Latent Trade Diversification and Its Relevance for Macroeconomic Stability

2019 ◽  
Author(s):  
Daniel Lederman ◽  
Samuel Pienknagura ◽  
Diego Rojas
Keyword(s):  
Important Determinant ◽  
Terms Of Trade ◽  
Gdp Per Capita ◽  
Economic Implications ◽  
Country Characteristics ◽  
Per Capita ◽  
Terms Of Trade Volatility ◽  
Trade Volatility ◽  
Novel Concept ◽  
Macroeconomic Stability

Abstract This paper examines the economic implications of a novel concept of trade diversification—latent diversification. In contrast to traditional measures, latent diversification accounts for potential movements of factors of production into activities where the country has previous exporting experience, hence presenting an additional margin through which countries can respond to shocks. The paper shows that the gap between traditional measures of diversification and latent diversification is sizeable and that latent diversification is in its own right an important determinant of macroeconomic stability. More diversified latent export baskets are associated with lower terms-of-trade volatility and, in turn, lower GDP per capita volatility, even after controlling for the degree of contemporaneous export diversification and other country characteristics.

What Can We Learn from Global and Regional Rankings of Countries?

2018 ◽  
Vol 9 (2) ◽  
pp. 119-139
Author(s):  
Huseyin Aytug ◽  
Siong Hook Law ◽  
Nirvikar Singh
Keyword(s):  
North America ◽  
South America ◽  
Principal Components ◽  
Principal Component ◽  
Business Environment ◽  
Gdp Per Capita ◽  
Essential Information ◽  
Country Characteristics ◽  
Country Rankings ◽  
Per Capita

We use principal component analysis (PCA) to extract the essential information contained in 10 different country rankings, measuring different country characteristics such as GDP per capita, human development, quality of governance, environmental quality and business environment. Globally, the first principal component accounts for about 82 per cent of the variation across countries, and the first three principal components account for over 92 per cent. The percentages are similar for regions such as Europe, North America and Asia, but lower for South America and Africa, but even in the last of these regions, the first three principal components account for 86 per cent of the variation. Excluding GDP per capita does not change our results appreciably. The analysis suggests that various different indices may add relatively little new information to more basic measures of development. Regional comparisons suggest that Asia’s economic structures, as implied by the rankings, may be closer to those of Europe and North America than South America and Africa. JEL Codes: C38, O1, O57

Multilateral Trade Liberalization and Terms of Trade Volatility

2018 ◽  
Vol 09 (03) ◽  
pp. 1850007 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Terms Of Trade ◽  
Multilateral Trade ◽  
The World ◽  
Current Article ◽  
Terms Of Trade Volatility ◽  
Trade Volatility ◽  
Multilateral Trade Liberalization ◽  
The Impact

The world has experienced in recent years a rising anti-trade and anti-globalization sentiment, which would likely jeopardize recent efforts by the international trade community, in particular Members of the World Trade Organization (WTO), to promote multilateral trade liberalization (MTP). The current article investigates the impact of MTP on countries’ terms of trade volatility. Results based on a large panel dataset suggest that MTP exerts a significant reducing effect on countries’ terms of trade volatility. However, this impact appears to be dependent on countries’ development level. The take-home message is that greater cooperation on trade matters, including among WTO Members would help promote multilateral trade liberalization, which would surely contribute to reducing terms of trade volatility, for the benefits of all countries, in particular developing economies.

scholarly journals Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253464
Author(s):  
M. S. Karimi ◽  
S. Ahmad ◽  
H. Karamelikli ◽  
D. T. Dinç ◽  
Y. A. Khan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Gdp Per Capita ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Economic Implications ◽  
Long Run ◽  
Per Capita

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

scholarly journals Explaining Financial Crises in Emerging Markets: A logit model on the Turkish data (1984-2001)

2005 ◽  
Vol 10 (1) ◽  
pp. 33-47
Author(s):  
Mete Feridun
Keyword(s):  
Emerging Markets ◽  
Foreign Exchange ◽  
Stock Prices ◽  
Logit Model ◽  
Financial Crises ◽  
Terms Of Trade ◽  
Gdp Per Capita ◽  
Foreign Exchange Reserves ◽  
Fiscal Balance ◽  
Per Capita

This article aims at explaining the financial crises Turkey experienced in the last decade through a random effects logit model which incorporates 26 macroeconomic, political, and financial sector variables. Evidence emerges that the only significant variables are current account/GDP, fiscal balance/GDP, GDP per capita, national savings growth, foreign exchange reserves, terms of trade, stock prices, and import growth. Results indicate that all variables have expected signs with the exception of import growth.

The Impact of Terms of Trade Volatility on Economic Growth in ASEAN Countries

2018 ◽  
Vol 10 (03) ◽  
pp. 32-40
Author(s):  
Papa Kojo Christopher CONDUAH ◽  
Tae Hwan YOO
Keyword(s):  
Economic Growth ◽  
Price Index ◽  
Terms Of Trade ◽  
Oil Price ◽  
Raw Material ◽  
Terms Of Trade Volatility ◽  
Asean Countries ◽  
Trade Volatility ◽  
The Impact ◽  
Material Price

This article examines the impact of terms of trade volatility on economic growth and the sources of terms of trade volatility for selected ASEAN countries. By adopting a panel cointegraion method, this study finds that fluctuations of oil price and non-fuel raw material price index have caused terms of trade volatility, which limits economic growth.

Sign in / Sign up

Export Citation Format

Share Document