An empirical assessment of the trade facilitation initiative: econometric evidence and global economic effects

2013 ◽  
Vol 13 (1) ◽  
pp. 103-130 ◽  
Author(s):  
C. ZAKI
Keyword(s):  
Computable General Equilibrium ◽  
Developing Economies ◽  
Economic Effects ◽  
Cge Model ◽  
Regional Trade ◽  
Trade Facilitation ◽  
Long Run ◽  
Red Tape ◽  
Short Run ◽  
Sub Saharan

AbstractThis paper attempts to model trade facilitation in a multi-regional and multi-sectoral computable general equilibrium (CGE) model, MIRAGE. It follows Decreux and Fontagné (2009) in modeling trade facilitation and in assuming that administrative barriers are an iceberg cost. I extend their model using more comprehensive measures of ad-valorem equivalents (AVEs) of red tape costs, which are computed from a gravity model, and are introduced in the CGE model. The novelty in using those AVEs is that they take into account the effects of bureaucracy, internet coverage, corruption, and geographical barriers on the time to trade. The paper has four major findings. Gains derived from trade facilitation are more significant for developing economies (especially for the Middle East and North Africa region and Sub-Saharan countries) than for developed ones, whether in terms of welfare gain (either in the short or long run) or increase in trade. Second, long-run welfare effects of trade facilitation are much higher than in the short run. Third, trade facilitation helps boost both intra-regional trade and inter-regional trade. Fourth and most interestingly, it also helps improve export diversification, leading to an expansion in those sectors that are more sensitive to time, such as food, textiles, and electronics.

scholarly journals Tourism taxes and negative externalities in tourism in australia: A CGE approach

2013 ◽  
Vol 10 (4) ◽  
pp. 200-214
Author(s):  
Ranjith Ihalanayake
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
International Tourism ◽  
Cge Model ◽  
Negative Externalities ◽  
Economic Activities ◽  
Long Run ◽  
Tourism Sector ◽  
Australian Economy ◽  
Short Run

In this paper we analyse general equilibrium effects of an increase in a tourism tax which we hypothetically designed to internalise negative externalities of international tourism in Australia. Several simulations were carried out using a computable general equilibrium (CGE) model of the Australian economy. The simulations were carried out assuming two different economic environments, the short-run and the long-run. The simulation results suggest that due to an increase in tourism taxes, the international tourism sector tends to contract while the other sectors expand. Overall, an increase in tourism taxes appears to be welfare improving in the long-run though it generates a marginal contraction in overall economic activities in the short run.

scholarly journals LABOR MARKET DYNAMICS UNDER TECHNOLOGY SHOCKS: THE ROLE OF SUBSISTENCE CONSUMPTION

2021 ◽  
pp. 1-29
Author(s):  
Sangyup Choi ◽  
Myungkyu Shim
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Developing Economies ◽  
Structural Var ◽  
Market Dynamics ◽  
Technology Shocks ◽  
Structural Factors ◽  
Long Run ◽  
Labor Market Dynamics ◽  
Short Run

This paper establishes new stylized facts about labor market dynamics in developing economies, which are distinct from those in advanced economies, and then proposes a simple model to explain them. We first show that the response of hours worked and employment to a technology shock—identified by a structural VAR model with either short-run or long-run restrictions—is substantially smaller in developing economies. We then present compelling empirical evidence that several structural factors related to the relevance of subsistence consumption across countries can jointly account for the relative volatility of employment to output and that of consumption to output. We argue that a standard real business cycle (RBC) model augmented with subsistence consumption can explain the several salient features of business cycle fluctuations in developing economies, especially their distinct labor market dynamics under technology shocks.

scholarly journals Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 18 (12) ◽  
pp. 6236
Author(s):  
Husam Rjoub ◽  
Chuka Uzoma Ifediora ◽  
Jamiu Adetola Odugbesan ◽  
Benneth Chiemelie Iloka ◽  
João Xavier Rita ◽  
...  
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Causal Effect ◽  
Sub Saharan Africa ◽  
Security Threats ◽  
African Countries ◽  
Significance Level ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

scholarly journals Economic Impacts of Banning Subtherapeutic Use of Antibiotics in Swine Production

2002 ◽  
Vol 34 (3) ◽  
pp. 489-500 ◽  
Author(s):  
B. Wade Brorsen ◽  
Terry Lehenbauer ◽  
Dasheng Ji ◽  
Joe Connor
Keyword(s):  
Public Health ◽  
Bacterial Resistance ◽  
Antimicrobial Agents ◽  
Economic Effects ◽  
Swine Production ◽  
Livestock Feed ◽  
Long Run ◽  
Short Run ◽  
Public Health Officials ◽  
Growth Promotants

Public health officials and physicians are concerned about possible development of bacterial resistance and potential effects on human health that may be related to the use of antimicrobial agents in livestock feed. The focus of this research is aimed at determining the economic effects that subtherapeutic bans of antimicrobials would have on both swine producers and consumers. The results show that a ban on growth promotants for swine would be costly, totaling $242.5 million annually, with swine producers sharing the larger portion in the short run and consumers sharing the larger portion in the long run.

The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia

2018 ◽  
Vol 53 (4) ◽  
pp. 211-224 ◽  
Author(s):  
Gan-Ochir Doojav
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Balance ◽  
Developing Economies ◽  
Jel Classification ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Depreciation

For resource-rich developing economies, the effect of real exchange rate depreciation on trade balance may differ from the standard findings depending on country specific characteristics. This article employs vector error correction model to examine the effect of real exchange rate on trade balance in Mongolia, a resource-rich developing country. Empirical results show that exchange rate depreciation improves trade balance in both short and long run. In particular, the well-known Marshall–Lerner condition holds in the long run; however, there is no evidence of the classic J-curve effects in the short run. The results suggest that the exchange rate flexibility may help to deal effectively with current account deficits and exchange rate risk. JEL Classification: C32, C51, F14, F32

scholarly journals Long-Run and Short-Run Effects of Trade Openness on Life Quality in Sub-Saharan Africa

2021 ◽  
Vol 11 (8) ◽  
pp. 72-83
Author(s):  
Guivis Zeufack Nkemgha ◽  
Aimée Viviane Mbita ◽  
Symphorin Engone Mve ◽  
Rodrigue Tchoffo
Keyword(s):  
Trade Openness ◽  
Life Quality ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
French Colonies ◽  
Sub Saharan ◽  
British Colonies

This paper contributes to the understanding of the other neglected effects of trade openness by analysing how it affects life quality in sub-Saharan African countries over the period 2000–2016. We used two trade openness indicators, namely: Squalli and Wilson index and the rate of trade. The empirical evidence is based on a pooled mean group approach. With two panels differentiated by their colonial origin, the following findings are established: the trade openness variable measured by Squalli and Wilson index has no effect on life quality in the both groups of countries in the short-run. However, it has a positive and significant effect on life quality in the both group of countries in the long-run. The use of the rate of trade confirms the results in the both groups of countries in the long-run. The contribution of trade openness to life quality is 3.27 and 5.19 times higher in the Former British Colonies than that recorded in the Former French Colonies of SSA respectively to the use of Squalli and Wilson index and the rate of trade. Overall, we find strong evidence supporting the view that trade openness promotes life quality in SSA countries in the long run.

scholarly journals Dampak Kenaikan Tarif Dasar Listrik Terhadap Kinerja Sektor Pertanian di Indonesia dalam Jangka Pendek dan Panjang

2018 ◽  
Vol 22 (1) ◽  
pp. 36
Author(s):  
Sahara Sahara
Keyword(s):  
Computable General Equilibrium ◽  
Negative Impact ◽  
Household Consumption ◽  
Electricity Price ◽  
Agricultural Product ◽  
Long Run ◽  
Industry Output ◽  
Short Run ◽  
Negative Impacts ◽  
Industry Sectors

Increasing on electricity price by Indonesian Government in 2001 by 17.47% and 2002 by 24% not only has negative impact on industry sectors but also on agricultural sectors. This paper aims to analysis impact on agricultural sectors performance with using a Recursive Dynamic Computable General Equilibrium (CGE) Model, namely “INDOF model”. The simulation indicates both in the short run and long run increasing on electricity price will reduce industry output, household consumption and employment in agricultural sectors. Besides that the policy will increase price of agricultural product. The negative impacts except household consumption are higher in the long run than that in the short run.

Population Growth and Urbanization in Africa

2016 ◽  
pp. 282-297 ◽  
Author(s):  
Samuel Adams ◽  
Eric Evans Osei Opoku
Keyword(s):  
Carbon Dioxide ◽  
Population Growth ◽  
Carbon Dioxide Emissions ◽  
Age Groups ◽  
African Countries ◽  
Pooled Mean Group ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Sub Saharan

This study examined the effect of population growth and urbanization on the environment (carbon dioxide emissions) for 37 sub Saharan African countries based on 1980-2010 annual data. Using the Pooled Mean Group estimation technique, the findings of the study show that affluence and industrialization have negative effect on the environment (increases carbon dioxide emissions) while urbanization does not have a significant effect on carbon dioxide emissions. The population variable is significant only in the long run but insignificant in the short run. Also, after controlling for the different age groups, the results show that the more active age group (15-59) is positive and significantly related to carbon dioxide emissions.

scholarly journals An Empirical Analysis of the Monetary Transmission Mechanism of Developing Economies: Evidence from Ghana

2018 ◽  
Vol 10 (4) ◽  
pp. 72
Author(s):  
Felix S. Nyumuah
Keyword(s):  
Developing Economies ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Clear Understanding ◽  
Monetary Transmission Mechanism ◽  
Developed Economies ◽  
Transmission Mechanisms ◽  
Long Run ◽  
Short Run ◽  
The Interest Rate

Policymakers need a clear understanding of their monetary transmission mechanisms for effective implementation of monetary policy. The aim of this study is to carry out an econometric analysis of the channels of monetary transmission mechanism in less developed economies so as to determine their effectiveness. The study uses Ghana macroeconomic data and finds the money supply channel to be the strongest in the long run while the exchange rate channel seems the strongest in transmitting monetary impulses in the short run. The interest rate and the bank credit to private sector channels emerge as very weak channels of monetary transmission.

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