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Pass-through to export prices: Evidence from Australia† World Economy (IF 2.0) Pub Date : 2024-02-15 Prasad Sankar Bhattacharya
Australia is a leading exporter of primary and agricultural commodities like iron ore, coal, wool and beef. Industry stakeholders point out that exchange rate fluctuations remain a key determinant of export revenue. This article investigates the exchange rate pass-through to export prices using the recently proposed impulse responses by the local projections technique. Employing export prices in all
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Impact of terror on international trade in financial services: Does the development of financial institutions matter? World Economy (IF 2.0) Pub Date : 2024-01-04 Cong S. Pham, Hoa Nguyen
We examine the impact of terror on international trade in financial services and the role of financial institutions in alleviating this impact. Using a sample of 67 countries from 2000 to 2020, we find that a 10% increase in the number of terrorist incidents in the importer and/or the exporter results, on average, in a 1.77–2.05% annual reduction in their bilateral financial service trade which is
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Monetary union in Southeast Asia: An assessment of the optimum currency area theory* World Economy (IF 2.0) Pub Date : 2023-12-29 Kurt A. Hafner
This paper applies optimum currency area (OCA) theory to Southeast Asia to assess the potential for a monetary union in that region. We construct a panel of 10 Southeast Asian countries over the period 1990–2018 and apply the dynamic OLS estimator to quantify the costs and benefits of a potential OCA. A possible monetary union in Southeast Asia is vulnerable to asymmetric shocks, although the degree
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The effect of obtaining EU citizenship in former transition economies on remittance flows World Economy (IF 2.0) Pub Date : 2023-12-26 Luca Pieroni, Melcior Rossello Roig
We estimate the effect of the granting of European Union (EU) citizenship rights on the flow of remittances from Italy. We use the EU enlargements of 2007 and 2013 as natural experiments. The results show a negative impact on remittance flows. The effect of the 2007 EU enlargement shows how Romanian and Bulgarian citizens reduced the average annual amount of remittances by 1400 Euros per year per migrant
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Using synthetic control method to estimate the growth effects of economic liberalisation: Evidence from transition economies World Economy (IF 2.0) Pub Date : 2023-12-26 Jaroslaw Kantorowicz, Rok Spruk
We examine the contribution of institutional reforms to economic growth. To this end, we distinguish between several classes of institutional reform in the approach to economic liberalisation. Based on a sample of 24 current and former transition economies for the period 1980–2016, we estimate the counterfactual scenarios related to each distinctive institutional approach to the economic liberalisation
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Fiscal federalism and foreign direct investment – An empirical analysis World Economy (IF 2.0) Pub Date : 2023-12-23 Lars P. Feld, Ekkehard A. Köhler, Leonardo Palhuca, Christoph A. Schaltegger
Previous empirical studies suggest that fiscal decentralisation, measured by the number of government layers, is associated with less foreign direct investment (FDI). With an improved dataset on the tax autonomy of sub-federal government tiers, we present evidence that fiscal decentralisation (de facto) does not reduce FDI. If local governments can set their tax rates and bases autonomously, they attract
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Estimating the landlocked penalty for international trade World Economy (IF 2.0) Pub Date : 2023-12-01 Pratistha Gyawali
This paper studies the effect of being landlocked on international trade flows in the manufacturing sector. The study overcomes the empirical challenge of using a country-specific variable ‘landlocked’, within a structural gravity framework in the presence of importer and exporter fixed effects. Results show that the impact of being landlocked for manufactured goods trade is highly negative and statistically
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Globalisation and carbon dioxide emissions inequality in OECD countries World Economy (IF 2.0) Pub Date : 2023-11-30 Jianchun Fang, Giray Gozgor, Mantu Kumar Mahalik, Gupteswar Patel, Xueyin Song
Economic growth has been crucial in contributing to carbon dioxide (CO2) emissions from the Industrial Revolution, and it affects CO2 emissions heterogeneously with different income levels. Therefore, studying the role of economic growth on inequality in carbon emissions is imperative. This paper analyses the determinants of CO2 emissions inequality in the panel dataset of 37 Organisation for Economic
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How EU membership affects foreign direct investment: Differences between EU15 and CEE countries World Economy (IF 2.0) Pub Date : 2023-11-28 Bettina Meinhart
This article examines the impact of membership in the European Union (EU) on foreign direct investments (FDI). In contrast to previous studies, the overall effect of EU membership is disaggregated by countries that joined the EU before 2004 (EU15) and those that joined after 2004 [Central and Eastern European (CEE)]. This disaggregation is motivated by differences between the two groups in terms of
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Anti-dumping policy in Japan: From passive to active and self-disciplined anti-dumping actions World Economy (IF 2.0) Pub Date : 2023-11-27 Chisato Shibayama
While Japan's anti-dumping (AD) legislation has a long history, the use of AD policies in Japan was limited until the 2010s. This study analyses the evolution of Japan's AD policy over more than 100 years and its background across four periods: (1) from the AD Law's enactment in 1920 to the establishment of the General Agreement on Tariffs and Trade (GATT); (2) from the establishment of GATT to 1990
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What's the influence of input's variation? Estimating the input elasticity in the global value chain World Economy (IF 2.0) Pub Date : 2023-11-27 Xian-nan Cheng, Shuhui Wen, Nuobing Fan, Yuwei Liu, Yujing Wang
This article presents a comprehensive framework for assessing the influence of input variation during the period of stagnant expansion of the global value chain (GVC) by incorporating input elasticity. Each import sector is treated as a complete input demand system with a stochastic preference for input in the framework of Ghosh Inverse, and the input elasticity is employed to quantify the input variation
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EU agriculture under an import stop for food and feed World Economy (IF 2.0) Pub Date : 2023-11-27 Ferike Thom, Alexander Gocht, Harald Grethe
Recent disruptions in international trade have had significant impacts on consumers and producers worldwide and stemmed from various reasons. This study aims to identify key vulnerabilities in EU agriculture by examining an import stop on food and feed products. By conducting this stylised simulation using a global PE model (CAPRI), the authors analyse the adjustment mechanisms within the sector, investigate
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African economic integration and trade World Economy (IF 2.0) Pub Date : 2023-11-27 Marie M. Stack, Emmanuel B. Amissah, Martin Bliss
Economic integration ranks as one of the leading development strategies in Africa. The newly created African Continental Free Trade Area (AfCFTA) and the proposed Tripartite Free Trade Area (TFTA) linking three major regional blocks offer a new impetus to studying trade policy effects. Using a structural gravity model of bilateral manufacturing trade between the African Union member states and all
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Labour-saving automation: A direct measure of occupational exposure World Economy (IF 2.0) Pub Date : 2023-11-24 Fabio Montobbio, Jacopo Staccioli, Maria Enrica Virgillito, Marco Vivarelli
This article represents one of the first attempts at building a direct measure of occupational exposure to robotic labour-saving technologies. After identifying robotic and labour-saving robotic patents, the underlying 4-digit CPC (Cooperative Patent Classification) code definitions, together with O*NET (Occupational Information Network) task descriptions, are employed to detect functions and operations
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Uncertainty of supply chains: Risk and ambiguity World Economy (IF 2.0) Pub Date : 2023-11-20 d'Artis Kancs
Motivated by the recently experienced systemic shocks (the COVID-19 pandemic and the full-fledged Russia's war of aggression against Ukraine)—that have created new forms of uncertainties to our supplies—this paper explores the supply chain robustness under risk aversion and ambiguity aversion. We aim to understand the potential consequences of deeply uncertain systemic events on the supply chain resilience
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How bilateral foreign direct investment influences environmental convergence World Economy (IF 2.0) Pub Date : 2023-11-06 Vignawou Lucien Ahouangbe, Camelia Turcu
This paper analyzes environmental convergence and its determinants. We construct our analysis in a bilateral setting and hypothesize that, through foreign direct investment (FDI), one or more investor countries could impact the environmental performance of their hosts, leading thus to a possible environmental convergence between home and host economies. To do this, we construct an original database
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Services' trade in Africa: Structure and growth World Economy (IF 2.0) Pub Date : 2023-11-03 Andrea Ariu, Laura Ogliari
This paper shows that trade in services is still at its infancy in Africa. Its growth started later than for other developed and developing economies and, so far, it involves mostly low-skilled services. Disentangling the different sources of trade growth, we find that demand and supply determinants have been relatively stable during the period 2002–2016, while service diversification and trade policy
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An analysis of value chain trade in Africa World Economy (IF 2.0) Pub Date : 2023-10-31 Angella Faith Montfaucon, Natnael Simachew Nigatu, Socrates Kraido Majune
Africa's participation in global value chains (GVCs) is not well documented compared with the developed world. Clearly understanding GVC participation levels is critical to enable evidence-based policy. This paper uses two sources of data to assess Africa's GVC participation and empirically estimates determinants of GVC participation across the data sets. The analysis relies on databases based on customs-level
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Does Belt and Road Initiative attract Cross-Border M&As from other countries? World Economy (IF 2.0) Pub Date : 2023-10-26 Chaoqun Zhan, Hanxi Wang, Chenxue Hou
This article examines how the Belt and Road Initiative (BRI) affects Cross-Border M&As (CMAs) inflows to countries along the Belt and Road routes (BRI countries) from non-BRI countries. We conduct a difference-in-differences estimation with a control group constructed through propensity score matching. We find that the BRI significantly reduces CMAs from non-BRI countries to BRI countries. The results
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Forecasting stability and growth pact compliance using machine learning World Economy (IF 2.0) Pub Date : 2023-10-26 Kéa Baret, Amélie Barbier-Gauchard, Théophilos Papadimitriou
The 2011 reform of the Stability and Growth Pact (1996) strengthened the European Commission's monitoring of EU member states' public finance. Failure to comply with the 3% limit on public deficit triggers an audit. In this paper, we present a machine learning based forecasting model for compliance with the 3% limit. We use data from 2006 to 2018 (a turbulent period including the Global Financial Crisis
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The impact of interstate soft conflicts on bilateral trade flows using structural gravity model World Economy (IF 2.0) Pub Date : 2023-10-26 Tamar Taralashvili
This paper contributes to the literature on the economic impact of interstate conflicts by focusing on empirical analysis of the impact of interstate soft conflicts on bilateral trade. Interstate soft conflicts arising from the failure of diplomacy when a military operation seems too radical may act as a policy tool and have a negative impact on bilateral relations. The empirical approach is based
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A positive effect of uncertainty shocks on the economy: Is the chase over? World Economy (IF 2.0) Pub Date : 2023-10-19 Nicolas Himounet, Francisco Serranito, Julien Vauday
How large and persistent are the effects of uncertainty shocks on the economy? Are the effects of macroeconomic uncertainty shocks different from those of financial uncertainty shocks? In the empirical literature, there was a consensus on an estimated negative impact of uncertainty on macroeconomic variables. Recently, some studies identifying shocks with a novel methodology, namely the events constraint
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Regulatory convergence within technical barriers to trade World Economy (IF 2.0) Pub Date : 2023-10-18 Mahdi Ghodsi
This paper analyses how regulatory convergence in different categories of technical barriers to trade (TBTs) imposed on imports of goods in information and communications technology (ICT) globally affected the values, volumes and unit values of imported goods during the period 1996–2019. Keywords cited in TBTs that are notified to the World Trade Organisation (WTO) give an indication of the regulatory
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Introduction to INFER special issue on “new aspects of economic and financial integration” World Economy (IF 2.0) Pub Date : 2023-10-18 António Afonso, Cristina Badarau, Camélia Turcu
This Special Issue (SI) gathers 13 papers presented at the 23rd INFER Annual Conference which took place in Lisbon, 8–10 September 2021, at ISEG – Lisbon School of Economics and Management. The conference was organised by INFER (International Network for Economic Research), UECE (Research Unit on Complexity and Economics), and REM (Research in Economics and Mathematics). The papers of the SI focus
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Deep trade agreements, production position distance and bilateral global value chain participation World Economy (IF 2.0) Pub Date : 2023-10-11 Zhaobin Fan, Sajid Anwar, Ying Zhou
Owing to globalisation-induced fragmentation of production across regions and reorganisation of global value chains (GVCs), more attention is being paid to the impact of deep preferential trade agreements (PTAs) on GVC participation. We examine how the promotional effect of deep trade agreements on GVC participation changes with GVC production position distance between member countries. We argue that
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Product mix adjustments and import competition in Vietnam's manufacturing industries World Economy (IF 2.0) Pub Date : 2023-10-09 Tien Dzung Nguyen, The Kien Nguyen, Xuan Nam Vu
In this article, we make use of Vietnam's annual enterprise surveys to investigate the product selection and product mix responses to import competition in manufacturing firms. We estimate the effect of imports from Vietnam's free trade agreement partners on firms' product scope and sales concentration, controlling for firms and industry characteristics and the conditions in export markets. The empirical
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The impact of foreign demand shocks on organisational hierarchies World Economy (IF 2.0) Pub Date : 2023-10-08 Santiago Bonilla, Sašo Polanec
According to the theory of knowledge-based hierarchies, a sufficiently large change in firm size should induce firms to change their organisational structure by adding or dropping organisational layers. In open economies, one of the main determinants of firm size is the volume of foreign sales, and its changes may also trigger reorganisations. However, changes in foreign sales are not only driven by
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Oman's trade achievements with Singapore given the Gulf–Singapore Free Trade Agreement World Economy (IF 2.0) Pub Date : 2023-10-05 Azmat Gani
Oman's trade performance achievements with Singapore are assessed within the Gulf–Singapore Free Trade Agreement (GSFTA) framework. Since coming into force in January 2015, Oman's total export value to Singapore has plunged significantly. The number of imported products from Singapore remained significantly higher than the number of Oman's exports to Singapore, confirming that Omani exports have a
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African firms in global value chains: What can we learn from firm-level data in Cameroon and Côte d'Ivoire? World Economy (IF 2.0) Pub Date : 2023-10-03 Romaric Coulibaly, Heddie Moreno, Akiko Suwa-Eisenmann, Nouhoum Traore
The paper offers a detailed review of African firms' participation to international value chains and provides new quantitative insights on two countries, Cameroon and Ivory Coast, based on a unique dataset, which was obtained by merging firm census and detailed customs transactions over time. “GVC firms” are defined as firms that both export and import, with positive production and labour. The paper
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The landscape of CO2 emissions across Africa: A comparative perspective World Economy (IF 2.0) Pub Date : 2023-09-27 Jaime de Melo, Jean-Marc Solleder
This paper provides evidence on carbon dioxide (CO2) emissions for 51 African and 132 other countries in 163 sectors over the period 1995–2015. The resulting landscape is summarised in four patterns. Patterns identified for Africa differ from those identified for other regions but are closely related to a synthetic aggregate comparator based on key country characteristics. (1) All regions have reduced
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The economic impact of broadband access for small firms World Economy (IF 2.0) Pub Date : 2023-09-26 Pantelis Koutroumpis, Danai Sarri
This paper investigates the economic effects of improved broadband access at the firm level. Using a detailed micro data set from 2002 to 2017, we cover almost 20,000 small, medium and large Greek firms and test the relationship between their economic performance with the availability and use of broadband services at the postcode level. We trace the effect of increased access and speeds across industrial
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Service offshoring and its impacts on wages: An occupation-oriented analysis of Germany World Economy (IF 2.0) Pub Date : 2023-09-24 Michael Frenkel, Ngoc Tuyet Ngo
International trade in services has increased significantly in recent decades, mainly due to innovations in information and communication technology. This development has also increased the importance of service offshoring, as companies spread their production processes across several countries. This paper examines the intensity of offshoring of specific tasks of occupations, which in turn leads to
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Does the depth of trade agreements matter for trade in services? World Economy (IF 2.0) Pub Date : 2023-09-23 Amelie Guillin, Isabelle Rabaud, Chahir Zaki
In recent years, deep trade agreements have spread around the world and gone beyond tariff reductions. We aim to test whether the depth of agreements fosters trade in services. To do so, we use a structural gravity-type model and build new indicators of the depth of agreements based on the number of articles that are legally enforceable and that are related to trade in services. We show that, while
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The impact of internet platform usage on firms' exports: New evidence for Turkish firms World Economy (IF 2.0) Pub Date : 2023-09-22 Emine Elçin Köten
In the last decade, the key driver of e-commerce growth has been the expansion of internet access. Studies indicate that the internet is transforming both the production and consumption of goods and services in the domestic and international markets. Internet platform usage has significantly decreased the barriers for firms to communicate with foreign clients and suppliers on their international market
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Are software automation and teleworker substitutes? Preliminary evidence from Japan World Economy (IF 2.0) Pub Date : 2023-09-20 Richard Baldwin, Toshihiro Okubo
Digital technology is reshaping workplaces by enabling spatial separation of offices, known as telework, or remote intelligence (RI) and by facilitating automation of service sector tasks via artificial intelligence (AI). This paper is the first attempt to empirically investigate whether AI and RI are complements or substitutes in the service sector. It uses a worker-level panel of surveys collected
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Regional integration and services in African value chains: Retrospect and prospect World Economy (IF 2.0) Pub Date : 2023-09-20 Ben Shepherd
This article takes a first step towards understanding the quantitative evidence on the role of services in African value chains. The available data are largely based on assumptions and modelled estimates, but can nonetheless provide some useful information at an aggregate level. In general, services play an important role in the African regional economy, including through their embodiment in the exports
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Trade and value chain participation: Domestic firms and FDI spillovers in Africa World Economy (IF 2.0) Pub Date : 2023-09-19 Bernard Hoekman, Marco Sanfilippo
Data on the location of foreign direct investment (FDI) projects within and across African nations are combined with firm-level survey data and information on sectoral input–output relationships to assess what types of FDI are more likely to influence participation in global value chains (GVCs) and to investigate the relationship between FDI and the performance of proximate domestic firms. Firm-level
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Integration of African countries in regional and global value chains: Static and dynamic patterns World Economy (IF 2.0) Pub Date : 2023-09-19 Emmanuel B. Mensah, Johannes Van Biesebroeck
We study the geographic concentration of trade flows of African countries using information on the global input–output structure of trade from the Eora database. Most countries show a similar concentration between close-by versus long-distance trade in their foreign input sourcing as in their export sales. However, changes over the last two decades indicate that many countries increasingly focus their
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The least developed countries' Services Waiver, Aid for Trade for services and services exports World Economy (IF 2.0) Pub Date : 2023-09-12 Sèna Kimm Gnangnon
In 2011, Trade Ministers of the World Trade Organisation (WTO) adopted a Decision that allows WTO Members to accord preferential treatment to services and service suppliers originating in least-developed countries (LDCs). In 2013, another Ministerial Decision was adopted to operationalise the 2011 Waiver Decision. This paper has examined whether the Waiver Decision had been effective in promoting LDCs'
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Introduction to symposium supply chain trade in Africa: Retrospect and prospect World Economy (IF 2.0) Pub Date : 2023-09-14 Jaime de Melo, Marcelo Olarreaga
The symposium focuses on the evolution and determinants of Africa's participation in Global Value Chains (GVC) through comparisons with other continents, but also across countries within Africa. Using firm, sector and country-level data they provide a comprehensive micro and macroeconomic analysis of GVC in Africa that helps inform policymakers aiming at increasing Africa's participation in GVC. Three
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International trade and Ukraine's pursuit of self-determination World Economy (IF 2.0) Pub Date : 2023-09-01 Natalia Boyko, Kjersti Nes, K. Aleks Schaefer
In this research, we assess the international trade implications of Ukraine's pursuit of self-determination through the lens of the EU–Ukraine Association Agreement and the contemporaneous war with Russia in the years preceding the 2022 Russian Invasion. To do so, we construct a dataset with annual, bilateral export and import flows for Ukraine and a set of comparator countries at the 6-digit level
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How unilateral tariffs harm workers under oligopoly World Economy (IF 2.0) Pub Date : 2023-08-31 Jonas F. Rudsinske
I study import tariffs in an asymmetric general oligopolistic equilibrium trade model. Their anti-competitive effect reduces labour demand because firms want to shorten supply. Unilaterally increasing the import tariff raises domestic welfare at the foreign country's expense, but comes at the cost of favouring profit recipients as compared to workers, whose real wages fall. Only if initial tariffs
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Nowcasting services trade for the G7 economies World Economy (IF 2.0) Pub Date : 2023-08-26 Alexander Jaax, Annabelle Mourougane, Frederic Gonzales
The growing importance of services trade in the global economy contrasts with the scarcity of timely data on this part of international trade. This paper develops models to nowcast aggregate services imports and exports, as measured by monthly services trade data, for the G7 countries. The methodology relies on machine-learning techniques and dynamic factor models and combines traditional high-frequency
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COVID-19 and the distance effect World Economy (IF 2.0) Pub Date : 2023-08-25 Faqin Lin, Mengxun Liu, Mohan Zhou
Using nearly 200 countries' bilateral trade data and the gravity equation, this paper provides evidence that COVID-19 has led countries to trade more with their closer countries. The negative distance effect is greater during the pandemic period, with a greater number of infected cases, deaths or stricter control policies. A simple model of a transportation sector that was affected by the pandemic
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COVID-19 and the distance effect World Economy (IF 2.0) Pub Date : 2023-08-25 Faqin Lin, Mengxun Liu, Mohan Zhou
Using nearly 200 countries' bilateral trade data and the gravity equation, this paper provides evidence that COVID-19 has led countries to trade more with their closer countries. The negative distance effect is greater during the pandemic period, with a greater number of infected cases, deaths or stricter control policies. A simple model of a transportation sector that was affected by the pandemic
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How exporters neutralised an increase in tariffs World Economy (IF 2.0) Pub Date : 2023-08-24 Asier Minondo
I use the unanticipated and large additional tariffs the US imposed on European Union products due to the Airbus-Boeing conflict to analyse how exporters reacted to a change in trade policy. Using firm-level data for Spain and applying a difference-in-differences methodology, I show that the export revenue in the US of the firms affected by the tariff hike did not significantly decrease relative to
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A new look to the tourism and economic growth nexus: A clustering and panel causality analysis World Economy (IF 2.0) Pub Date : 2023-08-18 Isabel P. Albaladejo, Juan Gabriel Brida, María Isabel González-Martínez, Verónica Segarra
This paper explores the dynamic relationship between tourism and economic growth using panel data for 144 countries over the period 1995–2019. The study was carried out in two steps. First, the set of countries was classified by considering simultaneously two criteria, tourism and the economic development of the countries over time. Two classifications of homogeneous countries with four clusters each
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Quantitative easing rules as a means to achieve optimal levels of structural reforms and government deficits in a monetary union World Economy (IF 2.0) Pub Date : 2023-08-18 Juan Cristóbal Campoy, Juan Carlos Negrete
This paper uses a tractable game theory model to study the interactions of structural reforms and fiscal and monetary policies in the European Monetary Union (EMU). Considering the externalities that arise when interest rates have hit the lower bound and monetary policy is carried out through quantitative easing (QE), we show that the subgame perfect equilibrium is suboptimal when structural reforms
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Does foreign direct investment benefit local firms? Evidence from a natural experiment study World Economy (IF 2.0) Pub Date : 2023-08-18 Cuong Viet Nguyen, Tuyen Quang Tran, Huong Van Vu
We examine the spillover effect of foreign direct investment (FDI) on domestic firms in Vietnam. We use distance between each district center and the 17th parallel north latitude as an instrumental variable for FDI firm density at the district level. The rationale for this instrument is that districts which are closer to the 17th parallel north latitude, are more likely to suffer from unexploded ordnance
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Trade-induced reduction in unemployment of a high-wage economy World Economy (IF 2.0) Pub Date : 2023-08-16 Richard A. Brecher, Zhihao Yu
This paper shows that a high-wage country might reduce its unemployment by trading with a low-wage economy, despite popular predictions to the contrary. We demonstrate this possibility in a Heckscher–Ohlin–Samuelson type of model with two countries, which differ only because one of them has a binding minimum-wage constraint and a technological improvement that (despite the heightened wage) creates
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Globalisation and the fall of markups World Economy (IF 2.0) Pub Date : 2023-08-09 Michał Gradzewicz, Jakub Mućk
This paper provides the evidence of a fall of markups of price over marginal costs in Poland over the period 2002–2016. Markups were calculated using a census of firms and the methodology proposed by De Loecker and Warzynski (2012; American Economic Review, 102(6)). The fall of markups is robust to several empirical identification strategies. Moreover, the decline of markups is not related to changes
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Does it matter where your ancestor come from? Genetic distance and bilateral foreign direct investment World Economy (IF 2.0) Pub Date : 2023-08-08 Wei Liu, Zhihui Zhao, Yan Cui, Fangchen Guo, Yuzhao Wu
This paper selects 141 countries from 2009 to 2020 to investigate the impact of genetic distance on bilateral foreign direct investment (FDI). Through theoretical and empirical analysis, we get the following conclusions. First, genetic distance has a significant negative impact on bilateral FDI by increasing transaction costs. This conclusion still holds after several robust checks. Second, genetic
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Does it matter where your ancestor come from? Genetic distance and bilateral foreign direct investment World Economy (IF 2.0) Pub Date : 2023-08-08 Wei Liu, Zhihui Zhao, Yan Cui, Fangchen Guo, Yuzhao Wu
This paper selects 141 countries from 2009 to 2020 to investigate the impact of genetic distance on bilateral foreign direct investment (FDI). Through theoretical and empirical analysis, we get the following conclusions. First, genetic distance has a significant negative impact on bilateral FDI by increasing transaction costs. This conclusion still holds after several robust checks. Second, genetic
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New challenges in international economics and finance World Economy (IF 2.0) Pub Date : 2023-08-03 Rebeca Jiménez-Rodríguez, María A. Prats
This Special Issue brings together 13 papers that examine a variety of central topics in the field of international economics and finance. These papers were presented at the 23rd Conference on International Economics held in Málaga (Spain) on 16th–17th June 2022. The conference was organised by the Spanish Association of International Economics and Finance (AEEFI) and the University of Málaga. The
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Interdependence and multilateral economic sanctions World Economy (IF 2.0) Pub Date : 2023-08-01 Yuying Jin, Xue Meng
Multilateral economic sanctions jointly sent by the United States and its allies were studied theoretically and quantitatively. Theory provides an interdependence explanation for the current trend in economic sanctions, arguing that it constitutes an inherent motivation for the United States and its allies to act in concert to maintain the current ‘unipolar’ situation and to impede the development
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Can regional cooperation mitigate the impact of COVID-19 pandemic on greenfield investments? Evidence from the belt and road initiative World Economy (IF 2.0) Pub Date : 2023-08-02 Jing Fang, Yue Lu, Shujie Yao
This paper studies the impact of the COVID-19 pandemic on greenfield investments using a large panel dataset comprising 78 countries and regions at the monthly level from January 2019 to August 2021 (32 months). Particular attention is paid to whether the Belt and Road (BRI), a regional cooperation initiative, contributes to mitigating these shocks. Three indicators are used to measure greenfield investments
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Interdependence and multilateral economic sanctions World Economy (IF 2.0) Pub Date : 2023-08-01 Yuying Jin, Xue Meng
Multilateral economic sanctions jointly sent by the United States and its allies were studied theoretically and quantitatively. Theory provides an interdependence explanation for the current trend in economic sanctions, arguing that it constitutes an inherent motivation for the United States and its allies to act in concert to maintain the current ‘unipolar’ situation and to impede the development
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Impacts of globalisation on the adoption of remote work: Evidence from a survey in Japan during the COVID-19 pandemic World Economy (IF 2.0) Pub Date : 2023-07-31 Eiichi Tomiura, Banri Ito
Globalised firms manage face-to-face contacts for distant communications. Based on our survey on the responses of Japanese firms to the COVID-19 pandemic, we find that firms that exported, imported, or directly invested abroad more before the pandemic tend to adopt remote work significantly more frequently during the pandemic. We confirm this relationship even after controlling for compositions of
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Collective bargaining and technological innovation in the EU15: An analysis at establishment level World Economy (IF 2.0) Pub Date : 2023-07-28 Julimar da Silva Bichara, Sandro E. Monsueto, Ana I. Viñas
In this paper, we study the relationship between unionisation and workplace innovation in a cross-country and multisectoral approach. This is an important and controversial issue in the industrial relation literature; however, the empirical literature on the links between innovation and unionism is rather scarce and results are mixed and ambiguous, both in theory and in empirical practice. The European
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Military alliance and international trade: Evidence from NATO enlargement World Economy (IF 2.0) Pub Date : 2023-07-21 Bing Li, Yixuan Ge, Yi-min Lin
This paper exploits the three eastward expansions of NATO after the Cold War as a quasi-natural experiment to investigate the relationship between military alliance and trade. To identify the impact of alliance membership on trade, we adopt the difference-in-differences method to estimate a gravity model with global bilateral trade data from 1995 to 2015. The results show that joining NATO has a positive