Gianmarco I.P. Ottaviano, Giovanni Peri, Greg C. Wright, Wednesday, June 17, 2015

International trade in services and immigration are among the fastest growing aspects of globalisation. Using UK data, this column explores the links between these phenomena. Immigrants promote exports of final services to their home countries, while also reducing imports for some intermediate services, and bringing productivity gains to the labour market. In designing immigration policies, it is important that the potential impact on exports and offshoring activities are carefully considered.

Juan Carluccio, Denis Fougère, Erwan Gautier, Tuesday, April 14, 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.

Mario Mariniello, Saturday, November 9, 2013

Since the adoption of the Anti-Monopoly law in 2007, the Chinese competition authorities have stepped up enforcement of mergers and anti-competitive practices. The Chinese Ministry of Commerce has relied heavily on behavioural remedies in merger cases (as opposed to the more efficient structural remedies favoured by the European Commission). Furthermore, merger policy has been used to protect domestic industries from competition. In contrast, Chinese fines for cartels have shown no foreign bias, and if anything have been too low.

Hector R. Torres, Saturday, September 21, 2013

'Special and differential treatment' was justified on the basis that developing countries lacked the fiscal resources to smooth the transition to free trade. However, despite improved fiscal circumstances, exceptions to WTO rules remain in place. Establishing an independent watchdog for the WTO could help it to address these issues.

Ursula Fritsch, Holger Görg, Monday, September 23, 2013

Outsourcing is a controversial practice. This column looks at its effects on firm-level innovation in emerging markets. The authors find robust evidence that outsourcing is positively related to various innovation measures. However, outsourcing only leads to increased R&D spending in countries where intellectual-property rights are well-protected.

Marc Auboin, Martina Engemann, Monday, December 3, 2012

What effect does trade finance have on international trade? This column uses new data to stress the importance of trade finance for international trade both in crisis and in non-crisis periods. The major policy lesson is that there must be high levels of market incentives for supplying trade credit, particularly during a period of ‘deleveraging’ of the financial system. That said, trade credit statistics could be vastly improved if we wish to continue comparing global trade finance transactions against global trade.

J. Bradford Jensen, Monday, November 19, 2012

Should developed countries fear trade in services? Won’t high skilled jobs be lost to cheaper, developing country service workers? This column argues that trade in services represents a profitable opportunity as long as international trade in services is liberalised. The US and other developed countries should aggressively pursue fairer and thus more favourable terms under the WTO’s Government Procurement Agreement.

Jorge Andrade da Silva, Lucian Cernat, Thursday, February 9, 2012

Natural disasters often hit developing countries hardest. To add to the devastating death toll, trade and development can be knocked off course. This column suggests that exports of small developing countries fall by nearly a quarter, and that this effect can be felt for up to three years. Exports of larger developing countries, on the other hand, are not significantly affected.

Chad P Bown, Monday, August 29, 2011

While the Great Recession has not led to a massive global resort to protectionism, governments have nevertheless been active with their trade policy during the crisis. This column explores how governments adjusted the scale and composition of their temporary trade barriers – antidumping, safeguard, and countervailing-duty policies –during the crisis, as well as how policy use fits recent historical context and creates the need for post-crisis policy reform.

Robert Johnson, Guillermo Noguera, Tuesday, June 7, 2011

Roughly two-thirds of international trade is in intermediate goods. As a result, measures of trade flows that tally the gross value of goods at each border crossing lead to a distorted view of world trade. Using a value-added measure, this column finds that the controversial US-China imbalance is in fact around 40% smaller than many people think.

Uri Dadush, Shimelse Ali, Rachel Esplin Odell, Tuesday, June 7, 2011

The limited resort to protectionism during the financial crisis is often attributed to the WTO or to sensible macroeconomic policy. This column argues that there is more to the story. The combination of national laws, regional agreements, and powerful interest groups has worked to stop protectionism in its tracks.

Peter Sutherland, Friday, May 27, 2011

Peter Sutherland talks to Viv Davies about the final report of the high-level trade experts group, published this week, on 'World Trade and the Doha Round'. The report traces the imminent failure of the Doha Round back to what the authors consider to be "a deficit of political leadership"; they also make the case for why the WTO matters. The interview was recorded in London on 24 May 2011. [Also read the transcript.]

Michael Bordo, Peter L Rousseau, Thursday, May 26, 2011

How interconnected are finance, trade, and economic growth? This column looks to the past in search of an answer. Examining economies that traded across the Atlantic, it finds that finance and trade reinforced one another between 1880 and 1914 but these links were absent in the post-war period. Financial development has been strongly related to growth throughout the last 130 years, whereas trade had a direct effect on growth only after 1945.

Filippo di Mauro, Benjamin R. Mandel, Thursday, May 5, 2011

Has the global crisis changed international trade forever? This column presents a Q&A on global trade taken from a new eBook from the European Central Bank: “Recovery and Beyond”.

Ejaz Ghani, Arti Grover Goswami, Homi Kharas, Wednesday, May 4, 2011

Services have long been the main source of growth in rich countries. This column argues that services are now the main source of growth in poor countries as well. It presents evidence that services may provide the easiest and fastest route out of poverty for many poor countries.

Viv Davies, Wednesday, April 27, 2011

The Doha Development Agenda (DDA) has made very little progress in ten years. If it fails to be completed, the impact on world trade and the global economy could potentially be very damaging, with serious implications for the credibility and future of the WTO. Many commentators suggest that the Doha Round is dying of political neglect and that its revival requires the immediate intervention and committed support of G20 leaders; others argue that gaining such support at this very late stage is unrealistic. CEPR held a high-level trade seminar in London on 14th April to discuss the issue.

Viv Davies, Wednesday, April 27, 2011

The Doha Development Agenda (DDA) has made very little progress in ten years. If it fails to be completed, the impact on world trade and the global economy could potentially be very damaging, with serious implications for the credibility and future of the WTO. Many commentators suggest that the Doha Round is dying of political neglect and that its revival requires the immediate intervention and committed support of G20 leaders; others argue that gaining such support at this very late stage is unrealistic. CEPR held a high-level trade seminar in London on 14th April to discuss the issue.

Theresa Carpenter, Andreas Lendle, Friday, March 25, 2011

How much of world trade is preferential? This column uses tariff data covering around 90% of world trade in 2008 to show that only 16.3% of world trade is eligible for preferences. It shows that preferences reduce the global trade-weighted tariff from 3% to 2%.

Lucian Cernat, Marlene Rosemarie Madsen, Wednesday, March 23, 2011

Compared to recent headline-grabbing events, dealing with “behind-the-border barriers” and keeping protectionist tendencies at bay might seem to be small potatoes. This column argues that the “murky protectionism” that affects €100 billion of trade will have profound implications for Europe and the rest of the world, and as such is worthy of attention.

Carmen M Reinhart, Vincent Reinhart, Friday, February 25, 2011

Sudden stops and reversals in capital flows are the stuff of policymakers’ nightmares. This column builds on the last 20 years of research and argues that the capital-inflow dilemma is not an external problem – it is an eternal one.

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