International trade

Rosario Crinò, Laura Ogliari, 29 July 2015

The production of high-quality goods influences key aspects of countries’ economic performance, including growth and development. This column argues that removing credit market imperfections may help countries transition from the production of low-quality to high-quality goods, especially in industries that are more sensitive to financial frictions.

Sourafel Girma, Yundan Gong, Holger Görg, Sandra Lancheros, Christiane Krieger-Boden, 24 July 2015

In the run-up to WTO accession in 2001, China considerably liberalised its policy towards FDI. This column argues that foreign acquisitions contributed significantly to raising export activities and R&D activities, though rather through joint ventures than whole acquisitions.

Kazutaka Takechi, 16 July 2015

With mega trade deals currently being negotiated, it is imperative to fully understand the various effects of trade policy. This column focuses on the implications of product quality and the type of trade costs for trade policy. Using data on agricultural prices from Japan, it argues that specific trade costs are more sensitive to geographic distance than ad valorem costs. The welfare effects of policy initiatives such as improving infrastructure may hence be larger than previously thought.

Ewout Frankema, Jeffrey G. Williamson, Pieter Woltjer, 14 July 2015

The partitioning of Africa by European imperial powers in the late 19th century irreversibly transformed the long-term development trajectories of African economies. Yet, the motives for, and timing of, the scramble remain poorly understood. This column argues that the changes in African international trade over the course of the 19th century created an economic rationale for the African scramble. This episode offers insights that are relevant for current African economic development.

Johan Hombert, Adrien Matray, 11 July 2015

The rise of China has been identified as a major source of disruption for the manufacturing sector in high-income economies. This column argues that innovation helps firms to escape import competition from low-wage countries. It uses variation in R&D tax credits across years and US states to show that firms' R&D capital stock has a causal effect on their resilience to trade shocks.

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