International trade

Joshua Aizenman, Yothin Jinjarak, Huanhuan Zheng, 04 May 2015

China’s export-led growth has coincided with the country becoming one of the largest net global creditors. This column looks ahead to the next chapter of Chinese ‘outwards mercantilism’ – FDI investment in natural resources, commodities and mining bundled with access to finance and the export of Chinese capital products and labour services.

Emily Blanchard, Xenia Matschke, 30 April 2015

Recent decades have witnessed a dramatic shift in the nature of world trade brought about by the unbundling of international production. One implication is that lobbying by a nation’s firms can be partly influenced by a desired to protect their production facilities abroad. This column presents evidence that US imports from countries and industries with greater offshoring activity by US multinationals face distinctly lower trade barriers. 

Andrew Powell, 28 April 2015

Commodity prices are very persistent. A boom is always followed by a bust, and after a slump, a boom comes along. This column reviews some basic aspects of commodity theory and their role in the last boom. Finally, it presents arguments stating that lower commodity prices are here to stay for a while. We may have to wait many years for the next boom to come along.

Katharina Eck, Martina Engemann, Monika Schnitzer, 20 April 2015

Credits extended bilaterally between firms, so called trade credits, are particularly expensive yet many firms use it, especially for international transactions. This column argues that such cash-in-advance financing serves as a credible signal of quality. Data from a unique survey of German firms show that it fosters export participation in particular for firms that tend to have the greatest difficulties in entering foreign markets.

Juan Carluccio, Denis Fougère, Erwan Gautier, 14 April 2015

International trade has significant effects on domestic labour demand. It opens up new markets for export, but also creates opportunities for off-shoring. This column presents the results of a study on trade, wages and collective bargaining using data on French manufacturing firms. Both exporting and offshoring are found to have positive effects on wages, with collective bargaining agreements, particularly those at the firm-level, seeing greater wage gains for all types of worker.

Other Recent Articles:

Events