scholarly journals Trade, Quality Upgrading, and Input Linkages: Theory and Evidence from Colombia

2018 ◽  
Vol 108 (1) ◽  
pp. 109-146 ◽  
Author(s):  
Ana Cecília Fieler ◽  
Marcela Eslava ◽  
Daniel Yi Xu
Keyword(s):  
International Trade ◽  
Trade Liberalization ◽  
Economies Of Scale ◽  
Quantitative Model ◽  
Manufacturing Firms ◽  
Skill Intensity ◽  
Export Expansion ◽  
Quality Technology ◽  
Quality Upgrading

A quantitative model brings together theories linking international trade to quality, technology, and demand for skills. Standard effects of trade on importers and exporters are magnified through domestic input linkages. We estimate the model with data from Colombian manufacturing firms before the 1991 trade liberalization. A counterfactual trade liberalization is broadly consistent with post-liberalization data. It increases skill intensity from 12 to 16 percent, while decreasing sales. Imported inputs, estimated to be of higher quality, and domestic input linkages are quantitatively important. Economies of scale, export expansion, and reallocation of production are small and cannot explain post-liberalization data. (JEL F14, F16, J24, L60, O14, O19, O33)

INTERNATIONAL TRADE TAX REVENUE AND TRADE LIBERALIZATION, A CASE STUDY OF PAKISTAN.

2017 ◽  
Vol 5 (2) ◽  
pp. 454-460 ◽  
Author(s):  
Afzal Mahmood. ◽  
◽  
Kanwal Zahra ◽  
Mehmood Khalid. ◽  
◽  
...  
Keyword(s):  
International Trade ◽  
Trade Liberalization ◽  
Tax Revenue

Bilateral Treaties and The Most-Favored-Nation Clause: The Myth of Trade Liberalization in the Nineteenth Century

2008 ◽  
Vol 60 (2) ◽  
pp. 147-188 ◽  
Author(s):  
Olivier Accominotti ◽  
Marc Flandreau
Keyword(s):  
International Trade ◽  
Trade Liberalization ◽  
Empirical Evidence ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Point Of View ◽  
Most Favored Nation ◽  
The World ◽  
Most Favored Nation Clause ◽  
Bilateral Treaties

Textbook accounts of the Anglo-French trade agreement of 1860 argue that it heralded the beginning of a liberal trading order. This alleged success holds much interest from a modern policy point of view, for it rested on bilateral negotiations and most-favored-nation clauses. With the help of new data on international trade (the RICardo database), the authors provide empirical evidence and find that the treaty and subsequent network of MFN trade agreements coincided with the end of a period of unilateral liberalization across the world. They also find that it did not contribute to expanding trade at all. This is contrary to a deeply rooted belief among economists, economic historians, and political scientists. The authors draw a number of policy lessons that run counter to the conventional wisdom and raise skepticism toward the ability of bilateralism and MFN arrangements to promote trade liberalization.

AGGREGATE MARKUP DYNAMICS: EVIDENCE FROM CHINA

2021 ◽  
pp. 1-21
Author(s):  
YUE WEN
Keyword(s):  
Trade Liberalization ◽  
Decomposition Method ◽  
Dynamic Change ◽  
Manufacturing Firms ◽  
Sample Period ◽  
Upward Trend ◽  
Firm Level ◽  
Industry Level ◽  
New Perspective

Unlike previous studies that focus on the change of firm-level markup, this study focuses on the change of industry-level aggregate markup. From the data of China’s manufacturing firms in 1999–2007, this study exploits the dynamic change of aggregate markup by using the decomposition method which is proposed by Melitz and Polanec (2015). The result shows that China’s manufacturing aggregate markup has an upward trend during the sample period, which mainly comes from the contribution of surviving firms. On the contrary, the contribution of entering and exiting firms to the aggregate markup is negative. Further analysis shows that trade liberalization is one of the reasons to promote the increase of China’s manufacturing aggregate markup. This study provides a new perspective for understanding the dynamic change of the aggregate markup.

Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry

2014 ◽  
Vol 14 (03n04) ◽  
pp. 467-485 ◽  
Author(s):  
Lionel Bopage ◽  
Kishor Sharma
Keyword(s):  
Trade Liberalization ◽  
Productivity Growth ◽  
Economies Of Scale ◽  
Motor Vehicle ◽  
Negative Impact ◽  
Policy Implications ◽  
Tariff Protection ◽  
Ongoing Debate ◽  
Motor Vehicle Industry ◽  
Production Subsidies

This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.

The Mark-up Rates in Turkish Private Manufacturing Industry During Trade Liberalization

2002 ◽  
Author(s):  
Ozlem Onaran ◽  
Nurhan Yenturk
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Panel Data ◽  
Trade Liberalization ◽  
Manufacturing Industry ◽  
Labor Costs ◽  
Trade Off ◽  
Striking Result ◽  
The Relationship ◽  
Shed Light

The aim of this study is to shed light on the movements of the mark-up rate for the case of Turkey following trade liberalization. For this purpose, first the relationship between labor and non-labor costs that lies behind the movements of the mark-up rates is analyzed, and second, the effect of trade liberalization on mark-up rates is tested. The trade-off between labor and non-labor costs is analyzed based on a model, which assumes that prices are set by a mark-up over average variable costs. The paper also tests the effect of international trade on the mark-up rate and the effect of the exchange rate via its effect on competitiveness and input costs using the panel data for the sub-sectors of private manufacturing industry. The most striking result of this analysis is the absence of any strong link between foreign trade and mark-up rates.

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