An ‘Algorithmic Links with Probabilities’ Concordance for Trademarks with an Application Towards Bilateral IP Flows

Trademarks (TMs) shape the competitive landscape of markets for goods and services in all countries. As a key element of branding, they can inform consumers about the quality and content of goods and services. Yet, researchers are largely unable to conduct rigorous empirical analysis of TMs in the global economy because TM data and economic data are organised differently and cannot be analysed jointly at the industry or sector level. We propose an ‘algorithmic links with probabilities’ (ALP) approach to match TM data to economic data and enable joint analysis with these data. Specifically, we construct a NICE class‐level concordance that maps TM data into trade and industry categories forward and backward. This concordance allows researchers to analyse differences in TM usage across both economic and TM sectors. We apply this ALP concordance for TMs to characterise patterns in TM registrations across countries and industries and to investigate some key determinants of international technology flows by comparing bilateral TM registrations and bilateral patent grants. We find that international patenting and TM flows are jointly determined by trade‐related influences with significant differences in intellectual property usage across industry sectors and income levels.     

The International Monetary Fund (IMF) and the Catalytic Effect: Do IMF Agreements Improve Access of Emerging Economies to International Financial Markets?

We investigate whether countries have access to loans with better conditions after an International Monetary Fund (IMF) agreement. We conduct an empirical analysis which takes into account both the maturity and the interest rate of public and publicly guaranteed private debt. A two‐stage least squares estimation method is used to avoid selection bias problems. Panel data covering 116 countries between 1984 and 2007 and two other subsets of this panel data are used. The results indicate an improvement in access to international financial markets when an IMF programme is announced. The improvement increases as the sample consists of better‐performing countries. We conclude that, the catalytic effect may lower the level of commitment, political will and ‘ownership’ of the programme of the borrower country. On the other hand, borrower countries should consider the catalytic effect in determining the amount of financial assistance from the IMF.     

Measuring International Trade Costs

The costs of international trade have become an increasingly important item in trade negotiations (under the heading ‘trade facilitation’) and element of trade theory, but definition and measurement of trade costs remain in their infancy. This paper argues that the most conceptually appropriate measure is the gap between cost‐insurance‐freight (cif) and free‐on‐board (fob) values of traded goods, but that this must be measured on a consistent volume of trade. Such data are only available for a few countries. We calculate cif–fob gap values for the three largest trading nations that report such data (Australia, Brazil and the USA). These values provide plausible estimates of ad valorem trade costs for the three importing countries and for all countries’ exports. The estimates indicate that although trade costs have fallen over the last two decades, average trade costs now exceed the average tariff rate on imports into the USA and Australia. Country rankings by the cif–fob gap values differ significantly from those by commonly used proxies for trade costs, such as the indicators of time and cost in the World Bank’s Doing Business database, and analysis based on such proxies is likely to produce misleading results.     

Comparative Advantage and the Gains from Financial Trade: A Reappraisal

Emerging market crises have suggested that a national benefit‐cost assessment of external financial liberalisation could well prove unfavourable. This paper re‐examines the principle of comparative advantage in its application to financial trade to seek guidance on measures that might permit a fuller realisation of the potential benefits involved. Drawing a parallel with Balasubramanyam's work on the gains from FDI and international migration we distinguish between those arising in financial trade from the net transfer of capital, and those deriving from the contemporaneous exchange of financial claims or services of equivalent value. In the first interpretation a country's comparative advantage is manifested by its role in ‘intertemporal’ trade (as a borrower or lender). Our alternative emphasis is on the contractual risk‐return characteristics of the financial claims exchanged. This perspective is applied firstly to portfolio diversification gains arising from further international stock market integration. Secondly, price risk management for developing countries in international primary commodity trade is discussed. Both applications imply the need for significant institutional development but could realise approximately contemporaneous gains reminiscent both of those involved in merchandise trade and in the skills and product (or service) flows that Balasubramanyam has emphasised in relation to FDI and international migration.     

Experience,age and exporting performance in UK SMEs

We consider the determinants of SME exporting performance using a survey of internationally engaged UK SMEs. We first develop a model incorporating organisational and prior managerial learning effects. Our empirical analysis then allows us to identify separately the positive effects on exporting from the international experience of the firm and the negative effects of firm age. Positive exporting effects also result from grafted knowledge – acquired by the recruitment of management with prior international experience. Innovation also has positive exporting effects with more radical new-to-the-industry innovation most strongly linked to inter-regional exports; new-to-the-firm innovation is more strongly linked to intra-regional trade. Early internationalisation is also linked positively to the number of countries to which firms export and the intensity of their export activity. We find no evidence, however, relating early internationalisation to extra-regional exporting, suggesting that early-exporting SMEs tend be ‘born regional’ rather than ‘born global’.     

External Public Debt,Trade Linkages and Contagion During the Eurozone Crisis

Against the backdrop of the contagion literature, the paper analyses the impact of financial and trade linkages on sovereign bond spreads in the Eurozone crisis. Using quarterly data for a sample of EMU countries during the period 2000–13, we estimate fixed‐effect panel models with Driscoll and Kraay standard errors that are robust to general forms of spatial and temporal dependence. Our main results can be summarised as follows: first, we suggest that the ‘sudden stop’ of capital inflow towards the peripheral sovereign debt triggered a re‐segmentation of financial markets and economic systems along national borders, with negative implications for risk‐sharing and the efficient allocation of capital. The ‘home bias’ effect – that is the increase in the share of sovereign debt held by domestic banks – worsened the country‐specific risk because the twin crisis (sovereign and banking) began to be conceived as more closely intertwined within countries than before. Second, the structure of international trade helps to account for the geographic scope of contagion, even after controlling for macroeconomic and fiscal vulnerabilities. Finally, the ‘substitution effect’ of public debt securities of stand‐alone emerging countries has affected more the sovereign spreads in the core than in the periphery.     

Trade and Innovation in Services: Evidence from a Developing Economy

Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, even though in many developing countries services are already the largest sector in the economy and an important determinant of overall productivity growth. Using a recent firm‐level innovation survey for Chile to compare the manufacturing and ‘tradable’ services sector, this paper reveals some novel patterns. First, even though services firms have on average a much lower propensity to export than manufacturing firms, services exports are less dominated by large firms and tend to be more skill intensive than manufacturing exports. Second, services firms appear to be as innovative as – and in some cases more innovative than – manufacturing firms, in terms of both inputs and outputs of ‘technological’ innovative activity, even though services innovations more often take a ‘non‐technological’ form. Third, services exporters (like manufacturing exporters) tend to be significantly more innovative than non‐exporters, with a wider gap for innovations close to the global technological frontier. These findings suggest that the growing faith in services as a source of both trade and innovative dynamism may not be misplaced.     

Myth,Sin and Redemption in Capital Account Liberalisation

The Fund's argument that capital account liberalisation in developing countries might appeal for justification to the recognised gains from free trade in goods and services was seriously undermined by the Asian financial crisis. Perhaps the most remarkable critique in view of his pre‐eminence in the development of international trade theory and policy was a short paper by Jagdish Bhagwati in which the Fund's parallel was described as a ‘myth’. Taking up the argument he advanced, this article explores further the underlying weakness of the Fund's case. Jagdish emphasised the discrepancy between the nebulous long‐term benefits from capital flow liberalisation and the painful consequences of the crises that they had recently occasioned. The relevance of the ‘original sin’ hypothesis in determining the magnitude of these costs is therefore discussed here with attention drawn to country inability to borrow readily in their own currencies as a reason for their acute exposure to exchange rate speculation. ‘Redemption’ for borrowers is then sought through an identification of sources of genuine comparative advantage in financial trade. Net flows of finance are not required for the realisation of these gains and a final section argues that there should be no presumption that net transfers improve welfare – just as Jagdish claimed.     

The crisis-resilience of services trade

Much attention has been focused on the impact of the current crisis on goods trade; hardly any on its impact on services trade. Using new trade data from the USA, and more aggregate data from other OECD countries, the authors show that services trade is weathering the current crisis much better than goods trade. On the basis of new evidence from Indian services exporters, it is suggested that services trade is more robust relative to goods trade for three reasons: less cyclical demand; lesser dependence on external finance; and few explicitly protectionist measures so far taken in services.     

Trade openness,foreign direct investment,and finance-growth nexus in the Eurozone countries

The paper investigates causal relationships between trade openness, foreign direct investment, financial development, and economic growth in 19 Eurozone countries over the period 1988–2013. Using a panel vector error-correction model (VECM), the empirical results show that these variables are cointegrated. The study shows that a combination of opening the Eurozone countries for trade and fostering their financial and economic development have elevated inflows of foreign direct investment into the region in the long run. At the same time, increasing inflows of foreign direct investment in the short run have propelled economic growth, which in return has strengthened the role of financial development and international trade to sustain economic growth in the region through feedback effects. The empirical results have important policy implications for countries in the Eurozone, especially those who face challenges as a result of lack of confidence in their financial system and those who face a sovereign debt crisis.     

我国旅游服务贸易竞争力的国际比较

本文采取出口市场占有率指数、贸易竞争力优势指数和显示性比较优势指数,比较分析了我国与其他9个旅游服务贸易强国彼此的旅游服务贸易竞争力的状况。结果表明,我国旅游服务贸易有一定的竞争力,但与先进国家相比还有距离,需要进一步采取有效政策措施,加快提升我国旅游服务贸易的国际竞争力。     

外商直接投资与服务贸易国际竞争力——来自77个国家的经验证据

近年来,部分学者在FDI对服务贸易国际竞争力的影响效应方面进行了研究,结论却截然不同。为从一般意义上揭示两者间的关系,文章选取77个国家1980-2008年相关数据,并采取只考虑出口因素的lnRXA指数及同时考虑进出口因素的RC指数来衡量服务贸易国际竞争力,分别从总体、经济发展水平及服务业FDI限入水平三个层面进行了实证检验,结果表明:总体来看,FDI流入不会提高一国服务贸易国际竞争力,而不同经济发展水平及服务业FDI限入水平国家的FDI流入会产生不同的影响效应;除高限入水平国家外,服务业GDP不会提升服务贸易国际竞争力;服务出口及货物出口分别会对服务贸易国际竞争力产生显著的正向及负向影响效应。此外,服务贸易国际竞争力衡量指数选取的不同会造成FDI流入的影响效应产生较大差异。     

Effect of financial development on international trade in Africa: Does measure of finance matter?

Although improving international trade on the back of financial sector development is one of the preoccupations of countries in Africa, empirical literature on financial development-trade nexus has not been rigorous in examining how finance shapes trade. In this study, we examine the effect of financial development on international trade in Africa relying on data for 46 countries over the period 1980–2015. Results from our system generalized method of moments reveal differential effects of finance on trade. In particular, we notice that, private credit does not promote trade while domestic credit positively affects trade. These effects are robust to measures of trade. Thus, improving the level of private (domestic) credit dampens (amplifies) exports and trade openness. However, we also find a U-shaped relationship between private credit and trade measures suggesting that financial sector development may be detrimental (helpful) to trade for economies with low (high) level of private credit.     

A general equilibrium model of bilateral trade with strategic public investment in commercial infrastructure

We explore how public investment in commercial infrastructure affects the composition of trade between countries. To this end, we develop a model of bilateral trade in which two countries produce, consume, and trade a continuum of goods. Goods are produced by a single homogeneous factor, labor, the productivity of which depends on the quality of the country’s commercial infrastructure, broadly conceived to encompass transportation, communication, and power transmission networks; regulatory and legal institutions; and basic research and educational systems. Countries may improve the quality of their commercial infrastructures through increased public investment. However, returns on these investments are constrained by fixed ‘natural’ endowments, with the better-endowed country enjoying greater labor productivity for a given level of public investment. We begin by analyzing optimal investment in public infrastructure in one country when public investment by the trading partner is fixed. We find that, ceteris paribus, greater public investment in commercial infrastructure raises general labor productivity, leading to gains in workers’ real income. We then analyze a non-cooperative game in which both countries strategically vary public investment in commercial infrastructure. We find that, in a Nash game, the better-endowed country optimally spends more on infrastructure and produces the goods requiring the greatest labor productivity. However, in a Stackelberg game, the results are ambiguous. An empirical analysis based on recent international trade data supports our theoretical finding that investment in public infrastructure is positively related to the export of ‘high-end’ goods.     

International financial integration and real exchange rate long-run dynamics in emerging countries: Some panel evidence

The aim of this article is to provide new empirical evidence on the impact of international financial integration on the long-run Real Exchange Rate (RER) in 39 developing countries belonging to three different geographical regions (Latin America, Asia and MENA). It covers the period 1979–2004, and carries out ‘second-generation’ tests for non-stationary panels. Several factors, including international financial integration, are shown to drive the long-run RER in emerging countries. It is found that the new financial environment characterised by international financial integration leads to a depreciation of the RER in the long run. Further, RER misalignments take the form of an under-valuation in most MENA countries and an over-valuation in most Latin American and Asian countries.     

我国出口企业重要技能的识别及其排序

根据对我国东部经贸发达地区的800家外贸企业所进行的问卷调查,采用主成分分析法识别出8大类共56项重要出口技能,8大类技能包括国际金融、国际营销、国际贸易政策与规则、国际贸易物流、国际结算、国际贸易战略管理、国际贸易调研和国际贸易实务;通过计算均值和标准差,对88项出口技能按重要性进行了排序。实证研究发现,我国外贸企业认为对于成功出口最重要的技能是国际贸易政策与规则、国际结算和国际贸易调研类技能。总体上,我国外贸企业更重视基本的金融技能和战略管理技能;对于国际营销技能重要项目的整总体评价一般甚至有些偏低;同其他国家企业的情况相比,我国外贸企业对国际贸易物流和国际贸易实务技能的重视程度相对较低。     

中国国际文化贸易发展路径研究

在分析目前中国国际文化贸易的发展现状、作用的基础上,认为要加快中国国际文化贸易的发展,应从加强对文化产品翻译的投入,加强同WTO的合作,注重专业人才的培养与发展,加大创新力度,打造文化国际品牌,发挥全球华人的推广力等方面展开。     

Does Religious Similarity Matter in International Trade in Services?

Impacts of religion on trade in services were examined using gravity models with two estimation methods: Poisson pseudo‐maximum likelihood (PPML), to correct for heteroscedasticity and bias due to the exclusion of zero trade flow, and standard Heckman correction to compensate for sample selection bias. We found that religious similarity contributes to increased international trade in services by establishing ‘trust‐related institutions’. Second, religious pluralism (variety) fosters trade even more than religious similarity, suggesting that in facilitating trade, religious openness matters more than religious similarity. Third, a strong dominant religion discourages trade in services, whereas the presence of religious minorities encourages trade in services. A highly significant inverse Mill's ratio (IMR) result indicated the presence of sample selection bias, indicating that controls are necessary to prevent estimation bias. This study concluded that religion is an important determining factor for trade in services, positively affecting interpersonal trust and thereby reducing institutional distance between countries.     

THE STATISTICAL MEASUREMENT OF SERVICES: RECENT ACHIEVEMENTS AND REMAINING CHALLENGES

Services are increasingly important in the output of modern economies and are increasingly traded internationally. These patterns are observed in the generality of both ‘developed’ and ‘developing’ economies. This paper discusses the policy needs to understand the impact of services on the performance of modern economies, some measurement problems, and actions undertaken by international organisations to address these issues. It concludes that development work on services prices and volumes is fundamental to measurement of growth, and there is a need to engage more countries in the development of their service statistics with improved co‐ordination of technical assistance.     

International capital flows,returns and world financial integration

International capital flows have increased dramatically since the 1980s, with much of the increase being due to trade in equity and bond markets. Such developments are often attributed to the increased integration of world financial markets. We present a model that allows us to examine how greater integration in world financial markets affects the behavior of international capital flows and financial returns. Our model predicts that international capital flows are large (in absolute value) and very volatile during the early stages of financial integration when international asset trading is concentrated in bonds. As integration progresses and households gain access to world equity markets, the size and volatility of international bond flows decline. This is the natural outcome of greater risk sharing facilitated by increased integration. This pattern is consistent with declining volatility observed during 1975–2007 period in the G-7 countries. We also find that the equilibrium flows in bonds and stocks predicted by the model are larger than their empirical counterparts, and are largely driven by variations in equity risk premia. The model also predicts that volatility of equity and bond returns decline with integration, again consistent with the data for G-7 economies.