International Economic Research Research Articles

Міжнародна економіка: поглиблення і розширення дослідницького потенціалу України

The topical issues of the development of the research potential of Ukraine in the field of international economics , capable of creating scientific support for the foreign economic activity of entrepreneurial structures and government organizations in the context of world and European integration, have been investigated. The creation of the infrastructure of research organizations specializing in the international economics has been substantiated, in particular, the feasibility of creating research institutes in the USA and Canada, Europe, and the Center for International Agricultural Business. The article considers the expediency of conducting research on the issues of cooperation with interstate integration associations of countries, including the EU, ASEAN, TPP, APEC, BRICS, for the implementation of the country's foreign economic policy. A special place in the system of international economics research should be occupied by the problems of Industry 4.0 and the leadership of Ukrainian IT companies in the system of global economic competition. The state of the staffing of research activities in international economics is analyzed and proposals for training of highly qualified specialists in international economics in large industrial centers: Kharkov, L’viv. Dnieper, Odessa and Zaporizhia are formulated.

Demographic Transition and Pension Reforms

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed at the International Monetary Fund for policy analysis and international economic research. This paper documents the incorporation of demographic features into the model. The analysis presented illustrates how these new features enable the model to estimate some of the macroeconomic consequences of changing demographics.

Обзор конференции Банка России "Инфляция: Новые выводы для центральных банков"

At the beginning of June, the Bank of Russia held in St. Petersburg the international economic research conference Inflation: New Insights for Central Banks. In its format and scope of participants, the conference was the first major international event arranged by the Bank of Russia after it switched to the inflation targeting regime in 2015. We are presenting a brief review of the conference, the main results of the studies presented and their potential policy role for central banks.

Examining the Canada–China agri‐food trade relationship: Firms, trading partners, and trading volumes

AbstractThe “new‐new” trade theory has dramatically shifted the focus of international economics research to heterogeneous firms and the margins by which firms participate in international trade. However, few studies have examined the dynamics of agricultural trade at the firm level. This paper employs China Customs data comprising the universe of Chinese firm‐level agricultural import transactions over the period 2000–2009 and develops an empirical strategy to decompose the growth of Chinese agri‐food imports of its four major suppliers, Canada, the United States, Brazil, and Argentina. Our findings reveal that China's growth in agricultural imports is highly concentrated among a small group of firms, where the top 10% of Chinese agricultural importers account for nearly 90% of its agricultural imports. We also find evidence of a significant turn‐over of importers of agri‐food products. Over 40% of new firms entering China's agricultural import market during our sample exited after just 1.7 years. Finally, decomposing import growth patterns for Canada and its competing suppliers reveals significant differences in the intensive and extensive margins of trade that hold important implications for trade policies aimed at enhancing Canada's position as a major agri‐food supplier in the Chinese market.

2016 KIEP Visiting Fellows Program

In 2009, Korea Institute for International Economic Policy (KIEP) launched Fellows Program (VFP) with the view of advancing cross-border exchanges of knowledge, information, insights and expertise. Since its inception, the VFP has demonstrated that sharing thoughts and ideas through face-to-face contacts and dialogue works as a catalyst for enhancing mutual understanding among scholars and professionals with diverse background. By successfully implementing the VFP for the past 8 years, KIEP has been motivated to assume the role as a hub for international economic research in the region. As a host of the program, KIEP has many mandates. One of those tasks is to let more people know what has been accomplished through the program and how valuable it is. In an effort to do so, KIEP has published series of research every year. This volume, the 8th of its series, contains eight research papers contributed by 2016 Visiting Fellows. Publication owes many debts. Here I acknowledge just a few of them. First of all, I must express my deepest gratitude to the 2016 visiting fellows for their outstanding performances. My special thanks also goes to the Outreach Team and the staffs of the KIEP Publishing Team who worked very hard for the publication of this volume. The views expressed in this publication are the views of the author and do not necessarily reflect the views or policies of KIEP. KIEP does not guarantee the accuracy of the data included in the publication.

2015 Kiep Visiting Fellows Program

In 2009, Korea Institute for International Economic Policy (KIEP) launched Fellows Program (VFP) with the view of advancing cross-border exchanges of knowledge, information, insights and expertise. Since its inception, the VFP has demonstrated that sharing thoughts and ideas through face-to-face contacts and dialogue works as a catalyst for enhancing mutual understanding among scholars and professionals with diverse background. By successfully implementing the VFP for the past 8 years, KIEP has been motivated to assume the role as a hub for international economic research in the region. As a host of the program, KIEP has many mandates. One of those tasks is to let more people know what has been accomplished through the program and how valuable it is. In an effort to do so, KIEP has published series of research every year. This volume, the 7th of its series, contains eight research papers contributed by 2015 Visiting Fellows. Publication owes many debts. Here I acknowledge just a few of them. First of all, I must express my deepest gratitude to the 2015 visiting fellows for their outstanding performances. My special thanks also goes to Ms. RIM Jeewoon and the staffs of the KIEP Publishing Team who worked very hard for the publication of this volume. The views expressed in this publication are the views of the author and do not necessarily reflect the views or policies of KIEP. KIEP does not guarantee the accuracy of the data included in the publication.

Identical Twins? Destination-Based Cash-Flow Taxes Versus Consumption Taxes with Payroll Subsidies

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed by the Economic Modeling Division of the IMF for policy analysis and international economic research. This paper uses GIMF to illustrate when a destination-based cash-flow tax is equivalent to a combination of a consumption tax and a labor subsidy, as the latter combination have been advocated as proxies for the implementation of destination-based cash-flow taxes. The paper documents the conditions under which both types of taxes are identical and how the equivalence in terms of the real economy and tax revenue responses can be broken, namely after the introduction of finitely lived consumers that value government debt as net wealth (real economy) and the introduction of untaxed government expenditure (tax revenue).

No Business Taxation Without Model Representation: Adding Corporate Income and Cash Flow Taxes to GIMF

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed at the International Monetary Fund for policy analysis and international economic research. This paper documents the incorporation of corporate income, cash-flow and destination based cash-flow taxes into the model. The analysis presented considers the transmission mechanism of these taxes and details how financial frictions interact with each of the taxes.

No Business Taxation Without Model Representation: Adding Corporate Income and Cash Flow Taxes to GIMF

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed at the International Monetary Fund for policy analysis and international economic research. This paper documents the incorporation of corporate income, cash-flow and destination based cash-flow taxes into the model. The analysis presented considers the transmission mechanism of these taxes and details how financial frictions interact with each of the taxes.

Identical Twins? Destination-Based Cash-Flow Taxes Versus Consumption Taxes with Payroll Subsidies

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed by the Economic Modeling Division of the IMF for policy analysis and international economic research. This paper uses GIMF to illustrate when a destination-based cash-flow tax is equivalent to a combination of a consumption tax and a labor subsidy, as the latter combination have been advocated as proxies for the implementation of destination-based cash-flow taxes. The paper documents the conditions under which both types of taxes are identical and how the equivalence in terms of the real economy and tax revenue responses can be broken, namely after the introduction of finitely lived consumers that value government debt as net wealth (real economy) and the introduction of untaxed government expenditure (tax revenue).

U.S. and Whom? Structures and Communities of International Economic Research

Abstract Most studies concerned with empirical social networks are conducted on the level of individuals. The interaction of scientists is an especially popular research area, with the growing importance of international collaboration as a common sense result. To analyze patterns of cooperation across nations, this paper investigates the structure and evolution of cross-country co-authorships for the field of economics from 1985 to 2011. For a long time economic research has been strongly US centered, while influencing real-world politics all over the globe. We investigate the impact of the general trend of increasing international collaboration on the hegemonic structures in the “global department of economics.” A dynamic map of economic research is derived and reveals communities that are hierarchical and structured along the lines of external social forces, i.e. historical and political dimensions. Based on these findings, we discuss the influence of the core-periphery structure on the production of economic knowledge and the dissemination of new ideas.

Getting to Know GIMF: The Simulation Properties of the Global Integrated Monetary and Fiscal Model

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed by the Economic Modeling Division of the IMF for policy analysis and international economic research. Using a 5-region version of the GIMF, this paper illustrates the model’s macroeconomic properties by presenting its responses under a wide range of experiments, including fiscal, monetary, financial, demand, supply, and international shocks.

Getting to Know GIMF: The Simulation Properties of the Global Integrated Monetary and Fiscal Model

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed by the Economic Modeling Division of the IMF for policy analysis and international economic research. Using a 5-region version of the GIMF, this paper illustrates the model’s macroeconomic properties by presenting its responses under a wide range of experiments, including fiscal, monetary, financial, demand, supply, and international shocks.

The Trade Unit Values database

Résumé Les analyses empiriques en économie internationale utilisent généralement les valeurs unitaires pour approximer les prix des produits échangés. Les bases de données de valeurs unitaires existantes présentent certains biais statistiques, liés à l’agrégation et à l’harmonisation des valeurs unitaires. Ces différents biais limitent fortement la fiabilité des données de valeurs unitaires en tant que proxy des prix du commerce. Ce papier présente la nouvelle base de données Trade Unit Value du CEPII, qui a pour objectif de fournir des données de valeurs unitaires fiables et désagrégées pour la plupart des pays du monde. Les valeurs unitaires bilatérales sont calculées à un niveau de désagrégation des produits extrêmement fin avant d’être agrégées au niveau 6 digits de la nomenclature harmonisée. Les valeurs unitaires de la base Trade Unit Value présentent une plus forte dispersion par catégorie de produit que celles des autres bases de données mondiales existantes. L’estimation d’une équation de gravité standard montre que cette plus forte dispersion s’explique par les agrégats économiques. Classification JEL : E3 ; F1 ; F4.

The Trade Unit Values database

Trade unit values are commonly used as proxies for trade prices in empirical research in international economics. Existing datasets providing international trade unit values for a large number of countries typically suffer from a number of statistical biases, due to the aggregation of unit values and the harmonization of quantity information. These biases reduce the reliability of unit values as a proxy for trade prices. This paper presents the Trade Unit Values dataset, a new database developed to circumvent these statistical issues. Bilateral trade unit values are computed at a very high level of disaggregation before aggregation into Harmonized-System 6-digits categories to allow for cross-country comparability. Our processing strategy improves the differentiation of trade prices within product categories, as compared to existing worldwide datasets. A simple econometric analysis shows that unit values in our database are well explained by economic aggregates.

Kierunki rozwoju ekonomii na podstawie klasyfikacji Journal of Economic Literature

Kierunki rozwoju ekonomii na podstawie klasyfikacji Journal of Economic Literature

Postage Price Parity*

A large part of international economics research is devoted to the theory of Purchasing Power Parity (PPP). There have been numerous attempts by economists over the years to devise an accurate, reliable and convenient measure for this theory – the most famous of these being the “Big Mac index” compiled by The Economist. In the spirit of the “Big Mac index”, this paper introduces another alternative measure of PPP here, using the prices of postage stamps for international mail delivery, that is just as, if not more, attractive as any other current measure.

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Horizontal versus Vertical Interdependence in Multinational Activity

Recent research in international economics highlights the role of interdependencies of investment decisions and sales of multinational firms. Previous work focused on and provided evidence for aggregate flows or stocks of foreign direct investment, showing that interdependence declines in geographical distance among host countries. This could be interpreted as implicit evidence for export-platform foreign direct investment—an activity which creates a complementary relationship between (potential) host markets through final goods exports of foreign subsidiaries to third countries. This paper sheds light on interdependencies that are brought about by (horizontal) trade in final goods and (vertical) trade in intermediate goods (within and between host countries). For this, we use a panel data set of U.S. foreign affiliate sales to 16 developed countries in 7 industries over the period 1983-2000. As one of the first studies on that matter, we explicitly distinguish between horizontal and vertical interdependence in MNE activity and allow for both market size (demand) related as well as remainder linkage effects. The latter are captured by a second order spatial regressive error process. Overall, there is evidence for mainly vertical as opposed to horizontal interdependence and, hence, mainly vertical motives of multinational activity.

The influences of economic openness on Japan's balancing item: an empirical note

Exploring the factors influencing the balancing item of balance of payments accounts has seldom been a subject of research in international economics. Following Brooks and Fausten (1998), and using Japan's data, this study has empirically examined the influences of economic openness on balancing item. The results of subset VAR (Vector Autoregression) approach, Granger causality test, impulse responses function, and variance decomposition have showed that, to a certain extent, economic openness does influence the behaviour of Japan's balancing item.