46 research outputs found
Multilateral Trade Liberalisation and FDI: An Analytical Framework for the Implications for Trading Blocs
Get PDFThe proliferation of regional integration agreements (RIAs) over the past several years has led to significant changes in the global configuration of trade and investment activity. Multinational enterprises now face the prospect of multilateral trade liberalisation that could significantly affect the foreign direct investment (FDI) incentive structures that were established within the range of current RIAs. RIAs that provide preferential market access to member countries modify firms’ incentives to undertake FDI activities and can lead to various permutations of trade and investment creation and diversion. This article provides an analytical framework for understanding the implications of multilateral trade liberalisation for the incentive structures of firms to conduct FDI and discusses how multilateral liberalisation could undo many of the FDI activities that were initiated in response to previous RIAs.foreign direct investment, incentives, multilateral trade liberalisation, regional integration agreements, Demand and Price Analysis, Financial Economics, International Relations/Trade, Political Economy,
Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
No full textThis paper examines the effects of inward Foreign Direct Investment (FDI) on the female employment rate in the economy and the share of female employment across sectors. The empirical analysis is implemented through the Generalized Method of Moments (GMM) System estimator for dynamic panel models using different empirical specifications and FDI openness indicators. The main results show that the overall effects of inward FDI on the national female employment rate are not statistically significant. However, they reveal that inward FDI has promoted the share of female employment in the service sector and has led to decreases in the share of female employment in agriculture. The FDI effects on the share of female employment in the industrial sector are found to be statistically insignificant. These results are generally supported when running the empirical analysis through alternative FDI openness indicators. Also, supplementary analysis reveals some variations in the magnitude of these effects over different national income categories. The findings in this paper emphasize FDI’s gendered influences in the labour market. They are consistent with the prevalence of macroeconomic channels through which inward FDI impacts female employment across sectors, and they encompass the underlying implications of various counteracting microeconomic factors
Does Economic Growth Attract FDI Inflows? A Dynamic Panel Analysis
No full textEconomic growth is deemed to be a conducive factor in attracting foreign direct investment (FDI) as it often confers location advantage to host countries and fosters business confidence. This paper examines the short-run and the long-run effects of economic growth on FDI inflows. The empirical analysis is conducted through the Generalized Method of Moments (GMM) System estimator for dynamic panel models. The main results show significant positive effects of economic growth on FDI inflows, and they indicate that the magnitudes of these effects are statistically comparable over time and do not diminish with higher economic growth levels. They also reveal important variations in the magnitude of these effects across geo-economic regions and over pertinent economic variables such as economic development level, international trade and foreign investment openness, and endowment in natural resources. These findings underscore the significance of developing growth-enhancing policies that are designed on the basis of the economic and geo-economic characteristics of host countries. Such policies could be coupled with international trade and foreign investment openness directions to stimulate stronger responses of FDI inflows to economic growth and mitigate the implications of unfavorable global and regional political conditions
On the relationship between regional trade agreements and agricultural technology and productivity
Get PDFThe implementation of a Regional Trade Agreement (RTA) is normally accompanied with a rise in market competition levels, in domestic agricultural markets through increases in imports and in foreign agricultural markets through increases in exports. These effects are expected to induce adjustments in agricultural technology and productivity in the importing and exporting countries. This paper analyzes the implications of these adjustments in the context of Viner's (The Customs Union Issue. Carnegie Endowment for International Peace: New York, NY, 1950) conventional partial equilibrium framework with perfectly elastic foreign supply schedules faced by the importing member country. It also examines these implications in the context of Pomfret's (Review of World Economics, 122(3): 439-465, 1986) extended partial equilibrium framework depicting upward-sloping foreign supply schedules for the importing member country. The analysis underscores important changes and redistributions through the RTA's initial benefits and losses, following the RTA-induced adjustments in agricultural technology and productivity. Some analytical considerations are also discussed in the context of vertical agricultural markets. Finally, an empirical investigation is carried out, revealing different implications of membership in the European Union (EU) and its predecessor, the European Economic Community (EEC), for productivity in the agricultural sector
Did the Uruguay Round Agreement on Agriculture Affect Trade Flows? An Empirical Investigation for Meat Commodities
No full textAgricultural trade, Dynamic panel estimation, Market access, Meat commodities, Uruguay round agreement on agriculture, F14, F15,
Best Management Practices to Enhance Water Quality: Who is Adopting Them?
Get PDFThis study investigates the determinants affecting producers’ adoption of some Best Management Practices (BMPs). Priors about the signs of certain variables are explicitly accounted for by testing for inequality restrictions through importance sampling. Education, gender, age, and on-farm residence are found to have significant effects on the adoption of some BMPs. Farms with larger animal production are more apt to implement manure management practices, crop rotation, and riparian buffer strips. Also, farms with larger cultivated acres are more inclined to implement herbicide control practices, crop rotation, and riparian buffer strips. Belonging to an agro-environment club has a positive impact for most BMPs.adoption, Bayesian analysis, best management practices, priors, runoff, water quality, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Consumption/Nutrition/Food Safety, Land Economics/Use, Livestock Production/Industries, Q12, Q25, C11,
Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis
Get PDFThis paper examines the implications of the European Union (EU) regional trade preferences for processed food trade between Greece and its EU partners, and between Greece and non-EU countries. The empirical analysis relies on the gravity model, and uses different estimation techniques. The results show that the EU regional trade preferences led to substantial increases in processed food trade between Greece and its EU partners, emphasizing trade creation effects. The magnitudes of these increases are higher than the intra-EU average, and are more pronounced for Greece’s imports than for Greece’s exports. The results also indicate that the EU regional trade preferences brought about decreases in processed food trade between Greece and non-EU countries, implying trade diversion effects. The findings in this paper suggest that the Greek food processing industry would benefit from enhanced production, innovation, and market strategies to expand exports to the EU market and to counter import competition in the domestic market
Enhancing Canada’s Beef Exports and Competitiveness in the Global Market
Get PDFAlberta reports the highest revenues among all provinces in beef cattle ranching and farming, but there is still considerable potential to maximize profits by expanding international trade. In 2022, Canada exported 0.78 million head of cattle and 430,000 metric tonnes of beef, for a total trade value of C$5.2 billion. That same year, Canada ranked eighth globally in the volume of beef exports, sixth in the value of beef exports and fourth in the aggregate value of live cattle and beef exports. This study aims to provide a policy brief on Canada’s beef and cattle production and exports, and international market access and conditions. Trade barriers are identified and evaluated, and the implications of non-tariff measures (NTMs) are examined. These include, for example, the ban
imposed by the European Union and the United Kingdom on the importation of peroxyacetic acid (PAA)-treated and hormone-treated beef, and the United States’ political/legislative attempts to invoke the mandatory country-of-origin labelling (CoOL) standard for Canada’s beef exports.
This study also discusses the benefits and limitations of preferential trade agreements (PTAs) for Canada’s beef exports, such as the Canada-U.S.-Mexico Agreement (CUSMA); the Canada-EU Comprehensive Economic and Trade Agreement (CETA); and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The study concludes by exploring the opportunities to increase Canada’s beef exports and competitiveness in international markets
Globalization and the Fallout of the COVID-19 Pandemic
No full textThe COVID-19 pandemic has significantly impacted globalization by disrupting the course of international economic integration, reducing interpersonal interaction and communication, and lessening the significance of global governance and political interactions. This unprecedented event has altered global supply chains, MNEs’ operations and FDI, and trade patterns, and it has favored protectionist and border policies. Meanwhile, travel restrictions and social-distancing measures reduced human mobility and hindered intercultural exchanges. This study explores the short-term and long-term effects of the COVID-19 pandemic on economic globalization while also reflecting on its implications for social and political globalization. The analysis underlines that the COVID-19 pandemic has encouraged many governments to assess their strategies vis-à-vis globalization by seeking a certain equilibrium between global engagement, regional retreat, and national seclusion. Despite the adverse implications, some positive outcomes have emerged via the COVID-19-induced digital transformation and the reconfiguration of the global supply chains to improve resilience against future exogenous shocks. This pandemic exposed the shortcomings of the current global system and emphasized the necessity for a post-COVID-19 “re-designed” globalization to mitigate anti-globalization sentiments and expand benefits across countries/geo-economic regions and different segments of society
