Preferential trade agreements and antidumping actions against members and nonmembers

In a three-country oligopoly model, this paper analyzes a country\u27s decisions concerning antidumping (AD) action against two foreign countries and the relationship between those decisions and regional trade agreements (RTAs). An RTA intensifies product-market competition in the markets of member countries and lowers product prices, while it raises export prices of goods subject to tariff reductions. This effect widens the dumping margin of the non-member firm and narrows the dumping margin of the member firm. If the government is more concerned with domestic firm profit in its AD decision, the RTA may invoke the member\u27s AD action against the nonmember. If the governments attach a sufficiently high value on social welfare, however, the RTA may promote the AD action against the member. If the governments\u27 weight on the domestic firm\u27s profit is neither high nor low, an RTA may block the AD actions against both countries

FDI in Post-Production Services and Product Market Competition

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. We explore an international duopoly model in which a foreign firm has the option of outsourcing post-production services to its domestic rival or providing those services by establishing its own facilities through FDI. We demonstrate that trade liberalization in goods may hurt domestic consumers and lower world welfare, and that the negative welfare impacts are turned into positive ones if service FDI is also liberalized. This finding yields important policy implications, given the reality that the progress of liberalization in service sectors is still limited.post-production services, trade liberalization, FDI, outsourcing, international oligopoly

FDI in Post-Production Services and Product Market Competition

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. We explore an international duopoly model in which a foreign .rm has the option of outsourcing post-production services to its domestic rival or providing those services by establishing its own facilities through FDI. We demonstrate that trade liberalization in goods may hurt domestic consumers and lower world welfare, and that the negative welfare impacts are turned into positive ones if service FDI is also liberalized. This .nding yields important policy implications, given the reality that the progress of liberalization in service sectors is still limited.post-production services, rade liberalization, FDI, outsourcing, international oligopoly

FDI in Post-Production Services and Product Market Competition

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. A foreign firm faces a higher cost to perform such services than its domestic rival because of the lack of proximity to customers. We explore an international duopoly model in which a foreign firm can reduce its cost for post-production services by foreign direct investment (FDI), or alternatively can outsource such services to its domestic rival. Trade liberalization, if not accompanied by liberalization of service FDI, can hurt domestic consumers and decrease world welfare, but the negative welfare impacts can be mitigated and eventually turned into positive ones as service FDI is also liberalized. This finding yields important policy implications, given the reality that the progress of liberalization in service sectors is limited compared to the substantial progress already made in trade liberalization.post-production services, trade liberalization, FDI, outsourcing, international oligopoly

Impacts of lockdown policies on international trade

The aim of this study is to quantify how lockdown policies implemented in response to the COVID-19 pandemic affected international trade in the first half of 2020. We examine monthly world trade data between January and June in both 2019 and 2020. Our findings can be summarized as follows. Stay-at-home orders did not have significant and robust effects on trade. Negative effects were found in only some industries, including those producing durable products and essential products. However, workplace closures had significantly negative effects on trade, except for intra-Asian trade. These effects of workplace closures can be found in most industries

FDI in Post-Production Services and Product Market Competition

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. A foreign firm faces a higher cost to perform such services than its domestic rival because of the lack of proximity to customers. We explore an international duopoly model in which a foreign firm can reduce its cost for post-production services by foreign direct investment (FDI), or alternatively can outsource such services to its domestic rival. Trade liberalization, if not accompanied by liberalization of service FDI, can hurt domestic consumers and decrease world welfare, but the negative welfare impacts can be mitigated and eventually turned into positive ones as service FDI is also liberalized. This finding yields important policy implications, given the reality that the progress of liberalization in service sectors is limited compared to the substantial progress already made in trade liberalization.post-production services, trade liberalization, FDI, outsourcing, international oligopoly

Tariff Elimination versus Tax Avoidance: Free Trade Agreements and Transfer Pricing

This study explores the new roles of rules of origin (ROO) when multinational enterprises (MNEs) manipulate their transfer prices to avoid a high corporate tax. ROO of a free trade agreement (FTA) require exporters to identify the origin of exports to be eligible for a preferential tariff rate. The results suggest that a value-added criterion of ROO restricts MNEs’ abusive transfer pricing. Interestingly, an FTA with ROO can induce MNEs to shift profits from a low-tax country to a high-tax country. Because ROO augment tax revenues inside FTA countries, they can transform a welfare-reducing FTA into a welfare-improving FTA

Impacts of COVID-19 on global value chains

We investigate the impacts of COVID-19 on global value chains by examining bilateral trade in finished machinery products from January to June in both 2019 and 2020. We use the numbers of COVID¬ 19 cases and deaths as measures of the impact of the pandemic. Specifically, we investigate how these impacts affect value chains in three scenarios—countries that import finished machinery products, countries that export finished machinery products, and countries that export machinery parts to countries exporting finished machinery products—to assess the impacts on demand, output, and supply chain effects, respectively. In our analysis, the largest negative impacts were from supply chain effects, followed by output effects. In contrast, we did not find significant impacts from demand effects. We also found that output effects are not so strong in intra-Asian trade compared with trade in other regions

Understanding the Effects of Preferential Trade Agreements: A Theoretical Overview

In　recent　years，　the　number　of　preferential　trade　agreements（PTAs）increases　rapidly．　In　tandem 　with　the　evolution　of　the　new　trade　theory，　the　economic　ana豆ysis　of　PTAs　has　also　been developed　drastically．　This　paper　intends　to　organize　a　complicated　mass　of　existing　theories　of PTAs　and　places　special　emphasis　on　their　relationship　with　multilateral　trade　liberalization． Some　new　topics　such　as　the　effects　of　intemal　market　integration　or　those　of　rules　of　origin　are also　discussed

Impacts of covid-19 on international trade : evidence from the first quarter of 2020

The aim of this study is to present early evidence for the impacts of coronavirus disease 2019(COVID-19) on international trade. Accordingly, we investigate trade among 186 countries in the firstquarter of 2020. The disease burden of COVID-19 is measured in terms of the number of cases anddeaths. Our findings can be summarized as follows. First, the COVID-19 burden in exportingcountries, but in not importing countries, has a significantly negative effect on trade. Second, thisnegative impact of exporters’ COVID-19 burden is seen in exports from developing countries but notfrom developed countries. Third, the COVID-19 burden in an exporter’s neighboring countries has apositive effect on its exports. Fourth, importers’ COVID-19 burden has positive effects on trade in theagricultural industry, whereas exporters’ COVID-19 burden has negative effects, particularly in thetextile, footwear, and plastic industries