http://repub.eur.nl/res/concept/jel-F14/ Recent publications classified by JEL Code F14 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/22338/ 2011-01-20T00:00:00Z Empirical evidence suggests that sectoral export growth decreases exporters' survival probability, whereas this is not true for non-exporters. Models with firm heterogeneity in total factor productivity (TFP) predict the opposite. To solve this puzzle, we develop a two{factor framework where firms differ in factor intensities. Thus, export growth increases competition for the factor used intensively by exporters, eliminating some of them, while non-exporters benefit. Interacting heterogeneity in factor shares with heterogeneity in TFP we show that factor market competition reduces the growth in average TFP brought about by trade liberalization... Emami Namini, J. Facchini, G. Lopez, R.A. http://repub.eur.nl/res/pub/20785/ 2010-09-28T00:00:00Z This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI. Chang, C.L. Chen, S-P. McAleer, M.J. http://repub.eur.nl/res/pub/10425/ 2007-06-11T00:00:00Z Working with a mix of panel data on goods and services trade for the OECD for 1994-2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to the panel midpoint, we examine the role of services as inputs in manufacturing, with a particular focus on indirect exports of services through merchandise exports, and also on the related interaction between service sector openness and the overall pattern of manufacturing exports. From the cross-section, we also develop a set of stylized facts linking services to level of development and the density of intermediate linkages. We find significant and strong positive effects from increased business service openness (i.e. greater levels of imports) on industries like machinery, motor vehicles, chemicals and electric equipment, supporting the notion that off-shoring of business services may promote the competitiveness of the most skill and technology intensive industries in the OECD. Conversely, we find evidence of negative general equilibrium effects for sectors that are less service intensive. François, J.F. Kepler, J. Woerz, J. http://repub.eur.nl/res/pub/6614/ 2004-07-21T00:00:00Z This paper studies the degree of integration of China's domestic market and investigates the determinants of inter-provincial trade barriers under the rubric endogenous trade policy theory. I rely on industry-level trade flows extracted from provincial input-output tables to develop a model that analyzes the magnitude and evolution of Chinese provinces' engagement in domestic trade by computing all-inclusive indicators of trade barriers. Results underline that over the 1990s, not only was China's domestic market fragmentation along provincial borders great, but it also has become more severe at least between 1992 and 1997. The investigation of province-level and industry-level trade barriers confirms the relevance of applying the framework of endogenous protection to explain the level of impediments to trade between Chinese provinces. Findings emphasize that provinces' domestic trade protection pursues a dual objective of socioeconomic stability preservation and fiscal revenues maximization. Poncet, S. http://repub.eur.nl/res/pub/6648/ 2004-05-04T00:00:00Z This paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23 sector–25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry. François, J.F. Spinanger, D. http://repub.eur.nl/res/pub/6655/ 2004-03-23T00:00:00Z We analyze the dynamics of Chinese comparative advantage as measured by export shares and the Balassa index using 3-digit and 4-digit sectors for the period 1970 – 1997. We use novel tools to identify periods of rapid structural change and the persistence of comparative advantage, such as Galtonian regressions, probability-probability (p-p) plots, and the Harmonic Mass index, to supplement the usual descriptive statistical methods and mobility indicators associated with Markov transition matrices. Hinloopen, J. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/13011/ 2004-01-01T00:00:00Z We analyze the dynamics of Chinese comparative advantage as measured by export shares and the Balassa index using 3-digit and 4-digit sectors for the period 1970 – 1997. We use novel tools to identify periods of rapid structural change and the persistence of comparative advantage, such as Galtonian regressions, probability-probability (p-p) plots, and the Harmonic Mass index, to supplement the usual descriptive statistical methods and mobility indicators associated with Markov transition matrices. Hinloopen, J. Marrewijk, J.G.M. van http://repub.eur.nl/res/pub/6702/ 2003-07-07T00:00:00Z How much does a nation spend on resources to 'grease the wheels of trade'? To examine this question the Dutch economy is used as an exemplary case as the Netherlands are known as a nation of traders. This image was derived in the seventeenth century from successes in long distance trade, shipping and financial innovations. Despite its historical background in trading the potential to 'truck and barter' has never been adequately measured. In this paper we present a first attempt in measuring and describing the Dutch transaction sector. Measurement by means of occupational data points out that approximately 25 percent of Dutch workers are employed in transaction jobs, and 29 percent if one includes transport and distribution tasks. From a historical perspective this may seem large, but we make the case that traditional sector categories underestimate the true trading character of an economy. Furthermore, we find that in enhancing transactions cities or agglomerations remain important, suggesting that face-to-face trade remains an important element of modern transactions. In contrast to the history of immigrants in the Netherlands, the main immigrant groups of today do not fulfill a brokerage function in bringing about trade between different cultures. Dalen, H.P. van Vuuren, A.P. van http://repub.eur.nl/res/pub/6809/ 2002-06-04T00:00:00Z This paper studies the connection between trade and growth in the context of a partial and inconsistent liberalization process in a specific Eastern European country in transition towards market economy, namely, the Republic of Belarus. The analysis of the country trade patterns during the USSR period and the years since independence revealed that unlike its close neighbors (the Baltic States and Poland) Belarus did not succeed in changing the commodity or the geographical structure of its trade. It is almost a good representation of reality to say that Belarus trades with Russia. The assessment of the rationale for the closer integration with Russia and the impact of this process on Belarus growth led us to the conclusion that the integration in the form of a non-exclusive Free Trade Area and within the framework of a wider set of international connections rather than the move towards a Customs Union (and a Union State) with Russia would be a more optimal policy for Belarus. This conclusion is supported by the results of country-specific growth regressions and of a counterfactual "free trade experiment" via a small CGE model. This paper is partially based on the work by the Authors for the World Bank Global Development Network (GDN) Research Project "Explaining Growth in the CIS Countries". Bakanova, M. Vinhas de Souza, L.