Found 280 article(s) in category 'Trade Policy'

No Time for Trade Fundamentalism

No Time for Trade Fundamentalism. Dani Rodrik, October 14, 2016, Opinion, ““One of the crucial challenges” of our era “is to maintain an open and expanding international trade system.” Unfortunately, “the liberal principles” of the world trade system “are under increasing attack.” “Protectionism has become increasingly prevalent.” “There is great danger that the system will break down … or that it will collapse in a grim replay of the 1930s.”Link

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Surveillance: Harvard’s Porter Says Economy Peaked 20 Years Ago

Surveillance: Harvard’s Porter Says Economy Peaked 20 Years Ago. Michael Porter, September 20, 2016, Audio, “Council of Foreign Relations’ Richard Haass says TPP passage is a no-brainer for an open economy. Harvard Business School’s Michael Porter says our political system is structured to divide us. CLSA’s Mike Mayo says the Wells Fargo scandal will blow over with some pain. Peterson Institute Senior Fellow David Stockton says Yellen is more in the “patient” camp than the “ready to go” camp.Link

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Globalization, Inequality and Welfare

Globalization, Inequality and Welfare. Pol Antras, September 19, 2016, Paper, “This paper studies the welfare implications of trade opening in a world in which trade raises aggregate income but also increases income inequality, and in which redistribution needs to occur via a distortionary income tax-transfer system. We provide tools to characterize and quantify the effects of trade opening on the distribution of disposable income (after redistribution). We propose two adjustments to standard measures of the welfare gains from trade: a ‘welfarist’ correction inspired by the Atkinson (1970) index of inequality, and a ‘costly-redistribution’ correction capturing the efficiency costs associated with the behavioral responses of agents to trade-induced shifts across marginal tax rates.Link

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The False Economic Promise of Global Governance

The False Economic Promise of Global Governance. Dani Rodrik, August 11, 2016, Opinion, “Global governance is the mantra of our era’s elite. The surge in cross-border flows of goods, services, capital, and information produced by technological innovation and market liberalization has made the world’s countries too interconnected, their argument goes, for any country to be able to solve its economic problems on its own. We need global rules, global agreements, global institutions.Link

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Made in the World – Global Production: Firms, Contracts, and Trade Structure

Made in the World – Global Production: Firms, Contracts, and Trade Structure. Pol Antras, 2016, Book Chapter, “Global Production is the first book to provide a fully comprehensive overview of the complicated issues facing multinational companies and their global sourcing strategies. Few international trade transactions today are based on the exchange of finished goods; rather, the majority of transactions are dominated by sales of individual components and intermediary services. Many firms organize global production around offshoring parts, components, and services to producers in distant countries, and contracts are drawn up specific to the parties and distinct legal systems involved. Pol Antràs examines the contractual frictions that arise in the international system of production and how these frictions influence the world economy.Link

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Why Voters Don’t Buy It When Economists Say Global Trade Is Good

Why Voters Don’t Buy It When Economists Say Global Trade Is Good. N. Gregory Mankiw, July 29, 2016, Opinion, “One defining characteristic of recent political debate — in the United States and abroad — is anxiety about foreigners. You see it in Donald Trump’s railing against immigrants and trade agreements. It may well be part of Hillary Clinton’s shift, under pressure from Bernie Sanders, against the Trans-Pacific Partnership, which she once embraced as “the gold standard in trade agreements to open free, transparent, fair trade.Link

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Product Mix and Firm Productivity Responses to Trade Competition

Product Mix and Firm Productivity Responses to Trade Competition. Marc Melitz, July 2016, Paper, “We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, those French firms skew their export sales towards their best performing products; and also extend the range of products sold to that market. We develop a theoretical model of multi-product firms and derive the specific demand and cost conditions needed to generate these product-mix reallocations. Our theoretical model highlights how the increased competition from demand shocks in export markets – and the induced product mix reallocations – induce productivity changes within the firm. We then empirically test for this connection between the demand shocks and the productivity of multi-product firms exporting to those destinations. We find that the effect of those demand shocks on productivity are substantial – and explain an important share of aggregate productivity fluctuations for French manufacturing.Link

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The ‘China, Inc.’ Challenge to Global Trade Governance

The ‘China, Inc.’ Challenge to Global Trade Governance. Mark Wu, May 13, 2016, Paper, “In the past decade, the World Trade Organization (WTO) has adjudicated over forty disputes involving China and other powerful economies. These cases are often trumpeted as a sign of the enduring strength of the trade regime and the efficacy of international law in managing geopolitical tensions associated with China’s rise. This Article suggests that this positive assessment obfuscates dangers lurking on the horizon. It explains why the rise of China presents a major challenge to the multilateral trade regime. At the heart of this challenge is the fact that China’s economic structure is sui generis — having evolved in a manner largely unforeseen by those negotiating WTO treaty law.Link

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