The aim of this article is to conduct an analysis of the Innovate-Auto program on the welfare of the Brazilian economy. From the VAR/VEC (vector auto regressive and vector error correction) models, ...long-term elasticities are estimated, evaluating the welfare incurred by the tariff imposition. It appears that there are economies of scale in the Brazilian automotive industry, so it is reported that the net effect of tariffs is relatively small, while the effects of redistribution of tariffs are considerable. In addition, it appears that the argument that tariffs protect domestic employment is not plausible. Finally, the regime reduced imports, but did not prove effective in leveraging exports. However, the need to reassess automotive programs in Brazil from R&D and technological innovation is pointed out.
What is the most cost-efficient way to impose trade sanctions against Russia? We build a quantitative model of international trade with input–output connections. Sanctioning countries choose import ...tariffs to simultaneously maximize their income and minimize Russia’s income, with different weights placed on these objectives. We find, first, that for countries with low willingness to pay for sanctions against Russia, the most cost-efficient sanction is an approximately 20% tariff on all Russian products. Second, if countries are willing to pay at least US$0.70 for each US$1 drop in Russian welfare, an embargo on Russia’s mining and energy products is the most cost-efficient policy.
•Quantitative model of tariff competition and sanctions in global value chains.•New estimates of trade elasticity using anti-dumping tariff changes.•With low willingness to pay for sanctions against Russia, optimal sectoral tariff is 20%.•With high sanction willingness, an embargo on Russian mining and energy is optimal.
The author has analyzed theoretical and methodological foundations for international interaction between countries, namely the gravity models of J. Tinbergen and H. Linnemann.
The export ...competitiveness levels are divided into three levels: national, corporate and industrial. The author proposed to add the existing list of competitive export criteria by another - perspective. Since this criterion allows assessing the effectiveness of the national export development model, the availability and the possibility of maximizing the export potential, the effective use of available export potential.
The author has analyzed the development trends of the world ferrous metals market. In the framework of the above-mentioned analysis, the current state of domestic metallurgy was analyzed in the conditions of global market penetration and possible strategic prospects were identified.
Within the framework of gravity model improvement for ferrous metals market, the author offers to use as an indicator of the economy size - real GDP of partner countries; as the competitiveness factor - the Global Competitiveness Index of the country, and as the logistics costs factor - the average distance between the main ports of the partner countries and the index of economic freedom, which takes into account the volume of tariffs and non-tariffs barriers. Estimated model parameters allow identifying the most promising markets for the export of ferrous metals in order to be competitive in selected countries.
Learning the major players experience on the world ferrous metals market allowed concluding that diversification is one of the possible measures to overcome the economic problems of metallurgical enterprises by expanding market maneuver and increasing competitiveness.
It will provide more stable results, minimize losses in core business during crises and cyclical recessions. As competitive advantages are shifted to the new products, where the positions of Ukrainian manufacturers are shaky, it is essential to implement innovative development into the production process by adapting the experience and technologies of world leaders.
This book shines a critical light on preferential trade agreements (PTAs), revealing how the rapid spread of PTAs endangers the world trading system. Numbering by now well over 300, and rapidly ...increasing, these preferential trade agreements, many taking the form of free trade agreements, have re-created the unhappy situation of the 1930s, when world trade was undermined by discriminatory practices. Whereas this was the result of protectionism in those days, ironically it is a result of misdirected pursuit of free trade via PTAs today. The world trading system is at risk again, the author argues, and the danger is palpable. Writing with his customary wit, panache and elegance, the author documents the growth of these PTAs, the reasons for their proliferation, and their deplorable consequences which include the near-destruction of the non-discrimination which was at the heart of the postwar trade architecture and its replacement by what he has called the spaghetti bowl of a maze of preferences. The author also documents how PTAs have undermined the prospects for multilateral freeing of trade, serving as stumbling blocks, instead of building blocks, for the objective of reaching multilateral free trade. In short, the author cogently demonstrates why PTAs are “Termites in the Trading System.”
This paper examines the relationship between tariffs and the usage of non-tariff measures (NTMs) for a product-level global panel of 97 countries over the period 1996–2020. Using the most ...comprehensive NTM data set to date, I find that tariff levels or changes therein are of little relevance for implementing NTMs. Instead, smaller tariff overhangs, the difference between WTO members’ bound and applied tariff rates, emerge as a significant predictor of future NTM actions. The inverse link between tariff overhangs and NTMs is observable both (i) at the aggregate NTM level and (ii) for the large majority of different NTM subcategories.
•The usage of NTMs has been increasing across countries.•Lower tariff overhangs are a significant predictor of countries’ usage of NTMs.•Smaller tariff overhangs indicate less trade policy flexibility.•The inverse link with tariff overhangs is observable for most NTM categories.
The international trade regulatory system is a dynamic system that has been evolving throughout its history. Tension and conflict are part of the system. While calls for the abolition of the ...principal trade regulation authority, the WTO, have failed to understand this nature of the system, proponents for reforms have so far not paid sufficient attention to the evolving nature of tension and conflict. This book examines the evolving dynamics in international trade regulation from the conclusion of GATT in 1947 to the current crisis facing the WTO, from a perspective of emerging powers of developing countries with a focus of China as the latest force that demands reforms of the international trade regulatory regime. There is an extensive body of scholarship on ideological struggles, the rise of developing countries, geopolitical contest, the emerging powers (especially China), the use, misuse or abuse of trading rules and so on. There is, however, a lack of a single concise research book that synthesises these underlying causes and factors into a coherent and precise analytical theme. This book attempts to fill this research gap by building upon the existing scholarship and placing the various tensions and conflicts in a perspective that treats them as dynamic factors that have propelled a continuing process of evolution of the international trade regulation. The book will interest those researching on international trade regulation as well as development studies.
PRICES, MARKUPS, AND TRADE REFORM De Loecker, Jan; Goldberg, Pinelopi K.; Khandelwal, Amit K. ...
Econometrica,
March 2016, Letnik:
84, Številka:
2
Journal Article
Recenzirano
Odprti dostop
This paper examines how prices, markups, and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi-product firms. This approach ...does not require assumptions on the market structure or demand curves faced by firms, nor assumptions on how firms allocate their inputs across products. We exploit quantity and price information to disentangle markups from quantity-based productivity, and then compute marginal costs by dividing observed prices by the estimated markups. We use India's trade liberalization episode to examine how firms adjust these performance measures. Not surprisingly, we find that trade liberalization lowers factory-gate prices and that output tariff declines have the expected pro-competitive effects. However, the price declines are small relative to the declines in marginal costs, which fall predominantly because of the input tariff liberalization. The reason for this incomplete cost pass-through to prices is that firms offset their reductions in marginal costs by raising markups. Our results demonstrate substantial heterogeneity and variability in markups across firms and time and suggest that producers benefited relative to consumers, at least immediately after the reforms.
Popular tariffs in the telecommunications market, such as three‐part tariffs and flat‐rate plans, specify an allowance below which customers enjoy a free and high‐quality service. When they consume ...beyond the allowance, customers either need to pay for the overage (under three‐part tariffs) or receive a degraded service (under flat‐rate plans), thus experiencing an overage disutility. Some network service providers have recently begun to allow data trading among their subscribers, who can now sell their allowances or buy up to meet their needs. We study whether and how allowing user trading can enhance a service provider's profitability. Considering a monopolistic firm, we find that allowing trading among users improves system‐wide consumption efficiency and reduces overage disutility at the expense of losing overage revenue. Overall, trading can be beneficial to the firm. Particularly, the profitability of the firm is critically driven by addressing customers’ overage disutility. Moreover, allowing trading always improves social welfare and can also improve consumer surplus. Finally, on a self‐operated platform, the firm may find it not profitable to charge a transaction fee but will regulate up the trading price.
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