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

Correction/Update: China Did Accept the American Formulation in the Cyber Deal

Correction/Update: China Did Accept the American Formulation in the Cyber Deal. Jack Goldsmith, September 27, 2015, Opinion. “On Friday I read the transcript of the translation of President’s Xi’s remarks with President Obama to leave a possible gap in what China and the United States agreed to in the announced cyber deal on Friday. In the English transcript Xi reiterated that China opposed the theft of commercial secrets but seemed to fall short of agreeing with the American formulation of the norm as not stealing ‘with the intent of providing competitive advantages to companies or commercial sectors.’  However, the well-informed Adam Segal…Link

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Trade Liberalization and Labor Market Dynamics with Heterogeneous Firms

Trade Liberalization and Labor Market Dynamics with Heterogeneous Firms. Elhanan Helpman, August 25, 2015, Paper. “Adjustment to trade liberalization is associated with substantial reallocation of labor across firms within sectors. This salient feature of the data is well captured by models of international trade with heterogeneous firms. In this paper we reconsider the adjustment of firms and workers to changes in trade costs, explicitly accounting for labor market frictions and the entire adjustment path from an initial to a final steady-state. The transitional dynamics exhibit rich patterns, varying across firms that differ in productivity levels…” Link

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The International Price System

The International Price System. Gita Gopinath, August 20, 2015, Paper. “I define and provide empirical evidence for an “International Price System” in global trade employing data for thirty-five developed and developing countries. This price system is characterized by two features. First, the overwhelming share of world trade is invoiced in very few currencies, with the dollar the dominant currency. Second, international prices, in their currency of invoicing, are not very sensitive to exchange rates at horizons of up to two years. In this system, a good proxy for a country’s inflation sensitivity to exchange rate fluctuations is the fraction of its imports invoiced in a foreign currency…Link

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Understanding Agricultural Price Range Systems as Trade Restraints: Peru – Agricultural Products

Understanding Agricultural Price Range Systems as Trade Restraints: Peru – Agricultural Products. Mark Wu, August 18, 2015, Paper. “An agricultural price range system (PRS) aims to stabilize local prices in an open economy via the use of import duties that vary with international prices. The policy is inherently distortionary and welfare-reducing for a small open economy, at least according to the canonical economic model. We offer an explanation for why a government concerned with national welfare may nevertheless implement such a policy when faced with risk aversion and imperfect insurance markets…Link

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Poultry in Motion: A Study of International Trade Finance Practices

Poultry in Motion: A Study of International Trade Finance Practices. Pol Antras, C. Fritz Foley, August 2015, Paper, “This paper theoretically and empirically analyzes the financing terms that support international trade. The choice of trade finance terms balances the risk that an importer defaults on an exporter and the possibility that an exporter does not deliver goods as specified. Analysis of transaction-level data from a US exporter reveals that importers located in countries with weak enforcement of contracts typically finance transactions, but these firms are able to overcome the constraints of such environments if they can establish a relationship with the exporter. Furthermore, the manner in which trade is financed shapes the impact of crises.”  Link

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Public Opposition to Foreign Acquisitions of Domestic Companies: Evidence from the United States and China

Public Opposition to Foreign Acquisitions of Domestic Companies: Evidence from the United States and China, Dustin Tingley, July 31, 2015, Paper, “The flow of capital across borders is one of the core subjects of International Political Economy research, but there has been little research into the determinants of support for and opposition to inward foreign direct investment (FDI) flows. This is an important oversight because cross border investments are a growing area of international economic activity, and increasingly the subject of important international negotiations. In order to study this topic, we embedded a conjoint experiment in a survey that we fielded in the United States and China.Link

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Macroeconomic Rebalancing in China and the G20

Macroeconomic Rebalancing in China and the G20. Jeffry Frieden, July 17, 2016, Paper. “The principal challenge facing the world economy is the risk of recurrent financial crises. Global macroeconomic imbalances create the conditions for boom-and-bust cycles that are extremely costly for the countries that experience them, and that can affect other nations and the entire world economy as well. The G20 recognizes the importance of these trends, and has committed itself to cooperative measures to reduce imbalances. However, progress has been limited and halting. There are major political obstacles to global macroeconomic policy cooperation, both within countries and among countries. China’s attempts to rebalance its economy are crucial to broader international financial stability. Its G20 presidency gives China the opportunity to demonstrate that it is willing and able to advance its cooperation with economic partners, and to help lead the rest of the world in this direction.Link

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Pyramid Capitalism

Pyramid Capitalism. Ishac Diwan, July 2015, Paper, “This paper uses an original database of 469 politically connected firms under the Mubarak regime in Egypt to explore the economic effects of close state-business relations. Previous research has shown that political connections are lucrative. The paper addresses several questions raised by this research. Do connected firms receive favorable regulatory treatment? They do: connected firms are more likely to benefit from trade protection, energy subsidies, access to land, and regulatory enforcement. Does regulatory capture account for the high value of connected firms? In the sample, regulatory capture as revealed by energy subsidies and trade protection account for the higher profits of politically connected firms. Do politically connected firms hurt aggregate growth?Link

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Rescuing the free-trade deals

Rescuing the free-trade deals. Lawrence Summers, June 14, 2015, Opinion. “The Senate’s rejection of President Woodrow Wilson’s commitment of the United States to the League of Nations was the greatest setback to U.S. global leadership of the last century. While not remotely as consequential, the votes in the House last week that, unless revisited, would doom the Trans-Pacific Partnership send the same kind of negative signal regarding the willingness of the United States to take responsibility for the global system at a critical time. The repudiation of the TPP would neuter the U.S. presidency for the next 19 months…Link

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The Chimera of Currency Manipulation

The Chimera of Currency Manipulation. Jeffrey Frankel, June 10, 2015, Opinion. “US President Barack Obama is still pressing to obtain Trade Promotion Authority and use it to conclude negotiations for the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) with the European Union. But many in the US Congress insist that provisions must be added to the agreements to prevent currency manipulation. Let’s be clear: If the US were to insist that ‘strong and enforceable currency disciplines’ be part of trade agreements, no deals would be concluded. Other countries would refuse – and they would be right…Link

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