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Empirical studies and theoretical analyses examine the causes and consequences of disruptions in cross-border economic relationships, including political conflict, economic sanctions, and institutional collapse. Cross-border economic relationships gradually strengthened in the decades after World War II; for most of the postwar period, international trade and investment have grown faster than output, a process often termed “globalization.” In recent years, however, economic relationships have grown more fragile, subject to disruption by such factors as political conflict, economic sanctions, and the dissolution of institutional arrangements. This timely CESifo volume offers empirical stu...
Sanctions as War: Anti-imperialist Perspectives on American Geo-Economic Strategy offers the first comprehensive account of economic sanctions as a tool for exercising American power on the global stage. Since the 1980s, the US has steadily increased its reliance on economic sanctions, or the imposition of extensive financial penalties for violation of given rules, to fight its foreign policy battles. Perceived as a less costly and damaging alternative to kinetic military engagement, economic sanctions have been levied against over 25 other countries. In the process, sanctions have destroyed thousands of innocent lives and wreaked inestimable damages to civil society. To understand how sanct...
Ebook: International Economics
"We examine the extent that product differentiation affects the duration of US import trade relationships. Applying nonparametric and semiparametric techniques to highly disaggregated product-level data we estimate that the hazard rate is at least 18 percent higher for homogenous goods than for differentiated products. Put another way, the median survival time for trade relationships involving differentiated products is five years as compared to two years for homogenous products. We find that our results are not only highly robust but often are strengthened under alternative specifications. For instance, if we define trade relationships using industry-level rather than product-level data we ...
International Trade, Distribution and Development brings together a collection of papers that have sought to assess empirically the impacts of policy measures affecting trade. The carefully selected papers analyze the impact of trade barriers and their removal, with a focus on distributional consequences and economic development.Grounded in rigorous empirical analysis, this book covers a range of policy issues such as impacts of trade on wages, non-tariff barriers, trade preferences, export survival and carbon labelling. An invaluable reference for readers seeking to understand the impact of trade policies, the book also seeks to shed light on future research, especially for research on developing countries.
This paper examines the export performance of 99 countries over 1995-2004 to understand the relative roles of export growth through "discovery" of new products and growth during post-discovery phases of the export product cycle -- acceleration and maturation -- in existing markets and expansion into new geographic markets. The authors find that expanding existing products in existing markets (growth at the intensive margin) has greater weight in export growth than diversification into new products and new geographic markets (growth at the extensive margin). Moreover, growth into new geographic markets appears to be more important than discovery of new export products in explaining export growth. Of particular importance is whether an exporting country succeeds in reaching more national markets that are already importing the product it makes. This geographic index of market penetration is a powerful explanatory variable of export performance. This suggests that governments should not focus solely or even primarily on the discovery channel, but also seek to identify and address market failures that are constraining exporters in subsequent phases of the export cycle.
African export ventures often fail early, a trend that causes waste, uncertainty, and discouragement. This book shows how governments and donors can help boost African export sustainability through a mixture of traditional policy prescriptions and selected proactive interventions.
Opportunities for individuals and businesses to benefit from globalisation are increased by efficient, cost-effective transport networks. A competitive, responsive, well-organised transport sector facilitates trade and creating the conditions for this poses policy challenges that must be tackled.
On September 15, 2008, Lehman Brothers, the fourth largest U.S. investment bank filed for bankruptcy. Global credit markets tightened. Spreads skyrocketed. International trade plummeted by double digits. Banks were reportedly unable to meet the demand from their customers to finance their international trade operations, leaving a trade finance 'gap' estimated at around US$25 billion. Governments and international institutions felt compelled to intervene based on the information that some 80-90 percent of world trade relies on some form of trade finance. As the recovery unfolds, the time has come to provide policy makers and analysts with a comprehensive assessment of the role of trade financ...
This paper employs survival analysis to study the duration of US imports. We find that the median duration of exporting a product to the US is very short, on the order to two to four years. Our results also indicate that there is negative duration dependence meaning that if a country is able to survive in the exporting market for the first few years it will face a very small probability of failure and will export the product for a long period of time. This result holds across countries and industries. We find that our results are not only robust to aggregation but are strengthened by aggregation. That is, as we aggregate from product level trade data to SITC industry level trade data the estimated survival increases. We rank countries by their survival experience and show that our rankings are strongly correlated with the rankings in Feenstra and Rose (2002), implying that product cycle followers also experience particularly short duration.