This paper uses unconditional quantile regression methods to evaluate the incidence of GATT/WTO membership on poverty in countries with different poverty rates. My results suggest that GATT/WTO membership increases significantly poverty across the entire unconditional distribution of poverty. Countries with the highest poverty rates incur larger poverty increases after joining GATT/WTO than countries

This study analyses the process of economic integration in Latin America. Making use of a structural gravity model and including intra‐national trade flows, this paper provides an ex‐post assessment of the effect of the trade agreements (TAs) signed by Latin American countries on international trade. We account for the last wave of TAs proliferation and estimate treaty‐level effects. On average, TAs

We study the drivers governing external disequilibria through a Global VAR (GVAR) analysis applied to a group of 24 countries during the period 1972–2017. The GVAR methodology is particularly well suited for our research question. First, it permits to measure the effects of both domestic and foreign country‐specific shocks. Second, it allows us to analyse the long‐run relationships and dynamics through

This paper studies the trade effects of COVID‐19 using monthly disaggregated trade data for 28 countries and multiple trading partners from the beginning of the pandemic to June 2020. Regression results based on a sector‐level gravity model show that the negative trade effects induced by COVID‐19 shocks varied widely across sectors. Sectors more amenable to remote work contracted less throughout the

This paper examines the intellectual contributions of Professor W. M. (‘Max’) Corden to Economics. We focus on three main fields: trade theory and practice, especially his pioneering work on the theory of effective protection; open economy macroeconomics, including exchange rate policy, the international monetary system, Dutch Disease, and economic crises; and Australian economic policy. We emphasize

The aim of this paper is to analyse the effects of quality competitiveness based on technological innovation on the bilateral trade of goods. Our approach is based on the estimation of an import demand model that uses the data for 19 manufacturing sectors across 28 OECD countries over the period of 1998–2012. In the first step, to identify quality from prices, the logarithm of unit value (a proxy of

This paper presents new high‐frequency data on trade policy changes targeting medical and food products since the beginning of the COVID‐19 pandemic, documenting how countries used trade policy instruments in response to the health crisis on a week‐by‐week basis. The data set reveals a rapid increase in trade policy activism in February and March 2020 in tandem with the rise in COVID‐19 cases but also

This paper explores the role of a firm's product and/or market export experience and experimentation for survival of new product‐destination export spells, using firm‐level Spanish customs data over the period 1997–2015. Previous research has documented a positive impact of experience on export survival. This paper contributes to the extant literature by unravelling the distinct effect on export survival

This paper studies the factors of comparative advantage within global value chains relying on a framework where comparative advantage is measured through the interaction of country and industry characteristics. We find that good institutions give a comparative advantage in the later stages of the production process, whereas good transport infrastructure gives an advantage in the early stages of production

This study sheds light on the effect of restrictive policies, such as screening procedures, on mergers and acquisitions (M&A) flows into EU Member States in the period 2011–8. By implementing an augmented gravity model, we show that different restrictive measures affect cross‐border investments unevenly. The presence of formal screening procedures per se does not negatively affect cross‐border investments

The international system for the governance of foreign investments is highly fragmented consisting mainly of bilateral agreements. With the adoption of nine guiding principles for global investment policy‐making in 2016, some observers argue that the G20 can actually serve as a launchpad for negotiations of a multilateral investment agreement. This paper provides empirical evidence on the question

This paper analyses a prominent dimension of the initial policy response to the COVID‐19 pandemic observed in many countries: the imposition of export restrictions and actions to facilitate imports. Using weekly data on the use of trade policy instruments during the first seven months of the COVID‐19 pandemic (January–July, 2020), we assess the relationship between the use of trade policy instruments

Many US policymakers on both sides of the aisle, including President Trump, have called on the US Federal Reserve to cut interest rates to depreciate the US dollar. This paper uses an intertemporal general equilibrium model to explore what would likely happen if this policy was pursued. It shows that the general equilibrium effects of a depreciated real effective exchange rate brought about by lower

We are delighted to see Dr Alan King's interest and curiosity in the subject of PPP and, in particular, this paper of ours. This is a Rejoinder to his Comment.

This study examines how the rules of origin (RoO) of a free trade agreement (FTA) affect firms' pricing strategies. The value‐added criterion (VAC) of the RoO requires firms to add more than a certain level of value within an FTA when firms use inputs originating from outside the FTA. The VAC may work as a price floor, and the resulting increases in prices can benefit all firms if it induces an offshoring

Trade in services is often hampered by domestic administrative barriers, even when countries are members of the same regional trade agreement. We exploit a large reform in the European Union (the EU Service Directive) aimed at reducing such administrative hurdles in cross‐border service provision to estimate its effects on service trade. We employ a triple‐difference strategy and a Poisson pseudo‐maximum‐likelihood

This article investigates the impact of the internationalisation of emerging market currencies on original sin, which is the inability of emerging countries to borrow abroad in local currency. The objective is to assess the role of measures of internationalisation on the currency structure of debt for a set of emerging market countries. We show the favourable impact of the internationalisation process

This paper examines the empirical relationship between trade agreements and domestic labour mobility. The domestic‐commitment motive from Maggi and Rodriguez‐Clare (American Economic Review, 97, 2007, 1374) and standard trade models with labour frictions predict that trade liberalisation should occur when labour is more mobile. I find support for this prediction. Using regional trade agreements (RTAs)

This study examines the impact of financial development on export quality. Financial development is proxied by the overall financial development index, its two sub‐indices (financial institutions index and financial markets index) and three dimensions of each sub‐index. The study begins by examining the causality between financial development indicators and export quality. The influences of financial

This paper studies bilateral cultural preferences as an asymmetric dimension of cultural proximity and estimates their effect on greenfield foreign direct investment (FDI). We derive a gravity equation of FDI and test simultaneously the impact of both (a) the preferences of investing countries for recipients' culture and (b) recipients' preferences for the culture in the investing economies. While

State support remains a leading cause of tension in international commercial relations. Governments see trade distortions that look like they were caused by industrial subsidies, but lack data to illuminate that state support. In the 1980s, the Organisation for Economic Co‐operation and Development (OECD) developed an index that helped countries to see the overall incidence of agricultural subsidies

In this paper, we argue that altered incentives for clubs to develop star players after the Bosman ruling can explain why European football has seen lower competitive balance in the Champions League but more competitive balance at the national level. By having a profound impact on the transfers of players within the European Union (EU), the Bosman ruling led to stiffer bidding competition over football

Rodrik (2018) hypothesises that technology used in global value chains (GVCs) is biased against the use of unskilled workers. To test this hypothesis, we introduce a GVC production function in which final output is produced by means of factor inputs from all countries that participate in the GVC. In contrast, previous studies only consider one stage of production using inputs from a single country

A competitive and stable real exchange rate (RER) has been recognised as an important variable for promoting economic development, especially in emerging and developing economies (EMDEs). The postglobal financial crisis era, however, has seen a marked deluge of global liquidity from ultra‐loose monetary policy in advanced economies, which has led to a surge in capital inflows and consequent loss of

In this paper, we test whether weakening the domestic currency can help boost economic growth. To estimate this policy‐relevant but yet complex link, we apply a new mediation analysis to isolate the long‐term growth effects of currency undervaluation induced by active exchange rate management and capital control policies. Using a dataset of 182 countries in the post‐Bretton‐Woods period, we find that

We develop a model of fiscal competition for foreign direct investment and show that the decision of multinational firms to locate in the proximity of indigenous firms—which can be thought of as agglomeration—may be the result of the provision of government incentives that aim to capitalise on the potential for knowledge spillovers to indigenous industry. Somewhat different but complementary to existing

This paper considers a domain of governance and trade freedom indicators in order to reveal some of the dimensions along which the MENA region's intra‐regional trade and export intensity might be fostered. Historically, conflicts, crises and oil interests have impeded intra‐MENA integration efforts and kept trade‐flow intensities between the region's countries below those of its trade with RoW. But

This paper examines the short‐ and long‐run effects of manufacturing capital utilisation on income distribution and social welfare of an economy. A rise in manufacturing capital utilisation lowers the effective cost of capital. This increases the demand for capital in the urban sector, which raises firm output and profitability but reduces the availability of capital in the rural sector. Unskilled

This paper uses a detailed data set of UK firms between 2005 and 16, to investigate how export participation and export values were affected by the aftermath of the 2008 crisis, and particularly the post‐crisis recovery period of 2011–16. Viewing the post‐crisis period as a treatment compared to before the crisis, we compare firm export propensity and export values using a propensity score matching

We use micro data on affiliates to Swedish multinational firms (MNEs) to explore the impact of more stringent employment protection legislation (EPL) on foreign direct investment (FDI). We add to the previous literature by exploring the impact of EPL on the extensive as well as intensive margin, and by distinguishing the impact on different types of affiliates. We find that employment and exports in

The papers in this symposium were initially presented at the Global Political Economy Network conference at Loughborough University in London in April 2019. Notable from the conference ‐ and indeed from the papers in this symposium – is a strong common theme of the importance to an open economy, not just of explicit economic policies, but also of underlying political and social institutions. This special

The WTO Global Trade Model, a quantitative trade model, is employed to project the impact on the global economy of the COVID‐19 pandemic. Because of the profound uncertainty about the duration of the pandemic and the containment measures, three scenarios are constructed, V‐shaped, U‐shaped and L‐shaped recovery, corresponding with a duration of the pandemic of 3 months, 6 months and more than a year