Developing Economies最新文献

This study examines the effects of identified industry tariff shocks on firms' outward foreign direct investment (FDI) into their destinations. Using rich Korean firm-level data for 2010–18, the study decomposes FDI outflows from multinational enterprises (MNEs) into the number of subsidiaries (extensive margin) and average FDI for individual subsidiaries (intensive margin) in the destination. New evidence of tariff-driven FDI reveals that the tariff decrease shocks (TDS) (significant tariff decreases) lower the number of existing subsidiaries rather than the average FDI volume for the existing subsidiaries. In addition, more productive firms investing in developing countries lower the number of existing subsidiaries to a greater extent in response to TDS, implying that productive MNEs reallocate resources into selective core subsidiaries when a significant tariff decrease occurs.

Using monthly trade data from January 2018 to December 2019, we empirically examine the effects of the US-China trade war on Taiwan's exports as well as imports. On the export side, the tariff hike in the US against imports from China may increase Taiwan's exports to the US, (i.e., the substitution effect). To investigate this hypothesis, we examine how US tariffs on goods from China affect Taiwan's exports to the US. More directly, we also explore how China's exports to the US change Taiwanese exports to the US. On the import side, decline of China's export to the US may boost Taiwan's export while increasing its demand on Chinese intermediate inputs. Our empirical analyses confirmed the validity of these hypotheses. By contrast, we did not find a substitution effect in exports from neighboring countries—that is, Japan and South Korea.

This study empirically investigates the effects of tariff reductions in a least developed country on its economy. Specifically, we focus on tariff reductions based on the ASEAN Free Trade Area (AFTA) in Laos. First, we analyze how the reduction of AFTA tariff rates in Laos affects Laos's imports from AFTA member countries. Our main finding is that the reduction of AFTA tariffs in Laos does not significantly change Laos's imports. Second, we investigate their effects on plant-level employment. Consistent with the observation of a negligible change in Laos's imports, we find no significant changes in plant-level employment. In short, although Laos decreased its tariff rates against other AFTA members, imports from them did not significantly increase, and no significant changes occurred in employment. We discuss several possible reasons for these insignificant effects.

This study empirically examines how trade liberalization changes individuals' wages, with evidence from Thailand. We primarily focus on the effect of Thailand's tariff reduction under the ASEAN free trade regime. We use individual-level employment data for 2001, 2006, 2011, and 2016. We find that the reduction in AFTA tariffs in Thailand decreases the relative wages of the more educated and skilled workers. Thus, trade liberalization contributes to narrowing income inequality in terms of education and skills. Contrastingly, we do not find heterogeneous effects according to age, sex, marital status, location, or company size. Moreover, the results do not differ significantly between industries with or without international competitiveness.

We investigated the effects of the COVID-19 pandemic on small- and medium-sized enterprises in Jordan, Egypt, Tunisia, and Morocco. Using firm-level panel data from an enterprise survey, we highlight several new findings. The surveyed firms resorted to wage and work hour reductions more readily than layoffs in the wake of the pandemic. Within these firms, larger firms are more resilient, recover faster, and adapt more often. On the sector level, the accommodation and food services sector is the worst affected by most outcomes. Furthermore, we find that switching to remote work is associated with better outcomes, while participating in government assistance programs is not. On the other hand, firms that participate in international trade are more resilient and adaptable during the pandemic. The results of the study carry policy implications relevant to the resilience of small- and medium-sized enterprises in developing countries in times of extreme crisis.

Following a substantial increase in Indica rice imports from Cambodia and Myanmar, the European Union (EU) adopted safeguard measures to reinstate the common-customs tariff rate of 175 euros per ton from 2019, with progressive liberalization over three years. To estimate the impact of safeguard duties, this paper uses a sample of milled rice imports from 28 EU importers during 2017–20 and adopts a triple-differences approach. The results show that safeguard duties have a significantly negative impact on import values and quantity of affected goods and a significantly positive impact on import prices. Safeguard duties appear to induce trade redirection to other third markets but produce little substitution effects for EU rice producers.