price dumping in intermediate good markets abstract we analyze price dumping and anti dumping duties in the context of a model with a vertical industry structure dumping in the intermediate good market arises from differences in country specific final good production costs the price differential or dumping margin is shown to increase as the productivity difference increases an anti dumping duty designed to reduce the equilibrium price differential has two effects on welfare a welfare loss from reduced final good production and a contrasting gain achieved by producing the lower output level more efficiently

gatt and the economics of food safety abstract food safety is of increasing importance in higher income countries where consumers demand higher quality and safer food they will do so through the market when information makes it possible they will demand better assurances of safety through government regulations where externalities and health risks prevail the microeconomics of this demand for increased food safety is discussed in terms of how it can lead to non tariff barriers to trade that might ultimately be regulated by the gatt the public goods nature of food safety is explored along a continuum of food quality characteristics for the purpose of identifying when government regulations are needed

political economic markets perts and pests in food and agriculture j i lyniversity of california berkeley jjept of agricultural and resource economic l working paper al cljdare i lorking paper 0 231 politic eco lic l rxets a d pests i j food l ti achiculture by per ts cordon c rausser ja nlnl tt junot tlon a riii ent st ticn giannini fou 1cl itiol1of ar ricultllrnj econo ll i cs july 11 w

competition and unilateral dumping this paper presents an analysis of the effects of market structure on the propensity of firms to dump goods the analysis of brander and krugman is extended to show that in the presence of transportation costs bilateral intra industry trade is not possible without dumping contrary to the conventional wisdom this paper finds that firms in markets with a large number of domestic competitors are more prone to dump unilaterally than firms in less competitive markets this dumping is not predatory but may result in export prices being below average cost

generalised morality and the problem of transition to an impersonal exchange regime a response to platteau this essay addresses the problem of transition from a personalised exchange regime that characterises most ldcs to the more impersonal form of exchange that marks advanced market economies this debate has received impetus from the discussion launched by platteau 1994 in the pages of this journal where he seeks to clarify the social conditions that allow the market system to evolve while the role of private and public order institutions in generating market order is recognised this is regarded as inadequate necessitating the invocation of generalised morality gm to complete the explanation it is argued here that gm does not need to be invoked the article pleads for taking a closer look at the historical role of risk bearing institutions especially financial institutions evidence from the bangladesh rice market is adduced in support of the contention that there exist elements even within a traditional exchange regime that can evolve into modern impersonal forms this is brought out by ex

horizontal and vertical intra industry trade an empirical test of the homogeneity hypothesis in this paper we study if and how country specific factors affect intra industry trade iit when heterogeneity among sectors is allowed for the paper is novel in that it is the first that addresses an issue raised by greenaway et al oxford bulletin of economics and statistics 1999 61 365 specifically employing data on a sample of oecd countries over a 10 year period 1997 1998 we build on and take forward a methodology pioneered by balassa and bauwens economic journal 1987 97 923 to study the determinants of horizontal and vertical iit using a multi industry approach in doing this we seek to avoid the more extreme measurement problems by allowing for heterogeneity among sectors when country specific factors are analysed and among countries when industry specific factors are considered the results are compared to those obtained using the traditional method that does not consider intersectoral heterogeneity we find that the two models yield statistically different results moreover the tests regarding the choice of model that is econometric tests designed to compare one model with another when different sets of explanatory variables are used confirm the relevance of intersectoral heterogeneity in affecting iit to the best of our knowledge a similar analysis has not yet appeared in the empirical literature on iit

markets power and productivity in rural asia abstract this article deals with three themes first the evidence that rural markets are responsive to scarcity is open to two interpretations i that markets closely approach the competitive ideal and ii that such responses are also consistent with various market imperfections second there is the nature of power and its influence on economic transactions lacking a satisfactory definition of the concept many contributions dealing with power yield few insights third there is the relationship between agrarian structure and economic progress a signal accomplishment of some contributions has been to show that south asia s diverse experience casts considerable doubt on the proposition that this relationship is a simple one

facilitating the provision of farm credit the role of interlocking transactions between traders and zamindars in crop marketing systems in sindh abstract formal credit institutions in pakistan have largely failed to provide access to farm credit to small and medium scale landowners or zamindars this paper examines interlocked transactions between traders and landowners in the cotton and wheat markets in sindh that facilitate the provision of credit by traders it is concluded that the case examined provides an example where traders lend to landowners in a segment of the credit market that approximates competitive behavior without surplus extraction by traders key conditions resulting in this favorable outcome are the existence of both competition for market share and information sharing on borrowers between traders whether this outcome is also beneficial for other rural groups who may borrow from landowners in particular sharecropping tenants is independent of market relations between landowners and traders and is not determined here

intra industry trade in financial services abstract intra industry trade iit has been central to increasing the variety of products available to consumers unlike traditional trade theories the recent trade theories have placed an emphasis on the role of foreign direct investment fdi in generating trade and increasing the volume of iit this study is the first study of intra industry trade in banking services in which the key elements of the new trade theories of iit have been taken into account in measuring the determinants of iit in banking services the empirical results of the determinants of iit in banking services indicate that factor endowments average per capita income fdi in banking economies of scale in the banking sector trade intensity between the us and its partners and market openness make a positive contribution to the volume of iit in banking services furthermore the empirical results indicate that intra trade activities amongst the us multinational corporations reduce the level of iit in banking services for the us

the economics of coupled farm subsidies under costly and imperfect enforcement this study relaxes the assumption of perfect and costless policy enforcement found in traditional agricultural policy analysis and introduces enforcement costs and cheating into the economic analysis of output subsidies policy design and implementation is modeled in this paper as a sequential game between the regulator who decides on the level of intervention an enforcement agency that determines the level of policy enforcement and the farmer who makes the production and cheating decisions analytical results show that farmer compliance is not the natural outcome of self interest and complete deterrence of cheating is not economically efficient the analysis also shows that enforcement costs and cheating change the welfare effects of output subsidies the efficiency of the policy instrument in redistributing income the level of government intervention that transfers a given surplus to agricultural producers the socially optimal income redistribution and the social welfare from intervention

the effects of foreign exchange movements on u s domestic prices this paper draws on the fields of international economics and industrial organization to model and empirically examine the relationship between currency value fluctuations and domestic producer prices the major focus is the issue of whether and why domestic industries differ systematically in their response to exchange rate changes the major findings are that changes in the external value of the u s dollar between 1974 and 1987 passed most fully into domestic prices of industries heavily reliant on imported inports and producing goods highly substitutable for imports highly capital intensive and concentrated industries and those protected by extensive barriers to entry both from domestic and foreign sources have exhibited less domestic price change from the exchange rate movements copyright 1989 by mit press

openness to trade in manufactures in the oecd abstract how open are the advanced economies to trade with each other in this paper openness is calculated relative to the predictions of the monopolistic competition trade model using data on manufacturing trade and production in the oecd in 1985 the paper finds that 1 japan imports much less than other large oecd countries while the european countries have larger import volumes than does the us 2 japan and the us engage in less intra industry trade than the rest of the oecd and 3 the eu countries are less open to imports from japan and the us than those countries are open to imports from the eu

class relations in an asiatic regime this paper develops a theoretical analysis of the economic and political relationships among the state the peasantry and zamindars in mughal india 1550 1750 the analysi s rests on a pasinetti type accumulation model which also incorporate s state taxation tax evasion a wages fund and a variable peasant s aving propensity it is shown that zamindar incomes and the economic dependence of peasants are related to the extent of state taxation an d of evasion potential sources of systematic change are identified b y highlighting both conflict and harmony of class interests arising f rom taxation evasion military or luxury expenditures and productiv e investments copyright 1987 by oxford university press

the impact of regulations on agricultural trade evidence from the sps and tbt agreements according to world trade organization rules countries may adopt regulations under the agreements on sanitary and phyto sanitary sps and technical barriers to trade tbt we analyze the structure of these measures in agricultural trade the inventory approach suggests that european countries have among the lowest coverage ratios of all oecd countries using a gravity equation we also estimate their stringency our results suggest that they significantly reduce developing countries exports to oecd countries but do not affect trade between oecd members furthermore european imports are more negatively influenced by sps and tbts than imports of other oecd countries

forced commerce and agrarian growth abstract the paper explains why contractually interlocked agrarian markets differ from price and quantity adjustments under pressures of excess demand supply in neoclassical general equilibrium analysis such contractual interlocking arising say from the indebtedness of the peasants gives rise to a contrived system of forced commerce this commercial mode of exploitation not only exhibits unequal relations of economic power but more important it is also a mechanism for maintaining such unequal power structure often at the cost of retarding agrarian growth the paper thus emphasizes the need to understand the very notion of market exchange and commerce in backward agriculture from an unconventional viewpoint

alternative hypotheses and the volume of trade the gravity equation and the extent of specialization we examine why the gravity equation works and the implications for its use first we demonstrate that the gravity equation as a statistical relationship can be generated from a model with incomplete specialization and trade costs second we analyse the predominance of zero bilateral trade values as a puzzle broadly inconsistent with the complete specialization models typically used to derive the gravity equation but consistent with the alternative hypothesis of incomplete specialization third we demonstrate that the explanation for why the gravity equation works has considerable relevance for how the gravity equation is interpreted and used and how we view bilateral trade diverses hypotheses et le volume du commerce l equation de gravite et le degre de specialisation les auteurs examinent comment fonctionne l equation de gravite et les implications de son usage on propose trois contributions d abord on montre que l equation de gravite en tant que relation statistique et non pas en tant que prediction specifique de commerce bilateral peut etre produite a partir d un modele avec specialisation incomplete et couts de transaction ensuite on analyse la predominance de valeurs zero dans les commerces bilateraux en tant qu enigme generalement incompatible avec les modeles de specialisation complete utilises habituellement pour deriver l equation de gravite mais compatible avec l hypothese de rechange de specialisation incomplete enfin on montre que les raisons pour lesquelles l equation de gravite fonctionne ont un impact sur la facon de l interpreter et de l utiliser et sur notre facon de concevoir le commerce bilateral

interest rates in backward agriculture the role of economic and extra economic control this paper examines the nature and roles of personalized control exercised by the rural moneylender over a class of poor borrowers to extract as much as possible in the form of high interest charges and income from undervalued and or forfeited collaterals based on primary survey data from rural india it analyzes the strategies adopted by the lender through economic and extra economic instruments to enforce the credit contracts to accomplish his goals it also provides a vivid picture of the variations in the level of interest rates and the reasons for it across a class of borrowers in the sample copyright 1990 by oxford university press

interlocking transactions obstacles precursors or instruments of agrarian capitalism abstract rural labor arrangements often change rapidly and in ways that prevailing theories cannot explain explicit understanding of the exercise of power in rural society sheds considerable light on how and why rural labor arrangements change in the course of economic development this paper shows how different labor tying arrangements embody exclusionary mechanisms that can serve as instruments of both labor management and social control macro political and economic conditions shape the ways in which these mechanisms operate and are in turn influenced by them viewing labor arrangements in this way helps resolve problems confronted by the prevailing theories and allows for a broader understanding of dynamic processes

interlinked contracts and social power patronage and exploitation in india s waste recovery market abstract interlinked contracts have been examined almost exclusively in the context of the rural sphere this article describes the nature of exchange regimes between two sets of primary collectors of recyclable waste that is waste pickers and itinerant buyers and their dealers in the city of delhi far from the casualised labour transaction commonly described for the unorganised urban sector the findings portray a picture of personalised and surprisingly long term exchange between the parties while a new institutional economics approach might explain the underlying motivation and consequent general form of the implicit contracts it cannot explain the differential nature of each it is suggested that in order to do that a political economy approach must be taken this would understand interlinked transactions as being embedded within and consequently influenced by the particular social context in this case of an inequitable and impermeable caste hierarchy amongst those that engage in waste work

trade creation and diversion revisited accounting for model uncertainty and natural trading partner effects summary the effect of preferential trade agreements ptas on trade flows is subject to model uncertainty stemming from the diverse and even contradictory effects suggested by the theoretical pta literature the existing empirical literature has produced remarkably disparate results and the wide variety of empirical approaches reflects the uncertainty about the correct set of explanatory variables that ought to be included in the analysis to account for the model uncertainty that surrounds the validity of the competing pta theories we introduce bayesian model averaging bma to the pta literature statistical theory shows that bma successfully incorporates model uncertainty in linear regression analysis by minimizing the mean squared error and by generating predictive distributions with optimal predictive performance once model uncertainty is addressed as part of the empirical strategy we find strong evidence of trade creation trade diversion and open bloc effects our results are robust to a range of alternative empirical specifications proposed by the recent pta literature copyright 2010 john wiley sons ltd

latin america as a target of trade barriers erected by the major developed countries in 1983 abstract according to an unctad data set nontariff barriers were applied by 14 major industrialized importers against 19 percent of latin american exports this is not an unusually high coverage ratio australia and new zealand and japan faced substantially more frequent barriers the effects of these barriers on latin american exports are difficult to estimate the estimates vary substantially depending on the method of estimation one method estimates that latin american exports to this group of 14 importers have been reduced by trade barriers by a total of 34 percent varying from 5 percent for mexico to 75 percent for argentina

two principles for the next round or how to bring developing countries in from the cold t he november 1999 wto ministerial meeting in seattle was expected to usher in a new round of negotiations the ninth in a series that began in geneva in 1947 although wto members proved unable to launch a round efforts will continue in 2000 to develop a negotiating agenda in this paper i want to reinforce the call of the wto s director general mr moore for the next set of negotiations to be a development round basic notions of equity and a sense of fair play require that the next round reflect developing country interests and concerns more than was the case in earlier rounds seattle demonstrated that without greater balance the success of future negotiations will be imperiled dissatisfaction by developing countries regarding the extent to which their interests were reflected was a factor leading to the failure of the ministerial meeting the stakes are high there is a growing gap between the developed and the less developed countries highlighted in this year s world development report world bank 1999 the international community is doing too little to narrow this gap aid per capita to the developing world has fallen by nearly a third in the 1990s too often cuts in aid budgets are accompanied by the slogan trade not aid exhortations for the developing world to participate fully in the global marketplace and lectures about how government subsidies and protectionism distort prices and impede growth all too often there is a hollow ring to these exhortations as developing countries take steps to open their economies and

institutional change in the common agricultural policy of the european community the common agricultural policy cap of the european community ec is a complex institutional structure with major effects on world agriculture this study analyzes the cap from a public choice perspective as a case of induced institutional innovation the demand for change is analyzed as a function of a newly enlarged community time consuming decisions unequal distribution of net benefits increasing budget expenditures and rising pressures to renationalize farm subsidies drive the demand for change alternative institutional arrangements respond to these demands which reflect preferences for fairness and equity as well as improved efficiency in the cap

measuring protection mission impossible abstract there seems to be some confusion between openness and protection measures in the international trade literature the aim of this paper is to bring together the state of the art in quantifying trade policy measures and for this reason we focus on the extent of the protection granted by policies rather than on the degree of openness of the economy given the considerable amount of literature that deals with these issues we will limit our review as follows on the one hand we focus on trade policies implemented at the border and therefore do not consider all the other possible public interventions influencing trade flows on the other hand we only take into account indexes that explicitly adopt a metric expressed in a scalar aggregate tariff and quota equivalent measures or an index in a closed interval we distinguish between indexes that aggregate across products same barrier for more products and indexes that aggregate across instruments more barriers for the same product finally in order to classify the large number of indexes covered in our review we propose a typology based on three categories incidence outcome and equivalence

the choice of exchange rate index and domestic price passthrough this paper finds that the extent of real appreciation and real depreciation in the external value of the dollar since the late 70s has been overstated for most industries by the federal reserve board s 10 country index and is better proxied by the dallas fed s 101 country index earlier findings seem robust to the choice of index namely changes in the real external value of the dollar have passed most fully into domestic prices of industries heavily reliant on imported inputs and producing import substitutes and least fully into capital intensive and concentrated industries and those protected by entry barriers copyright 1991 by blackwell publishing ltd

the response of domestic prices to expected exchange rates this article examines the recent u s price experience in response to the actual and anticipated rise and fall of the dollar and tests for determinants of the observed price effects an index of real exchange rate expectations is developed and used to explore its role in determining domestic producer prices actual and expected future real exchange rates are seen to have opposite impacts on domestic price determination at the industry level further the industry specific characteristics interact asymmetrically with actual and expected real exchange rate changes copyright 1992 by university of chicago press

gatt a cooperative equilibrium in a noncooperative trading regime abstract as global tariff rates have fallen the use of nontariff barriers to trade have become more prevalent one incentive for a country to depart from free trade is to levy the optimal tariff in order to maximize domestic welfare the gatt was designed to maintain free trade through a system of managed retaliation as is well known in a game theoretic trade model of tariffs with no uncertainty free trade is an equilibrium outcome however with the introduction of uncertainty and asymmetric information it is shown that the equilibrium outcome s has each country imposing nontariff barriers to trade

federalism opportunism and multilateral trade negotiations in agriculture when federalist nations are signatories to international economic agreements potential problems arise because of the inherent conflicts between federal law and legitimate state interests this paper presents a conceptual framework for analyzing problems surrounding negotiation ratification and implementation of international agreements when federations are signatories the economic model isolates three factors the variance of state net benefits under an agreement individual states opportunity costs associated with the agreement and state supported opportunism as cost increasing impediments to the successful institution of international economic agreements and highlights opportunism containment as fundamental to credible commitments in international agreements

market integration and competition in environmental and trade policies recent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers to address the welfare effects of trade cost reductions in a context of trade and the environment we develop a two stage game model where governments choose environmental and trade policies and firms play a cournot nash game we show that reductions in transport costs lead to lower emission taxes and higher tariffs and we find that the degree of pollution damage plays a central role in whether market integration is welfare improving relative to autarky

the role of input vouchers in modernizing the fresh fruit and vegetable market in turkey contractual arrangements between farmers and traders aiming at providing input credit in return for output selling have been widely studied in the literature on agricultural economics nonetheless there is one issue which is barely mentioned in the literature how to enforce the contract terms when traders offer credit in cash rather than input advances this article aims to describe an innovation in farming contracts used by fresh fruit and vegetable wholesalers in turkey which involves a kind of private voucher system drawing on original data collected from wholesalers a segment in the supply chain hardly covered in the literature we investigate the factors determining contract adoption using a two limit tobit model our results suggest that this private voucher system contributes to supply chain coordination and facilitates smallholder farmer participation in export and supermarket channels which are growing rapidly in this developing country resume d auteur

social science knowledge and institutional change over the last several decades agricultural economists have made major contributions to our understanding of the impact of advances in natural science knowledge on technical change and of the impact of technical change on economic growth we have also significantly advanced our understanding of the sources of demand for and supply of technical change work carried out within the framework of the induced technical change paradigm has demonstrated that technical change can be treated as largely endogenous to the development process hayami and ruttan 1971 binswanger and ruttan we have made less progress in our attempts to understand the contributions of advances in social science knowledge to institutional innovation or of the contribution of institutional innovation to economic political or social change and our knowledge of the sources of demand for and supply of institutional change remains rudimentary in this paper i suggest an approach to thinking about the sources of demand and supply for institutional change i then proceed to explore the use of social science knowledge and the role of social scientists in the design and evolution of institutional innovations finally i examine the contribution of agricultural economics research and of agricultural economists to the design and evolution of the direct payment approach to farm price and income policy i follow the lead of commons and knight and define institution to include both the behavioral rules that govern patterns of relationships and action as well as decision making units such as government bureaus firms and families the term institutional change will at times be used to refer to both institutional innovation and to changes in institutional performance i

monopolistic competition and international trade reconsidering the evidence we test some propositions about international trade flows that are derived from models of monopolistic competition developed by elhanan helpman and paul krugman we investigate whether the volume of trade between oecd countries is consistent with the predictions of a model in which all trade is intraindustry trade in differentiated products we then repeat the test with non oecd countries we also investigate whether the share of intraindustry trade is consistent with a more general theoretical model in which some but not all trade is intraindustry trade our results lead us to question the apparent empirical success of these models

food marketing liberalization and trader entry evidence from madagascar abstract food marketing liberalization was expected to induce massive trader entry and competitive markets in africa despite evidence of trader entry enterprise expansion remains difficult and many claim market power persists though perhaps in different hands this paper confronts this puzzle of substantial market entry that might not foster competition data from madagascar reveal distinct groups within rural food marketing channels separated by intraindustry mobility barriers that limit entry to a few niches moreover individuals place within the rural marketing network is defined largely by a priori social identity so the experience of food marketing liberalization varies across socially distinct subpopulations

segmentation collateral undervaluation and the rate of interest in agrarian credit markets some evidence from two villages in south india this paper examines certain issues pertaining to the structure of agrarian credit markets in developing countries using empirical evidence on credit transactions from two villages in south india first the bases for the segmentation between formal and informal sectors of the credit market are identified as being 1 the type of collateral offered on credit contracts and 2 the purpose for which credit is taken secondly the paper shows the occurrence of a systematic association between rates of interest and types of collateral the evidence supports the hypothesis that lower marketability of collateral security and hence higher undervaluation increases the rate of interest charged on a loan thirdly the evidence shows an inverse relationship between the value of land owned by a borrower and the rate of interest on a credit contract copyright 1991 by oxford university press

endogenous supranational policy decisions the common agricultural policy of the european community the analysis of the supranational ec decisions on the cap indicates that they are endogenous and could largely be explained by past income growth and the development of budgetary expenditures prevailing at the time of the price decisions the empirical results corroborate the hypothesis that monetary compensatory amounts are integral part of common price decisions agricultural income growth could be explained by past price policy decisions whereas budget expenses are determined by u s world market prices and the exchange rate of the ecu against the u s

national interests and the cap abstract development of the cap is heavily circumscribed by differing national interests reflecting the usual agricultural policy conflicts between different regional and sectoral interests but as a supranational policy with principles of community preference and common financing the cap also redistributes the burdens and benefits of agricultural support between member states the implications of these features of the cap with reference to specified alternative policies are explored and conclusions drawn the conflict between national and supranational interests is inadequately reflected to decision makers the single instrument of price support at a common level is inadequate to meet a mix of differing national objectives and the assumption that the common policy serves unification and integration of the community may be incorrect

intra industry trade and strategic interaction theory and evidence abstract we conduct a theory based empirical study of intraindustry trade in homogeneous products we derive an oligopolistic model of intra industry trade which is an extension of the segmented market model of trade initially proposed by brander j a 1981 intra industry trade in identical commodities journal of international economics 11 1 14 the empirical implementations of the model are investigated in the context of the petrochemical industry our analysis employs a unique data set containing detailed product and location specific data on the petrochemical industries in germany and the united states allowing for different empirical specifications we find that cross product variations in bilateral intra industry trade of petrochemicals are well explained by the variables suggested by the theoretical model

intra industry trade and industry distribution of productivity a cournot ricardo approach this paper constructs a cournot ricardo model of trade by incorporating cournot competition in a ricardian trade model in this model the share of intra industry trade in bilateral trade volume decreases as trading partners become more different in terms of the industry distribution of labor productivity we show that this relationship is a special case of a more general relationship the share of intraindustry is decreasing in a specialization index this specialization index turns out to be equal to the difference in the industry distribution of productivity in the case of our cournot ricardo model while it is given by the difference in capital labor in the well known case of monopolistic competition as both technologies and factor endowments would be important in shaping specialization patterns in the real world we conjecture that the share of intra industry trade is decreasing in two measures of specialization the difference in the industry distribution of productivity and the difference in capital ratio our ols estimations strongly support this conjecture in fixed effects regressions both measures lose significance in the entire sample but the industry distribution of productivity is significant in explaining trade between high income countries

how bad is antidumping evidence from panel data abstract current research on antidumping suggests a number of channels through which antidumping affects the volume of world trade this paper uses a structural approach to the gravity model framework to evaluate these hypotheses using data on trade volume over the period 1948 to 2001 we conclude that the volume and welfare effects have been negative but quite modest

economic returns to social power merchants finance and interlinkage in the grain markets of bangladesh abstract the paper describes contrasting forms of interlinked transaction and the exchange regimes in which they are situated in two rural areas of bangladesh a fast growing green revolution area and a slow growing backward area some interlinkages fix output and finance prices for producers others establish personalized monopsony in trade the implication for rates of return and vulnerability of the different forms of interlinked transaction are explored perverse risk transfer from less to more vulnerable parties is found particularly when interlinkages are combined the market structures described appear to emerge not from government intervention but from the uneven distribution of local power and are thus unlikely to be improved by structural adjustment reforms or by price focused policies

goods prices and exchange rates what have we learned import prices typically change by a smaller proportion than the exchange rate between the exporting and importing country recent research indicates that common currency relative prices for similar goods exported to different markets are highly correlated with exchange rates between those markets this evidence suggests that incomplete pass through is a consequence of third degree price discrimination while distance matters for market segmentation borders have independent effects the source of the border effect has not been clearly identified furthermore there is little evidence yet to suggest substantial market power is implied by the observed price discrimination

industrial protection in the developed countries much has been said in recent years about growing industrial protectionism in the developed countries but little effort has been made to assess quantitatively the increases in protection that have actually occurred this essay will provide estimates for the major developed countries the united states the european common market and japan on changes in their tariff and non tariff barriers on manufactured imports in general and on imports from the developing countries in particular the protection of agricultural products is however excluded from the preview of the essay

antidumping and countervailing duty decisions in the e c and in the u s an experiment in comparative political economy abstract in recent years there has been a growing concern about the recourse to antidumping measures by the gatt member countries such measures can become a substitute for selective protection in the present article the dumping and injury determinations of the e c are subjected to econometric analysis using the finger hall nelson fhn model which makes a distinction between the political determinants and the technical determinants the results show that the technical variables dominate the dumping decisions while the political variables are more important in the injury determinations of the e c a comparison with the results obtained by the fhn study confirm the broad similarity between the e c and the u s patterns although the e c injury decisions are somewhat more susceptible to the influence of political variables the results of the study suggest that those who are interested in restraining the misuse of the antidumping provisions should concentrate their attention on the injury determination mechanism

intra industry trade in intermediate products pollution and internationally increasing returns this paper examines the relationship between intra industry trade in intermediate products pollution and increasing returns we develop a two country model in which production occurs in two stages final and intermediate good production intermediate goods are produced under monopolistic competition and final good production exhibits increasing returns with respect to the number of varieties of intermediates pollution occurs in the production of the final good when polluting intermediates are used we analyze the effects of international trade in intermediate products on pollution output and welfare under an endogenous tax scenario and with two types of pollution functions the results show that because of increasing returns international trade either leads to lower total pollution in each country or lower pollution per unit of output in at least one country in addition intra industry trade causes countries to import the environmental quality of their trading partners

the extent of nontariff barriers to industrial countries imports this paper examines the extent of non tariff barriers to sixteen industrial countries visible imports using three alternative measures it shows that governmental commodity specific border measures affect over 27 of all imports and over 34 of imports from developing countries it also shows that during the period 1981 83 ntbs became significantly more extensive detailed statistics reveal considerable variations in ntb coverage by commodity type of barrier importer and exporter the data on which these conclusions are based are compiled from official information at the finest level of disaggregation they are described in the paper

voluntary export restraints and resource allocation in exporting countries this article analyzes the resource implications of voluntary export restraints vers for exporting countries a simple analytical method is used to demonstrate that by reducing the marginal revenue of its factors of production a ver causes an industry in the exporting country to contract and that the efficiency losses from a ver depend on the ease with which sales can be diverted from the restricted toward the unrestricted markets the method is applied to test the effects of the u s orderly marketing agreement oma for producers of leather footware in the republic of korea during the period 1977 81 the authors estimate that the marginal revenue product of factors employed in leather footwear declined by as much as 9 percent because of the oma an estimate that is corroborated by inspection of time series on output employment and wages of the korean footwear sector this implies that there was pressure on the korean footware industry to contract as a result of the oma

product differentiation competition and international trade in this paper the two workhorse theories of international trade under imper fect competition krugman s taste for variety model and brander s strategic intra industry trade model are integrated into a single analytical framework a quadratic utility function allows for a nesting of these two theories by postulating a consumer taste for variety over differentiated products where the extent of product differentiation is linked to the intensity of strategic interaction among firms the model yields intuitive predictions on the effects of the degree of product differentiation on the volume of trade and on the composition of the gains from trade under imperfect competition jel classifi cation f12

trade liberalization in general equilibrium intertemporal and inter industry effects this paper uses a dynamic computable general equilibrium model to simulate the effects of unilateral reductions by the u s in tariffs and voluntary export restraints ver s we consider 50 percent cuts in tariffs and in ad valorem ver equivalents separately and in combination the model features intertemporal optimization by households and firms explicit adjustment dynamics an integrated treatment of the current and capital accounts of the balance of payments and industry disaggregation central findings include 1 ver s are considerably more significant than tariffs in terms of the magnitude of the macroeconomic effects induced by their reduction 2 while ver reductions enhance domestic welfare unilateral tariff cuts reduce domestic welfare as a consequence of u s monopsony power and associated adverse terms of trade effects 3 international capital movements critically regulate the responses of the u s and foreign economies to these trade initiatives and produce significant differences between short and long run effects and 4 effects differ substantially across industries together these findings indicate that simulation analyses that disregard international capital movements adjustment dynamics and industry differences may generate seriously misleading results

on the impact of transportation costs on trade in a multilateral world this article proposes to account for the differences in the importance of transport costs depending on characteristics of trading partners in a multiregion model of trade in differentiated goods we expect a smaller impact of transport costs on a country s exports as a share of importer gross domestic product gdp the more less relatively capital abundant the exporter importer is and the lower higher production costs are as captured by gdp at given factor endowments and diversity all else equal empirically this requires four interaction terms in addition to the direct impact of transport costs when estimating log linear gravity models one with the exporter gdp per capita or capital labor ratio a second one with the importer gdp per capita or capital labor ratio and a third and fourth with exporter and importer gdp respectively the hypotheses are strongly supported by the evidence from a large panel of bilateral trade between 1970 and 2000

is trade in permits good for the environment we analyze the impact of trade in emission permits on environmental policy when countries trade a differentiated good pollution is always higher with tradable permits as compared to the case where permits are not internationally tradable if pollution is a pure global public bad i e the marginal damage from transboundary pollution is the same as that from local pollution the permit price under trade equals the domestic marginal damage from own emissions if pollution is not a pure global public bad i e the marginal damage from transboundary pollution is less than that from local pollution trade results in a permit price lower than the domestic marginal damage from own emissions pollution is higher under trade relative to autarky regardless of the nature of transboundary pollution the permit price equivalent pollution tax is lower and pollution is higher with internationally tradable permits than with nontradable permits

agriculture in the uruguay round interests of developing countries agriculture has been favored and protected in developed countries while trade policies in developing countries frequently support industry at the expense of exportables and unprotected importables in agriculture this protection constrains expansion of temperate and subtropical agricultural exports from developing countries several studies have estimated the effects of liberalization of trade restrictions on world prices export earnings and import costs while developing countries generally would benefit from having the agricultural policies of the most powerful countries bound by international rules on trade there are differences among the developing countries as to which products should be liberalized even if such conflicts did not exist politically feasible means to obtain such compliance are elusive the potentially most feasible approaches for developing countries to obtain some measure of liberalization in the uruguay round of trade negotiations are discussed

eu agri environmental programs and the restaurant table effect the share of agricultural area enrolled in eu agri environmental programs varies significantly between eu member states these national differences are explained based on a model that reflects both that these programs internalize externalities and the political economy we identify six factors that affect the extent to which agri environmental programs are implemented environmental benefits opportunity costs of participation budgetary pressure the share of program expenditures financed by the eu the political weight attributed to farmers at the national and the political influence of each country at the eu level in addition we demonstrate that if the policy decision making process is noncooperative at the eu level countries that contribute less to the eu budget will ceteris paribus implement more programs using data of four years and feasible generalized least square methods we are able to confirm our theoretical results including a noncooperative behavior of eu member states

testing market integration a model of spatial price differentials for a tradable good is proposed which avoids the inferential dangers of received methods using static price correlations the proposed method also extracts more information on the causes of price differentials from the same data the method is illustrated using monthly rice price data for postindependence bangladesh including the very substantial regional price shocks during the 1974 famine impediments to market integration are indicated

maginot line of european farm policies as the european community has increased it s level of self sufficiency in agriculture it has moved from being an importer of many agricultural commodities to being an exporter as a consequence countries that were formerly exporters to the community now find themselves competing in third markets with subsidised exports from the community they may well conclude as have numerous west european scholars that the common agricultural policy cap no longer serves the interests of community agriculture or its political relations with the rest of the world it is expensive and cumbersome to operate protection is too high and unbalanced commodity expenditures are poorly allocated and their redistributive effects aggravate inequalities in the final analysis rather than being a unifying institution within the community the cap in its present form threatens the political equilibrium of the community and endangers the international trading system

germany and the cap a bargaining model of ec agricultural policy formation a bargaining model of ec agricultural policy formation is formulated the model allows for more explicit consideration of political factors than is possible in standard political economy models it shows how the political system in germany has increased the power of german farm interests relative to farm interests elsewhere in the ec the paper recognizes cap negotiations are an on going process results of the previous bargaining round form the basis for the current round and give momentum to price changes understanding this momentum provides insight into the fluctuating price supports that have characterized the cap