{"title":"Oligopolistic eco-industries with free entry and trade liberalization of environmental goods","authors":"Yasuyuki Sugiyama, Yungho Weng, Kenzo Abe","doi":"10.5652/INTERNATIONALECONOMY.IE2019.02.YS","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2019.02.YS","url":null,"abstract":"In this paper, we assume two countries with trade of environmental goods (EGs), and then investigate the impacts of the emission tax, the tariff on imported EGs, and the subsidy for purchasing EGs. In our model, EGs are produced only in the exporting country, and the firms in the eco - industry which produces EGs engage in Cournot competition with free entry, while a polluting final goods sector in EGs’ importing country is perfectly competitive. Then, assuming the end of pipe pollution abatement in the polluting sector, we can obtain the following results: (I) Trade liberalization of EGs, that is, a decrease in the tariff on EGs and the subsidy for purchasing EGs increase the total output of EGs, and thus decrease the amount of emissions. (II) The impact of the subsidy on the price of EGs depends on the shape of the demand curve for EGs, while trade liberalization decreases the price. (III) The optimal emission tax level will be lower than the Pigouvian one if the level of the subsidy is higher than that of the tariff. (IV) The optimal tariff evaluating at the optimal emission tax level is negative, that is, the import subsidy can be optimal when the demand curve for EGs is linear or weak convex. (V) Under the same demand condition, the optimal purchasing subsidy is positive even when EGs’ importing country implements the optimal emission tax.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"78 3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87914663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cultural Diversity Within a Country and Cultural Similarity Between Countries:An Effect of International Trade","authors":"Yasukazu Ichino","doi":"10.5652/internationaleconomy/ie2019.04.yi","DOIUrl":"https://doi.org/10.5652/internationaleconomy/ie2019.04.yi","url":null,"abstract":"We present an evolutionary model of cultural change to investigate how international trade promotes a “cosmopolitan culture,” which is a mixture of local cultures. We find there is a stable stationary state in which both a cosmopolitan culture and a local culture coexist within a trading country. We interpret this as a theoretical reproduc-tion of what is often observed: cultural diversity within a country and cultural simi larity between countries. However, this result is dependent on the way in which parents transmit their cultural type to their children. When parents have perfect empathy with their children, local culture may go extinct due to international trade.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"25 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75459065","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Using Randomized Controlled Trials and Network Analysis in International Economics: An Introduction","authors":"Y. Todo","doi":"10.5652/INTERNATIONALECONOMY","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY","url":null,"abstract":"This article introduces two methodologies that can be largely useful to empirical analysis in international economics but have not been fully utilized in the field: randomized controlled trials and network analysis. These methods can con tribute to a number of topics in international economics including learning by exporting, FDI spillovers, and international diffusion of knowledge and economic shocks, correcting for biases due to endogeneity and specifying channels of diffu sion. composite measure of perceptions of exporting activity constructed from five questions such as how difficult it is to adapt products to make them suitable for exporting, and another measure of preparation for exporting activity constructed from six questions such as whether the firm had accessed any website for trade fairs. These questions for perception of and preparation for exporting activity are mostly taken from Breinlich et al. (2017). Information on these mea sures and other firm attributes was collected by face - to - face surveys at the firm level once before the experiment and twice after that.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"3 1","pages":"1-13"},"PeriodicalIF":0.0,"publicationDate":"2018-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89676647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ECB’s Quantitative Easing (QE) and Within the EU’s Inequality:Qualitative, not Quantitative Causal Inferences from Constructivism","authors":"Hirotaka Suzuki","doi":"10.5652/INTERNATIONALECONOMY.IE2018.02.HS","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2018.02.HS","url":null,"abstract":"This paper investigates the united monetary policy’s and especially QE’s effects on real economies mainly after the ECB’s additional QE implementation periods since December 2015 to January 2018, which is not covered by Suzuki (2016). Author employs the qualitative causal inference methods to verify potential hypotheses. Qualitative causal inferences are useful methods given appropriate sets of potential causal hypotheses are fully specified. ECB’s stimulus of quantity channel (QE channel) and consumption and private investment channel (escaping from balance sheet recession channel) enable Europe to escape from deflation and to promote economic expansion, which is the success of ECB’s united monetary policy so far.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"18 1","pages":"27-45"},"PeriodicalIF":0.0,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88786981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Internal Remittances, Vocational Training Costs and Rural-Urban Migration in Developing Countries","authors":"Dianshuang Wang","doi":"10.5652/INTERNATIONALECONOMY.IE2018.01.DW","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2018.01.DW","url":null,"abstract":"The paper develops a three - sector general equilibrium model to examine the consequences of an increase in vocational training costs on internal remittances in a small open dual economy. Using indirect utility functions, the paper endogenizes the internal remittances. The theoretical analysis shows that an increase in vocational training cost of the manufacturing sector decreases internal remittances and the proportion of remittances in migrants’ income. In addition, an increase in per capita training cost also contributes to expanding the informal sector and contracting the agricultural sector.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"1 1","pages":"15-26"},"PeriodicalIF":0.0,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89778789","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Self-Enforcing International Environmental Agreements among Asymmetric Countries and Welfare ∗","authors":"Yoko Sakamoto","doi":"10.5652/INTERNATIONALECONOMY.IE2017.04.YS","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2017.04.YS","url":null,"abstract":"Theoretical analyses of self-enforcing international environmental agreements (IEAs) have adopted the assumption of identical countries. In this paper, we assume that countries are asymmetric in terms of abatement technologies. By examining the IEA formation and total welfare, we show that i) the asymmetry leads to multiple sizes of self-enforcing IEAs, which corresponds to the multiple equilibria of a coalition formation game Maruta and Okada (2005); ii) technology transfer can lead to a smaller size of self-enforcing IEA, resulting in welfare loss. We also examine the rule of IEA and discuss that the unanimity rule plays an important role in IEA formation.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"48 1","pages":"71-89"},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89790754","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Machinery Production Networks and Import Tariff Evasion","authors":"M. Chang, Chin-Ho Lin","doi":"10.5652/INTERNATIONALECONOMY.IE2017.03.MC","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2017.03.MC","url":null,"abstract":"In this paper we followed Fisman and Wei’s (2004) approach to estimate the effects of import tariff rates on import tariff evasion. We focus on East Asian countries import of machinery products and our main objective is to test if the trade realized inside production networks (intra-regional) is less prone to import tariff evasion than imports from countries outside it (inter-regional). In this study we considered the differences in tariff evasion between intra and inter-regional imports; parts and components and final products; and the heterogeneity between electric machinery and transport equipment. The data provide evidences that intra-regional imports are less prone to tariff evasion than inter-regional imports. Besides this, we identify differences in the channels employed to evade tariff. The results suggest that underreport of quantities was the main channel employed in intra-regional imports tariff evasion, while inter-regional import tariffs were evaded through unit price misreport. JEL: F14, K42, H26","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"1 1","pages":"47-70"},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85415217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Macroeconomic Instability of a Capital Markets Union and Stability of a Fiscal Union in the Euro Area: Keynesian and Kaldorian Two-Country Models","authors":"M. Nakao","doi":"10.5652/INTERNATIONALECONOMY.IE2017.01.MN","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2017.01.MN","url":null,"abstract":"In this paper, we investigate the effect of fiscal transfers in a fiscal union in relation to a Capital Markets Union (CMU) for the euro area using Keynesian and Kaldorian two-country models with a monetary union and imperfect capital mobility. We find that an increase in capital mobility between countries in a CMU is a destabilizing factor, whereas an increase in fiscal transfers between such countries is a stabilizing factor. Fiscal transfers mitigate both the instability caused by an austerity policy and an increase in capital mobility in the spending and recipient countries in the fiscal transfer mechanism.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"14 1","pages":"13-46"},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81939229","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Empirical analyses of offshoring based on Japanese firm-level data:A survey","authors":"Eiichi Tomiura","doi":"10.5652/INTERNATIONALECONOMY.IE2017.02.ET","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2017.02.ET","url":null,"abstract":"This paper surveys empirical analyses of offshoring (offshore sourcing) based on Japanese firm - level data. Before the literature review, the background of recent active research on this topic is briefly overviewed by referring to increasing avail ability of microdata and the development of firm heterogeneity trade theory. The research topics covered in this paper include the relation with firm’s productivity, inter - firm networking, boundaries of firms, and the impact on employment. The data source used by each study is explained with special emphasis on Japanese unique data. The directions for future research is also suggested.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"24 1","pages":"1-12"},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81567790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Greenhouse-gas Emission Controls and International Carbon Leakage through Trade Liberalization","authors":"Jota Ishikawa, Toshihiro Okubo","doi":"10.5652/INTERNATIONALECONOMY.IE2016.02.JI","DOIUrl":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2016.02.JI","url":null,"abstract":"This paper studies greenhouse-gas (GHG) emission controls in the presence of carbon leakage through international firm relocation. The Kyoto Protocol requires developed countries to reduce GHG emissions by a certain amount. Comparing emission quotas with emission taxes, we show that taxes coupled with lower trade costs facilitate more firm relocations than quotas do, causing more international carbon leakage. Thus, if a country is concerned about global emissions, emission quotas would be adopted to mitigate the carbon leakage. Firm relocation entails a trade-off between trade liberalization and emission regulations. Emission regulations may be hampered by trade liberalization, and vice versa.","PeriodicalId":22492,"journal":{"name":"The International economy","volume":"75 1","pages":"1-22"},"PeriodicalIF":0.0,"publicationDate":"2016-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82290438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}