Search

To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1468-5965.2007.00728.x Byline: FELICITAS NOWAK-LEHMANN (1), DIERK HERZER (1), INMACULADA MARTINEZ-ZARZOSO (2), SEBASTIAN VOLLMER (1) Abstract: Abstract This article investigates Turkey's sectoral trade flows to the EU based on panel data from the period 1988 to 2002. Turkey's 16 most important export sectors are analysed. Emphasis is placed on the role of price competition, EU protection and transport costs in the export trade between Turkey and the EU. The empirical model used is an extended version of the gravity model. This study is also a contribution to the current discussion of whether Turkey should be granted full EU membership or a privileged partnership with the EU, which for Turkey would mean improved access to the EU market for its products, among other benefits. Our investigation focuses on the latter policy outcome: the impact of deepening the customs union between Turkey and the EU and applying the common agricultural policy (CAP) to Turkish agricultural exports. To this end, the impact of the 1996 customs union covering most industrial goods and processed agricultural goods, is evaluated on a sectoral level. We also perform simulations to quantify the impact of the potential inclusion of agricultural goods, as well as iron and steel and products thereof, into the full customs union between Turkey and the EU which is still to come. Author Affiliation: (1)Georg-August University, Goettingen (2)University Jaume I, Castellon Article note: Felicitas Nowak-Lehmann, Ibero-America Institute for Economic Research, Georg-August University Goettingen, Platz der Goettinger Sieben 3, 37073 Goettingen, Germany, Tel +49 551 39 74 87 Fax +49 551 39 8173, email: fnowak@uni-goettingen.de

Workers' remittances declined sharply as the COVID‐19 pandemic spread in the first half of 2020, rebounding in the second half. This paper analyses the impact of containment and economic support measures on remittances sent to Latin America during 2019–2020 using a gravity model estimated with the Poisson pseudo‐maximum likelihood estimator (PPML). Results show that containment measures in receiving countries mainly explain the fall in remittance flows, whereas the effect of economic support measures is not robust. Among the traditional explanatory factors, the business cycle and the real exchange rate in receiving countries explain the subsequent recovery of remittances. [ABSTRACT FROM AUTHOR]

This study analyzes the determinants of both total migration and asylum migration to Germany. For the analysis, a comprehensive empirical model is set up that includes climate change, economic opportunities, such as per capita income differentials, links to Germany, home country characteristics (population growth, poverty, consumer confidence, unemployment), the political and institutional situation in the sending countries (measured by internal and external conflict, ethnic and religious tensions, government stability, law and order, military in politics), and a control for migration opportunities to alternative destinations. Panel data techniques (Poisson pseudo‐maximum likelihood) for the estimation of the parameters of interest are employed using a panel of 115 (134) origin countries for asylum migration (total migration) over the period of 1996–2017 or 2001–2017, depending on data availability. The analysis reveals that political, socioeconomic, and economic factors determine both total migration and asylum migration. Economic factors are also determinants of asylum applications, as asylum seekers most often come for several reasons. Poverty plays a distinct role in total migration and asylum migration. An alleviation of poverty in origin countries is associated with less overall migration to Germany but with more asylum migration. Increases in average temperature also impact asylum migration in the expected direction, thus, increasing forced migration. The most interesting findings are revealed when considering country groupings (main migration countries, major asylum countries, countries whose asylum applicants enjoy high, intermediate, or low recognition rates). [ABSTRACT FROM AUTHOR]

In this paper we examine to what extent developing countries export more as a result of having the official Least Developed Country (LDC) status. We estimate a gravity model of trade over the period 1973–2013, in which identification is achieved by exploiting the particularities and asymmetries of 'inclusion' and 'graduation' criteria of LDC status. As mechanisms through which LDCs might benefit, we evaluate the effectiveness of individual trade preference schemes for LDCs of the European Union, United States, Canada, Japan, Australia, New Zealand, Norway, and Turkey and the impact of LDC status on exports. We find that first, individual trade preference regimes are not always beneficial in terms of increased export values. Export promoting effects are found for the individual schemes of some developed countries and some sectors. Second, a country's official designation as a LDC is associated with higher aggregated exports. This is particularly the case for LDCs that export agricultural goods and light manufacturing products, including textiles and leather after 1990. Third, the positive effect of LDC status is significant and sizable even when controlling for specific trade preference schemes suggesting that there are other benefits of LDC status that play a role in promoting exports. [ABSTRACT FROM AUTHOR]

In this paper, we present evidence of the long-run effect of trade openness on income per worker for two regions that have followed different liberalisation strategies, namely Asia and Latin America. A model that re-examines these questions is estimated for two panels of Asian and Latin American countries over the 1980-2008 period using a novel empirical approach that accounts for endogeneity as well as for the time series properties of the variables involved. From an econometric point of view, we apply recent panel co-integration techniques based on factor models that account for two additional elements usually neglected in previous empirical literature: cross-dependence and structural breaks. The results point to a positive impact of trade openness in both Asia and Latin America although the size is smaller in the second region. We associate this finding with the degree to which trade was managed in both regions of the developing world. [ABSTRACT FROM AUTHOR]

This paper investigates by means of advanced panel data techniques whether bilateral aid has been successful in promoting bilateral exports to recipient countries during the period 1988-2007 and to what extent changes in aid policies have influenced this relationship. The main novelty of this research is the distinction between tied and untied aid in a multi-donor gravity model of trade and the comparison between trade and aid policies in this setting. We find an average positive effect of bilateral aid on exports, which varies over time and across donors and which appears to depend on the extent to which donors tied aid to exports. The effect does appear to have decreased substantially over the period studied and it is even not statistically significant in the 2000s, which could suggest that the recommendations given by the OECD Development Assistance Committee ( DAC) concerning the untying of aid and aid allocation have been followed by the donors and led to declining impacts on their exports. Interestingly, these decreasing aid-elasticities are accompanied by increasing coefficients of the regional trade agreement variable, which is positive and statistically significant after 1994. Finally, we find that the strength of the relationship between exports and bilateral aid is correlated with the extent to which aid is tied and partially related to the sectoral allocation of aid. [ABSTRACT FROM AUTHOR]

In this paper we assess the current relevance of different sources of international competitiveness. Relative prices, labor costs, and productivity are evaluated as determinants of a country's international competitiveness at the industry level. Working with detailed data on unit values and with industry data on productivity, we empirically implement a MacDougall-type model for Spanish and French trade to Brazil, China, Japan, and the U.S. The period under study is 1980 to 2001 and we distinguish in our analysis between homogenous, reference-priced, and differentiated goods. Our results indicate that cost competitiveness factors are only valid for explaining trade with developing countries while other factors are of importance for developed economies. Overall price competitiveness is of importance, but for differentiated goods, factors distinct from prices seem to determine export success. [ABSTRACT FROM AUTHOR]

This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that, in the long run, German aid is associated with an increase in exports of goods that is larger than the aid flow, with a point estimate of 140% of the aid given. In addition, the evolution of the estimated coefficients over time shows an effect that is consistently positive but that oscillates over time. Interestingly, after a decrease in the 1990s, the estimated coefficients of the effect of aid on trade show a steady increase in the period between 2001 and 2005. The paper distinguishes among recipient countries and finds that the return on aid measured by German exports is higher for aid to countries considered ‘strategic aid recipients’ by the German government. We also find some evidence that aid given by other EU members reduces German exports. [ABSTRACT FROM AUTHOR]