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Abstract: This paper shows that an importing country can have an incentive to impose a tariff to extract rents earned by foreign exporters even in a perfectly competitive setting. To demonstrate this, I develop a new model of international trade that incorporates fixed costs of exporting and firm heterogeneity within a perfectly competitive framework. In this setting, despite the fact that there are no preexisting distortions, the optimal tariff is positive even for a small country with no world market power. In the limit, as either firm heterogeneity or the fixed costs of exporting vanish, the optimal tariff approaches zero. [ABSTRACT FROM AUTHOR]

This paper examines the EMU effect on trade for the eleven early joiners and Greece relying for the first time on data that include both international and intra‐national trade flows, in line with all the microfoundations of the structural gravity model of trade. We find that the overall EMU impact on trade is positive between its members and, specially, for trade between members and non‐members. Interestingly, we further show that the effect of the EMU on bilateral trade remarkably differs across countries. For Ireland, Belgium–Luxembourg, Spain, Portugal and Austria, we find robust evidence that EMU has boosted trade both with other members and with third countries, while for Finland, France, Germany, Italy and the Netherlands, the results suggest that only trade with third countries has been enhanced by the EMU. Greece is the only country that shows a negative impact in trade with other EMU members and no effect in trade with non‐members. Finally, the results across countries according to the direction of the trade flows (exports versus imports) do not show significant differences in any case. [ABSTRACT FROM AUTHOR]

Using a two‐country, two‐good model of international trade, we examine gains from trade and strategic interaction in resource management among countries that share renewable resources such as fishery stocks. Two goods are a resource good, which is the harvest of the shared stock, and some other good that may be thought of as manufactures. The productivity of the resource good depends on harvesting technology and the stock level. This paper focuses on technology standards (e.g., restrictions on fishing gears, vessels, areas, and time) over other methods for resource management because they are most commonly implemented in fisheries. Technology standards are modeled as a restriction on the harvesting technology; that is, under strict technology standards, firms exploit resources as if they are using inferior harvesting technology. We show that an opening up of trade may reduce the shared stock and cause steady‐state utility to decrease in a resource‐good importing country and increase in a resource‐good exporting country. Strikingly, when the shared stock is in jeopardy (a high demand for the harvest), steady‐state harvest is maximized after an opening up of trade by what we call multilateral resource management in this paper and both countries gain from trade. [ABSTRACT FROM AUTHOR]

The Aid‐for‐Trade (AfT) Initiative was launched by the Members of the World Trade Organization (WTO) with a view to helping developing countries and the least‐developed countries (LDCs) expand their trade. The current paper contributes to the literature on AfT effectiveness by examining how AfT affects recipient‐countries' export product diversification. The analysis has been carried out on a sample of 104 AfT recipient‐countries over the period 2002–2015 and uses the two‐step system generalised methods of moments (GMM) approach. Results show that AfT flows are conducive to export product diversification in recipient‐countries. In addition, the analysis has shown a positive impact of the cumulative AfT flows on the export product diversification path of these countries. These results apply as well to the subsamples of LDCs and other developing countries. One policy implication of these results is that a scale‐up of AfT would help recipient‐countries to diversify their export products baskets and hence facilitate their greater integration into the global trading system. [ABSTRACT FROM AUTHOR]

Production networks (PNs) can be defined as a determinant of trade partnership. Deepening PNs may generate positive welfare effects and lead to a proliferation in the formation of interdependent regional trade agreements ( RTAs). This paper theoretically develops the link between PNs and the formation of RTAs and empirically investigates the link by applying a qualitative choice model estimation methodology (probit) with panel data that covers bilateral country-pairs among 147 countries between 2000 and 2010. We find that the RTA formation has been strongly driven by deepening PNs between members as well as with third countries. We also find that production network-driven RTA interdependence is member specific. [ABSTRACT FROM AUTHOR]

This paper is the first that quantifies the impact of single windows (SWs) on international trade globally. SWs function as a single point of entry and exit of the goods traded internationally and are therefore intended to facilitate trade. Using a structural gravity model for a panel of 176 countries from 1995 to 2017, we apply a log–log and a Poisson pseudo‐maximum‐likelihood estimator (PPML) with multidimensional fixed effects to evaluate the extent to which export and import flows vary depending on whether or not countries have operational SWs. The main results from the linearised gravity model suggest that total trade between two countries with functioning SWs increases by about 37%, of which 23 corresponds to exports and 14 to imports. The result from the PPML estimation also indicates a positive and significant effect, which is however much smaller in magnitude. [ABSTRACT FROM AUTHOR]

In this paper, we generalise conventional measures of the effective rate of protection by: (i) relaxing their small‐country assumptions; (ii) taking into account multiple stages of production; and (iii) abstracting away from their assumptions on the time‐invariance of the underlying technology using annual IO tables. We apply our new measure to China's structure of tariff protection from 1992 to 2010. When compared to conventional measures, we find its effective rates of protection to be smaller in magnitude and even negative in some sectors. The new measures are also related to industry characteristics in sensible ways, calling into question the applicability of conventional measures in the context of present‐day China. [ABSTRACT FROM AUTHOR]

This paper analyzes the impact of market size and trade costs on bilateral trade flows. A multi‐country trade model with firm‐level heterogeneity in productivities and countries' market potential provides a simple micro foundation for the link between these variables. In the model, market size and trade costs jointly determine a country‐specific pecking order of exporters serving their destination countries. In a counterfactual setting where bilateral trade costs are homogeneous across country pairs, market size predicts a common ranking of exporters among destination countries. This leads to a unique core‐periphery structure of the world trade network. With heterogeneous trade costs, we illustrate the impact of market size and trade costs on bilateral trade flows and its margins in a simple gravity‐like setting. Using an instrumental variables approach, we find that both market size and trade costs (measured through the network position of countries) have a significant impact on bilateral exports: countries in the core bilaterally trade more with other countries in the core than with peripheral countries, conditional on typical observables. [ABSTRACT FROM AUTHOR]

The empirical literature on aid for trade (AfT) mainly considers its effects on merchandise trade and investment. In this paper, we provide an in‐depth analysis of the relationship between AfT and trade in services using both aggregate and bilateral data. We find a statistically weak effect of AfT on both goods and services trade in our aggregate analysis once we account for endogeneity in the AfT–trade relationship. In contrast, the bilateral analysis suggests that AfT, in particular that allocated to services activities, especially economic infrastructure, has a positive effect on recipients' merchandise exports to donor countries. This novel finding is robust across different lag structures and provides evidence of complementarities between services AfT and goods trade. [ABSTRACT FROM AUTHOR]

Influential papers on how credit constraints affect international trade have shown a tendency to assume that asset tangibility and the share of external borrowing are exogenous industry characteristics that are time‐ and country‐invariant. In the finance literature, however, the share of external borrowing is viewed as endogenous and dependent on the amount of collateral that a firm can provide (and thus, implicitly, on its asset tangibility). Drawing from the finance literature, I hypothesize that there are supply‐side factors that exert substantial influences on the share of external financing. I test this new perspective with country‐ and industry‐specific measures of asset tangibility and external borrowing. I find that (i) the share of external borrowing increases in asset tangibility, and (ii) the sectoral rankings of asset tangibility and the share of external borrowing vary significantly across countries. Further, I develop a theoretical model to investigate the impact of financial development and asset tangibility on the demand and supply of external finance and exports. The model yields theoretical predictions that are consistent with, and provide intuition for, the above results. Both the model and my empirical results demonstrate that industries with more tangible assets export more from countries with high levels of financial development. [ABSTRACT FROM AUTHOR]

In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade costs (shipping prices). Using detailed data on vessel movements and shipping prices, we document novel facts about shipping patterns; we then flexibly estimate our model. We use this setup to demonstrate that the transportation sector (i) attenuates differences in the comparative advantage across countries; (ii) generates network effects in trade costs; and (iii) dampens the impact of shocks on trade flows. These three mechanisms reveal a new role for geography in international trade that was previously concealed by the frequently‐used assumption of exogenous trade costs. Finally, we illustrate how our setup can be used for policy analysis by evaluating the impact of future and existing infrastructure projects (e.g., Northwest Passage, Panama Canal). [ABSTRACT FROM AUTHOR]

EU trade policy initiatives since 1995 offer better products at lower prices with estimated annual savings of up to €60 billion annually, which is especially beneficial for low‐income households who spend a larger share of income on basic commodities. If trade is so beneficial, why is there so much discontent? The paper argues that a convincing communication strategy in support of trade policy is key for trade policy legitimacy and gives the example of the European Commission's #FTAcomes2town platform based on firm‐level data. Politicians can zoom in across all EU members to find examples of small companies in their constituency exporting and creating jobs due to a trade measure. [ABSTRACT FROM AUTHOR]

This paper examines how a boom in industrial cassava served as a 'gateway' to intensify capitalist relations in Cambodia's north eastern borderland. Situated on Cambodia's border with Vietnam, Mondulkiri province has experienced a rapid increase in cassava production and trade since 2006, with transformative consequences for the region's forests and farmers. Using field data from 2012 to 2014, we explore how the boom ignited and intensified over time, through a conjuncture of conditions. Alongside strong market demand for cassava, these included resource abundance (soil fertility, timber, land, labour), connectivity to markets and cross border networks, and facilitative governance conditions. Over time, the boom strengthened capitalist relations, particularly through farmer debt and the revalorisation and accumulation of land. However, unlike booms of tree crops elsewhere, we argue that it is the very impermanence of cassava that is formative here, because the crop's short-term nature and low overheads facilitate practices like land laundering and land mortgaging. Like the 'gateway drugs' that were believed to place users on a path to addiction and risk, this paper shows that gateway crops such as cassava may similarly place farmers on a trajectory of more intense competition and reduced choice in their engagements with capitalist modes of production. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper asks whether the technological development of a nation reduces the inter‐regional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call the globalization of regional innovation system/weakening of inter‐regional hierarchy scenario: As many regions develop their niches in the global economy, the national "anchor" region loses its relative importance as the importer and distributor of new knowledge, rendering the domestic inter‐regional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/persistence of inter‐regional hierarchy. The nation's traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse inter‐regional technology diffusion networks using Chinese patent licensing data for the 1998–2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects—Beijing, Shanghai and Shenzhen—plus two that were slightly less expected—Dongguan and Suzhou. [ABSTRACT FROM AUTHOR]

Many countries have limited low‐cost biomass resources to satisfy their own demand for bioenergy; consequently, international trade in biomass in various liquid and solid forms is increasing. The aim of this study is to present a quantitative overview of the development of international biomass trade for energy purposes. This paper focuses on the main biomass producing and consuming countries, as well as exporters and importers of liquid and solid biofuels, such as wood pellets, biodiesel, and bio‐ethanol, and biomass products, for example industrial roundwood. The study discusses changes in trends that have occurred over the past decade, and investigates emerging energy biomass trade streams. Due to increased demand for wood pellets from the heating and industrial sectors, global wood pellet markets and international trade have increased significantly in the past decade. The United States and Brazil remain leaders in bio‐ethanol production with about 45 Mt and 24 Mt respectively. In recent years, Asian markets such as China (industrial roundwood), South Korea (wood pellets), Malaysia, and Indonesia (palm oil) have developed considerably. In the EU‐28, more than 60% of total palm oil consumption is used for energy purposes. The EU is the global leader in biomass for energy utilization and also the main importer of most biomass products, particularly wood pellets. © 2018 Society of Chemical Industry and John Wiley & Sons, Ltd [ABSTRACT FROM AUTHOR]

While policymakers and scholars often emphasise the significance of the rule‐making aspect when they discuss the benefits of negotiating free trade agreements (FTAs), we know little about the ways in which rules are actually made. We need impartial assessment of the status of rule‐making to draw any concrete policy implications. Moreover, "how international economic rules develop" in terms of enforceability has been a neglected but important research question for students of international economics and laws. International economic rules evolve through a series of FTAs that are signed by a different set of countries. By using the case study of e‐commerce chapters, this paper will specifically examine: (1) how earlier FTAs paved the way to the Trans‐Pacific Partnership (TPP) e‐commerce negotiations; (2) whether rule‐making achievements of TPP are substantial compared against earlier FTAs; and (3) whether rule‐making achievements of TPP, if any, are likely to have some impact on post‐TPP FTAs. [ABSTRACT FROM AUTHOR]

This paper builds on and extends the literature on the linkage between firm productivity and their export destinations to study the productivity of Chinese firms and their sales destinations in other provinces within China. Moving the study from international markets to domestic markets conveniently avoids the hard to control heterogeneity across different destination markets in international trade, as provincial markets within China are less heterogeneous than international markets but segmented by Chinese provincial borders. The paper explicitly controls the fact that many firms only sell in their home provinces by using the zero-inflated negative binomial method. It finds that firms with higher productivity tend to sell in other provincial markets, and more productive firms enter more provincial markets. The results are robust. ( JEL F15, D21, D24) [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent years, the increase in international trade has sparked a debate about the impact of international trade on population health. To date, however, there has been very little econometric research on the relationship between these two variables. This paper examines the long‐run relationship between trade openness and population health for a sample of 74 countries over five decades, from 1960 to 2010. Using panel time‐series techniques, it is shown that international trade in general has a robust positive long‐run effect on health, as measured by life expectancy and infant mortality. This effect tends to be greater in countries with lower development levels, higher taxes on income, profits, and capital gains, and less restrictive business and labour market regulations. [ABSTRACT FROM AUTHOR]

ABSTRACT Recent developments in trade literature suggest that in the presence of strategic pricing in some markets and an incomplete exchange rate pass-through resulting from it, the standard gravity model has to be augmented with an exchange rate variable. As symmetry of pass-through has been questioned in new pricing-to-market (PTM) studies, we argue that this asymmetric impact of the exchange rate on trade should be explicitly modeled within the gravity framework. This consideration of asymmetric effects of exchange rate appreciations and depreciations on export values and quantities might provide insights into the driving forces of PTM in a particular market (or group of markets) given that the existing literature emphasizes two main hypotheses that explain the occurrence of an asymmetric PTM (market share hypothesis and marketing bottleneck hypothesis). In this paper, we propose a way to integrate individual (asymmetric) long-run effects of currency appreciations and depreciations on trade flows into the gravity model and empirically investigate which of the driving forces is relevant for the case of German beer exports. PTM studies often argue that the market share protection is a reason for local currency price stabilization mechanisms applied in the most important markets. Yet, the results of our analysis reveal that this might no longer be the case when all trading partners are considered. [EconLit citations: C33; F14; L66]. [ABSTRACT FROM AUTHOR]

This article investigates empirically whether the effect of tax reform (involving the progressive replacement of trade tax revenue with domestic tax revenue) in developing countries' tax revenue performance (measured by tax revenue‐to‐GDP ratio) depends on the degree of trade openness of these countries. The analysis has used an unbalanced panel data set of 95 developing countries over the period 1981–2015 and the two‐system GMM approach. Results suggest that tax reform is positively and significantly associated with tax revenue performance in developing countries, with the magnitude of this positive effect increasing as countries experience a higher development level. Additionally, and more importantly, countries that further open up their economies to international trade enjoy a higher positive effect of tax reform on tax revenue than countries that experience a lower degree of trade openness. Therefore, these findings should help dissipate the concerns of policymakers in developing countries that greater openness to international trade would further erode their tax revenue, including by lowering their international trade tax revenue. In fact, the implementation of an appropriate tax reform in the context of greater trade openness would generate higher tax revenue, while concurrently allowing countries to reap the well‐known benefits of international trade. [ABSTRACT FROM AUTHOR]

This article documents that African leaders' state visits to China could stimulate China's exports to Africa in capital intensive manufacturing goods. We further find that state visits significantly increase official aid and exports by state-owned enterprises to African countries which contribute to the trade growth after state visits. [ABSTRACT FROM AUTHOR]

The article offers comments on the paper "The future of East Asia's trade: A call for better globalization" by Pangestu M. Topics discussed include impact of slower growth in both productivity and innovation on slowdown in trade; impact of ongoing information technology (IT) revolution, robotization on global value chains; and problems of rising economic and political uncertainty than rising protectionism.

Based on intraday data across 41 markets, this study examines whether informed traders exploit trade‐size clustering. Clustering trades are documented to predict price movements, to generate perpetual return impact, and to improve informational efficiency. Collectively, these findings suggest that the clustering strategy is leveraged by the informed to cover up their activities in global markets. In addition, the cross‐country analysis indicates that larger market capacity and better legal protection, as two predominant institutional features, are associated with a lower level of informed‐trade clustering. Finally, such negative interaction attenuates in countries with lot‐size regulations and at bellwether stocks. [ABSTRACT FROM AUTHOR]

We investigate whether strategic competition among developing countries for export market shares will lead to a "race‐to‐the‐bottom" (RTB) in labour standards. We consider an environment that is most conducive to an RTB, specifically in a model of strategic trade in which governments have incentives to lower the costs of their domestic firms. Our analysis shows that strategic trade considerations do not lead to an RTB. To the contrary, equilibrium labour standards involve higher levels of labour compensation than those in the absence of government intervention. Binding global trade rules that restrict export subsidies would move the labour standards closer to their efficient level. Résumé.: Commerce et normes du travail: y aura‐t‐il un nivellement par le bas? Dans cet article, nous cherchons à savoir si, pour gagner des parts de marché à l'exportation, la compétition stratégique entre les pays en voie de développement engendrera un nivellement par le bas des normes du travail. À cette fin, nous nous appuyons sur un environnement largement propice à cette théorie, notamment dans un modèle commercial stratégique au sein duquel les gouvernements ont intérêt à baisser les coûts de leurs entreprises domestiques. Notre analyse montre que les considérations en matière de commerce stratégique n'engendrent aucun nivellement par le bas. À l'inverse, des normes du travail à l'équilibre impliquent une rémunération de la main d'œ uvre plus élevée qu'en l'absence de toute intervention gouvernementale. Le fait de contraindre les règles du commerce mondial limitant les subventions à l'exportation rapprochera les normes du travail de leur niveau d'efficacité. [ABSTRACT FROM AUTHOR]

Port infrastructure is critical to the world's economy and has seen major expansion over the last few decades. In the future there are likely to be further demands for port capacity which will require additional port area while existing ports will need upgrading in response to sea‐level rise to maintain current levels of operability. This analysis considers potential changes to 2050 under four climate‐based scenarios which aim to explore changes in international maritime trade consistent with global temperature increases of 2 °C and 4 °C and the implications of associated sea‐level rise. All scenarios anticipate a significant increase in trade, and a change in distribution across commodities. The demand for port handling areas in 2050 is roughly double to quadruple that of the baseline (2010) across scenarios. The maximum demand occurs under an unmitigated climate and high intensity in commodity movement with a maximum area in 2050 of 5,054km2. The minimum demand (2,510km2) occurs under a scenario of regionalized green energy production and lower material intensity. The total global investment costs for port adaptation to sea‐level rise and provision of new areas are between 223 and 768 billion USD to 2050. These are dominated by the need for new area construction with the adaptation of base year areas to relative sea‐level rise representing a maximum of 6% of total costs globally. Therefore, in addition to adapting existing port areas to sea‐level rise, it is equally or more important to consider provision of new ports. Plain Language Summary: Over the coming decades, the type and amount of trade carried by sea will change, influenced by climate policy as well as other economic factors. Ports will need to respond to these indirect effects of climate change as well as more direct effects of sea‐level rise, while maintaining their efficiency and reliability as part of global trade systems. Key to avoiding bottlenecks and delays is sufficient handling area within the ports. Using available guidance on the handling area needed for different goods, this analysis shows that projected increases in maritime trade mean that significant new port areas will need to be constructed, in addition to adapting existing ports to relative sea‐level rise. The four climate policy‐related trade scenarios analyzed indicate that port areas may need double or even quadruple globally by 2050. Hence, the cost of adapting to relative sea‐level rise is minimal in comparison to that of building new port areas. The need for these new port areas offers an opportunity to build climate‐resilient ports from the outset. Key Points: The climate and associated trade scenarios considered in this analysis show a significant growth in the need for port areas by 2050.Consideration of ports and sea‐level rise currently focusses on impacts and adaptation for existing port areas.The costs of adaptation existing ports to sea‐level rise are minimal when compared to the costs for new port areas. [ABSTRACT FROM AUTHOR]

Processing trade is an important exporting mode for many countries developed by the export‐oriented industrialisation such as 1960s Japan, 1990s Korea and 2000s China. Exporters who rely on processing trade for foreign profits do not enjoy much market power, and hence care more about exchange rate changes. We develop a model to illustrate how processing trade affects exporters' responses to exchange rate fluctuations. The model suggests that the elasticity of export price with respect to exchange rate for processing‐trade exporters is greater than that of the ordinary‐trade exporters, while the elasticity of export quantity of processing‐trade exporters is smaller compared to their ordinary‐trade counterparts. Most developing countries' governments offer processing‐trade exporters better tax/tariff reduction policy to encourage exporting, which grants processing‐trade exporters additional advantage to adjust more on export price and less on quantity when facing changes in exchange rate and therefore causes their different responses to exchange rate fluctuations. We find strong empirical supports by studying the data from China, which is the largest developing country and biggest processing‐trade exporter. [ABSTRACT FROM AUTHOR]

The world trading system has been remarkably successful in many respects but is now under great strain. The causes are deep‐seated and require a strategic response. The future of the system depends critically on reinvigorating the WTO and policy change in the largest trading nations. Important measures are required to sustain the multilateral trading system, and urgent action is needed to avoid a scenario where the system fragments. The worst scenarios will disrupt global trade and see a world which splinters into large trading blocs (most likely centered on China, the European Union and the United States) and where trade relations are based to a large extent on relative power instead of rules. In such a world the smallest players – especially those whose trade is least covered by bilateral or regional agreements – will be at the greatest disadvantage. All countries will incur enormous costs only to try and reinvent a system that is already in place today under the WTO. Countries with very large current account surpluses should revisit the appropriateness of their macroeconomic and taxation policies. Policy makers should recognize that neither global nor bilateral trade imbalances can be effectively corrected through trade policy measures, only though changes in macroeconomic and structural policies. [ABSTRACT FROM AUTHOR]

The article adapts an estimation methodology from the border effects literature to reveal consumer ethnocentrism versus cosmopolitanism in each country, and animosity versus nostalgia between country pairs. The measurements rely on actual macro cross‐border trade data rather than individual purchase intentions typically used in the international marketing literature. The results from early 2010s suggest that purchasing intentions against imports found in this literature do not necessarily translate into actual consumption behavior in international trade. It is quite possible that the consumers are unable to assess country of origin of production despite growing ethnocentrism, and base their actual purchases on perceived origin of product brands. Specifically, it is found that most countries are cosmopolitan rather than ethnocentric, particularly developed countries, favoring any foreign product over domestic products. Most countries also have nostalgic purchasing behavior from specific trade partners with historical linkages. Outside the specific traditional animosities between a country pair, a developed country is relatively less open to imports from another developed trade partner, while an emerging country welcomes it more especially from another emerging trade partner. [ABSTRACT FROM AUTHOR]

Copyright of Politics & Policy is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article restores an important figure to the study of eighteenth‐century British political and economic thought. A prominent Scottish financial administrator and author resident in Hanoverian London, Adam Anderson (1692–1765) evaluated the expansion of the British commercial empire in the eighteenth century. Anderson developed a sophisticated set of historical arguments about early modern British governance and its relationship to economic growth and societal development. Anderson focused on the evolution of Britain's international commerce, imperial networks and modes of governance. He connected the 1707 Anglo‐Scottish Union, the development of overseas trade and empire‐building. Despite the fact that Anderson set out a nuanced and compelling analysis of Britain's financial revolution that eventually stabilized powerful structures of public and private credit, he has not received significant historiographical attention. This article elucidates his status as a leading historian of the early modern global expansion of European commerce and one of the most widely read and influential commentators on the eighteenth‐century British empire. [ABSTRACT FROM AUTHOR]

The nexus of innovation and trade is commonly analyzed in terms of technological gaps and market‐share gains for innovating countries. However, this relationship may not hold under certain circumstances – as in the case of genetically modified organisms. Based on a firm heterogeneity model, this study investigates the role of technological gaps and demand lags in the case of international trade in goods after the emergence of a 'highly‐scrutinized' or 'distrusted' technology. The demand lag may be understood as the difference between techniques employed by producers in exporting countries and levels of acceptance or compatibility in destination markets. Likewise, a technological gap is the difference between techniques employed by late‐movers and those used by leading countries. By means of a gravity equation, we empirically estimate these effects based on the bilateral trade of soybeans between 1995 and 2012. Results indicate that both technological gaps and demand lags reduce trade by similar magnitudes. Thus, producing countries should carefully weigh the negative effects of falling behind and of approving varieties not approved for importation in destination markets. [EconLit citations: F12, F51, O33] [ABSTRACT FROM AUTHOR]

In the past two decades, Brazil, South Africa and China have designed closer economic and political ties. Since the early 2000s, China has become a key economic partner for both countries. International trade and foreign direct investment between the three nations have expanded, and closer political ties have also evolved. This article elaborates on the increasing economic interdependence between Brazil, China, and South Africa addressing challenges and opportunities for all three countries involved. [ABSTRACT FROM AUTHOR]

Three years ago, very few economists would have imagined that one of the newest and fastest growing research areas in international trade is the use of quantitative trade models to estimate the economic welfare losses from dissolutions of major countries' economic integration agreements (EIAs). In 2016, "Brexit" was passed in a UK referendum. Moreover, in 2019, the existence of the entire North American Free Trade Agreement (NAFTA) is at risk if the US withdraws—a threat President Trump has made if the proposed US–Mexico–Canada Agreement is not passed by the US Congress. We use state‐of‐the‐art econometric methodology to estimate the partial (average treatment) effects on international trade flows of the six major types of EIAs. Armed with precise estimates of the average treatment effect for a free trade agreement, we examine the general equilibrium trade and welfare effects of the elimination of NAFTA (and for robustness US withdrawal only). Although all the member countries' standards of living fall, surprisingly the smallest economy, Mexico, is not the biggest loser; Canada is the biggest loser. Canada's welfare (per capita income) loss of 2.11% is nearly two times that of Mexico's loss of 1.15% and is nearly eight times the US' loss of 0.27%. The simulations will illustrate the important influence of trade costs—international and intranational—in contributing to the gains (or losses) from an EIA's formation (or elimination). [ABSTRACT FROM AUTHOR]

This article is based on a transcript of the Leonard K. Elmhirst Memorial Address, delivered at the 30th International Conference of Agricultural Economists in Vancouver, Canada, on July 29, 2018. The presentation provided an overview of work that I have done recently on comparative advantage and its role in agricultural trade patterns and trade‐driven changes in welfare. Two topics are addressed: (a) the static gains from intranational agricultural trade due to comparative advantage; and (b) how trade might mitigate consumption losses and food insecurity from changes in agricultural productivity caused by drought and climate change. [ABSTRACT FROM AUTHOR]

Recent literature on international trade has devoted increased attention to the role played by the extensive margin of trade for economies engaged in liberalization and structural transformation processes, such as the new EU countries. This article documents the leading role of the new goods margin in trade growth for the new member states that have acceded the EU in 2004 and 2007. Product trade data is used to analyse the trade share of the new goods over the sample period 1999–2014. The results show that the extensive margin of trade grew from 10 to around 50 per cent for most bilateral trade flows of the new EU member states. Further decomposition of the new goods margin shows that the goods already traded though in small volumes at the beginning of the period play a leading role. [ABSTRACT FROM AUTHOR]

Abstract: A growing body of research points to the ‘Rise of the South’ and the growth of South–South trade. In this article, we consider the implications of the shifting dynamics of global trade and the greater prominence of Southern actors for the conceptualization of global value chains (GVCs) and global production networks (GPNs). We use trade data analysis to explore the changing geography of global trade and to highlight the emergence of more polycentric trade. We argue that our understanding of GVCs and GPNs, in a context where Southern actors and Southern end markets have more prominent roles, requires greater attention to the existence of multiple value chains (VCs) and production networks (PNs) serving different end markets – including domestic, regional and global. Consequently, there is a need to refine our understanding of both governance dynamics – lead firm strategies and standards requirements – and upgrading prospects through recognizing this shifting trade geography. We conclude by raising several new research questions regarding the conceptualization of VCs and PNs in a world where Southern actors and Southern markets are increasingly important. [ABSTRACT FROM AUTHOR]

Abstract: We examine the quality‐screening role played by intermediaries in international trade, exploiting export data at the product level for Chinese exporters. We uncover substantial heterogeneity among intermediaries, and distinguish two types: generalized and specialized intermediaries. We find strong evidence of a quality‐verification role for specialized intermediaries: they are more prevalent in products with greater quality dispersion among local exporters, and export goods of higher quality than do generalized intermediaries. Our results suggest that specialized intermediaries have the capacity to reduce the incidence of quality problems. [ABSTRACT FROM AUTHOR]

Abstract: Regional trade in South America since independence has long been much smaller than would be expected if geography were the only constraint on trade. Several potential explanations exist, including low technological and demand complementarities; low productivity; and high natural and policy barriers to trade. Focusing on the latter explanations, policy makers have long advocated a South American/Southern Cone Free Trade Area—proposed as early as 1889. Would reductions in trade costs have been sufficient to raise trade significantly, or was trade low for other reasons? We study bilateral trade between 1910 and 1950, when large external shocks altered global supply and demand. These shocks help us show that intra‐regional trade could have been boosted by reductions in trade costs. Trade among Argentina, Bolivia, Brazil, Chile, and Peru could have benefited from more benign trade policies or better infrastructure. Regional trade in textiles, which took off from the 1930s, supports our argument that trade improved when trade costs fell. [ABSTRACT FROM AUTHOR]

Abstract: Previous scholarship has suggested that British trade was generally unaffected by foreign tariffs during the period from 1870 to 1913. This article focuses specifically on Anglo‐American trade, which was the largest bilateral flow of trade during the first era of globalization, and finds that tariffs were the sole intertemporal determinant of Anglo‐American trade costs. However, the determinacy of tariffs for Anglo‐American trade costs only becomes apparent when the tariff variable incorporates a measure of the bilateral American tariff toward Britain, which this article reconstructs. The article concludes by claiming that Anglo‐American trade represents a major qualification to any emerging consensus that foreign tariffs were of minor significance to the trade of late nineteenth‐century Britain. [ABSTRACT FROM AUTHOR]

To what extent does geography remain an important determinant of comparative advantage and factor incomes in resource markets? We estimate gravity models for resources and find that some minerals and fuels, particularly iron ore and gas, do have very high elasticities of trade with respect to distance. To assess the implications of this we then consider a simple counterfactual where location advantages are eliminated. We find that for a few countries, including Australia and New Zealand, distance barriers have a large impact of their market share. [ABSTRACT FROM AUTHOR]

This essay reveals a financial dimension to Captain John Blake and his son John Bradby Blake's involvement with China, namely, their participation in financing the Canton trade through predatory loans to Chinese Hong merchants. Widespread predatory lending in Canton led to a financial crisis during the late 1770s, which ruined several British and Chinese merchants. In an effort to recover the money they claimed was owed to them, many British traders, including John Blake, formed a lobby group in London and authorized Britain's first Ambassador to China to negotiate with the Emperor in Beijing on their behalf. [ABSTRACT FROM AUTHOR]

Export performance in sub-Saharan Africa (SSA) is low, unlike the other developing regions, with an intra-regional trade still weak and a trade pattern that remains very concentrated even if some progress seems to appear. Recent findings suggest that South-South trade allows more improvement in export diversification of developing economies than North-South trade. We examine the diversification of trading partners and more precisely, to what extent the nature of external trading partners matters for the geographical diversification of intra-SSA trade. We apply this economic intuition to trade relationships between the BRICs (Brazil, Russia, India, China) and SSA countries in a context of shifting wealth and a trade reorientation for developing economies. We use a theory-consistent and robust structural gravity model with three different dependent variables (value of bilateral export flows, binary variable for strictly positive export flows, number of export destinations) based on a worldwide database over the period 1948-2012. We attempt to compare the exports of each member of the BRICs to SSA in order to know whether there are different effects on the geographical diversification of intra-SSA trade. Globally, Chinese exports to SSA have the strongest impact on the geographical diversification of intra-SSA trade relative to the other BRICs. [ABSTRACT FROM AUTHOR]

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This study aimed to utilise the micro-founded measure of trade cost derived by Novy to estimate the relative bilateral trade costs of India with its European Union partners. The advantage of using such a model is that the trade costs can be derived entirely using observable trade data. The results show that Indian tariff equivalent with its major EU trading partners has declined by 20 percentage points between 1995 and 2010, with Malta and Latvia experiencing the greatest decline. The study then decomposes the bilateral trade growth to ascertain whether it is an outcome of increased domestic production or reduction in bilateral and multilateral trade barriers. Novy's model indicates that the decline in relative bilateral trade costs explains the greatest percentage of this trade growth, which is partially offset by decline in multilateral resistance terms that has diverted trade away to other trading partners primarily in South and South-East Asia and North America. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this article is to explore the challenges and opportunities of the 21st Century Maritime Silk Road - presumably a gigantic economic project launched by China - for better connectivity and economic cooperation in Asia. The article examines the variables that may either limit or bolster its implementation. The project, once implemented, is likely to give rise to both economic and strategic upshots. Economically, it is likely to be win-win for both China and other powers in Asia who are willing to participate. On the other hand, it may get trapped because of the presence of geopolitical issues and great powers rivalry, specifically in the Bay of Bengal region. The article, in the final analysis, attempts to provide certain policy prescriptions, mainly for China, for maximum optimization. [ABSTRACT FROM AUTHOR]