scholarly journals Implications of the US–China Tit-for-Tat Tariff Escalation: A Literature Review of Standard Trade Theory and Empirical Evidence on Economic Consequences and Effects on Both Countries

2019 ◽  
Vol 5 ◽  
pp. 1
Author(s):  
Tsitsi E. Mutambara ◽  
Keyword(s):  
International Trade ◽  
Empirical Evidence ◽  
Empirical Studies ◽  
The United States ◽  
Economic Consequences ◽  
Trade Restrictions ◽  
Trade Theory ◽  
Export Prices ◽  
Tit For Tat ◽  
The Impact

This study reviewed standard international trade theories as they pertain to the impact of trade restrictions. Current empirical studies were reviewed to see whether evidence supports trade theory predictions. Conventional price impacts in standard models of international trade show that trade restrictions are detrimental for trade for both countries involved, and the empirical evidence from current studies confirmed this. The current tit-for-tat tariff escalation between China and the United States has led to, among other things, increased domestic prices to both American consumers and producers; lower export prices to some of the Chinese exporters and American firms based in China; reduced import and export trade between the two countries that would lead to costly adjustments in supply chains; loss in net welfare and employment; and loss in competitive advantage to firms in both countries that produce for export. Therefore, efforts should be made to de-escalate these trade tensions.

International trade and domestic politics: improving on Rogowski's model of political alignments

1993 ◽  
Vol 47 (4) ◽  
pp. 535-564 ◽  
Author(s):  
Paul Midford
Keyword(s):  
International Trade ◽  
Domestic Politics ◽  
The United States ◽  
Valuable Insight ◽  
Trade Theory ◽  
Developed Economies ◽  
Factor Endowments ◽  
The Impact ◽  
Insight Into ◽  
Three Factor

Ronald Rogowski's work offers valuable insight into the impact of changing trade exposure on domestic politics. Exploring the political implications of the well-known factor endowments model of international trade theory, Rogowski argues that owners of relatively abundant productive factors will form a free-trading coalition against owners of relatively scarce productive factors, who will align in favor of protection. Rogowski's parsimonious three-factor version of the factor endowments theory—although offering valuable insight into the politics of less developed economies, including today's developed economies in earlier centuries—produces significant anomalies when applied to advanced economies. Intuitive logic and empirical research, especially the Leontief paradox, suggest that the highly complex division of labor found in developed countries will confound the simplicity of the three-factor model. Edward Learner's multifactor model suggests solutions to the anomalies that afflict Rogowski's simpler model when applied to recent politics in the United States and Europe.

scholarly journals International Trade and Foreign Direct Investment as Innovation Factors of the U.S. Economy

2014 ◽  
Vol 41 (1) ◽  
pp. 60-75
Author(s):  
Tomasz M. Napiórkowski
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Positive Impact ◽  
The United States ◽  
Annual Data ◽  
Main Portion ◽  
The Impact ◽  
Total Impact ◽  
The U.S

Abstract The aim of this research is to asses the hypothesis that foreign direct investment (FDI) and international trade have had a positive impact on innovation in one of the most significant economies in the world, the United States (U.S.). To do so, the author used annual data from 1995 to 2010 to build a set of econometric models. In each model, 11 in total) the number of patent applications by U.S. residents is regressed on inward FDI stock, exports and imports of the economy as a collective, and in each of the 10 SITC groups separately. Although the topic of FDI is widely covered in the literature, there are still disagreements when it comes to the impact of foreign direct investment on the host economy [McGrattan, 2011]. To partially address this gap, this research approaches the host economy not only as an aggregate, but also as a sum of its components (i.e., SITC groups), which to the knowledge of this author has not yet been done on the innovation-FDI-trade plane, especially for the U.S. Unfortunately, the study suffers from the lack of available data. For example, the number of patents and other used variables is reported in the aggregate and not for each SITC groups (e.g., trade). As a result, our conclusions regarding exports and imports in a specific SITC category (and the total) impact innovation in the U.S. is reported in the aggregate. General notions found in the literature are first shown and discussed. Second, the dynamics of innovation, trade and inward FDI stock in the U.S. are presented. Third, the main portion of the work, i.e. the econometric study, takes place, leading to several policy applications and conclusions.

scholarly journals POLITICAL AND ECONOMIC CONTENT OF THE THEORY OF INTERNATIONAL TRADE

2021 ◽  
Vol 118 (5) ◽  
pp. 48-65
Author(s):  
ONYSHCHENKO Volodymyr
Keyword(s):  
International Economic ◽  
Political Economy ◽  
International Trade ◽  
Trade Policy ◽  
State Level ◽  
Trade Theory ◽  
Economic Relations ◽  
International Economic Relations ◽  
The Subject ◽  
The Impact

Background. Dynamic changes in international economic relations and trade for thorough analysis and forecasting require an adequate paradigm of international trade theory, which would take into account not only economic and political factors of its development, but also the diverse civilizational context of the world community, which determines mental, social and cultural features of the development of a country. Problem research state. Problems of political economy in international trade to some extent affect the research of P. Krugman, M. Obstfeld, J. Frieden, E. Helpman, P. S. Afontsev, A. Mazaraki, T. Melnyk, V. Panchenko, N. Reznikova and others. But the structure of its methodological discourse and the subject of its research remain unclear. The aim of the articleis to clarify the political and economic discourse of the theory of international trade. Materials and methods. The materials of the research were the works of domestic and foreign specialists. In the process of preparing the article, general scientific research methods were used: historical, logical analysis, synthesis and abstraction. Results. Political economy is a normative manifestation of economic theory, which is formed under the influence of socio-economic and political concepts, the formed goals of social development. The subject of political economy of international trade – economic and socio-political relations that determine and accompany international trade and determine the goals and content of trade policy of its subjects. It is proposed to expand the mechanism of formation of relative advantages and trade policy of the country by including factors that determine not only its economic potential and specialization, but also the risks that may be caused by political decisions. It is argued that the problem of «protectionism vs liberalism» in international trade at the state level will always exist. It turns out that the problem of justice in international economic relations and trade is determined by the civilizational content of the development of countries, in which human capital plays a crucial role. Conclusion. The paradigm of political economy in international trade should be based on an expanded interpretation of relative benefits by assessing the impact of economic, social and political institutionson them, the peculiarities of national trade policies.

Immigrants, Migration, and Religious Economies

2011 ◽  
pp. 150-168
Author(s):  
Darren E. Sherkat
Keyword(s):  
Forced Migration ◽  
The United States ◽  
Economic Consequences ◽  
Religious Traditions ◽  
Economics Of Religion ◽  
Immigration Laws ◽  
Political Conflicts ◽  
Religious Economies ◽  
And Migration ◽  
The Impact

Over the twentieth century, Western democracies began to adopt more inclusive immigration laws, which enabled people from diverse nations to move to Europe and North America. Not surprisingly, many of these immigrants carried with them religious traditions not commonly found in their new homelands. Yet immigration also has a more elemental relationship with religion, because religion often contributes to political conflicts that lead to forced migration, and religious oppression frequently motivates religious minorities to seek more accepting cultural environments. Research in the economics of religion often draws on the impact of immigrants on religious markets and the impact of religious markets on immigrants' religious practices. This article reviews studies on the connections between religion and migration, and discusses how these are related to economic theories of religious and cultural behaviors and institutions. It presents findings from the United States detailing how migration impacts religious markets, how religious factors structure migration, and some economic consequences of religious commitments among immigrants.

Empirical Studies of Corporate Law and Governance

2017 ◽  
Author(s):  
Michael Klausner
Keyword(s):  
Corporate Governance ◽  
Empirical Studies ◽  
The United States ◽  
Corporate Law ◽  
Empirical Literature ◽  
Related Literature ◽  
Takeover Defenses ◽  
The Us ◽  
Governance Quality ◽  
The Impact

This chapter examines the empirical literature on corporate law and governance in the United States. Four areas of the US corporate governance literature are discussed: (i) state competition to produce corporate law, (ii) independent boards, (iii) takeover defenses, and (iv) the use of corporate governance indices. The chapter concludes that these areas of research reflect varying degrees of success. The literature on state competition has been a major success. We know much more in this area as a result of empirical analysis in this area than we did on the basis of theory alone. At the other extreme is the literature on takeover defenses and the related literature that uses governance indices as measures of governance quality. Those empirical literatures are plagued by misunderstandings of how takeovers and takeover defenses work, and many results are therefore not as informative as they appear to be. In between is the literature on the impact of an independent board. Here, empiricists faced perhaps insurmountable challenges in proving causation, but nonetheless exposed informative associations.

International trade in forest products: lumber trade disputes, models and examples

2021 ◽  
Keyword(s):  
United States ◽  
International Trade ◽  
Forest Products ◽  
The United States ◽  
Wood Products ◽  
Forest Sector ◽  
Softwood Lumber ◽  
Background Theory ◽  
The North ◽  
The Impact

Abstract Because of the long-standing Canada-United States lumber trade dispute and the current pressure on the world's forests as a renewable energy source, much attention has been directed toward the modelling of international trade in wood products. Two types of trade models are described in this book: one is rooted in economic theory and mathematical programming, and the other consists of two econometric/statistical models--a gravity model rooted in theory and an approach known as GVAR that relies on time series analyses. The purpose of the book is to provide the background theory behind models and enable readers to easily construct their own models to analyze policy questions, whether in forestry or another sector. Examples in the book illustrate how models can be used to say something about a variety of issues, including identification of the gains and losses to various players in the North American softwood lumber business, and the potential for redirecting sales of lumber to countries outside the United States. The discussion is expanded to include other products besides lumber, and used to examine, for example, the effects of log export restrictions by one naton on all other forestry jurisdictions, the impacts of climate policies as they relate to the global forest sector, and the impact of oil prices on forest product markets throughout the world.

Sensitivity to Issue Framing on Trade Policy Preferences: Evidence from a Survey Experiment

2013 ◽  
Vol 67 (2) ◽  
pp. 411-437 ◽  
Author(s):  
Martin Ardanaz ◽  
M. Victoria Murillo ◽  
Pablo M. Pinto
Keyword(s):  
United States ◽  
International Trade ◽  
Service Sector ◽  
The United States ◽  
Issue Framing ◽  
Survey Experiment ◽  
Informational Cues ◽  
Material Conditions ◽  
Trade Preferences ◽  
The Impact

AbstractWe explore the impact of issue framing on individual attitudes toward international trade. Based on a survey experiment fielded in Argentina during 2007, which reproduces the setup of earlier studies in the United States, we show that individuals' position in the economy and their material concerns define the strength of their prior beliefs about international trade, and thereby mitigate their sensitivity to the new dimensions introduced in informational cues. Extending the analysis beyond the United States to a country with different skill endowments allows us to better explore the role of material and nonmaterial attributes on individual attitudes toward trade. We find that skill is a central predictor of support for openness. The effect is strongest for individuals in the service sector and in cities that cater to the producers of agricultural commodities. Our findings suggest that the pattern of support for economic integration reflects the predictions from recent literature in international economics that emphasizes trade's impact on the relative demand for skilled labor regardless of factor endowments. Our findings also amend recent empirical contributions that suggest socialization is the main factor explaining individual sensitivity to issue framing on trade preferences. We suggest that material conditions associated with income and price effects are crucial, both in shaping trade preferences and in affecting the malleability of attitudes to issue framing. Hence, our results provide a crucial contribution to our general understanding of the attributes shaping susceptibility to political framing in policy debates.

Adoption of and compliance with IFRS in developing countries

2016 ◽  
Vol 6 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Khaled Samaha ◽  
Hichem Khlif
Keyword(s):  
Developing Countries ◽  
Empirical Studies ◽  
Developed Countries ◽  
Equity Capital ◽  
Economic Consequences ◽  
Future Research ◽  
Cost Of Equity Capital ◽  
Content Type ◽  
Ifrs Adoption ◽  
The Impact

Purpose – The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to provide directions for future research. Design/methodology/approach – The review focusses on four main streams including: first, the motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS; third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies specifically devoted to developing countries. Findings – Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting IFRS in developing countries can be justified by two main theories which are: the economic theory of network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical evidence in developing countries to confirm these theories is limited. Regarding the second stream relating to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research is very limited. It was evidenced in the very few research studies conducted, that global disclosure standards are optimal only if compliance is monitored and enforced by efficient institutions. Practical implications – The author’s study attempts to provide a foundational knowledge resource that will inform practitioners, researchers and regulators in developing countries about the relevance of the different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS. Originality/value – Compared to developed countries, the four streams outlined remain under-researched in developing countries. Therefore, researchers should examine these topics in developing countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS and their relevance to developing countries. In addition, researchers should embark on identifying new theories to explain the adoption of and compliance with IFRS in developing countries that take into consideration the socioeconomic culture of these settings.

Changing Attitudes Towards War: The Impact of the First World War

1991 ◽  
Vol 21 (1) ◽  
pp. 1-28 ◽  
Author(s):  
John Mueller
Keyword(s):  
Developed Countries ◽  
The United States ◽  
First World War ◽  
Economic Consequences ◽  
World War ◽  
The First World War ◽  
War Aims ◽  
Historical Movement ◽  
The Impact ◽  
First World

After the First World War the belief became substantially widespread among developed countries that the venerable institution of war should be abandoned from their affairs. It was an idea whose time had come. Historically, the war does not seem to have been all that unusual in its duration, destructiveness, grimness, political pointlessness, economic consequences or breadth. It does seem to have been unique in that (1) it was the first major war to be preceded by substantial, organized anti-war agitation, and (2) for Europeans, it followed an unprecedentedly peaceful century during which even war enthusiasts began, perhaps unknowingly, to appreciate the virtues of peace. Thus the war served as a necessary catalyst for opinion change. The process through which the change took place owes much to British war aims and to their efforts to get the United States into the war. The article concludes with some reflections on the historical movement of ideas.

scholarly journals Free Trade Agreement between Turkey and Russian Federation and its Possible Effects to these Countries’ Trade and Taxational Reflections

2015 ◽  
Author(s):  
Raşit Gültekin ◽  
Mustafa Erkan Üyümez
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Russian Federation ◽  
Regional Integration ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Trade Restrictions ◽  
The Impact

The last period of international trade in goods covers a process carried out with globalization and regionalization efforts. Many countries, on the one hand, take part in arrangements that are executed under the leadership by global actors and aim at removing or reducing conventional obstacles to international trade, on the other hand, participate in various and regional economic integrations to provide a more deep and comprehensive economic cooperation and to cope with the competition and trade restrictions which continually increasing due to political, commercial and economical motives. Trade relations between Turkey and Russian Federation is an important element of the two countries' multidimensional cooperation. The most effective attempt to raise the top level of the volume and quality of existing commercial relationships will be the signing and putting into practice of a comprehensive free trade agreements between the two countries that have not been done previously. The purpose of this study is to determine the potential effects of such a free trade agreements between Turkey and Russian Federation in terms of trade in goods between two countries. To this end, in this study, theoretical aspects of free trade agreements' effects and place within regional integration types will be considered the impact of the possible Turkey-Russia free trade agreement will be examined in a framework of basic provisions with customs duties that set out in free trade agreements, recent trade data and key issues related to these countries.

Sign in / Sign up

Export Citation Format

Share Document