Country size and the trade effects of the euro

This paper investigates whether small countries gain relatively more than large countries from an ‘expansion’ of their market through the creation of a single currency. The introduction of the euro offers a particularly valuable source to test this hypothesis, which we motivate using the theoretical model by Casella of the year 1996. Our results from a panel data analysis, using both aggregate and disaggregated trade data, point to a statistically significant but quantitatively moderate small country bonus. On average, the euro has led to an improvement of the small euro area’s relative export performance by 3–9%.

The effects of comparative product testing on industry and trade: Findings of a research project

According to findings presented in this paper, comparative product tests substantially influence the market behaviour of industrial and trade businesses in the Federal Republic of Germany. Moreover, they most likely have an impact on market structures and market performance as well. This points to the enormous potential of product testing as an instrument of consumer and anti-trust policies. There is some evidence, however, that product testing may also produce effects which are less desirable from a consumer or anti-trust point of view. Yet, these unwanted side effects of product testing could largely be prevented by observing a number of measures, aimed at improving product test procedures. It is therefore no doubt feasible to improve the degree to which product testing meets the goals of consumer and anti-trust policy.

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Wirkungen vergleichender Warentests in Industrie und Handel — Ergebnisse eines Forschungsprojekts

Zusammenfassung Vergleichende Warentests haben nach den im vorliegenden Beitrag präsentierten Untersuchungsergebnissen in der Bundesrepublik Deutschland einen erheblichen Einfluß auf das Marktverhalten von Industrie- und Handelsunternehmen und wirken sich darüber hinaus auch mit hoher Wahrscheinlichkeit auf die Marktstrukturen und die Marktergebnisse aus. Diese Perspektiven lassen das enorme Wirkungspotential erkennen, das dem Warentest als Instrument der Verbraucher- und Wettbewerbspolitik zukommt. Es liegen jedoch Hinweise darauf vor, daß der Warentest teilweise auch Wirkungen entfaltet, die in verbraucher- und wettbewerbspolitischer Hinsicht nicht uneingeschränkt zu begrüßen sind. Der darin erkennbaren Gefahr unbeabsichtigter Nebenwirkungen des Warentests ließe sich aber durch die Verwirklichung einer Reihe vorgeschlagener Maßnahmen zur Verbesserung der Warentestpraxis in erheblichem Maße vorbeugen. Eine Verbesserung des verbraucher- und wettbewerbspolitischen Zielerreichungsgrades des Warentests liegt daher durchaus im Bereich des Möglichen.The paper is based on the research project The efficacy of comparative product testing for suppliers and consumers carried out by the research term Konsumenteninformation at the University of Mannheim under the sponsorship of the Federal Ministry of Research and Technology. The research team was led by Hans Raffée and Günter Silberer. Other team members were Friedrich Förster, Wolfgang Fritz, Gosbert Gottmann, Harald Hilger, Bernd Kierdorf, and Ulrich Schwetz. The final project reports are being published by Campus-Verlag (Frankfurt and New York); see Raffée & Silberer, 1984, and Silberer & Raffée, 1984.Translation into English of this paper was carried out by Martin Marganus.

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Hans Raffée is Professor of Marketing at the University of Mannheim. Wolfgang Fritz is a Research Assistant at the Faculty for Business Administration at the same university. Their mailing address is: Universität Mannheim, Schloß, D-6800 Mannheim 1, Federal Republic of Germany.     

Trade and productivity: an industry perspective

We use a sample of 14 OECD countries and 15 manufacturing industries to test for the effect of trade on productivity. Endogeneity concerns are accounted for using the geographical component of trade as instrument as suggested by Frankel and Romer (Am Econ Rev 89(3):279–399, 1999). We find that trade, measured in terms of the export ratio, increases productivity, even if country-fixed effects such as the quality of institutions are controlled for, though results are less robust for imports. Estimates at the aggregate manufacturing level turn out much larger, emphasizing the role of inter-industry spillovers.