Search

This paper shows that non-tariff measures may fully respect the non-discrimination principle of the World Trade Organisation and still act as a protectionist device. Non-tariff measures that raise costs of all firms induce some exit, reallocating market shares towards the most efficient firms. The paper analyses when this mechanism generates protectionism. With political economy motives, trade liberalisation increases the use of non-tariff measures in the non-cooperative equilibrium and a trade agreement may be welfare reducing if governments care about the most efficient firms only. Moreover, a Pareto improving agreement may require an income redistribution between countries if firm average productivity differs across countries. [ABSTRACT FROM AUTHOR]

This paper develops an estimated New Keynesian model of a commodity-exporting economy for an integrated policy framework, integrating the full range of policies used in practice and featuring a range of nominal and real rigidities, macro-financial linkages, and transmission channels of external shocks. We jointly examine the optimal conduct of conventional and unconventional monetary policies, macroprudential policy, foreign exchange intervention, capital flow management, and fiscal policy based on the model. The policy analysis framework is applied empirically to Mongolia, a small open and developing economy highly dependent on imports and commodity exports. We find that an eclectic policy mix improves policy trade-offs and a lack of cooperation among policy authorities may result in conflicting policies, hence suboptimal results for overall economic stability. Our optimal policy analysis shows that policy mix adjustments should differ depending on the type of shocks and the policy objectives. The results suggest that the policy analysis framework can help policymakers choose their policy mix adjustments to deal with external shocks in an integrated and optimal way. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature 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.)

Purpose: This paper aims to examine the asymmetric effects of exchange rate shocks on inflation for a small open economy, namely South Africa, over the period 1970Q1–2020Q1. Design/methodology/approach: A threshold vector autoregressive model that allows parameters to switch according to whether a threshold variable crosses an estimated threshold is employed to address the objective of this paper. The threshold value is determined endogenously using the Hansen (1996) test. Generalized impulse responses introduced by Koop et al. (1996) are used to study the effects of exchange rate shocks on inflation depending on their size, sign and timing to the inflation cycle. The authors also employed a Cholesky decomposition identification scheme to identify exchange rate shocks in the non-linear model. Findings: The results show that there is a non-linearity effect of the exchange rate shock on inflation. In particular, the effects of 1 or 2 standard deviations of positive (appreciation) or negative (depreciation) exchange rate shock on inflation are small in the long run but a bit larger in the high inflation regime than the low inflation regime. Originality/value: This paper contributes to the literature on the non-linear effects of exchange rate pass-through (ERPT) to inflation for Sub-Saharan African economies in general and the South African economy in particular by incorporating the size and timing of the exchange rate shocks to the inflation cycle. [ABSTRACT FROM AUTHOR]

Emerging market economies often struggle with macroeconomic instabilities as they experience more persistent terms of trade shocks, volatile exchange rates, and commodity prices compared to the rest of the world. This paper evaluates the impact of terms of trade shocks on retail food prices for an emerging country. To do so, we employ the underlying small open economy macro‐model framework with a panel vector autoregression analysis. Our results show that a positive terms of trade shock decreases retail food prices and their price volatility. Positive terms of trade shock also increases the output gap. We find that these results are more persistent for the fresh fruits and vegetable group, which has the highest price volatility under the retail food prices group. [EconLit Citations: C33, E31, F41]. [ABSTRACT FROM AUTHOR]

This paper adapts and estimates the DSGE model of Medina and Soto (2007) in the context of Kazakhstani economy. The main goal of the paper is to contribute to the scarce macroeconomic modelling literature on Kazakhstan and analyse the structure of the Kazakhstani economy using the DSGE framework. Overall, we find that the oil price shock is key in explaining the variance of virtually all the variables of interest – in particular, it accounts for more than 40% of variance in real exchange rate over the long-term horizon. Furthermore, while the oil price and commodity (oil) production shocks contributed positively to the country's GDP growth in real terms before the Great Recession, their effects have been primarily negative during the two major economic crises of 2007 and 2015, and the fiscal policy has had mixed success in counteracting them. Lastly, the counterfactual exercises show that the choice to adopt the floating exchange rate policy in 2015 has prevented a larger output slump in the short-term at the cost of stronger currency depreciation, and that countercyclical fiscal rules would have greatly mitigated the immediate negative impact of the 2007–08 and 2015 crises, in addition to making real output more stable overall. [ABSTRACT FROM AUTHOR]

Since China joined the World Trade Organisation (WTO) in 2001, more Chinese agricultural products have been exported to various countries at low tariff rates. However, the impacts of WTO accession on China's agricultural productivity and technical efficiency are ambiguous. The aim of this study is to investigate the impacts of trade on China's agricultural production by analysing productivity changes before and after 2001. To understand the role trade plays in productivity and technical efficiency change, we introduce two trade indices to the multi‐input multi‐output distance function and technical inefficiency model to examine the export and import effects on technical efficiency and total factor productivity (TFP) change. Our findings indicate that the average growth rate of TFP is 5.8% per annum before joining the WTO, and it increases slightly with an annual rate of 8.5% after joining the WTO. Additionally, with the development of trade liberalisation, the traditional advantages (e.g., technology innovation, spillovers, FDI) of exports on agricultural productivity are being replaced by the competitive effect of imports. [ABSTRACT FROM AUTHOR]

ABSTRACT Debates in the British House of Commons between 1839 and 1946 revealed four distinct positions on the controversial Corn Laws. The Radicals, led by Richard Cobden, fought for overall free trade. The moderate Whigs, headed by Lord John Russell, leaned toward a fixed duty on imported corn. The Conservative Peelites, rallied behind Robert Peel, supported the prevailing sliding-scale system, while the landed Tories, who coalesced around Lord George Bentinck, wished protection all around. This article analyzes how the principles of political economy got entangled with political considerations in the speeches delivered by the leaders of each parliamentary faction. It concludes by highlighting the crucial role of political economy, especially the free trade doctrine, along with material evidence and historical precedent, as the key concurring factors in the repeal of the Corn Laws in 1846.

Following global trade agreements, Asian countries have been highly aggressive in implementing free trade. These conditions will impact all sectors, including agriculture. This study aims to examine the impact of the General Agreement on Tariffs and Trade (GATT), World Trade Organization membership (WTO), and the Doha Round implementations on agricultural producer prices in Asian countries (PPI). The study was conducted using secondary data from 1991 to 2020. The data for 28 Asian countries were analyzed using the first difference General Method of Moments (GMM). The results show that implementing the GATT raises the PPI, but implementing the WTO has the reverse impact. PPI is unaffected by the Doha Round. Inflation, exchange rate, value-added, human capital, and land area equipped for irrigation are all positive contributors to PPI. Several recommendations are made to increase PPI in Asian countries: increasing commitment to agricultural fair trade, increasing agricultural value-added, improving educational opportunities for agricultural business players, and prioritizing agricultural infrastructure investment.

The objective of this paper is to determine the comparative advantage of Romania in relation to the countries of the European Union in an integrationist context. The European single market offers free trade conditions, which allows the reference to Ricardo's theory of comparative advantage and the use of the Balassa index for the analysis of trade flows. This index measures the relative performance of exports, per countries and branches, and it is calculated as ratio between the share of a branch in the total export of the country and the share of the branch in the world exports. As the current export flows 'reveal' the country's strong sectors it is also known as Revealed Comparative Advantage. The conclusions of the analysis will identify the situations of relative comparative advantage and the situations in which the Romanian economy presents favorable opportunity costs.

The article discusses the relationship between geopolitics and the global economy, highlighting the increasing influence of geopolitical factors on economic outcomes. It emphasizes the need to separate economics from politics to ensure economic benefits and well-being for people. The article also explores the challenges and potential solutions in achieving this separation, such as restoring international rule-making institutions and diversifying trading partners. Additionally, it addresses the impact of geopolitical risks on energy and the environment, as well as the demographic challenges faced by developed nations. The article provides a summary of interesting points discussed in various forums, including the Asia-Pacific Forum, US-Japan Forum, Europe-Japan Forum, and CJK Cooperation Dialogue. [Extracted from the article]

The article focuses on the interpretation of consumers' withdrawal rights in distance contracts under Directive 2011/83/European Union (EU), particularly in scenarios involving contract conversion or extension of online services. Topics discussed include the legal framework surrounding consumer rights in the EU, conditions for withdrawal, and traders' obligation to provide clear information to consumers prior to contract finalization.

Tony Thirlwall, an economist known for his Keynesian approach to economic growth, has passed away at the age of 82. Thirlwall challenged the supply-side orthodoxy and emphasized the importance of demand in driving growth. He established Thirlwall's Law, which states that a country's long-term growth can be approximated by the ratio of its export growth to its income elasticity of demand for imports. Thirlwall's work has had a significant impact on policy institutions and continues to be researched and discussed today. [Extracted from the article]

The prominent subject of discussion within the context of the ASEAN Economic Community is the harmonization of competition law in the region (AEC). In order to remove and reduce potential barriers to economic activity, ASEAN has adopted free trade through economic integration among its member nations. This study aims to examine why it is crucial to harmonize ASEAN competition law and to determine what the ASEAN business competition law harmonization model looks like. This paper used normative method with utilizing a statutory and a comparative approach which are presented descriptively. The results demonstrated that legal system conflicts can be addressed and legal disparities can be lessened by initiatives at harmonization. To do this, ASEAN must at the very least harmonize three key aspects of ASEAN Member States' competition laws: the substance of the law, law enforcement, and competition commission. In this context, collaboration amongst competition enforcement agencies can be used to implement the ASEAN model of harmonising competition legislation. Cooperation can take the form of notification, information sharing, enforcement cooperation between commissions, consultation, and conciliation.

President Trump imposed tariffs in 2017 on several of China’s exports, notably steel. Many papers opposed these tariffs by using a common, invalid argument: rather than arguing these tariffs reduced U.S. welfare, they argue U.S. consumers and businesses pay the tariffs, a different, rhetorical issue. Their main evidence of harm is increases in imported goods’ after-tariff U.S. prices, especially relative to other goods’ U.S. prices. In a standard, small general equilibrium model (two countries, two goods, two factors), this price evidence is wholly ambiguous—it is even consistent with the view that Trump’s tariff was optimal, increasing U.S. welfare. Even sophisticated papers are similarly ambiguous. All fail because they neglect how government uses tariff revenue. Relying on fallacious arguments makes the free-trade position look weak and encourages protectionism.

Abstract This article examines the engagement of domestic actors in public conversation surrounding free trade negotiations with a focus on the framing of these negotiations as economic, strategic or domestic issues. To analyse this topic, this article utilises the use of Twitter as a barometer of public sentiment toward the Regional Comprehensive Economic Partnership (RCEP). We employ topic classification and sentiment analysis to understand how RCEP is discussed in 345,015 tweets. Our findings show that the overall sentiment score towards RCEP is neutral. However, we find that when RCEP is discussed as a strategic issue, the sentiment is slightly more negative than when discussed as a domestic or economic issue. This article further suggests that discussion of RCEP is driven by the fear of China’s geopolitical ambitions, domestic protectionist agendas, and impact of RCEP on the domestic economy. This article contributes to the growing use of big data in understanding trade negotiations. Furthermore, it contributes to the study of free trade negotiation by examining how domestic political actors frame free trade negotiations.

The study examines the relationship between trade openness and carbon dioxide emissions in the cumulative risks context for China's economic development and the European Union. Hypotheses derived from a review of the literature substantiate the following key findings: (1) A reduction in CO2 emissions in developed countries due to restrictions on international trade may lead to an increase in CO2 emissions in developing and transitional economies. (2) Trade restrictions can reduce CO2 emissions in developed countries by shifting production to less developed nations. (3) The existing trade restriction policies do not effectively curb global CO2 emissions and may exacerbate social inequality between “wealthy” and “poor” countries. The study findings hold relevance for policymakers, academic researchers, experts in climate change mitigation.

In developing countries, trade is increasingly associated with greater returns to high-skilled labor and rising inequality. These empirical patterns are at odds with canonical models of trade in the developing world. What does this mean for the political economy of trade in these countries? We argue that although developing countries have a comparative advantage in low-skill products, these are produced by workers that are relatively high-skilled compared to their peers. Trade and global production benefit relatively skilled workers, particularly those exposed to exports and inward foreign direct investment in manufacturing. Our argument offers insight into why relatively skilled workers are most supportive of free trade and why inequality is rising in developing countries. We examine micro- and macro-level implications of our argument using cross-national survey data on policy preferences and aggregate data on trade and inequality. The findings have important implications for the political economy of trade and global production in developing countries. [ABSTRACT FROM AUTHOR]

Few scholars would dispute that negotiations for the European Free Trade Association (EFTA), which formally commenced near Stockholm in June 1959, moved at breakneck speed. Generally acknowledged too are the reasons behind this haste: the need swiftly to find another route to working with the European Economic Community (EEC) following the collapse of the wider Free Trade Area (FTA) proposal, the degree of consensus already achieved by the Association's founder members during the FTA talks, and the fact that few felt EFTA was a permanent alternative to an arrangement with the Six. But none of this negated the very real obstacles faced by negotiators. Each indeed obliged the Seven collectively – and, as by far the single largest economic actor, Britain specifically – to reconsider the scope of the agreement under discussion and the sorts of concessions required to reach a deal. And yet this is a moment in EFTA's founding often glossed over in extant literature. This article consequently provides a long-overdue detailed study of the build-up to, and evolution of, the Stockholm negotiations, examining the topics on which negotiators focused and the conditions under which compromises eventually emerged. In so doing, it points to the agency of smaller EFTA states in being able to exercise maximum influence at critical junctures in the process and explains why the timing of their demands as well as the nature of the negotiations themselves ultimately influenced their success. [ABSTRACT FROM AUTHOR]

This study aims to empirically analyse the potential long-run and shortrun effects of the covid-19 pandemic on the ready-made garments (rmg) export growth of Bangladesh. We distinguish two transmission channels: credit growth and degree of openness to trade, through which the pandemic could affect the rmg export, using monthly time series data from June 2009 to August 2020. We employ a bounds test approach to the autoregressive distributed lag (ardl) cointegration method. The bounds test specifies long-run and short-run relationships between credit growth, openness, and rmg exports. We found that the pandemic has a significant negative effect in the short run but a positive impact on export through these transmission channels in the long run. Thus, more credit support to this sector and opening up the economy for international trade is essential for the total recovery of the rmg export. [ABSTRACT FROM AUTHOR]

This article analyzes the impact of partisanship under divided government on the approval process of the US-Colombia–Trade Agreement (FTA). Focusing on the case of the FTA between the United States and Colombia, this study examines how partisan and ideological dimensions in the executive and legislative branches shape trade policy decision making. Drawing on existing literature, this study explores the determinants of FTA approval under divided governments using individual and district-level characteristics. In this case, the findings indicate that party affiliation significantly influences members of Congress’ voting behavior on FTAs, with Democrats generally being more skeptical and Republicans more supportive. The article also explores how changes in government positions and the presence of a divided government affected President Barack Obama’s stance on the FTA, highlighting the importance of republican support in Congress. Overall, this research contributes to the understanding of the relationship between divided government and FTA approval, shedding light on the role of partisanship and ideology in shaping US trade policy. [ABSTRACT FROM AUTHOR]

This paper critically analyzes the African Union's (AU) efforts toward continental integration, highlighting the gap between its rhetoric and the actions of member states' political leaders. The paper suggests that the AU's focus on individual state sovereignty, rather than continental unity, is partly due to its self-serving role for the political elite, serving as a vessel for regime-boosting and sovereignty-enhancing purposes. The paper acknowledges some of the successes of the AU in reducing armed conflicts and military coups through its Peace and Security Council, Panels of Conflicts Resolution, and the African Standby Force for peace missions. It also recognizes the potential benefits of the African Continental Free Trade Agreement (AfCFTA), which aims to lower or eliminate cross-border tariffs on most goods, promote investment, and pave the way for a continent-wide customs union. However, the paper argues that "performative" Pan-Africanism efforts demonstrate the persistent gap between the AU's rhetoric and actions. Therefore, a close examination of the AU reveals how reigning regimes use regionalism as "opportunity structures" in political crises. The paper suggests that the AU's focus on individual state sovereignty reinforces traditional notions of sovereignty and hinders the process of continental integration. The paper contributes to the scholarship of regionalism by examining the less prominent roles of integration in Africa. It also highlights how supranational entities can be adaptive and mutative for their specific locales. Finally, the paper calls for critically examining the AU's role and potential for promoting genuine continental unity. [ABSTRACT FROM AUTHOR]

Labour mobility within the European Union (EU) is still increasing, and often such workers carry out 'essential' work. Yet, while EU law accords certain labour and social rights, mobile workers de facto often have only limited rights. We study why especially these 'essential' workers are often exploited and focus on enforcement actors – control authorities checking upon and interest representation bodies pushing for workers' rights. We thereby contribute to broader literature on the precarious character of EU free movement in practice. For one, we offer an analytical framework to grasp enforcement by using the dichotomy of police patrol and fire alarm, each breaking down for willingness and capabilities. For another, we stress the relevance of two factors hampering enforcement: While, as we argue, the demand for cheap labour by economies and societies of destination has an impact on the willingness to see rights guaranteed, the isolation of workers limits the capabilities of both police patrol and fire alarm. We illustrate our argument with empirical evidence from live-in care work and international road transport, mainly based upon semi-structured interviews with control authorities and interest representation bodies in Austria and Germany, and with additional interviews in Poland and Slovenia. [ABSTRACT FROM AUTHOR]

How does industrial policy currently interact with Regional Economic Communities in Africa? This article examines the tension between Regional Economic Communities and state-level industrial policy in Africa through two main problems: (1) how state industrial policies undermine Regional Economic Communities through a crisis of implementation and (2) how Regional Economic Communities undermine industrial policies through crisis of coordination. In discussing these issues, using indicative examples from the regions, especially the Economic Community of West African States (ECOWAS) and the East African Community (EAC), the article brings together industrial policy and regional economic integration in Africa. [ABSTRACT FROM AUTHOR]

Purpose: After the trade liberation, Bangladesh has faced the crisis of trade imbalance. Therefore, trade liberation is considered as the driving force behind the crisis. To investigate this historical allegation, this study aims at analysing the factors that determined the post trade liberalisation aggregate import demand function of Bangladesh. Design/Methodology/Approach: Based on quarterly data from trade liberalisation period to reaching the economic stability period, 1992Q1 - 2007Q4, an autoregressive distributed lag (ARDL) approach to cointegration and an error correction model (ECM) have been utilised to estimate the impacts of natural calamity, gross domestic product, foreign exchange reserve, relative price and tariff on aggregate import demand of Bangladesh. Findings: Empirical results revealed that the natural calamity is identified to be nonresponsive to the nation's aggregate import demand both in the short and long run. This indicates that Bangladesh can meet the natural crisis related demand by herself without influencing its aggregate import demand. Results also revealed that the import volume of Bangladesh is cointegrated with relative import price, actual GDP and real foreign exchange reserve of the country. The import demand of the country can largely be described by its real GDP, while it is found inversely associated with relative price ratio in the long run. The long run association among import demand and tariff rate indicates that trade liberalisation has a significant positive impact on the country's aggregate import demand, as well as real foreign exchange reserve, as explained by the reduction in tariff rate. Research Implication: Developing countries like Bangladesh and the relevant business stakeholders would have considerable implications of such empirical findings with their trade policies, particularly how they should respond to unpredictable scenarios caused by the factors such as natural calamity, foreign exchange reserve, tariff, etc. Originality Value: The originality of the study lies in its uniqueness in using the historical data and factors that no studies have so far used in analysing the import demand function of Bangladesh. [ABSTRACT FROM AUTHOR]