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Articles 1 - 6 of 6
Full-Text Articles in Economics
Testing The Heckscher-Ohlin-Vanek Theory With A Natural Experiment, Assaf Zimring
Testing The Heckscher-Ohlin-Vanek Theory With A Natural Experiment, Assaf Zimring
Upjohn Institute Working Papers
This paper uses the historical episode of the near-elimination of commuting from the West Bank into Israel, which caused a large and rapid expansion of the local labor force in the West Bank, to test the predictions of the Heckscher-Ohlin-Vanek (HOV) mode of trade. I use variation between districts in the West Bank to test these predictions, and find strong support for them: Wage changes were not correlated with the size of the shock to the district labor force (Factor Price Insensitivity); Districts that received larger influx of returning commuters shifted production more towards labor intensive industries (Rybczynski effect); And …
Do Refugee-Immigrants Affect International Trade? Evidence From The World's Largest Refugee Case, Sucharita Ghosh, Ali Enami
Do Refugee-Immigrants Affect International Trade? Evidence From The World's Largest Refugee Case, Sucharita Ghosh, Ali Enami
Sucharita Ghosh
This paper investigates the impact of refugees on a developing host country's bilateral trade with the source country using a Vector Error Correction model and Granger causality tests. Using the largest case of refugee settlements in the world, we look at how refugees moving over several decades from Afghanistan to Pakistan have affected bilateral trade both directly and indirectly. We find that changes in Afghani refugees do not Granger cause movements in bilateral trade between Afghanistan and Pakistan but foreign aid to Afghanistan does Granger cause trade between the two countries.
International Trade In Telecommunication Services: A Cross Sectional Gravity Regression, Justin C. Doty
International Trade In Telecommunication Services: A Cross Sectional Gravity Regression, Justin C. Doty
Undergraduate Economic Review
The gravity model has been successful in measuring the effects of institutions, trade barriers, and other characteristics on trade in goods. Kimura and Lee [2004] find the gravity model is also suitable for measuring trade in services. The Organization for Economic Co-Development [2009a] develop gravity models for pilot service sectors such as construction, computer, professional, and telecommunication services. The purpose of this paper is to extend the findings of the OECD paper for telecommunication services. The paper finds that a 10 percent increase in distance between countries will decrease imports by 11.77 percent. Imports of telecommunication services are influenced by …
Historical Perspectives On Trade And Risk On The Silk Road, Middle East And China, E. Mine Cinar, Katherine Geusz, Joseph Johnson
Historical Perspectives On Trade And Risk On The Silk Road, Middle East And China, E. Mine Cinar, Katherine Geusz, Joseph Johnson
Topics in Middle Eastern and North African Economies
In this paper we examine historical trends in the Silk Road where we discuss historical trade risks, Chinese dynasties and trade. We examine trade risks along the land and sea routes through Central Asia and Middle East. We discuss Chinese balance of payments during different dynasties and the changes in the land and the sea routes. We examine how the trade patterns and routes shifted with the discovery of the New World and when the Dutch and the British formed pooled risk trade associations.
Openness And Inflation In The Long Run, David Beheshti, Richarch Evans
Openness And Inflation In The Long Run, David Beheshti, Richarch Evans
Journal of Undergraduate Research
Since the collapse of the Bretton-Woods Agreement in 1973, inflation rates have been steadily decreasing in most of the developed world. At the same time, countries have become increasingly open to international trade (see Figure 1). A possible explanation is that openness to trade and inflation are negatively correlated. This relationship is predicted in a highly-cited theoretical model by economist Kenneth Rogoff (1985) and in most of the previous literature on the subject. However, a more recent theoretical paper (Evans 2012) predicts that countries may engage in inflationary policy in order to tax foreign holders of domestic currency. As countries …
Unemployment And Economic Integration For Developing Countries, Haiwen Zhou
Unemployment And Economic Integration For Developing Countries, Haiwen Zhou
Economics Faculty Publications
While financial or trade integration between countries may increase the size of the market and aid the adoption of more advanced technologies, will it also increase the level of urban unemployment for a developing country? In this model, there is unemployment in the urban sector. Manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Financial firms provide capital to manufacturing firms and they also engage in oligopolistic competition. We show that an increase in the wage rate in the manufacturing sector changes neither the level of technology nor the level of employment in the manufacturing …