Digital Commons Network^™

Regulatory Protection And The Role Of International Cooperation, Yuan Mei

Research Collection School Of Economics

I develop a general equilibrium framework to analyze the welfare consequences of product regulations and their international harmonization. In my model, raising product standards reduces a negative consumption externality, but also increases the marginal and fixed costs of production. When product standards are set noncooperatively, the effects of standards on other countries' wages and number of firms are not internalized, giving rise to an international inefficiency. The World Trade Organization's nondiscrimination principle of national treatment only partly addresses this inefficiency. Welfare losses from abandoning national treatment average 2.8%, whereas the maximum welfare gains from efficient cooperation average 11.8%.

On The Market Failure Of “Missing Pioneers”, Shang-Jin Wei, Ziru Wei, Jianhuan Xu

Research Collection School Of Economics

An influential hypothesis states that export pioneers are too few relative to social optimum because the first exporter's action creates an informational public good for all subsequent exporters. The hypothesis has been invoked to justify certain types of government interventions. We note, however, that such market failure requires two inequalities to hold simultaneously: the discovery cost is neither too low nor too high. Neither has to hold in the data. We propose a structural estimation framework to evaluate the hypothesis, and estimate the parameters based on the customs data of Chinese electronics exports. Our key finding is that "missing pioneers" …

Wto Reform And China: Defining Or Defiling The Multilateral Trading System?, Henry S. Gao

Research Collection Yong Pung How School Of Law

In November 2001, China finally acceded to the World Trade Organization, in a deal described by then WTO Director-General Mike Moore as a “defining moment in the history of the multilateral trading system”. In recent years, however, China has been accused of defiling the letter and spirt of WTO rules with its unique economic model. Believing that existing WTO rules are inadequate in dealing with the China challenge, key WTO Members have launched a new round of WTO reform, which is the subject of this article. Contrary to popular belief, most of the problems concerning China are not new but …

Firm Productivity And The Variety Of Inputs And Outputs: Evidence From Chinese Trade Data, Ken Onishi, Jianhuan Xu, Guang Yang

Research Collection School Of Economics

This paper studies how the trade liberalization in China changes the firm productivity. We develop a framework to estimate revenue productivity (TFPR) and real productivity (TFPQ) with multi-product firms. We find that the aggregate TFPR increases 30\% from 2002-2007 and TFPQ increases 22\%, suggesting that the observed TFPR increase is mainly driven by real productivity change rather than the markup change. We further decompose the change of productivity into three channels: (1) access to foreign inputs; (2) technology upgrade; (3) resource re-allocation within the firm. We find the most significant channel is the last one, which explains half of the …

Between Lives And Economy: Optimal Covid-19 Containment Policy In Open Economies, Wen-Tai Hsu, Hsuan-Chih Luke Lin, Yang Han

Research Collection School Of Economics

This paper studies optimal containment policy for combating a pandemic in an open-economy context. It does so via quantitative analyses using a model that incorporates a standard epidemiological compartmental model in a multi-country, multi-sector Ricardian model of international trade with full-fledged input-output linkages. We devise a novel approach in computing optimal national policies in the long run, and contrast these policies with a baseline in which countries maintain their current policies until vaccine availability. The welfare gains under optimal policies are asymmetric as the gains for the set of countries which should tighten up the containment measures are much larger …

Globalization And Top Income Shares, Lin Ma, Dimitrije Ruzic

Research Collection School Of Economics

This paper documents empirically that access to global markets is associated with a higher executive-to-worker pay ratio within the firm. It then uses China's 2001 accession to the World Trade Organization as a trade shock to show that firms that exported to China prior to 2001 subsequently exported more, grew larger, and grew more unequal in terms of executive-to-worker pay. To evaluate analytically and quantitatively the impacts of globalization on top income inequality, this paper builds a model with heterogeneous firms, occupational choice, and executive compensation. In the model, executive compensation grows with the size of the firm, while the …

Lessons In Global Commerce (From An Early East India Company Employee), Emily Soon

Research Collection School of Social Sciences

International trade hurts local communities. It causes economic hardship at home and destroys the environment, while the culture of consumerism it fuels is destroying our values and way of life. Similar sentiments to these recur across the media today: this so-called backlash against globalisation is said to have contributed to Brexit and the rise of Trump, and to have transformed the shape of political movements across the world. This pent-up frustration seems to be quintessentially twenty-first century, the disillusioned rant of a world no longer charmed by the siren song of free trade and borderless commerce. And yet, the sentiments …

Improving Connectivity Between Asean's Legal Systems To Address Commercial Issues, Locknie Hsu, Pearlie M. C. Koh, Man Yip

Research Collection Yong Pung How School Of Law

This interim report on legal barriers to doing business in ASEAN coincides with the 50th Anniversary of ASEAN’s founding and the first year of the ASEAN Economic Community (AEC). The team is privileged to be supported by, among others, the Canada-ASEAN Business Council (CABC), given that it is also the 40th anniversary of dialogue relations between Canada and ASEAN.

Despite occasional misgivings about the “ASEAN Way”, ASEAN economic integration has come a very long way. The number of member States has grown over the 50 years since ASEAN’s founding, and the joint efforts among these States driving economic growth and …

Energy Price Shocks And External Balances, Bao Tan Huynh

Research Collection School Of Economics

This paper studies the impact of a wide set of energy price shocks on exter- nal balances using a two-country framework comprising multiple sectors and en- dogenous energy production with convex costs. The paper disentangles different demand and supply shocks in the energy market through their distinct impact on external balances. It provides a theoretical confirmation of Kilian et al. (2009) and a theoretical foundation to the determining role of the non-energy trade balance in the transmission of energy price shocks. The presence of durables also highlights the immediate channel through which energy prices impact the non-energy trade balance.

Regulatory Flexibilities And Tensions In Public Health And Trade: An Asian Perspective, Locknie Hsu

Research Collection Yong Pung How School Of Law

Regulatory issues relating to public health are a source of tensions in recent trade and investment negotiations, treaties and disputes. Issues arising from the intersection between public health regulation and trade and investment treaties have given Asian states pause for thought. They have led to a critical need to confront the scope and meaning of legal obligations vis-a-vis public health and regulatory objectives, and their implications for stakeholder interests. The intersection and resulting tensions have already led the WTO, WHO and WIPO to work together in an unprecedented manner to address some of the issues at the global level. The …

How To Boost Spain’S Business Presence In Singapore: Opportunities In The Wake Of The Free Trade Agreement With The Eu, Maria Garcia, Clara Portela

Research Collection School of Social Sciences

The recently signed Free Trade Agreement between the EU and Singapore opens up new business opportunities for Spanish companies on the island, which is already Spain’s top trading partner in South-East Asia. One highlight of the accord is the elimination of restrictions on the percentage of foreign investment in financial services and sectors such telecommunications, engineering and shipping. At the same time, the possibility of being able to bid on more government contracts can help companies involved in environmental protection and construction firms. The food industry will benefit from the novel creation of a registry of geographical indications.

Public Health Regulation: Convergence, Divergence, And Regulatory Tension: An Asian Perspective, Locknie Hsu

Research Collection Yong Pung How School Of Law

Regulatory issues relating to public health, including regulation of access to medicines and tobacco control have increasingly been the source of tension in recent trade and investment negotiations, treaties and disputes. The ongoing Trans-Pacific Partnership negotiations, which include a number of developing Asian states, are an example that brings some of these issues to the fore and show a divergence of negotiating views.

The intersection between public health regulation and trade and investment treaties has given some Asian states significant pause for thought; it has further led the international system to a critical need to confront the overlap of legal …

Public Health Regulation: The Impact Of Intersections Between Trade & Investment Treaties In Asia, Locknie Hsu

Research Collection Yong Pung How School Of Law

There has been an explosive growth of free trade agreements (FTAs) in recent years. The World Trade Report 2011 of the World Trade Organization (WTO) shows Asian members to be among the most active in signing preferential trade agreements. This unprecedented growth has attracted much academic and policy discussion on aspects such as their effects on trade liberalization, problems raised by specific trade and investment provisions, dispute settlement, and concerns over “regionalism”. Like such areas, public health regulation has been significantly affected by such treaties. FTAs, together with bilateral investment treaties (BITs), are rapidly forming a source of intersecting state …

Taking Justice Into Your Own Hand: The Tbi Mechanism In China, Henry Gao

Research Collection Yong Pung How School Of Law

To protect the trade interests of their firms in foreign markets, several countries have established various institutional arrangements. For example, the United States has the section 301 procedure, while the EU has the Trade Barrier Regulation (TBR). Learning from their experiences, China also established its own Foreign Trade Barrier Investigation (TBI) mechanism in 2002. This article starts with a discussion on the background for its establishment as well as the substantive and procedural requirements for investigations under TBI. In the next part, the article discusses how TBI has worked in practice by reviewing the Japan – Quantitative Restrictions on Laver …

Taming The Dragon: China's Experience In The Wto Dispute Settlement System, Henry Gao

Research Collection Yong Pung How School Of Law

To many observers, a major challenge raised by China's accession to the WTO is whether the WTO dispute settlement system could cope with China, one of the major traders in the world with an economy that is halfway between a planned economy and a market economy. In this article, the author tries to answer this question by reviewing China's experience in the WTO dispute settlement system. Historically, the senior leadership in China attached disproportionate importance to the WTO dispute settlement system and preferred to avoid using the system. Thus, in the first four cases in which China was sued or …

China's Participation In The Wto: A Lawyer's Perspective, Henry Gao

Research Collection Yong Pung How School Of Law

On 10 November 2001, China finally acceded to the World Trade Organization (WTO) after a marathon negotiation spanning 15 years. China's membership in the WTO raises interesting questions for both the WTO and China. For the WTO, the question is how to deal with China?a huge country of growing importance as a major global exporter and importer but is still in economic transition. For China, the question is how to implement the numerous obligations in the WTO accession package. This paper sets out by reviewing China's experience in the General Agreement on Tariffs and Trade (GATT) and the WTO. It …