Foreign Aid and Recipient Countries` Exports: Does Aid Promote Bilateral Trade?

This paper uses the gravity model of trade to investigate the link between foreign aid and exports in recipient countries. Most of the theoretical work emphasizes the negative impact of aid on recipient countries’ exports primarily due to exchange rate appreciation, disregarding possible positive effects of aid in promoting bilateral trade relations. The empirical findings, in contrast, indicate that the net impact of aid on recipient countries’ exports is positive -even though the macroeconomic impact of aid is rather small- and that the average return for recipients’ exports is about 1.50 US$ for every aid dollar spent. We argue that “bilateral aid” seems to promote good bilateral trade relations, mutual trust and familiarity and that those factors reinforce bilateral trade, including recipient country exports. The paper also estimates the effect of different types of aid (bilateral aid versus multilateral aid flowing to a specific recipient) and studies aid’s contribution to an expansion of exports in different regions of the world. It is found that aid is strongly export-enhancing in Asia and Latin America, but not in Africa.International trade; foreign aid; recipient exports; bilateral trade relations

Internet Peering as a Network of Relations

We apply results from recent theoretical work on networks of relations to analyze optimal peering strategies for asymmetric ISPs. It is shown that - from a network of relations perspective – ISPs’ asymmetry in bilateral peering agreements need not be a problem, since when these form a closed network, asymmetries are pooled and information transmission is faster. Both these effects reduce the incentives for opportunism in general, and interconnection quality degradation in particular. We also explain why bilateral monetary transfers between asymmetric ISPs (Bilateral Paid Peering), though potentially good for bilateral peering, may have rather negative effects on the sustainability of the overall peering network

Dragon by the Tail, Dragon by the Head, Bilateralism and Globalism in East Asia

In this paper, we examine the bilateral implications of regional and global trade arrangements in the East Asian context. Using a dynamic global CGE model, we examine a variety of trade scenarios, in terms of bilateral relations between China and two of its most populace regional partners, Vietnam and Japan. Given the differences between the latter two economies, it might be reasonable to expect divergence in the bilateral outcomes. Our findings indicate that differences in initial conditions can indeed have a significant impact on bilateral adjustments, and that these can be adverse for some partners in the absence of policies that promote trade complementarity. By the latter we mean bilateral import and export patterns where the aggregate grows faster for each country than their total trade, but which help sustain bilateral balance of payments equilibrium.Dragon; Head; Bilateralism; Globalism

A Turning Point: past and future of the European Community's relations with Eastern Europe. Biblio-Flash No 24, 1989

The signature on 25 June 1988 in Luxembourg of the EEC-CMEA (1) Joint Declaration, of which a text is annexed to this article, marked the establishment of official relations between the European Community and the CMEA and at the same time gave the impetus for the normalization of bilateral relations between the Community and the individual East European countries members of the CMEA

A Typology of Multilateral Treaty Obligations: Are WTO Obligations Bilateral or Collective in Nature?

An important, though oft neglected, distinction between multilateral treaty obligations separates obligations of the bilateral nature from those of the collective or erga omnes partes type. Multilateral obligations of the bilateral type can be reduced to a compilation of bilateral, state-to-state relations. They can be compared to contracts. Collective obligations, in contrast, cannot be divided into bilateral components. They are concluded in pursuit of a collective interest that transcends the individual interests of the contracting parties. The standard example of such obligations are those arising under a human rights treaty. In domestic law, collective obligations can be compared to criminal law statutes or even domestic constitutions. This essay examines the origins of the distinction between bilateral and collective obligations, as well as its major consequences, both in law of treaties and the law on state responsibility. On that basis, a wider typology of multilateral treaty obligations is suggested. In the exercise, obligations arising under the World Trade Organization are used as a case study. The argument is made that WTO obligations remain essentially of the bilateral type; they are not collective in nature

Internet Peering as a Network of Relations

We apply results from recent theoretical work on networks of relations to analyze optimal peering strategies for asymmetric ISPs. It is shown that - from a network of relations perspective – ISPs’ asymmetry in bilateral peering agreements need not be a problem, since when these form a closed network, asymmetries are pooled and information transmission is faster. Both these effects reduce the incentives for opportunism in general, and interconnection quality degradation in particular. We also explain why bilateral monetary transfers between asymmetric ISPs (Bilateral Paid Peering), though potentially good for bilateral peering, may have rather negative effects on the sustainability of the overall peering network.

Increased Cocoa Bean Exports under Trade Liberalization: A Gravity Model Approach

Gravity models were developed to estimate the potential bilateral exports of cocoa under trade liberalization by the sixteen major cocoa producing countries to the US using panel data from 1989 to 2003. The results indicate that differences between resource endowment, relative size of economies, and the sum of bilateral GDP of U.S. and exporting countries are the major determinants. Thus, as trade is liberalized, farmers share of the world price of cocoa increases and this raises exports.Gravity models, Bilateral exports, Market liberalization, Cocoa, Fixed Effects Model, Random Effects Model, Pooled O.L.S., International Relations/Trade, Research Methods/ Statistical Methods, F10, F13,

Assessing the Effects of NAFTA ON Canada/US Agricultural Trade

While there seems to be an agreement that Canada-US Free Trade Agreement (CUSTA)/North American Free Trade Agreement (NAFTA) have benefited member countries, some analysts have argued that the agreements had little effect on the bilateral Canada/US agricultural trade as many other factors have contributed to the increased trade flows. Results from this study reveal that the aggregate bilateral agricultural trade flows have generally experienced a steady growth since the implementation of NAFTA with trade flows seemingly favoring Canada more than the US since 1992. At the industry level, the impacts of NAFTA on Canada/US agricultural trade were varied with the sub-sectors analyzed responding differently to the bilateral trade liberalization.CUSTA/NAFTA, agricultural trade, liberalization, integration, trade flows, International Relations/Trade,

Intra-industry trade and trade intensities: Evidence from New Zealand

This study analyses the development of intra-industry and inter industry trade between New Zealand, Australia, and the selected Asia-Pacific nations during the period 1990 to 2000. The study adapts mainly two approaches to examine these developments. First, an historical analysis of New Zealand trading patterns is presented. For this purpose, intra-industry trade development is examined. The Grubel-Lloyd and Aquino indices are used to calculate the intensity of intra- industry trade at the 3-digit SITC levels to determine the relative importance of intra-industry trade as opposed to inter-industry trade. IIT has been estimated across industries and for selected trading partners. A time series approach is used to estimate any trend in the ratio of intra industry trade to total trade in relation to Australia. Secondly, the paper examines the strength of trade relations between New Zealand and the other countries. For this purpose the intensity of trade index has been estimated for bilateral trade flows between these nations. These analyses are examined to consider how trade has changed in this period of trade liberalisation. The results show that intra-industry trade has increased between New Zealand and Australia. The results also suggest that bilateral trade flows between New Zealand, Australia and other countries has become more intense indicating trading relations are strengthening. In some cases bilateral trade flows have decreased. The results also suggest that the removal of trade barriers through bilateral and multilateral negotiations has positive impacts on intra-industry trade and the intensity of trade of these economies