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The Intensive Margin in Trade
The Melitz model highlights the importance of the extensive margin (the number of firms exporting) for trade flows. Using the World Bank’s Exporter Dynamics Database (EDD) featuring firm-level exports from 50 countries, we find that around 50 percent of variation in exports is along the extensive margin—a quantitative victory for the Melitz framework. The remaining 50 percent on the intensive margin (exports per exporting firm) contradicts a special case of Melitz with Pareto-distributed firm productivity, which has become a tractable benchmark. This benchmark model predicts that, conditional on the fixed costs of exporting, all variation in exports across trading partners should occur o...
Handbook of Deep Trade Agreements
Deep trade agreements (DTAs) cover not just trade but additional policy areas, such as international flows of investment and labor and the protection of intellectual property rights and the environment. Their goal is integration beyond trade or deep integration.These agreements matter for economic development. Their rules influence how countries (and hence, the people and firms that live and operate within them) transact, invest, work, and ultimately, develop. Trade and investment regimes determine the extent of economic integration, competition rules affect economic efficiency, intellectual property rights matter for innovation, and environmental and labor rules contribute to environmental ...
International Economic Activities and the Demand for Skilled Labor
"Increases in international economic integration can lead to greater specialization according to comparative advantage, but also to the diffusion of skill-biased technologies. In developing countries characterized by relative abundance of unskilled labor, these factors can have opposite effects on the relative demand for skilled labor. Fajnzylber and Fernandes investigate the impact of the use of imported inputs, exports, and foreign direct investment on the demand for skilled workers by Brazilian and Chinese manufacturing plants. They find that while in Brazil increased levels of international integration are associated with an increased demand for skilled labor, the opposite is true in China. This paper, a product of the Growth and Investment Team, Development Research Group, is part of a larger effort in the group to study the links between globalization and labor markets"-- World Bank web site.
Golden Growth
The public debt crisis in Europe has shaken the confidence not just in the Euro, but in the European model. Aging and uneconomical Europeans are being squeezed between innovative Americans and efficient Asians, it is said. With debt and demographics dragging down them down, one hears that European economies will not grow much unless radically new ways are discovered. The end of complacency in Europe is a good thing, but this loss of confidence could be dangerous. The danger is that in a rush to rejuvenate growth, the attractive attributes of the European development model could be abandoned along with the weak. In fact, the European growth model has many strong points and enviable accomplish...
Exporting Services
Through country case studies as well as econometric analysis, this book attempts to identify the factors that have helped developing countries succeed in exporting services. It examines strategies that have been successful as well as those that have not delivered expected results..
World Development Report 2020
Global value chains (GVCs) powered the rapid expansion of international trade after 1990. Countries import not only for domestic consumption, but also to export, and transactions typically involve long-term, firm-to-firm relationships rather than anonymous spot market transactions. Trade and the rise of GVCs enabled an unprecedented convergence: poor countries grew faster and began to catch up with richer countries. More than 1 billion people escaped poverty as a result. Since the Great Recession, the growth of trade has been sluggish and the expansion of GVCs has slowed down. At the same time, potentially serious threats have emerged to the model of labor-intensive, trade-led growth. New la...
The Future of Trade
This critical book assesses the current trade policy challenges facing the US and offers a series of recommendations which, if implemented, have the potential to improve both US domestic trade policy and international/foreign policy. Focusing on the reform of the WTO, the implementation of the United States-Mexico-Canada Agreement and the continuing rivalry between the US and China, The Future of Trade crucially advances the ongoing dialogue between US governments and stakeholders.
Valuing Services in Trade
This Toolkit provides a framework, guidelines, and set of practical tools to conduct an analysis and diagnostic of trade competitiveness in the services sector and to identify both the main constraints to improved competitiveness and the appropriate policy responses.
An Islamic Vision of Intellectual Property
For over a century, intellectual property (IP) regimes have been justified using Western philosophical theories rooted in the idea that IP must reward talent and maximize global stocks of knowledge and cultural products. Reframing IP in a context of legal pluralism, Ezieddin Elmahjub brings an Islamic and comparative narrative to the appropriate design and scope of IP rights, and in doing so criticizes the dominance of Western influence on a global regime that impacts the ability of people to access medicine, to read, to imagine, and to reshape popular culture. The Islamic vision of IP, which is based on a broad theory of social justice, maintains that IP cannot simply be seen as a reward for effort or tool to maximize economic efficiency but as one legal right within a complicated distributive scheme affecting fundamental human rights, equal opportunities, and human capabilities.
