Search results for "Bilateral trade"
showing 10 items of 17 documents
Fiscal Adjustment and Business Cycle Synchronization
2013
Using a panel of annual data for 20 countries we show that synchronized fiscal consolidation (stimulus) programmes in different countries make their business cycles more closely linked, especially in the case of fiscal adjustments lasting 2 or 3 years. We also find: (i) little evidence of decoupling when an inflation targeting regime is unilaterally adopted; (ii) an increase in business cycle synchronization when countries fix their exchange rates and become members of a monetary union; (iii) a positive effect of bilateral trade on the synchronization of business cycles.
Is the Border Effect an Artefact of Geographical Aggregation?
2011
The existence of a large border effect is considered as one of the main puzzles of international macroeconomics. We show that the border effect is, to a large extent, an artefact of geographic concentration. In order to do so we combine international flows with intra-national flows data characterised by a high geographic grid. At this fine grid, intra-national flows are highly localised and dropping sharply with distance. The use of a small geographical unit of reference to measure intra-national bilateral trade flows allows to estimating correctly the negative impact of distance on shipments. When we use sector disaggregated export flows of 50 Spanish provinces in years 2000 and 2005 split…
Exploring the relationships between maritime connectivity, international trade and domestic production
2020
The objective of this paper is to simultaneously analyse the complex relationships between bilateral maritime connectivity, bilateral trade and domestic production as measured by gross domestic pro...
Early modern trade flows between smaller states : the Portuguese-Swedish trade in the eighteenth century as an example
2015
The eighteenth century was a period of many great power wars and competition for colonies. However, despite the turmoil, smaller nations were able to carve their niches in the international trade of the period. Examination of new sources, used in a comparative fashion, indicates that bilateral trade still has much to offer for the analysis of international trade history. The pattern of bilateral trade between Sweden and Portugal indicates that they were not equally dependent on that trade, and that the products traded varied over time. Usually bulk commodities dominated this trade, as each country focused on its core competencies. Overall, the volume of trade and the number of ships travell…
EMU and trade: A PPML re‐assessment with intra‐national trade flows
2020
This paper examines the EMU effect on trade for the eleven early joiners and Greece relying for the first time on data that include both international and intra‐national trade flows, in line with all the microfoundations of the structural gravity model of trade. We find that the overall EMU impact on trade is positive between its members and, specially, for trade between members and non‐members. Interestingly, we further show that the effect of the EMU on bilateral trade remarkably differs across countries. For Ireland, Belgium–Luxembourg, Spain, Portugal and Austria, we find robust evidence that EMU has boosted trade both with other members and with third countries, while for Finland, Fran…
Warning: Bilateral trade agreements do not create trade
2021
Norwegian-Polish Bilateral Trade Developments since 1990
2016
Trade Costs, Trade Balances, and Current Accounts: an application of Gravity to Multilateral Trade
2005
In this paper we test the well-known hypothesis of Obstfeld and Rogoff (NBER Macroeconomics Annual 7777:339–390, 2000) that trade costs are the key to explaining the so-called Feldstein–Horioka puzzle. Our approach has a number of novel features. First, we focus on the interrelationship between trade costs, the trade account and the Feldstein–Horioka puzzle. Second, we use the gravity model to estimate the effect of trade costs on bilateral trade and, third, we show how bilateral trade can be used to draw inferences about desired trade balances and desired intertemporal trade. Our econometric results provide strong support for the Obstfeld and Rogoff hypothesis and we are also able to recon…
Cultural Distance and International Trade in Services: A Disaggregate View
2020
Abstract In this paper, we estimate the effect of “cultural distance” on bilateral trade in services. The measure of cultural distance we use is based on scores that reflect country averages of individuals’ attitudes towards inequality, self-orientation, competition, uncertainty, traditions, and indulgence. Controlling for standard ingredients of gravity equations, we show that an aggregate measure of cultural distance has a significantly negative effect on total bilateral services trade. Once we take a more disaggregate view, we find that the strength of this effect differs across various types of services and various aspects of cultural distance.
International trade and migrant networks: Is It really about qualifications?
2014
Personal characteristics of migrants could help to strengthen the impact of migrant networks on bilateral trade. While most of the attention has been focused on immigrants' educational attainment, this paper focuses on the relevance of the tasks carried out by migrants. Our empirical results confirm that the existence of a large number of foreign-born workers with managerial duties is critical to explain the reduction of transaction costs caused by migrant networks.