Social and Behavioral Sciences Commons^™

Do Not Take Peace For Granted: Adam Smith's Warning On The Relation Between Commerce And War, Maria Pia Paganelli, R. Schumacher

Maria Pia Paganelli

Is trade a promoter of peace? Adam Smith, one of the earliest defenders of trade, worries that commerce may instigate some perverse incentives, encouraging wars. The wealth that commerce generates decreases the relative cost of wars, increases the ability to finance wars through debts, which decreases their perceived cost, and increases the willingness of commercial interests to use wars to extend their markets, increasing the number and prolonging the length of wars. Smith, therefore, cannot assume that trade would yield a peaceful world. While defending and promoting trade, Smith warns us not to take peace for granted.

Divergence Of Usda Trade Payments For Corn, Soybean, And Wheat Producers And ‘Nowcasts’ Of Tariff Impacts, Matthew Elliott, Lisa Elliott

Matthew Elliott

No abstract provided.

Understanding The Decline Of U.S. Manufacturing Employment, Susan N. Houseman

Susan N. Houseman

U.S. manufacturing experienced a precipitous and historically unprecedented decline in employment in the 2000s. Many economists and other analysts—pointing to decades of statistics showing that manufacturing real (inflation-adjusted) output growth has largely kept pace with private sector real output growth, that productivity growth has been much higher, and that the sector’s share of aggregate employment has been declining—argue that manufacturing’s job losses are largely the result of productivity growth (assumed to reflect automation) and are part of a long-term trend. Since the 1980s, however, the apparently robust growth in manufacturing real output and productivity have been driven by a relatively …

Trade, Competitiveness And Employment In The Global Economy, Susan Houseman

Susan N. Houseman

No abstract provided.

The Role Of Trade In Amplifying Crime, Catherine De Fontenay

Catherine de Fontenay

There is enormous variation in crime rates across countries, greater than differences in income or inequality would suggest. There are currently no explanations for this magnitude of variation. We show that much of this variation can be explained using trade flows. We add a “Crime” sector to a traditional two-sector two-input Heckscher-Ohlin model. Under autarky, countries have the same crime rate, but free trade is found to increase crime in the resource-rich country and to reduce crime in the labor-rich country by an equal amount. The negative externality from increased crime can be strong enough to cancel out the gains …

Eu-China Economic Relations: Interactions And Barriers, Zheng Lu

Zheng Lu (Chinese: 路征)

EU-China economic interactions became more and more frequent in the past decades, nowadays EU and China are main trade partner for each other. This paper analyzed EU-China economic interactions from three dimensions: bilateral governmental interactions, trade and investment flows as well as barriers to trade and investment. Findings show that EU-China close relationship is particularly based on goods trade especially on intra-industrial trade of manufacturing industrial products, and trade imbalance is arising from trade in Machinery and Transport Equipment and Other Manufactured Goods (e.g., Clothing and clothing accessories); This paper also found that there exist a myriad of trade and …

God And The Global Economy: Religion And Attitudes Towards Trade And Immigration In The United States, Joseph P. Daniels, Marc Von Der Ruhr

Joseph P Daniels

Using the results of a national identity survey, we test the impact of religious affiliation on trade and immigration-policy preferences of US residents while controlling for individual level of skill, political ideology and other important demographic characteristics. Our results show that religion is an important determinant of international-policy preferences as individuals who are pre-Vatican II Catholic or members of a fundamentalist Protestant denomination are more likely to prefer policies that restrict imports and immigration. Religiosity, in contrast, has a separate effect of moderating attitudes towards immigration. In addition, we find evidence of denominational effects among African Americans in that members …

On The Pro-Trade Effects Of Immigrants, Massimiliano Bratti, Luca De Benedictis, Gianluca Santoni

Luca De Benedictis

This paper investigates the causal effect of immigration on trade flows using Italian panel data at the province level. We exploit the exceptional characteristics of the Italian data (the fine geographical disaggregation, the very high number of countries of origin of immigrants, the high heterogeneity of social and economic characteristics of Italian provinces, and the absence of cultural or historical ties) coupled with the use of a wide set of fixed effects and an `instrument' based on immigrants' enclaves. We find that immigrants have a significant positive effect on both exports and imports, but much larger for the latter. The …

Can A Unilateral Carbon Tax Reduce Emissions Elsewhere?, Joshua Elliott, Don Fullerton

Don Fullerton

One country or sector that tries to reduce greenhouse gas emissions may fear that other countries or sectors will get a competitive advantage and increase emissions. Computable general equilibrium (CGE) models such as Elliott et al (2010a,b) indicate that 15% to 25% of abatement might be offset by this “leakage.” Yet the Fullerton et al (2012) simple two-sector analytical general equilibrium model shows an offsetting term with negative leakage. In this paper, we use a full CGE model with many countries and many goods to measure effects in a way that allows for this negative leakage term. We vary elasticities …

Negative Leakage, Kathy Baylis, Don Fullerton, Daniel H. Karney

Kathy Baylis

Our analytical general equilibrium model solves for effects of a small increase in carbon tax on leakage - the increase in emissions elsewhere. Identical consumers buy two goods using income from endowments that are mobile between sectors. Usually an increase in one sector's tax raises output price, so consumption shifts to the other good, causing positive leakage. Here, we find a new negative effect not recognized in existing literature: the taxes sector substitutes away from carbon into clean inputs, so it may absorb resources, shrink the other sector and reduce their emissions. This "abatement resource effect" could offset some or …

Leakage, Welfare, And Cost-Effectiveness Of Carbon Policy, Kathy Baylis, Don Fullerton, Daniel H. Karney

Don Fullerton

We extend the model of Fullerton et al (2012) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the welfare cost of the emissions tax or permit scheme. Whereas that prior paper solves for changes in emissions quantities and finds that leakage maybe negative, we show here that all cases with negative leakage in that model are cases where a unilateral carbon tax results in a welfare loss. With positive leakage, however, a unilateral policy can improve welfare.

Integración Regional Y Políticas Transnacionales: Eitlc Y Las Estrategias Del Sector Popular En México, Maria Lorena Cook

Maria Lorena Cook

En la era del TLC se han creado nuevos intereses, recursos, aliados y arenas para la acción estratégica tanto de actors gubernamentales como no gubernamentales. Si muchas organizaciones populares vieron en el TLC una continuación de la desigualdad, sin embargo también encontraron una coyuntura para la emergencia de coaliciones transnacionales de corte popular. Así se formaron redes de apoyo entre trabajadores mexicanos y estadounidenses. Muchas organizaciones no gubermentales vencieron su desconfianza hacia los vecinos del norte. Hubo apoyo mutuo para presionar al Congreso de Estados Unidos. Con el debate en torno al TLC cambió no tanto el desarrollo institucional ni …

Eu-China Economic And Trade Relations: An Overview, Zheng Lu

Zheng Lu (Chinese: 路征)

This presentation introduced the economic relations and barriers between European Union and P.R.China.

Something Fishy In Seafood Trade? The Relationship Between Tariff And Non-Tariff Barriers, Kathy Baylis, Lia Nogueira, Kathryn Pace

Kathy Baylis

As importing countries honor WTO commitments and lower tariff rates, they may be replacing traditional tariff barriers with non-tariff barriers. Recent literature has found that the implementation of food safety standards, specifically the use of import notifications and rejections, has acted as a significant barrier to trade in both the EU and the US. This article estimates the relation between declining tariff rates and the use of non-tariff barriers, measured by a count of EU seafood import notifications. We divide the motives for the use of import notifications into risk and protectionism. The results show that while non-tariff barriers are …

[Review Of The Book Jobs And Incomes In A Globalizing World], Gary S. Fields

Gary S Fields

[Excerpt] This is a timely book about the labour market effects of globalization – specifically, the effects of globalization on jobs, wages and incomes in industrialized and developing countries. Ajit Ghose defines globalization as “a process of integration of national markets into a global market.” Globalization, he writes, is of such great concern now because of a new development: trade between developed and developing countries in competing products.

[Review Of The Book Labor Regulation In The Global Economy], Gary Fields

Gary S Fields

[Excerpt] This is a practical and useful volume on labor standards in today’s highly globalized world. An introduction is followed by ten chapters, some of them general, talking about the ILO or the WTO, and some more specific, focusing on the United States and Europe. The general chapters cover the ILO, corporate codes of conduct, efforts to introduce labor standards into the multilateral trade regime, arguments for and against labor standards in trade, and policy implications. The specific chapters cover U.S. initiatives on child labor, labor standards in the bilateral trade agreements entered into by the United States and the …

Industrialization And Employment In Hong Kong, Korea, Singapore, And Taiwan, Gary S. Fields

Gary S Fields

[Excerpt] What are the links between macroeconomic growth and microeconomic development objectives? The initial view held by many economists, especially Latin America specialists, was that the goals of growth, employment, and income distribution are mutually incompatible and that the pursuit of all these objectives at once is bound to be futile. But in the last few years, studies of the economies of the Asian Newly Industrializing Countries (NICs), Hong Kong, Korea, Singapore, and Taiwan—the so-called "Group of Four"—have emerged, and they point to very rapid aggregate growth and marked improvements in labor market conditions and in income distribution. This chapter …

Trade Strategies And The Poor: Adjusting To New Realities, Gary S. Fields

Gary S Fields

[Excerpt] The major policy issue examined in this paper is that of a country's choice of a trade strategy in the context of helping the poor. As the end of the 1980s approaches, developing countries face a much more difficult economic situation than that which they confronted at the end of the 1970s. The paper begins by reviewing these new realities and the need for adjusting to them. After mentioning some non-policies, I proceed to consider both successful and unsuccessful country experiences and draw lessons from them. One policy singled out for special attention is wage policy and its interaction …

Trade And Labour Standards: A Review Of The Issues, Gary S. Fields

Gary S Fields

[Excerpt] This is a paper by a labour economist for trade specialists. It is written at a time of hope tempered by fear. On the trade side, the hope is that the new World Trade Organisation will stimulate a better trading environment for all countries. On the labour side, the hope is that labour standards can continually be improved for most if not all of the world's working people. But there are also fears. One fear is that these goals may be difficult to achieve simultaneously. Another is that they may be undone by various pressures, including issues left unresolved …

Employment Generation And Poverty Alleviation In Developing Economies, Gary S. Fields

Gary S Fields

[Excerpt] We know well that the East Asian economies have achieved higher economic growth rates than those in any other region of the world and that production for world markets has featured as a hallmark of the East Asian successes. This paper has three purposes: first, to present comparative data showing that the rates at which employment opportunities improve and poverty is reduced mirror countries' differential growth experiences; second, to examine differences in labour market institutions, demonstrating that those in East Asia have similarities more likely to lead to higher output performance and shared improvements in living conditions; and third, …

The World Trade Network, Luca De Benedictis, Lucia Tajoli

Luca De Benedictis

This paper uses the tools of network analysis and graph theory to graphically and analytically represent the characteristics of world trade. The structure of the World Trade Network is compared over time, detecting and interpreting patterns of trade ties among countries. In particular, we assess whether the entrance of a number of new important players into the world trading system in recent years has changed the main characteristics of the existing structure of world trade, or whether the existing network was simply extended to a new group of countries. We also analyze whether the observed changes in international trade flow …

Workers’ View Of The Impact Of Trade On Jobs, Clair Brown, Julia Ingrid Lane, Time Sturgeon

Julia Ingrid Lane

This paper uses new data to examine how workers’ perceptions of the impact of trade on jobs are related to economic variables representing their career paths, job characteristics, and local labor market conditions. Interestingly, given prior literature, we find that workers’ perceptions do not reflect their job characteristics or the movability of their jobs. Their perceptions of trade impact primarily reflect local labor market conditions (hiring and separation rates) and education. The determinants of workers’ perceptions of trade present a different pattern compared to their perceptions of job security.

Slides - Africa In The World Trade Network, Luca De Benedictis

Luca De Benedictis

Here you find the slides of the presentation of the paper Africa in the World Trade Network held in Lausanne University at ETSG 2010, September 10th 2010

Infrastructure For Economic Growth And Development: The Financing Gap, Michael Regan

Michael Regan

Extract: Infrastructure is one of the most important tools for accelerating economic development in developing and transition economies. However, the benefits are not always uniform across nations; the results vary significantly between industries, and improved social returns from additional investment have more to do with the procurement method and operational efficiencies than the amount of money that is employed. This article provides a review of the role that infrastructure plays in strengthening economic development and poverty reduction and reducing trade costs to support improved regional cooperation and integration in Commonwealth countries.

Africa In The World Trade Network, Luca De Benedictis

Luca De Benedictis

The Global Financial Crisis And Its Impact On Trade: The World And The European Emerging Economies, Robert C. Shelburne

Robert C. Shelburne

Presentation at the Azerbaijan Diplomatic Academy/UNCTAD on the key issues on the international agenda. Discusses the impact of the 2007-2010 global financial crisis on world trade with an emphasis on the European emerging economies. Includes a discussion of policies to reduce the impact of future trade shocks and how the international economic system may be reformed as a result of the crisis.

Aspects Of Countertrade And Development, William Rieber

William Rieber

Countertrade or international barter has enjoyed a flourish of activity during the 1980s. Some authors have suggested that countertrade is an effective development tool for third world countries and indeed represents the beginning of a rearrangement of the international economic order in favor of lesser developed. countries....On the other hand, others have suggested that countertrade is an aberration reflecting a misguided understanding of international trade and finance by LDC policymakers.

The Relocation Of Crime, Catherine C. De Fontenay

Catherine de Fontenay

We add a new sector called Crime to a traditional two-sector two-input Heckscher-Ohlin model of trade between countries. Trade is found to increase crime in the resource-rich country and to reduce crime in the resource-poor country by an equal amount. The negative externality from increased crime can be strong enough to cancel out the gains from trade for the resource-rich country. The paper also explores the impact of aid, capital flows, and migration on crime rates, and how crime shapes the degree of specialization in each economy.

Openness, Lobbying, And Provision Of Infrastructure, Ujjayant N. Chakravorty, Joy Mazumder

Ujjayant Chakravorty

Casual empirical evidence suggests that infrastructure provision is higher in economies that are open to world trade. We develop a model of imperfect competition to show that open economies are likely to provide more infrastructure than closed economies. If infrastructure is financed by taxing a producer lobby, the open economy will overprovide while the closed economy will underinvest; an open economy approaches optimal provision when this lobby group is small in size. If financing of infrastructure is done by taxing the whole population, the closed-economy outcome may be preferred relative to that of the open economy.

Scared Of Foreigners And Their Products? Survey Evidence From France, Olivier Cadot, Akiko Suwa-Eisenmann, Thierry Verdier

Olivier Cadot

No abstract provided.