Found 303 article(s) in category 'Trade Policy'

Trade Credit and Taxes

Trade Credit and Taxes. Mihir Desai, C. Fritz Foley, May 2012, Paper. “This paper analyzes the extent to which tax differences affect the use of trade credit. U.S.-owned affiliates in low-tax countries use trade credit to lend, whereas those in high-tax countries use trade credit to borrow: 10% lower local tax rates are associated with net trade credit positions that are 1.4% higher as a fraction of sales. The use of trade credit to get capital out of low-tax, low-return environments is also illustrated by the temporary repatriation tax holiday in 2005, which was used most intensively by affiliates with positive net trade credit positions.Link

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Empirical confirmation of creative destruction from world trade data

Empirical confirmation of creative destruction from world trade data. Ricardo Hausmann, January 2014, Paper, “We show that world trade network datasets contain empirical evidence that the dynamics of innovation in the world economy follows indeed the concept of creative destruction, as proposed by J.A. Schumpeter more than half a century ago. National economies can be viewed as complex, evolving systems, driven by a stream of appearance and disappearance of goods and services. Products appear in bursts of creative cascades. We find that products systematically tend to co-appear, and that product appearances lead to massive disappearance events of existing products in the following years. The opposite – disappearances followed by periods of appearances – is not observed. This is an empirical validation of the dominance of cascading competitive replacement events on the scale of national economies, i.e. creative destruction. We find a tendency that more complex products drive out less complex ones, i.e. progress has a direction. Finally we show that the growth trajectory of a country’s product output diversity can be understood by a recently proposed evolutionary model of Schumpeterian economic dynamics.” Link

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Positive and Normative Justifications for BCA: Implications for Conduct & Interpretation

Positive and Normative Justifications for BCA: Implications for Conduct & Interpretation. James Hammitt, 2012, Paper. “What is the rationale for benefit-cost analysis (BCA)? The answer is critical for determining how BCA results should be interpreted, their implications for policy, and how BCA should be conducted. There are at least two possible bases for justifying BCA, positive and normative. The positive basis is that BCA identifies policy changes that satisfy the Kaldor-Hicks compensation test, so that those who benefit could hypothetically compensate those who are harmed…” Link Verified October 12, 2014

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Can Oil Prices Forecast Exchange Rates?

Can Oil Prices Forecast Exchange Rates? Kenneth Rogoff, 2012, Paper. “This paper investigates whether oil prices have a reliable and stable out-of-sample relationship with the Canadian/U.S dollar nominal exchange rate. Despite state-of-the-art methodologies, we find little systematic relation between oil prices and the exchange rate at the monthly and quarterly frequencies. In contrast, the main contribution is to show the existence of a very short-term relationship at the daily frequency, which is rather robust and holds no matter whether we use contemporaneous (realized) or lagged oil prices in our regression…” Link

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The network structure of economic output

The network structure of economic output. Ricardo Hausmann, October 2011, Paper. “Much of the analysis of economic growth has focused on the study of aggregate output. Here, we deviate from this tradition and look instead at the structure of output embodied in the network connecting countries to the products that they export. We characterize this network using four structural features: the negative relationship between the diversification of a country and the average ubiquity of its exports, and the non-normal distributions for product ubiquity, country diversification and product co-export…” Link

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The Globalization Paradox – Democracy and the Future of the World Economy

The Globalization Paradox – Democracy and the Future of the World Economy. Dani Rodrik, February 2011, Book. “Surveying three centuries of economic history, a Harvard professor argues for a leaner global system that puts national democracies front and center. From the mercantile monopolies of seventeenth-century empires to the modern-day authority of the WTO, IMF, and World Bank, the nations of the world have struggled to effectively harness globalization’s promise. The economic narratives that underpinned these eras—the gold standard, the Bretton Woods regime, the “Washington Consensus”—brought great success and great failure…” May require purchase or user account. Link

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The Structure of Tariffs and Long-Term Growth

The Structure of Tariffs and Long-Term Growth. Nathan Nunn, October 2010, Paper. “We show that the “skill bias” of a country’s tariff structure is positively correlated with long-term per capita GDP growth. Testing for causal mechanisms, we find evidence consistent with the existence of real benefits from tariffs focused in skill-intensive industries. However, this only accounts for a quarter of the total correlation between skill-biased tariffs and growth. Turning to alternative explanations we extend the standard Grossman-Helpman “protection-for-sale” model and show how the skill bias of tariffs can…” Link

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Country diversification, product ubiquity, and economic divergence

Country diversification, product ubiquity, and economic divergence. Ricardo Hausmann, October 2010, Paper. “Countries differ markedly in the diversification of their exports. Products differ in the number of countries that export them, which we define as their ubiquity. We document a new stylized fact in the global pattern of exports: there is a systematic relationship between the diversification of a country’s exports and the ubiquity of its products. We argue that this fact is not implied by current theories of international trade and show that it is not a trivial consequence of the heterogeneity in the level of diversification of countries or…” Link

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The US and Russia: They Don’t Need Us

The US and Russia: They Don’t Need Us. Andrei Shleifer, September 28, 2010, Paper. “Russia‟s international behavior during the last decade puzzles many American observers. As seen from Washington, the greatest current challenges—terrorism, nuclear proliferation, climate change—are global ones that threaten all states. The US, the world‟s only remaining superpower, has been trying to organize multilateral responses. Yet, on issue after issue, the Kremlin has proved singularly unhelpful. For years, Russian negotiators stalled efforts to compel Iran and North Korea to give up nuclear weapons or weapons programs…Link

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International Prices, Costs and Mark-up differences

International Prices, Costs and Mark-up differences. Gita Gopinath, August 17, 2010, Paper. “Relative cross-border retail prices, in a common currency, co-moves closely with the nominal exchange rate. Using a data set with product level retail prices and wholesale costs for a large grocery chain operating in the U.S. and Canada, we decompose this variation into relative wholesale costs and relative markup components. We find that the correlation of the nominal exchange rate with the real exchange rate is mainly driven by changes in relative wholesale costs, arguably the most tradable component of a retailer’s costs…” Link

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