Quality Measures in Food Trade: The Indian Experience

World trade in food has expanded significantly over the years and traditional tariff barriers have reduced with increasing commitments under the WTO. The industrialised countries potentially offer higher returns to food exporters from developing countries, but also pose a greater challenge in market access through stringent safety and quality standards. This paper analyses how this has impacted the Indian marine export industry, and the industry response to this challenge. The large firms are upgrading to signal quality in the OECD markets, while the small firms remain below the quality mark and are catering to other developing country markets where standards are not as stringent. Quality certification has thus become the basis of product differentiation and affected the pattern of trade. On the institutional front, a significant positive change is evident, with the Indian government taking measures to raise safety standards in the domestic food processing sector and increasing the credibility of its export certification agency abroad. There are also cooperative initiatives to improve testing facilities and promote equivalence of certification with OECD countries. The two‐pronged approach of investment in upgrading the food processing industry and promoting international partnership in certification with destination markets offers a good model to address the continuous quality challenge facing other food exporting developing countries.     

Dispute Settlement at the WTO: Impacts of a No Deal in the US‐Brazil Cotton Dispute

On the day before Brazil was to start imposing retaliatory sanctions against the United States in the WTO dispute settlement case regarding unfair domestic and export upland cotton subsidies, the parties have reached a preliminary concession aimed at settling this eight‐year‐long trade dispute. In this paper, we explore the economywide impacts of a no deal with specific emphasis on intellectual property retaliation in a computable general equilibrium framework. As awarded by a WTO dispute settlement panel, Brazil would have been entitled to $591 million in retaliatory sanctions in goods sectors and $238 million in intellectual property sanctions. We find that retaliation by Brazil would have led to welfare gains for all countries except the United States. Most importantly, however, had Brazil not been allowed to retaliate in the form of suspension of intellectual property rights, the impact of trade retaliation alone would have been negative for both Brazil and the United States, a case of shooting oneself in the foot to shoot at the other person's foot.     

Trade openness,tax reform and tax revenue in developing countries

This article investigates empirically whether the effect of tax reform (involving the progressive replacement of trade tax revenue with domestic tax revenue) in developing countries' tax revenue performance (measured by tax revenue‐to‐GDP ratio) depends on the degree of trade openness of these countries. The analysis has used an unbalanced panel data set of 95 developing countries over the period 1981–2015 and the two‐system GMM approach. Results suggest that tax reform is positively and significantly associated with tax revenue performance in developing countries, with the magnitude of this positive effect increasing as countries experience a higher development level. Additionally, and more importantly, countries that further open up their economies to international trade enjoy a higher positive effect of tax reform on tax revenue than countries that experience a lower degree of trade openness. Therefore, these findings should help dissipate the concerns of policymakers in developing countries that greater openness to international trade would further erode their tax revenue, including by lowering their international trade tax revenue. In fact, the implementation of an appropriate tax reform in the context of greater trade openness would generate higher tax revenue, while concurrently allowing countries to reap the well‐known benefits of international trade.     

安全标准与农产品贸易:中国与主要贸易伙伴的实证研究

国际农产品贸易引起争端的安全标准的大量存在,表明市场自身力量不足以纠正失灵,农产品市场的独有特征构成安全标准广泛实施的理由。文章测算了十年间一项具体农产品安全标准—黄曲霉素最大允许含量标准,对一组发达国家和一组包括中国在内的亚洲发展中国家的水果/坚果类产品的贸易影响程度。政策模拟结果显示,进口国协调采用国际标准将产生更大的贸易促进效果。     

Agricultural Trade Reform and the Doha Development Agenda

This paper examines the extent to which various regions, and the world as a whole, could gain from multilateral trade reform over the next decade. The World Bank's Linkage model of the global economy is employed to examine the impact first of current trade barriers and agricultural subsidies, and then of possible outcomes from the WTO's Doha Round. The results suggest moving to free global merchandise trade would boost real incomes in sub‐Saharan Africa and Southeast Asia (and in Cairns Group countries) proportionately more than in other developing countries or high‐income countries. Real returns to farmland and unskilled labour, and real net farm incomes, would rise substantially in those developing‐country regions, thereby helping to reduce poverty. A Doha partial liberalisation could take the world some way towards those desirable outcomes, but more so the more agricultural subsidies are disciplined and applied tariffs are cut, and the more not just high‐income but also developing countries choose to engage in the process of reform.     

Understanding Developing Country Strategic Responses to the Enhancement of Food Safety Standards

This paper explores the competing concepts of ‘standards as barriers’ and ‘standards as catalysts’ in the context of food safety standards in international trade in agricultural and food products. Through a review of existing evidence of the impact of food safety standards on developing country exports of agricultural and food products and the results of a series of country‐ and product‐specific case studies, it is suggested that food safety standards can act as both a barrier to trade and the basis of competitive positioning for developing countries in international markets. This suggests that broad conclusions about the trade effects of food safety standards on developing countries are problematic, rather the level and ways in which agricultural and food exports are impacted can be product, country, standard and even firm‐specific.     

Thick and Thin Borders in the European Union: How Deep Internal Integration is Within Countries,and How Shallow Between Them

The existence of large border effects is one of the main puzzles of international macroeconomics. The seminal paper by McCallum found that trade between any two Canadian provinces was (on average) 22 times greater than trade between any Canadian province and any US state. Although various authors have estimated internal and external border effects for the whole European Union and some specific European countries, none has done so in the manner that McCallum's seminal paper, stymied by lack of data on region‐to‐region international trade flows. This study uses a novel data set that captures intra and international truck shipments between Spanish regions and regions in seven European countries during the period 2004–11. It computes internal and external border effects, offering novel results for aggregate flows and the importing countries, and estimates several specifications of the gravity equation, so as to tackle such issues as the multilateral resistance term, heteroscedasticity, and zero flows and non‐linear relation between trade and distance. The paper also adds a detailed analysis on the external border effect for each Spanish exporting region and each of the seven European countries considered. By means of this analysis, we shed new light on the relative integration between regions of these seven countries and Spanish exporting regions. Finally, we conduct an extrapolation exercise, computing the ‘trade potentials’ that would be expected in a fully integrated Europe and estimating how long full integration would take to achieve between each Spanish exporting region and each European importing country. To this regard, two alternative scenarios are considered: one using the growth rates of the Spanish exports before the crisis (2001–08) and other considering the post‐crisis growth rates (2011–13).     

Improving national cultural indices using a longitudinal meta-analysis of Hofstede's dimensions

This meta-analysis offers an updated set of national cultural scores along the dimensions of Hofstede's cultural framework. The meta-analytic national cultural indices have two advantages. First, they are based on a larger and more representative sample than that used in Hofstede's or any other cross-cultural comparison study. The data come from 451 empirical studies representing over 2000 samples comprising over half a million individuals from 49 countries and regions. Second, cultural change is addressed by offering separate sets of indices for different decades. This would be helpful in longitudinal studies of the interplay between culture and other phenomena. The meta-analytic indices are validated against a set of external criteria.     

Putting industries into the Eaton–Kortum model

The article introduces the industry dimension into the Eaton-Kortum model of trade. Industries are linked with each other by domestic and international trade in intermediate goods. The model is parametrized using data for eight industries in 1989. It is used to perform several counterfactual simulations that are relevant to today's policy debates. First, the model is used to study the effects of the US–EU trade wars. It is found that trade wars have a greater negative effect on countries with large initial net export positions. It is also found that some trade war scenarios are more beneficial to the US while others to the EU. Second, the model is used to study the effects of trade barrier reductions between the high-income and middle-income countries. The results show that this trade liberalization tends to reinforce the pattern of trade according to technological comparative advantages. The results also show which industries should be targeted for barrier reductions depending on policy goals. The third set of simulations investigates spillovers from the technological growth in the US machinery industry. The results show how geography, technology, and industry links affect the propagation of this growth across countries and industries.     

How Do Differing Standards Increase Trade Costs? The Case of Pallets

The pallet is a platform used for storing, handling and transporting products. There are hundreds of different pallet sizes around the world. The case of pallets is examined to illustrate the impact of multiplicity of standards on trade costs. We select this case because pallets are used all over the world, pallet standards are not too sophisticated, and data on pallet standards and costs are to some extent available. The paper examines why there are so many different pallet standards, the associated trade costs and the reasons why countries have not harmonised pallet sizes to eliminate such costs. It then presents options for exporters to mitigate the adverse effects of standards multiplicity while complying with destination markets’ standard requirements. The range of options is limited for exporters from less developed countries because of the lack of rental and exchange pallet markets. To mitigate the costs of this multiplicity of standards, the international community's strategy should focus on developing awareness of the cost of multiplicity of standards and actively supporting standardisation.     

Multilateral,Regional and Bilateral Trade‐Policy Options for the United States and Japan

We have used the Michigan Model of World Production and Trade to simulate the economic effects on the United States, Japan, and other major trading countries/regions of the Doha Round of WTO multilateral trade negotiations and a variety of regional/bilateral free trade agreements (FTAs) involving the United States and Japan. We estimate that an assumed reduction of post‐Uruguay Round tariffs and other barriers on agricultural and industrial products and services by 33 per cent in the Doha Round would increase world welfare by $686.4 billion, with gains of $164.0 billion for the United States, $132.6 billion for Japan, and significant gains for all other industrialised and developing countries/regions. If there were global free trade with all post‐Uruguay Round trade barriers completely removed, world welfare would increase by $2.1 trillion, with gains of $497.0 billion (5.5 per cent of GNP) for the United States and $401.9 billion (6.2 per cent of GNP) for Japan. Regional agreements such as an APEC FTA, an ASEAN Plus 3 FTA, and a Western Hemisphere FTA would increase global and member country welfare but much less so than the Doha multilateral trade round would. Separate bilateral FTAs involving Japan with Singapore, Mexico, Chile and Korea, and the United States with Chile, Singapore and Korea would have positive, though generally small, welfare effects on the partner countries, but potentially disruptive sectoral employment shifts in some countries. There would be trade diversion and detrimental welfare effects on some non‐member countries for both the regional and bilateral FTAs analysed. The welfare gains from multilateral trade liberalisation are therefore considerably greater than the gains from preferential trading arrangements and more uniformly positive for all countries.     

Are There Efficiency Gains from the Removal of Natural Resource Export Restrictions? Evidence from British Columbia

Log export bans (LEBs) are a popular development tool utilised by developing nations with sizable endowments of timber; however, the actual impact of these policies is debatable. British Columbia has a developed forestry sector and still maintains a LEB. This trade restriction continually creates conflicts with Canada's international trade partners, including the United States. This paper examines the efficiency implications of a hypothetical removal of roundwood export restrictions in British Columbia using roundwood price and quantity data from 1995 to 2008. A time‐series econometric approach is utilised to determine supply and demand elasticities for British Columbia's roundwood. Empirical results from a vector error correction model suggest that a removal of export restrictions will generate an overall increase of approximately $347.91 million US dollars per year to British Columbia's forest economy.     

The International Reorganisation of Auto Production

This paper aims at assessing whether and how the rise of new countries as important suppliers to the world's leading car producers has changed the structure of the international organisation of auto production over the last decade or has simply caused a shift in the geography of suppliers. By using network analysis, we show that emerging economies caused a structural change in the international organisation of auto production, but their roles are largely peripheral, while the world's leading producers now act as the core of a more hierarchical international division of labour than a decade ago.     

The arrival of the Euro and its implications for Asia

The third stage of the European Economic and Monetary Union (EMU) commenced on January 1, 1999 with the launch of the European single currency, the euro. The first round of participants comprises 11 of the 15 European Union (EU) nations, dubbed “Euroland.” The potential implications of EMU for Asia are immense. The euro's emergence as an international currency and its impact on Asia can be assessed in 3 different domains: (1) as a medium of exchange for Europe's trade with Asia; (2) as a store of value in stocks and bonds in world capital markets; and (3) as part of official foreign exchange reserves of Asian central banks. Our analysis suggests that there is potential for the euro to play a bigger role in EU-Asia trade links, which will be underpinned by the collective importance of Euroland as a much-enlarged trading and investment partner for Asia. However, in the short term at least, Asian equity markets are unlikely to benefit from significant inflows of capital from the EU as the former have been decimated by the region's financial crisis. As for Asian bond markets, rapid deterioration of sovereign ratings of countries in the region over the past 12 months would make it difficult for Asian companies to raise funds through euro-denominated debt instruments. As for official foreign exchange reserves, the bulk of Asian reserves is currently held in US dollar assets. Judging from Asian trade and debt figures, it seems unlikely that the euro would challenge the US dollar as a reserve currency any time in the near future. Nevertheless, in the longer term, the euro's introduction could make it easier for Asian central banks to diversify their reserves from the greenback to the euro. The internationalization of the euro is likely to happen only gradually, whether in terms of international trade denomination and settlement, denominating international financial assets, or as a reserve currency. Since the magnitude of shock that the single European currency would bring to the international monetary system is still unknown, only very tentative conclusions for the impact on Asian countries can be drawn at this point in time.     

A Cross Cultural Analysis of the Geographical Knowledge of U.S., Irish,Israeli, Mexican,and South Korean Business School Students

ABSTRACT

Geographical knowledge about foreign countries is considered to be a significant factor related to the successful marketing of goods and services in international markets-a not insignificant conclusion by experts given the sizable trade deficits run up by the United States in 2000 ($365 billion), 2001 ($346 billion), and 2002 ($435 billion).

Unfortunately, previous research has concluded that U.S. business school students-tomorrow's executives who will make decisions that will impact their firms' international operations-have inadequate levels of international geographical knowledge.

This article compares the geographical knowledge of U.S. business school students to that of business school students in four countries: Ireland, Israel, Mexico, and South Korea. The sub-par performance exhibited by the U.S. students and the impact of six independent variables on global geographical knowledge are used to develop a number of pedagogical conclusions designed to enhance the international geographical knowledge of U.S. business school students and students in foreign business schools and overcome the antipathy toward this subject matter that apparently exists within business schools and their various external constituencies.     

国外实施技术性贸易壁垒的新动向及我国的应对措施

技术性贸易壁垒(TBT)作为一种无形的非关税壁垒,正日益成为国际贸易中最棘手、最难应付的贸易障碍之一,并正在对我国的出口贸易产生显著的影响。而技术标准作为发达国家实施TBT的重要手段之一,已成为当今国际经济竞争的制高点。技术标准不仅是保护国内市场的标志,而且是争夺国外市场、提高国家竞争力的有力手段,是国家利益和价值观念的载体。近年来,发达国家为了保护自身利益、限制他国发展,纷纷制定和实施标准化战略。本文首先分析了现阶段美国、日本和欧盟的主要技术标准壁垒及其标准化战略的新动向,在此基础上,从宏观和微观两个层面提出了我国应对国外技术标准壁垒的战略措施。     

浅析国际劳工标准对我国对外贸易的影响

我国拥有丰富的劳动力资源,长期以来主要大量出口劳动密集型产品,因而,不可避免地被要求接受有关国际劳工标准的审核。国际劳工标准与国际贸易挂钩己经演变成为一种无法改变的趋势。这种趋势,一方面使得国际劳工标准在我国逐步推广,另一方面也给我国的对外贸易带来正反两个方面的重大影响。本文重点分析国际劳工标准与国际贸易挂钩的趋势给我国对外贸易带来的正反两个方面的影响,提出企业和政府应对此趋势的对策。同时,希望对相关的研究提供参考。     

The role of intermediate demand and technology for international competitiveness of the KIBS sector: evidence from European Union countries

In this paper, it is tested whether intermediate consumption of knowledge-intensive business services (KIBS) in the economy and technology advancement in the KIBS sector (measured by R&D expenditures) affect the international competitiveness of a country's KIBS sector. First, the definition of KIBS trade, in light of the available data from the balance of payments statistics, is presented. Then, using a panel data set from the EU countries over the period 2000–2009, a panel cointegration approach to estimating the model is adopted. The empirical study shows that among the old EU countries only those with high income are competitive in KIBS exports. Estimation results demonstrate that their competitiveness in KIBS exports is positively determined by domestic and imported KIBS intensity in the economy, as well as by the KIBS sector's technology advancement. The new EU countries usually were not competitive in KIBS exports, and those which were successful in this field seem to have derived their success mainly from international outsourcing rather than from building their own capacities. Their competitiveness in KIBS exports was positively determined by the KIBS sector's endowment in human capital, or via domestic KIBS intensity in the economy together with lower labour costs.     

了解国际市场准入规则扩大机电产品出口

近年来我国机电产品出口面临的技术壁垒日益突出。许多发达国家对其进口产品制定了许多质量和安全标准,我国出口产品必须通过相关的国际标准的检测认证,才能突破发达国家所设置的技术壁垒, 被市场接受成为合法销售。产品获得国际标准认证成为我国企业进入国际市场的必由之路。     

The role of venture capital in financing small business

Venture capital is a primary and unique source of funding for small firms because these firms (with sales and/or assets under $5 million) have very limited access to traditional capital markets. Venture capital is a substitute, but not a perfect substitute, for trade credit, bank credit, and other forms of financing for small firms. Small businesses are not likely to be successful in attracting venture capital unless the firms have the potential to provide extraordinary returns to the venture capitalist.This study provides an analysis of a survey of venture capital firms that participate in small business financing. The survey participants are venture capital firms that were 1986 members of the National Venture Capital Association (NVCA), the largest venture capital association in the United States.The average size of the venture capital firms responding to the survey is $92 million dollars in assets, with a range from $600 thousand to $500 million. Twenty-three percent of the respondents have total assets below $20 million, and 27% have assets above $100 million.The venture capitalists' investment (assets held) in small firms delineate the supply of venture capital to small firms. Sixty-three of the 92 venture capitalists' have more than 70% of their assets invested in small firms.The venture capitalists were asked how their investment plans might change with changes in the tax law that were projected in the spring of 1986. Fifty-four percent expected to increase their investments in small firms, and 38% did not expect to change these activities.Venture capitalists are very selective in allocating their resources. The average number of annual requests that a venture capitalist receives is 652, and the median number is 500: only 11.5 of the respondents receive more than 1,000 proposals per year.