scholarly journals Assortative Matching of Exporters and Importers

2021 ◽  
pp. 1-46
Author(s):  
Yoichi Sugita ◽  
Kensuke Teshima ◽  
Enrique Seira

Abstract This paper studies how exporting and importing firms match based on their capability by investigating the change in such exporter-importer matching during trade liberalization. During the recent liberalization on the Mexico-US textile/apparel trade, exporters and importers often switch their main partners as well as change trade volumes. We develop a many-to-many matching model of exporters and importers where partner switching is the principal margin of adjustment, featuring Beckerian positive assortative matching by capability. Trade liberalization achieves efficient global buyer-supplier matching and improves consumer welfare by inducing systematic partner switching. The data confirm the predicted partner switching patterns.

2013 ◽  
Author(s):  
Jin Kyo Suh ◽  
Chul Chung ◽  
Jun Won Lee

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Ario Seno Nugroho

This paper examines the effects of free trade between Indonesia and Japan on agriculture and manufacturing sector, consumer welfare, and the whole economy in Indonesia using a computable general equilibrium model based on 2008 Indonesia Input-Output Table. The general theory related to the effects of free trade says domestic consumers will benefit while disadvantages domestic producers will suffer from the free trade policy. In contrast, this study found that both the domestic consumers and the domestic industries (people who work in industries) benefit from trade liberalization scenario. The consumer welfare and economics utility would also increase. Also, the model estimates the reduction in government revenue, which is caused by decreasing tariff, is lower than the addition in government revenue from non-tariff income. Finally, manufacturing sector seems has the highest benefit from trade liberalization while in the agriculture sector is estimated minor outcome 


2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Gunawan Muhamad ◽  
Ario Seno Nugroho

ABSTRACT:       This paper examines the effects of trade liberalization on the sugar industry, the consumer welfare, and the whole economy in Indonesia using a computable general equilibrium model based on 2008 Indonesia Input-Output Table. The common argument concerning the effects of trade liberalization is that consumers benefit from trade liberalization while domestic industries suffer from that. However, this paper found that both the consumers and the domestic industries suffer from trade liberalization scenario. The smaller the tariff rate, even if the subsidy rate was applied, the lower the welfare and the utility. The more decrease in the consumer’s welfare and in the utility would be suffered when the trade liberalization scenario was financed by increasing the production tax rate or the income rate. Finally, when the tariff rate was increased and assumed that the government consumption would adjust, the consumer’s welfare, the utility and the overall producer’s income would increase. Even though, the domestic producer in the sugarcane and sugar refinery industry would suffer. Finally, manufacturing sector seems has the highest benefit from trade liberalization while in the agriculture sector is estimated has a minor outcome. Key Words: Trade Liberalization, Computable General Equilibrium (CGE), Sugar, Welfare, UtilityABSTRACT:       Makalah ini membahas dampak liberalisasi perdagangan terhadap industri gula, kesejahteraan konsumen, dan keseluruhan ekonomi di Indonesia dengan menggunakan computable general equilibrium model yang dihitung berdasarkan Tabel Input-Output Indonesia tahun 2008. Perdebatan umum mengenai efek dari liberalisasi perdagangan adalah bahwa konsumen mendapat manfaat dari liberalisasi perdagangan sementara industri dalam negeri menderita dari perdagangan bebas. Namun, dari hasil penelitian ini, peneliti menemukan bahwa konsumen dan industri domestik, sama-sama menderita dari skenario liberalisasi perdagangan. Semakin kecil tingkat tarif, meskipun dengan pemberian subsidi oleh pemerintah, maka semakin rendah tingkat kesejahteraan konsumen dan utilitas. Penurunan kesejahteraan konsumen dan utilitas yang lebih besar akan diderita ketika skenario liberalisasi perdagangan dibiayai dengan menaikkan tarif pajak produksi atau tarif pajak penghasilan.  Akhirnya, ketika tingkat tarif meningkat dan diasumsikan bahwa konsumsi pemerintah akan disesuaikan, kesejahteraan konsumen, utilitas dan pendapatan produsen secara keseluruhan akan meningkat. Meski demikian, produsen dalam negeri di industri tebu dan gula rafinasi akan menderita. Akhirnya, sektor manufaktur diperkirakan mendapat manfaat tertinggi dari liberalisasi perdagangan, sedangkan di sektor pertanian, diperkirakan mendapat manfaat yang rendah.Kata kunci: Liberalisasi Perdagangan, Computable General Equilibrium (CGE) Gula,  Kesejahteraan, Utilitas


2020 ◽  
Author(s):  
Jose Maria Barrero

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.


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