Non-member Countries Research Articles

Comércio internacional de tecnologias ambientais: o padrão histórico em análise

Durante as negociações da Rodada Doha (2001-2007), diversos estudos reportaram a preocupação dos países em desenvolvimento com as negociações sobre a liberalização do comércio de bens e serviços ambientais. Partindo dessa discussão inicial, o presente artigo analisa o comércio internacional de tecnologias ambientais entre 2002 e 2013, mais especificamente os fluxos de comércio entre os países-membros da OCDE e os não membros. O objetivo é analisar em que medida os países desenvolvidos seguem na liderança das exportações e aqueles em desenvolvimento limitam-se à condição de importadores de bens ambientais. Os resultados evidenciam este padrão de comércio, mas o cenário muda com a ascensão da China e o declínio da participação dos EUA e do Japão. No tocante ao nível de proteção tarifária sobre bens ambientais, os países-membros da OCDE seguem muito mais abertos, ou seja, aplicam baixas tarifas médias de importação comparadas àquelas dos países não membros.

Do Preferential Rules of Origin Reverse Trade Creation and Trade Diversion?

ABSTRACTRestrictive preferential rules of origin (PROOs) moderate the ‘trade diversion and trade creation’ effects of free trade agreements (FTAs). Moderation effects occur because restrictive PROOs reverse the increase in the relative price of non-member country goods initially caused by FTAs. Such a reversal arises because high compliance costs associated with restrictive PROOs lead to a lower utilization of tariff preferences by member countries. With a lower utilization, the increase in the relative price of non-members country goods would be smaller than it could have been with a full utilization. Thus, restrictive PROOs will lead to less than full trade diversion from non-members to member countries, and less than complete trade creation to member countries. This paper infers the effect of restrictive PROOs on intra-regional trade from the estimated parameters of the revenue function, on the presumption that trade diversion refers to a decrease in the elasticity of substitution between import sources, and that trade creation refers to a difference between the change in import price elasticity and the trade diversion effect. Empirical results support the conjecture that restrictive PROOs move in the opposite direction of FTAs partly undoing the trade diversion and trade creation effects of FTAs.

Minilateralism or the UNFCCC? The Political Feasibility of Climate Clubs

Climate clubs, or “minilateralism,” are increasingly advocated as a way to move global climate governance forward. Minilateralism supposedly carries structural advantages that facilitate effective climate governance. Some have cautioned, however, that climate clubs lack political legitimacy, commanding little domestic public support. Consequently, small coalitions might not always be politically feasible, even if they could deliver substantial mitigation. Design features like the emission share regulated, commitment structure, club goods, and sanctions against nonmembers could help mitigate this deficit. I report results from conjoint experiments testing these propositions that were conducted with nationally representative samples in the United States and India. The findings indicate that minilateral approaches per se tend to receive low public support, but that support can be increased by certain configurations of design elements, especially through a combination of club goods for members and sanctions against nonmember countries. Climate clubs therefore need careful institutional design to be politically feasible.

Regionalism and conflict: Peace creation and peace diversion

We investigate the implications of preferential trade agreements (PTAs) for interstate conflict. We set up a two-stage game with three competing importers, where first, two of the countries decide on whether to initiate war against each other, and subsequently, all three countries select their import tariffs. We show that PTAs produce both a “peace-creation” effect and a “peace-diversion” effect, whereby they reduce the likelihood of conflict between member countries (peace creation), but render the eruption of war between member and non-member countries more likely (peace diversion). This paper is the first to identify and explicitly model the peace-diversion effect of PTAs, and is also the only one in this literature to endogenize countries' terms of trade. We use data from the Correlates of War project to empirically test these predictions, and after controlling for endogeneity, we find robust evidence of both peace creation and peace diversion in relation to PTA establishment.

Regional agreements, trade cost and flows in the Pacific

This paper investigates the effects of regional trade agreements initiated during the last two decades on the trade flows between small island states situated in the South Pacific Ocean. The agreements have contributed to the growth of regional trade flows positively, but to a limited extent due to a significant trade diversion to non-member countries. We argue that the incentive of trade with a large non-member country tends to be more than that with a small regional member because of limited demand, scale and industrial activities. Though the trade barriers have declined substantially in the Pacific, high trade costs due to poor logistics, bureaucratic regulations and weak institutions compared to the neighbours have remained the binding constraints for deriving potential benefits from such agreements. Collective negotiations for external trade and developing common logistics and institutions for facilitating trade among the members would encourage regional trade flow and minimize asymmetric gains among the members.

Human Rights Regimes, Reputation, and Foreign Direct Investment

What are the effects of international human-rights regimes on foreign direct investment (FDI)? Existing scholarship generally suggests a negative relationship between human-rights violations and FDI. Furthermore, research shows that international regimes can have effects on third parties such as non-member countries and other nonstate actors. However, it remains unclear how a country’s participation in human-rights regimes could affect investors’ decisions. I argue that host country participation in human-rights regimes provides a “reputational umbrella” for investors and therefore positively affects FDI. This effect proves stronger in countries with poor human rights records. Interestingly, investors appear not to punish human-rights violations if the state is a party to many human-rights regimes. Empirical analyses on a sample of 135 developing countries, from 1982 to 2011, provide support for the existence of these direct and indirect effects. The findings help to disentangle reputational effects from other possible causal mechanisms. Results are robust to various model specifications, including tests for endogeneity and reverse causality.

The impact of regional investment liberalization on foreign direct investment: A firm-level simulation assessment

With the proliferation of regional economic integration, investment liberalization has gained in importance. This paper conducts counterfactual policy experiments to simulate the response of multinational firms to a regional decline in investment costs. We find evidence of investment creation effects at the aggregate level. While there is weak evidence of investment diversion effects, the non-participation in regional integration discourages multinational activity of non-member countries. As less productive firms experience the extensive-margin growth strongly, the effects differ significantly by multinational firms with heterogeneous productivity.

Measuring the economic impacts of trade liberalisation on forest products trade in the Asia-Pacific region using the GTAP model

SUMMARY The paper examines the effects of unilateral trade liberalisation of forest products amongst the Asia-Pacific Economic Cooperation (APEC) member countries. It attempts to quantify the gains from liberalised trade when APEC member countries extend their preferential treatment to non-member countries in forest products trade using the Global Trade Analysis Project (GTAP) model. Given that forest products comprise only a relatively small proportion of world merchandise trade, it is expected that trade liberalisation would cause small changes in terms of trade, real GDP, production, consumption and prices of forest products amongst APEC member countries. The results suggest that in general, when more countries participate in trade liberalisation the more welfare could be improved with the exception of the region North America which is comprised of three countries, the United States of America, Canada and Mexico.

Assessing the Impact of ASEAN+3 Free Trade Agreements on ASEAN’s Trade Flows: A Gravity Model Approach1

This paper employs the gravity model with panel data to examine the impact of ASEAN+3 free trade agreements on ASEAN’s trade flows in the period 2000 – 2013. Estimated results indicate that GDP, GDP per capita, incomegap and distance play a crucial role in bilateral trade among ASEAN members and ASEAN trade volumes with the rest of the world. Additionally, the results reveal that AFTA creates positive and significant trade-creation effects due to tariff eliminations. AFTA has been successful in promoting the bilateral trade not only among ASEAN countries but also between intra-bloc and extra-bloc countries. Conversely, ACFTA, AJCEP negatively affects intra-ASEAN trade and ASEAN’s exports to the rest of the world. Meanwhile, ASEAN’s imports from the rest of the world are negatively affected by ACFTA and AJCEP. Finally, AKFTA causes trade-diversion effect in terms of exports from member countries to non-member countries of AKFTA. AKFTA can be a positive factor in promoting exports among its members. DOI: 10.5901/mjss.2015.v6n6p394

Optimal Rules of Origin with Asymmetric Compliance Costs under International Duopoly

We examine the optimal rules of origin (ROO) in a free trade area/agreement (FTA) by employing a stylized three-country partial equilibrium model of an international duopoly. We incorporate compliance costs of the ROO into the model. In particular, compliance costs are higher for a firm located in a non-member country of the FTA than for a firm (an internal firm) located in an FTA member country, whereas marginal production costs are lower for the former. The FTA member countries set the optimal level of ROO to maximize their joint welfare. An importing country within the FTA imposes tariffs on imports that do not comply with the ROO. We show that the optimal ROO may have a protectionist bias in the sense that they are set for only the internal firm to comply. ROO may also cause low utilization of FTAs when they are set such that even the internal firm does not comply with them. These cases arise depending on parameter values.

European Union’s Fiscal Aids and Its Effects on Member and Non-Member Countries: Turkey Case

Avrupa Birligi’nin kurulusundan beri zaman icinde olaganustu derecede gelismis ve bugunku duzeyine ulasmistir. Uyelerine finansal yardimlar yaparak bazi mekanizmalarinin gelismelerini saglamak ve uye olmayan ulkelerin entegrasyonunu kolaylastirmak Avrupa Birligi’nin temel amaclarindan birisi olmustur. Avrupa Birligi’nin finansal yardimlarinin temel amaci genellikle; uye ulkelerin Avrupa Birligi’nin kabul edilen ekonomi politikalari ile uyumlu olarak surdurulebilir kalkinma sureclerini garanti almak ve Avrupa Birligi ile uye olmayan ulkeler arasindaki uyumun artmasini saglamaktir. Bu yuzden bu calisma ile Avrupa Birligi mali yardimlarinin uye ve uye olmayan ulkeler ustundeki etkileri aciklanmaya calisilmistir.

Panorama Brasileiro do Programa de Boas Práticas de Laboratório. Impacto na redução do uso de animais

Good Laboratory Practice (GLP), a quality system covering the organizational process and the conditions under which non-clinical studies are conducted, aims to ensure uniformity, consistency, reliability, reproducibility, quality, and integrity of the safety tests. The Brazilian Institute of Environment and Renewable Natural Resources formally introduced GLP in 1994. INMETRO initiated the GLP Program in 1995 for recognition and tracking on the basis of procedures, regulations, administrative and legal rules that establish guidelines, policies and directions to act with full responsibility and authority as the Brazilian monitoring authority to the principles of GLP. GLP studies are recognized by members and non-member countries with full membership to act according to the Organisation for Economic Co-operation and Development (OECD) Mutual Acceptance of Data (MAD) agreement and promote reduction in the number of animals used because of non-repetition of tests and adoption of validated alternative methods. In Brazil, there are 31 active GLP facilities, of which 5 perform in vivo tests. Normative Resolution 17/2014 of the National Council for the Control of Animal Experimentation establishes that animal tests that have validated alternative methods recognized by the Council will be replaced within 5 years with the expansion of BPL-based laboratories.

The Last and Next Decades of the Asian Core Program on Cutting‐Edge Organic Chemistry in Asia

The Last and Next Decades of the Asian Core Program on Cutting‐Edge Organic Chemistry in Asia

Effectiveness of the monetary policy implemented in the context of crisis: use of short-term interest rate in the Czech Republic and the EMU

Focus on monetary policy transmission mechanism has regained its importance especially in regards to fi nancial and debt crisis. Negative developments after 2008 still verify the ability of monetary policy to mitigate its impacts. In EMU, it can be seen in the case of the effects of single monetary policy and the deepening of the asymmetries between member countries. This can be compared to the case of the monetary policy ef fi ciency in small and open non-member country and its in fl uence on macroeconomic developments. This paper is focused on the analysis of transmission process of monetary policy through the interest rate channel in EMU as well as in a non-member country, namely in Czech Republic. The aim of the analysis was to verify the similarity of reaction in case of monetary policy shock. The results for Czech Republic were compared to results for overall EMU. The focus was predominantly on interest rate channel of monetary transmission process and its impact on in fl ation, nominal effective exchange rate and gross domestic product, the variables that are typically used in central banks’ monetary rules. We also assumed that negative developments related to the crisis can distort the transmission of monetary policy effects on macroeconomic variables and that the impact of monetary policy changes is transmitted to the economic variables only partially or signi fi cantly lagged. The effects of interest rate shocks on selected variables were identi fi ed by estimating VAR model that uses Cholesky decomposition of innovations; the most widely used empirical methodology for analysing the transmission mechanism of monetary policy. The results show that the reactions of the product and the price level to positive interest rate shock are very similar for Czech Republic as well as for EMU throughout the investigated period 1999–2013. However, we cannot de fi nitively af fi rm that the crisis disrupted the transmission process from monetary measures to analysed macroeconomic variables as shown in the cases of Czech Republic and EMU. Interest rate channel has not shown particularly strong and stable in fl uence on the observed variables neither for Czech Republic, nor for EMU.

Preferential trade agreements between asymmetric countries: Free trade areas (with rules of origin) vs. customs unions

This paper examines differences in welfare implications between a free trade area (FTA) and a customs union (CU) for member countries differing in their market sizes. In a stylized three-country model of trade under oligopoly, we take into account the conditions that FTA members set external tariffs to induce their exporting firms to comply with rules of origin (ROO) within the trade bloc. This approach rules out trade deflection and regime switches in forming an effective FTA. The key findings are as follows: (i) Unless the difference in market size is too large and ROO are too restrictive, an FTA can be welfare-improving to countries with market size differential. (ii) The formation of a preferential trade agreement (either an FTA or a CU) is more likely to emerge between countries of similar market size. However, forming a CU allows for a greater degree of market size asymmetry than forming an FTA. (iii) Compared to the pre-PTA equilibrium, the greater reductions in external tariffs under an FTA than under a CU remain valid even for the case with market size asymmetry and preferential ROO. As such, a non-member country is relatively better off under an FTA. (iv) World welfare is higher under an FTA than under a CU when the market size asymmetry is moderate and ROO are less restrictive.

ANTI-MONEY LAUNDERING AS INTERNATIONAL STANDARDS AND THE ISSUE OF STATE SOVEREIGNTY

It has been recognized that the anti-money laundering regime comprises of preventive and repressive measures. Regarding the preventive measures, the Financial Action Task Force (FATF) on Money Laundering issued the Forty Recommendations which are regarded as international standards in preventing and controlling money laundering activities. These standards are generally viewed as ‘soft law’ and have levels of intervention in legislative, financial, and law enforcement of members and non-member countries of the FATF. However, the rule-making as well as the implementation and enforcement strategy of these standards are not involved and approved by non-member countries. This article argues that this policy is contrary to the principle of state sovereignty and regarded as one of state interventions in the domestic affairs of another state. This article seeks to draw the Forty Recommendations as international standards and examines the creation and implementation of these standards from the standpoint of state sovereignty by focusing exclusively on the principle of sovereign equality and non-interference.

FREE MOVEMENT OF GOODS:INTERNAL TRADE

The EEC Treaty lays down foundations for the Community becoming a Customs Union. Article 9 numerates the elements necessary to achieve a Customs Union, article 13 provides that customs duties on imports between member states must be abolished whilst Article 95 prohibits internal taxation on imports having an equivalent effect to customs duties. Goods benefiting from the right to free movement are the products originating from the member states as well as products coming from non-member countries which become goods in free circulation when the customs formalities have been complied with and the appropriate duties or charges having equivalent effect have been levied in the state of entry1. Subject to transitional provisions for any new member state the principles of the customs union are fully operational as directly applicable rules imposing specific obligations upon the member states as well as individuals. The only exceptions are the derogations justified according to Article 36 of the EEC Treaty, In a technical sense the customs union is achieved by the elimination of customs duties and charges having equivalent effect and the removal of quantitave restrictions and measures having equivalent effect. In addition the various obstacles to trade which have not been listed in the Treaty but form part of national practices must also be removed.

THE TRANSITION PERIOD TO EURO AT FULL MONETARY INTEGRATION AND TURKISH FINANCIAL SECTOR

This article examines the significance and consequences of the Euro in European monetary integration and how it will affect the Turkish banking sector . For this purpose, the various stages of the realisation of European Monetary System (EMS) and , its theoretical context have been explained i n detail.Furthermore , thefunct i ons of the Euro in the System and the advantages and the disadvantages it will create for Member States and non-member countries , have also been explained. The TARGET system , which was developed in order to facilitate settlement payments between the European Central Bank (ECB) and the national banking systems of the Member States, has also been studied. Conseguently, as the EMS is realized , the measures taken and the strategies adopted by the Turkish financial sector, especially in relation to the harmonisation of money and capital markets, have been evaluated.

区域经济整合与关税政策

本文采用一个寡占模型分析区域经济整合前后的关税政策，并得到两个具体结果：第一、经济整合必然降低非会员国的福利；第二、即使只是降低(即未完全消除)会员国间的关税水平，整个区域的福利水平仍可能因经济整合而提高。 Using an oligopoly model, this paper analyses the tariff policy before and after economic integration, showing that economic integration necessarily reduces the non-member country’s welfare. In addition, the region still gains from integration even though the trade liberalization within the region is partial.

Implementing Partial Tax Harmonization in an Asymmetric Tax Competition Game with Repeated Interaction

This paper investigates the conditions under which partial harmonization for capital taxation is sustained in a repeated interactions model of tax competition when there are three countries with heterogenous capital endowments. We show that regardless of the structure of the coalition (i.e. full or partial tax coordination), whether partial tax harmonization is sustainable or not crucially depends on the extent to which the capital endowment of the medium-sized country is similar to that of the large or small country. The most noteworthy finding is that the closer the capital endowment of the median country is to the average one, the less likely the tax harmonization including the median country is to prevail and the more likely the partial tax harmonization excluding the median country is to prevail. We also show that partial tax harmonization makes the member countries of the tax union better off and non-member countries worse off, which stands in shape contrast with previous studies such as Konrad and Schjelderup (1999) and Bucovetsky (2009).