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Journal of International Economics, Volume 111, March 2018
We propose a reciprocity rule for use in multilateral trade policy negotiations that is guaranteed to raise welfare of all participating countries under minimal assumptions. Our reciprocity rule requires all countries to raise the quantities of their net imports by the same proportion. We show that, starting from a Nash tariff equilibrium, a tariff reform that delivers proportional increases in all countries’ net imports will unambiguously raise welfare in each country. The structure imposed by the quantity-based reciprocity rule delivers this strong welfare result for a household welfare maximizing government without concern for general equilibrium price impacts. However, it does not generalize to the wide range of political economy welfare functions handled by Bagwell and Staiger.
Sowmya Dhanaraj, Arun Kumar Gopalaswamy and M. Suresh Babu
MSE WORKING PAPER 158/2017
Liberalization and globalization of Newly Industrialized Economies have contributed to increased integration of capital markets. This study tests whether convergence of macroeconomic variables and enhanced bilateral trade and financial flows causes greater interdependence of markets.Daily closing indices and quarterly differentials in interest, inflation,
growth rates, exchange rates, trade of goods and services, direct and portfolio investment were used. Results revealed that markets of Asia arenot immune to shocks originating in US although co-movements of macroeconomic variables do not help in explaining level of interdependence. Portfolio flows were found to be important than tradeflows in explaining market interdependence.
Interplay between Patents and Standards in the Information and Communication Technology (ICT) Sector and its Relevance to the Implementation of the WTO Agreements
ERSD-2017-08, April 2017
While standard setting organizations (SSOs), industry bodies, as well as judicial and administrative authorities have made great efforts to solve the issue of patent holdup and holdout, there is still an ongoing struggle among divergent stakeholders. Patent holdup and holdout directly impacts the innovation and dissemination of patented technology, the harmonization and implementation of standards, and international trade, which are promoted by the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and the Agreement on Technical Barriers to Trade (TBT Agreement). This working paper provides an overview of the current debate on patent holdup and holdout in the ICT sector, analyses existing policy measures and their limitations, and then highlights the relevance of the WTO to this debate.
Fair Trade Certification and Livelihoods: A Panel Data Analysis of Coffee-growing Households in India
- Agricultural and Resource Economics Review, Volume 45 Issue 3, 2017
- This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods. The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers. Furthermore, fair trade certification has a “bottom of the pyramid” effect in that the largest income gains accrue to farmers in the poorer quantiles.
- URL: https://www.cambridge.org/core/journals/agricultural-and-resource-economics-review/issue/473C2AB8DB809F3FE5307D352A45DC1A
- Courtesy: Cambridge
Lisandra Flach and Eckhard Janeba
Canadian Journal of Economics, Volume 50, Issue 1, February 2017
This paper provides theory and evidence on the links between income inequality within a destination country and the patterns of trade and export prices. The theoretical framework relates income inequality to product quality and prices using a simple demand composition effect. The model predicts that a more unequal income distribution in a destination country leads to higher average prices, though the effect is nonlinear and disappears for rich enough countries. The predictions are tested using detailed firm-level data. Controlling for income per capita, prices are systematically higher in more unequal destinations, and the strength of this effect depends on income per capita. Results are particularly important for middle-income countries and hold only for differentiated goods, and in particular for products with a high degree of vertical differentiation.
Courtesy: Wiley online library
Procedia Economics and Finance, Volume 39, (2016)
The paper presents merchandise trade between China and Africa and between India and Africa over the period from 2000 to 2014. The analysis is based on the data retrieved from the UN Comtrade Database. Both, China and India have significantly increased their trade in goods with 54 African countries since the beginning of the 21st century. In the analysed period, China’s bilateral trade with Africa increased 21 times while India’s about 13 times. The Asian countries increased their merchandise trade with Africa mainly due to the development of South-South cooperation and diplomatic relations with the region, and combining trade with development assistance. So far the winner of the Sino-Indian trade competition in Africa is China. The value of China’s total trade with Africa surpassed India’s nearly 3 times in the years 2000-2014.