Found 12 article(s) for author 'Trade'

Globalization and Inequality

Globalization and Inequality. Elhanan Helpman, 2018, Book, “Globalization is not the primary cause of rising inequality. This may come as a surprise. Inequality within nations has risen steadily in recent decades, at a time when countries around the world have eased restrictions on the movement of goods, capital, and labor. Many assume a causal relationship, which has motivated opposition to policies that promote freer trade. Elhanan Helpman shows, however, in this timely study that this assumption about the effects of globalization is more myth than fact.Link

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The Republicans’ Protectionist Pedigree

The Republicans’ Protectionist Pedigree. Jeffrey Frankel, June 13, 2018, Opinion, “In recent decades, US Republicans have tended to embrace free trade more willingly than US Democrats. But, during most of its first century, the Republican Party was protectionist in both word and deed, and it has elected the four most aggressively protectionist presidents of the last 50 years.Link

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Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings. Gita Gopinath, Jeremy Stein, May 2018, Paper, “We develop a model that shows how the currency denomination of a country’s imports influences the funding structure of its banking system, and in turn, the currency composition of its central bank’s reserve holdings. The link between the dollar’s role in bank funding and its role as a central bank reserve currency is stronger when the country’s fiscal capacity is limited, and when exchange rates are volatile. In the data, there is a pronounced cross-country relationship between the fraction of imports that are dollar invoiced, and the fraction of central-bank foreign-exchange reserves that are held in dollars.Link

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Does Trade Fuel Inequality?

Does Trade Fuel Inequality? Jeffrey Frankel, January 2, 2018, Opinion, “To explain the rise in inequality that began in the 1980s and has accelerated since the turn of the century, many have pointed out that indicators of globalization, such as the trade-to-GDP ratio, have also been rising rapidly over the same period. But does that correlation imply a causal link between trade and inequality?Link

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Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade

Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade. Richard Zeckhauser, August 17, 2017, Paper, “Donald Trump’s surprise election shifted expectations: corporate taxes would be lower and trade policies more restrictive. Relative stock prices responded appropriately. High-tax firms and those with large deferred tax liabilities (DTLs) gained; those with significant deferred tax assets from net operating loss carryforwards (NOL DTAs) lost. Domestically focused companies fared better than internationally oriented firms. A price contribution analysis shows that easily assessed consequences (DTLs, NOL DTAs, tax rates) were priced faster than more complex issues (net DTLs, foreign exposure). In sum, the analysis demonstrates that expectations about tax rates greatly impact firm values.Link

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The State of the World with Rawi Abdelal

The State of the World with Rawi Abdelal. Rawi Abdelal, February 24, 2017, Audio, “At this moment of great geopolitical change, Davis Center Director Rawi Abdelal looks at the fate of globalization through the lenses of great power transitions, national borders, and economic inequality. Rawi Abdelal is the Herbert F. Johnson Professor of International Management at Harvard Business School and the Director of Harvard’s Davis Center for Russian and Eurasian Studies. His work focuses on international political economy and the politics of globalization and political economy of Eurasia.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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Informal Tradables and the Employment Growth of Indian Manufacturing

Informal Tradables and the Employment Growth of Indian Manufacturing. William R. Kerr, March 2015, Paper. “India’s manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a “push” entrepreneurship story. The paper also finds modest connections of this growth to rising female...” Link

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Growth, Trade, and Inequality

Growth, Trade, and Inequality. Elhanan Helpman, May 4, 2014, Paper. “We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods…” May require purchase or user account. Link

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Heterogeneous Technology Diffusion and Ricardian Trade Patterns

Heterogeneous Technology Diffusion and Ricardian Trade Patterns. William R. Kerr, November 2013, Paper. “This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous technology diffusion from immigrant communities in the United States for identification…” Link

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