Download or read book The Intensive Margin in Trade written by Ana Fernandes and published by International Monetary Fund. This book was released on 2018-12-07 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 on the extensive margin. We find that moving from a Pareto to a lognormal distribution allows the Melitz model to match the role of the intensive margin in the EDD. We use likelihood methods and the EDD to estimate a generalized Melitz model with a joint lognormal distribution for firm-level productivity, fixed costs and demand shifters, and use “exact hat algebra” to quantify the effects of a decline in trade costs on trade flows and welfare in the estimated model. The welfare effects turn out to be quite close to those in the standard Melitz-Pareto model when we choose the Pareto shape parameter to fit the average trade elasticity implied by our estimated Melitz-lognormal model, although there are significant differences regarding the effects on trade flows.

Download or read book The Intensive Margin in Trade written by Ana Margarida Fernandes and published by . This book was released on 2018 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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% of variation in exports is along the extensive margin -- a quantitative victory for the Melitz framework. The remaining 50% 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 on the extensive margin. We find that moving from a Pareto to a lognormal distribution allows the Melitz model to match the role of the intensive margin in the EDD. We use likelihood methods and the EDD to estimate a generalized Melitz model with a joint lognormal distribution for firm-level productivity, fixed costs and demand shifters, and use "exact hat algebra" to quantify the effects of a decline in trade costs on trade flows and welfare in the estimated model. The welfare effects turn out to be quite close to those in the standard Melitz-Pareto model when we choose the Pareto shape parameter to fit the average trade elasticity implied by our estimated Melitz-lognormal model, although there are significant differences regarding the effects on trade flows.

Download or read book The Intensive Margin in Trade written by Ana Margarida Fernandes and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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% of variation in exports is along the extensive margin -- a quantitative victory for the Melitz framework. The remaining 50% 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 on the extensive margin. We find that moving from a Pareto to a lognormal distribution allows the Melitz model to match the role of the intensive margin in the EDD. We use likelihood methods and the EDD to estimate a generalized Melitz model with a joint lognormal distribution for firm-level productivity, fixed costs and demand shifters, and use "exact hat algebra" to quantify the effects of a decline in trade costs on trade flows and welfare in the estimated model. The welfare effects turn out to be quite close to those in the standard Melitz-Pareto model when we choose the Pareto shape parameter to fit the average trade elasticity implied by our estimated Melitz-lognormal model, although there are significant differences regarding the effects on trade flows.

Download or read book Impact of Global Issues on International Trade written by Co?kun Özer, Ahu and published by IGI Global. This book was released on 2021-06-25 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: International trade is vital in today’s world; international trade can be affected by a number of issues such as terrorism, economic crises, and pandemics such as COVID-19. It is crucial to understand the impact these global issues have on international trade and what happens to trade when global issues arise. A comprehensive guide of these issues is needed to provide background and understanding about international trade and its relationship with global issues. Global issues occasionally dominate a continuing theme of the international globalized world: global crises, war, security issues, global pandemics such as COVID-19, and trade wars. Global cooperation is required to solve such problems. Economically intellectual thinking will enable the development of guiding policies in solving these global problems. In this book, the effects of global issues on international trade will be evaluated, and policy recommendations will be made for the solution of the global issues. Impact of Global Issues on International Trade is a critical reference source that uses analytic research to analyze the effects of global economic and financial crises as well as global health crises and their impact on international trade. Pandemics such as the COVID-19 pandemic, the global economic crisis, and trade wars are discussed, and political suggestions are made to mitigate negative impacts. Covering a wide range of topics such as financial fragility and trade fairs, it is ideal for trade specialists, policymakers, government officials, managers, executives, economists, academicians, researchers, students, and industry professionals.

Download or read book Patterns of Export Diversification in Developing Countries written by Alberto Amurgo-Pacheco and published by World Bank Publications. This book was released on 2012 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits the observed differences in diversification across nations. The analysis shows that exports at the intensive margin account for the most important share of overall trade growth. At the extensive margin, geographic diversification is more important than product diversification, especially for developing countries. Taking part in free trade agreements, thereby reducing trade costs, and trading with countries in the North are also found to have positive impacts on export diversification for developing countries.

Download or read book Decomposition of Export Growth Into Diversification Patterns written by Kerfalla Conte and published by GRIN Verlag. This book was released on 2011-12 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2010 in the subject Business economics - Trade and Distribution, course: Technical-paper/ Private research, language: English, abstract: This paper explores the extent to which products and product-markets diversifications contribute to export growth. It has used the bilateral trade at a very detailed level across countries, between 1996 and 2008. The results suggest that the export growth comes mainly from the intensive margin, i.e. product lines that had been already exported to the existing established trading partners. The decline in export, either due to the fall or the extinction in the existing established trade relationships, occurs more substantially on export growth for developed countries than for developing countries. And the appearance of new exports (extensive margin), either new products or markets, represents a vital source in export earnings for the developing countries, especially for the least developed countries (LDCs).

Download or read book The Great Trade Collapse Causes Consequences and Prospects written by Richard E. Baldwin and published by CEPR. This book was released on 2009 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Export Diversification in Low Income Countries and Small States Do Country Size and Income Level Matter written by Dongyeol Lee and published by International Monetary Fund. This book was released on 2019-05-24 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Export structure is less diversified in low-income countries (LICs) and especially small states that face resource constraints and small economic size. This paper explores the potential linkages between export structure and economic growth and its volatility in LICs and small states, using a range of indices of export concentration differing in the coverage of industries. The empirical analysis finds that export diversification may promote economic growth and reduce economic volatility in these countries. Furthermore, the analysis demonstrates that the economic benefits of export diversification differ by country size and income level—there are bigger benefits for relatively larger and poorer countries within the group of LICs and small states.

Download or read book China s Growing Role in World Trade written by Robert C. Feenstra and published by University of Chicago Press. This book was released on 2010-03-10 with total page 603 pages. Available in PDF, EPUB and Kindle. Book excerpt: In less than three decades, China has grown from playing a negligible role in international trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. Not surprisingly, China's economic dynamism has generated considerable attention and concern in the United States and beyond. While some analysts have warned of the potential pitfalls of China's rise—the loss of jobs, for example—others have highlighted the benefits of new market and investment opportunities for US firms. Bringing together an expert group of contributors, China's Growing Role in World Trade undertakes an empirical investigation of the effects of China's new status. The essays collected here provide detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment. This volume's careful examination of micro data in light of established economic theories clarifies a number of misconceptions, disproves some conventional wisdom, and documents data patterns that enhance our understanding of China's trade and what it may mean to the rest of the world.

Download or read book The WTO Promotes Trade Strongly But Unevenly written by Mr.Arvind Subramanian and published by International Monetary Fund. This book was released on 2003-09-01 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper furnishes robust evidence that the GATT/WTO has had a powerful and positive impact on trade. The impact has, however, been uneven. GATT/WTO membership for industrial countries has been associated with a large increase in imports estimated at about 40 percent of world trade. The same has not been true for developing country members, although those that joined after the Uruguay Round have benefited from increased imports. Similarly, there have been asymmetric effects among sectors, with WTO membership associated with substantially greater imports in sectors where barriers are low. These results are consistent with the history and design of the institution, which presided over significant trade liberalization by the industrial countries except in sectors such as food and clothing; largely exempted developing countries from the obligations to liberalize under the principle of special and differential treatment; but attempted to redress the latter by imposing greater obligations on developing country members that joined after the Uruguay Round.

Download or read book A Practical Guide to Trade Policy Analysis written by Marc Bacchetta and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade flows and trade policies need to be properly quantified to describe, compare, or follow the evolution of policies between sectors or countries or over time. This is essential to ensure that policy choices are made with an appropriate knowledge of the real conditions. This practical guide introduces the main techniques of trade and trade policy data analysis. It shows how to develop the main indexes used to analyze trade flows, tariff structures, and non-tariff measures. It presents the databases needed to construct these indexes as well as the challenges faced in collecting and processing these data, such as measurement errors or aggregation bias. Written by experts with practical experience in the field, A Practical Guide to Trade Policy Analysis has been developed to contribute to enhance developing countries' capacity to analyze and implement trade policy. It offers a hands-on introduction on how to estimate the distributional effects of trade policies on welfare, in particular on inequality and poverty. The guide is aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research. An accompanying DVD contains data sets and program command files required for the exercises. Copublished by the WTO and the United Nations Conference on Trade and Development

Download or read book The Intensive Margin in Trade written by Ana Fernandes and published by International Monetary Fund. This book was released on 2018-12-07 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 on the extensive margin. We find that moving from a Pareto to a lognormal distribution allows the Melitz model to match the role of the intensive margin in the EDD. We use likelihood methods and the EDD to estimate a generalized Melitz model with a joint lognormal distribution for firm-level productivity, fixed costs and demand shifters, and use “exact hat algebra” to quantify the effects of a decline in trade costs on trade flows and welfare in the estimated model. The welfare effects turn out to be quite close to those in the standard Melitz-Pareto model when we choose the Pareto shape parameter to fit the average trade elasticity implied by our estimated Melitz-lognormal model, although there are significant differences regarding the effects on trade flows.

Download or read book Accelerators of India s Growth Industry Trade and Employment written by Suresh Chand Aggarwal and published by Springer Nature. This book was released on 2020-02-14 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a collection of distinguished contributions that identify current growth accelerators in India, and suggest policies and strategies to make India’s growth more sustainable and inclusive. The papers are divided into three sections, the first of which focuses on issues related to industrial growth in India. The discussions include India’s industrial development (manufacturing, construction and mining); role of manufacturing; global value chains; and of environment in industrial development. In turn, section II deals with issues related to trade and FDI as accelerators of India’s growth. The respective chapters explore the changing patterns of trade, impacts of technology, and spill-over effects of FDI, to name but a few. Lastly, the third section discusses employment-related issues like measurement of labour input, the dichotomy of the Indian labour market, the nature of firms and employment generation, and impacts of technology on employment. Given its scope and focus, the book offers an invaluable resource for researchers and policymakers alike.

Download or read book Changing Patterns of Global Trade written by Nagwa Riad and published by International Monetary Fund. This book was released on 2012-01-15 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: Changing Patterns of Global Trade outlines the factors underlying important shifts in global trade that have occurred in recent decades. The emergence of global supply chains and their increasing role in trade patterns allowed emerging market economies to boost their inputs in high-technology exports and is associated with increased trade interconnectedness.The analysis points to one important trend taking place over the last decade: the emergence of China as a major systemically important trading hub, reflecting not only the size of trade but also the increase in number of its significant trading partners.

Download or read book The Role of Extensive and Intensive Margins and Export Growth written by Tibor Besedes and published by . This book was released on 2007 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate and compare countries' export performance based on their performance at the extensive and intensive export margins. We decompose these margins into three distinct components: establishing new partners and markets, having relationships survive or persist, and deepening existing relationships. We show that despite the large number of new exporting relationships, differences along the extensive margin have very little impact on long-run export growth. By contrast, we find developing countries would have had significantly higher export growth were they able to improve their performance with respect to the two key components of the intensive margin: survival and deepening.

Download or read book The Anatomy of China s Export Growth written by Mary Amiti and published by World Bank Publications. This book was released on 2008 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Decomposing China's real export growth, of over 500 percent since 1992, reveals a number of interesting findings. First, China's export structure changed dramatically, with growing export shares in electronics and machinery and a decline in agriculture and apparel. Second, despite the shift into these more sophisticated products, the skill content of China's manufacturing exports remained unchanged, once processing trade is excluded. Third, export growth was accompanied by increasing specialization and was mainly accounted for by high export growth of existing products (the intensive margin) rather than in new varieties (the extensive margin). Fourth, consistent with an increased world supply of existing varieties, China's export prices to the United States fell by an average of 1.5 percent per year between 1997 and 2005, while export prices of these products from the rest of the world to the United States increased by 0.4 percent annually over the same period.

Download or read book Market Penetration Costs and the New Consumers Margin in International Trade written by Costas Arkolakis and published by . This book was released on 2008 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: I develop a new theory of marketing costs and introduce it into a model of trade with product differentiation and firm productivity heterogeneity. In this model, a firm enters a market if it makes profits by reaching a single consumer there and pays an increasing marginal cost to access additional consumers. This market penetration cost introduces an extensive margin of new consumers in firms' sales. I calibrate the key parameters of the model to match data on French firms from Eaton, Kortum and Kramarz, in particular the higher sales in France of firms that choose to export to more destinations. The model predicts that most firms do not export, and that a large proportion of firms that export in particular markets do so in small amounts. These predictions are in line with the French data, but together create a puzzle for models with a fixed cost of exporting, such as those of Melitz and Chaney. Looking at the comparative statics of trade liberalization, I find that the model predicts large increases in trade in goods with positive but little previous trade, in line with Kehoe and Ruhl. The model implies that these increases can contribute to new trade significantly more than the corresponding increases due to new exporters.