{"title":"On the gains from an expansion in factor mobility in bilateral trade","authors":"Paul M. Comolli","doi":"10.1080/09638199900000021","DOIUrl":"https://doi.org/10.1080/09638199900000021","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"409 1","pages":"343-358"},"PeriodicalIF":2.1,"publicationDate":"1999-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79836659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Foreign direct investment, urban unemployment and welfare","authors":"S. Yabuuchi","doi":"10.1080/09638199900000022","DOIUrl":"https://doi.org/10.1080/09638199900000022","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"1 1","pages":"359-371"},"PeriodicalIF":2.1,"publicationDate":"1999-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77309558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of tied aid on trade flows between donor and recipient countries","authors":"L. Tajoli","doi":"10.1080/09638199900000023","DOIUrl":"https://doi.org/10.1080/09638199900000023","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"1 1","pages":"373-388"},"PeriodicalIF":2.1,"publicationDate":"1999-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85851633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A dynamic monetary model with costly foreign currency","authors":"Marcelo Bianconi","doi":"10.1080/09638199900000020","DOIUrl":"https://doi.org/10.1080/09638199900000020","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"21 1","pages":"321-342"},"PeriodicalIF":2.1,"publicationDate":"1999-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82968332","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Risk sharing and quasi-credit","authors":"M. Fafchamps","doi":"10.1080/09638199900000016","DOIUrl":"https://doi.org/10.1080/09638199900000016","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"35 1","pages":"257-278"},"PeriodicalIF":2.1,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85423731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Globalization and economic development","authors":"Sven W. Arndt","doi":"10.1080/09638199900000018","DOIUrl":"https://doi.org/10.1080/09638199900000018","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"24 1","pages":"309-318"},"PeriodicalIF":2.1,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80789051","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Industry concentration and optimal discriminatory commercial policies","authors":"N. Long, A. Soubeyran","doi":"10.1080/09638199900000015","DOIUrl":"https://doi.org/10.1080/09638199900000015","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"98 1","pages":"241-256"},"PeriodicalIF":2.1,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86623066","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Production uncertainty, enforcement, and smuggling: a stochastic model","authors":"S. Fausti","doi":"10.1080/09638199900000017","DOIUrl":"https://doi.org/10.1080/09638199900000017","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"90 1","pages":"279-308"},"PeriodicalIF":2.1,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76484443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Export instability, income terms of trade instability and growth: causal analyses","authors":"Teame Ghirmay, Subhash C. Sharma, R. Grabowski","doi":"10.1080/09638199900000013","DOIUrl":"https://doi.org/10.1080/09638199900000013","url":null,"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.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"16 1","pages":"209-229"},"PeriodicalIF":2.1,"publicationDate":"1999-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72900452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the welfare analysis of a cross-border merger","authors":"Tarun Kabiraj, M. Chaudhuri","doi":"10.1080/09638199900000012","DOIUrl":"https://doi.org/10.1080/09638199900000012","url":null,"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).","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"28 1","pages":"195-207"},"PeriodicalIF":2.1,"publicationDate":"1999-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80751533","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}