S. Andriamananjara, P. Brenton, Jan Erik von Uexkull, P. Walkenhorst
This study discusses potential economic implications for Nigeria of an Economic Partnership Agreement with the European Union. It uses the World Banks Tariff Reform Impact Simulation Tool to assess the effects of preferential tariff liberalization with respect to the European Union. The results suggest that the impact of an Economic Partnership Agreement on total imports into Nigeria will be slight. This is in part because the Agreement will likely allow the most protected sectors to be excluded from liberalization, and also because where substantial tariffs are involved much of the increase in imports from the European Union will occur at the expense of other suppliers of imports. It is this trade diversion, arising from the discriminatory nature of the EPA, which generates a negative welfare impact of the tariff reforms. One way for Nigeria to limit these losses is to pursue non-preferential trade liberalization before implementing an EPA. The paper looks at the large number of import bans in Nigeria and argues that the positive impact on welfare of removing these import bans is likely to be substantial. Their removal would undermine a major reason for cross border smuggling and pave the way for a return to normal regional trade flows. The paper shows how an Economic Partnership Agreement presents an opportunity for accelerating the reforms that are needed to support a strategy to increase regional and global trade integration. Such an agreement is more likely to have positive and significant impacts when integrated into a comprehensive strategy toward competitiveness and alleviation of the supply constraints that have stifled the impact of previous trade agreements. Key issues that should be addressed include liberalization and regulatory strengthening of services sectors to ensure that all firms in Nigeria have access to efficiently produced backbone services and initiatives to address the countrys poor trade logistics performance.
{"title":"Assessing the Economic Impacts of an Economic Partnership Agreement on Nigeria","authors":"S. Andriamananjara, P. Brenton, Jan Erik von Uexkull, P. Walkenhorst","doi":"10.1596/1813-9450-4920","DOIUrl":"https://doi.org/10.1596/1813-9450-4920","url":null,"abstract":"This study discusses potential economic implications for Nigeria of an Economic Partnership Agreement with the European Union. It uses the World Banks Tariff Reform Impact Simulation Tool to assess the effects of preferential tariff liberalization with respect to the European Union. The results suggest that the impact of an Economic Partnership Agreement on total imports into Nigeria will be slight. This is in part because the Agreement will likely allow the most protected sectors to be excluded from liberalization, and also because where substantial tariffs are involved much of the increase in imports from the European Union will occur at the expense of other suppliers of imports. It is this trade diversion, arising from the discriminatory nature of the EPA, which generates a negative welfare impact of the tariff reforms. One way for Nigeria to limit these losses is to pursue non-preferential trade liberalization before implementing an EPA. The paper looks at the large number of import bans in Nigeria and argues that the positive impact on welfare of removing these import bans is likely to be substantial. Their removal would undermine a major reason for cross border smuggling and pave the way for a return to normal regional trade flows. The paper shows how an Economic Partnership Agreement presents an opportunity for accelerating the reforms that are needed to support a strategy to increase regional and global trade integration. Such an agreement is more likely to have positive and significant impacts when integrated into a comprehensive strategy toward competitiveness and alleviation of the supply constraints that have stifled the impact of previous trade agreements. Key issues that should be addressed include liberalization and regulatory strengthening of services sectors to ensure that all firms in Nigeria have access to efficiently produced backbone services and initiatives to address the countrys poor trade logistics performance.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89624564","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Many developing countries operate geographically delineated economic areas in the form of export processing zones, special industrial zones, or free trade zones. This paper provides an overview of the application of World Trade Organization disciplines to incentive programs typically employed by developing countries in connection with such special economic zone programs. The analysis finds that the disciplines under the Agreement on Subsidies and Countervailing Measures have the most immediate relevance for middle-income World Trade Organization members that are not exempt for certain"grandfathered"programs, but will also concern other developing countries in the future, as their exemption expires or their per-capita income passes a threshold of US$1,000. Incentives related to special economic zones can be broadly grouped into three categories: (i) measures that are consistent with the World Trade Organization, notably exemptions from duties and taxes on goods exported from special economic zones; (ii) measures that are prohibited or subject to challenge under World Trade Organization law, notably export subsidies and import substitution or domestic content subsidies; and (iii) and measures where World Trade Orgainzation consistency depends on the facts of the particular case. The paper provides a set of recommendations on how to eliminate questionable incentives. The single most important zone policy reform to achieve World Trade Organization compliance is to remove all requirements to export and permit importation of goods manufactured in special economic zones into the national customs territory without any restrictions other than the application of import duties and taxes.
{"title":"Implications of WTO Disciplines for Special Economic Zones in Developing Countries","authors":"Stephen Creskoff, P. Walkenhorst","doi":"10.1596/1813-9450-4892","DOIUrl":"https://doi.org/10.1596/1813-9450-4892","url":null,"abstract":"Many developing countries operate geographically delineated economic areas in the form of export processing zones, special industrial zones, or free trade zones. This paper provides an overview of the application of World Trade Organization disciplines to incentive programs typically employed by developing countries in connection with such special economic zone programs. The analysis finds that the disciplines under the Agreement on Subsidies and Countervailing Measures have the most immediate relevance for middle-income World Trade Organization members that are not exempt for certain\"grandfathered\"programs, but will also concern other developing countries in the future, as their exemption expires or their per-capita income passes a threshold of US$1,000. Incentives related to special economic zones can be broadly grouped into three categories: (i) measures that are consistent with the World Trade Organization, notably exemptions from duties and taxes on goods exported from special economic zones; (ii) measures that are prohibited or subject to challenge under World Trade Organization law, notably export subsidies and import substitution or domestic content subsidies; and (iii) and measures where World Trade Orgainzation consistency depends on the facts of the particular case. The paper provides a set of recommendations on how to eliminate questionable incentives. The single most important zone policy reform to achieve World Trade Organization compliance is to remove all requirements to export and permit importation of goods manufactured in special economic zones into the national customs territory without any restrictions other than the application of import duties and taxes.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"100 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75280778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Distance and national borders are a big hurdle to the expansion of cross-border trade. Further constraints on integration come from heterogeneity in culture and institutions and from the forces of geography, defined as continents and oceans. Of the three sets of factors, the forces of geography are the most potent on integration. Continents act as 'natural' integrators and oceans as common water border. Countries in the same continent trade a quarter more than those located in different continents; and countries sharing the same ocean trade a half more than those that do not have a common water border. A certain degree of substitution exists between the effects on trade of continents and regional trade agreements (RTAs). This substitution is most evident in the presence of political blocs like the Soviet Union. With an active political bloc, the continent loses some of its integration property, leaving more room for the sub-continental RTA to enhance trade. When the political bloc withers away, on the other hand, the continent rises as an integration force relative to the RTA.
{"title":"The Limits to Integration","authors":"M. Fratianni, F. Marchionne","doi":"10.2139/ssrn.1358442","DOIUrl":"https://doi.org/10.2139/ssrn.1358442","url":null,"abstract":"Distance and national borders are a big hurdle to the expansion of cross-border trade. Further constraints on integration come from heterogeneity in culture and institutions and from the forces of geography, defined as continents and oceans. Of the three sets of factors, the forces of geography are the most potent on integration. Continents act as 'natural' integrators and oceans as common water border. Countries in the same continent trade a quarter more than those located in different continents; and countries sharing the same ocean trade a half more than those that do not have a common water border. A certain degree of substitution exists between the effects on trade of continents and regional trade agreements (RTAs). This substitution is most evident in the presence of political blocs like the Soviet Union. With an active political bloc, the continent loses some of its integration property, leaving more room for the sub-continental RTA to enhance trade. When the political bloc withers away, on the other hand, the continent rises as an integration force relative to the RTA.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82626871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dr. Krishnamurthy Ravichandran, Dr. Christy Selvarani
Apparel has retained an important place in human life starting from historical era to today's modern world1. Apparel industry in the contemporary market is truly a global industry. Textile and apparel industries are vital parts of the world economy, providing employment to tens of millions, mostly, women workers in nearly two hundred countries. Globalization is inevitable and unavoidable under the present world economic situation. Many industries are affected positively or negatively with the globalization trend. The textile industry is no exception. It has been facing a crisis situation in the past few years. It faces a tough competition in the world market6. The global textile and clothing trade has increased by around 60 times from $ 6 billion in 1962 to $395 in the year 2003. Many workers in Tiruppur region are migrant workers from the poor rural areas of Tamilnadu, where there is not enough employment and wages are extremely low. These workers came from nearby villages and they came as a family and settled in Tiruppur. As the wages of the head of the family is not sufficient, women and children have been forced to work in the knitwear units due to poverty.
{"title":"Problems Faced by Knit Ware Unit Workers in Tiruppur District, Tamil Nadu - Empirical Study","authors":"Dr. Krishnamurthy Ravichandran, Dr. Christy Selvarani","doi":"10.2139/ssrn.1354465","DOIUrl":"https://doi.org/10.2139/ssrn.1354465","url":null,"abstract":"Apparel has retained an important place in human life starting from historical era to today's modern world1. Apparel industry in the contemporary market is truly a global industry. Textile and apparel industries are vital parts of the world economy, providing employment to tens of millions, mostly, women workers in nearly two hundred countries. Globalization is inevitable and unavoidable under the present world economic situation. Many industries are affected positively or negatively with the globalization trend. The textile industry is no exception. It has been facing a crisis situation in the past few years. It faces a tough competition in the world market6. The global textile and clothing trade has increased by around 60 times from $ 6 billion in 1962 to $395 in the year 2003. Many workers in Tiruppur region are migrant workers from the poor rural areas of Tamilnadu, where there is not enough employment and wages are extremely low. These workers came from nearby villages and they came as a family and settled in Tiruppur. As the wages of the head of the family is not sufficient, women and children have been forced to work in the knitwear units due to poverty.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85196045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Diana-Manuela Lina, Maria Viorica Bedrule-Grigoruță
The aim of this paper is to present the importance of the cross border cooperation for the regional development in European Union. We would also want to put a stress on the euroregions concept, as forms for promoting regional integration through cross border cooperation - the case of Siret-Prut-Nistru Euroregion situated in Romania-Moldova Republic border area. With its last enlargement in 2007, the European Union has taken a big step forward in promoting security and prosperity on the European continent. The accession of Romania in E.U. also means that the external borders of the Union have changed, E.U. have acquired new neighbours and have come closer to old ones. These circumstances have created both opportunities and challenges. In this context, the Economic and Social Development Strategy for Siret-Prut-Nistru Euroregion, 2007-2013 project aims to promote reinforcing the existing forms of regional cooperation and to provide a strategic framework for their further development, which is corresponding to the objectives of the European Neighbourhood Policy. In this context, the cooperation between Ungheni (Republic of Moldova) and Iasi (Romania) evolved and conveyed to an institutional structure - Siret-Prut-Nistru euroregion. We think the future success or failure of this entity is depending on the public administrations capacities to promote and sustain partnerships.
{"title":"Cross-Border Cooperation - A Tool for Regional Development in Europe","authors":"Diana-Manuela Lina, Maria Viorica Bedrule-Grigoruță","doi":"10.2139/ssrn.1351728","DOIUrl":"https://doi.org/10.2139/ssrn.1351728","url":null,"abstract":"The aim of this paper is to present the importance of the cross border cooperation for the regional development in European Union. We would also want to put a stress on the euroregions concept, as forms for promoting regional integration through cross border cooperation - the case of Siret-Prut-Nistru Euroregion situated in Romania-Moldova Republic border area. With its last enlargement in 2007, the European Union has taken a big step forward in promoting security and prosperity on the European continent. The accession of Romania in E.U. also means that the external borders of the Union have changed, E.U. have acquired new neighbours and have come closer to old ones. These circumstances have created both opportunities and challenges. In this context, the Economic and Social Development Strategy for Siret-Prut-Nistru Euroregion, 2007-2013 project aims to promote reinforcing the existing forms of regional cooperation and to provide a strategic framework for their further development, which is corresponding to the objectives of the European Neighbourhood Policy. In this context, the cooperation between Ungheni (Republic of Moldova) and Iasi (Romania) evolved and conveyed to an institutional structure - Siret-Prut-Nistru euroregion. We think the future success or failure of this entity is depending on the public administrations capacities to promote and sustain partnerships.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73369266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper focuses on two apparent puzzles for the Italian economy: i) How can an extremely poor performance in productivity growth be compatible with strong employment growth?; and ii) How can a sharp decline in competitiveness come along with higher export prices and a general situation for exporters that looks far from desperate? Some possible explanations to these puzzles are presented in this paper. Special factors such as regularisation of immigrant workers and the entry of low-skilled workers into the labour market may have contributed to depressing measured productivity and overstating the loss in competitiveness. Against the backdrop of Italy's structural problems, this paper asks whether the Italian economy can adjust and grow. Medium-term prospects for the Italian economy remain challenging: for instance, growth in total factor productivity is still disappointingly low and competitiveness keeps deteriorating. However, there have been encouraging signs of improvement, notably the labour market has performed well over the past few years and in response to pressures from fierce foreign competition some adjustment appears to have taken place in the exposed sectors.
{"title":"Two Italian Puzzles: Are Productivity Growth and Competitiveness Really so Depressed?","authors":"Lorenzo Codogno","doi":"10.2139/ssrn.1417456","DOIUrl":"https://doi.org/10.2139/ssrn.1417456","url":null,"abstract":"This paper focuses on two apparent puzzles for the Italian economy: i) How can an extremely poor performance in productivity growth be compatible with strong employment growth?; and ii) How can a sharp decline in competitiveness come along with higher export prices and a general situation for exporters that looks far from desperate? Some possible explanations to these puzzles are presented in this paper. Special factors such as regularisation of immigrant workers and the entry of low-skilled workers into the labour market may have contributed to depressing measured productivity and overstating the loss in competitiveness. Against the backdrop of Italy's structural problems, this paper asks whether the Italian economy can adjust and grow. Medium-term prospects for the Italian economy remain challenging: for instance, growth in total factor productivity is still disappointingly low and competitiveness keeps deteriorating. However, there have been encouraging signs of improvement, notably the labour market has performed well over the past few years and in response to pressures from fierce foreign competition some adjustment appears to have taken place in the exposed sectors.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72704394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in the retail sector are taken into account. I present a new model of retailing in general equilibrium and explore its implications for a number of different shocks. The results demonstrate that retail assortments may remain constant if consumers have a low preference for diversity, and that consumer prices can even rise if the retail density is sufficiently low.
{"title":"International Trade and Retailing","authors":"C. Eckel","doi":"10.2139/ssrn.1368663","DOIUrl":"https://doi.org/10.2139/ssrn.1368663","url":null,"abstract":"The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in the retail sector are taken into account. I present a new model of retailing in general equilibrium and explore its implications for a number of different shocks. The results demonstrate that retail assortments may remain constant if consumers have a low preference for diversity, and that consumer prices can even rise if the retail density is sufficiently low.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"9 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75567085","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Markups vary widely across industries and countries, their heterogeneity has increased overtime and asymmetric exposure to international trade seems partly responsible for this phenomenon. In this paper, we study how the entire distribution of markups affects resource misallocation and welfare in a general equilibrium framework encompassing a large class of models with imperfect competition. We then identify conditions under which trade opening, by changing the distribution of markups, may reduce welfare. Our approach is novel both in its generality and in the emphasis on the second moment of the markup distribution. Two broad policy recommendations stand out from the analysis. First, whenever there is heterogeneity in markups, be it due to trade or other distortions, there is also an intersectoral misallocation, so that the equilibrium can be improved upon with an appropriate intervention. This suggests that trade liberalization and domestic industrial policy are complementary. Second, ensuring free entry is a crucial precondition to prevent adverse effects from asymmetric trade opening.
{"title":"Trade, Markup Heterogeneity and Misallocations","authors":"Paolo Epifani, G. Gancia","doi":"10.2139/ssrn.1553709","DOIUrl":"https://doi.org/10.2139/ssrn.1553709","url":null,"abstract":"Markups vary widely across industries and countries, their heterogeneity has increased overtime and asymmetric exposure to international trade seems partly responsible for this phenomenon. In this paper, we study how the entire distribution of markups affects resource misallocation and welfare in a general equilibrium framework encompassing a large class of models with imperfect competition. We then identify conditions under which trade opening, by changing the distribution of markups, may reduce welfare. Our approach is novel both in its generality and in the emphasis on the second moment of the markup distribution. Two broad policy recommendations stand out from the analysis. First, whenever there is heterogeneity in markups, be it due to trade or other distortions, there is also an intersectoral misallocation, so that the equilibrium can be improved upon with an appropriate intervention. This suggests that trade liberalization and domestic industrial policy are complementary. Second, ensuring free entry is a crucial precondition to prevent adverse effects from asymmetric trade opening.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"7 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74740983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We explore the nexus between North-South trade and migration in a cross country framework over the period 1990-2005. In addition to the relatively unexploited cross country framework, our main contribution resides in the search for heterogeneous responses of trade to migration according to different good typologies. Besides the usual distinction between homogeneous and di erentiated products dictated by the information channel, we also investigate the e ects of migration on trade in primary and nal goods and in labour and capital intensive goods with the purpose to assess the preferences and technology channels too. Our results show that, as expected, migration enhances the imports of primary and nal goods (preferences channel) and the exports of di erentiated-low elasticity of substitution goods (information channel). On the other hand, there is some evidence that the increase in the presence of migrants from the South enhances the exports of labour intensive goods (technology channel).
{"title":"A Cross Country View On South-North Migration And Trade: Dissecting the Channels.","authors":"Giulia Bettin, Alessia Lo Turco","doi":"10.2139/ssrn.1233544","DOIUrl":"https://doi.org/10.2139/ssrn.1233544","url":null,"abstract":"We explore the nexus between North-South trade and migration in a cross country framework over the period 1990-2005. In addition to the relatively unexploited cross country framework, our main contribution resides in the search for heterogeneous responses of trade to migration according to different good typologies. Besides the usual distinction between homogeneous and di erentiated products dictated by the information channel, we also investigate the e ects of migration on trade in primary and nal goods and in labour and capital intensive goods with the purpose to assess the preferences and technology channels too. Our results show that, as expected, migration enhances the imports of primary and nal goods (preferences channel) and the exports of di erentiated-low elasticity of substitution goods (information channel). On the other hand, there is some evidence that the increase in the presence of migrants from the South enhances the exports of labour intensive goods (technology channel).","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"21 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89074888","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2009-03-01DOI: 10.5089/9781451872101.001
Pietro Cova, M. Pisani, Nicoletta Batini, A. Rebucci
This paper investigates the role played by total factor productivity (TFP) in the tradable and nontradable sectors of the United States, the euro area, and Japan in the emergence and evolution of today's global trade imbalances. Simulation results based on a dynamic general equilibrium model of the world economy, and using the EU KLEMS database, indicate that TFP developments in these economies can account for a significant fraction of the total deterioration in the U.S. trade balance since 1999, as well as account for some the surpluses in the euro area and Japan. Differences in TFP developments across sectors can also partially explain the evolution of the real effective value of the U.S. dollar during this period.
{"title":"Global Imbalances: The Role of Non-Tradable Total Factor Productivity in Advanced Economies","authors":"Pietro Cova, M. Pisani, Nicoletta Batini, A. Rebucci","doi":"10.5089/9781451872101.001","DOIUrl":"https://doi.org/10.5089/9781451872101.001","url":null,"abstract":"This paper investigates the role played by total factor productivity (TFP) in the tradable and nontradable sectors of the United States, the euro area, and Japan in the emergence and evolution of today's global trade imbalances. Simulation results based on a dynamic general equilibrium model of the world economy, and using the EU KLEMS database, indicate that TFP developments in these economies can account for a significant fraction of the total deterioration in the U.S. trade balance since 1999, as well as account for some the surpluses in the euro area and Japan. Differences in TFP developments across sectors can also partially explain the evolution of the real effective value of the U.S. dollar during this period.","PeriodicalId":14396,"journal":{"name":"International Trade","volume":"47 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2009-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78828767","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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