scholarly journals Globalization And The Federal Reserve

2011 ◽  
Vol 3 (2) ◽  
Author(s):  
Michael Cosgrove ◽  
Daniel Marsh
Keyword(s):  
Developing Countries ◽  
Free Trade ◽  
Federal Reserve ◽  
Developed Countries ◽  
Central Banks ◽  
Gains From Trade ◽  
Global Marketplace ◽  
Monetary Policies ◽  
Developed Economies ◽  
The U.S

A group of developing countries including China, India and Mexico entered the global marketplace post-1980 making a major contribution to disinflation in the U.S. and other developed countries. Movement by developing countries toward free trade led to unexpectedly large gains from specialization and exchange including the contribution to global disinflation through flows of goods, capital, technology and in particular abundant labor. These gains from trade led to a slowing in U.S. cost-push inflation pressures and enhancement of productivity gains. Gains from free trade have been widespread, with benefits accruing to both developed and developing countries in the period since 1980. In comparison, gains from trade were restricted primarily to developed economies in the 1945 to 1980 time period.The Federal Reserve and other central banks followed monetary policies conducive to the post-1980 period of disinflation but the contribution to disinflation through gains from trade does not seem to be incorporated into the monetary policy of central banks. In Japan, disinflation turned into deflation and Germanys disinflation is on the verge of doing the same. Deflation concerns are also voiced in the U.S. The premise of this paper is that the overshoot from the price stability objective to deflation fears or outright deflation on part of the Federal Reserve and other major central banks is due to gains from trade with developing countries. Policy implication -- the Federal Reserve and other central banks need to increase the quantity of money at a more rapid pace than would normally occur to account for the contribution to disinflation from gains from trade among developed and developing countries.

The Impact of Global Liquidity on Developing Countries

2017 ◽  
pp. 265-282
Author(s):  
Erhan Genç ◽  
Mustafa Karabacak
Keyword(s):  
Developing Countries ◽  
Financial Stability ◽  
Focal Point ◽  
Developed Countries ◽  
Monetary Policies ◽  
Growth Performances ◽  
Excess Liquidity ◽  
Causality Tests ◽  
Global Liquidity ◽  
National Economies

Global liquidity has become a focal point of international political discussions in recent years. Increasing international financial asset transactions and expansionary monetary policies, which central banks of developed countries adopt, generate excess liquidity around the world. Today with the increasing capital mobilization excess global liquidity becomes effective on the national economies and monetary policies of developing countries as well. It is seen that increasing risk appetite, especially after 2008 global crisis, causes a flow of global liquidity from developed countries to developing countries. The so-called liquidity may be effective on monetary policy stability, financial stability and growth performances. In other words; the increasing global liquidity may have both positive and negative influences on national economies. In this context; in this study, the effects of global liquidity on national economies is analyzed by using the measures of global liquidity and causality tests.

scholarly journals From Preferential Trade Arrangements to Free Trade Agreements: One of the Downturns of Cooperation in International Relations?

2020 ◽  
Vol 9 (8) ◽  
pp. 139 ◽  
Author(s):  
Jose Jaime Baena-Rojas ◽  
Susana Herrero-Olarte
Keyword(s):  
Developing Countries ◽  
International Relations ◽  
Free Trade ◽  
World Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Developed Countries ◽  
Tariff Preference ◽  
Preferential Trade ◽  
Trading Partners

Since the signing of the General Agreement on Tariffs and Trade (GATT) and the creation of the World Trade Organization (WTO), preferential trade agreements (PTAs) have been an interesting tool to promote international cooperation through the granting of non-reciprocal and/or unilateral tariff preferences by developed countries to developing countries. These international agreements have tended to generate critical trade dependencies for the receiving countries. Due to the circumstances of world trade and due to the lack of interest of the grantors to maintain this type of tariff preference, these developing countries are forced to renegotiate their PTAs into to free trade agreements (FTAs). To demonstrate this, we conducted a qualitative analysis to characterize the behavior of PTAs and their impact on the configuration of FTAs and to obtain indicators and trends. The results suggested a predominance of FTAs and a decline in PTAs. This was done to maintain access to the markets within those granting countries, which also became the main trading partners of these PTA recipient countries.

scholarly journals How Costly is Protectionism?

1992 ◽  
Vol 6 (3) ◽  
pp. 159-178 ◽  
Author(s):  
Robert C Feenstra
Keyword(s):  
North America ◽  
Free Trade ◽  
Foreign Firms ◽  
Gains From Trade ◽  
Free Trade Areas ◽  
Policy Perspective ◽  
Global Policy ◽  
Foreign Countries ◽  
The U.S

How costly is protectionism? This paper begins from a U.S. perspective, examining the costs to both the U.S. and other countries from U.S. protectionism. It emphasizes that substantial costs are imposed on foreign countries by U.S. protectionism. These costs result from the highly selective nature of protection in particular industries and against particular exporting countries. No discussion of the costs of protection would be complete without mentioning the increasing levels of investment by foreign firms within the U.S. economy. The paper next moves to a more global policy perspective. The emerging free trade areas in Europe, North America, and Asia raise the prospect of gains from trade within each region but also the possibility of global costs from protectionist actions across the regions.

scholarly journals The Implications of A South-South Customs Union On Tariffs, Welfare, and The Prospect of Global Free Trade

1970 ◽  
Vol 27 (1) ◽  
pp. 75-91
Author(s):  
Hiranya Nath ◽  
Halis Yildiz
Keyword(s):  
Developing Countries ◽  
Free Trade ◽  
Trade Agreements ◽  
Developed Countries ◽  
Trade Negotiations ◽  
Customs Union ◽  
Doha Round ◽  
Multilateral Trade ◽  
Oligopoly Model ◽  
The North

Following the failure of multilateral trade negotiations at the Cancun meetingand the Doha Round, developing countries have pursued an alternative in so called"south-south" trade agreements. Since these agreements lead to trade diversionfrom efficient north (developed) countries to less efficient south (developing)partners, there have been widespread concerns regarding their welfare implications.Using a three country oligopoly model of trade, we first examine staticallythe implications of a south-south customs union (CU) on the pattern of tariffs andwelfare. We find that south countries always have incentives to form a CU that reducesthe welfare of the north country. Moreover, when south firms are sufficientlyinefficient relative to north firms, a south-south CU leads to a large trade diversioneffect and reduces world welfare. We further show that, in a repeated interactionmodel, free trade is less likely to be sustainable under the south-south CU relativeto no agreement.

The Law and Political Economy of International Trade Agreements

2019 ◽  
Author(s):  
Michael Trebilcock
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Free Trade ◽  
Comparative Advantage ◽  
Trade Agreements ◽  
Developed Countries ◽  
Preferential Trade Agreements ◽  
Preferential Trade ◽  
Multilateral Trade ◽  
Wide Range

While economists overwhelmingly favor free trade, even unilateral free trade, because of the gains realizable from specialization and the exploitation of comparative advantage, in fact international trading relations are structured by a complex body of multilateral and preferential trade agreements. The article outlines the case for multilateral trade agreements and the non-discrimination principle that they embody, in the form of both the Most Favored Nation principle and the National Treatment principle, where non-discrimination has been widely advocated as supporting both geopolitical goals (reducing economic factionalism) and economic goals (ensuring the full play of theories of comparative advantage undistorted by discriminatory trade treatment). Despite the virtues of multilateral trade agreements, preferential trade agreements (PTAs), authorized from the outset under GATT, have proliferated in recent years, even though they are inherently discriminatory between members and non-members, provoking vigorous debates as to whether (a) PTAs are trade-creating or trade-diverting; (b) whether they increase transaction costs in international trade; and (c) whether they undermine the future course of multilateral trade liberalization. A further and similarly contentious derogation from the principle of non-discrimination under the multilateral system is Special and Differential Treatment for developing countries, where since the mid-1950s developing countries have been given much greater latitude than developed countries to engage in trade protectionism on the import side in order to promote infant industries, and since the mid-1960s on the export side have benefited from non-reciprocal trade concessions by developed countries on products of actual or potential export interest to developing countries. Beyond debates over the strengths and weaknesses of multilateral trade agreements and the two major derogations therefrom, further debates surround the appropriate scope of trade agreements, and in particular the expansion of their scope in recent decades to address divergences or incompatibilities across a wide range of domestic regulatory and related policies that arguably create frictions in cross-border trade and investment and hence constitute an impediment to it. The article goes on to consider contemporary fair trade versus free trade debates, including concerns over trade deficits, currency manipulation, export subsidies, misappropriation of intellectual property rights, and lax labor or environmental standards. The article concludes with a consideration of the case for a larger scope for plurilateral trade agreements internationally, and for a larger scope for active labor market policies domestically to mitigate transition costs from trade.

Trend on the protection of traditional knowledge associated with genetic resources within intellectual property chapters of Free Trade Agreements: the Peruvian experience

2019 ◽  
Vol 14 (9) ◽  
pp. 728-738
Author(s):  
Diego Francoise Ortega Sanabria
Keyword(s):  
Developing Countries ◽  
Intellectual Property ◽  
Genetic Resources ◽  
Traditional Knowledge ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Developed Countries ◽  
Benefit Sharing ◽  
Legitimate Interests

Abstract During negotiations of Free Trade Agreements, the bargaining power of developed countries has pushed developing countries to yield to higher standards of intellectual property protection in exchange of commercial benefits. However, there is evidence that developing countries can also seek and ensure the adoption of measures aimed at safeguarding their legitimate interests as a result of these negotiations. An example is Peru, which has sought to ensure the inclusion of provisions to require patent applicants to disclose the origin of the genetic resources and the associated traditional knowledge when they are used in the development of an invention, as well as the presentation of the evidence as to the prior informed consent from their legitimate owners and the corresponding equitable benefit-sharing. This article seeks to analyze whether the terms finally adopted have had a real impact on the protection of the Peruvian traditional knowledge associated with genetic resources.

scholarly journals Biotechnology and Entrepreneurship in Developed and Developing Countries

2017 ◽  
pp. 39-49
Author(s):  
Shukrah M. ◽  
Abba, U.
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Management Strategies ◽  
Developed Countries ◽  
Developing Nations ◽  
Developed Economies ◽  
The Individual ◽  
Collection Methods ◽  
Distinct Field

Biotechnology entrepreneurship is now associated with a sustained flow of innovations and tools, offering dramatic improvements in human health and a compelling value proposition for health care and agricultural consumers as a result of entrepreneurial orientation being applied. Biotechnology entrepreneurship in developed and developing nations like that of Japan, China, India and that of Nigeria and even some Asian countries is relatively new and distinct field of entrepreneurial endeavors. Most current empirical researches are conducted in the developed economies and cannot be directly extrapolated to the developing economies. This research used a qualitative research method. The data collection methods were interviews, documents review and observations, which improved the quality of the research through data triangulation. In addition, some factors that influence the process of biotechnology entrepreneurship in developed and developing countries were identified as regulation, funding, infrastructure, skills, entrepreneurial and commercialization capabilities, etc. Biotechnology entrepreneurship in developed countries predominantly uses the “system approach” and the “individual approach” in developing nations. The process of biotechnology entrepreneurship in developed countries differs from the process in developing nations due to the differences in the environmental factors that influence biotechnology entrepreneurship, and management strategies, in these economies.

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