Showing 1 - 10 of 43
We examine the impact of revocation of tariff exemptions on exports of developing countries, using data from the cases of Competitive Needs Limits (CNL) built into the Generalized System of Preferences (GSP). CNLs are arguably imposed on super competitive GSP beneficiaries and aim to limit their...
Persistent link: https://www.econbiz.de/10010305604
Why are trade agreements regional? I address this question in a model of oligopoly featuring product variety. Tariffs have the effect of manipulating a country's terms of trade and shifting profits towards the domestic market at the expense of foreign trade partners. Countries endogenously form...
Persistent link: https://www.econbiz.de/10011400021
The number of bilateral and multilateral trade agreements has surged in recent years. In order to benefit from preferential tariff rates,firms must apply and comply with rules of origin requirements. This is costly and explains why preference utilization rates (PUR) are far below 100 percent. In...
Persistent link: https://www.econbiz.de/10012099201
We develop a theory of economic disintegration that features both endogenously formed tax and trade policies. We show very generally that the economic disintegration of a country from an economic union leads to a deeper integration of international trade institutions. Moreover, we set up a...
Persistent link: https://www.econbiz.de/10012287832
This paper sets up a model of trade, in which two countries with differing levels of technology specialize on the production of subsets of the global value chain. In the open economy equilibrium, the technologically backward country exports intermediates in exchange for imports of a homogeneous...
Persistent link: https://www.econbiz.de/10012623188
Identity creating or cultural goods are characterized by a positive consumption network externality and increased utility because of doing what the reference group expects. Different countries have different cultural goods. It is shown that moving from autarky to free trade a country may suffer...
Persistent link: https://www.econbiz.de/10010270072
This paper provides evidence on the labor market adjustments following a large import shock on both the individual and the firm level. We exploit a quasi-experimental shock in the German clothing industry caused by the phasing out of the Multi-Fibre Arrangement. Using the German shoe industry as...
Persistent link: https://www.econbiz.de/10010270202
The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are strangers, friends, or foes (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which...
Persistent link: https://www.econbiz.de/10010270234
Entrepreneurs who decide to start a business are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy through entry regulation and subsidies. In this paper we present a two-country general equilibrium model with...
Persistent link: https://www.econbiz.de/10010270242