Income and Price Elasticities of Foreign Trade Flows : Econometric Estimation and Analysis of the U.S. Trade Deficit

The persistence of the U.S. trade deficit despite the significant depreciation of the dollar in the second half of the 1980s prompted several studies seeking an explanation for this phenomenon. There has been a renewed interest on the exchange rate trade linkage as the U.S. trade deficit reached a record high despite steady depreciation of the dollar in early 1995. This paper presents an empirical analysis of the relationship between real exchange rate and U.S. exports to Canada and Japan. The major finding of this paper is that real income and real exchange rates changes are important determinants of bilateral trade flows.

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Econometric Analysis of Foreign Trade Between Turkey and China Within The Scope of İncome and Price Elasticities

Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi ◽

10.18070/erciyesiibd.789951 ◽

2021 ◽

pp. 197-220

Author(s):

Mehmet Barış ASLAN

Keyword(s):

Foreign Trade ◽

Econometric Analysis ◽

Price Elasticities ◽

Income And Price Elasticities

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Comparing Some Benefits and Costs from Eliminating the U.S. Trade Deficit with Low Wage Countries

International Advances in Economic Research ◽

10.1007/s11294-021-09823-6 ◽

2021 ◽

Author(s):

Jon R. Neill

Keyword(s):

Trade Deficit ◽

Benefits And Costs ◽

The U.S

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How Much Does China's Exchange Rate Affect the U.S. Trade Deficit?

Chinese Economy ◽

10.2753/ces1097-1475460605 ◽

2013 ◽

Vol 46 (6) ◽

pp. 80-93 ◽

Cited By ~ 10

Author(s):

Kan Yue ◽

Kevin Honglin Zhang

Keyword(s):

Exchange Rate ◽

Trade Deficit ◽

The U.S

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An Analysis of Interaction Effects of China–South Korea and China– Australia FTAs and the Expanding TPP

Naše gospodarstvo/Our economy ◽

10.1515/ngoe-2016-0020 ◽

2016 ◽

Vol 62 (4) ◽

pp. 12-22

Author(s):

Sun Yuhong ◽

Mu Yifei ◽

Jun Yang

Keyword(s):

South Korea ◽

Foreign Trade ◽

Trade Policy ◽

Free Trade ◽

Computable General Equilibrium ◽

Computable General Equilibrium Model ◽

Economic Welfare ◽

Positive Effects ◽

Negative Effect ◽

The U.S

Abstract On 5 October 2015, the Trans-Pacific Partnership Agreement (TPP) led by the U.S. was signed. Already, 12 countries1 have joined the agreement, but China has not. Thus, lots of research has focused on the negative effect of the TPP on China’s foreign trade. On the other hand, China is moving forward in its own efforts to establish bilateral free trade agreements (FTAs) and free trade zones. In June 2015, China-South Korea and China-Australia signed bilateral FTAs which went into effect in December 2015. Several questions were raised: Since South Korea and Australia are the major trade partners in the Pacific area and the bilateral FTAs will be effective before the TPP, will these FTAs’ positive effects on China’s foreign trade offset some of the negative effects of the TPP? If China and the U.S. adopted a competitive trade policy, which countries would benefit? If China and the U.S. adopted a cooperative trade policy, how would the trade value and economic welfare change? This paper simulates and analyses the mutual effects of China-South Korea and China-Australia FTAs and the enlarging TPP using the computable general equilibrium model. The major conclusions drawn suggest that China-South Korea and China-Australia FTAs will significantly offset the TPP’s negative effect on China’s foreign trade. If China is not included, the U.S. economic benefit from the TPP will be limited. The economic welfare for a country like Australia, which joined both the bilateral FTA and the TPP, will be increased the most. In the long run, China joining the TPP would be the most beneficial decision for its national interest. However, if the TPP cannot be approved by the US congress, the U.S.’s economic indicators and export would be decreasing sharply. China’s economy and export will benefit from FTAs.

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Evolución del perfil sectorial del comercio exterior en la provincia de León, 1995-2014 = Foreign trade sector evolution in the province of León 1995-2014

Pecvnia Revista de la Facultad de Ciencias Económicas y Empresariales Universidad de León ◽

10.18002/pec.v0i2013/14.3725 ◽

2014 ◽

pp. 295

Author(s):

José Luis Placer Galán

Keyword(s):

Foreign Trade ◽

Electrical Equipment ◽

Trade Flows ◽

Pharmaceutical Chemistry ◽

Productive Activity ◽

Domestic Trade ◽

Productive Activities ◽

Strong Focus ◽

Full Period ◽

The One

El notable crecimiento del comercio exterior de España en las últimas décadas también se ha producido en una economía tan orientada al mercado interior como la de la provincia de León. El objetivo de este trabajo es doble: averiguar la evolución del peso del comercio exterior en el conjunto de la actividad productiva leonesa, y el perfil sectorial de sus flujos comerciales durante el período 1995-2014. El análisis realizado permite señalar que en los últimos veinte años la actividad productiva orientada a los mercados internacionales se ha duplicado, especialmente en los últimos cinco años. Por otra parte, el perfil sectorial exportador ha variado notablemente pasando de ser mayoritariamente de productos químico-farmacéuticos y extractivos a serlo actualmente de bienes de equipo eléctricos y de manufacturas metálicas. Sin embargo, las importaciones, que tienen un mayor grado de diversificación que las exportaciones, han mantenido un perfil sectorial similar en todo el período, concentrado en legumbres y, en menor medida, en bienes de equipo eléctricos y de manufacturas metálicas.In the last decades foreign trade has experienced a significant growth both in Spain and Leon economies, whereas the latter has always been characterized by a strong focus on domestic trade. The goal of this paper is dual: find out the evolution of foreign trade importance within the whole productive activity in Leon and sector profile of its trade flows during the period from 1995 to 2014. On the one hand, the analysis carried out highlights that productive activities focused on foreign trade have doubled in the last twenty years, especially in the recent five. On the other hand, export sectors have changed mainly, from exporting pharmaceutical chemistry products and extractors to currently exporting electrical equipment and metal assembly. However, import sectors that are more diversified than export, have maintained a similar sector profile during the full period analysed. Import sectors in Leon are mainly focused on legumes and in a smaller proportion on electrical appliance equipment and metal assembly.

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Exchange rate policy, growth, and foreign trade in China

Economic Annals ◽

10.2298/eka1190103g ◽

2011 ◽

Vol 56 (190) ◽

pp. 103-139 ◽

Cited By ~ 1

Author(s):

Mirjana Gligoric

Keyword(s):

Exchange Rate ◽

Foreign Trade ◽

Foreign Exchange ◽

Global Economy ◽

Trade Deficit ◽

Exchange Rate Policy ◽

Negative Effects ◽

Bilateral Relations ◽

The Usa ◽

Rate Policy

This paper analyzes a hot topic: the influence of an undervalued currency on macroeconomic variables - primarily on the economic growth and trade balance of a country, but also on employment, foreign exchange reserves, competition, and living standards. It also reviews and explains the consequences of yuan undervaluation, points out the need for its appreciation, and states the negative effects that stem from this measure. Special attention is given to the problematic bilateral relations between China and the USA and the reasons why Americans are worried about the exchange rate policy that China implements. Although yuan appreciation would decrease the American foreign trade deficit, it also raises the question of further financing of the American deficit. There are also other problems that the possible appreciation would cause for the American economy, due to the effect of J-curve, passthrough, larger costs of input imported from China, etc. Therefore, Chinese foreign exchange policy is an important subject, but it is not the solution to the problems of the global economy - which have deeper roots than that. However, there is no excuse for China implementing unfair exchange rate policies, or replacing such policies with controversial protectionist policies (as some authors have suggested).

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Trade Flows within the U.S. Nursery Industry

Journal of Environmental Horticulture ◽

10.24266/0738-2898-34.1.19 ◽

2016 ◽

Vol 34 (1) ◽

pp. 19-29

Author(s):

Hayk Khachatryan ◽

Alan W. Hodges ◽

Marco A. Palma ◽

Charles R. Hall

Keyword(s):

United States ◽

Great Plains ◽

National Survey ◽

Trade Flow ◽

Ornamental Plant ◽

Trade Flows ◽

Regional Trade ◽

Percentage Distribution ◽

Green Industry ◽

The U.S

This study summarizes regional trade flows in the U.S. nursery industry by incorporating origin and destination (OD) sales data from a national survey of ornamental plant growers and dealers conducted in 2014. Specifically, we discuss: 1) regional annual sales reported by the green industry firms in 2013, 2) percentage distribution of OD trade flows by regions and states, and 3) differences in the percentage distribution of OD trade flows during the 5-year period by region. Of 32,000 questionnaires sent via mail and email, a total of 2,657 usable observations were received and used in the analysis. The OD trade flow results were then compared with those of 2008 estimates by eight United States regions. The highest proportion of inter-regional sales were reported by firms in the Appalachian (35.7%), followed by Mountain (25.4%), and Southeast (19.1%) regions, and the lowest inter-regional sales were in the Midwest (2.2%) and Great Plains (0.9%) regions. The results show considerable changes in both intra-state (within home state) and inter-regional (between states) trade flows from 2008 to 2013. Overall, intra-regional trade in the Great Plains, Midwest, Pacific, and Southeast regions increased by 9.9, 3.7, 1.6, and 7.8% from 2008 to 2013, respectively. However, the proportion of sales within Appalachian, Mountain, Northeast and Southcentral regions, decreased by 11.1, 8.3, 3.8 and 0.2%, respectively. Implications for relevant green industry stakeholders are discussed.

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An International Comparative Study Of Per Capita Consumption Of Import: Implications For U.S-Japan Trade

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v17i1.2066 ◽

2011 ◽

Vol 17 (1) ◽

Author(s):

Tyler T. Yu ◽

Miranda M. Zhang

Keyword(s):

Bilateral Trade ◽

Trade Deficit ◽

Capita Consumption ◽

Trade Barriers ◽

Font Size ◽

Significant Difference ◽

Per Capita ◽

International Comparative ◽

Per Capita Consumption ◽

The U.S

This paper discusses the per-capita consumption of imports aspect of international trade.  A research hypothesis is tested to investigate if there is a significant difference among G-7 countries in per-capita consumption of imports and the implication of the testing results for the U.S. - Japan bilateral trade deficit.  The results of the ANOVA and the Kruskal-Wallis test yield insignificant variation in per-capita consumption of imported goods/services among the G-7 countries.  The study recapitulates the reason(s) for the U.S. trade deficit with Japan and essentially states that factors other than trade barriers and restrictions cause the U.S. trade deficit with Japan.  While this result may initially seem counterintuitive and inconsistent with popular wisdom, it may actually help uncover the true causes for the sustained trade deficit with Japan.

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