Download or read book Essays on International Asset and Goods Trade written by Meixin Guo and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In contrast with goods market frictions, the role of financial market frictions is not well understood in the international macroeconomics literature. My dissertation research incorporates both financial and goods market frictions in a general equilibrium model, and identifies their significant roles in determining the levels of consumption risk sharing, asset holdings, and goods flows across countries. The first chapter provides evidence on the significance of financial frictions in explaining the lack of international consumption risk sharing in a multi-country framework with heterogeneous country preferences, in addition to goods market frictions. The hierarchical Bayesian method is used to estimate the gravity equations on bilateral imports for a group of 22 OECD countries during 1970-2000. This method can control for the large dimensionality of the parameter space and reduce the size distortion of the likelihood ratio test based on standard panel least squares regressions. The second chapter focuses on how the hierarchical Bayesian method can help resolve the debate on the choice of different dummy variables in the high dimensional gravity equation literature, where estimates of key parameters can vary considerably depending on the ways in which fixed effects may be included. I estimate the Euro Zone effect and European Union effect on import for 22 developed countries during 1980-2004, a case used previously by Baldwin and Taglioni [2006]. The Bayesian results show that the model with time-invariant importer and exporter dummies is preferred. The third chapter, coauthored with Huiran Pan, provides more information about the effect of financial frictions on U.S. imports and foreign equity holdings from 2001 to 2008 for a group of 44 countries, along with traditional trade costs. Using an IV-Tobit model to control for endogeniety problem and many zero values in the data, we find significant negative effects of financial frictions on U.S. equity holdings and imports. The effects are more prominent for sectors with high financial dependence, high asset tangibility, high short-term debt interest repayment constraint, and countries with high interest spreads.

Download or read book Essays in International Trade and Public Economics written by Margarita M. Kalamova and published by Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften. This book was released on 2012 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays of this book are contributions to the empirical Literature in International Trade and Public Economics. They deal with the relationship between the structure and quality of the public sector and the process of economic integration. Two of the essays add to the empirical determinants of trade and foreign direct investment (FDI) and to the numerous applications of the theory of government decentralization. Decentralization tends to discourage inward FDI and domestic trade and to increase imports and exports. A third essay focuses on the effect of governments' intangible assets - such as consumer perceptions about countries and products from these countries - on FDI. A country's nation brand is shown to have a significant and large positive effect on investment flows.

Download or read book Essays on International Trade written by Kairong Chen and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is comprised of three chapters focusing on international trade policy and trade finance. My first chapter studies the effects of trade policy uncertainty on US firms' global value chain relationships. Using earnings call transcripts, I apply a text-based method to measure the trade policy uncertainty perceived by firms. With the new measures, I then estimate the effects of trade policy uncertainty shocks on firms' investment, inventory, and global adjustment in the supply chain. I find that US firms' foreign customers are negatively associated with trade policy uncertainty. In contrast, their foreign suppliers are not significantly associated with trade policy uncertainty, implying that US firms have a strong reliance on foreign supply. In my second chapter, I study the interdependence between trade policy and capital control from a terms-of-trade manipulation perspective. I extend the dynamic two-country multi-good endowment economy in Costinot et al. (2014) with trade taxes. Home country chooses optimal taxes on all tradable goods and international capital flows to maximize domestic welfare, while the foreign country is passive. When only good-specific trade taxes/subsidies are available, Home has an incentive to manipulate tariffs to depreciate its real exchange rate, if it has faster-growing endowment than the Foreign. Moreover, I find that taxing capital inflow is equivalent to a uniform reduction in trade tariffs on all goods. My third chapter studies how firms determine payment methods and transportation modes jointly in international trade. This chapter incorporates choices of transportation mode into a model of trade finance, and exploits Chilean import data to examine the model's implications. In cash-in-advance or post-shipment payment cases, firms use fast transportation to reduce financial costs caused by delayed repayment for borrowers and mitigate non-payment risk of importers. Meanwhile, it creates a high freight cost. In contrast, a letter of credit separates the goods shipment and payment flow in practice and substitutes trading partners' default risk with banks' credit risk.vEmpirical analysis reveals that a transaction using airborne cargo is less likely to be on a letter of credit.

Download or read book Essays on International Comovements of Financial Markets written by Yusuke Tateno and published by . This book was released on 2011 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: International portfolio diversification is beneficial only if asset returns are not significantly correlated across countries. Therefore, it is essential for investors who want to make an appropriate portfolio selection to understand the nature of asset return correlations. This thesis consists of three essays on international comovements of financial markets. The first essay analyzes the effects of heterogeneous beliefs and learning on international comovements of equity returns and portfolio rebalancing mechanism. This essay develops a continuous-time general equilibrium model in a two-asset and two-good economy with two representative agents, who differ in perceived rates of output growth and accuracy of beliefs. The equilibrium correlations of equity returns across counties and optimal portfolios are expressed in terms of the differences in beliefs. The main findings are: (1) the differences in perceived rates of output growth generate equity home or foreign bias, resulting in lower crosscountry equity return correlations; and (2) the volatilities of optimal portfolios and capital flows increase with the differences in perceived output growth and with the differences in accuracy of beliefs. The second essay studies the effects of trade costs in goods market on international comovements of equity markets and those on equity home bias. This essay develops a continuous-time general equilibrium model in a two-country, two-asset, and two-good setting where international trade of goods is costly. I solve for the optimal portfolios and the equilibrium correlations of cross-country equity returns and analyze how they change depending on the size of trade costs, the coeiffcient of risk aversion, and the elasticity of substitution between domestic and foreign goods. It is found that the cross-country equity return correlations decrease with the size of trade costs. This result is robust to different sizes of trade costs and asymmetry related to potential growth and consumer preferences. It is also found that the size of the trade costs and other parameter values determine whether trade costs would generate equity home bias or foreign bias. The third essay is devoted to an empirical analysis of the effects of financial integration on international comovements of financial markets. The essay provides a characterization of synchronization among 24 countries over the period 1980-2003. A country-pair panel instrumental variables framework is employed to explain time-varying bilateral correlations among national stock returns, by utilizing the dataset on trade costs in Fitzgerald (2008). It is found that finnancial integration driven by reduction of trade costs leads to a higher degree of synchromization across stock markets.

Download or read book Essays on International Trade and Macroeconomic Dynamics written by Keyu Jin and published by . This book was released on 2009 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: The second essay incorporates endogenous factor-proportions trade into an inter-national business cycle setting and demonstrates that the integrated framework substantially improves upon past, standard models that assume exogenously-determined structures of trade in matching key moments of the international business cycle data, resolving the "anomalies" that arise in the standard framework. An additional implication is that the type of trade rather than overall trade between countries matters: countries trading goods that are similar in factor intensity (intraindustry trade) tend to exhibit negative investment comovement while countries whose trade is characterized by more disparate factor content tend to exhibit greater investment comovement. The third essay, on a portfolio perspective of international capital flows, analyzes a useful accounting framework that breaks down the current account to two components: a portfolio reallocation effect and a portfolio growth effect. Past empirical evidence strongly supporting the growth-effect as the main driver of current account dynamics is misconceived. Its remarkable empirical success is driven by the dominance of the cross-sectional variation, which, under conditions met by the data, is generated by an accounting approximation. Finally, this chapter shows that the portfolio reallocation effect is the quantitatively dominant driving force of current account dynamics in the past data.

Download or read book Essays on Trade in Goods and Factor Movements Under Increasing Returns to Scale written by and published by . This book was released on 2003 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: On theoritical aspects of international trade policy.

Download or read book International Trade and Investment Two Perspectives written by Marina von Neumann Whitman and published by . This book was released on 1981 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on International Trade Growth and Finance written by Marc-Andreas Muendler and published by . This book was released on 2002 with total page 608 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays in International Trade and Foreign Direct Investment written by Yi Sun and published by . This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Two Essays in International Trade and Foreign Direct Investment" by Yi, Sun, 孙熠, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: This dissertation consists of two studies. The first study is about the effect of institutions on the realization of foreign direct investment (FDI), and the second study examines the role of Hong Kong as the export intermediaries for China's export. In the first study, we empirically examine the determinants for the breach of ex ante contracted FDI using a unique firm-level data set of foreign invested enterprises in China. We find that both the institutional quality of China's various regions as well as that of FDI sourcing countries have significant impacts on the fulfillment rate of ex ante contracted FDI. In the second study, we use China's Custom data to analyze the factors affecting the share of China's indirect exports routing through Hong Kong, and explore the reasons that account for the declining role of Hong Kong in China's export. We find evidence that Hong Kong plays a greater role when regions are geographically closer to Hong Kong yet poorer in institutional quality, or when destination countries are further away and have more complicated importing documents. It has an advantage in helping China export differentiated products rather than homogenous goods, whereas has no advantage in helping export China's new products. We find that the reallocation of China's export across regions, products and firm types contributes to the decrease of Hong Kong's role as China's export intermediary. We also find that firms with higher productivity or higher increase in productivity would be more likely to export directly rather than export through Hong Kong. DOI: 10.5353/th_b5312318 Subjects: International trade - China Investments, Foreign - China

Download or read book Documents concernant Jetta Goudal vedette de cin ma written by and published by . This book was released on with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in International Trade written by Mathilde Lebrand and published by . This book was released on 2016 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis tackles three topics in international trade: (i) the motives behind restrictions on Foreign Direct Investments (FDI) and the role of investment agreements, (ii) the determinants of services trade policies, and (iii) the role of domestic institutions in affecting trade flows and the gains from trade. Tariffs have almost completely disappeared but various barriers that restrict FDI still remain. Many trade agreements and Bilateral Investment Treaties (BITs) have been signed to lower tariffs and reduce the risks of expropriation whereas few agreements have been signed to lower entry barriers. The first chapter looks at the interaction between political and economic motives for protectionism. Lobbies give contributions to the governments to affect the policies. The repatriation of profits by foreign affiliates leads governments to restrict the entry of multinationals. Given these two motives, the cooperative outcome, which differs from the chosen policy, can be implemented through an agreement. However I highlight two reasons that can explain why such agreements might be unnecessary. First foreign lobbying counteracts domestic lobbying and, under certain conditions, can push the government to choose the cooperative outcome without signing an agreement. Second the presence of tax havens where firms shift their profits removes the gains from cooperation and makes an agreement unnecessary. The second chapter focuses on the determinants of services trade agreements. Most of the literature on trade policy and agreements has focused on goods, tariffs and trade agreements whereas, in this paper, we study services, foreign direct investment and services agreements. We provide a rationale for governments to commit to liberalize. The third chapter contributes to the debate on the role of various institutions in affecting economic exchanges. We focus here on the role of contract enforcement in shaping the optimal organization of firms and the allocation of entrepreneurs across sectors. Different institutional qualities are a source of comparative advantage and export specialization. We find that liberalization leads to asymmetric gains of trade in terms of productivity and reallocation of resources. The country with the poorest institutions benefits less from trade than the country with the best institutions.

Download or read book Essays on international fragmentation and intermediate goods trade written by Soonhee Park and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The International Economic Order written by Charles Poor Kindleberger and published by . This book was released on 1988 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Globalization from Above and Below written by Cem Tintin and published by LAP Lambert Academic Publishing. This book was released on 2015-02-04 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1980s the world economy has become increasingly integrated, which is known as globalization. The book looks at globalization both from above and below that attempts to reveal some underlying causes behind increased capital, goods and, to some extent, services flows in the world. At the same time, the book provides profound empirical evidence to document the effects of globalization on different aspects of national economies. The book uses a panel data approach that aims to analyze aggregate country-group trends rather than individual country performances. Such an approach enables us to test the main operating hypotheses in the book with a larger set of countries and to refrain from some potential problems associated with the sample size and omitted country-characteristics. Overall, the results show that most of the country-groups, especially the developing countries group, have benefited extensively from the increased integration with the world economy in terms of labor compensation, economic growth and human development. The results also highlight the importance of having high quality country-institutions while embracing globalization.

Download or read book Essays on International Trade Productivity and Growth written by Leilei Shen and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Trade Credit and International Trade written by Santiago Justel and published by . This book was released on 2020 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt: When a buyer and a seller meet in the market, both need to decide quantity and price. However, often they also argue when to transfer the payment. In one extreme, the seller may demand early payment before delivering the goods. In the other, the buyer can demand late payment after receiving the products/services. The former is sometimes called cash in advance, while the latter is called trade credit. Understanding the use of trade credit is essential because it is one of the main sources of short-term finance for firms. Additionally, since each trade contract specifies prices, quantities, and payment delay, the contract is implicitly defining who is responsible for financing the production and who bears the risk of default, which can itself be a deterrent to trade. My dissertation aims to study some of the novel factors that shape the use of trade credit and shed some light on its effects on a firm's decision to trade. The first chapter studies the firm-characteristics that shape the use of trade credit decisions in international trade. Trade credit is widely used in firm-to-firm transactions, domestically, and internationally. The literature has found that country-specific features, such as interest rates, legal institutions, the rule of law, and capital controls, affect the decision to extend trade credit. The literature has not studied additional features that might explain the trade credit provision in the international context; it also has not proposed additional theories. To fill this gap, I exploit transaction-level data from Chilean customs. This data set, available for exporters and importers, includes information that describes if a given transaction was paid in advance or paid post-shipment (trade credit). Additionally, I merge this data with firm-level details provided by the Chilean Internal Tax Service. Using this data, I document new facts. Namely, large firms measured by several metrics are most likely to use trade credit compared to small firms. Motivated by these facts and to guide my empirical strategy, I propose a theory for the use of trade credit. The model has the critical assumption that firms, buyer and seller, may default on their contracts due to liquidity shocks. Depending on the size of the shock, the firm can deplete all its assets, which means it will default. This simple assumption will imply that larger firms will be less likely to default since they have enough assets to absorb the liquidity shock. The predictions of the model are confirmed using regression analysis; therefore, not only country-specific attributes but also firm characteristics affect the contract decision: large exporters (importers) are 15% (40%) more likely to sell (buy) under trade credit compared to small exporters (importers). I also find that a small exporter matched with a large importer is 3-10% more likely to sell under trade credit. In the second chapter, we propose a theory for the use of trade credit that connects the markup that the exporter charges to the decision of extending trade credit. The key idea is that under pre-payment, the buyer needs to pay the full amount to the seller before receiving the goods. This payment requires liquidity equal to the total invoice, which in turn corresponds to the production cost plus a markup. In contrast, extending trade credit might be cheaper since the seller only needs to cover its production costs in advance, which is lower than the intermediate price due to the presence of markups. If financial intermediation is costly and the lending interest rate is greater than the deposit rate, then this difference in liquidity needs between pre-payment and trade credit affects profits, affecting the decision to provide trade credit. We test the implications of the theory using Chilean data. First, we construct markup estimates at the firm-product level, using detailed data on inputs and outputs of Chilean plants using the methodology developed by De Loecker, Goldberg, Khandelwal, and Pavcnik (2016). We then use transaction-level Customs data with information on the payment choice to test the model's predictions. We find that trade credit use increases in the markup and that this effect is larger, the bigger the difference between the buyer's borrowing rate and the seller's deposit rate is. the final chapter proposes and tests an alternative theory. Trade credit is used as a quality guarantee. There are two main facts in existing theories that explain the use of trade credit. First, all these theories focus on explaining the extension of trade credit or not, but not the length of the contract. Secondly, and most importantly, some empirical evidence does not speak to these models. Particularly, most of the existing theories conclude that trade credit is used due to access to cheaper credit or as an enforcement mechanism, then restricting the credit period, say to 30 days maximum, should not alter those incentives. However, the finance literature has found that this type of regulation has effects on the economy. Some authors have found that limiting the trade credit period to 30 days has positive effects, from the seller's perspective, through more competition due to the increase in firm entrance and a decrease in exit rates. However, in the same literature, other papers have shown that these laws also have adverse effects, namely, a reduction in the likelihood and volume of trade. The previous evidence indicates that the length of trade credit is also essential to understand the decision and its impact on the firm's behavior. Following Long, Malitz, and Ravid (1993), I propose the theory that trade credit serves as a signal for the quality of the product. In a nutshell, the model assumes that when the quality is not observable, but verifiable ex-post, trade credit can serve as a signal of the product's quality. The logic of the theory is that a buyer will not pay the transaction until she is sure that what she bought is what was agreed upon. Additionally, in this model, trade credit maturity serves a quality guarantee. Longer maturities imply that the buyer has more time to verify the contracted quality. This theory has the main prediction that the provision and maturity of the trade credit are positively related to the quality of the product. To test these predictions, I use a data set from the Chilean Customs. This transaction-level data set has a unique feature: the number of days at which a transaction was paid, on the addition of the usual measures such as destination, price, and quantity. As for quality measures, I will follow two strategies. First, I will use an off-the-shelf methodology that infers quality from prices and quantities, assuming a particular demand elasticity. Secondly, I will focus my attention on a specific industry, wine. For wine, I web-scrapped information of ratings, awards, and retail prices under the assumption that this data captures wine quality. The data confirms the main predictions of the model. I find that high-quality goods are more likely to be sold under trade credit. Moreover, regarding the other predictions, I find that high-quality products have 20 more days of trade credit, out of an average of 100 days.

Download or read book Essays on International Economics written by Julian P. Diaz and published by . This book was released on 2007 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: