International Economics Commons^™

The Arab World Needs Free Markets As Much As Democracy, Nathan B. Oman

Nathan B. Oman

No abstract provided.

In Israeli-Palestinian Conflict, Could Commerce Foster Trust, Tolerance, And Peace?, Nathan B. Oman

Nathan B. Oman

No abstract provided.

Local Environmental Quality And Inter-Jurisdictional Spillovers, John W. Hatfield, Katrina Kosec

Katrina Kosec

Winning The War: Sanction Effectiveness And Consequences, Kevin Allen

Kevin Allen

Distance-Varying Assortativity And Clustering Of The International Trade Network, Angela Abbate, Luca De Benedictis, Giorgio Fagiolo, Lucia Tajoli

Luca De Benedictis

The Decline Of U.S. Manufacturing Employment - Automation And Trade, Susan N. Houseman

Susan N. Houseman

No abstract provided.

International Migration In Macro-Perspective: Bringing Power Back In, Marcel Paret, Shannon Gleeson

Shannon Gleeson

This paper challenges the inward looking perspective of recent immigration research by situating migration to the United States within a global and historical context. This macro-stratification perspective breaks out of the confines of national contexts to explore how international migration is shaped by global power divides. We argue that in order to fully understand international migration, it is necessary to account for both the emergence of global power structures and the historical domination of Europe. We develop our argument by first outlining the significance of global power divides, with a particular focus on the United States. We then demonstrate how …

International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez

Leonardo Martinez

No abstract provided.

Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao

Warren Coats

From the 1970s, the global currency system has two features: the use of one or a few sovereign currencies as the global reserve asset and the floating exchange rate regime between major currencies.This paper points out that the costs of the dollar’s use as an international reserve currency exceed the benefits for both the US and the rest of the world. These costs include the exporting of American manufacturing as a byproduct of its current account deficit needed to supply its currency to the rest of the world. In addition to the detriment to trade from unpredictable exchange rate fluctuations, …

The Mexico -Us Border Region And The New Challenges Of Nafta, Maria Del Rosio Barajas-Escamilla Phd, Maritza Sotomayor

Maritza Sotomayor

No abstract provided.

Implementing Propensity Score Matching With Network Data: The Effect Of Gatt On Bilateral Trade, Luca De Benedictis, Bruno Arpino, Alessandra Mattei

Luca De Benedictis

Anatomy Of Foreign Aid To Ethiopia- 1960-2014.Pdf, Adugna Lemi

Adugna Lemi

No abstract provided.

Non-Defaultable Debt And Sovereign Risk, Juan Carlos Hatchondo, Leonardo Martinez, Yasin Kursat Onder

Leonardo Martinez

No abstract provided.

Determinants Of Homeownership Among Immigrants: Changesduring The Great Recession And Beyond, Kusum Mundra, Ruth Uwaifo Oyelere

Ruth Uwaifo Oyelere

No abstract provided.

Income-Generating Functions In A Low Income Country: Colombia, Gary S. Fields, T. Paul Schultz

Gary S Fields

Income generating functions are statistical tools used to explain income inequality and other economic outcomes and behavior. These functions are often associated with a strict human capital framework, but they need not be. Instead, they may be viewed as a reduced form equation summarizing the relationship between income and various personal and locational characteristics. Following this latter interpretation, we develop the regression and analysis of variance approaches to income generating functions and estimate them empirically using micro-economic data from one low income country, Colombia. Proceeding to increasingly parsimonious specifications of income generating functions, insights are gained into the structure of …

Employment, Income Distribution And Economic Growth In Seven Small Open Economies, Gary S. Fields

Gary S Fields

[Excerpt] Resurgent interest has been manifested among development economists in trickle-down, i.e., the view that the more rapid the rate of economic growth, the more rapid the improvement in employment and income distribution. Throughout this paper, the term ‘income distribution’ will refer to the location and dispersion of the pattern of incomes, i.e., to ‘absolute incomes and poverty’ and to ‘relative income inequality’. Empirical evidence supports trickle-down in some cases, but the evidence is contrary to trickle-down in others.

These data indicate:

1. A high rate of economic growth is neither necessary nor sufficient for inequality to decline.
2. A high rate …

Import Competition In The High-Wage Sector And Trade Policy Effects On Labor, Gary S. Fields, Earl L. Grinols

Gary S Fields

This article evaluates the employment and welfare effects of increased trade competition and protection in economies with wage dualism, unemployment, and on-the-job search. A micro-based measure of economy welfare distinguishes between workers and other sectors of the economy is developed to deal with labor market imperfections and distributional issues. For example, increased competition in high-wage sector goods reduces high-wage employment, but may or may not increase overall unemployment. Policy may be chosen to mitigate loss in worker earnings that are partly or wholly offset by gains to consumers of the importable.

Finance And Export Survival: The Case Of Mena Region And Sub-Saharan Africa, Melise Jaud, Madina Kukenova, Martin Strieborny

Martin Strieborny

The paper looks at unique firm-product-destination export data collected by custom authoritiesin four countries from the Middle East and North Africa (MENA) - Jordan,Kuwait, Morocco, Yemen as well as in six countries of Sub-Saharan Africa(SSA) - Ghana, Mali, Malawi, Senegal, Tanzania, Uganda. We use these data toexamine to impact of financial development on the long-term success ofexports from developing countries. We find that those agricultural exportsthat face particularly costly implementation of Sanitary and PhytosanitaryStandards (SPS) are also the ones that disproportionately benefit from ahigher level of domestic financial development. This result confirms theprevious findings from a smaller SSA sample (Jaudetal. …

Finance, Comparative Advantage, And Resource Allocation, Melise Jaud, Madina Kukenova, Martin Strieborny

Martin Strieborny

Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the USA. We show that exported products exit the US market sooner if they stand far away from the exporting country's comparative advantage. This pattern is stronger when the exporting country has a well-developed banking system, but it is unaffected by the depth of stock markets. These results are in accordance with theories stressing the disciplining role of debt.

The Integrity Of Financial Analysts: Evidence From Asymmetric Responses To Earnings Surprises, Rui Lu, Wenxuan Hou, Henry Oppenheimer, Ting Zhang

Ting Zhang

This paper investigates the integrity of financial analysts by examining their recommendation responses to large quarterly earnings surprises. Although there is no significant difference in recommendation changes between affiliated and unaffiliated analysts in response to positive earnings surprises, affiliated analysts are more reluctant than unaffiliated analysts to downgrade stock recommendations in response to negative earnings surprises. The evidence implies that conflicts of interest undermine the integrity of financial analysts. We further examine the effects of reputation concern and the Global Research Analyst Settlement as informal and formal mechanisms, on restoring analysts’ integrity. The results show that the positive bias in …

An Analysis Of Risk-Taking Behavior For Public Defined Benefit Pension Plans, Nancy Mohan, Ting Zhang

Ting Zhang

This paper presents the first comprehensive study on the determinants of public pension fund investment risk and reports several new important findings. Unlike private pension plans, public funds undertake more risk if they are underfunded and have lower investment returns in the previous years, consistent with the risk transfer hypothesis. Furthermore, pension funds in states facing fiscal constraints allocate more assets to equity and have higher betas. There also appears to be a herding effect in that CalPERS equity allocation or beta is mimicked by other pension funds. Finally, our results suggest that government accounting standards strongly affect pension fund …

An Analysis Of Risk-Taking Behavior For Public Defined Benefit Pension Plans, Nancy Mohan, Ting Zhang

Nancy Mohan

This paper presents the first comprehensive study on the determinants of public pension fund investment risk and reports several new important findings. Unlike private pension plans, public funds undertake more risk if they are underfunded and have lower investment returns in the previous years, consistent with the risk transfer hypothesis. Furthermore, pension funds in states facing fiscal constraints allocate more assets to equity and have higher betas. There also appears to be a herding effect in that CalPERS equity allocation or beta is mimicked by other pension funds. Finally, our results suggest that government accounting standards strongly affect pension fund …

Earnings Mobility In Times Of Growth And Decline: Argentina From 1996 To 2003, Gary S. Fields, María Laura Sánchez Puerta

Gary S Fields

In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one-year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. Various considerations led us to expect that mobility would be divergent—that is, that the individuals who started with the highest initial earnings would enjoy the largest earnings gains in pesos. Contrary to expectations and for a wide range of specifications, mobility is found to be mostly convergent, sometimes neutral, …

Segmented Labour Markets In South Africa, Gary S. Fields

Gary S Fields

[Excerpt] The textbook labour market model aggregates all workers, all employers and all sectors of the economy into a single labour market. In this single labour market, workers supply labour, employers demand labour and the rate of pay (termed wage for shorthand) is determined by the intersection of supply and demand. Segmented labour market analysis proceeds from a different starting point. Workers, employers and sectors are not aggregated together. Rather, two or more labour market segments are identified, the groupings reflecting fundamental differences in how labour supply, labour demand and wage-determination mechanisms operate in different segments. For example, in the …

Self-Employment And Poverty In Developing Countries, Gary S. Fields

Gary S Fields

A key way for the world’s poor—nearly half of humanity—to escape poverty is to earn more for their labor. Most of the world’s poor people are self-employed, but because there are few opportunities in most developing countries for them to earn enough to escape poverty, they are working hard but working poor. Two key policy planks in the fight against poverty should be: raising the returns to self-employment and creating more opportunities to move from self-employment into higher paying wage employment.

Challenges And Policy Lessons For The Growth-Employment-Poverty Nexus In Developing Countries, Gary S. Fields

Gary S Fields

Productivity growth and structural change are generally considered to be important determinants of economic growth. However recent research revealed that they do not necessarily lead to higher growth and employment rates. Recent studies, drawing on data from developing countries, showed that only the “right” kind of productivity growth resulted in higher employment rates. Enterprises in Africa and Latin America caught up in matters of technology; however, this process resulted in a substitution of employment by technology. The same is true for structural change; only the “right” kind of structural change caused more growth and employment. Whereas in Asia, labour shifted …

Are African Workers Getting Ahead In The New South Africa? Evidence From Kwazulu-Natal, 1993-1998, Paul L. Cichello, Gary S. Fields, Murray Leibbrandt

Gary S Fields

[Excerpt] In this paper, we use the KIDS panel data to answer three questions about the ‘progress’ of African workers in this one province in post-apartheid South Africa. First, how have African workers progressed as a group? Secondly, which African workers have progressed the most, and by how much have they progressed? Thirdly, to what extent is the progress made by workers driven by transitions between employment and unemployment, or between informal and formal sector employment? We reach the following major findings. First, African workers in KwaZulu-Natal had quite diverse experiences, but experienced positive progress on average. Second, those who …

Aid, Growth And Jobs, Gary S. Fields

Gary S Fields

Various development objectives are worthy, but one objective merits special attention: reducing the scourge of absolute economic misery in the world. This study focuses on an important but relatively underemphasized approach to poverty reduction: helping the poor earn more in the labour market for the work they do, so that they can buy the goods and services they need to move up out of poverty. The core of the study is divided into three sections: defining the global poverty challenge and the world’s employment problem, presenting policy options for improving employment outcomes for the poor, and suggesting ways of choosing …

Earnings Mobility, Inequality, And Economic Growth In Argentina, Mexico, And Venezuela, Gary S. Fields, Robert Duval-Hernandez, Samuel Freije, Maria Laura Sanchez Puerta

Gary S Fields

This paper examines changes in individual earnings during positive and negative growth periods in three Latin American economies: Argentina, Mexico, and Venezuela. We ask two major questions. First, do panel income changes favor the income recipients who started at the top of the income distribution (“divergent mobility”) or those who started at the bottom (“convergent mobility”)? And second, are the groups that are found to gain the most when the economy is growing those that are found to lose the most when the economy is contracting (“symmetry of mobility”) or is the pattern asymmetric in the sense that the same …

Aggression In Mixed Martial Arts: An Analysis Of The Likelihood Of Winning A Decision, Trevor Collier, Andrew Johnson, John Ruggiero

Trevor Collier

Within the last decade, mixed martial arts has become one of the most popular sports worldwide. The Ultimate Fighting Championship (UFC) is the largest and most successful organization within the industry. In the USA, however, the sport is not sanctioned in all states because some politicians view the sport as too violent. The sport consists of many fighting forms and, unlike boxing, winning a decision requires judging in multiple facets including wrestling, boxing, kickboxing, and jiu-jitsu. In this study, we estimate the likelihood of winning a decision in the UFC. Using data on individual fights, we estimate the probability of …