The effects of market integration during the first globalization: a multi-market approach

2020 ◽  
Author(s):  
David Chilosi ◽  
Giovanni Federico
Keyword(s):  
World Trade ◽  
Market Integration ◽  
International Market ◽  
Trade Costs ◽  
Partial Equilibrium ◽  
Trade Policies ◽  
Small Open Economies ◽  
Welfare Gains ◽  
Partial Equilibrium Model ◽  
Market Approach

Abstract This paper is a first attempt to measure the effects of international market integration on world trade and welfare in the ``long nineteenth century”. We run a multi-market partial equilibrium model, which takes into account the interactions between route-specific changes in trade costs, for the two most traded commodities, cotton and wheat. The collapse in trade costs accounted for 60 percent of the growth of trade for cotton and for 40 percent for wheat. As expected, welfare gains were larger for small open economies, but they were substantial also for large countries, with big differences determined by trade policies.

scholarly journals Structural Change and Global Trade

2021 ◽  
Author(s):  
Logan T Lewis ◽  
Ryan Monarch ◽  
Michael Sposi ◽  
Jing Zhang
Keyword(s):  
Structural Change ◽  
World Trade ◽  
Trade Costs ◽  
Trade Integration ◽  
Welfare Gains ◽  
Services Trade ◽  
The Past ◽  
Trade Model ◽  
Percentage Points ◽  
The World

Abstract Services, which are less traded than goods, rose from 55% of world expenditure in 1970 to 75% in 2015. Using a Ricardian trade model incorporating endogenous structural change, we quantify how this substantial shift in consumption has affected trade. Without structural change, we find that the world trade to GDP ratio would be 13 percentage points higher by 2015, about half the boost delivered from declining trade costs. In addition, a world without structural change would have had about 40% greater welfare gains from the trade integration over the past four decades. Absent further reductions in trade costs, ongoing structural change implies that world trade as a share of GDP would eventually decline. Going forward, higher income countries gain relatively more from reducing services trade costs than from reducing goods trade costs.

scholarly journals The Impacts of Soy-Based Biodiesel on the Main Soy Producers in the International Market

2020 ◽  
Vol 8 (2) ◽  
pp. 498
Author(s):  
Augusto Mussi Alvim ◽  
Adelar Fochezatto
Keyword(s):  
International Market ◽  
Biodiesel Production ◽  
Partial Equilibrium ◽  
Food Markets ◽  
The Third ◽  
Mixed Complementarity Problem ◽  
General Terms ◽  
Partial Equilibrium Model ◽  
The World ◽  
Alternative Scenarios

This study analyzes the impacts of soy-based biodiesel consumption on the main soybean-producing countries. To achieve this goal, a partial equilibrium model formulated as a Mixed Complementarity Problem (PCM) is used, which allows the inclusion of trade barriers and the construction of alternative scenarios. Four scenarios are analyzed. The first simulates a demand shock for soybean meal and soybean oil, considering the observed growth in demand over the last ten years. The second evaluates the effects of an increase in the demand for meal, oil and biodiesel. The third considers the elimination of the demand for soy-based biodiesel. The last scenario assesses the effects of the elimination of tariffs and subsidies on the grain and food markets. In general terms, the results show that: in the second scenario, Brazil is the only exporting country that shows a greater increase in consumption than in production, reflecting the country’s smaller share in the world soybean trade; in the fourth scenario the gains are relatively smaller than the potential gains in the first scenario; in the third scenario, soybean prices are about 8% higher because of the use of soybeans for biodiesel production, demonstrating the relevance of mandatory policies in this market.

Effects of Cooking Oil Subsidy Removals on Related Markets in Malaysia: A Comparative Static, Multicommodity, Multi Stage Production Approach

2011 ◽  
Author(s):  
Jamal Othman ◽  
Yaghoob Jafari
Keyword(s):  
Equilibrium Model ◽  
Comparative Statics ◽  
Partial Equilibrium ◽  
Cooking Oil ◽  
Multi Stage ◽  
Supply Factor ◽  
Partial Equilibrium Model ◽  
Factor Markets ◽  
Input Markets ◽  
Production Approach

Malaysia is contemplating removal of most of her subsidy support measures including subsidies on cooking oil which is largely palm oil based. This paper aims to examine the effects of cooking oil subsidy removals on the competitiveness of the oil palm subsector and related markets. This is done by developing and applying a comparative static, multi-commodity, partial equilibrium model with multi-stages of production function for the Malaysian perennial crops subsector which explicitly links different stages of production, primary and intermediate input markets, trade, and policy linkages. Results partly suggest that export of cooking oil will increase by 0.2 per cent due to a 10 per cent cooking oil subsidy reduction, while domestic output of cooking oil may eventually see a net decline of 1.97 per cent. The results clearly point out that the effect of reducing cooking oil subsidies is relatively small at the upstream levels and therefore it only induces minute effects on factor markets. Consequently, the market for other agricultural crops is projected to change very marginally.   Keywords: Multicomodity, comparative statics, partial equilibrium model, output supply-factor markets linkages, effects of cooking oil subsidy removals.

scholarly journals Modelling the Impact of Energy Subsidies Reform in the Republic of Moldova

Economica ◽  
2021 ◽  
Author(s):  
Mihail Roscovan ◽  
Keyword(s):  
Natural Gas ◽  
Greenhouse Gas ◽  
Equilibrium Model ◽  
Value Added ◽  
Partial Equilibrium ◽  
Energy Subsidies ◽  
Republic Of Moldova ◽  
Partial Equilibrium Model ◽  
The Republic ◽  
The Impact

This article presents the methodology and results of modelling for the analysis on energy affordability and assessing the impact of a possible value added tax increase on the affordability of households to consume adequate levels of natural gas, electricity and heat. The analysis of the reform impact of the subsidy schemes is based on a partial equilibrium model which measures the impact of reforms on energy affordability of different householder groups and budgetary revenue and expenditure, but also on greenhouse gas emissions. Using of targeted social policies generates a budget surplus that can be allocated to energy

scholarly journals The meat market in Brazil: a partial equilibrium model

2008 ◽  
Vol 46 (4) ◽  
pp. 1189-1208 ◽  
Author(s):  
Geraldo da Silva e Souza ◽  
Eliseu Alves ◽  
Rosaura Gazzola ◽  
Renner Marra
Keyword(s):  
Least Squares ◽  
Equilibrium Model ◽  
Relative Increase ◽  
Partial Equilibrium ◽  
Model Simulations ◽  
Partial Equilibrium Model ◽  
Three Stages ◽  
Near Future ◽  
Meat Market

A partial equilibrium model for the meat market is fit to Brazilian data by three stages least squares. The model is consistent with the data and may be used for simulation purposes. In this context we compare model simulations for the near future with the OECD/ Aglink outlook. To illustrate using the model for simulations in policy assessments, we investigate the effect of a relative increase in corn price on the poultry and pork markets, coeteris paribus.

Adjudicating International Trade Cases in the World Trade Organization

2020 ◽  
pp. 330-354 ◽  
Author(s):  
Valerie Hughes
Keyword(s):  
World Trade ◽  
Trade Policies ◽  
Policy Makers ◽  
Institutional Legitimacy ◽  
Appellate Body ◽  
Limited Experience ◽  
The World ◽  
Gender Based ◽  
The Individual ◽  
Individual Perspective

The presence of women on WTO panels and the Appellate Body makes a difference from the perspective of institutional legitimacy. However, given the limited experience with women adjudicators on the WTO bench and the fact that WTO dispute reports are not signed individually but by all three adjudicators, it is impossible to prove whether women have made a difference by bringing a unique perspective to WTO adjudication. Nevertheless, it is possible to suppose that they would do so for two reasons. First, WTO Members believe that the individual perspective of an adjudicator can inform her or his decision-making, at least in the case of developing country adjudicators. Second, trade policy makers have come to realize that trade policies can affect women and men differently, and hence that developing trade policies requires a gender-based analysis. With this in mind, it is suggested that there is a gender-based approach to WTO adjudication.

Conclusion

2020 ◽  
pp. 315-322
Author(s):  
Douglas A. Irwin
Keyword(s):  
International Trade ◽  
World Trade ◽  
Trade Policies ◽  
Trading System ◽  
The World ◽  
World Trading System ◽  
And Function ◽  
Open Markets ◽  
The Impact ◽  
Role And Function

This chapter concludes that international trade and trade policies are frequently the object of condemnation rather than approbation. It explains how the condemnation are often the result of misconceptions about the benefits of international trade, the impact of trade policies, and the role and function of the World Trade Organization (WTO). Though the last few decades have been marked by a general reduction in trade barriers, the matter is not settled because the pressures to weaken the commitment to open markets never abate. The chapter emphasizes on difficult policy choices at the intersection of trade policy and climate change that could hold key battles over the world trading system in coming years. It also highlights the several benefits of world trade and the contribution of trade to the welfare and prosperity of billions of people around the world.

Sign in / Sign up

Export Citation Format

Share Document