The Role of MFN of GATT/WTO in the 'New Trade' Model

2014 ◽  
Author(s):  
Wisarut Suwanprasert
Keyword(s):  
Trade Model

Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock

Econometrica ◽  
2019 ◽  
Vol 87 (3) ◽  
pp. 741-835 ◽  
Author(s):  
Lorenzo Caliendo ◽  
Maximiliano Dvorkin ◽  
Fernando Parro
Keyword(s):  
Labor Markets ◽  
Equilibrium Analysis ◽  
Trade Model ◽  
China Trade ◽  
Transition Costs ◽  
Long Run ◽  
Labor Market Dynamics ◽  
And Migration ◽  
Labor Dynamics

We develop a dynamic trade model with spatially distinct labor markets facing varying exposure to international trade. The model captures the role of labor mobility frictions, goods mobility frictions, geographic factors, and input‐output linkages in determining equilibrium allocations. We show how to solve the equilibrium of the model and take the model to the data without assuming that the economy is at a steady state and without estimating productivities, migration frictions, or trade costs, which can be difficult to identify. We calibrate the model to 22 sectors, 38 countries, and 50 U.S. states. We study how the rise in China's trade for the period 2000 to 2007 impacted U.S. households across more than a thousand U.S. labor markets distinguished by sector and state. We find that the China trade shock resulted in a reduction of about 0.55 million U.S. manufacturing jobs, about 16% of the observed decline in manufacturing employment from 2000 to 2007. The U.S. gains in the aggregate, but due to trade and migration frictions, the welfare and employment effects vary across U.S. labor markets. Estimated transition costs to the new long‐run equilibrium are also heterogeneous and reflect the importance of accounting for labor dynamics.

scholarly journals Food and nutrition security under global trade: a relation-driven agent-based global trade model

2021 ◽  
Vol 8 (1) ◽  
pp. 201587
Author(s):  
Jiaqi Ge ◽  
J. Gareth Polhill ◽  
Jennie I. Macdiarmid ◽  
Nuala Fitton ◽  
Pete Smith ◽  
...  
Keyword(s):  
Food Security ◽  
Global Trade ◽  
Agent Based ◽  
Food And Nutrition Security ◽  
Nutrition Security ◽  
Trade Model ◽  
Food And Nutrition ◽  
Macro And Micronutrients ◽  
The Impact

This paper addresses the highly relevant and timely issues of global trade and food security by developing an empirically grounded, relation-driven agent-based global trade model. Contrary to most price-driven trade models in the literature, the relation-driven agent-based global trade model focuses on the role of relational factors such as trust, familiarity, trade history and conflicts in countries' trade behaviour. Moreover, the global trade model is linked to a comprehensive nutrition formula to investigate the impact of trade on food and nutrition security, including macro and micronutrients. Preliminary results show that global trade improves the food and nutrition security of countries in Africa, Asia and Latin America. Trade also promotes a healthier and more balanced diet, as countries have access to an increased variety of food. The effect of trade in enhancing nutrition security, with an adequate supply of macro and micronutrients, is universal across nutrients and countries. As researchers call for a holistic and multifactorial approach to food security and climate change (Hammond and Dubé 2012 Proc. Natl Acad. Sci. USA 109 , 12 356–12 363. ( doi:10.1073/pnas.0913003109 )), the paper is one of the first to develop an integrated framework that consists of socio-economic, geopolitical, nutrition, environmental and agri-food systems to tackle these global challenges. Given the ongoing events of Brexit, the US–China trade war and the global COVID-19 pandemic, the paper will provide valuable insights on the role of trade in improving the food and nutrition security across countries.

scholarly journals TECHNOLOGY, TRADE, AND GROWTH: THE ROLE OF EDUCATION

2015 ◽  
Vol 20 (5) ◽  
pp. 1381-1394 ◽  
Author(s):  
Klaus Prettner ◽  
Holger Strulik
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Industrialized Countries ◽  
Economic Prosperity ◽  
Trade Model ◽  
Cross Country ◽  
Globalized World ◽  
Trade And Growth

We generalize a trade model with firm-specific heterogeneity and R&D-based growth to allow for endogenous education and fertility. The framework is able to explain cross-country differences in living standards and trade intensities by the differential pace of human capital accumulation among industrialized countries. Consistent with the empirical evidence, scale matters for relative economic prosperity as long as countries are closed, whereas scale does not matter in a fully globalized world. The average human capital of a country, by contrast, influences its relative economic prosperity irrespective of trade-openness.

scholarly journals Spirit of Capitalism and Conspicuous Consumption with Social Status in a Neoclassical Growth Trade Model

2016 ◽  
Vol 6 (1) ◽  
pp. 70
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Social Status ◽  
Conspicuous Consumption ◽  
Physical Capital ◽  
Wealth Accumulation ◽  
Trade Patterns ◽  
Dynamic Interactions ◽  
Trade Model ◽  
Spirit Of Capitalism

<p class="ber">This study deals with dynamic interactions among social status, conspicuous consumption, spirit of capitalism, global growth, trade patterns, and inequalities in income and wealth between countries. The paper constructs a multi-country growth model with endogenous physical capital, wealth accumulation and social status. The modelling of social status is influenced by the ideas related to economic growth and social status in the literature of economic growth. This study analyzes the role of conspicuous consumption by assuming that social status is enhanced by more consumption and the role of the spirit of capitalism (of some goods) by assuming that social status is enhanced by more wealth. The global economic system consists of any number of countries and each country has one capital goods sector and one consumer goods sector. This study applies an alternative utility function proposed by Zhang to analyze household behavior. The countries differ in preferences, spirits of capitalisms, and productivities. We show that the dynamics of -country world economy is described by  differential equations. We simulate the motion of the model with three countries and carry out comparative dynamic analysis with regard to some parameters.</p>

Trade and Trade Policy for Development by Staffan Burenstam Linder. New York; Washington; London: Frederic A. Praeger, 1967. pp.xi + 179.

1968 ◽  
Vol 8 (3) ◽  
pp. 500-503
Author(s):  
Hymen P. Minsky
Keyword(s):  
New York ◽  
Developing Countries ◽  
Trade Policy ◽  
Balance Of Payments ◽  
Excess Capacity ◽  
Trade Theory ◽  
Trade Model ◽  
Internal Equilibrium ◽  
Capacity Output

Linder's theme is that conventional trade theory, as set out in the theories of comparative advantage and the compatibility of internal and external equilibrium, as well as the traditional free trade rules for trade policy are not valid for developing countries. He creates a trade model for developing countries in which internal equilibrium, in the sense of capacity income, and external (balance-of-payments) equilibrium are not compatible. Under these circumstances the need to satisfy the external equilibrium requirement dominates; this leads to a reduction of domestic output below capacity output. The existence of excess capacity in the midst of economic backwardness effectively retards continued investment and economic growth. Thus, the role of trade policy is to facilitate the achievement of capacity output

Do EU and US GSPs matter for the cotton and textiles products exports of Pakistan?

2019 ◽  
Vol 18 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Rabia Majeed ◽  
Zahoor Ul Haq ◽  
Muhammad Ishaq ◽  
Javed Iqbal ◽  
Zia Ullah
Keyword(s):  
Woven Fabrics ◽  
Content Type ◽  
Trade Model ◽  
The Us ◽  
Animal Hair ◽  
Commodity Classification ◽  
Eu And Us ◽  
Gravity Trade Model ◽  
Textile Products

Purpose This study aims to estimate and compare the effect of EU and US GSP schemes on the cotton and textile sectors of Pakistan. Design/methodology/approach The analysis used data from 2003 to 2014 for all the 14 categories of cotton and textile products at two-digit using HS commodity classification. Effects of the EU and US GSPs are estimated using a gravity trade model. Findings Both the concessions are statistically significant determinants of wadding and nonwoven special yarn, articles of apparel-knitted, articles of apparel-not-knitted and made-up textiles sectors. In the rest of the sectors, the results are a mix. Among these, EU GSP is a statistically significant determinant of wool and animal hair and manmade filaments yarn exports, while the US GSP is important for the exports of cotton yarn and woven fabrics, manmade staple fibers, carpets, impregnated fiber and knitted or crocheted fabrics. Originality/value The research contributes in two major ways. First, it estimates the effects of EU and US GSPs on the textile sector of Pakistan while controlling for the effect of tariffs. Second, the study tests joint hypotheses about the role of EU and US GSPs in the cotton and textile products exports of Pakistan.

scholarly journals Analisa Pengganda dan Distribusi Keuntungan Perdagangan di Wilayah ASEAN

2003 ◽  
Vol 3 (2) ◽  
pp. 1-24
Author(s):  
A.M. Alfian Parewangi ◽  
Bambang P.S. Brodjonegoro
Keyword(s):  
Big Five ◽  
Trade Flow ◽  
Trading Partner ◽  
Flow Data ◽  
Total Trade ◽  
Growth Simulation ◽  
Trade Model ◽  
Important Trading Partner ◽  
Asean Countries

Matrices of International Trade model shows world equilibrium and the inter-linkage among countries through trade. This approach enable us to decompose trade multiplier into direct import requirement, indirect import requirement, internal and external propagation as components of total trade multiplier. We also can run growth simulation to identify the distribution of trade gain as previously applied by Miyazawa, Hewings and other authors. Using trade flow data from 178 countries, and focusing on the big five ASEAN, we conform the most important role of Singapore and Malaysia in this region. We also find the role of United States and Japan as biggest and most important trading partner. Unsurprisingly, growth simulation shows unequal trade gain distribution between ASEAN countries and their trading partner.

scholarly journals AN ESSAY ON THE APPLICABILITY OF THE LINDER HYPOTHESIS IN DETERMINING THE PATTERNS OF THE ROMANIAN INTERNATIONAL TRADE

2016 ◽  
Vol 5 (1) ◽  
pp. 52
Author(s):  
Tania Georgia Viciu ◽  
Larisa Mihoreanu ◽  
Carmen Costea
Keyword(s):  
International Trade ◽  
Foreign Relations ◽  
Developing Economies ◽  
Trade Model ◽  
Per Capita ◽  
Linder Hypothesis ◽  
Capital Intensive ◽  
Insight Into ◽  
Shed Light

The paper tries to shed light on the effectiveness of a previously proposed and wide accepted trade model and its consistency in developing economies such as Romania. The structure and evolution of the exports and imports of Romania in the last years have indicated an increase in the intra-industry trade, and concurrently, a shift towards the commerce in predominantly capital-intensive commodities. While the Linder theorem provides useful insight into the patters of international trade formation, the hypothesis that trade is proportionate with the demand and market similarities expressed by GDP per capita, does not test out for the data available for Romania and its main economic and commercial partners.The political and economic restrictions and opportunities generated by foreign relations in the region can be attributed with the role of trade-creating forces, rather than income similarities on the markets. 

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