The reverse home-market effect in export. A cross-country study of the extensive margin of exports
Do small countries have higher proportions of firms that export in manufacturing industries than large ones? As small countries are well known to be more open than large ones, it may appear uncontroversial to claim that the answer is yes. Nevertheless, this contradicts predictions from many standard trade models positing a home-market effect in the number of manufacturing firms and exporters. In this article, I present a theoretical model where a home-market effect in the number of firms coexists with a reverse home-market effect in the number of exporters: as in standard models, the number of firms in a small country relative to that in a large one is lower than relative income, but, in contrast to standard models, the relative number of exporters is larger. As a consequence, small countries will have higher proportions firms that export in manufacturing industries – a claim I support empirically.
Market specific fixed and sunk export costs: The impact of learning and spillovers
Sunk export costs: How they influence firms’ export decisions and international trade
Whither the Transatlantic Trade and Investment Partnership?
Failures in the World Trade Organisation’s Doha Round have prompted countries to turn to preferential trade agreements. Every country with a stake in world trade is now negotiating bilateral free trade agreements – with occasional infusions of regional attempts to forge greater trade ties by reducing barriers to trade and investments, e.g. the Trans-Pacific Partnership (TPP). Some claims Free Trade Agreements to be second-best alternatives to a dysfunctional multilateral system; others see them through the eyes of Jacob Viner and consider them to be termites of the trading system, diverting trade and causing bureaucratic obstacles to trade through Rules of Origin regulations. Yet regardless the side of the argument, the most outstanding feature of many FTAs is that they do not have impressive effects on growth in trade and Gross Domestic Product (GDP). The EU, for instance, considers its FTA with South Korea to be a first-of-a-kind, “deep and comprehensive” bilateral agreement with a medium-sized growth market – and at the time when it was ratified, EU representatives hailed it as an important trade agreement for the European post-crisis recovery. The estimates of the European Commission, however, suggested this FTA to boost GDP in Europe by no more than 0.08 percent.
Systems Approaches to Animal Disease Surveillance and Resource Allocation: Methodological Frameworks for Behavioral Analysis