http://repub.eur.nl/res/concept/jel-F10/ Recent publications classified by JEL Code F10 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/23952/ 2010-01-01T00:00:00Z This article examines the trade policy response of Latin American governments to the rapid growth of Chinese and Indian exports in world markets. To explain more protection in sectors where a large share of imports originates in China and India, the "protection for sale" model is extended to allow for region-specific degrees of substitutability between domestic and imported varieties of a good. The results suggest that more protection toward Chinese and Indian goods can be explained by the higher substitutability of Chinese and Indian goods with domestic varieties. The data support the model, which performs better than the original protection for sale framework in explaining Latin America's structure of protection. JEL classification numbers: F10, F11, F13 Facchini, G. Olarreaga, M Baptista, J.M.P. da Silva Willmann, G http://repub.eur.nl/res/pub/18717/ 2009-08-01T00:00:00Z The paper puts the collapse of the world trade volume in 2009 into two historic perspectives. First, the paper analyses 18 major post-1980 / pre-2007 financial crises and uses these observations as a basis to critically evaluate presently available projections for world trade. Second, the paper takes into account the developments in the world's trade volume and openness since 1880. Next to the direct impact of the present financial crisis on trade, potential second order effects on economic growth and international political relations are identified. Bergeijk, P.A.G. van http://repub.eur.nl/res/pub/18287/ 2009-01-01T00:00:00Z The paper puts the collapse of the world trade volume in 2009 into two historic perspectives. First, the paper analyses 18 major post-1980/pre-2007 financial crises and uses these observations as a basis to critically evaluate presently available projections for world trade. Second, the paper takes into account the developments in the world's trade volume and openness since 1880. Next to the direct impact of the present financial crisis on trade, potential second order effects on economic growth and international political relations are identified. Bergeijk, P.A.G. van http://repub.eur.nl/res/pub/12980/ 2008-05-01T00:00:00Z Most FDI takes place between the developed countries, which suggests that the market-seeking motive is important for understanding FDI. However, given the stylized fact that trade barriers (e.g. transportation costs and financial barriers) have declined over the past 20 years, models that aim to explain market-seeking FDI tend to predict a decline in FDI. Neary (2008) offers two explanations for this puzzle: (1) the export platform motive (where firms gain access to an integrated market by investing in one of the “integrated” countries); (2) Neary’s (2007) GOLE model, which explains cross-border mergers and acquisitions (this model is of interest since most FDI comes in the form of M&As). By using a gravity framework, where we also deal with the “zero gravity problem”, we confirm the predictions of the GOLE model. Brakman, S. Garita, G.A. Garretsen, J.H. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/32186/ 2008-04-01T00:00:00Z Most FDI takes place between the developed countries, which suggests that the market-seeking motive is important for understanding FDI. However, given the stylized fact that trade barriers (e.g. transportation costs and financial barriers) have declined over the past 20 years, models that aim to explain market-seeking FDI tend to predict a decline in FDI. Neary (2008) offers two explanations for this puzzle: (1) the export platform motive (where firms gain access to an integrated market by investing in one of the “integrated” countries); (2) Neary’s (2007) GOLE model, which explains cross-border mergers and acquisitions (this model is of interest since most FDI comes in the form of M&As). By using a gravity framework, where we also deal with the “zero gravity problem”, we confirm the predictions of the GOLE model. Brakman, S. Garita, G.A. Garretsen, J.H. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/11079/ 2008-01-25T00:00:00Z By combining two large data sets (on international trade flows and cross-border mergers and acquisitions – M&As), we test two implications of Neary’s (2003, 2007) general oligopolistic equilibrium (GOLE) model (incorporating strategic interaction between firms in a general equilibrium setting). In terms of economic importance, the dominant merger wave variable is a positive global-all effect, indicating that M&A waves are an economy-wide, global phenomenon. Country-specific merger wave variables are of secundary importance. In accordance with the bilateral GOLE model as specified by Neary, we find strong evidence that acquiring firms operate in strong sectors. However, we also find (less pronounced) evidence that target firms are active in strong, not weak sectors, which we label the ‘target paradox’. We show how a multi-country extension of the GOLE model that allows for firm heterogeneity can explain this target paradox. Brakman, S. Garretsen, J.H. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/6694/ 2004-01-22T00:00:00Z We examine the role of political factors in Mexico’s antidumping regime, considering both the characteristics of target countries subject to antidumping duties and industry-specific factors for sectors receiving protection. Our results are broadly consistent with the recent theoretical literature on endogenous protection, in terms of both the political costs and the political benefits of providing protection. They are also in line with the existing empirical literature on antidumping, which is focused primarily on the experience of the U.S. and the EU. Our results also suggest that WTO Membership of trading partners increases the political costs of supplying administered protection. François, J.F. http://repub.eur.nl/res/pub/6705/ 2003-06-18T00:00:00Z Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore the evidence for Mexico, one of the main "new" antidumping using countries. Injury determination is also critica! in Mexico's antidumping policy, as a majority of unsuccessful complaints have been rejected because of negative injury findings rather than negative findings of dumping. Working with data from 1987 through 2000, we provide evidence for a relationship between macro-economic factors and antidumping complaints, including current account and exchange rate movements, and both local and global general macroeconomic conditions. François, J.F. Niels, G.T. http://repub.eur.nl/res/pub/13025/ 2002-01-01T00:00:00Z International trade & the world economy gives a succinct, yet fairly complete, up-to-date, and thorough introduction to the forces underlying all 'real' international economics, such as trade and investment flows, imperfect competition, trade policy, multinationals, economic integration, etc. The book's target audience includes first and second year university and college students in economics, management and business with a working knowledge of microeconomics and macroeconomics. Elementary comprehension of mathematics for economists (simple functions and differentiation) is recommended. The approach is based on the student's active participation using the companion Study Guide and the website. These provide, for example, empirical questions to test theories and simulation questions to get a better feel for the structure of economic models by performing small, user friendly computer simulations and interpreting the results. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/10923/ 2001-01-01T00:00:00Z A dynamic overlapping-generations model of a semi-small open economy with monopolistic competition in the goods market is constructed. A tariff increase reduces real output and employment and improves the terms of trade, both in the impact period and in the new steady state. The tariff shock has significant intergenerational distribution effects which are different for creditor and debtor nations. Bond policy neutralizes the intergenerational inequities and allows the computation of first-best and second-best optimal tariff rates. The first-best tariff exploits national market power, but the second- best tariff contains a correction to account for the existence of a potentially suboptimal product subsidy. Bettendorf, L.J.H. Heijdra, B.J. http://repub.eur.nl/res/pub/10941/ 2001-01-01T00:00:00Z A dynamic overlapping-generations model of a small open economy with monopolistic competition in the goods market is constructed. Lump-sum tax-financed product subsidization boosts output and employment both in the impact period and in the new steady state. The real exchange rate depreciates in the long run but the impact effect is ambiguous. If the labour supply effect is weak and the economy is not very open, the exchange rate appreciates at impact. The policy has important intergenerational distribution effects. Old existing generations gain more than younger existing generations as well as future generations. The bond policy which neutralizes the intergenerational inequities allows the computation of an optimal product subsidy which depends positively on the extent of the domestic scale economies and negatively on the degree of openness of the economy. Bettendorf, L.J.H. Heijdra, B.J. http://repub.eur.nl/res/pub/13033/ 1999-01-01T00:00:00Z In dit boek komen veel economische onderwerpen aan de orde, welke dikwijls ook te pas en te onpas in de politiek gebruikt worden. De mondiale economie stoelt inmmers op lokale en nationale aspecten. In 157 bladzijden wordt in tien hoofdstukken getracht de lezer inzicht te geven in actuele economische onderwerpen. Het boek wil dan ook informatie verschaffen om beter en met verstand van zaken over economie te kunnen praten. Enkele van de behandelde onderwerpen: inleiding tot de mondiale economie (ook in Nederland met de internationale handel). De handelsvoordelen van Nederland. Protectie met de moderne ontwikkelingen in deze. Beurs en geld, de EMU en de economische groei. Aan het eind van ieder hoofstuk worden conclusies getrokken, waardoor de leesbaarheid wordt vergroot. Ook de index vergemakkelijkt het opzoeken van de te raadplegen tekst. In kort bestek kan dit boek niet al te diep op de onderwerpen ingaan. Maar voor de meer geïnteresseerden treft men achterin suggesties aan voor verdere studie. Het boek is gestoken in een meerkleuren-omslag. Zeer lezenswaardig. Brakman, S. Marrewijk, J.G.M. van Prins, C. http://repub.eur.nl/res/pub/13037/ 1999-01-01T00:00:00Z In welke economische activiteit is Nederland relatief sterk? Om dit te meten is het gebruikelijk om de export van Nederlandse producten of bedrijfstakken te vergelijken met de export van deze producten van andere landen. Daarbij is het mogelijk om de wereld als geheel als referentiekader te nemen, maar daaraan kleeft een aantal bezwaren. Zo kunnen landen met een totaal verschillend ontwikkelingsniveau worden vergeleken (bijvoorbeeld Nederland en Kenia). Bovendien kunnen tal van handelsrestricties een storende invloed hebben op de waargenomen exportstromen (zowel Nederland als Kenia exporteren bijvoorbeeld bloemen naar Duitsland; toegang tot de Duitse markt is voor Nederland als lid van de Europese Unie echter veel makkelijker). Hinloopen, J. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/13041/ 1998-01-01T00:00:00Z International transfers have attracted the attention of economists ever since the famous debate between Keynes and Ohlin on German reparation payments after World War I. Today the subject is of even greater importance with billions of dollars flowing between nations as unilateral transfers. However the emphasis has shifted from balance-of-payments issues to the welfare consequences following a transfer, and in particular the welfare issues arising from aid to developing countries. In The Economics of International Transfers Professors Brakman and van Marrewijk present a complete overview of transfers (including the history of transfers and current transfer flows), and their own unified framework in which they present important and original research. Subjects considered include welfare effects, distortions, third parties, rent-seeking, the ‘trade or aid’ discussion, multi-lateral agencies, tied aid and imperfect competition. Brakman, S. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/13074/ 1996-01-01T00:00:00Z De voordelen van vrijhandel zijn zeer beperkt, al-thans als we de empirische schattingen van vooraanstaande economen en internationale organisaties mogen geloven. Zo worden de voordelen van liberalisatie voor de Europese Unie geraamd op ongeveer 0,5% van het bnp 1. De door het IMF geschatte positieve effecten van de GATT Uruguay Ronde zijn in dit verband, met een nog altijd schamele 1% van het wereld-bnp, een uitschieter. Hoe komt het toch dat dit onderwerp zoveel aandacht van economen, politici en de media vraagt terwijl de schattingen voor de welvaartsverbetering van handelsliberalisatie zo laag zijn? Een van de mogelijke antwoorden wordt gegeven door de Amerikaanse econoom Paul Romer: angst voor het onbekende. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/13091/ 1993-01-01T00:00:00Z Using an approach where the probability of trade is a function of the volume of trade, we show that uncertainty in international trade may force a small economy to specialize in the production of the good in which it has a comparative disadvantage. This reversal in the pattern of incomplete specialization in production is not reflected in the trade pattern. The first-best policy responce in the presence of endogenous uncertainty is not the imposition of tariffs or subsidies but a reduction of trade uncertainty itself, possibly through clear commitment to free trade or GATT rules and procedures. Marrewijk, J.G.M. van Bergeijk, P.A.G. van http://repub.eur.nl/res/pub/13105/ 1992-09-01T00:00:00Z In a small open economy it is optimal to first maximize national income and second choose the best consumption point. The same two-step procedure under (quantitative) uncertainty is suboptimal if one of the goods is used as numéraire. Optimality is restored however, if nominal prices are deflated by the exact price index. Hence there is equivalence between the appropriate two-step procedure and the introduction of a stock market under uncertainty (Diamond 1967) under ideal circumstances. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/13115/ 1990-03-01T00:00:00Z A small trading economy which produces and trades an arbitrary, but finite, number of goods and faces given terms of trade in combination with an uncertain volume of trade is studied. An exogenous probability of trade disruption forces both public and private decision-makers to specialize to a lesser extent in accordance with their comparative advantage. A unique optimal point of production exists for each probability of trade disruption. A private competitive economy will not produce at this point: it produces too much of the good with a comparative advantage. Marrewijk, J.G.M. van Bergeijk, P.A.G. van