Pub Date : 2022-10-28DOI: 10.1177/00157325221128654
Naiyue Cui, Yunfang Hu
This study examines the macroeconomic effects of foreign aid and fiscal policy by employing a multi-sector growth model. Foreign aid may decrease the recipient country’s market activities by lowering its capital accumulation and shifting market labour and capital to the non-market sector. This market activity shifting can improve the recipient country’s foreign asset/debt position where real exchange rate plays a role. We examine fiscal policies’ long- and short-run impacts and the recipient country’s administration efficiency in handling aid. Efficiency improvements in the recipient country’s governance of foreign aid can lower its real exchange rate, thereby contribute to improving foreign asset/debt holdings. Although administration costs in foreign aid may cause losses, by raising both market and non-market goods consumption, foreign aid improves the welfare of the recipient country. Our numerical analysis demonstrates the comparative statics and comparative dynamics impacts of several fiscal policy experiments. We illustrate that capital and labour income’s taxation effects can be very different.
{"title":"Foreign Aid and Fiscal Policy in a Small-Open Economy with a Non-Market Sector","authors":"Naiyue Cui, Yunfang Hu","doi":"10.1177/00157325221128654","DOIUrl":"https://doi.org/10.1177/00157325221128654","url":null,"abstract":"This study examines the macroeconomic effects of foreign aid and fiscal policy by employing a multi-sector growth model. Foreign aid may decrease the recipient country’s market activities by lowering its capital accumulation and shifting market labour and capital to the non-market sector. This market activity shifting can improve the recipient country’s foreign asset/debt position where real exchange rate plays a role. We examine fiscal policies’ long- and short-run impacts and the recipient country’s administration efficiency in handling aid. Efficiency improvements in the recipient country’s governance of foreign aid can lower its real exchange rate, thereby contribute to improving foreign asset/debt holdings. Although administration costs in foreign aid may cause losses, by raising both market and non-market goods consumption, foreign aid improves the welfare of the recipient country. Our numerical analysis demonstrates the comparative statics and comparative dynamics impacts of several fiscal policy experiments. We illustrate that capital and labour income’s taxation effects can be very different.","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75220541","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 : 2022-10-02DOI: 10.1177/00157325221127606
An‐Chi Tung, H. Wan
This study showcases the specific inspiration from Professor Kemp by focusing on one particular firm—ASML, a Dutch lithography company. It has become the only producer to launch a group of products, the extreme ultraviolet (EUV) systems for advanced integrated circuits (ICs). Such success is relatively new and is due to a single, unprecedented multi-year programme, Customer Co-investment Program CCIP), since 2012. This programme accelerated ASML’s development of EUV, which has marginalised the other two rivals and former market leaders, Nikon and Canon, that they can only compete in the less advanced DUV and i-line systems. The article explores a number of interrelated aspects about the selected case. It discusses how economic theories offer tools into the crux of the matter. It then reviews technical and historical facts to facilitate further understanding. Next, the article considers two main issues: Is the ASML’s claim that CCIP is necessary based on the financing requirement linked to the new technology true? And is the outcome good? The first question is analysed by four inter-related levels of information asymmetry, and the second is discussed at a broader level. Finally, the article explains how Kemp and Shimomura inspires the analysis here of the illustrative case of ASML. JEL Codes: D22, D23, D82, L22, L63
{"title":"Organisational Investment: The Case of ASML—Can the Product Make the Producer?","authors":"An‐Chi Tung, H. Wan","doi":"10.1177/00157325221127606","DOIUrl":"https://doi.org/10.1177/00157325221127606","url":null,"abstract":"This study showcases the specific inspiration from Professor Kemp by focusing on one particular firm—ASML, a Dutch lithography company. It has become the only producer to launch a group of products, the extreme ultraviolet (EUV) systems for advanced integrated circuits (ICs). Such success is relatively new and is due to a single, unprecedented multi-year programme, Customer Co-investment Program CCIP), since 2012. This programme accelerated ASML’s development of EUV, which has marginalised the other two rivals and former market leaders, Nikon and Canon, that they can only compete in the less advanced DUV and i-line systems. The article explores a number of interrelated aspects about the selected case. It discusses how economic theories offer tools into the crux of the matter. It then reviews technical and historical facts to facilitate further understanding. Next, the article considers two main issues: Is the ASML’s claim that CCIP is necessary based on the financing requirement linked to the new technology true? And is the outcome good? The first question is analysed by four inter-related levels of information asymmetry, and the second is discussed at a broader level. Finally, the article explains how Kemp and Shimomura inspires the analysis here of the illustrative case of ASML. JEL Codes: D22, D23, D82, L22, L63","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86806477","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 : 2022-09-26DOI: 10.1177/00157325221120712
Hajra Manzoor, P. Mir
Currently, the world is witnessing one of China’s most significant economic integration initiatives–One Belt One Road (OBOR). This article aims to evaluate the general equilibrium (GE) effects of this initiative on member nations. The structural gravity model is used in this study to perform the counterfactual analysis while analysing the conditional and general equilibrium effects of the trade policy of border removal on international trade flow among the member countries. The estimates suggest varied strade gains for the member countries in response to the trade policy changes. Most Asian countries are witnessing an increase in producers’ prices and therefore gaining more from globalisation. We also deduced that the member countries had reached half of their potential to trade gains, with most developing countries witnessing a decrease in multilateral trade resistance (MTR). The findings of this study implicate a debate for the policymakers over continuing support for further trade integration. JEL Codes: C21, F15, F17
{"title":"General Equilibrium Trade Policy Analysis among One Belt One Road Nations Using Structural Gravity Framework","authors":"Hajra Manzoor, P. Mir","doi":"10.1177/00157325221120712","DOIUrl":"https://doi.org/10.1177/00157325221120712","url":null,"abstract":"Currently, the world is witnessing one of China’s most significant economic integration initiatives–One Belt One Road (OBOR). This article aims to evaluate the general equilibrium (GE) effects of this initiative on member nations. The structural gravity model is used in this study to perform the counterfactual analysis while analysing the conditional and general equilibrium effects of the trade policy of border removal on international trade flow among the member countries. The estimates suggest varied strade gains for the member countries in response to the trade policy changes. Most Asian countries are witnessing an increase in producers’ prices and therefore gaining more from globalisation. We also deduced that the member countries had reached half of their potential to trade gains, with most developing countries witnessing a decrease in multilateral trade resistance (MTR). The findings of this study implicate a debate for the policymakers over continuing support for further trade integration. JEL Codes: C21, F15, F17","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89373111","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 : 2022-09-25DOI: 10.1177/00157325221120711
Ngo van Long
This article revisits Kemp’s and Tran-Nam’s incorporation into trade theory the Gossenian theme that consumption takes time. We show how the substitutability between time-intensive household-produced consumption goods and time-saving commercially produced consumption goods (which save households’ consumption and production time) together with capital accumulation can lead to an increase in trash and international trade in trash. The applicability of the standard gains from trade theorems is shown to be compromised by the externalities associated with international trade in trash between North and South. Under some parameter values, South is better off under autarky than under free trade in trash and the gains from trade by North is not sufficient to compensate South’s loss from trade. JEL Codes: D13, F18, F13
{"title":"Saving Household Production-Cum-Consumption Time: Implications for International Trade in Trash","authors":"Ngo van Long","doi":"10.1177/00157325221120711","DOIUrl":"https://doi.org/10.1177/00157325221120711","url":null,"abstract":"This article revisits Kemp’s and Tran-Nam’s incorporation into trade theory the Gossenian theme that consumption takes time. We show how the substitutability between time-intensive household-produced consumption goods and time-saving commercially produced consumption goods (which save households’ consumption and production time) together with capital accumulation can lead to an increase in trash and international trade in trash. The applicability of the standard gains from trade theorems is shown to be compromised by the externalities associated with international trade in trash between North and South. Under some parameter values, South is better off under autarky than under free trade in trash and the gains from trade by North is not sufficient to compensate South’s loss from trade. JEL Codes: D13, F18, F13","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80814539","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 : 2022-09-25DOI: 10.1177/00157325221120720
Samir Das, A. Biswas
The imposition of restrictive trade policies and consequent fabrication of foreign trade statistics acts as hindrance for effective policy formulations in the developing countries. This article presents the trade misreporting scenario of Bangladesh in relation to major Asian trade partner countries (China, India and Singapore) between 1973 and 2018 and examines the possibilities of informal capital movements across borders. Using the vector autoregression (VAR) and autoregressive distributed lag (ARDL) models, we first build partner-level exercise, followed by a combined panel, and find that spot and forward exchange rates, custom duties and real interest rate differences between foreign and home largely affect trade misreporting rates. Interestingly, we also find that the values of past import under-invoicing might also lead to export under-invoicing and vice versa, a two-way causal relationship. JEL Codes: F14, F68, C10, C52
{"title":"Trade Data Falsification and Informal Capita Movement: A Study of Bangladesh with Major Asian Trade Partners","authors":"Samir Das, A. Biswas","doi":"10.1177/00157325221120720","DOIUrl":"https://doi.org/10.1177/00157325221120720","url":null,"abstract":"The imposition of restrictive trade policies and consequent fabrication of foreign trade statistics acts as hindrance for effective policy formulations in the developing countries. This article presents the trade misreporting scenario of Bangladesh in relation to major Asian trade partner countries (China, India and Singapore) between 1973 and 2018 and examines the possibilities of informal capital movements across borders. Using the vector autoregression (VAR) and autoregressive distributed lag (ARDL) models, we first build partner-level exercise, followed by a combined panel, and find that spot and forward exchange rates, custom duties and real interest rate differences between foreign and home largely affect trade misreporting rates. Interestingly, we also find that the values of past import under-invoicing might also lead to export under-invoicing and vice versa, a two-way causal relationship. JEL Codes: F14, F68, C10, C52","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89579046","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 : 2022-09-25DOI: 10.1177/00157325221119019
A. Woodland, Chisato Yoshida
We construct and analyse a two-country general equilibrium model in which the home and foreign countries trade two final goods, and legal immigration is restricted. International trade is distorted via tariffs imposed by both countries. Foreign migrants attempt illegal entry to the home country but face a probability of detection and arrest by border patrol of the home country. We examine how stricter border patrol affects the level of illegal immigration, establish conditions under which stricter border patrol reduces successful illegal immigration and determine the welfare implications of this policy change. We also determine the effects on illegal immigration and the welfare of all agents when illegal immigrants increase remittances back to the source country. JEL Codes: F13, F16, F22.
{"title":"Illegal Immigration with Tariff Distortions","authors":"A. Woodland, Chisato Yoshida","doi":"10.1177/00157325221119019","DOIUrl":"https://doi.org/10.1177/00157325221119019","url":null,"abstract":"We construct and analyse a two-country general equilibrium model in which the home and foreign countries trade two final goods, and legal immigration is restricted. International trade is distorted via tariffs imposed by both countries. Foreign migrants attempt illegal entry to the home country but face a probability of detection and arrest by border patrol of the home country. We examine how stricter border patrol affects the level of illegal immigration, establish conditions under which stricter border patrol reduces successful illegal immigration and determine the welfare implications of this policy change. We also determine the effects on illegal immigration and the welfare of all agents when illegal immigrants increase remittances back to the source country. JEL Codes: F13, F16, F22.","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77295890","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 : 2022-09-25DOI: 10.1177/00157325221129725
B. Tran-Nam, M. Tawada
{"title":"Overview of the Special Issue in Honour of Professor Murray C. Kemp","authors":"B. Tran-Nam, M. Tawada","doi":"10.1177/00157325221129725","DOIUrl":"https://doi.org/10.1177/00157325221129725","url":null,"abstract":"","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91264791","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 : 2022-09-25DOI: 10.1177/00157325221121433
A. Gupta, S. Sangita
Over the past two and half decades, rising non-tariff barriers, such as SPS and TBT measures appear to negate any benefits accruing from declining tariffs. The adoption of higher standards reflects efforts, generally by developed nations, towards protecting both human and environmental health. However, the burden of compliance falls on the upstream players of the supply chain, mostly located in the Global South. In this article, we explore if imposing food standards has a differential impact on the exporters of marine products from high-income and low-income countries. Using panel data analysis based on bilateral trade between 50 exporters and 188 importers of marine goods at HS6 level codes from 1995 to 2018, we conclude that imposing food standards has a significantly negative impact on exports of marine industries. Moreover, it appears that after 2008, food standards have become relatively more stringent, and their impact has varied based on economic size of the exporter. Relatively richer countries were able to expand their exports in the presence of standards. However, marine exports of poorer nations reduced. This contrasting impact of food standards on the high- and low-income countries significantly changed the pattern of global marine trade. JEL Codes: F1, F14, Q17
{"title":"Impact of Food Standards on Patterns of International Trade in Marine Products","authors":"A. Gupta, S. Sangita","doi":"10.1177/00157325221121433","DOIUrl":"https://doi.org/10.1177/00157325221121433","url":null,"abstract":"Over the past two and half decades, rising non-tariff barriers, such as SPS and TBT measures appear to negate any benefits accruing from declining tariffs. The adoption of higher standards reflects efforts, generally by developed nations, towards protecting both human and environmental health. However, the burden of compliance falls on the upstream players of the supply chain, mostly located in the Global South. In this article, we explore if imposing food standards has a differential impact on the exporters of marine products from high-income and low-income countries. Using panel data analysis based on bilateral trade between 50 exporters and 188 importers of marine goods at HS6 level codes from 1995 to 2018, we conclude that imposing food standards has a significantly negative impact on exports of marine industries. Moreover, it appears that after 2008, food standards have become relatively more stringent, and their impact has varied based on economic size of the exporter. Relatively richer countries were able to expand their exports in the presence of standards. However, marine exports of poorer nations reduced. This contrasting impact of food standards on the high- and low-income countries significantly changed the pattern of global marine trade. JEL Codes: F1, F14, Q17","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84804806","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 : 2022-09-16DOI: 10.1177/00157325221120623
S. Marjit, Sharmi Sen, K. Gupta
The article attempts to consider the impact of a customs union formed between two small countries embedded in the global economy and trading in intermediates, in terms of a general equilibrium framework. It shows that with such a union both countries will gain, although there will be asymmetric effect on wage inequality. However, with higher capital stock the significance of the formation of customs union will be undermined. It also shows that perfect international capital mobility will lead to finite changes in the economy, shutting down the less capital intensive unskilled export sector in each country, which in turn makes the bilateral union irrelevant. Further tariff reduction will increase inequality in both countries. We have also considered the welfare effects of formation of customs union in the form of tariff cut and such a tariff reduction unequivocally improves welfare of the customs union irrespective of small country and large country assumptions, without any intra-union income transfer. JEL Codes: F02, F11, F55, F68
{"title":"Customs Union, Wage Inequality and Welfare in General Equilibrium","authors":"S. Marjit, Sharmi Sen, K. Gupta","doi":"10.1177/00157325221120623","DOIUrl":"https://doi.org/10.1177/00157325221120623","url":null,"abstract":"The article attempts to consider the impact of a customs union formed between two small countries embedded in the global economy and trading in intermediates, in terms of a general equilibrium framework. It shows that with such a union both countries will gain, although there will be asymmetric effect on wage inequality. However, with higher capital stock the significance of the formation of customs union will be undermined. It also shows that perfect international capital mobility will lead to finite changes in the economy, shutting down the less capital intensive unskilled export sector in each country, which in turn makes the bilateral union irrelevant. Further tariff reduction will increase inequality in both countries. We have also considered the welfare effects of formation of customs union in the form of tariff cut and such a tariff reduction unequivocally improves welfare of the customs union irrespective of small country and large country assumptions, without any intra-union income transfer. JEL Codes: F02, F11, F55, F68","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80730132","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 : 2022-09-10DOI: 10.1177/00157325221119048
Masayuki Okawa
This paper studies the effects of immigration policy on the immigration of foreign medical workers on the welfare and income distribution of home medical workers and labourers. We set up a simple small open economy with two traded goods and non-traded medical care services. In the economy, there exists a constant rate of labourers who get ill health and must leave their jobs and thereby lose part of their income. But they can reduce the loss of working time and income by consuming medical services. There are two channels that consumption of the medical service affects the welfare of consumers: (i) consumption of medical service raises the state of health and increases utility, and (ii) consumption of medical service reduces the leave period of labourers and raises their wage income (labour supply-enhancing effect). We see that the above second effect makes the effective price of the medical service for the consumer lower than its market price and causes consumption bias towards the consumption of medical services. To introduce the above properties of consumption of medical service, we define the effective expenditure function of the labourers and examine its properties and conduct comparative static analyses. JEL codes: F13, F22
{"title":"Immigration of Medical Workers and Variable Labour Supply","authors":"Masayuki Okawa","doi":"10.1177/00157325221119048","DOIUrl":"https://doi.org/10.1177/00157325221119048","url":null,"abstract":"This paper studies the effects of immigration policy on the immigration of foreign medical workers on the welfare and income distribution of home medical workers and labourers. We set up a simple small open economy with two traded goods and non-traded medical care services. In the economy, there exists a constant rate of labourers who get ill health and must leave their jobs and thereby lose part of their income. But they can reduce the loss of working time and income by consuming medical services. There are two channels that consumption of the medical service affects the welfare of consumers: (i) consumption of medical service raises the state of health and increases utility, and (ii) consumption of medical service reduces the leave period of labourers and raises their wage income (labour supply-enhancing effect). We see that the above second effect makes the effective price of the medical service for the consumer lower than its market price and causes consumption bias towards the consumption of medical services. To introduce the above properties of consumption of medical service, we define the effective expenditure function of the labourers and examine its properties and conduct comparative static analyses. JEL codes: F13, F22","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90967500","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：