Trade Policy Regime Research Articles

Growth and trade dynamics under regime shifts in Australia

Uses parametric Granger causality techniques to test whether trade acted as an engine of growth during the period 1971(2)‐1994(2) in Australia. The causality tests were performed on time‐series data that were filtered after unit root and cointegration testing. During the study period there was a dramatic shift from a protectionist to a more liberal trading regime in Australia. Superexogeneity tests were applied to the conditional growth and the marginal trade policy models derived by the application of general to specific methodology. The superexogeneity tests examined whether the shift from a protectionist to a more liberal trading regime in the mid‐1980s undermined the structure of Australian trade growth dynamics as foreshadowed in the Lucas critique. Reviews the macropolicy implications of the trade policy regime shift.

Foreign Import Restrictions, WTO Commitments, and Welfare Effects: The Case of Republic of Korea

This paper examines foreign import restrictions on Republic of Korea’s exports and its two policy responses: a domestic response in trade policy, investment policy, and foreign exchange regime; and an external policy response in the form of WTO commitments. The paper also analyzes the welfare effects of trade liberalization under WTO Agreements based on two alternative tariff reduction scenarios using a computable general equilibrium model. The simulation results indicate that WTO is expected to create annual gains of US$38 to 50 billion globally, with Korea expected to gain relatively the most from the global implementation of the commitments by WTO member countries, earning $3.3 to 3.7 billion. Therefore, Korea’s policy response to increasing protectionism abroad in the form of a full commitment to WTO Agreements is fully warranted.

Foreign Direct Investment and Growth in EP and is Countries

This paper examines, within a new growth theory framework, the role that foreign direct investment plays in the growth process in the context of developing countries characterized by differing trade policy regimes. The paper tests, using cross-section data relating to a sample of forty-six developing countries, the hypothesis advanced by Jagdish Bhagwati, according to which the beneficial effect of foreign direct investment, in terms of enhanced economic growth, is stronger in those countries that pursue all outwardly oriented trade policy than it is in those countries adopting an inwardly oriented policy. Copyright 1996 by Royal Economic Society.

A Primer on Static Applied General Equilibrium Models

In this paper, we describe and analyze the basic structure of the applied general equilibrium (AGE) models used to assess the effects of government trade policies. Once we have constructed the basic model, we extend it to cover features such as increasing returns to scale, imperfect competition, and differentiated products, following the AGE modeling trend of the past 10 years. We then compare a static AGE model's predictions with the actual data on how Spain was affected by entering the European Community and find that, when exogenous effects are included, a static AGE model's predictions are fairly accurate.

New Horizons? Third World Industrialization in an International Framework

Part 1 The international framework: the evolution of an interdependent world - world production and trade in the 19th century, the world economy in the 20th century, economic cycles and their impact international trade and economic growth - international trade theory and the Third World, price behaviour of primary products, terms of trade capital constraints on Third World development - capital flows into Latin america since World War II, capital flows and the Third World. Part 2 Perspectives on industrial growth in the Third World: theories of industrialism and the role of government - the Rostow model, the Gerschenkron model, the Parsonian approach, relevence for Third World industrialization, the role of government trade policy and industrialization - trade strategies and industrial growth, trade liberalism in Chile 1973-87, implications of the Chilean model global shift? product life cycles and protectionism technological change - economies of scale, import substitution, export promotion, import substitution, export promotion and technological change the multinational corporation and Third World industrialization - changing nature and spatial influence of multinational corporations, some theoretical perspectives. Part 3 Case study: The global case industry and the Third World - past transformations in the world car industry, the fourth transformation?, the Third World car industry - strategies for growth, technological divergence - Third World as marginal producer. Part 4 Continental perspectives: Latin America - the heritage of inward-oriented industrialization - the origins and nature of inward orientation, towards a new phase of outward orientation?, inward orientation and spatial concentration East Asia - the heritage of outward orientation - the Japanese case study, prospects for further generations of industrializing countries in East Asia Third World industrialization in an international framework - the case for outward orientation, the future for industry in the Third World, the Pacific rim-focus of manufacturing growth into the 21st century.

Exports, manufacturing linkages, and employment in the Philippines, 1961 to 1983

Three resource-rich Southeast Asian nations-Indonesia, Malaysia, and Thailandhave demonstrated strong economic growth for the last 30 years. In the 1960s real growth of GDP ranged from 4% for Indonesia to nearly 8% for Thailand. These GDP growth rates, though lower than those of the Asian NIEs, were much higher than the average for LDCs. Southeast Asia’s per capita income growth of 4 to 5% annually has been impressive. The lone exception has been the Philippines. The assassination of Senator Aquino, of course, triggered a serious political crisis, but the Philippine problem began much earlier than 1983. Economic growth has slowed since the late 1970s. Per capita income growth over the period from 1965 to 1985 averaged less than 2%, comparable to that of South Asian countries. l The weakness in the growth record is reflected in the long-term unsustainability of industrial growth rates and the poor record of labor absorption. The central purpose of this article is to examine, using input-output techniques, how trade policies may have affected patterns of industrial growth in the Philippines. Moreover, since one of the important objectives of the developing countries is to minimize their unemployment (especially in urban areas), the relationship between industrial growth and employment will also be examined. An unbroken string of studies on the Philippine industrial and trade policy regime (Golay, 1961; Power and Sicat, 1971; Sicat, 1974; Baldwin, 1975; Bautista and Power, 1979; Sicat, 1984; Hooley, 1985; Shepherd and Alburo, 1991) provide a running commentary on the Philippine development experience. The recurring

Foreign exchange premia and non-neutrality of monetary policy in general equilibrium models

We present a simple monetized extension of a traditional small-country, real-side, general equilibrium trade model in which premia on foreign exchange occur, with the value of the quota and the quota premium endogenously determined. Monetary policy is non-neutral in the model, and has real effects, illustrated using a small open economy general equilibrium model of the Philippines, which includes foreign exchange premia. The results emphasize the importance of incorporating domestic monetary policy, fixed exchange rates and associated foreign exchange premia when analyzing the trade policy regime in such a country.

The spatial spread of container transport in a developing regional economy: North Sumatra, Indonesia

As a capital intensive transport technology linked to industrialized economies, containerization has only recently penetrated the non-Western, developing periphery. The spatial spread of this revolutionary technology through the transport surface of a developing region encounters numerous institutional and technological barriers which are only removed by a reformulation of government trade and transport policies. In examining the spread process of container technology at the Port of Belawan and its hinterland of North Sumatra, Indonesia, attention is given to the important role of policy as a catalyst to the spatial penetration of this foreign imposed transport mode. Some negative consequences of technology adoption are explored and a spatial penetration model of container technology in a developing regional economy is proposed.

Trade Policy and Global Corporate Strategy

This article is an investigation of the linkages between the international trade and investment strategies of firms faced with global competition and the structure of protectionism. The first section briefly reviews the problems faced by businesses competing in a global environment characterized by triad power. It also provides a new framework which describes the various strategic alternatives available to firms when dealing with government trade policy. In the second and third sections, this theoretical framework is applied to explain a new global trading phenomenon: the recent escalation os U.S. protection. It is demonstrated how such protection can severely affect the environment for corporations when used as a strategic weapon by U.S. firms against foreign rivals. The fourth section assesses the response of Canadian firms faced with the issue of U.S. administered protection. It demonstrates how they have been able to influence government policy in order to diminish the impact of U.S. pr...

U.S. Farm Programs and Their Impact on Exports: A Metaphor for International Trade Policy

This paper addresses the issue of farm programs and their impact on United States exports. It suggests an alternative policy to deal with the problems of low prices, surpluses, excessive supports and augmented competition abroad. The authors depict the current situation in the U.S. farm economy first by reviewing the farm programs from the inception to the present time, their impact on supply and demand for farm products at home and abroad, and the competitive reactions from other countries, especially the European Community. The authors then introduce a policy of international cooperation in farm trade that emphasizes a free market system and focuses on issues of contention among U.S. trade partners. Using U.S. farm policy in general, the paper advocates general cooperation with other countries on the international front and an integrated policy‐making process in the domestic economy that articulates the government trade policy with a single strong voice.

Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes. Jagdish N. Bhagwati

Previous articleNext article No AccessBook ReviewsForeign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes. Jagdish N. Bhagwati Deepak LalDeepak Lal Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 89, Number 4Aug., 1981 Article DOIhttps://doi.org/10.1086/261006 Views: 2Total views on this site Citations: 1Citations are reported from Crossref Copyright 1981 The University of ChicagoPDF download Crossref reports the following articles citing this article:Phocenah Nyatanga Zimbabwe’s Trade Performance Under Alternative Trade Policy Regimes, Foreign Trade Review 52, no.22 (Apr 2017): 90–105.https://doi.org/10.1177/0015732516663316

THE BATTLE OVER PROTECTIONISM: HOW INDUSTRY ADJUSTS TO COMPETITIVE SHOCKS

When an industry faces strong competition, it can adjust or seek protection through government trade policy. A look at the causes, course, and consequences of such competitive shifts in the steel and consumer electronics industries shows why the battle over protectionism has heated up recently.

Insulating Trade Policies, Inventories, and Wheat Price Stability

Insulating Trade Policies, Inventories, and Wheat Price Stability

The Industrial and Trade Control Regime and Product Designs in India

Numerous studies have concluded that the restrictive industrial and trade control regimes adopted by many semi-industrial countries have been responsible for inefficient allocation of resources. These studies typically have been concerned with cases where the control regimes led to production of goods in which developing countries do not have a comparative advantage or raised the cost of production above the minimum attainable.' This paper discusses a closely related but nonetheless distinct cost of one such control regime: the designs of many engineering goods produced in India during the 1960s were not the most efficient ones available for the products concerned. Producer goods were manufactured to designs which were technologically obsolete or economically inefficient. Similarly, consumer goods were produced to designs which were inefficient for the tastes and incomes prevailing in India. The first section of the paper examines design deficiencies of a number of Indian engineering goods. The second section discusses the role of government industrial and trade policies in explaining why goods with inefficient designs were produced. The concluding section considers the possibility that the industrial and trade control regime not only led to inefficient resource allocation but also reduced the rate of technological change. It also discusses the implications of the study for semi-industrial countries which are attempting to make a transition from import substitution to export in the case of new manufactured goods.