Using annual data for the period 2000–2018, the study employed an autoregressive distributed lag (ARDL) methodology to examine the long-run cointegrating relations between service subsectors and economic growth in Albania. Results are presented both for the short run and long run. Findings indicate that the transport sector, communication and financial services have a positive impact on economic growth

Utilizing a comprehensive dataset for Turkish manufacturing firms, we analyse differentials in the post-entry effects on productivity of exporting to markets with different income levels. We employ propensity score matching techniques with multiple treatments, together with a differences-in-differences (DiD) methodology. Controlling for firm level mark-ups, we explore whether the post-entry effects

This paper investigates the importance of real exchange rates on export volumes by estimating a panel SVAR model using quarterly unbalanced panel data from 21 emerging markets over the 2005:Q1-2018:Q4 period. Although the results suggest no conclusive evidence that real exchange rate shocks do affect the export volumes in our sample of emerging markets, the responses of export volume to real exchange

The positive direct and indirect spillover effects of foreign direct investment on growth are often case specific and not necessarily uniform nor easily predicted. Effects of FDI due to international investment policy changes are often confounded by free trade and customs union agreements that occur simultaneously because trade may be a complement to or substitute for FDI. We review the effects of

This paper explores the relationship between financial constraints and firm participation in global value chains (GVC). We use a rich firm-level data belonging to the Indian manufacturing sector for the period 2001–2016. Controlling for endogeneity and sample selection bias, our empirical outcome reveals a negative impact of financial constraint on firm GVC participation. We also find that inter-firm

The present study examines the effect of institutions on the location choice of foreign direct investment (FDI) using a novel dataset for bilateral FDI of India. My study follows prior works to argue that institutions have a positive association with FDI. The study considers three widely used institutional pillars namely state judiciary system, bureaucracy system, and property right protection to examine

The relationship between trade and industrial performance has received a great deal of empirical attention over the past three decades. Much of this empirical attention has however focused on productivity, employment, and output growth oblivious of profit effects – the primary motive for manufacturers. Different from this literature, this paper contributes to the existing body of knowledge by testing

Protectionism and anti-globalization tides have been rising already before the COVID-19 pandemic, with Brexit and the China-U.S. trade war, as two examples. A continued disruption to global trade, investment and value chains could worsen global development. Economic recovery will require restoring firms’ ability to trade, offshore and invest globally. To achieve this, it will be useful to understand

ABSTRACT The main objective of this paper is to empirically investigate the Feldstein-Horioka puzzle for the Next Eleven (N-11), which are Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey, and Vietnam, employing using panel data techniques that allow structural breaks through Fourier functions. We also introduce a new panel causality test to the literature

This study analyzes the impacts of further tariff reductions resulting from the proliferation of regional trade agreements on wage inequality between skilled and unskilled workers in Chile in the 2000s. I match panel data on industry-level effective tariff rates and other industry variables calculated from plant-level microdata to pooled individual cross-section data from national household surveys

ABSTRACT In this paper, we contribute to the literature on firm-heterogeneity and trade, by looking not only at the firm-level determinants of trade participation (i.e. extensive margin) but also at differences between firms with different levels of trade intensity (i.e. intensive margin). Further, we compare firms that are born ‘local’ and display different scales of international exposure to firms

The work assesses whether the effect of open trade policies-OTP on growth is dependent on the level of governance quality in the Economic Community of West African States (ECOWAS) countries. We estimate a non-linear growth equation that interacts OTP with governance. Based on the cross-sectional dependence test, we use the Driscoll–Kraay approach and mainly an extended instrumental variables-IV approach

We investigate the effect of grandfathered permit allocation and abatement productivity for carbon emissions on growth rate, firms' location choices, foreign direct investment, and total pollution in an agglomeration model with innovation. We consider grandfathered permit allocation as potential rent. We find a distribution effect wherein increasing (decreasing) permit price raises (reduces) firms'

This paper constructs a theoretical model matching empirically observed relationships between average labor productivity and the number of operating firms. The models in the related literature which utilize CES utility function find no relationship between average labor productivity and the number of operating firms in the economy (Melitz, Marc J. [2003. “The Impact of Trade on Intra-Industry Reallocations

ABSTRACT This paper analyzes the effects of exogenous shocks on long-term growth. Additionally, it analyzes episodes of growth acceleration and reversal in 33 sub-Saharan Africa countries over the period 1980–2016. Fixed effects and the generalized method of moments are used to assess the effects of exogenous shocks on long-term growth. The results show that the terms of trade, remittances, and world

ABSTRACT Some empirical studies have shown that many developing economies were unable to recover lost trade revenue from domestic taxes after implementing trade liberalizing policies. Ignoring the fiscal cost of trade liberalization when government spending is not completely wasteful may lead to misleading welfare estimates. We address these concerns by developing a model in which government spending

This paper uses a modified gravity model to investigate the effects of rules of origin (RoO) on 61 countries’ participation in global value chains (GVCs) during the period 2005–2015. We define GVC participation as the value added contained in exports, looking both backward and forward from a reference nation. RoO are heterogeneous in the degrees of restrictiveness that govern the origin of products

ABSTRACT This study investigates the effects of Aid for Trade (AfT) on the sophistication level of recipient countries’ export baskets. The results indicate that total AfT inflows do not benefit the export sophistication. AfT for trade policy and regulations seems to be the only type of AfT that are found to be effective in low-income countries with a real GDP per capita of less than USD 3047.72 and

(2021). Best paper 2020. The Journal of International Trade & Economic Development: Vol. 30, No. 1, pp. 1-1.

This paper theoretically shows that changes in the distance elasticity of trade can be connected to welfare changes that depend on bilateral distance measures and expenditure shares of countries. Empirical results based on international and domestic trade data from the last two centuries show that the negative effects of distance on trade have increased over time when zero trade observations are ignored

This paper aims to empirically examine the impact of high-technology trade on employment. A dynamic labour demand equation is employed to investigate the impact of high-tech trade on employment in 20 high-tech exporting countries. Using data from 2007 to 2016, this study highlights some evidence on the negative relationship between high-tech trade and employment. This paper argues the development towards

This paper investigates the contribution of female labor participation as well female ownership/management to trade margins using firm-level data for 18 manufacturing and services sectors in eight MENA countries for 2013. This topic is innovative, and critical for the MENA region where female participation in the export sector is shy, at a time the region is looking for new sources of competitiveness

ABSTRACT This paper seeks to determine Nigeria’s long-run growth path using a multi-sectoral version of the balance of payment constrained growth model from 1981 to 2016. It particularly contends that the actual growth of an economy is highly connected to sectoral differences in elasticities of income of tradable goods produced in the economy. The autoregressive distributed lag model (ARDL) approach

ABSTRACT This study computed the comparative advantage (CA) of 28 oil-producing countries in crude oil over the period 1990–2016 using Normalised Revealed Comparative Advantage (NRCA) index and applied a Panel ARDL model to investigate the determinants of the CA. The results of the NRCA index indicated that not all the sampled 28 countries have a CA in crude oil production. The Panel econometric estimation

This study examined symmetric and asymmetric causal relationships among financial systems, regulatory quality, and economic performance in selected African countries. The patterns of causality and impulse responses were found to vary across the selected countries, and the following were confirmed: symmetric demand-following, symmetric supply-leading, symmetric feedback, and neutrality hypotheses. Also

We pioneer empirical investigation into the causal relationship between foreign direct investment (FDI) and globalization in Africa with the aid of the Dumitresu-Hurlin panel Granger causality test. Using a panel dataset of 50 countries for the period 1996–2016, we find evidence of unidirectional causality from globalization to FDI. Considering the dimensions of globalization, we find evidence of unidirectional

ABSTRACT This study investigates the validity of the export-led growth hypothesis (ELG) in five GCC countries, namely, Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates. The study uses an augmented production function and annual time series data over the period 1975-2016. For the estimation of the models, the Johansen cointegration test is employed to test the existence of a long-run

ABSTRACT This paper investigates how trade openness affects wage inequality within and between trading countries under a new framework that incorporates the endogenous technology choice assumption. This assumption implies that as well as making a labor choice, the firms in our model simultaneously choose to adopt different technology compositions, rather than simply utilizing the standard constant

ABSTRACT Trade policy uncertainty is at an all-time high in the United States and continues to escalate. This paper empirically examined the ability of US trade policy uncertainty to predict global output volatility. To this end, a battery of econometric tests was employed—Toda and Yamamoto linear Granger causality test, nonparametric test for nonlinear causality, and nonlinear Granger causality test

Using a measure of the volume of offshoring conducted by 62 countries, the intrinsic properties of the global offshoring network are analyzed: size, density, and others. From these properties, we extract information about which countries and sectors of the economy are the main drivers of the network. We find a regularity through the network of all sectors, which we call a stylized fact, that yields

This study examines the economic efficiency associated with firm location in a non-traded goods industry. This industry comprises of two segmented regions (markets) and a fixed number of potentially identical, oligopolistic firms. We consider the following two-stage game. In the first stage, firms determine the region in which they want to locate simultaneously and independently. In the second, given

This article uses panel-corrected standard errors (PCSE) estimator and dynamic fixed effects autoregressive distributed lag (DFE ARDL) estimator to examine the influence of the institutional quality and economic integration on shadow economy for a global sample of 112 economies (between 2005 and 2015). Our empirical research shows that the inward foreign direct investment (FDI), trade openness, institutional