Toward “Trade Policy Analysis 2.0”: From National Comparative Advantage to Firm-Level Trade Data

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

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POLICY ANALYSIS MATRIX FOR THE ESSENTIAL CEREAL CROPS VARIETIES (RICE BUHOOTH 1, AND CORN SYNTHETIC GENOTYPE BAGHDAD 3) (STUDY CASE) IN IRAQ FOR THE YEAR 2012

IRAQI JOURNAL OF AGRICULTURAL SCIENCES ◽

10.36103/ijas.v48i3.395 ◽

2017 ◽

Vol 48 (3) ◽

Author(s):

Lateef & et al.

Keyword(s):

Policy Analysis ◽

Comparative Advantage ◽

Government Intervention ◽

Cereal Crops ◽

Cost Coefficient ◽

Governmental Support ◽

Resource Cost ◽

The Government ◽

Domestic Producer ◽

Policy Analysis Matrix

The objective of this research was to analyze the economic impact of government intervention in the essential cereal crops for (Rice Buhooth1, and Synthetic genotype Baghdad3) by comparing the social price and private prices through adopting policy analysis matrix approach PAM and the derived parameters from it .The research was divided into two chapters; the first chapter was about field counting for the policy analysis matrix PAM and measuring the implications of the government intervention on the Rice Buhooth1. The second chapter was about explaining the field counting for policy analysis matrix PAM and measuring the implications of the government intervention impact on the second synthetic genotype Baghdad3.The research found a set of results, the most important result showed that the value of profitability coefficient was about 3.69, this indicates that the rice crop production system for the Rice Buhooth 1 takes advantage of the adopted government policy in that year, which means that there is governmental support for the product. In addition, domestic resource cost coefficient value which was about 0.72 indicates that there is comparative advantage for the Rice Buhooth 1 for the year 2012. The values of the nominal and effective protection coefficient were about 1.74 and 1.59 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Regarding the Synthetic genotype Baghdad3, the value of profitability coefficient was about 1.75 which means that there is governmental support for the product. The domestic resource cost coefficient value was about 0.24 which indicates that there was comparative advantage for the mentioned above for the year 2012. The values of the nominal and effective protection coefficient were about 1.48 and 1.56 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Finally, it is highly recommended that support should be increased for the varieties that the country has greater comparative advantage in order to improve the utilization of available resources and reduce wasted resources. Moreover, similar studies should be done in the future by other researchers to major cereal crops varieties at the country level in order to do comparison between them to set a mechanism for the government intervention policy in the main crop prices in the country which help both the local producer and agricultural investor in directing its resources properly.

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The international economics of intellectual property right protection: A welfare-theoretic trade policy analysis

World Development ◽

10.1016/0305-750x(91)90118-2 ◽

1991 ◽

Vol 19 (8) ◽

pp. 945-956 ◽

Cited By ~ 6

Author(s):

Arvind Subramanian

Keyword(s):

Intellectual Property ◽

Policy Analysis ◽

Trade Policy ◽

International Economics ◽

Property Right ◽

Intellectual Property Right

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Comparative Advantage and Trade Policy Distortions

A Handbook of Primary Commodities in the Global Economy ◽

10.1017/9781316416945.004 ◽

2017 ◽

pp. 56-70

Author(s):

Marian Radetzki ◽

Linda Warell

Keyword(s):

Trade Policy ◽

Comparative Advantage

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A Balls-and-Bins Model of Trade

The American Economic Review ◽

10.1257/aer.104.7.2127 ◽

2014 ◽

Vol 104 (7) ◽

pp. 2127-2151 ◽

Cited By ~ 41

Author(s):

Roc Armenter ◽

Miklós Koren

Keyword(s):

Statistical Model ◽

Large Class ◽

Trade Flows ◽

Extensive Margin ◽

Firm Level ◽

Trade Data ◽

Exporting Firms ◽

Extensive Margin Of Trade

Many of the facts about the extensive margin of trade—which firms export, and how many products are sent to how many destinations— are consistent with a surprisingly large class of trade models because of the sparse nature of trade data. We propose a statistical model to account for sparsity, formalizing the assignment of trade shipments to country, product, and firm categories as balls falling into bins. The balls-and-bins model quantitatively reproduces the pattern of zero product- and firm-level trade flows across export destinations, and the frequency of multiproduct, multidestination exporters. In contrast, balls-and-bins overpredicts the fraction of exporting firms. ( JEL F11, F14)

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