scholarly journals Impact of Multilateral Trade Liberalization on Resource Revenue

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 60 ◽  
Author(s):  
Sena Gnangnon ◽  
Jean-François Brun
Keyword(s):  
Trade Liberalization ◽  
Full Sample ◽  
Multilateral Trade ◽  
Domestic Trade ◽  
Generalized Methods Of Moments ◽  
Negative Effect ◽  
Multilateral Trade Liberalization ◽  
Methods Of Moments ◽  
The Impact ◽  
The Empirical Analysis

This paper investigates the impact of multilateral trade liberalization on resource revenue, using an unbalanced panel dataset comprising 57 countries, including both developed and developing countries, over the period 1995–2015. By means of the two-step system Generalized Methods of Moments (GMM) estimator, the empirical analysis suggests that multilateral trade liberalization exerts a negative effect on resource revenue, probably at the benefit of non-resource revenue. However, this effect over the full sample hides a positive effect of multilateral trade liberalization on resource revenue in poorest countries, and a negative effect of multilateral trade liberalization on resource revenue in non-poorest countries of the sample. Additionally, the negative effect of multilateral trade liberalization on resource revenue over the full sample appears to be dependent on the degree of domestic trade liberalization. In fact, multilateral trade liberalization genuinely induces a reducing effect on resource revenue only if countries liberalize their domestic trade regime beyond a minimum level.

Empirical Evidence on the Impact of Multilateral Trade Liberalization on Domestic Trade Policy

2017 ◽  
Vol 17 (3) ◽  
pp. 20170047 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Trade Policy ◽  
Trade Liberalization ◽  
Multilateral Trade ◽  
Domestic Trade ◽  
Trading Partners ◽  
Policy Measures ◽  
Multilateral Trade Liberalization ◽  
The Impact ◽  
Domestic Economies ◽  
Trade Wars

During recent years, the world has faced a growing anti-trade rhetoric, which has been translating in a strong appeal of domestic trade protectionist measures, situation that has been undermining trade multilateralization. The current paper examines the extent to which multilateral trade liberalization affects domestic trade policy liberalization. The analysis uses a panel dataset comprising 166 countries over the period 1995–2014. It suggests evidence that multilateral trade liberalization is strongly conducive to domestic trade policy liberalization. Moreover, as countries further develop, they experience a greater impact of multilateral trade liberalization on domestic trade policy liberalization. The take-home message of this analysis is that domestic protectionist trade policy measures would likely undermine the multilateralization of trade and prompt trading partners to react in the same way. This would ultimately result in trade wars, which would be damage for domestic economies and the world’s economic performance.

Multilateral Trade Liberalization and Terms of Trade Volatility

2018 ◽  
Vol 09 (03) ◽  
pp. 1850007 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Terms Of Trade ◽  
Multilateral Trade ◽  
The World ◽  
Current Article ◽  
Terms Of Trade Volatility ◽  
Trade Volatility ◽  
Multilateral Trade Liberalization ◽  
The Impact

The world has experienced in recent years a rising anti-trade and anti-globalization sentiment, which would likely jeopardize recent efforts by the international trade community, in particular Members of the World Trade Organization (WTO), to promote multilateral trade liberalization (MTP). The current article investigates the impact of MTP on countries’ terms of trade volatility. Results based on a large panel dataset suggest that MTP exerts a significant reducing effect on countries’ terms of trade volatility. However, this impact appears to be dependent on countries’ development level. The take-home message is that greater cooperation on trade matters, including among WTO Members would help promote multilateral trade liberalization, which would surely contribute to reducing terms of trade volatility, for the benefits of all countries, in particular developing economies.

Multilateral Trade Liberalization, Export Share in the International Trade Market and Aid for Trade

2017 ◽  
Vol 08 (03) ◽  
pp. 1750014 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
International Trade ◽  
Trade Policy ◽  
Trade Liberalization ◽  
Export Share ◽  
Multilateral Trade ◽  
Aid For Trade ◽  
Multilateral Trade Liberalization ◽  
Macroeconomic Determinants ◽  
The Impact ◽  
Trade Market

This paper adds to the existing literature on the macroeconomic determinants of Aid for Trade (AfT). It investigates the impact of both multilateral trade policy liberalization and the export share of AfT-recipient countries in global trade market on the AfT amounts that accrue to these countries. Using a panel dataset comprising 133 AfT-recipient-countries, over the period 1995–2015, the empirical analysis shows that both the impact of multilateral trade policy liberalization and of the recipient countries’ export share in the world trade market on AfT depend on recipient-countries’ level of development as well as on their domestic trade policy. Additionally, in the context of multilateral trade liberalization, donors tend to reward recipient-countries’ effort to secure a higher export share in the international trade market.

Multilateral trade liberalization and developing countries’ economic exposure to shocks

2019 ◽  
Vol 46 (2) ◽  
pp. 496-515 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Trade Liberalization ◽  
Fixed Effects ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Data Set ◽  
Content Type ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of multilateral trade policy (MTP) liberalization on developing countries’ economic exposure to shocks. Design/methodology/approach The analysis is conducted on a panel data set comprising 120 countries over the period 1996–2013 and uses the within fixed effects estimator. Findings The empirical results suggest that over the entire sample as well as sub-samples of least developed countries (LDCs) and non-LDCs, multilateral trade liberalization have a negative and significant impact on economic exposure to shocks. Interestingly, LDCs appear to experience the highest magnitude of the reducing impact of multilateral trade liberalization on countries’ economic exposure to shocks. Research limitations/implications These findings suggest that a greater cooperation among countries in the world, including among WTO members to further liberalize trade would surely contribute to reducing developing countries’ economic exposure to shocks. Practical implications The current study shows that the current backlash against trade and the consequent strong appeal for domestic trade protectionist measures would likely to undermine the likelihood of further multilateral trade liberalization. One implication of this could be a rise in countries’ economic exposure to shocks. Originality/value To the best of the author’s knowledge, this is first the study on this matter.

scholarly journals Export Product Diversification, Poverty and Tax Revenue in Developing Countries

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Product Diversification ◽  
Tax Revenue ◽  
Product Concentration ◽  
Full Sample ◽  
Generalized Methods Of Moments ◽  
Methods Of Moments ◽  
The Empirical Analysis ◽  
Export Product ◽  
Export Product Diversification

The current paper has examined the effect of both export product diversification and poverty on non-resource tax revenue in developing countries. The analysis has used an unbalanced panel dataset of 111 countries over the period 1980-2014. Based on the Blundell and Bond two-step system Generalized Methods of Moments technique, the empirical analysis has shown interesting findings. Export product concentration and poverty influence negatively non-resource tax revenue over the full sample, but this effect varies across countries in the sample. Furthermore, the effect of export product diversification on non-resource tax revenue performance depends on the level of poverty. It appears that export product diversification influences positively non-resource tax revenue performance in countries that experience lower poverty rates. From a policy perspective, these findings show that policies in favour of diversifying export product baskets and reducing poverty would contribute to enhancing non-resource tax revenue performance in developing countries.

Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the United States

2006 ◽  
Vol 96 (3) ◽  
pp. 896-914 ◽  
Author(s):  
Nuno Limão
Keyword(s):  
United States ◽  
Trade Liberalization ◽  
Trade Agreements ◽  
The United States ◽  
Preferential Trade Agreements ◽  
Detailed Data ◽  
Preferential Trade ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
Tariff Reductions

Most countries are members of preferential trade agreements (PTAs). The effect of these agreements has attracted much interest and raised the question of whether PTAs promote or slow multilateral trade liberalization, i.e., whether they are a “building block” or “stumbling block” to multilateral liberalization. Despite this long-standing concern with PTAs and the lack of theoretical consensus, there is no systematic evidence on whether they are actually a stumbling block to multilateral liberalization. We use detailed data on U.S. multilateral tariffs to provide the first systematic evidence that the direct effect of PTAs was to generate a stumbling block to its MTL. We also provide evidence of reciprocity in multilateral tariff reductions.

scholarly journals The EU's Antidumping Actions Against Chinese Products

2014 ◽  
Vol 37 (1) ◽  
pp. 152-168
Author(s):  
Yinan Liu
Keyword(s):  
Trade Liberalization ◽  
World Trade ◽  
Multilateral Trade ◽  
Trade Friction ◽  
Tariff Rates ◽  
Competition Situation ◽  
Multilateral Trade Liberalization ◽  
Present World ◽  
Foreign Competitors ◽  
Research Analysis

Abstract As the importance of tariffs in international trade has declined with the reduction of tariff rates under the GATT/WTO programs of multilateral trade liberalization, most governments prefer to protect domestic industries from foreign competitors through a variety of non-tariff barriers. Antidumping actions have recently become the world's biggest trade impediment due to their specific features and the antidumping activity of new users. Since China has become the major engine of world trade growth in recent years, it also has become the largest anti-dumping target in the world. However, the present world competition situation implies that world trade liberalization might arouse regional trade friction. The objective of this research is to identify whether China's WTO accession changed China's situation with regard to EU antidumping actions. The research analysis empirically proved that trade liberalization could partly affect the EU's antidumping actions against Chinese exports and the higher degree of industrial concentricity becomes a motive to increase the EU's antidumping activities against China.

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