International Economics Commons^™

Assessing Competition Policy Performance Metrics: Concerns About Cross-Country Generalisability, Lesley Denardis, A. E. Rodriguez

Political Science & Global Affairs Faculty Publications

Recent interest in competition policy performance has typically relied on subjective performance metrics that have undergone little direct scrutiny by users. We examine the quality of the popular World Economic Forum's antitrust performance metric and assess whether it is immune from perception-bias. A bias-free metric is required to ensure cross-country consistency in its intended performance assessment.

We note various instances where the WEF's competition policy performance survey was completed but where there existed neither competition legislation nor an associated enforcement agency at the time. This seeming inconsistency is neither amenable to traditional econometric heterogeneity treatment nor instrumentable; importantly, it is …

Institutional Issues Impeding Progress Of The Free Trade Area Of The Americas Agreement (Ftaa), Sivakumar Venkataramany, Balbir B. Bhasin

WCBT Faculty Publications

For any bilateral or multilateral trade agreement to be effective, it is imperative that all participants derive maximum benefit. This paper examines the institutional issues facing the partners of the Free Trade of the Area of the Americas (FTAA), analyzes some of the current areas of conflict and suggests action to reduce tensions and promote harmony, cooperation and accommodation which is a necessity when multiple countries attempt to foster such an agreement.

Domestic Bonds, Credit Derivatives, And The Next Transformation Of Sovereign Debt, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Not long ago, financial markets in most poor and middle-income countries were shallow to nonexistent, and closed to foreigners. Governments often had to rely on risky borrowing abroad; the private sector had even fewer options. But between 1995 and 2005, domestic debt in the emerging markets grew from $1 trillion to $4 trillion. In Mexico, domestic debt went from just over 20% of the total government debt stock in 1995 to nearly 80% in 2007. Foreign and local investors are buying. Over the same period, derivative contracts to transfer emerging market credit risk surpassed the market capitalization of the benchmark …

Lessons From The Emu For Asian Regional Integration, Sarkis Joseph Khoury, Clas Wihlborg

Business Faculty Articles and Research

Critical costs and benefits of creating an EMU-like structure in Asia are identified. Analyzing the EU, we pay particular attention to two kinds of economic benefits and costs that do not appear much in conventional economic analysis. First, there are benefits and costs of harmonization in different areas including the monetary area. Second, giving up sovereignty within a policy area can provide many countries with a kind of insurance against domestic institutional, legal, and political weaknesses. Although we emphasize economic arguments it is necessary to recognize that the EU is very much a politically motivated project. Politics may well be …

The Philippine 'Diasporic Dividend': Maximizing The Development Potentials Of International Migration, Fernando T. Aldaba, Jeremaiah Opiniano

Economics Department Faculty Publications

The annual Globalization Index produced by A.T. Kearney and ForeignPolicy magazine has consistently evaluated remittances as the prime feature of the Philippines’ performance in the global economy. Index results from 2004 to 2007 reveal that “remittances and personal transfers” are the main strengths of the Philippines’ role and participation in globalization, ranking either first or second in these categories. This is a significant record considering the Philippines remains at the bottom of the standings in other categories, such as foreign direct investments and investment income (A.T. Kearney, 2004, 2005, 2006 2007). It must be noted, however, that such globalization surveys …

Cultural Advantages In China: Tale Of Six Cities, Florentin Smarandache, Fu Yuhua, Victor Christianto

Branch Mathematics and Statistics Faculty and Staff Publications

Nowadays, plenty of factories from Europe and other developed countries have been relocated to this country, considering its tremendous economic scale and rapid growth rate during the past three decades. But most of what happens inside the China nowadays is deeply hidden from the outside world (“the foreigners” as China people would call). This fact is partly because most reports on China were written by the so‐called fly‐high experts who are busy completing their reports despite a busy schedule. Very few books or reports were written by people inside, or at least “foreigners” who spent a few years in China. …

Trade Lecture, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Gallagher, K. P. (2008). Deal or no deal: Current proposals on international trade amount to deregulation in the developing world and protectionism for the rich. The Guardian.
• Barro, R. J. (1984). Changes in exchange rates and relative price levels, high inflation countries. In Macroeconomics. John Wiley and Sons.
• Machlup, F. (1950). Three concepts of the balance of payments and the so-called dollar shortage. Economic Journal, LX.
• Yeager, L. B. (1976). International monetary relations: Theory, history, and policy (2nd ed.). Harper and Row.
• Shaikh, A. (2008). Real exchange rate vs. adjusted rulcratio. …

Agglomeration Economies And Geographic Concentration Of Manufacturing In Ukraine, Volodymyr Vakhitov

University of Kentucky Doctoral Dissertations

As a post-Soviet economy, Ukraine has inherited substantial production assets and qualified personnel. However, the economy was dominated by large-scale enterprises designed for much bigger markets. After the collapse of the Soviet Union Ukrainian firms faced lack of planning, breaks in contacts with their former suppliers and customers, and distortion of prices. There was a clear need in restructuring of the entire economy. Restructuring included splitting firms into smaller parts and privatization. The first phase of transition was completed by 2000 when the output grew for the first time after a long recession in nineties, and most firms became private …

Education And Trade, Pao Li Chang, Fali Huang

Research Collection School Of Economics

This paper examines the inherent link between a countryís education system and its comparative advantage in trade. It suggests that di§erences in education systems across countries are probably a stable equilibrium result that is compatible with and reinforced by trade patterns. In equilibrium, two distinct types of countries emerge, one that exports creativity-intensive products and has an education system encouraging diversity (as illustrated by the US), and the other one that exports high-quality manufactured products and has an education system promoting homogeneity in student quality (as illustrated by Japan). Our Öndings present a novel explanation for the coexistence of low …

Discussion Of Balistreri, Hillberry, And Rutherford (2007): Structural Estimation And Solution Of International Trade Models With Heterogeneous Firms, Davin Chor

Research Collection School Of Economics

No abstract provided.

Xr Chapter Book, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Purchasing power parity adjustments to price and quantity indexes — Shaikh, A., PhD. Unpublished manuscript, dated November 9, 2008.
• Real exchange rate vs. adjusted relative real unit labor costs — Shaikh, A., PhD. Unpublished chart, undated; underlying series extend from 1960 to 2007.
• Handwritten notes on relative cost-price of capital goods between two countries — Shaikh, A., PhD. Unpublished manuscript notes, undated.
• Solving for post-trade prices of production — Shaikh, A., PhD. Unpublished manuscript notes, dated November 1, 2008.
• Handwritten notes on the real exchange rate identity — Shaikh, A., PhD. Unpublished manuscript notes, undated.
• Annex table …

Trade, World Political Economy, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• World political economy course syllabus. Shaikh, A. 2008. New School for Social Research. New York.
• Handwritten lecture notes on the development of the labor process and its implications. Shaikh, A. 1988. Department of Economics, The New School for Social Research. New York.
• Historical foundations of political economy I course syllabus. Shaikh, A. 2004. New School for Social Research. New York.
• Handwritten course outline update notes. Shaikh, A. 2004. Department of Economics, The New School for Social Research. New York.
• Structural patterns within the theory of real competition. Shaikh, A. 2001. Department of …

Notes On Xr Theory, Trade Balance, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (1996, October 12; revised 1998, November 30). XR theory & policy [Handwritten notes on exchange-rate theory and trade policy].
• Shaikh, A. (1998, November 17). RxR theory (Cambridge) [Partial handwritten lecture outline on international trade theory and empirical results].
• Shaikh, A. (1997, September 19). Alternate approach [Handwritten notes on an alternative approach to trade theory].
• Shaikh, A. (1998, October 13). SOAS: XR [Handwritten lecture notes on the failure of conventional exchange-rate theory].
• Shaikh, A. (2006, March 11). Left Forum: Future of imperialism [Handwritten talk outline on trade, neoliberalism, and imperialism].
• Nominal trade balance as percentage of …

Globalizing, Saad-Filho Book, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A., PhD., & Saad Filho, A. (2008, February 17–20). Email correspondence regarding a book on neoliberalism and globalization edited by Saad Filho and Galip Yalman [Email correspondence].

American Index Put Options Early Exercise Premium Estimation, Ako Doffou

WCBT Faculty Publications

"This paper examines empirically the value of early exercise by testing the ability of two American put valuation models to predict the early exercise premium for the S&P 100 American put options. An accuracy test and a quality test are performed on (1) the MacMillan (1986) & Barone-Adesi and Whaley (1987) model, and (2) the Carr, Jarrow and Myneni(1992) model. The test results show that early exercise premium is significant regardless of moneyness. Moreover, consistent with the theory, the value of early exercise is significantly negatively related to moneyness and interest rates and significantly positively related to time to maturity …

An Examination Of The Danish Immigrant-Trade Link, Roger White

Economics

This paper investigates the influence of immigrants on Danish imports and exports. As public and political debates concerning immigration policy are expected to continue, the findings presented here provide valuable information. Prior to 2002, Denmark’s immigration policy was among the most liberal in Europe. However, concerns regarding terrorism, social services depletion, and detrimental labour market effects, all purported to stem from immigration, led the Danish government to severely tighten its policy. In examining Denmark, we explore the immigrant-trade relationship in a small host country that is globally well-integrated, open to trade, and proximate to both major trading partners and primary …

Global Information Technology Report 2006-2007: Connecting To The Networked Economy, Priscilla Finley

Library Faculty Research

This World Economic Forum report by Dutta (INSEAD) and Mia (WEF) evaluates the penetration of information and communication technologies (ICT) in 122 economies across the globe.

Immigration Policy, Cultural Pluralism And Trade: Evidence From The White Australia Policy, Roger White, Bedassa Tadesse

Economics

Examining data for Australia and 101 trading partners that span the years 1989–2000, we find immigrants from nations afforded preference under the White Australia policy exert greater proportional influences on Australian imports from their home countries compared to immigrants from nations not privy to such preference. Immigrants from this latter group of countries influence Australian exports to their home countries proportionally more than do immigrants from the former group. We also find immigrant-trade links vary across disaggregated measures of trade. The results suggest that cultural diversity, affected here by immigration policy, is relevant to a nation’s trade patterns.

Modeling Country Risks: An Asian Perspective, Swee Liang Tan, G. K. Randolph Tan

Research Collection School Of Economics

This paper investigates the use of the Markov Regime Switching Model (MRSM) as a means to track changes in the levels of investor confidence. It also assesses the probabilities of a country switching between different regimes using the transition probability matrix. A maximum of three possible levels or regimes of risk – low, intermediate and high volatility regimes, is considered. From the smoothed probabilities calculated for different regimes, this paper makes inferences about timings of debt crisis. Comparing Brazil, Mexico, the Philippines and Indonesia in particular, we date the onset and subsequent dissolution of crisis-induced panic. We give interpretations of …

The Wto Trade Effect, Pao Li Chang, Myoung-Jae Lee

Research Collection School Of Economics

Rose (2004) showed that the WTO or its predecessor, the GATT, did not promote trade, based on conventional econometric analysis of gravity-type equations of trade. We argue that conclusions regarding the GATT/WTO trade effect based on gravity-type equations are arbitrary and subject to parametric misspecifications. We propose using nonparametric matching methods to estimate the 'treatment effect' of GATT/WTO membership, and permutation-based inferential procedures for assessing statistical significance of the estimated effects. A sensitivity analysis following Rosenbaum (2002) is then used to evaluate the sensitivity of our estimation results to potential selection biases. Contrary to Rose (2004), we find the effect …

Protection For Sale Under Monopolistic Competition: An Empirical Investigation, Pao Li Chang

Research Collection School Of Economics

This paper proposes a general empirical framework to estimate the protection-for-sale model, where the protection regime shifts according to a sector's market structure (perfectly or monop-olistically competitive). We base the protection structure on Grossman and Helpman (1994) for the subset of perfectly competitive sectors and on Chang (2005) for the subset of monop- olistically competitive sectors. The two protection regimes are simultaneously estimated with joint constraints. The results of the J-test consistently reject the homogeneous (perfect compe- tition) protection-for-sale model often adopted in previous literature and suggest a direction of improvement toward the proposed heterogeneous protection structure model.

A Welfare Analysis Of Capital Account Liberalization, Jürgen Von Hagen, Haiping Zhang

Research Collection School Of Economics

We develop a model of a small open economy with credit market frictions to analyze the consequences of capital account liberalization. We show that nancial opening facilitates the in ows of cheap foreign funds and improves production e ciency. Reforms increasing labor market exibility can further improve such e ciency gains. However, capital account liberalization also has important distributional consequences. Speci cally, it may be impossible to use public transfers to fully compensate the loss of those negatively a ected by capital account liberalization. This explains why nancial opening often meets erce opposition even though it leads to e ciency …

Price-Based Measurement Of Financial Globalization: A Cross-Country Study Of Interest Rate Parity, Hiro Ito, Menzie David Chinn

Economics Faculty Publications and Presentations

We characterize the relationship between ex post exchange rate depreciation and the interest differential for a set of countries that spans both developed and emerging market economies. The measured ex post uncovered interest differentials in terms of both levels and absolute values are then related to measures of trade and financial openness, financial development, government budget balances, institutional development, and exchange rate regimes. We find that there is wide diversity in the coefficient relating depreciations and interest differentials. Some of these differing results can be attributed to differences in inflation volatility, financial development, trade openness, capital account openness, legal development, …

Oil. China And Oil In The Asian Pacific Region: Rising Demand For Oil, Pablo Bustelo

New England Journal of Public Policy

China’s growing demand for oil is significantly changing the international geopolitics of energy, especially in the Asian Pacific region. The recent growth in oil consumption, combined with forecasts of increased oil imports (especially from the Middle East), have led to deep concern among Chinese leaders regarding their country’s energy security. They are responding in a number of different ways. In particular, they are searching for new sources of supply and seeking to control purchases and transport lanes, while boosting national production at any cost. This is already causing tension with the United States and other big oil consumers, such as …

Fueling The Superpowers: Nexus Of Foreign Policy And Energy Security, Jack Blum

New England Journal of Public Policy

This article talks about the oil history and the role government and international politics has played in it.

Oil. Seeking Peace In The Niger Delta: Oil, Natural Gas, And Other Vital Resources, Darren Kew, David L. Phillips

New England Journal of Public Policy

Nigeria’s oil-rich Niger Delta region has seen little benefit from the billions of dollars earned from oil over the last four decades, prompting a growing but disorganized insurgency across the region. Irresponsible oil companies and government officials have reduced the Niger Delta to one of the most polluted environments on earth. Corrupt local and national politicians, many of whom came to power through rigged elections, have colluded to manipulate ethnic divisions amid poverty to loot the region’s wealth. Consequently, the people of the Niger Delta have no formal political voice in Nigeria’s nascent democratic system, increasing the appeal of militias …

The Evolution And Utilization Of The Gatt/Wto Dispute Settlement Mechanism, Pao-Li Chang

Research Collection School Of Economics

This paper provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across different decades of the GATT regime. The study first suggests the role of the degree of legal controversy over a panel ruling in determining countries' incentives to block (appeal) a panel report under the GATT (WTO) regime. The study then analyzes the effects of political power on countries' incentives to use, and their interactions in using, the dispute settlement mechanism, when two-sided asymmetric information exists regarding panel …

Oil. The Geopolitics Of Oil And Iraq, Issam Al-Chalabi

New England Journal of Public Policy

The author deals only with the recent developments that will shape the destiny of Iraq and determine whether it will remain a unified country or disintegrate. He is not optimistic.

Oil. The Geopolitics Of Oil And Natural Gas, Alan Larson

New England Journal of Public Policy

Ensuring the reliability of global energy supplies will call for policies that both encourage the use of newer, cleaner energy technologies and address the political challenges posed by the world’s growing demand for oil and natural gas. U.S. policy seeks to encourage expansion and diversification of world energy supplies and to promote the transparency and democratic institutions that help energy-producing countries make the most productive use of their resources.

Fueling The Superpowers: Russia As A Player In World Energy, Theresa Sabonis-Helf

New England Journal of Public Policy

This article by Theresa Sabonis-Helf is taken from the proceedings of the EPIIC Symposium at Tufts University, February 2005