finding offers several useful insights for policymakers and researchers.
Journal: The Journal of International Trade & Economic Development
Pages: 132-162
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2079710
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# input file: RJTE_A_2073604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yulin Hou
Author-X-Name-First: Yulin
Author-X-Name-Last: Hou
Author-Name: Yun Wang
Author-X-Name-First: Yun
Author-X-Name-Last: Wang
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Gravity channels in trade
Abstract: 
 Gravity variables such as distance, adjacency, colony, free trade agreements or language are used to capture the effects of trade costs in empirical studies. By using actual data on trade costs, this paper decomposes the overall effects of such variables on trade into those through three gravity channels: duties/tariffs (DC), transportation-costs (TC), and dyadic-preferences (PC). As opposed to the existing literature where gravity variables act like supply shifters (through DC and TC), this paper empirically shows that they act like demand shifters (through PC). Regarding policy, it is implied that welfare-improving globalization cannot be achieved only through reductions in direct costs such as duties/tariffs or transportation costs; it is rather the globalization itself that should be promoted in order to shift the preferences of destination countries toward international products and thus reduce indirect trade costs. The results are further connected to several existing discussions in the literature, such as welfare gains from trade and the distance puzzle.
Journal: The Journal of International Trade & Economic Development
Pages: 37-65
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2073604
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# input file: RJTE_A_2159774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: The Editors
Title: Best paper 2022
Journal: The Journal of International Trade & Economic Development
Pages: 1-1
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2023.2159774
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# input file: RJTE_A_2078865_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Su Pan
Author-X-Name-First: Su
Author-X-Name-Last: Pan
Author-Name: Zhaohui Chong
Author-X-Name-First: Zhaohui
Author-X-Name-Last: Chong
Title: Effects of FDI on trade among countries along the Belt and Road: A network perspective
Abstract: 
 From the network perspective, this paper explores the effect of FDI on trade and analyzes the structural effect on different sectors classified by technology levels among the Belt and Road (B&R) countries. Employing social network analysis methods, we depict the evolution of FDI networks and trade networks of B&R countries and find that both two networks are disassortative and small-world networks as well as the density and number of edges increase. Through the results of ERGM, we get three findings about the effect of FDI on trade. (1) FDI has the positive effect on trade among B&R countries from the network perspective; (2) the positive effect of FDI on trade has improved since the Belt and Road Initiative is proposed; (3) FDI promotes the exports of low technological sector, medium technological sector, and high technological sector, but the effect on medium technological sector is stronger than the other two sectors.
Journal: The Journal of International Trade & Economic Development
Pages: 84-103
Issue: 1
Volume: 32
Year: 2023
Month: 01
X-DOI: 10.1080/09638199.2022.2078865
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2078865
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# input file: RJTE_A_2098527_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Antonio Fabio Forgione
Author-X-Name-First: Antonio Fabio
Author-X-Name-Last: Forgione
Author-Name: Carlo Migliardo
Author-X-Name-First: Carlo
Author-X-Name-Last: Migliardo
Title: The inefficiency of exporting SMEs: Evidence from manufacturing industry
Abstract: 
 This paper analyzes the drivers of firms' technical efficiency among exporting Italian small-to-medium enterprises (SMEs). It fills a gap in the literature on international SMEs' performance by relating their profit and cost efficiency to a set of core determinants. We find that profit efficiency decreases as export intensity grows unless a firm achieves a medium scale. The evidence highlights another interesting trend: regardless of firm size, workforce experience shows a non-monotonic relationship with both a firm's profit and the cost-efficiency score. Further, a firm's debt sustainability affects its efficiency performance negatively in terms of profit but positively in terms of cost. Conversely, a higher financial burden leads to better profit efficiency for medium-sized enterprises, but this effect is reversed for smaller firms. These results have important policy implications, not only for policymakers but also for firms' management, pursuing a competitive advantage to navigate the stormy international market.
Journal: The Journal of International Trade & Economic Development
Pages: 313-341
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2098527
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2098527
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# input file: RJTE_A_2092197_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Arhan S. Ertan
Author-X-Name-First: Arhan S.
Author-X-Name-Last: Ertan
Author-Name: K. Ali Akkemik
Author-X-Name-First: K.
Author-X-Name-Last: Ali Akkemik
Title: Intertemporal and cross-sectional contrasts in effects of trade: Significance of the technology content of exports
Abstract: 
 This study identifies cross-country and intertemporal differences in the effects of trade exposure on per capita national income. We develop a small open economy endogenous growth model with high- and low-technology sectors and endogenous human capital accumulation. We then test the predictions of our model on a sample of 70 countries over the period 1980–2017. Our main assertion is that gains from trade are not only disproportionate across countries but also contrasting over time, depending on the technology intensity of exports. Countries with lower initial experience in the production of technology-intensive goods and services tend to specialize in sectors with lower demand for better-educated and high-skilled workforce, which lowers the return to and individual incentives for education. Consequently, trade-induced specialization patterns, due to their implications about technological progress, appear to be an important factor causing cross-national divergence in welfare. Our theoretical model implies that, in an unskilled labor-abundant country, higher exposure to international trade can decrease the long-run growth rate, even though it increases short-run per capita income. In a skilled-labor abundant country, both short-run and long-run effects are positive. Our empirical findings, which identify short-run and long-run effects separately, strongly support these predictions.
Journal: The Journal of International Trade & Economic Development
Pages: 189-218
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2092197
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2092197
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# input file: RJTE_A_2094451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Segundo Camino-Mogro
Author-X-Name-First: Segundo
Author-X-Name-Last: Camino-Mogro
Author-Name: Xavier Ordeñana-Rodríguez
Author-X-Name-First: Xavier
Author-X-Name-Last: Ordeñana-Rodríguez
Author-Name: Paul Vera-Gilces
Author-X-Name-First: Paul
Author-X-Name-Last: Vera-Gilces
Title: Learning-by-exporting vs. self-selection in Ecuadorian manufacturing firms: Evidence from different industry classifications
Abstract: 
 This paper analyzes the differences in productivity performance between exporting and non-exporting manufacturing firms in Ecuador during the period 2007–2018, using two underexplored industry classifications in this analysis: the Pavitt Taxonomy and the OECD technological intensity classification. We estimate total factor productivity (TFP) at the firm level with a modified (Gandhi, Navarro, and Rivers 2020) approach that allows us to use an additional state variable and endogenize the law of motion for productivity, which allows the past decision about exporting to affect future productivity. This approach captures the static and dynamic gains (learning-by-exporting) in productivity from exporting. Moreover, we test self-selection on the entry and exit sides of the market, and show a robustness check of the learning-by-exporting hypothesis by using a difference-in-difference matching estimator. Our results indicate that exporters have better productivity performance than non-exporters. We find evidence in favor of the self-selection on the entry and exit sides of the market. Finally, we show there are dynamic gains in productivity from exporting, supporting the learning-by-exporting hypothesis.
Journal: The Journal of International Trade & Economic Development
Pages: 281-312
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2094451
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2094451
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# input file: RJTE_A_2081712_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Limor Hatsor
Author-X-Name-First: Limor
Author-X-Name-Last: Hatsor
Author-Name: Artyom Jelnov
Author-X-Name-First: Artyom
Author-X-Name-Last: Jelnov
Title: Product regulation or protectionism?
Abstract: 
 Product regulation has become a principal means of intervention in international trade. There is a debate, however, on its intent. Gründler and Hillman (2021) propose that half of regulatory restrictions on imports may protect producers, when formally the regulations are intended to protect consumers. The idea that regulation might protect producers rather than consumers goes back to Peltzman (1976) for the regulation of price and appears as a political trade-off in choice of a tariff in Hillman (1982). We provide a theoretical analysis that underpins the puzzle in intent of regulatory restrictions on imports, allowing for ex-ante or ex-post inspection by the regulator (before or after the product is purchased). Our results suggest that under certain circumstances all firms, even importers, prefer ex-ante inspection, which is surprising, given that ex-ante inspection discriminates importers. We also show that ex-ante inspection may be harmful for public safety, because it harms local producers' incentive to make effort, and therefore must be complemented by ex-post inspection.
Journal: The Journal of International Trade & Economic Development
Pages: 266-280
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2081712
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2081712
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# input file: RJTE_A_2101681_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Human capital expansion and firms’ export product quality: Evidence from China
Abstract: 
 In 1999, the Chinese government implemented the university enrollment expansion policy, which resulted in the rapid increase in college graduates in 2003. This study conducts a quasi-natural experiment and uses the difference-in-difference (DID) method to deeply analyze the impact of human capital expansion on firms’ export product quality. Robustness tests revealed that human capital expansion significantly improves the export product quality of Chinese manufacturing firms. Fixed asset investment and innovation of firms must be promoted for human capital expansion to improve firms’ export product quality. A significant amount of heterogeneity exists in how human capital expansion impacts the export product quality across various types of firms.
Journal: The Journal of International Trade & Economic Development
Pages: 342-363
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2101681
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# input file: RJTE_A_2089717_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Author-Name: Yajun Zhu
Author-X-Name-First: Yajun
Author-X-Name-Last: Zhu
Title: Import liberalization and Chinese citizens’ sense of social fairness: empirical research based on 2010–2015 CGSS data
Abstract: 
 Efficiency and fairness are major social goals. However, the international trade literature focuses on how trade affects economic efficiency, ignoring the issue of fairness. This study examines the impact of import liberalization on Chinese residents’ sense of social fairness using Chinese General Social Survey data covering 2010–2015. It finds that import liberalization improves Chinese residents’ sense of social fairness and that this effect is more significant for groups with low education levels, low incomes, and low social class. Further empirical results show that import liberalization improves Chinese residents’ sense of social fairness by reducing income inequality (Result Fairness) and promoting class mobility (Opportunity Fairness). These findings imply that import liberalization is important for realizing social equity and that there is a great need to promote reform through opening-up in order to foster a fair and just institutional environment.
Journal: The Journal of International Trade & Economic Development
Pages: 240-265
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2089717
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2089717
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# input file: RJTE_A_2083216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Javad Nosratabadi
Author-X-Name-First: Javad
Author-X-Name-Last: Nosratabadi
Title: The impact of trade sanctions on the relative demand for skilled labor and wages: Evidence from Iran
Abstract: 
 This paper examines the effects of trade sanctions on the relative demand for skilled labor and wages by using Iranian industrial manufacturing data covering 7 years before and 7 years after the sanction year. The decomposition of the change in the aggregate demand for skilled labor sheds light on the fact that it comes from labor reallocation within industries, not from across industries. The trade sanctions adversely affected both exporters' and non-exporters' total factor productivity; however, non-exporters endured a larger negative impact. As a result of the significant reduction in industries' total factor productivity, the relative demand for skilled labor decreases which results in a decrease in the real wage per-worker as well. Furthermore, exporters, compared to non-exporters, are responsible for more changes in the relative demand for skilled labor, are faster in changing skills, and their change in skills have a greater impact on the real wage per-worker.
Journal: The Journal of International Trade & Economic Development
Pages: 219-239
Issue: 2
Volume: 32
Year: 2023
Month: 02
X-DOI: 10.1080/09638199.2022.2083216
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# input file: RJTE_A_2105386_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Luqman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Luqman
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Asymmetric role of human capital and trade liberalization in the economic growth of Pakistan: Fresh evidence from the nonlinear analysis
Abstract: 
 Human capital and trade liberalization are playing a central role in growth theories. However, the link between human capital, trade liberalization, and economic growth remains a challenging question due to the inconclusive results of the previous studies. Paper contributes to this debate through asymmetric links among human capital, trade liberalization, and economic growth by incorporating labor and capital for Pakistan's economy by applying the nonlinear autoregressive distributed lag model. Results suggest that the positive and negative asymmetric impact of trade liberalization and human capital on growth substantially vary in the short and long run. In the long run, the increased trade liberalization hurts economic growth, while increased human capital has a minimal positive impact on economic growth in the short and long run. The implications of this paper are for economists and policymakers to strengthen the role of human capital and trade liberalization for Pakistan.
Journal: The Journal of International Trade & Economic Development
Pages: 475-493
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2105386
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2105386
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# input file: RJTE_A_2115106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hyun-Hoon Lee
Author-X-Name-First: Hyun-Hoon
Author-X-Name-Last: Lee
Author-Name: Danbee Park
Author-X-Name-First: Danbee
Author-X-Name-Last: Park
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: RCEP’s financial integration before and after the global financial crisis: an empirical analysis
Abstract: 
 We empirically investigate whether the Regional Comprehensive Economic Partnership (RCEP) economies are more financially integrated with global economies, particularly the U.S., or with each other. For this purpose, we utilize the gravity framework and the IMF’s Coordinated Portfolio Investment Survey (CPIS) data on cross-border holdings of portfolio investment (equities and debt securities) for 2001-2019. We find that the intra-regional integration of financial markets among RCEP economies is limited and has not deepened even after the GFC of 2008. Instead their overinvestment in the U.S. equity market has increased since the GFC. In addition, we find that an increase in bilateral trade does not lead to an increase in bilateral equity investment. Instead, an increase in bilateral equity investment brings about an increase in bilateral trade.
Journal: The Journal of International Trade & Economic Development
Pages: 429-460
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2115106
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2115106
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# input file: RJTE_A_2115104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Abbas
Author-X-Name-First: Ali
Author-X-Name-Last: Abbas
Title: What robustly determines FDI in emerging markets and developing countries? A sensitivity analysis
Abstract: 
 What determines Foreign Direct Investment (FDI) inflows remains a primary concern of economists and policy makers; yet the uncertainty surrounding FDI theories and empirical approaches has created ambiguity regarding the determinants of FDI. This paper applies Leamer’s (1983, 1985) traditional Extreme Bounds Analysis (EBA) as well as the Sala-I-Martin modified form of EBA to identify the robust determinants of FDI using cross-sectional data (averaged for the period of 1985-2016) covering 103 emerging and developing countries. We consider 33 potential economic, political and institutional determinants. To address concerns about multicollinearity, the VIF restriction specifies that only estimates with VIF below five are reported. The results show that all variables of interest are fragile determinants of FDI when using traditional EBA. Yet, when applying the Sala-i-Martin EBA, nine robust variables are revealed. Some policy implications are discussed.Highlights
What determines Foreign Direct Investment (FDI) inflows remains a primary concern of economists and policy makers; yet the uncertainty surrounding FDI theories and empirical approaches has created ambiguity regarding the determinants of FDI.It is a common practice in the fields of economics and finance to report the most ‘appealing’ or convenient regression or regressions after an extensive search and data mining, given that the ‘true’ model is unknown.This paper applies traditional Extreme Bounds Analysis (EBA) as well as the Sala-i-Martin modified form of EBA to identify the robust determinants of FDI.We demonstrate that what is important is not the significance or otherwise according to one regression equation but rather the robustness or fragility of the variables in the sense that the sign and significance do not change over a large number of regressions selected according to a predetermined procedure.Policy makers would be able to understand the importance of the major determinants of FDI mentioned in the paper and take steps to formulate policies that encourage and attract more FDI. Such determinants could include market size, making regulations more international trade friendly and investing in the nation’s human capital. Further, research and development facilities could be developed to provide a basis for technological advancements which would attract more FDI inflows.
Journal: The Journal of International Trade & Economic Development
Pages: 410-428
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2115104
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2115104
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# input file: RJTE_A_2113116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Winston W. Chang
Author-X-Name-First: Winston W.
Author-X-Name-Last: Chang
Author-Name: Fang-yueh Chen
Author-X-Name-First: Fang-yueh
Author-X-Name-Last: Chen
Author-Name: Tai-Liang Chen
Author-X-Name-First: Tai-Liang
Author-X-Name-Last: Chen
Title: Political competition, optimal upstream managerial delegation for an SOE, and optimal downstream industrial policy
Abstract: 
 This paper introduces political competition into a vertical model with successive duopolies. The upstream consists of a home state-owned enterprise (SOE) and foreign private intermediate-input producer while the downstream consists of home and foreign private final-good producers. The SOE manager lobbies for a better weight configuration comprised of profits and sales, the downstream domestic firm lobbies for more subsidies to enhance its profits and industrial policy, and the policymaker, as one agency, maximizes a weighted sum of the lobbyists' contributions and social welfare, sets policies for the two firms. The paper shows that it is in the interest of the SOE's manager to promote sales at the expense of profits. The upshot on the effects of lobbying is that the government will set too high a weight on sales for the SOE and will confer excessive subsidy to the downstream firm beyond the respective social optimal levels. Lobbying is therefore socially harmful. This paper further shows that if only one lobbyist contributes, which results in lower social welfare than when only its rival contributes, it must be that the lobbyist contributes more than its rival.
Journal: The Journal of International Trade & Economic Development
Pages: 391-409
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2113116
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2113116
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# input file: RJTE_A_2119486_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Le Thanh Ha
Author-X-Name-First: Le Thanh
Author-X-Name-Last: Ha
Author-Name: Doan Ngoc Thang
Author-X-Name-First: Doan Ngoc
Author-X-Name-Last: Thang
Title: Economic sanctions and global banking flows: The moderating roles of financial market properties and institutional quality
Abstract: 
 This paper investigates the effects of economic sanctions (ES) on global banking flows (GBF) using 4022 pairs of 207 countries during the period 1995­2018. We use a structural gravity model combined with the rich Global Sanction DataBase introduced by Felbermayr et al. ES include various forms of sanction, including arms, military, trade, financial, travel, and other sanctions, whereas GBF reflect cross-border lending. Our empirical results show a negative association between ES and GBF. The heterogeneous effects of ES on GBF depend on the types of sanctions. Furthermore, both properties of financial markets and the institutional quality of the target country play a decisive role in moderating the ES-GBF nexus. Specifically, the consequences of ES become more severe when target countries feature a high level of financial market development, more open financial markets, poor credit information sharing, a more competitive banking market, and a high degree of financial openness, while better institutional quality limits the adverse impact of sanctions.
Journal: The Journal of International Trade & Economic Development
Pages: 365-390
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2119486
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2119486
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# input file: RJTE_A_2121847_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fangjing Hao
Author-X-Name-First: Fangjing
Author-X-Name-Last: Hao
Author-Name: Hui Wu
Author-X-Name-First: Hui
Author-X-Name-Last: Wu
Author-Name: Junxian Liu
Author-X-Name-First: Junxian
Author-X-Name-Last: Liu
Author-Name: Yufei Chen
Author-X-Name-First: Yufei
Author-X-Name-Last: Chen
Title: Environmental regulation, trade openness and polluting emissions: City-level empirical evidence from China
Abstract: 
 This study investigates the relationship among environmental regulation, trade openness, and pollution emissions using a two-way fixed and mediating effect model based on the panel data of 283 prefecture-level cities obtained from 2005 to 2019. The results reveal that trade openness has a significant impact on the production of polluting emissions. Environmental regulation policies can effectively reduce the adverse impact of trade openness on polluting emissions. By further investigating the intermediate mechanism, it is found that the environmental regulation policies negatively regulate the trade openness and polluting emissions, mainly by promoting industrial upgrading.
Journal: The Journal of International Trade & Economic Development
Pages: 494-507
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2121847
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2121847
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# input file: RJTE_A_2117841_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zorodzai Matima
Author-X-Name-First: Zorodzai
Author-X-Name-Last: Matima
Author-Name: Sean Joss Gossel
Author-X-Name-First: Sean Joss
Author-X-Name-Last: Gossel
Title: The relationship between FDI, political risk and institutional quality in sub-Saharan Africa
Abstract: 
 This study investigates the relationship between FDI, political risk, and institutional quality in 20 sub-Saharan African countries over the period from 2003 to 2019. GMM analysis finds that FDI is attracted to SSA by declining political risk and improved institutional quality but resource extractive SSA economies tend to attract more FDI. The results further show that although FDI investors are more concerned about regulatory and institutional investment protection than with political risk in resource dependent SSA countries, political risk is a more efficient intermediator than institutional quality in attracting FDI to resource dependent SSA countries.
Journal: The Journal of International Trade & Economic Development
Pages: 461-474
Issue: 3
Volume: 32
Year: 2023
Month: 04
X-DOI: 10.1080/09638199.2022.2117841
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2117841
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# input file: RJTE_A_2122538_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Soo-Eun Kim
Author-X-Name-First: Soo-Eun
Author-X-Name-Last: Kim
Author-Name: Jun Ho Seok
Author-X-Name-First: Jun Ho
Author-X-Name-Last: Seok
Title: The impact of foreign direct investment on CO2 emissions considering economic development: Evidence from South Korea
Abstract: 
 This study investigates the relationship between foreign direct investment (FDI) inflows and CO2 emissions in Korea, applying the autoregressive distributed lag model. Specifically, we test the impact of FDI on CO2 emissions based on Korea’s level of economic growth, using yearly data from 1971 to 2015. Our results show that, in the long run, FDI inflows positively affect CO2 emissions. However, the absolute size of the positive effect decreases with an increase in income. Eventually, the effect of FDI inflows changes from positive to negative, increasing the GDP per capita, in the long run. Thus, while the pollution haven hypothesis is satisfied at a lower income level, the pollution halo hypothesis becomes applicable at a higher income level. For Korea, the optimal policy strategy at the current income level, is to maximize FDI inflows. Our results also imply that a policy promoting FDI inflows to developed countries, is beneficial both economically and environmentally. Meanwhile, policymakers in developing countries should adopt a balanced policy for FDI inflows, considering their negative effects on the environment and positive effects on economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 537-552
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2122538
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2122538
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# input file: RJTE_A_2125552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bishwanath Goldar
Author-X-Name-First: Bishwanath
Author-X-Name-Last: Goldar
Author-Name: Amrita Goldar
Author-X-Name-First: Amrita
Author-X-Name-Last: Goldar
Title: Impact of export intensity on energy intensity in manufacturing plants: Evidence from India
Abstract: 
 Several econometric studies, some undertaken for industrialised countries and some for emerging economies, have found that export participation by industrial enterprises tends to lower their energy intensity and CO2 emissions intensity. Similar studies undertaken for Indian manufacturing firms using firm-level data have also reached the same conclusion. This paper uses plant-level data for 2008–2015 to examine the impact of export intensity on the energy intensity of Indian manufacturing. The use of plant-level data has the advantage of incorporating location-specific differences into the analysis, such as the contribution of renewable energy sources (solar, wind, etc.) to the power supply in the state in which the plant is located. The paper finds a significant negative effect of export intensity on energy intensity, confirming earlier findings. Also, on a relative scale, the energy-efficiency-enhancing effect of exporting is larger for relatively more energy-intensive industries. Further, increases in the share of renewable energy in the power supply make industries more energy efficient.
Journal: The Journal of International Trade & Economic Development
Pages: 639-664
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2125552
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2125552
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# input file: RJTE_A_2124436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hrushikesh Mallick
Author-X-Name-First: Hrushikesh
Author-X-Name-Last: Mallick
Title: Factors driving current account performance of South Asian economies: A comparative empirical analysis
Abstract: 
 Considering annual data from 1980 to 2020, this study attempts to investigate major factors determining Current Account Deficits (CADs) for five South Asian economies (Bangladesh, India, Pakistan, Nepal and Sri Lanka) in the South Asian Region. Using VAR estimation framework on a basic model of CAD, it is observed that exchange rate depreciation majorly helps to improve the Current Account Balances (CABs), whereas increased per capita income, trade openness, net foreign capital inflows don’t pose major threats to deterioration in their CABs of countries. While fiscal deficit doesn’t have substantial effect on CAB except for Bangladesh and Nepal, increased savings have an unfavourable effect on CAB, which is a major policy concern for almost all the countries in the region. Given the trends of liberalisation which is intensifying over time along with sustained growth of per capita incomes across economies, we conclude that unless some sectoral import restrictions are imposed along with ensuring the stability of exchange rates and productive allocation of external credits, the economies are likely to experience deterioration in their CABs and macro policy environment.
Journal: The Journal of International Trade & Economic Development
Pages: 575-611
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2124436
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2124436
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# input file: RJTE_A_2124437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Karishma Banga
Author-X-Name-First: Karishma
Author-X-Name-Last: Banga
Title: Global value chains and product sophistication in developing countries; the case of Indian manufacturing
Abstract: 
 This paper examines whether linking into Global Value Chains (GVCs) can facilitate product upgrading in developing country firms, enabling them to climb up the value-chain ladder. The analysis is conducted using an unbalanced panel of Indian manufacturing firms in the period 2001–2015. Extensive data at the product-firm level is used to construct a sales-weighted average product sophistication level of Indian firms. To account for econometric issues of endogeneity and self-selection, the study employs the System GMM estimator and Propensity Score Matching (PSM). Findings indicate that linking into GVCs boosts the average product sophistication level of Indian firms by roughly 2 percent. Younger, more innovative, and more embedded GVC firms capture higher product sophistication gains from GVCs, while no significant impact is found for foreign investment. Results are robust to the use of different measurement techniques, model and lag specifications and methodologies. Findings suggest that designing trade policies in developing countries to increase GVC integration can enable product upgrading but there is a need to boost internal innovative capabilities to maximise gains from linking into GVCs. Further, the study raises important concerns regarding the future of export sophistication in India, demonstrating a shift in India’s GVC trade towards the Global South and its tendency to export less sophisticated goods to Southern partners.
Journal: The Journal of International Trade & Economic Development
Pages: 509-536
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2124437
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2124437
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# input file: RJTE_A_2128394_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Seymur Ağazade
Author-X-Name-First: Seymur
Author-X-Name-Last: Ağazade
Title: The effect of cultural exports on inbound tourism: An empirical analysis of Türkiye
Abstract: 
 The interest and awareness hypothesis predicts that exports positively affect inbound tourism. It may be a more reasonable expectation that this effect is especially provided for cultural exports. In this context, this study investigates the effect of cultural exports on tourism for Türkiye. Findings supported the cointegration relationship among the number of tourists, tourist income, real exchange rate and cultural exports. According to the long-run ARDL model, a 1% increase in cultural exports causes a 0.2844% increase in the number of tourists. Furthermore, the results obtained regarding the effect of tourist income and real exchange rate were consistent with expectations.
Journal: The Journal of International Trade & Economic Development
Pages: 665-678
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2128394
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2128394
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# input file: RJTE_A_2124439_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nguyen Phuong Trang
Author-X-Name-First: Nguyen Phuong
Author-X-Name-Last: Trang
Title: Antecedents of skilled international immigrants to Vietnam: The importance of global network and institutional quality
Abstract: 
 This paper examines the demographic, economic, and social antecedents of international migrations of skilled laborers to Vietnam. We defined skilled immigrants as individuals who are working in professional positions, such as managers, CEO, specialist, and technical laborers. Using various econometric techniques for the sample of 63 provinces in Vietnam during the 2019–2020 period, our study highlights the importance of global network and institutional quality in promoting the international inflows of skilled workers to each province in Vietnam. The income of the host city and the lack of skilled labors in these cities captured by the level of young employment and skilled worker also play a critical role in skilled immigrants’ decisions.
Journal: The Journal of International Trade & Economic Development
Pages: 612-638
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2124439
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2124439
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# input file: RJTE_A_2124438_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sun Linbing
Author-X-Name-First: Sun
Author-X-Name-Last: Linbing
Author-Name: Wang Tienan
Author-X-Name-First: Wang
Author-X-Name-Last: Tienan
Author-Name: Guan Feiyang
Author-X-Name-First: Guan
Author-X-Name-Last: Feiyang
Author-Name: Tang Liqing
Author-X-Name-First: Tang
Author-X-Name-Last: Liqing
Title: Firms’ participation in global value chains marketing activities and performance: the roles of international experience and technological turbulence
Abstract: 
 This paper investigates the impact of marketing innovation on firms’ participation in global value chains (GVCs) marketing activities. We test the moderating effect of international experience and technological turbulence on the relationship between firms’ participation in GVCs marketing activities and firm performance, using data from 503 Chinese firms. The results highlight that firms’ GVC marketing activity participation relies on marketing innovation to improve performance. Moreover, international experience strengthens the positive relationship between participation in GVCs marketing activities and firm performance. Surprisingly, the positive moderating effect is different under different levels of technological turbulence.
Journal: The Journal of International Trade & Economic Development
Pages: 553-574
Issue: 4
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638199.2022.2124438
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2124438
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# input file: RJTE_A_2134911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jinjing Zhao
Author-X-Name-First: Jinjing
Author-X-Name-Last: Zhao
Author-Name: Miao Su
Author-X-Name-First: Miao
Author-X-Name-Last: Su
Author-Name: Yi Jiang
Author-X-Name-First: Yi
Author-X-Name-Last: Jiang
Author-Name: Jongchul Lee
Author-X-Name-First: Jongchul
Author-X-Name-Last: Lee
Title: Home country institutional restraint and outward foreign direct investment: Evidence from Chinese heterogeneity enterprises
Abstract: 
 Based on an analysis of 2671 outward foreign direct investment (OFDI) deals completed by Chinese enterprises from 2009 to 2018, this study evaluated the role of the OFDI regulatory policies on Chinese heterogeneity enterprises’ OFDI. The difference-in-differences model is applied with the OFDI data to control the influence of endogeneity resulting from missing variables. The results show that the regulatory policies’ effect on Chinese enterprises’ OFDI varies with the ownership structure of the home country’s enterprises. The implementation of OFDI regulatory policies significantly reduces the OFDI of state-owned enterprises but does not significantly impact that of privately owned enterprises. Interestingly, the policies significantly reduce the OFDI of central state-owned enterprises but do not significantly impact that of local ones. The former benefit from central government institutional support, and their main purpose is to comply with national strategy. By contrast, local governments administer the local state-owned enterprises, whose main purpose is to promote local economic development. In terms of seeking profits, their investment choices are similar to those of privately owned enterprises. This study also examines China’s OFDI policy responses.
Journal: The Journal of International Trade & Economic Development
Pages: 722-742
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2134911
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2134911
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# input file: RJTE_A_2134912_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tarik Aziz
Author-X-Name-First: Tarik
Author-X-Name-Last: Aziz
Author-Name: Md. Gias Uddin Khan
Author-X-Name-First: Md. Gias Uddin
Author-X-Name-Last: Khan
Author-Name: Md. Toriqul Islam
Author-X-Name-First: Md. Toriqul
Author-X-Name-Last: Islam
Author-Name: Mohammad Abdul Hannan Pradhan
Author-X-Name-First: Mohammad Abdul Hannan
Author-X-Name-Last: Pradhan
Title: An analysis on the relationship between ICT, financial development and economic growth: Evidence from Asian developing countries
Abstract: 
 This study examines the effect of ICT progress on economic growth by constructing an ICT diffusion index. Along with ICT, this study further investigates the role of financial development and the combined impact of ICT and financial development on growth in 10 Asian developing economies covering the period 2001–2017. To analyze the panel data, this study employed the ARDL model and estimated the Pooled Mean Group estimator. The estimated results reveal a significant positive long-run relationship between financial expansion and economic progress. While ICT hurts economic growth on its own, it has a significant positive impact when combined with financial development. The robustness of the results has been verified by Fully-Modified OLS (FMOLS) and Dynamic OLS (DOLS) estimations. To promote enduring economic growth in Asian developing countries, the paper recommends ensuring inclusive financial development combined with modern ICT.
Journal: The Journal of International Trade & Economic Development
Pages: 705-721
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2134912
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2134912
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# input file: RJTE_A_2138508_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jianwei Xu
Author-X-Name-First: Jianwei
Author-X-Name-Last: Xu
Author-Name: Shengtong Liu
Author-X-Name-First: Shengtong
Author-X-Name-Last: Liu
Author-Name: Kun Liu
Author-X-Name-First: Kun
Author-X-Name-Last: Liu
Title: Influence of overseas ethnic Chinese networks on China’s outward foreign direct investment
Abstract: 
 This study investigates the influence of overseas ethnic Chinese networks on China’s outward foreign direct investment using panel data from 2007 to 2018. The empirical results show that: first, overseas ethnic Chinese networks can promote outward foreign direct investment from China. Second, this influence is achieved through cultural identity. In addition, considering the heterogeneity of the business environment in host countries, we find that this transmission path is clearer in host countries with unhealthy business environments.
Journal: The Journal of International Trade & Economic Development
Pages: 824-834
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2138508
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2138508
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# input file: RJTE_A_2136736_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ruohan Wu
Author-X-Name-First: Ruohan
Author-X-Name-Last: Wu
Author-Name: Zheng Jiang
Author-X-Name-First: Zheng
Author-X-Name-Last: Jiang
Author-Name: Huimin Shi
Author-X-Name-First: Huimin
Author-X-Name-Last: Shi
Title: Exports and innovation under trade conflicts: A dynamic and heterogeneous perspective
Abstract: 
 We build a dynamic and heterogeneous firm-level model that embodies joint decisions to export and innovate and allows both decisions to affect the firm’s production growth. We calibrate the model based on Chinese manufacturing firm data from 2005 to 2007 and find that: (1) the industry dynamics are driven by both self-selection and learning-by-exporting mechanisms, in which firms’ exports and innovation work in tandem, (2) an increasing tariff causes much a bigger negative impact than an increasing entry cost, and (3) the negative impacts of a trade conflict heavily depend on its severity as well as timing.
Journal: The Journal of International Trade & Economic Development
Pages: 773-792
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2136736
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2136736
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# input file: RJTE_A_2136737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel Sakyi
Author-X-Name-First: Daniel
Author-X-Name-Last: Sakyi
Author-Name: Clement Agonyim Asaana
Author-X-Name-First: Clement Agonyim
Author-X-Name-Last: Asaana
Author-Name: Enock Kojo Ayesu
Author-X-Name-First: Enock Kojo
Author-X-Name-Last: Ayesu
Title: How does quality of institutions affect the impact of technology adoption on export performance in Africa?
Abstract: 
 This paper investigates the role of technology adoption and quality of institutions on the export performance of African countries. Data on 49 African countries for the period 1995–2019 is used while the two-step system generalized method of moment estimation technique is employed for analyses. The results reveal that, in both the short run and long run, technology adoption and quality of institutions are crucial in driving export performance in Africa. More importantly, our results clearly show that, in both periods, quality of institutions serve as important channel through which technology adoption has its largest positive impact on export performance in Africa. Based on these outcomes, policies designed to improve the technology adoption and quality of institutions would be beneficial to the performance of exports in African countries.
Journal: The Journal of International Trade & Economic Development
Pages: 743-772
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2136737
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2136737
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# input file: RJTE_A_2138507_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yue Jin
Author-X-Name-First: Yue
Author-X-Name-Last: Jin
Title: The impact of FTAs on export duration: Evidence from China’s agricultural firms
Abstract: 
 A growing body of literature has emerged on the links between free trade agreement (FTA) and agricultural export margins. As a key component of intensive margins, export survival and duration play essential roles in long-term and sustainable export growth. We investigated the impact of FTAs on agricultural export duration from the perspective of firm-destination pair. Based on highly disaggregated firm-level panel data of Chinese agricultural exporters covering the period of 2000–2016, we applied the proper survival method to empirically analyze the effect of FTA on export duration and survival. The results identify dynamic export stylized facts among firm-destination country pairs: although most of the agricultural firm-destination export relations demonstrated longer duration than those of other industries in China, they were still short-lived. Most importantly, we confirmed that FTA produced two opposite effects: Compared to non-FTA partners, the FTA membership role helps extend the length of export duration for agricultural export relation in general. However, for newly created relations, the implementation of FTA increased the hazard rate of export failure and shortened the length of duration. Our results cast a new light on firm-level export survival issue and FTA policy, and provide implications for both agricultural exporters and policymakers.
Journal: The Journal of International Trade & Economic Development
Pages: 793-823
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2138507
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2138507
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# input file: RJTE_A_2132278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jisheng Yang
Author-X-Name-First: Jisheng
Author-X-Name-Last: Yang
Author-Name: Yingxin Kou
Author-X-Name-First: Yingxin
Author-X-Name-Last: Kou
Title: Multiple shocks and the external market structure of China’s manufacturing industry
Abstract: 
 This study examines multiple shocks to the external market of China’s manufacturing industry based on a trade model with multi-level unobserved factors. We find that the global external market of main industries is suffering constant downward shocks since 2008, while the traditional (non-traditional) markets are further affected by downward (upward) shocks. Private enterprises are more sensitive to shocks. Further, the adjustment of US trade policy toward China has caused China’s exports to the US to deviate from the normal path by around 10% from 2015 to 2019, while having no significant effect on China’s exports to the other traditional markets.
Journal: The Journal of International Trade & Economic Development
Pages: 679-704
Issue: 5
Volume: 32
Year: 2023
Month: 07
X-DOI: 10.1080/09638199.2022.2132278
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2132278
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# input file: RJTE_A_2146736_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Canfei He
Author-X-Name-First: Canfei
Author-X-Name-Last: He
Author-Name: Sheng Jiang
Author-X-Name-First: Sheng
Author-X-Name-Last: Jiang
Author-Name: Xuqian Hu
Author-X-Name-First: Xuqian
Author-X-Name-Last: Hu
Title: The effects of trade intermediaries on firms’ export market diversification: Evidence from China
Abstract: 
 The effects of trade intermediaries on firms’ export market diversification have not been explored sufficiently. Inspired by some evidence of trade intermediaries, we argue that they can positively and negatively affect firms’ export market diversification. They can facilitate market entry by transferring knowledge. However, they also deter firms’ market entry by setting up discriminatory market barriers. Using a merged dataset from Chinese Customs Trade Statistics (CCTS) and China’s Annual Surveys of Industrial Firms (ASIF), we identify the mixed effects of trade intermediaries.
Journal: The Journal of International Trade & Economic Development
Pages: 973-989
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2146736
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# input file: RJTE_A_2139403_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rihab Bousnina
Author-X-Name-First: Rihab
Author-X-Name-Last: Bousnina
Author-Name: Foued Badr Gabsi
Author-X-Name-First: Foued Badr
Author-X-Name-Last: Gabsi
Title: The threshold effect of public debt on the twin imbalances: Evidence from MENA countries
Abstract: 
 The study explains the non-linear relationship between total public debt and twin imbalances, across a panel of 15 countries in the MENA (Middle East and North Africa) region from 2003 to 2019. A panel data threshold model with fixed effects proposed by Hansen (1999) estimates two debt-to-GDP thresholds (36.71% and 72.99%), which determine three debt-to-GDP intervals in the twin relationship. Our findings show two interesting results. First, if the level of public debt to GDP is less than 36.71%, the model determines a negative relationship between the budget balance and the current account. Twin deficits are confirmed exclusively if debt-to-GDP is in the interval between 36.71% and 72.99%. A twin divergence is also confirmed if public debt-to-GDP is more than 72.99% (e.g. as in Egypt and Lebanon). The results of this study show that there is not a single debt threshold applicable to all MENA countries, and the regression results are robust for different specifications and estimation techniques. As a result, policymakers may be able to adjust the current account deficit by lowering the public-debt ratio, reducing government-funded sterile programs, and implementing appropriate austerity measures to mitigate the effects of the financial crisis.
Journal: The Journal of International Trade & Economic Development
Pages: 878-901
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2139403
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2139403
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# input file: RJTE_A_2139405_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Obumneke Bob Muoneke
Author-X-Name-First: Obumneke Bob
Author-X-Name-Last: Muoneke
Author-Name: Kingsley Ikechukwu Okere
Author-X-Name-First: Kingsley Ikechukwu
Author-X-Name-Last: Okere
Author-Name: Favour Chidinma Onuoha
Author-X-Name-First: Favour Chidinma
Author-X-Name-Last: Onuoha
Title: Extreme exchange rate dynamics and export trade in the selected oil-exporting countries in Africa. Multiple asymmetric threshold non-linear ARDL approach
Abstract: 
 This study examines the impact of extremely small and extreme large variations in the exchange rate on export trade of selected oil-exporting countries in Africa over the period 1981Q1–2020Q4. The standard non-linear ARDL provides inconsistency among the estimates, shows the unreliable diagnostic test, and cannot account for the effects of extreme variations in the exchange rate. Multiple asymmetric threshold non-linear ARDL is more superior and revealed a robust long-run asymmetric between exchange rate variation and export with the exclusion of Nigeria (symmetric) and short-run asymmetric for all the countries. On the parameter estimates, the findings indicate that the effects of extremely large changes in the exchange rate major and minor appreciation/depreciation significantly differ from the effects of extremely small changes in the exchange rate on export trade which is linked to exchange rate practices in various countries. However, the effects on the short-run show a great deal of inconsistency across the quantile. In contrast, Algeria is unaffected by exchange rate major/minor variations in all quantiles of positive and negative shocks. Consequently, policy implications for the selected countries are discussed within the manuscript.
Journal: The Journal of International Trade & Economic Development
Pages: 854-877
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2139405
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2139405
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# input file: RJTE_A_2139855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Hrushikesh Mallick
Author-X-Name-First: Hrushikesh
Author-X-Name-Last: Mallick
Author-Name: Shreya Pal
Author-X-Name-First: Shreya
Author-X-Name-Last: Pal
Title: Does financial development foster economic globalization in emerging economies? Time series evidence from China and India
Abstract: 
 This study explores the role of financial development in economic globalization for India and China by controlling economic growth, institutional quality, inflation, government investment, and real interest rate as crucial determinants. Using annual time series data from 1984 to 2018, the long-run estimates from ARDL model reveal that financial development, institutional quality, and government investment significantly drive economic globalization. We also find that the inflation rate offsets economic globalization in India but promotes it in China. Interestingly, while economic growth promotes economic globalization in India, it impedes in China. The varying effects of real interest rates on economic globalization are observed in both economies. These findings offer key macroeconomic policy.
Journal: The Journal of International Trade & Economic Development
Pages: 902-929
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2139855
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2139855
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# input file: RJTE_A_2141827_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chaokai Xu
Author-X-Name-First: Chaokai
Author-X-Name-Last: Xu
Author-Name: Hongman Liu
Author-X-Name-First: Hongman
Author-X-Name-Last: Liu
Title: Export tax rebates and enterprise export resilience in China
Abstract: 
 This paper discusses the micro effect of export stimulus policy. We use the seven rounds of export tax rebates implemented by the Chinese government during the international financial crisis as a natural experiment and explore their impact on the export resilience of firms using the difference-in-differences approach. We find that the export resilience of Chinese enterprises increased by 0.027 standard deviations due to export tax rebates. Further studies confirm that export tax rebates significantly improve export resilience mainly by reducing value-added taxes, expanding production scale, and accelerating the adjustment of export structure. In addition, the positive effect of export tax rebates varies among enterprises and products. These results highlight the critical role of stimulative policies in promoting export resilience.
Journal: The Journal of International Trade & Economic Development
Pages: 953-972
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2141827
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2141827
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# input file: RJTE_A_2140359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chi-Hui Wang
Author-X-Name-First: Chi-Hui
Author-X-Name-Last: Wang
Author-Name: Prasad Padmanabhan
Author-X-Name-First: Prasad
Author-X-Name-Last: Padmanabhan
Author-Name: Chia-Hsing Huang
Author-X-Name-First: Chia-Hsing
Author-X-Name-Last: Huang
Title: The impact of financial crises on the relationship between imports, exports, and consumption-based CO2 emissions: Do country income levels matter?
Abstract: 
 Unlike most extant research that uses production-based CO2 emissions to examine the links between exports/imports and CO2 emissions, in this paper we use consumption-based CO2 emissions to examine the impact of the 2008 global financial crises on the stated relationship for a select sample of countries arranged by income levels. Using the common correlated effects estimator methodology and annual data over the 1990–2019 period, we examine the impact of the 2008 crisis on the stated relationship for a group of high-income, upper middle-income, and lower middle-income countries. Our results suggest that the global financial crisis significantly altered the high-income and lower middle-income countries in terms of the relationship between exports and pollution. The crisis also impacted the lower middle-income countries in terms of the imports/pollution relationship. These findings suggest that a country’s income level is important when considering the relationship between exports/imports and pollution following a crisis.
Journal: The Journal of International Trade & Economic Development
Pages: 930-952
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2140359
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2140359
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# input file: RJTE_A_2144932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oguzhan Bozatli
Author-X-Name-First: Oguzhan
Author-X-Name-Last: Bozatli
Author-Name: Harun Bal
Author-X-Name-First: Harun
Author-X-Name-Last: Bal
Author-Name: Murat Albayrak
Author-X-Name-First: Murat
Author-X-Name-Last: Albayrak
Title: Testing the export-led growth hypothesis in Turkey: New evidence from time and frequency domain causality approaches
Abstract: 
 This study investigates the validity of Turkey's export-led growth hypothesis (ELG) with the time domain and frequency domain causality methods using quarterly data for the 1998Q1–2021Q4 period. We also test whether government expenditure is an important channel within the framework of the ELG hypothesis. The time-domain causality results indicate that the feedback and import-led growth (ILG) hypotheses are valid. The frequency-domain causality results imply that the hypothesis of the growth-led export (GLE) is valid. Therefore, the time and frequency domain causality findings indicate that the ELG hypothesis is invalid. Turkey, which has followed an export-oriented industrialization strategy since 1980, is far from successful in this policy. Therefore, policymakers need to revise Turkey's foreign trade strategy.
Journal: The Journal of International Trade & Economic Development
Pages: 835-853
Issue: 6
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638199.2022.2144932
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2144932
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# input file: RJTE_A_2155689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Serdar Ongan
Author-X-Name-First: Serdar
Author-X-Name-Last: Ongan
Author-Name: Huseyin Karamelikli
Author-X-Name-First: Huseyin
Author-X-Name-Last: Karamelikli
Author-Name: Ismet Gocer
Author-X-Name-First: Ismet
Author-X-Name-Last: Gocer
Title: The alternative version of J-curve hypothesis testing: Evidence between the USA and Canada
Abstract: 
 This study aims to eliminate an embedded data bias in testing the J-curve hypothesis in relevant literature. In all previous trade models about the J-curve, the bilateral trade balance (BTB) ratio, as the dependent variable, is generated and used based on total exports data, i.e. as total exports over total import. However, total exports are the sum of domestic exports and re-exports, and some countries also re-export to their partners. Furthermore, the dynamics and impacts of changing exchange rates on export volumes of domestically produced goods may differ from those on re-exported goods. Therefore, in this study, in testing the asymmetric J-curve hypothesis, we, for the first time, re-define two new proposed forms of BTBs, namely, domestic-export-based J-curve hypothesis BTB and re-export-based J-curve hypothesis BTB, based on domestic exports and re-exports, respectively, for USA–Canada trade. The main finding shows that the numbers of industries that support the asymmetric J-curve concerning these two forms of BTBs are entirely different. While the J-curve is supported by domestic-export-based J-curve hypothesis BTB for 27 industries, it is supported by re-export-based J-curve hypothesis BTB for 38. This support is 22 for the total-export-based J-curve hypothesis BTB.
Journal: The Journal of International Trade & Economic Development
Pages: 1130-1185
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2155689
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2155689
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# input file: RJTE_A_2147211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Syed Nazrul Islam
Author-X-Name-First: Syed Nazrul
Author-X-Name-Last: Islam
Author-Name: Md. Shariful Islam
Author-X-Name-First: Md. Shariful
Author-X-Name-Last: Islam
Title: Friends or foe? The complementarity or substitutability of financial development and FDI, financial development, and trade openness on domestic investment
Abstract: 
 This paper examines the relationship between financial development and FDI and between financial development and trade openness in boosting domestic investment. Initially, this paper examined this issue for panel data sample of 161 countries over 1995–2018. Considering the issue of aggregation bias due to heterogeneous nature of countries in the sample, this complementarity or substitutability effect between financial development and FDI as well as financial development and trade openness have further been re-examined by using 129 developing country samples. Using panel fixed effects (FE) and two-step system GMM estimation technique, the empirical results demonstrate the substitutability between financial development and FDI as well as a substitutability relationship between financial development and trade openness in driving domestic investment. The results hold for both the samples and also in alternative measures of financial development and extended specifications.
Journal: The Journal of International Trade & Economic Development
Pages: 1083-1111
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2147211
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2147211
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# input file: RJTE_A_2146737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Binglin Gong
Author-X-Name-First: Binglin
Author-X-Name-Last: Gong
Author-Name: Haiwen Zhou
Author-X-Name-First: Haiwen
Author-X-Name-Last: Zhou
Title: The choice of technology and international trade
Abstract: 
 We study the impact of international trade on a firm’s technology choice in an infinite-horizon model. Banks engage in oligopolistic competition in providing capital for the manufacturing sector. Manufacturing firms also engage in oligopolistic competition and choose technologies with different levels of fixed and marginal costs. In the steady state, firms in a country with a larger market size or a more efficient financial sector choose more advanced technologies, and this country has a higher capital stock. The opening of international trade leads manufacturing firms to choose more advanced technologies and the steady-state capital stock increases.
Journal: The Journal of International Trade & Economic Development
Pages: 1035-1057
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2146737
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2146737
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# input file: RJTE_A_2149840_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bangkit A. Wiryawan
Author-X-Name-First: Bangkit A.
Author-X-Name-Last: Wiryawan
Author-Name: Harry Aginta
Author-X-Name-First: Harry
Author-X-Name-Last: Aginta
Author-Name: Al Muizzuddin Fazaalloh
Author-X-Name-First: Al Muizzuddin
Author-X-Name-Last: Fazaalloh
Title: Does GVC participation help industrial upgrading in developing countries? New evidence from panel data analysis
Abstract: 
 This paper assesses the impact of manufacturing global value chain (GVC) participation on industrial upgrading in developing countries. After constructing a novel manufacturing GVC dataset for 37 countries from 2001 to 2017, we apply panel fixed-effect estimation to evaluate whether value chain integration could lead to industrial upgrading. Our findings show that increasing participation in manufacturing GVC has led to structural change in the industrial sector. In the baseline model, we find a percentage rise in manufacturing GVC corresponds to 0.35–0.43% increase in the share of high-tech sector. Further analysis reveals that the upgrading channel is primarily derived from forward linkages, while backward linkages contribute in diminishing low-tech manufacturing activities. Our findings are robust under alternative estimation techniques. This linear transformation confirms earlier studies and thus highlights the critical role of GVC in promoting industrial upgrading in developing countries.
Journal: The Journal of International Trade & Economic Development
Pages: 1112-1129
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2149840
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2149840
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# input file: RJTE_A_2155690_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yajun Zhu
Author-X-Name-First: Yajun
Author-X-Name-Last: Zhu
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Author-Name: Qing Qin
Author-X-Name-First: Qing
Author-X-Name-Last: Qin
Title: Cleaner production regulation and firms’ ratio of domestic value added in exports: evidence from China’s cleaner production standards
Abstract: 
 As a life-cycle environmental policy aiming at a more thorough control of pollution, what is the economic impact of cleaner production regulation on firms? We identify the impact of cleaner production regulation on firms’ ratio of domestic value added in exports in a difference-in-differences framework with the quasi-natural experiment created by China’s industry-level Cleaner Productions Standards based on the Chinese Customs Transaction-level Trade Statistics dataset and Chinese Annual Survey of Industrial Firms dataset between 2002 and 2013. It shows that cleaner production regulation helps to improve firms’ ratio of domestic value added in exports. Meanwhile, firms’ productivity, factor inputs market maturity and intermediate inputs market maturity positively promote while pollution intensity negatively moderates the impact of cleaner production regulation on firms’ ratio of domestic value added in exports. These results imply that the implementation of the cleaner production regulation policy and the international competitiveness of domestic firms do not conflict.
Journal: The Journal of International Trade & Economic Development
Pages: 1186-1213
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2155690
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2155690
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# input file: RJTE_A_2147210_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Frederik Stender
Author-X-Name-First: Frederik
Author-X-Name-Last: Stender
Author-Name: Tim Vogel
Author-X-Name-First: Tim
Author-X-Name-Last: Vogel
Title: Murky trade waters: Regional tariff commitments and non-tariff measures in Africa
Abstract: 
 In several African regions, economic integration has successfully reduced tariff protection by freezing the opportunity to raise applied tariffs against fellow integration partners above those promised. We examine whether these regional tariff commitments have come at the expense of adverse side-effects on the prevalence of non-tariff trade barriers. Comparing the effects of applied tariff overhangs – the difference between MFN bound tariffs and effectively applied tariffs – towards all vis-à-vis African trading partners on SPS and TBT notifications of 35 African WTO members from 2001-2017, we find no general relationship between tariff overhangs and import regulation in our preferred model setting. Larger tariff overhangs specific to intra-African trade relations, however, increase the probability of SPS measures and TBT and thereby contrast with the common assumption of the former functioning as a flexible policy valve. We see the nature of Africa’s formal trade relations as an explanation for these findings. While regional tariff commitments have not only significantly moved African countries away from multilateral commitments, they have also sharply reduced their tariff policy space within Africa, thus seemingly leaving regulatory policy as one of the few legitimate options to level the playing field with the by far closest market competitors.
Journal: The Journal of International Trade & Economic Development
Pages: 1058-1082
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2147210
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2147210
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# input file: RJTE_A_2157463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Huaxin Wang-Lu
Author-X-Name-First: Huaxin
Author-X-Name-Last: Wang-Lu
Author-Name: Octasiano Miguel Valerio Mendoza
Author-X-Name-First: Octasiano Miguel
Author-X-Name-Last: Valerio Mendoza
Title: Job prospects and labour mobility in China
Abstract: 
 China's structural changes have brought new challenges to its regional employment structures, entailing labour redistribution. Until now, Chinese migration research with a forward-looking perspective and on bilateral longitudinal determinants at the prefecture city level is almost non-existent. This paper investigates the effects of job prospects on individual migration decisions across prefecture boundaries. To this end, we created proxy variables for wage and employment prospects, introduced reference-dependence to a dynamic discrete choice model, and estimated corresponding empirical specifications with a unique quasi-panel of 66,427 individuals from 283 cities during 1997–2017. To address multilateral resistance to migration resulting from the future attractiveness, we exploited various monadic and dyadic fixed effects. Multilevel logit models and two-step system GMM estimation were adopted for the robustness check. Our primary findings are that a 10% increase in the ratio of sector-based employment prospects in cities of destination to cities of origin raises the probability of migration by 1.281–2.185 percentage points, and the effects tend to be stronger when the scale of the ratio is larger. Having a family migration network causes an increase of approximately 6 percentage points in migratory probabilities. Further, labour migrants are more likely to be male, unmarried, younger, or more educated. Our results suggest that the ongoing industrial reform in China influences labour mobility between cities, providing important insights for regional policymakers to prevent brain drain and to attract relevant talent.
Journal: The Journal of International Trade & Economic Development
Pages: 991-1034
Issue: 7
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638199.2022.2157463
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2157463
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# input file: RJTE_A_2255700_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nguyen Thi Thu Huong
Author-X-Name-First: Nguyen Thi Thu
Author-X-Name-Last: Huong
Author-Name: Danbee Park
Author-X-Name-First: Danbee
Author-X-Name-Last: Park
Title: Impact of ICT development on bilateral intermediate input trade: Considering cross-country heterogeneity
Abstract: 
 This study investigates the impact of information and communication technology (ICT) on bilateral trade flows, focusing on intermediate inputs across 161 countries from 1990 to 2016. We utilize the Eora global supply chain input-output tables to distinguish trade in intermediate inputs from gross trade. By adopting the Poisson pseudo-maximum likelihood (PPML) estimator, we find that ICT promotes bilateral and intermediate input trade by lowering trade costs. Notably, the similarity in ICT development between home and host countries is positively associated with bilateral intermediate input trade. Furthermore, the positive effects of ICT on bilateral intermediate input trade are stronger in labor-abundant countries than in capital-abundant countries. We also find that the positive relationship becomes more significant in low-income countries than in high-income ones. Labor-abundant and low-income countries are expected to experience an increase in intermediate input trade through ICT development.
Journal: The Journal of International Trade & Economic Development
Pages: 1291-1311
Issue: 8
Volume: 32
Year: 2023
Month: 11
X-DOI: 10.1080/09638199.2023.2255700
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2255700
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# input file: RJTE_A_2253478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Samson Adeniyi Aladejare
Author-X-Name-First: Samson Adeniyi
Author-X-Name-Last: Aladejare
Title: How significant is trade, macroeconomic management, and economic integration for foreign indebtedness in West African countries?
Abstract: 
 The implications of trade, macroeconomic management, and economic integration for external debt have rarely been researched in public debt studies. Hence, the novelty of this study’s contribution to the literature hinges on identifying the significance of these factors in external debt accumulation for West African countries from 1981 to 2020. Methodologically, the study applied pooled mean group analytical approach due to its significance in identifying short-term heterogeneous effects. Empirical deductions from the study indicated that trade and economic integration would potentially trigger external debt accumulations in the short term, while the implication of macroeconomic management is neutral. However, the long-term quantified relations of trade and economic integration on external debt demonstrate a diminishing effect, while macroeconomic management has weak significance. The individual country short-term results indicated that trade enhanced the volume of external debt in almost all countries examined. Also, macroeconomic management and economic integration were revealed to have moderate and insignificant associations with external debt accumulation. Furthermore, this study affirmed that the role of financial sector uncertainty, political imbalance, insurgency, and disease outbreaks are accompanying exacerbating factors for foreign indebtedness in West African countries.
Journal: The Journal of International Trade & Economic Development
Pages: 1249-1270
Issue: 8
Volume: 32
Year: 2023
Month: 11
X-DOI: 10.1080/09638199.2023.2253478
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2253478
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# input file: RJTE_A_2255685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paul Awoa Awoa
Author-X-Name-First: Paul
Author-X-Name-Last: Awoa Awoa
Author-Name: Henri Atangana Ondoa
Author-X-Name-First: Henri Atangana
Author-X-Name-Last: Ondoa
Title: Natural resources and productivity growth in developing countries
Abstract: 
 Productivity growth has contributed significantly to boost living standards in many regions of the world. Concerns about certain emerging nations’ dependence on unprocessed natural resource exports have led some analysts to be sceptical about the possibilities for structural reform in resource-rich countries. We hope to contribute to the research on the nexus between natural resources and growth by examining the impact of the dependence on resources on TFP growth in 91 developing countries from 1980 to 2019. Findings demonstrate unequivocally that TFP growth is lower in resource-rich emerging nations. The results are robust to several tests, including additional control variables and the partition of resource reliance between point-source and diffuse-source resources. Furthermore, the establishment and maintenance of democratic and economic institutions enable resource-rich countries to avoid the curse.
Journal: The Journal of International Trade & Economic Development
Pages: 1271-1290
Issue: 8
Volume: 32
Year: 2023
Month: 11
X-DOI: 10.1080/09638199.2023.2255685
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2255685
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# input file: RJTE_A_2255908_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jean-Marc M. Kilolo
Author-X-Name-First: Jean-Marc M.
Author-X-Name-Last: Kilolo
Author-Name: Mamadou Mouminy Bah
Author-X-Name-First: Mamadou Mouminy
Author-X-Name-Last: Bah
Author-Name: Jean-Luc Namegabe Mastaki
Author-X-Name-First: Jean-Luc Namegabe
Author-X-Name-Last: Mastaki
Title: Does women empowerment foster export diversification? Evidence from a sample of developing countries
Abstract: 
 This paper contributes to the literature on the drivers of export diversification by tackling an issue that has received scant attention in this literature, that is, the effect of women empowerment on export product diversification in developing countries. The analysis focuses on a sample of 106 developing countries covering the period 2002–2018. The results suggest that women’s political empowerment and gender parity in secondary school enrolment have a positive effect on export diversification. On the contrary, gender vulnerable employment inequality and gender wage inequality have a negative effect on diversification. These findings suggest that policies targeting SDG 5 – gender parity and women empowerment – can potentially improve trade performance.
Journal: The Journal of International Trade & Economic Development
Pages: 1215-1248
Issue: 8
Volume: 32
Year: 2023
Month: 11
X-DOI: 10.1080/09638199.2023.2255908
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2255908
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# input file: RJTE_A_2260010_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mi Dai
Author-X-Name-First: Mi
Author-X-Name-Last: Dai
Author-Name: Qingyuan Du
Author-X-Name-First: Qingyuan
Author-X-Name-Last: Du
Author-Name: Yalin Liu
Author-X-Name-First: Yalin
Author-X-Name-Last: Liu
Author-Name: Jianwei Xu
Author-X-Name-First: Jianwei
Author-X-Name-Last: Xu
Title: The China trade shock and the European Union's employment
Abstract: 
 This paper analyzes the effect of trade with China on the European Union's industrial and regional employment. Built on a canonical multi-country Ricardian model, we identify and estimate the employment reallocation effect across fifteen EU countries with specific discussions on three channels: import penetration, direct export, and third-market competition vis-à-vis China. Data suggest that the adverse effects stemming from the import penetration and the third-market competition quantitatively dominate the positive effect from the export channel for the effect on the EU. In particular, the third-market competition channel is a key channel for understanding the impact of China trade shock on the EU market, accounting for about 46% and 36% of the total negative effect at the industry level and region level, respectively. Moreover, the third-market competition channel particularly influenced the relative employment growth of the worst-affected industries in the European market.
Journal: The Journal of International Trade & Economic Development
Pages: 1312-1340
Issue: 8
Volume: 32
Year: 2023
Month: 11
X-DOI: 10.1080/09638199.2023.2260010
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# input file: RJTE_A_2289221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: The Editors
Title: Best paper 2023
Journal: The Journal of International Trade & Economic Development
Pages: 1-1
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2024.2289221
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# input file: RJTE_A_2159059_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Shrimoyee Ganguly
Author-X-Name-First: Shrimoyee
Author-X-Name-Last: Ganguly
Author-Name: Rajat Acharyya
Author-X-Name-First: Rajat
Author-X-Name-Last: Acharyya
Title: Money, exchange rate and export quality
Abstract: 
 This paper theoretically examines the effect of an expansionary monetary policy on export quality and its ramifications on the aggregate employment of the unskilled workers in a competitive general equilibrium framework of a small open economy. Monetary policies are often pursued by the central bank of an economy to manage exchange rate fluctuations under a managed float regime, which may have adverse consequences for export-quality choices and thereby for export growth given the growing preference of buyers in richer nations for higher qualities of imports. Under optimal allocation of wealth over a portfolio of cash, domestic assets and foreign assets, we show that an increase in the domestic money supply affects the choice of export-quality through larger investment, capital formation and consequent endowment effect and through changes in the nominal exchange rate. Under less price-elastic demand for a non-traded good, export quality is upgraded when quality upgrading is relatively capital (than skill) intensive. The expansionary monetary policy may raise aggregate employment of unskilled workers due to larger investment and capital formation, but may lower it through changes in the quality of the export good. The overall effect is thus ambiguous. A larger initial size of bequests has a similar effect.
Journal: The Journal of International Trade & Economic Development
Pages: 118-144
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2159059
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2159059
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# input file: RJTE_A_2164045_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Abidin Öncel
Author-X-Name-First: Abidin
Author-X-Name-Last: Öncel
Author-Name: Shukhrat Saidmurodov
Author-X-Name-First: Shukhrat
Author-X-Name-Last: Saidmurodov
Author-Name: Aziz Kutlar
Author-X-Name-First: Aziz
Author-X-Name-Last: Kutlar
Title: Financial development, export and economic growth: Panel data evidence from Commonwealth of Independent States
Abstract: 
 This study focuses on the relation of four different financial development indicators and export performance, sampled from nine member states of the Commonwealth of Independent States, with economic growth for the period of 1995–2020. Its long-run relationship with PVAR analysis has been presented through VECM. The FMOLS and DOLS methods are used for the long-term coefficient estimates. According to the findings, there is a cointegration relationship between economic growth and export, and broad money, domestic credit to the private sector by banks, and monetary sector credit to private sector variables. The findings indicate that both financial development and export have a positive impact on economic growth. On the other hand, the findings have not presented sufficient evidence about the influence of the gross capital formation variable on economic growth while the monetary sector credit to private sector variable has been found to negatively affect economic growth. When the results of FMOLS and DOLS models are assessed together, it is concluded that export and financial development affects economic growth positively in the long term, but the first one’s effect is less.
Journal: The Journal of International Trade & Economic Development
Pages: 29-56
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2164045
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2164045
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# input file: RJTE_A_2160785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Gabriel Galera
Author-X-Name-First: Gabriel
Author-X-Name-Last: Galera
Author-Name: Gilberto Joaquim Fraga
Author-X-Name-First: Gilberto Joaquim
Author-X-Name-Last: Fraga
Title: Product quality and export probability: Evidence from a large developing country
Abstract: 
 This study investigates the quality of Brazil’s exports to a group of countries and analyzes its implications. Using a micro-based index, we estimated a set of 15,114,700 observations, comprising 5230 products classified at the harmonized system 6-digit level and 170 countries from 2002 to 2018. We estimated quality using two-stage least squares and an auxiliary regression. We also calculated potential quality indices as a proxy for cutoff conditions, considering varieties outside the market. This variable may represent a product's minimum quality to export to a new destination. These estimations can help policymakers, or even exporters, to identify which varieties have more chances to penetrate new markets, considering the country’s characteristics. Based on these results, we regressed a probit panel model. The coefficients indicate higher-quality exports having greater chances of reaching new markets and export survival, while the cutoff conditions reduce such probabilities. Moreover, the results show robustness between homogenous and differentiated products.
Journal: The Journal of International Trade & Economic Development
Pages: 145-164
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2160785
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2160785
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# input file: RJTE_A_2159060_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Quang Hai Nguyen
Author-X-Name-First: Quang Hai
Author-X-Name-Last: Nguyen
Title: The influence of key economic globalization factors on economic growth and environmental quality: An empirical study in Southeast Asian countries
Abstract: 
 This study examines the important manifestations of economic globalization, such as increased international trade, inward foreign direct investment (FDI), and air passenger transport (PAX) on economic growth and environmental quality in Southeast Asian countries. The results of data analysis for the period 1990–2019 using the panel autoregressive distributed lag model (ARDL) have confirmed the long run impact of these factors on economic growth and environmental quality (the reduction of CO2 emissions into the environment per unit of production) in Southeast Asia. Furthermore, international trade and PAX positively affect economic growth in both groups of lower-middle-income countries and upper-middle and high-income countries. Inward FDI, however, only has a positive effect on economic growth for the group of lower-middle-income in the short run. In the long run, it has a negative impact. On the other hand, when the manifestations of economic globalization increase, they lead to an increase in CO2 emissions, but there is a decrease in this ratio per unit of production in the long run and in most countries in the short run. These findings are the basis for making economic growth and environmental quality improvements in different regions and countries of Southeast Asia.
Journal: The Journal of International Trade & Economic Development
Pages: 57-75
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2159060
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2159060
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# input file: RJTE_A_2159057_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Yanyan Sun
Author-X-Name-First: Yanyan
Author-X-Name-Last: Sun
Author-Name: Song Zhang
Author-X-Name-First: Song
Author-X-Name-Last: Zhang
Author-Name: Kunling Zhang
Author-X-Name-First: Kunling
Author-X-Name-Last: Zhang
Title: The impact of China’s outward foreign direct investment on its export similarity with belt and road countries
Abstract: 
 This study investigates the impact of China’s outward foreign direct investment (OFDI) on the export similarity (EXSI) between China and the countries along the Belt and Road by using an unbalanced panel dataset involving 64 Belt and Road countries (BRCs) from 2003 to 2018. The empirical analysis indicates that China’s OFDI has a positive impact on the EXSIs of commodities as a whole. Specifically, it finds that Chinese OFDI has a positive impact on the EXSI of primary products but has a negative impact on the EXSIs of resource-based manufactures, low-technology manufactures, and medium-skill/high-skill and technology-intensive manufactures. Furthermore, by classifying the BRCs into resource-rich, low-income, and high-income groups, we find that China’s OFDI reduces the EXSIs of resource-intensive manufactures in resource-rich BRCs, low-technology manufacturesin low-income BRCs, and high-skill and technology-intensive manufactures in high-income BRCs. This finding is generally consistent with the resource endowments and comparative advantages of China and the BRCs. In addition, we find that since the launch of the Belt and Road Initiative, China’s OFDI has not only increasingly fostered the export dissimilarity (specialisation) of resource-intensive manufactures and labour-intensive manufactures between China and BRCs but also promoted the export upgrading of BRCs.
Journal: The Journal of International Trade & Economic Development
Pages: 76-117
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2159057
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# input file: RJTE_A_2160786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Arundhati Sinha Roy
Author-X-Name-First: Arundhati
Author-X-Name-Last: Sinha Roy
Author-Name: Anwesha Aditya
Author-X-Name-First: Anwesha
Author-X-Name-Last: Aditya
Author-Name: Siddhartha Chattopadhyay
Author-X-Name-First: Siddhartha
Author-X-Name-Last: Chattopadhyay
Title: Determinants of service trade: How information and communication technology-based services are different?
Abstract: 
 The present paper examines the determinants of ICT-enabled service trade, in particular, the relative importance of human and physical capital. The analysis is carried out for 45 major service trading countries as well as for separate country groups classified based on ICT-service trade balance. It is found that mobile connectivity, foreign investment, world demand, growing manufacturing sector, and more favourable business environment are important determinants of net ICT-enabled service exports. The result is in contrast with traditional services like travel and transportation. Broadband connection, as well as mobile, has a significant impact on net export of travel and transportation. Better human capital is favourable for services overall whereas, travel-transport sector engages low-skilled workers. The results have important policy implications for developing countries constrained by the availability of human and physical capital. The service sector, especially ICT-enabled services, can play a critical role in the post-pandemic recovery by generating employment opportunities and ensuring stable foreign exchange earnings.
Journal: The Journal of International Trade & Economic Development
Pages: 2-28
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638199.2022.2160786
File-URL: http://hdl.handle.net/10.1080/09638199.2022.2160786
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# input file: RJTE_A_2169745_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xian-nan Cheng
Author-X-Name-First: Xian-nan
Author-X-Name-Last: Cheng
Author-Name: Shu-hui Wen
Author-X-Name-First: Shu-hui
Author-X-Name-Last: Wen
Author-Name: Na Ma
Author-X-Name-First: Na
Author-X-Name-Last: Ma
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Title: Inter-and intra-Asian regional value chains: Identifying country characteristics
Abstract: 
 Based on the decomposition of trade-related production activities in the global value chain, we analyze the characteristics of Asian countries from inter- and intra- Asian regional value chain (ARVC) perspectives between 2009 and 2019. Then, we investigate how Asian countries’ inter- and intra-ARVC positions influence their gross output in the global value chain. The results illustrate that the inter-ARVC position is positively correlated to the gross output for countries with large economies of scale. Furthermore, the inter-ARVC position is employed as the threshold variable to evaluate Asian countries’ performance in the intra-ARVC. When their inter-ARVC position is below the threshold value, increasing the intra-ARVC position cannot increase their gross output for all Asian countries. Countries with large economies of scale could benefit through intra-ARVC with a higher threshold value of inter-ARVC position compared with countries with small economies of scale.
Journal: The Journal of International Trade & Economic Development
Pages: 223-253
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2169745
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2169745
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# input file: RJTE_A_2169744_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Amirah El-Haddad
Author-X-Name-First: Amirah
Author-X-Name-Last: El-Haddad
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Storm survivors: Evidence from firms in times of pandemic
Abstract: 
 The COVID-19 outbreak has had severe economic consequences across the globe. The crisis emanating from the pandemic has caused demand and supply side shocks, more far reaching than any crisis in living memory. We use a new data set from the 2020/21 Egyptian Industrial Firm Behavior Survey to examine determinants of firms’ resilience during the pandemic. Crisis present the opportunity for what Schumpeter (In Economics of the Recovery Program, McGraw-Hill, 1934) calls creative destruction. Have manufacturing firms been all hit by the crisis equally, or were less efficient firms more likely to exit or downsize their activities thereby ‘cleansing’ the market? Two sets of factors affect firm dynamics and survival: (1) firms’ innate characteristics and; (2) firm behavior, which captures the extent to which good management, innovation, the adoption of advanced technologies and worker training, have provided an opportunity for firms to adapt their business models and show greater resilience in coping with the crisis. We illustrate the vulnerability of private, smaller, informal firms and those that are not located in industrial zones. Second, pre-COVID behavioral characteristics matter for firm dynamics. The food sector and sectors identified as ‘COVID sectors’ show more resilience. Some behavioral traits vary by sector and are more influential depending on firm size.
Journal: The Journal of International Trade & Economic Development
Pages: 165-198
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2169744
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2169744
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# input file: RJTE_A_2175307_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Chun Liao
Author-X-Name-First: Chun
Author-X-Name-Last: Liao
Author-Name: Weiguo Zhang
Author-X-Name-First: Weiguo
Author-X-Name-Last: Zhang
Title: The role of English as a lingua franca in FDI: Evidence from China
Abstract: 
 This paper examines the impact of English as a lingua franca on FDI by using the bilateral FDI data between China and 36 OECD countries. We find that English as a lingua franca significantly promotes FDI between China and OECD countries; the impact of English proficiency on outward FDI is greater than that on inward FDI in China; the improvement of English proficiency is more conducive to promoting China’s FDI with non-English-speaking countries than with English-speaking countries. Our findings suggest that English can be an effective lingua franca to remove language barriers in FDI for developing countries, especially when the investing partners are high-income and non-English-speaking countries.
Journal: The Journal of International Trade & Economic Development
Pages: 294-315
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2175307
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2175307
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# input file: RJTE_A_2168297_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Roger Hosein
Author-X-Name-First: Roger
Author-X-Name-Last: Hosein
Author-Name: Nirvana Satnarine-Singh
Author-X-Name-First: Nirvana
Author-X-Name-Last: Satnarine-Singh
Author-Name: George Saridakis
Author-X-Name-First: George
Author-X-Name-Last: Saridakis
Title: Analyzing the trade potential of SIDs with a focus on CARICOM’s small resource exporters
Abstract: 
 For developing economies, exporting broadens the horizon for facilitating effective integration into the global economy and improving overall competitiveness. While small developing states are particularly at high risk given their fundamental characteristics, the expected impact of these exogenous shocks on small resource dependent economies are amplified given the high possibility of lower levels of diversification. This paper therefore assesses the determinants of exports and exporting potential of SIDS (small island developing states) with a focus on Caribbean resource-based countries. Using non resource exports, in an aggregate and disaggregate form, as the dependent variable, the traditional gravity model was augmented to include a revealed comparative advantage (RCA) index, the real effective exchange rate (REER) of the exporter and the export sophistication (EXPY) index. The main findings indicate that an appreciation of the REER has an inverse impact on exports of non-resource commodities and that trade according to comparative advantage and differences in export sophistication occurs mainly in the agricultural sector.
Journal: The Journal of International Trade & Economic Development
Pages: 199-222
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2168297
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2168297
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# input file: RJTE_A_2175306_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Radovan Kastratović
Author-X-Name-First: Radovan
Author-X-Name-Last: Kastratović
Title: The impact of foreign direct investment on agricultural exports: The evidence from developing countries
Abstract: 
 In this paper, we examine how foreign direct investment inflows in agriculture affect the agricultural exports of developing countries. The main objective of our analysis is to identify and quantify the export effects of foreign direct investment in the sector, as well as the effects of other relevant export determinants, and to explore the possible long-run relationship between the variables. Using panel data on 80 developing countries observed in the period 2005-2017, we employ the system-generalised method of moments and the method of quasi-maximum likelihood to estimate a dynamic agricultural exports model. Additionally, we test for the cointegration between exports and foreign direct investment using the Pedroni and Kao approaches. We find that foreign direct investment inflows have a positive impact on agricultural exports in the analysed countries in both the short run and the long run. Thereby, we identified the significance of both direct and spillover export effects. This implies that the liberalisation and promotion of foreign investment in agriculture could alleviate the problems of capital scarcity and constraints in developing countries and increase their agricultural export competitiveness.
Journal: The Journal of International Trade & Economic Development
Pages: 276-293
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2175306
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# input file: RJTE_A_2175592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Oasis Kodila-Tedika
Author-X-Name-First: Oasis
Author-X-Name-Last: Kodila-Tedika
Author-Name: Sherif Khalifa
Author-X-Name-First: Sherif
Author-X-Name-Last: Khalifa
Title: Official visits and foreign direct investment
Abstract: 
 This paper examines the effect of official visits by U.S. Presidents and Secretaries of State on foreign direct investment inflows. The key difficulty in determining a causal effect is the issue of endogeneity. To address potential endogeneity, we use the Endogenous Treatment model (ETM). The estimation results provide evidence that the official visits of U.S. Presidents have a statistically significant positive effect on both foreign investment inflows from the U.S. and on total foreign direct investment inflows. This is robust even after the inclusion of other control variables identified by the literature as confounding factors for foreign direct investment. When we examine the effect of different types of visits, the results show that bilateral meetings during the official visits of U.S. Presidents have a statistically significant positive effect on both foreign investment inflows from the U.S. and total foreign direct investment. These results imply that the visits of U.S. Presidents offer a signal of the confidence of American administrations in the host country, which may in turn encourage American and non-American firms to invest in that country.
Journal: The Journal of International Trade & Economic Development
Pages: 316-342
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2175592
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2175592
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# input file: RJTE_A_2171476_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kevin Williams
Author-X-Name-First: Kevin
Author-X-Name-Last: Williams
Title: The impact of trade on schooling over the last five decades in developing countries
Abstract: 
 I use an instrumental variables design to estimate the effect that trade has on schooling in developing countries by exploiting a panel model with over 50 years of data. I find that trade reduces schooling at all levels in developing countries. Female education more than male tends to be more responsive to the adverse effect of trade in developing countries. Trade has negative influence on schooling for both prime working age and older cohorts. The adverse effect of trade is more pronounced with imports than exports, and trade exerts differential response from schooling between developing countries and high-income countries. I provide further evidence that the trade-schooling relationship operates through fertility. These results inform the debate about the role of globalization in human capital formation in developing countries.
Journal: The Journal of International Trade & Economic Development
Pages: 254-275
Issue: 2
Volume: 33
Year: 2024
Month: 02
X-DOI: 10.1080/09638199.2023.2171476
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2171476
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# input file: RJTE_A_2185460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fevzi Ölmez
Author-X-Name-First: Fevzi
Author-X-Name-Last: Ölmez
Author-Name: Dilek Durusu-Ciftci
Author-X-Name-First: Dilek
Author-X-Name-Last: Durusu-Ciftci
Title: Asymmetric effects of exchange rate on bilateral tourism trade balance: evidence from Turkey
Abstract: 
 As an emerging economy, Turkey has experienced a significant structural transformation in the last twenty years. Within this period, Turkey has increased to the eleventh rank for international tourist arrivals in the world (UNWTO 2023). However, in recent years, there has been a rapid depreciation of the national currency, raising the question of how this affects the tourism trade. Using bilateral data and considering non-linearities, we investigate the exchange rate-tourism balance nexus for Turkey and its most tourist sender partners by applying ARDL and NARDL modelling. We find that (i) when the Turkish Lira (TL) appreciates, the tourism balance is positively affected in the German and UK models in the short-run and in the Russian and Netherlands models in the long-run; (ii) the depreciation of the TL, on the other hand, has a positive effect on the tourism balances for France and the UK in the short-run. Therefore, either the increase or decrease in the exchange rate (except for Russia in the short-run) affects the tourism balance insignificantly or positively. These findings imply that policymakers should focus more on country-specific tourism policies to attract more tourists to the country rather than on exchange rate policies to manage the tourism balance.
Journal: The Journal of International Trade & Economic Development
Pages: 439-461
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2185460
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2185460
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# input file: RJTE_A_2187654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mumtaz Ahmad
Author-X-Name-First: Mumtaz
Author-X-Name-Last: Ahmad
Author-Name: Imtiaz Ahmad
Author-X-Name-First: Imtiaz
Author-X-Name-Last: Ahmad
Title: Tariff pass-through and implications for domestic markets: Evidence from U.S. steel imports
Abstract: 
 Recent studies report that during the U.S. trade war, the overall burden of tariffs has entirely passed on to U.S. firms and consumers in terms of higher import prices, but the pass-through is incomplete in the case of steel products. Using 10-digit import data from U.S. Customs for 2018–2019, contrary to the recent literature, we find that import tariff pass-through is complete for steel products. We also find significant and large supply chain adjustments following the imposition of tariffs. However, despite the supply chain adjustments, the overall imports of steel products, which moved in tandem with domestic steel consumption over the last ten years, exhibited a declining trend. The overall steel imports declined from 34.5 in 2017 to 26.3 million metric tons in 2019. During the same period, domestic production increased from 81.6 to 87.9 million metric tons, almost equal to the peak production the U.S. achieved in 2012 and 2014.
Journal: The Journal of International Trade & Economic Development
Pages: 482-496
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2187654
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2187654
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# input file: RJTE_A_2182606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nazia Gul
Author-X-Name-First: Nazia
Author-X-Name-Last: Gul
Author-Name: Javed Iqbal
Author-X-Name-First: Javed
Author-X-Name-Last: Iqbal
Author-Name: Misbah Nosheen
Author-X-Name-First: Misbah
Author-X-Name-Last: Nosheen
Author-Name: Mark Wohar
Author-X-Name-First: Mark
Author-X-Name-Last: Wohar
Title: Untapping the role of trade facilitation indicators, logistics and information technology in export expansion and diversification
Abstract: 
 An efficient and consistent logistics network, as well as a transparent facilitation mechanism of cross-border trade, are critical to the country's export competitiveness. The quality of logistics services has been identified as an important determinant of international trade. We use gravity models to assess the impact of the World Bank's Logistic Performance Index (LPI) on Pakistan's exports. The findings show that improving logistics is critical for increasing exports. Individual indicators such as reasonably priced shipments, the ability to track and trace shipments, and trade and logistical transit standards are instrumental in boosting export flows.
Journal: The Journal of International Trade & Economic Development
Pages: 369-389
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2182606
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2182606
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# input file: RJTE_A_2187653_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Suhua Tian
Author-X-Name-First: Suhua
Author-X-Name-Last: Tian
Author-Name: Li Wang
Author-X-Name-First: Li
Author-X-Name-Last: Wang
Title: Global spillover impact of US monetary shocks on China–based on empirical test of GVAR model
Abstract: 
 This paper builds an open country theoretical model to analyse the spillover impact of the US monetary policy tightening shock on China’s economy. GVAR empirical model is employed combined with 22 countries and obtain three main results. First, the US monetary tightening shock causes the rise of the international risk index and the bilateral real exchange rate (the appreciation of the US dollar and the depreciation of the RMB). Second, both China’s current account and China’s capital outflow show the increased trends combined with the weighted role of foreign economies. Third, as the negative effect of China’s capital outflow is higher than the positive effect of China’s current account, China’s real output declines caused by the US monetary tightening shock.
Journal: The Journal of International Trade & Economic Development
Pages: 462-481
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2187653
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2187653
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# input file: RJTE_A_2184657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Selçuk Akçay
Author-X-Name-First: Selçuk
Author-X-Name-Last: Akçay
Title: Frequency-domain and time-varying asymmetric Granger causality between real effective exchange rates and remittances in Mexico
Abstract: 
 The sheer size of remittances has fostered an interest in investigating the consequences of these flows, particularly in remittance-dependent economies. This study relies on monthly data from 1995M01 to 2021M05 and uses both frequency-domain and time-varying causality approaches to investigate the asymmetric causality relationships between real effective exchange rates and remittances in Mexico. Two key results are obtained. First, according to the frequency domain causality test results, positive shocks to remittances lead to appreciation in the Mexican peso in the medium- and long-run cycles, but negative shocks to remittances do not lead to depreciation in the Mexican peso, thus suggesting non-asymmetry. Second, the results of time-varying causality based on heterogeneous errors support asymmetric behavior between real effective exchange rates and remittances, underscoring the importance of allowing asymmetries when investigating the causal relationship.
Journal: The Journal of International Trade & Economic Development
Pages: 418-438
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2184657
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2184657
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# input file: RJTE_A_2179860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shuzhong Ma
Author-X-Name-First: Shuzhong
Author-X-Name-Last: Ma
Author-Name: Yuting Shen
Author-X-Name-First: Yuting
Author-X-Name-Last: Shen
Author-Name: Chao Fang
Author-X-Name-First: Chao
Author-X-Name-Last: Fang
Title: Can data flow provisions facilitate trade in goods and services? —Analysis based on the TAPED database
Abstract: 
 Data is a basic production factor in the digital economy era, and it creates value in the processes of flow, sharing, and processing. However, there are different attitudes toward data flow, and less attention has been paid to the impact of data flow provisions on international trade. Based on the Trade Agreements Provisions on Electronic-commerce and Data (TAPED) database, we evaluate the impact of data flow provisions on trade in goods and services. Our results show that the signing of provisions on the free flow of data plays a more significant role in promoting trade in services. This finding is robust to a wide range of tests, including parallel trend test, lagging one period, and placebo tests. Mechanism analysis shows that signing provisions on the free flow of data can promote the growth of goods trade by breaking through distance restrictions. From the perspective of trade in services, the effect of signing data free flow provisions varies according to the degree of Internet access in the destination country. In addition, data flow provisions have heterogeneous effects on international trade at the national and industry levels.
Journal: The Journal of International Trade & Economic Development
Pages: 343-368
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2179860
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2179860
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# input file: RJTE_A_2184648_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mufang Xie
Author-X-Name-First: Mufang
Author-X-Name-Last: Xie
Author-Name: Binbin Yu
Author-X-Name-First: Binbin
Author-X-Name-Last: Yu
Title: Global value chain participation and firm capacity utilization: Evidence from China
Abstract: 
 Based on firm- and customs transaction-level data from 2000 to 2006, this study employs the translog cost function to measure the capacity utilization of Chinese firms. It then uses a difference-in-differences (DID) model combined with propensity score matching (PSM) to examine the impact of global value chain (GVC) participation on capacity utilization. The empirical results show that GVC participation has a significant positive impact on firm capacity utilization and that this impact lasts for a long time. Our results are robust after considering several potential problems. Mechanism testing reveals that GVC participation improves firm capacity utilization by expanding market demand and promoting technological progress. Heterogeneity analysis shows that GVC participation has a more significant impact on general trade firms, private firms, high-tech industry firms and firms in the western region of China. This study reveals that GVC participation can effectively ameliorate China's overcapacity, providing new ideas for achieving overcapacity governance.
Journal: The Journal of International Trade & Economic Development
Pages: 390-417
Issue: 3
Volume: 33
Year: 2024
Month: 04
X-DOI: 10.1080/09638199.2023.2184648
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2184648
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# input file: RJTE_A_2201363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Socrates Kraido Majune
Author-X-Name-First: Socrates Kraido
Author-X-Name-Last: Majune
Author-Name: Kemal Türkcan
Author-X-Name-First: Kemal
Author-X-Name-Last: Türkcan
Author-Name: Eliud Moyi
Author-X-Name-First: Eliud
Author-X-Name-Last: Moyi
Title: How the African Continental Free Trade Area impacts firms’ export survival: Some lessons from Kenya
Abstract: 
 The potential benefits of the African Continental Free Trade Area (AfCFTA) have taken center stage in recent policy and scholarly debates. We contribute to this discussion by drawing insights from our assessment of the current levels of export survival across the following agreements: the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the overall economic integration agreement (EIA). Using monthly firm-product-destination customs transaction data from Kenya for the period January 2006 to December 2017, we find that the average duration of trading is longer under an agreement than when there is no agreement in place by 1.12 months. The mean duration of exporting under EAC exceeds that of COMESA by 1.47 months. The probit regression results with random effects reveal that trade agreements reduce the hazard rate for exports. However, the effect differs depending on the agreement’s depth and extent: The effect is negative for the EAC and positive for the COMESA. We also find that the ‘timing’ effect differs depending on the nature of the agreement. Overall, while the AfCFTA may expand market access, it might not guarantee low failure rates for exporters.
Journal: The Journal of International Trade & Economic Development
Pages: 574-597
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2201363
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2201363
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# input file: RJTE_A_2195958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fan Yang
Author-X-Name-First: Fan
Author-X-Name-Last: Yang
Author-Name: Yuxuan Wang
Author-X-Name-First: Yuxuan
Author-X-Name-Last: Wang
Author-Name: Unjung Whang
Author-X-Name-First: Unjung
Author-X-Name-Last: Whang
Title: Trade restrictions on digital services and the impact on manufacturing exports
Abstract: 
 In the digital age, digital services not only provide important intermediate inputs for manufacturing but they also affect the availability of other potentially ICT-enabled high-quality services as intermediate inputs. Therefore, it is particularly important and meaningful to explore the relationship between the liberalization of trade in digital services and manufacturing exports. This paper uses a panel dataset of bilateral exports of 15 manufacturing sectors in 54 countries, from 2014 to 2018, to examine the impact of digital services trade policy restrictions on exports of manufactured goods. The main results suggest that the impact of trade policy restrictions on manufacturing exports is mixed but mainly negative. Moreover, regulatory differences in digital services industries between bilateral country pairs also have a significant negative impact on the export performance of manufacturing industries. In addition, we further examine the heterogeneity of this impact mechanism across different policy areas, manufacturing sectors, and bilateral country-pair groups.
Journal: The Journal of International Trade & Economic Development
Pages: 523-550
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2195958
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2195958
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# input file: RJTE_A_2203784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Deniz Özyakışır
Author-X-Name-First: Deniz
Author-X-Name-Last: Özyakışır
Author-Name: Murat Akça
Author-X-Name-First: Murat
Author-X-Name-Last: Akça
Author-Name: Serhat Çamkaya
Author-X-Name-First: Serhat
Author-X-Name-Last: Çamkaya
Title: Do remittances have an asymmetrical effect on financial development? Empirical evidence from Turkey
Abstract: 
 The purpose of this study is to reveal the long- and short-term asymmetric effects of remittance, economic growth and inflation on Turkey's financial development using the 1974–2019 period data. For this purpose, long- and short-term asymmetric effects were investigated with the non-linear autoregressive distributed lag (NARDL) model. NARDL findings revealed that there are long- and short-term asymmetrical relationships among variables. Long-term findings show that increases in remittances and economic growth increased financial development, but increases in inflation reduced financial development. The short-term findings show that increases in remittances, economic growth and inflation increased financial development. In addition to ensuring macroeconomic stability, policy makers in Turkey should formulate regulations that encourage remittance entry in order to attract more remittances to the country and channel them into the financial system.
Journal: The Journal of International Trade & Economic Development
Pages: 598-617
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2203784
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2203784
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# input file: RJTE_A_2205967_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Dejene Adugna Chomen
Author-X-Name-First: Dejene
Author-X-Name-Last: Adugna Chomen
Author-Name: Richard Danquah
Author-X-Name-First: Richard
Author-X-Name-Last: Danquah
Author-Name: Fuzhong Chen
Author-X-Name-First: Fuzhong
Author-X-Name-Last: Chen
Title: The short-run and long-run impacts of foreign aid and remittances on economic growth: Evidence from African countries
Abstract: 
 This study examines the short-run and long-run impacts of foreign aid and remittances on economic growth in a panel of 31 African countries from 1980 to 2019 utilizing the ARDL Pool Mean Group (PMG) estimation technique. The PMG is utilized based on the outcome of the Hausman test which justifies it appropriateness. There is long-run association among the regressors and the regressand in the model. Our results indicate that, in the short-run, remittance and foreign aid respectively have a negative impact on economic growth but that impact is statistically insignificant. In the long-run, however, remittances have a positive and significant impact on economic growth while foreign aid has a positive but insignificant effect on economic growth on the continent. These results have substantial policy implications. African governments should adopt effective policies to maximize the usefulness and effectiveness of foreign capital, such as foreign aid and remittances, in boosting economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 644-664
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2205967
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2205967
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# input file: RJTE_A_2222416_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hea-Jung Hyun
Author-X-Name-First: Hea-Jung
Author-X-Name-Last: Hyun
Author-Name: Yong Joon Jang
Author-X-Name-First: Yong Joon
Author-X-Name-Last: Jang
Title: Exporters’ productivity and margins of trade deflection: theory and micro-evidence
Abstract: 
 This paper examines how firm heterogeneity plays a role in trade deflection effects when exporters exit trading partners’ markets with trade-restrictive measures and deflect exports toward third markets with less stringent ones. We develop a Cournot-type three-country theoretical framework that highlights the role of firm productivity in trade deflection effects of trade-restrictive measures and empirically examine research hypotheses using a firm–product–destination level panel data of Korean exporting firms during the 1996–2010 period. We find that highly productive firms facing higher tariffs are more likely to deflect export to new third-country markets with lower tariffs as alternatives. However, once they enter the third destination, the positive effect of tariffs on the deflection of trade volume is less prominent for highly productive firms due to a lower trade destruction effect for them. Our results imply that the magnitude of trade deflection at both the intensive and extensive margins can be heterogeneous across firm productivity and multi-destination status.
Journal: The Journal of International Trade & Economic Development
Pages: 665-693
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2222416
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2222416
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# input file: RJTE_A_2222418_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Dinabandhu Sethi
Author-X-Name-First: Dinabandhu
Author-X-Name-Last: Sethi
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Mei-Chih Wang
Author-X-Name-First: Mei-Chih
Author-X-Name-Last: Wang
Title: Revisiting the twin deficits hypothesis in the United States: Further evidence based on system-equation ADL test for threshold cointegration
Abstract: 
 We revisit the twin deficits hypothesis (budget and trade deficits) for the United States during 1791–2019, using the system-equation ADL test for threshold cointegration proposed by Li (2017). This model can demonstrate the existence of both asymmetric adjustment and asymmetric role in the relationship between trade and budget deficits. Our empirical evidence suggests a nonlinear long-run relationship between the two variables, thus finding the presence of the twin deficits hypothesis. Further, we find time–varying cointegration between the two, and an asymmetric adjustment process. Budget deficits play a vital adjustment role at low regimes (when error-correction terms are below the threshold of 1.11), and trade deficits play an important adjustment role at higher regimes (when error-correction terms are above the threshold of 1.11).
Journal: The Journal of International Trade & Economic Development
Pages: 723-737
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2222418
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2222418
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# input file: RJTE_A_2237131_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Betül Altay Topcu
Author-X-Name-First: Betül Altay
Author-X-Name-Last: Topcu
Author-Name: Sevgi Sümerli Sarıgül
Author-X-Name-First: Sevgi Sümerli
Author-X-Name-Last: Sarıgül
Author-Name: Mesut Doğan
Author-X-Name-First: Mesut
Author-X-Name-Last: Doğan
Title: Energy imports as inhibitor of economic growth: The role of impact of renewable and non-renewable energy consumption
Abstract: 
 This study investigates the role of energy imports in domestic production function in the case of 15 energy-importing countries for the period of 1995–2015. Apart from energy imports, renewable energy consumption, non-renewable energy consumption, capital, trade openness, and urbanization are included in the growth model. In doing so, long-run elasticity coefficients are estimated with the Dynamic Seemingly Unrelated Regressions (DSUR) model after determining the cointegration relationship between the variables. In addition, for robustness checks, Panel Correlated Standard Errors (PCSE) and Feasible Generalized Least Squares (FGLS) estimators are applied. Our results show that renewable energy consumption, non-renewable energy consumption, trade openness, and capital have a positive effect on economic growth. Energy imports negatively affect economic growth. The Dumitrescu-Hurlin causality analysis reveals a bidirectional causality relationship between renewable energy consumption, capital, trade openness, urbanization, and economic growth. A unidirectional causality relationship exists from economic growth to non-renewable energy consumption and energy imports. This analysis can be interpreted as having a negative impact on economic growth by putting pressure on the current account deficit due to energy imports. Therefore, investments in the renewable energy sector will play an important role in economic growth.
Journal: The Journal of International Trade & Economic Development
Pages: 497-522
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2237131
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2237131
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# input file: RJTE_A_2222417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zixuan Zhou
Author-X-Name-First: Zixuan
Author-X-Name-Last: Zhou
Author-Name: Kun Liu
Author-X-Name-First: Kun
Author-X-Name-Last: Liu
Title: Terrorist attacks, security concerns, and GVC positions – an empirical cross-country study based on industry heterogeneity
Abstract: 
 Based on the perspective of industry productivity, this article measures the sensitivities of different industries to external public security risks using stochastic frontier analysis, focusing on the relationship between the changes in industries’ production line positions triggered by terrorist attacks and the industries’ security risk sensitivities. We provide evidence that terrorist attacks have a significant adverse impact on the production line positions of global industries, and the strength of those positions’ reactions to terrorist attacks is determined by the degree of the industries’ security risk sensitivities. The reactions to terrorist attacks are nonmonotonic across industries’ security risk sensitivities, with the largest effects in industries near the seventy-fifth percentile of the distribution. This phenomenon is particularly pronounced in high-income and upper-middle-income countries, and also in regions with economic and trade cooperation agreements. A further decomposition analysis of the different production stages shows that complex global value chain (GVC) activities, especially those that involve domestic value-added re-exports to third countries, are more vulnerable to negative shocks from terrorist attacks.
Journal: The Journal of International Trade & Economic Development
Pages: 694-722
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2222417
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2222417
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# input file: RJTE_A_2203785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jean Tchitchoua
Author-X-Name-First: Jean
Author-X-Name-Last: Tchitchoua
Author-Name: Etienne Inedit Blaise Tsomb Tsomb
Author-X-Name-First: Etienne Inedit Blaise
Author-X-Name-Last: Tsomb Tsomb
Author-Name: Johny Madomo
Author-X-Name-First: Johny
Author-X-Name-Last: Madomo
Title: Export diversification and income inequality in Central Africa: An analysis of the employment channel
Abstract: 
 This paper analyses the effect of export diversification on income inequality in Central Africa through the employment channel. The sample consists of 9 countries over the period 2000–2019. A quadratic regression is applied to a panel data model using the random effect and the two stages least squares methods. The results show that export diversification increases income inequality in Central Africa. However, this effect is non-linear with the form of an inverted U. Increasing the number of wage workers reduces the marginal effect of export diversification on income inequality while increasing the number of unpaid workers increases this effect. Moreover, diversification is less likely to reduce income inequality when it increases male employment than when it increases female employment. The effect of diversification on income inequality remains non-linear in an inverted U-shape for CEMAC countries’ members (CEMAC: Economic and Monetary Community of Central African States) and oil-producing countries, while it is non-linear in a U-shape for non-CEMAC countries and non-oil-producing countries. We recommend that Central African countries promote the diversification of exports while encouraging new productive activities to generate more paid jobs and to favor female employment.
Journal: The Journal of International Trade & Economic Development
Pages: 618-643
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2203785
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2203785
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# input file: RJTE_A_2199437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Zhuoran Bai
Author-X-Name-First: Zhuoran
Author-X-Name-Last: Bai
Author-Name: Christopher Findlay
Author-X-Name-First: Christopher
Author-X-Name-Last: Findlay
Title: Value-added tax reform and service exports: Evidence from China
Abstract: 
 In 2012, sales tax was replaced in China with value-added tax (VAT). This study evaluates the effect of this change on service exports. VAT reform was introduced across provinces and service sectors at different times. Hence, our paper identifies the impacts of VAT reform on firms’ export behavior by utilizing a difference-in-difference (DID) estimation methodology and finds that VAT reform significantly increases service exports in intensive and extensive margins. The export-enhancing effects are larger for non-state-owned enterprises and firms of larger scale and higher productivity levels. VAT reform alleviates tax magnification and double taxation and effectively promotes the competitiveness of China's service exports. With the complete implementation of VAT reform, alongside the full refund of VAT on exported products, China's service exports would increase by approximately two-and-a-half times.
Journal: The Journal of International Trade & Economic Development
Pages: 551-573
Issue: 4
Volume: 33
Year: 2024
Month: 05
X-DOI: 10.1080/09638199.2023.2199437
File-URL: http://hdl.handle.net/10.1080/09638199.2023.2199437
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:jitecd:v:33:y:2024:i:4:p:551-573