SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Antoniou, Fabio; Hatzipanayotou, Panos; Koundouri, Phoebe.

We construct a strategic trade model of an international duopoly, whereby production by exporting firms generates a local pollutant. Governments use environmental policies, i.e., an emissions standard or a tax, to control pollution and for rent shifting purposes. Contrary to their firm, however, governments are unable to perfectly foresee the actual level of demand, the cost of abatement and the damage caused from pollution. Under these modes of uncertainty we derive sufficient conditions under which the governments optimally choose an emissions tax over an emissions standard.

Vertical Market Structure, Commodity Exports and Trade Reform

Palavras-chave: Strategic Environmental Policy; Pollution; Choice of Policy Instrument; Uncertainty; Environmental Economics and Policy; F12; F18; Q58.

Ano: 2010

URL: http://purl.umn.edu/59375

McCorriston, Steve; Sexton, Richard J.; Sheldon, Ian M..

In the analysis of commodity markets, comparatively little attention is paid to the fact that commodity exports are intermediates that form inputs into the food processing and retail sectors in developed countries. Exporting countries correspondingly argue that access to developed country markets are determined by market structure characteristics of the downstream food sector. Given the vertical nature of these markets, they are most appropriately characterised by successive oligopoly and/or oligopsony. We explore trade policy issues facing commodity exporters, and show that the impact of tariff reform on commodity exporters is determined by the market structure characteristics of the downstream sectors.

Are Compact Cities Environmentally (and Socially) Desirable?

Palavras-chave: Vertical market structure; Trade reform; Industrial Organization; International Relations/Trade; F12; Q17.

Ano: 2005

URL: http://purl.umn.edu/24754

Gaigne, Carl; Riou, Stephane; Thisse, Jacques-Francois.

There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly as the average commuting length is reduced. However, when we account for the possible relocation of activities within and between cities in response to a higher population density, the latter may cease to hold. Because changes in population density affect land rents and wages, firms and workers re-optimize and choose new locations. We show that this may reshape the urban system in a way that...

Tipo: Working Paper

Palavras-chave: Greenhouse gas; Commuting costs; Transport costs; Cities; Environmental Economics and Policy; D61; F12; Q54; Q58; R12.

Ano: 2012

URL: http://purl.umn.edu/121692

Eastern Enlargement of the EU: A Comprehensive Welfare Assessment

Kohler, Wilhelm.

This paper takes a welfare-view on eastern enlargement of the EU, focusing on incumbent countries. Enlargement is decomposed into three elements: Single-market integration on commodity markets, budgetary costs from EU-expenditure policies, and single market- induced migration from new to present member countries. I first use an analytical model to derive a welfare equation that identifies the principle channels for incumbent country welfare gains and losses from enlargement, including product differentiation, capital accumulation, and unemployment due to search-costs. I then propose a method that allows to extend welfare results obtained from a detailed calibrated version of this model for Germany to other incumbent countries. The approach relies on model...

The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry

Palavras-chave: EU Enlargement; Economic Integration; Commercial Policy; Migration; Welfare Analysis; Computable General Equilibrium; Search Unemployment; International Relations/Trade; Political Economy; F02; F12; F13; F15; F22.

Ano: 2004

URL: http://purl.umn.edu/26377

Sanna-Randaccio, Francesca; Sestini, Roberta.

This paper analyses the impact of unilateral climate policy on firms’ international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the short-term no change in location is a likely outcome in very capital-intensive sectors, and when there is a strategy shift this takes the form of partial instead of total relocation. In the long-run total relocation becomes a feasible outcome. However we found that, when tighter mitigation measures are introduced by the larger country and unit transport cost is high,...

Do Exports Raise Productivity? Plant-level Evidence from the Colombian Agri-food Industries

Palavras-chave: Foreign Direct Investment; Carbon Leakage; Climate Policy; Relocation; Transport Costs; Welfare; Environmental Economics and Policy; F12; F23; Q58.

Ano: 2010

URL: http://purl.umn.edu/94789

Kandilov, Ivan T.; Liu, Xiangping.

Using detailed plant-level manufacturing Census data from the Colombian Agri-food industries, we show that exports raise plant-level productivity by about 15 to 20 percent. However, the estimates reveal that efficiency in plants that become persistent exporters, i.e. plants that service foreign markets at least 30 percent of the time during our sample years 1981-1991, increases about 30 percent upon their entry into foreign markets, while productivity in plants that become only occasional exporters does not change at all. Hence, the positive impact of exports on productivity for is driven by the large positive impact on persistent exporters. To identify the effect of exports on plant-level productivity we employ the Levinsohn-Petrin (2003) measure of...

The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study

Palavras-chave: Exports; Productivity; Difference-in-differences; Propensity score matching; International Development; International Relations/Trade; Production Economics; Productivity Analysis; Q17; F12; Q12; O33.

Ano: 2011

URL: http://purl.umn.edu/103632

Kheder, Sonia Ben; Zugravu, Natalia.

Although based on theoretical foundations, the pollution haven hypothesis has never been clearly proven empirically. In this study, we re-examine this hypothesis by a fresh take on both its theoretical and empirical aspects. While applying a geographic economy model on French firm-level data, we confirm the hypothesis for the global sample. Through sensitivity analysis, we validate it for Central and Eastern European countries, emerging and high-income OECD countries, but not for the major part of the Commonwealth of Independent States countries. Finally, we show that the pollution haven hypothesis is confirmed in the strongest manner for emerging economies.

Factor Content of Agricultural Trade

Palavras-chave: FDI; Environmental Regulation; Economic Geography; Pollution Haven Hypothesis; Environmental Economics and Policy; F12; F18; Q28.

Ano: 2008

URL: http://purl.umn.edu/44223

Kancs, d'Artis; Ciaian, Pavel.

Replaced with revised version of paper 08/25/09.

MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics

Palavras-chave: Factor content; Heckscher-Ohlin; Factor abundance; Agricultural trade; International Relations/Trade; F12; F14; D23; Q12; Q17.

Ano: 2008

URL: http://purl.umn.edu/44458

Decreux, Yvan; Valin, Hugo.

MIRAGE is a multi-region, multi-sector computable general equilibrium model, devoted to trade policy analysis. It incorporates imperfect competition, horizontal and vertical product differentiation, and foreign direct investment, in a sequential dynamic set-up where installed capital is assumed to be immobile. Adjustment inertia is linked to capital stock reallocation. MIRAGE draws upon a very detailed measure of trade barriers and of their evolution under given hypotheses, thanks to the MAcMap database. The most recent version, presented in this paper, offers improvements in the modelling of agriculture policy and dynamics.

Beyond the Home Market Effect: Market Size and Specialization in a Multi-Country World

Palavras-chave: Computable general equilibrium model; Trade policy; Dynamics; Foreign direct investment; Imperfect competition; International Relations/Trade; D58; F12; F13.

Ano: 2007

URL: http://purl.umn.edu/7284

Behrens, Kristian; Lamorgese, Andrea R.; Ottaviano, Gianmarco I.P.; Tabuchi, Takatoshi.

The standard two-country model of international trade with monopolistic competition predicts a more-than-proportional relationship between a country’s share of world production of a good and its share of world demand for that same good, a result known as the “home market effect”. We first show that this prediction does not generally carry through to the multi-country case, as production patterns are crucially affected by third country effects. We then derive an alternative prediction that holds whatever the number of countries considered. This new prediction takes into account important features of the real world such as comparative advantage due to cross-country technological differences and lack of factor price equalization.

Trade Complexity and Productivity

Palavras-chave: Comparative Advantage; Home Market Effect; Hub Effect; International Trade; Monopolistic Competition; Multi-country Models; International Relations/Trade; F12; R12.

Ano: 2009

URL: http://purl.umn.edu/56212

Altomonte, Carlo; Bekes, Gabor.

We exploit a panel dataset of Hungarian firms merged with product-level trade data for the period 1992-2003 to investigate the relation between firms' trading activities (importing, exporting or both) and productivity. We find important self-selection effects of the most productive firms induced by the existence of heterogeneous sunk costs of trade, for both importers and exporters. We relate these sunk costs of trade to the relationship-specific nature of the trade activities, entailing a certain degree of technological and organizational complexity. We also show that, to the extent that imports and exports are correlated within firms, failing to control for the importing activity leads to overstated average productivity premia of exporters.

The Doha Agenda and Agricultural Trade Reform: The Role of Economic Analysis

Palavras-chave: Trade Openness; Firms' Heterogeneity; Productivity; International Relations/Trade; F12; F14; L25.

Ano: 2009

URL: http://purl.umn.edu/54170

Martin, William J.; Anderson, Kym.

This paper shows that research on international agricultural trade reform can make much greater contributions to understanding than was feasible in earlier trade negotiations. Part of this is due to improvements in the basic data on production, consumption and trade associated with the development of the GTAP database and part due to the greater availability of disaggregated data on applied and bound rates of protection. Unfortunately, the framework in which we operate means that we are reduced to measuring gains that are substantially less than one percent of GDP. New developments in theory and method provide the potential for our quantitative analysis to be improved in at least six areas, including improvements in: the measurement of protection;...

Trade and Welfare Effects of State Trading Enterprises

Palavras-chave: Trade negotiations; Multilateral; Agricultural trade; Welfare evaluation; WTO; International Relations/Trade; F13; F11; F12.

Ano: 2006

URL: http://purl.umn.edu/25628

McCorriston, Steve; MacLaren, Donald.

Much of the analysis of market access issues in the Doha Round negotiations involves clearly defined instruments of government policy covering inter alia subsidies, tariffs and tariff rate quotas. State trading enterprises are also on the negotiating agenda though there is comparatively little analysis of their impact on trade and welfare despite the fact that they will be addressed in the forthcoming negotiations. This paper addresses these issues and highlights that STEs both distort trade and reduce welfare. The extent of these effects depend not only on the monopoly/monopsony status of the enterprises but the nature of the pay-off function.

Who Gains and Who Loses from China's Growth?

Palavras-chave: State trading enterprises; Trade negotiations; International Relations/Trade; F12; F13; Q17.

Ano: 2005

URL: http://purl.umn.edu/24523

Cheptea, Angela.

Emerging countries have been winning large market shares since the early 1990s. Among these, China stands out with the most remarkable performance: it almost tripled its world market share since 1994 reaching 16.1% in 2007. The present paper attempts to identify the countries that have profited the most from this increase in the size of the Chinese market. I use an econometric shift-share methodology, that permits to identify for each trade flow the share of growth arising from the capacity to target the products and markets with the highest increase in demand, and the share due exclusively to exporter’s performance.

Agricultural Trade Flows among Developing Countries: Do Regional Preferential Trade Agreements make a Difference?

Palavras-chave: China; Export Performance; Shift-Share; International Relations/Trade; F12; F15.

Ano: 2011

URL: http://purl.umn.edu/114299

Tembo, Gelson; Jayne, Thomas S..

Regional integration through trade is recognized as one way to foster economic growth and poverty reduction. This paper uses the gravity model and 11-year panel data (1996-2006) on Southern African Development Community (SADC) member countries to study Zambia’s regional agricultural trade flows and the impact of the SADC Trade Protocol (SADC-TP). Zambia’s volume of trade is significantly related to most of the standard gravity variables. The results indicate that Zambia has been largely trading below potential, especially with respect to exports. There have been improvements in Zambia’s trade flows during the SADC-TP period but only with a few countries. Further improvements will require re-examining protocol implementation and individual countries’...

Pricing to Market, (Seasonal) Cointegration and US Agricultural Exports

Palavras-chave: Southern Africa; Regional trade; Gravity analysis; Zambia; Agricultural and Food Policy; Food Security and Poverty; International Relations/Trade; Marketing; Research Methods/ Statistical Methods; C23; C51; F12; F14; F15.

Ano: 2009

URL: http://purl.umn.edu/51733

Xu, Yun; Sheldon, Ian M..

In this paper, we examine whether US exporters of agricultural commodities price to market. Specifically, we estimate the fixed-effects model of Knetter (1989; 1995), and alternative specifications based on the use of cost indices, and seasonal and vector error correction models that account for the time-series properties of the data.

Intellectual Property Rights, Product Complexity, and the Organization of Multinational Firms (Previously titled: International Sourcing, Product Complexity and Intellectual Property Rights)

Palavras-chave: Pricing to market; Cointegration; US agricultural exports; International Relations/Trade; F12; L13.

Ano: 2005

URL: http://purl.umn.edu/19377

Naghavi, Alireza; Spies, Julia; Toubal, Farid.

Current version uploaded April 2013.

Tipo: Working Paper

Palavras-chave: Sourcing Decision; Product Complexity; Intellectual Property Rights; Fractional Logit Estimation; Production Economics; F12; F23; O34.

Ano: 2011

URL: http://purl.umn.edu/119100

Certification of Origin and Brands Competition

Chambolle, Claire; Giraud-Heraud, Eric.

We analyse the competition in quality and quantity between a foreign firm and a domestic firm. The domestic firm can belong to a certification of origin, whereas its rival uses a pure brand strategy. We will show how the certification can allow the domestic firm to position itself as a high quality producer and improve the average quality of the products offered on the market. If, however, the certified firm offers the low quality good, the certification can permit it to guarantee a higher profit than that of its competitor and to improve the consumers' surplus by favouring product standardisation.

Strategic Behavior and Trade in Agricultural Commodities - Competition in World Peanut Markets

Palavras-chave: Certification of origin; Quality; International competition; Demand and Price Analysis; L13; F12; F14.

Ano: 2002

URL: http://purl.umn.edu/24976

Fletcher, Stanley M.; Nadolnyak, Denis A..

In this paper, we make an attempt to rationalize the strategic behavior of major peanut exporting and importing countries in the framework of imperfectly competitive markets with the focus on the global and inter-American peanut trade. This study is motivated by the fact that liberalizing imperfectly competitive and often distorted markets can have unorthodox effects, in particular increase the incentives to overuse certain trade policies. The results suggest that the South American peanut producers stand to benefit from the reductions in the U.S. peanut production supports but, paradoxically, preservation of a tariff may still be mutually welfare enhancing. In the broader context of global peanut trade, multi-lateral tariff reduction increases the...

Footloose Capital, Market Access, and the Geography of Regional State Aid

Palavras-chave: Trade; Peanuts; Strategic behavior; Tariffs; TRQs; Subsidies; Crop Production/Industries; International Relations/Trade; F12; F13; Q17.

Ano: 2006

URL: http://purl.umn.edu/25362

Ottaviano, Gianmarco I.P..

The global welfare implications of home market effects in trade models with imperfect competition are little understood. This paper proposes a simple model in which such implications can be easily analyzed. It shows an overall tendency of imperfectly competitive sectors to inefficiently cluster in locations that offer market access advantages. The more so the stronger the market power of firms as well as the intensity of increasing returns to scale and the lower the trade costs. As such features are likely to differ widely across sectors, those results provide theoretical ground to the promotion of regional policies that are also sectorspecific and not only region-specific as currently in the EU.