Reciprocal trade agreements in gravity models: a meta-analysis

Over the time a large number of reciprocal preferential trade agreements (RTAs) have been concluded among countries. Recently many studies have used gravity equations in order to estimate the effect of RTAs on trade flows between partners. These studies report very different estimates, since they differ greatly in data sets, sample sizes, and independent variables used in the analysis. So, what is the “true” impact of RTAs? This paper combines, explains, and summarizes a large number of results (1460 estimates included in 75 papers), using a meta-analysis (MA) approach. Notwithstanding quite an high variability, studies consistently find a positive RTAs impact on bilateral trade: the hypothesis that there is no effect of trade agreements on trade is easily and robustly rejected at standard significance levels. We provide pooled estimates, obtained from fixed and random effects models, of the increase in bilateral trade due to RTAs. Finally, information collected on each estimate allows us to test the sensitivity of the results to alternative specifications and differences in the control variables considered.Free Trade Agreements; Gravity equation; Meta-regression analysis; Publication bias.

Reverse electrodialysis – Multi effect distillation heat engine fed by lithium chloride solutions

Salinity Gradient Heat Engines (SG-HEs) have been proposed as a promising technology for converting low-temperature heat into electricity. The SG-HE includes two different processes: (i) a salinity gradient process where the salinity gradient between two solutions is converted into electricity and (ii) a thermal regeneration process where low-grade heat (T<100°C) is used to re-establish the original salinity gradient of the two streams. Among the proposed working solutions, aqueous solution of lithium chloride has been identified as one of the most promising thanks to its remarkable solubility and activity. In this work, a process model to study the performance of a SG-HE constituted by a Reverse ElectroDialysis (RED) unit coupled with a Multi Effect Distillation (MED) unit fed with lithium chloride solution is presented. The influence of the concentration of the inlet solution in the RED unit and the temperature difference in the evaporators of the MED unit on the performance were evaluated by considering ideal membranes. Furthermore, the impact of membrane permselectivity and resistance on the system performance was evaluated. Results showed promising system efficiencies, making this technology attractive for conversion of low-grade heat (<100°C) into electricity, but membrane properties should be enhanced

FDI and growth: what cross-country industry data say

Foreign Direct Investment, Economic Growth, Capital Intensity, Technological Progress, Total Factor Productivity

The Impact of Foreign Direct investment on Economic Performance in the Enlarged Europe

Foreign direct investment (FDI) inflows in 2011 increased in all major economic groups, developed, developing and transition economies (UNCTAD, 2012). Developing countries accounted for 45 per cent of global FDI inflows in 2011, of which East and South-East Asia accounted for almost half. Inflows to the transition economies of south-east Europe, the Commonwealth of Independent States (CIS) and Georgia accounted for 6 per cent. In fact, the overall increase was driven by East, South-East Asia and Latin America. In 2011 FDI outflows to developed countries also grew strongly, reaching $748 billion, up 21 per cent from 2010. FDI flows to Europe increased by 19 per cent, mainly owing to large cross-border mergers and acquisitions (M&As) by foreign multinational corporations (MNCs)

The black hole mass distribution in early-type galaxies: cusps in HST photometry interpreted through adiabatic black hole growth

The surface brightness profiles of early-type galaxies have central cusps. Two characteristic profile types are observed with HST: `core' profiles have a break at a resolved radius and logarithmic cusp slope gamma < 0.3 inside that radius; `power-law' profiles have no clear break and gamma > 0.3. With few exceptions, galaxies with M_V -20.5 have power-law profiles. Both profile types occur in galaxies with -22 < M_V < -20.5. We show that these results are consistent with the hypothesis that: (i) all early-type galaxies have black holes (BHs) that grew adiabatically in homogeneous isothermal cores; and (ii) these `progenitor' cores followed scaling relations similar to those of the fundamental plane. The models studied here are the ones first proposed by Young. Models with BH masses and progenitor cores that obey established scaling relations predict (at Virgo) that galaxies with M_V < -21.2 have core profiles and galaxies with M_V > -21.2 have power-law profiles. This reproduces both the sense and the absolute magnitude of the observed transition. Intrinsic scatter in BH and galaxy properties can explain why both types of galaxies are observed around the transition magnitude. The observed bimodality in cusp slopes may be due to a bimodality in M_bh/L, with rapidly rotating disky galaxies having larger M_bh/L than slowly rotating boxy galaxies. Application to individual galaxies with HST photometry yields a roughly linear correlation between BH mass and V-band galaxy luminosity, log M_bh = -1.83 + log L (solar units). This agrees with the average relation for nearby galaxies with kinematically determined BH masses, and also with predictions from quasar statistics (shortened abstract).Comment: 41 pages, LaTeX, with 11 PostScript figures. Submitted to the Astronomical Journal. Postscript version also available from http://sol.stsci.edu/~marel/abstracts/abs_R23.htm

Optimization of net power density in Reverse Electrodialysis

Reverse Electrodialysis (RED) extracts electrical energy from the salinity difference between two solutions using selective ion exchange membranes. In RED, conditions yielding a large net power density (NPD) are generally desired, due to the still large cost of the membranes. NPD depends on a large number of physical and geometric parameters. Some of these, for example the inlet concentrations of concentrate and diluate, can be regarded as “scenario” variables, imposed by external constraints (e.g., availability) or chosen by different criteria than NPD maximization. Others, namely the thicknesses HCONC, HDIL and the velocities UCONC, UDIL in the concentrate and diluate channels, can be regarded as free design parameters and can be chosen so as to maximize NPD. In the present study, a simplified model of a RED stack was coupled with an optimization algorithm in order to determine the conditions of maximum NPD in the space of the variables HCONC, HDIL,UCONC, UDIL for different sets of “scenario” variables. The study shows that an optimal choice of the free design parameters for any given scenario, as opposed to the adoption of standard fixed values for the same parameters, may provide significant improvements in NPD

Evaluation of the economic and environmental performance of low-temperature heat to power conversion using a reverse electrodialysis - Multi-effect distillation system

In the examined heat engine, reverse electrodialysis (RED) is used to generate electricity from the salinity difference between two artificial solutions. The salinity gradient is restored through a multi-effect distillation system (MED) powered by low-temperature waste heat at 100 ◦C. The current work presents the first comprehensive economic and environmental analysis of this advanced concept, when varying the number of MED effects, the system sizing, the salt of the solutions, and other key parameters. The levelized cost of electricity (LCOE) has been calculated, showing that competitive solutions can be reached only when the system is at least medium to large scale. The lowest LCOE, at about 0.03 €/kWh, is achieved using potassium acetate salt and six MED effects while reheating the solutions. A similar analysis has been conducted when using the system in energy storage mode, where the two regenerated solutions are stored in reservoir tanks and the RED is operating for a few hours per day, supplying valuable peak power, resulting in a LCOE just below 0.10 €/kWh. A life-cycle assessment has been also carried out, showing that the case with the lowest environmental impact is the same as the one with the most attractive economic performance. Results indicate that the material manufacturing has the main impact; primarily the metallic parts of the MED. Overall, this study highlights the development efforts required in terms of both membrane performance and cost reduction, in order to make this technology cost effective in the future

Determinants of trade: the role of innovation in presence of quality standards

This paper analyses the role that quality standards and innovation play on trade volume, by using a gravity model. The role of innovative activity and quality standards in enhancing trade performance is widely accepted in the literature. However, in this paper, we argue that the net effect of quality standards on trade depends on the producers’ ability to innovate and comply with these requirements. In particular, by using a sample of 60 exporting countries and 57 importing countries, for a wide range of 26 manufacturing industries over the period 1995-2000, we show that the most innovative sectors are more likely to enhance the overall quality of exports, and then gain a competitive advantage. We also find that this effect depends on the level of technology intensity at sector-level and on the level of economic development of exporting country