Found 425 article(s) in category 'Trade Policy'

RELATIONSHIP-SPECIFICITY, INCOMPLETE CONTRACTS, AND THE PATTERN OF TRADE

RELATIONSHIP-SPECIFICITY, INCOMPLETE CONTRACTS, AND THE PATTERN OF TRADE. Nathan Nunn, May 2007, Paper. “Is a country’s ability to enforce contracts an important determinant of comparative advantage? To answer this question, I construct a variable that measures, for each good, the proportion of its intermediate inputs that require relationship-specific investments. Combining this measure with data on trade flows and judicial quality, I find that countries with good contract enforcement specialize in the production of goods for which relationship-specific investments are most important…” Link

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The Structure of the Product Space and the Evolution of Comparative Advantage

The Structure of the Product Space and the Evolution of Comparative Advantage, Ricardo Hausmann, April 2007, Paper, This paper establishes a robust stylized fact: changes in the revealed comparative advantage of nations are governed by the pattern of relatedness of products at the global level. As countries change their export mix, there is a strong tendency to move towards related goods rather than to goods that are farther away. The pattern of relatedness of products is only very partially explained by similarity in broad factor or technological intensities, suggesting that the relevant determinants are much more product-specific. Moreover, the pattern of relatedness of products exhibits very strong heterogeneity: there are parts of this ‘product space’ that are dense while others are sparse. Link

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The Product Space and its Consequences for Economic Growth

The Product Space and its Consequences for Economic Growth. Ricardo Hausmann, March 5, 2007, Paper. “In this paper, we test the assumption underlying the foundational models of trade that there always exist products through which countries can express their endowments and technology. We map the `space’ of products in the world, and find it to be quite heterogeneous, with a central core and outer periphery. Moreover, we show that the way countries develop comparative advantage is far from random, and that the empirical rules observed herein predict, together with the structure of the product space, explain…” Link

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Context-Conditional Political Business Cycles

Context-Conditional Political Business Cycles. James E. Alt, 2007, Book Chapter in The Oxford Handbook of Comparative Politics. “Offers an innovative structure that responds to the very latest scholarship in comparative politics, with sections covering: theory and methodology, states and the state formation, political consent, political regimes and transitions, political instability, political conflict, mass political mobilization, processing political demands, and governance in comparative perspective.” Link

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Strategic Trade in Pollution Permits

Strategic Trade in Pollution Permits. Ricardo Hausmann, 2007, Paper. “Current account statistics may not be good indicators of the evolution of a country’s net foreign assets and of its external position’s sustainability. The value of existing assets may vary independently of current account flows, so-called ‘return privileges’ may allow some countries to obtain abnormal returns, and mismeasurement of FDI, unreported trade of insurance or liquidity services, and debt relief may also play a role. We analyse the relevant evidence in a large set of countries and periods, and examine measures of net foreign assets obtained by capitalizing the net investment income and then estimating the current account from the changes in this stock of foreign assets. We call dark matter the difference between our measure of net foreign assets and that measured by official statistics. We find it to be important for many countries, analyse its relationship with theoretically relevant factors, and note that the resulting perspective tends to make global net asset positions appear relatively stable.Link

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