ASSESSING THE EFFICIENCY OF EXCHANGE RATE-LINKED SUBSIDIES FOR NON-PRICE EXPORT PROMOTION: THE CASE OF COTTON

Notwithstanding substantial federal financial support for the export promotion of agricultural products, ways to improve the efficiency of federal funding have not been discussed in empirical research. In this study, an equilibrium displacement framework was developed to evaluate whether the efficiency of export promotion expenditures could be increased by linking them with changes in the exchange rate. In our analysis, the gross gain to domestic cotton producers from the exchange-rate linked subsidy scheme was positive. Findings support exchange-rate linked subsidies for export promotion of agricultural products.International Relations/Trade,

Green Services and Emergence and Recovery from the Global Economic Slowdown in Developing Asian Economies

The global economic slowdown has again highlighted the vulnerability of export-led development models and economies to downturns in export markets. Economic deepening or rebalancing with an emphasis on service-sector development should beand is becomingone long-term response to the crisis by Asias emerging economies. In the long run, sustainable economic development will depend in part on achieving a green trajectory of service sector development, in which services help green the product economy. In the short run, however, can services help address short- and medium-term challenges of emergence and recovery from the crisisparticularly those of at least resuming historic rates of poverty alleviation and inclusive growth? Meeting these challenges will require that export sectors deal successfully with challenging market conditions. There is a class of closely related business-to-business services which act to green the product economy, and which would improve the competitiveness of export sectors and husband scarce public resources by optimizing the efficiency of infrastructure utilization. These are functional procurement/efficiency services, which transform procurement of environmentally problematic goods and servicessuch as waste disposal, energy, chemicals, and transportinto performance-based services in which service providers profit by increasing the customers eco-efficiency. Energy Service Companies (ESCOs) are the best-known of these service models. These services appear to have strong potential among the larger, more sophisticated institutions and commercial and industrial enterprises in developing Asian states, particularly in Asias more advanced developing economies.global economic slowdown, export-led development models, sustainable economic development, Energy Service Companies, Asia

The C-terminal portion of the cleaved HT motif is necessary and sufficient to mediate export of proteins from the malaria parasite into its host cell

The malaria parasite exports proteins across its plasma membrane and a surrounding parasitophorous vacuole membrane, into its host erythrocyte. Most exported proteins contain a Host Targeting motif (HT motif) that targets them for export. In the parasite secretory pathway, the HT motif is cleaved by the protease plasmepsin V, but the role of the newly generated N-terminal sequence in protein export is unclear. Using a model protein that is cleaved by an exogenous viral protease, we show that the new N-terminal sequence, normally generated by plasmepsin V cleavage, is sufficient to target a protein for export, and that cleavage by plasmepsin V is not coupled directly to the transfer of a protein to the next component in the export pathway. Mutation of the fourth and fifth positions of the HT motif, as well as amino acids further downstream, block or affect the efficiency of protein export indicating that this region is necessary for efficient export. We also show that the fifth position of the HT motif is important for plasmepsin V cleavage. Our results indicate that plasmepsin V cleavage is required to generate a new N-terminal sequence that is necessary and sufficient to mediate protein export by the malaria parasite

Economics of export subsidies under costly and imperfect enforcement

The present paper builds on the published literature on agricultural policy analysis under costly and imperfect enforcement by introducing enforcement costs and misrepresentation into the economic analysis of export subsidies. Specifically, the present paper examines the economic causes of cheating on export subsidies and the consequences of enforcement costs and misrepresentation for the welfare effects and the transfer efficiency of this policy instrument. Policy design and implementation is modelled as a sequential game between a government that designs and enforces the policy and the recipients of the payments. Two alternative policy implementation scenarios are considered. In the first scenario, export subsidies are paid to private trading firms while in the second scenario subsidies are paid directly to the producers of the subsidised commodity. Analytical results show that the introduction of enforcement costs and cheating changes the welfare effects of export subsidies and their efficiency in redistributing income to producers. The analysis also shows that, contrary to what is traditionally believed, the incidence of export subsidies depends on the group that is subsidised to export the surplus quantity – the way the policy is implemented. The results provide additional support for the contention that the economic consequences of cheating are highly policy-specific. Finally, the analysis reveals that when the government faces restrictions on either the volume or the value of export subsidies, cheating reduces the distortionary effects of the policy on international markets. This is true irrespective of whether subsidies are paid to trading firms or to producers.International Relations/Trade,

Export efficiency of black carbon aerosol in continental outflow: Global implications

We use aircraft observations of Asian outflow from the NASA Transport and Chemical Evolution over the Pacific (TRACE-P) mission over the NW Pacific in March–April 2001 to estimate the export efficiency of black carbon (BC) aerosol during lifting to the free troposphere, as limited by scavenging from the wet processes (warm conveyor belts and convection) associated with this lifting. Our estimate is based on the enhancement ratio of BC relative to CO in Asian outflow observed at different altitudes and is normalized to the enhancement ratio observed in boundary layer outflow (0–1 km). We similarly estimate export efficiencies of sulfur oxides (SO x = SO2(g) + fine SO4 2−) and total inorganic nitrate (HNO3 T = HNO3(g) + fine NO3 −) for comparison to BC. Normalized export efficiencies for BC are 0.63–0.74 at 2–4 km altitude and 0.27–0.38 at 4–6 km. Values at 2–4 km altitude are higher than for SO x (0.48–0.66) and HNO3 T (0.29–0.62), implying that BC is scavenged in wet updrafts but not as efficiently as sulfate or nitrate. Simulation of the TRACE-P period with a global three-dimensional model (GEOS-CHEM) indicates that a model timescale of 1 ± 1 days for conversion of fresh hydrophobic to hydrophilic BC provides a successful fit to the export efficiencies observed in TRACE-P. The resulting mean atmospheric lifetime of BC is 5.8 ± 1.8 days, the global burden is 0.11 ± 0.03 Tg C, and the decrease in Arctic snow albedo due to BC deposition is 3.1 ± 2.5%.Earth and Planetary Science

MARKET ALLOCATION RULES FOR NONPRICE PROMOTION WITH FARM PROGRAMS: U.S. COTTON

Rules are derived to indicate the optimal allocation of a fixed promotion budget between domestic and export markets when the commodity in question represents a significant portion of world trade and is protected in the domestic market by a deficiency-payment program. Optimal allocation decisions are governed by advertising elasticities in the domestic and export markets and the export market share. PromotionÂ’'s ability to lower deficiency payments is inversely related to the absolute value of demand elasticities in the domestic and export markets and directly related to advertising elasticities and certain policy parameters. The empirical application suggests subsidies for nonprice export promotion may be efficiency increasing in a second-best sense. That is, the heightened subsidies associated with the Targeted Export Assistance program and the Market Promotion Program appear to have corrected allocative errors that favored domestic market promotion.Agricultural and Food Policy,

Green Services and Emergence and Recovery from the Global Economic Slowdown in Developing Asian Economies

The global economic slowdown has again highlighted the vulnerability of export-led development models and economies to downturns in export markets. Economic deepening or “rebalancing” with an emphasis on service-sector development should be—and is becoming—one long-term response to the crisis by Asia's emerging economies. In the long run, sustainable economic development will depend in part on achieving a “green” trajectory of service sector development, in which services help green the “product economy.” In the short run, however, can services help address short- and medium-term challenges of emergence and recovery from the crisis—particularly those of at least resuming historic rates of poverty alleviation and inclusive growth? Meeting these challenges will require that export sectors deal successfully with challenging market conditions. There is a class of closely related business-to-business services which act to green the product economy, and which would improve the competitiveness of export sectors and husband scarce public resources by optimizing the efficiency of infrastructure utilization. These are functional procurement/efficiency services, which transform procurement of environmentally problematic goods and services—such as waste disposal, energy, chemicals, and transport—into performance-based services in which service providers profit by increasing the customer's eco-efficiency. Energy Service Companies (ESCOs) are the best-known of these service models. These services appear to have strong potential among the larger, more sophisticated institutions and commercial and industrial enterprises in developing Asian states, particularly in Asia's more advanced developing economies.green service sector; energy service companies asia

Accounting for environmental factors, bias and negative numbers in efficiency estimation: A bootstrapping application to the Hong Kong banking sector

This paper examines the evolution of Hong Kong’s banking industry’s technical efficiency, and its macroeconomic determinants, during the period 2000-2006 through the prism of two alternative approaches to efficiency estimation, namely the intermediation and production approaches. Using a modified (Sharp, Meng and Liu, 2006) slacks-based model (Tone, 2001), and purging the efficiency estimates for random errors (Simar and Zelenyuk, 2007) , we firstly analyse the trends in bank efficiency. We then identify the ‘environmental’ factors that significantly affect the efficiency scores using an adaptation (Kenjegalieva et al. 2009) of the truncated regression approach suggested by Simar and Wilson. 2007). The first part of the analysis reveals that the Hong Kong banking industry suffered a severe downturn in estimated technical efficiency during 2001. It subsequently recovered, posting average efficiency scores of 92 per cent and 85 percent under the intermediation and production approaches respectively by the end of 2006. As for the sub-group analysis, commercial banks are, on average, shown to be the most efficient operators, while the investment bank group are shown to be the least efficient. Finally, with respect to the truncated regression analysis, the results suggest that smaller banks are more efficient than their larger counterparts, although larger banks are still able to enjoy gains from scale economies and benefit from the export of financial services. Moreover, private housing rent and the net export of goods and services are found to be negatively correlated with bank efficiency, while private consumption is shown to be positively correlated.Hong Kong Banks; DEA; Slacks; Environmental factors, Negative numbers; Bias.

Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa

Using firm-level data on manufacturing sectors in Africa, this paper addresses how domestic supply constraints and other firm characteristics explain the geographical orientation of firms'exports and the overall market diversification of African manufacturing exports. The degree of market diversification, measured by the number of export destinations, is highly correlated with export intensity at the firm level, and both embody strong scale effects. Technological factors, such as new vintage capital and Internet access, which improve production efficiency and lower export costs, show strong effects on the firm-level export intensity. Some qualitative differences exist between Africa's regional exports and exports to the global markets. Foreign ownership is a significant factor in characterizing the intensity of global exports but not regional exports. The technological factors are significant in both cases, but more so in global exports. Public infrastructure constraints, such as inferior power services and customs delays, seem to have more immediate impacts on regional exports in general, implying the relevance of addressing behind-the-border constraints in fostering regional integration in Africa. Customs efficiency does matter for textile exports to the global markets, underscoring the importance of improving trade facilitation in Africa for competitive participation of African producers in global supply chain industries.Economic Theory&Research,Microfinance,Free Trade,Debt Markets,Markets and Market Access