Author: Christopher Paul Blaha
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Renfeng Xiao
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
There have been considerable discussions about why countries have interests in forming preferential trade agreements (PTAs), which typically take the forms of a "free trade area" (FTA) with Rules of Origin (ROO) and a "customs union" (CU) (World Bank, 2005). This dissertation contains three essays with three different models of trade under oligopoly to analyze various issues on preferential trade agreements. The first essay examines welfare implications of forming preferential trade arrangement (PTAs) between two asymmetric countries that differ in their market sizes. Key findings are as follows. First, when market size asymmetry between two countries is not too large and ROO requirements are not too restrictive, the formation of an FTA with effective ROO can be welfare-improving to both members. Second, the formation of a PTA is more likely to emerge between countries of similar in their market sizes, ceteris paribus. Third, compared to the pre-PTA equilibrium, there are greater reductions in external tariffs under an FTA than under a CU such that a non-member country is relatively better off under the FTA. The second essay presents a three country model of trade under Bertrand price competition to analyze differences in welfare implications between an FTA with ROO and a customs union (CU). It is shown that the maximum limit of ROO requirements over which there are welfare gains from trade for FTA members depends crucially on the degree of substitutability of final goods (or the intensity of product market competition). It is also found that member countries and their final-good exporters are better off in a CU than in an FTA. There are greater reductions in external tariffs under an FTA than under a CU such that a non-member country is relatively better off under the FTA. The third essay presents a three country model of FTA with Cournot quantity competition and derives the maximum enforceable level of ROO over which there are welfare gains from trade to each member country. It is shown that ROO and external tariffs are strategic complements such that the higher is the regional input restrictions, the higher is the external tariff necessary to induce firms to fully comply with ROO requirements. It is also shown that an FTA with effective ROO has a positive effect on the final-good trade. But the trade-diverting effect does not occur in the final-good sector.

Author: Denis E. Medvedev
Publisher:
ISBN:
Category : CAFTA (Free trade agreement)
Languages : en
Pages : 472

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Author: Luis Alberto Portugal Perez
Publisher:
ISBN:
Category :
Languages : en
Pages : 132

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Book Description
There is genuine interest on market access conditions and potential benefits reaped by developing countries from North-South preferential trade agreements. Because of its discriminatory nature, preferential agreements must distinguish between goods originating in member countries from those produced in non-members for the purpose of granting preferential access. Rules of Origin (RoO) - determining the criteria for a good to be deemed as "sufficiently transformed" - are required for such differentiation. Nevertheless, well organized-interest groups can influence them so that trade is restricted and the benefits from improved market access, originally pursued by the preferential agreement, are diluted by the costs of compliance. The four essays of this dissertation contribute to the understanding of how RoO affect trade, what political-economy forces shape them, and what is their impact on economic welfare, especially from the point of view of developing countries.

Author: Takatoshi Ito
Publisher: University of Chicago Press
ISBN: 0226379000
Category : Business & Economics
Languages : en
Pages : 431

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Book Description
The practice of trading across international borders has undergone a series of changes with great consequences for the world trading community, the result of new trade agreements, a number of financial crises, the emergence of the World Trade Organization, and countless other less obvious developments. In International Trade in East Asia, a group of esteemed contributors provides a summary of empirical factors of international trade specifically as they pertain to East Asian countries such as China, Japan, Korea, and Taiwan. Comprised of twelve fascinating studies, International Trade in East Asia highlights many of the trading practices between countries within the region as well as outside of it. The contributors bring into focus some of the region's endemic and external barriers to international trade and discuss strategies for improving productivity and fostering trade relationships. Studies on some of the factors that drive exports, the influence of research and development, the effects of foreign investment, and the ramifications of different types of protectionism will particularly resonate with the financial and economic communities who are trying to keep pace with this dramatically altered landscape.

Author: Michael G. Plummer
Publisher: Asian Development Bank
ISBN: 9290921978
Category : Political Science
Languages : en
Pages : 194

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Book Description
This publication displays the menu for choice of available methods to evaluate the impact of Free Trade Agreements (FTAs). It caters mainly to policy makers from developing countries and aims to equip them with some economic knowledge and techniques that will enable them to conduct their own economic evaluation studies on existing or future FTAs, or to critically re-examine the results of impact assessment studies conducted by others, at the very least.

Author: Woubet Kassa
Publisher:
ISBN: 9781392118542
Category : Africa, Sub-Saharan
Languages : en
Pages : 106

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Book Description
This is a 3 essay dissertation on trade, exchange rate and development in Africa. The first chapter examines the extent to which financial development and trade openness mediate the impact of exchange rate regimes on productivity and growth. The empirical evidence on the relationship between exchange rate flexibility and growth in developing economies is mixed. Arguably, this relationship depends on the underlying characteristics of an economy, often overlooked in studies of the impact of exchange rate regime choice. The chapter investigates and estimates the relationship between exchange rate regimes and growth in Africa across the distribution of the level of financial development and trade openness. I find that exchange rate flexibility has a negative effect on growth. Greater financial development and trade openness; however, enhance the potential benefits of flexible regimes, and hence lessens the negative growth effect. The second chapter examines the impact of the African Growth and Opportunity Act (AGOA) for Sub-Saharan African countries. The objectives in this chapter are two fold. First, it evaluates the total trade creation impact of AGOA using synthetic control method (SCM); a quasi-experimental approach that addresses limitations in existing empirical approaches to examining the impact of preferential trade agreements (PTAs). Second, it explores possible determinants of the variations in the estimated impact across countries and review the underlying mechanisms driving the variations. The main finding is that most countries registered gains in exports due to AGOA. The results, however were varied and export gains were largely unsteady. The variation in the impacts is largely explained by infrastructure, institutions of legal frameworks, ease of labor market regulations and the macroeconomic environment including stable exchange rates and low inflation. Using new data on global value chains (GVC) of textile and apparel associated with AGOA exports, the third chapter examines the role of rules of origin in restricting domestic value addition in exports and; hence industrialization in sub-Saharan Africa. Though there is a lot of evidence, albeit mixed, on how PTAs such as AGOA affect aggregate exports, evidence on whether the preferential market access leads to the dynamic benefits of growth is still contentious. Countries who benefit from the 'Special Rule for Apparel' under AGOA with liberal rules of origin registered significant increases in textile exports. But, the foreign value added content of their exports increased significantly following AGOA. This raises questions about the realization of the dynamic growth returns from exporting following AGOA, accompanied by liberal rules of origin.

Author: Arvind Panagariya
Publisher: World Scientific
ISBN: 9789810238421
Category : Business & Economics
Languages : en
Pages : 248

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Book Description
Trade diversion and the creation of complicated and discriminatory tariff regimes with increased tariffs for non-member countries - the consequences of PTAs - are likely to undermine the multilateral trading system."--Jacket.

Author: N. David Palmeter
Publisher: Cameron May
ISBN: 1874698341
Category : Commercial policy
Languages : en
Pages : 371

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Book Description

Author: Arvind Panagariya
Publisher: World Scientific Publishing Company
ISBN: 9813102888
Category : Business & Economics
Languages : en
Pages : 245

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Book Description
The signing of the North American Free Trade Agreement (NAFTA) and recent expansions of the European Union have led to renewed efforts to create preferential trade areas (PTAs) around the world including Asia, Africa and Latin America. Because PTAs liberalize trade with union members but not the rest of the world, they are not necessarily a healthy development. By dividing the world into trade blocs, they also threaten to undermine the multilateral trading system.This collection of recently published essays by a leading critic of regionalism offers an assessment of the economic impact of PTAs on member countries and the world. The first set of essays present a theoretical analysis of the issues using simple economic models, and study the relationship between regionalism and multilateralism. Subsequent essays evaluate the role of PTAs in Asia, North America and Latin America. The general theme of the book is that, on balance, trade liberalization through PTAs is a mistake. Trade diversion, and the creation of complicated and discriminatory tariff regimes with increased tariffs for non-member countries — the consequences of PTAs — are likely to undermine the multilateral trading system.The book will be useful to academics as well as policy makers and policy analysts. Many of the essays have been featured in newspapers and journals such as the Financial Times, Economist, Journal of Commerce and International Herald Tribune. Some of these essays are already on many reading lists in the United States.