scholarly journals Understanding Markups in the Open Economy

2015 ◽  
Vol 7 (2) ◽  
pp. 157-180 ◽  
Author(s):  
Beatriz de Blas ◽  
Katheryn N. Russ
Keyword(s):  
Numerical Simulations ◽  
Closed Form ◽  
Open Economy ◽  
Trade Openness ◽  
Heterogeneous Firms ◽  
Trading Partner ◽  
Empirical Literature ◽  
Bertrand Competition ◽  
New Model ◽  
Pass Through

This paper presents a new model of Bertrand competition between heterogeneous firms in the open economy where the macroeconomic distribution of markups responds to the degree of trade openness and the underlying level of technology in each trading partner. The model’s simple closed-form distributions for markups and pricing yield predictions that coincide with a number of stylized facts from the empirical literature on markups, pass-through, and trade openness which previously could be illustrated only through numerical simulations. (JEL D43, F12, F41, L13)

scholarly journals Trade credit, trade income elasticity and the international transmission of shocks

2021 ◽  
Author(s):  
Anna Watson
Keyword(s):  
International Trade ◽  
Open Economy ◽  
Trade Credit ◽  
Income Elasticity ◽  
Heterogeneous Firms ◽  
Firm Level ◽  
Macroeconomic Shocks ◽  
Cyclical Fluctuations ◽  
Irish Data ◽  
The Impact

AbstractThe paper examines the impact of trade credit on cyclical fluctuations in international trade. It provides new empirical evidence based on firm-level UK and Irish data showing that exporters use trade credit more actively and intensively than non-exporters. The study introduces inter-firm lending into an open economy general equilibrium model with heterogeneous firms and endogenous entry into the exports market. It demonstrates that trade credit amplifies the impact of macroeconomic shocks on international trade both along the intensive and extensive margins and that it significantly contributes to the high trade income elasticity observed in the data.

scholarly journals Compressible integral representation of rotational and axisymmetric rocket flow

2016 ◽  
Vol 809 ◽  
pp. 213-239 ◽  
Author(s):  
M. Akiki ◽  
J. Majdalani
Keyword(s):  
Numerical Simulations ◽  
Closed Form ◽  
Mass Flux ◽  
Mathematical Formulation ◽  
Circular Cross Section ◽  
Ideal Gas ◽  
Injection Rate ◽  
Dimensional Solution ◽  
Abel Transformation ◽  
Injection Speed

This work focuses on the development of a semi-analytical model that is appropriate for the rotational, steady, inviscid, and compressible motion of an ideal gas, which is accelerated uniformly along the length of a right-cylindrical rocket chamber. By overcoming some of the difficulties encountered in previous work on the subject, the present analysis leads to an improved mathematical formulation, which enables us to retrieve an exact solution for the pressure field. Considering a slender porous chamber of circular cross-section, the method that we follow reduces the problem’s mass, momentum, energy, ideal gas, and isentropic relations to a single integral equation that is amenable to a direct numerical evaluation. Then, using an Abel transformation, exact closed-form representations of the pressure distribution are obtained for particular values of the specific heat ratio. Throughout this effort, Saint-Robert’s power law is used to link the pressure to the mass injection rate at the wall. This allows us to compare the results associated with the axisymmetric chamber configuration to two closed-form analytical solutions developed under either one- or two-dimensional, isentropic flow conditions. The comparison is carried out assuming, first, a uniformly distributed mass flux and, second, a constant radial injection speed along the simulated propellant grain. Our amended formulation is consequently shown to agree with a one-dimensional solution obtained for the case of uniform wall mass flux, as well as numerical simulations and asymptotic approximations for a constant wall injection speed. The numerical simulations include three particular models: a strictly inviscid solver, which closely agrees with the present formulation, and both $k$–$\unicode[STIX]{x1D714}$ and Spalart–Allmaras computations.

scholarly journals Exchange Rate Pass Through in a Small Open Economy: A case study of West African Monetary Zone

2013 ◽  
Vol 9 (4) ◽  
pp. 275-290
Author(s):  
Rahman olanrewaju Raji
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Price Index ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Import Price ◽  
Series Data ◽  
Import Prices ◽  
Pass Through ◽  
Exchange Rate Pass Through

The  study investigated the magnitude of exchange rate pass through to import prices and domestic prices    (consumer price index) in WAMZ economy using quarterly time-series data between 2000 and 2010 with the aids of Vector autoregressive (VAR) modeling technique supported with Johansen co-integration approach cross country analysis comprising of Gambia, Ghana, Nigeria and Sierra-Leone. The study discovered that transmission of exchange rate to import prices is more when compared with consumer price in the zone while the contributions of exchange rate to import price are not less 13 percent at average in entire zone. Consumer price index was explained by exchange rate pass through with an average of 26 percent in the zone where the pass through to consumer price is less than two percent in Ghanaian economy. The Taylor (2000) hypothesis was observed in the study where Ghana and Nigeria are the outlier economies while Nigeria established a positive relationship between interest rate volatility and exchange rate pass through to import prices.

scholarly journals Does Meaningful Relationship Exist Between Trade Liberalization and Economic Growth? A Case Study of a Small Open Economy

2021 ◽  
pp. 63-79
Author(s):  
Adedapo Odebode ◽  
Olajide Sunday Oladipo
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Open Economy ◽  
Trade Openness ◽  
Small Open Economy ◽  
Jel Classification ◽  
Appropriate Technology ◽  
Vector Error Correction ◽  
Meaningful Relationship ◽  
Alternative Measures

Using quarterly data between 1981q1 and 2018q4, the paper investigates the relationship between trade liberalization and economic growth in Nigeria. Exploring Johnasen cointegration technique and the Vector Error Correction (VEC) method, the paper considers three alternative measures of trade liberalization to determine whether the response of economic growth to trade liberalization is sensitive to the choice of the indicators of trade liberalization under consideration. The paper finds significant effects of trade liberalization on the economy. The paper recommends that government should implement policies that will promote trade openness in Nigeria. This may be achieved by establishing bilateral and multi-lateral agreements that are favourable and that will support appropriate technology transfer to domestic producers. JEL classification numbers: F31, F13, F41. Keywords: Trade liberalization, Tariffs, Economic growth, Nigeria.

scholarly journals Automatic Parallel Car Parking System using Sensors and Arduino UNO

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3531-3534
Keyword(s):  
Parallel Parking ◽  
New Model ◽  
Parking Lots ◽  
Electric Cars ◽  
Electric Car ◽  
Parking Problem ◽  
Parking System ◽  
Arduino Uno ◽  
Pass Through

In this busy world, people are tending towards automation in all routine works which in turn is saving their time. Due to the increased use of cars and congesting places, everywhere we are facing a queue to pass through. One such queue we face is in the parallel parking lots. For solving this problem, many automobile manufacturers have come up with Auto Parking Features in New Model Cars. Then what about Old Cars? Shouldn’t those Old Cars get modified with this Auto Parking facility? Yes, they can get modified with our proposed solution. In this paper, we are presenting a solution in the form of a module for the parallel parking problem called “Automatic Parallel Car Parking System – using Sensors and Arduino UNO”. Along with New Cars, this module can also be integrated with Old Electric Cars to bring Auto Parallel Park feature. This paper also discusses existing Auto Parallel Parking Systems. It also discusses the proposed solution by solving the flaws in existing solutions. The proposed solution is easily adaptable, with small modifications to an electric car. Future enhancements are also proposed.

DROPLET FEEDBACK ON VAPOR IN A WARM CLOUD

2009 ◽  
Vol 23 (28n29) ◽  
pp. 5434-5443 ◽  
Author(s):  
ANTONIO CELANI ◽  
ANDREA MAZZINO ◽  
MARCO TIZZI
Keyword(s):  
Numerical Simulations ◽  
Droplet Size ◽  
Cloud Droplet ◽  
Direct Numerical Simulations ◽  
Cloud Droplets ◽  
Size Spectra ◽  
New Model ◽  
Warm Cloud ◽  
Local Reduction ◽  
The One

A new model to study the effect of turbulence on the cloud droplets in the condensation phase is proposed and its behavior investigated by direct numerical simulations. The model is a generalization of the one by Celani, Mazzino, Tizzi, New J. Phys.10, 075021 (2008), where the droplet feedback on vapor is now explicitly taken into account. Physically, it amounts to considering the fact that when a cloud droplet increases its size, vapor is subtracted from the ambient with the net result of a local reduction in the supersaturation field. It is shown how this effect plays to reduce the broadening of droplet size spectra in the condensation stage and thus to produce results in closer agreement with observations.

scholarly journals Exchange rate pass-through to inflation in Egypt: a structural VAR approach

2018 ◽  
Vol 3 (2) ◽  
pp. 2-19 ◽  
Author(s):  
Omneia Helmy ◽  
Mona Fayed ◽  
Kholoud Hussien
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Structural Var ◽  
Empirical Literature ◽  
Content Type ◽  
The Exchange Rate ◽  
Exchange Rate Shocks ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
The Impact

Purpose The theoretical and empirical literature stipulated that exchange rate shocks do influence the domestic price of imports. Hence, this paper aims to investigate the underlying relationship between the exchange rate and prices known as the exchange rate pass-through. Design/methodology/approach The paper uses a structural vector auto-regression (SVAR) model, drawing on Bernanke (1986) and Sims (1986), to empirically examine and analyze the pass-through of exchange rate fluctuations to domestic prices in Egypt. Findings The empirical results of the monthly data between 2003 and 2015 revealed that the exchange rate pass-through in Egypt is fairly substantial but incomplete and slow in the three price indices [IMP, producer price index and consumer price index (CPI)]. However, the impact is more prominent for consumer prices than for any other price index. This finding could be attributed to the fact that the CPI in Egypt is composed of a relatively large number of subsidized commodities and goods with administered prices as well as the authorities’ behavior in manipulating prices (i.e. export ban). This is expected to weaken the transmission of exchange rate shocks. Practical implications The result has interesting implications for Egypt’s ability to attain an effective inflation targeting regime. Originality/value The study contributes to the literature by assessing the effect of changes in the exchange rate (the Egyptian £ vis-à-vis the US$) on prices using an updated time series from 2003 to 2015. It addresses the limitations of the study of Nafie et al. (2004), which found no strong relationship between the exchange rate and inflation rate in the Egyptian context. One of these limitations was using the CPI, as the only price index.

Modelling the Open Economy, Devaluation, and the Exchange Rate in Developing Countries

2020 ◽  
pp. 277-306
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Open Economy ◽  
Exchange Rate Volatility ◽  
Empirical Literature ◽  
Economy Model ◽  
Poor Countries ◽  
Pros And Cons ◽  
External Sector ◽  
The Impact

The chapter first examines the limitations of conventional open-economy macro models, such as the Mundell–Fleming model, when they are applied to developing countries. It discusses the Swan–Salter model and the three-sector dependent-economy model that better capture the reality of the external sector in poor countries. It then discusses the impact of devaluation under conditions of closed and open capital accounts and shows the limitation of a devaluation unaccompanied by structural measures in little diversified poor economies and in economies with large dollar liabilities. In this regard, it examines the results of the empirical literature on the contractionary or expansionary effect of devaluation in developing countries. Finally, it reviews the pros and cons of alternative exchange rate regimes, the impossible trinity theorem, and measures to control exchange rate volatility through capital controls.

International Trade, Wages, and Unemployment

2020 ◽  
Author(s):  
Priyaranjan Jha
Keyword(s):  
Trade Liberalization ◽  
Heterogeneous Firms ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Allocation Of Resources ◽  
Trade Theory ◽  
Implicit Contracts ◽  
Export Sector ◽  
Wage Effects ◽  
The Impact

Traditional trade theory has focused on the allocation of resources between various sectors of the economy and how it changes in response to trade liberalization while maintaining the assumption of free mobility of resources across sectors within an economy. This simplifying assumption is at odds with empirical evidence which shows considerable frictions in the movement of resources between sectors, at least in the short to medium run. Workers who lose their jobs in the import competing sector may find it hard to find a job immediately in the export sector. This has given rise to a growing literature that incorporates frictions in the mobility of factors of production in general, and labor in particular, in trade models. This article surveys the literature on trade and unemployment where unemployment is caused by search frictions or wage rigidity of some kind such as minimum wage, efficiency wage, or implicit contracts. While the focus is on unemployment, any model studying the impact of trade on labor markets features wage effects, too, and a brief discussion of wage effects is also provided. Trade affects unemployment in these multi-sector models through two main channels: sectoral unemployment rates and intersectoral reallocation of resources. In newer trade models with heterogeneous firms, trade can change unemployment by affecting the allocation of resources within a sector. While the theoretical models in this literature identify various channels through which trade liberalization affects unemployment, many of these channels have opposing implications for unemployment, rendering the net effect of trade liberalization on unemployment ambiguous in many settings. This has also given rise to an empirical literature studying the implications of trade liberalization on unemployment.

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