International trade has become increasingly dependent on the transmission of complex information, often realized via face-to-face communication. This paper provides novel evidence for the importance ...of in-person business meetings in international trade. Interactions among trade partners entail a fixed cost of trade, but at the same time they generate relationship capital, which adds bilateral specific value to the traded products. Differences in the face-to-face communication intensity of traded goods, bilateral travel costs and foreign market size determine the optimal amount of interaction between trade partners. Using U.S. state level data on international business-class air travel as a measure of in-person business meetings, I find robust evidence that the demand for business-class air travel is directly related to volume and composition of exports in differentiated products. I also find that trade flows in R&D intensive manufactures and goods facing contractual frictions are most dependent on face-to-face meetings. The econometric identification exploits the cross-state variation in bilateral exports and business-class air travelers by foreign country and time period, circumventing any spurious correlation induced by cross-country differences driving aggregate travel and trade patterns.
► Examine the importance of buyerseller interactions for international trade. ► Model an exporter’s decision to undertake business meetings based on the complexity of the good traded, the market potential of the importing country, and the cost of international travel. ► Measure buyerseller interactions using U.S. state level data on businessclass air travel, and exploit crossstate variation to identify the results. ► Find robust evidence that the demand for business meetings is directly related to the volume and composition of exports in terms of differentiated goods. ► Across sectors, R&D intensive manufactures and goods facing contractual frictions are most dependent on buyerseller interactions.
This paper investigates the role of processing trade on China’s regional CO2 emission intensity of exports (EIE). We investigate the temporal changes in regional EIEs and their determinants from 2002 ...to 2012 by using special multi-regional input-output tables that distinguish the production of processing exports from other production at the regional level. By using structural decomposition analysis, we attribute the regional EIE changes into effects of very detailed components, which show the roles of different production types and factors in EIE changes. We find that EIE increased from 2002 to 2007 but decreased from 2007 to 2012. In this regard, processing exports play a decisive role in the first period, making China's exports dirtier, but help exports be cleaner after the crisis. By factor, the input structure reflected by the inter-industry production linkage is the main reason for the different performances of EIEs in the two periods. The interregional trade in intermediate inputs has increased most inland regions' EIEs while decreasing coastal regions' EIEs.
•The EIE for most regions firstly significantly increased from 2002 to 2007, and then decreased from 2007 to 2012.•Processing exports play a key role in EIE changes. Their changes increased EIE first and then decreased it.•The effect of input structure is dominant in the total effect of processing exports, with other factors played limited roles.•The different change in the commodity structure of intermediate inputs is the main reason for different performances of EIE before and after the crisis.•The increasing interregional trade has exacerbated the regional inequality in terms of environmental cost from exports.
Doğrudan yabancı yatırımlar (DYY), yerli yatırım için fon arzını artırarak ev sahibi ülkede sermaye oluşumunu teşvik etmek için önemli bir araçtır. Teorik olarak, DYY ile ithalat arasında olumlu veya ...olumsuz bir ilişki mevcut olabilir. Dolayısıyla DYY’nin ihracat ve ithalat üzerindeki etkilerinin incelenmesi önem kazanmaktadır. Bu çalışmada, DYY ile ihracat ve ithalat arasındaki ilişki Türkiye için 1990-2020 dönemini kapsayan veriler kullanılarak Toda-Yamamoto (1995) Granger nedensellik testi ile tespit edilmiştir. Daha sonra doğrusal olmayan ARDL(NARDL) modeli çerçevesinde açıklayıcı değişkenlerin pozitif ve negatif şoklarının ayrıştırılması yoluyla bağımlı değişkene olan etkileri analiz edilmiştir. Toda-Yamamoto (1995) Granger nedensellik testi sonucunda ihracattan ve ithalattan DYY’e doğru tek yönlü Granger nedenselliğinin var olduğu tespit edilmiştir. NARDL modeli sonuçlarına göre ise ihracattaki azalışların doğrudan yabancı yatırımcıları azaltıcı etkisinin, ihracattaki artışların DYY’i artırıcı etkisinden daha yüksek olduğu görülmektedir. Benzer şekilde, ithalattaki azalışların DYY’i azaltıcı etkisinin, ithalattaki artışların DYY’i artırıcı etkisinden daha yüksek olduğu da tespit edilmiştir.
Using Chinese Customs data for the 2007–2018 period, we investigate how Chinese exporters respond to the Belt and Road Initiative (BRI). Based on a difference‐in‐differences identification strategy, ...we find that the BRI causes a substantial increase in China's total exports to BRI countries at the HS‐8 digit product level, and this export‐promoting effect is due to a significant increase in export quantity. We also find that exports increase more to countries along the Maritime Silk Road than those along the Land Silk Road. Moreover, the BRI contributes to optimising the export structure by increasing the proportion of general exports, promoting intermediate exports, improving upstreamness of exports and cutting excess capacity through international market demand. Combined with the existing studies focusing on the impacts on bilateral or global trade, our study helps develop a complete picture of the BRI effects from the perspective of the sponsor country.
•We analyze how the pace of internationalization is affected by knowledge and learning activities as firms begin to export.•We examine how types of knowledge acquisition and learning interact with ...one another.•We found evidence for significant knowledge-learning interaction effects on the pace of internationalization.•Analysis shows that the effects of congenital knowledge are moderated by the age of the firm at initial exporting activity.•Results show that the effects of vicarious learning and experiential learning are moderated by firms’ strategic intentions.
We analyze how knowledge, learning, and strategic intent shape export intensity during the period surrounding the initiation of export activities in small, independent firms. Our research is conducted on a sample of small firms started in Andalusia, a region characterized by a lower proportion of exporting firms. By examining the interplay among different forms of knowledge and learning we extend stage and international entrepreneurship models of the internationalization process. We find that in addition to the expected direct effects of learning, different forms of knowledge and learning interact to shape the pace of internationalization. Additionally, we find that pre-existing foreign knowledge influences export intensity in younger firms, but not in older ones; and, that the effects of vicarious learning and experiential learning on export intensity are conditioned by firms’ strategic intentions. We discuss the meaning of our results and suggest avenues for future study.
Efforts to liberalize world trade are increasingly focusing on strengthening the links between low-income countries' trade policies and their development strategies. However, although greater trade ...openness promises faster growth for poor countries, it also presents risks to those with small and undiversified economies. This pamphlet explores research by Fund staff into the nature and magnitude of these risks and proposes targeted policy solutions to ease adjustments and encourage developing countries to choose fuller participation in the world trading system.
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