AN ECONOMY-WIDE ANALYSIS OF GM FOOD LABELING POLICIES IN TAIWAN

The development of agricultural biotechnology offers the opportunity to increase crop production, lowers farming costs, improves food quality and could reduce costs to consumers. For the food importing economies, the import quantities as well as prices will be affected through world market as the production technology of GM crops is adopted by the exporting countries. Many sectors will be affected by the use of these crops through vertical (or backward) and horizontal (or forward) linkages. The purpose of this paper is to develop an economy-wide quantitative assessment of the economic impacts of the introduction of GM products with and without labeling. The modeling framework used in this analysis is TAIGEM (Taiwan General Equilibrium Model), a multi-sectoral computable general equilibrium (CGE) model of the Taiwan¡¦s economy which is derived from ORANI model (Dixon, Parmenter, Sutton and Vincent, 1982). TAIGEM is amended by splitting corn and soybeans into GM and non-GM varieties. It also endogenizes the decision of producers and consumers to use GM vs. non-GM corn and soybeans in their intermediate uses and consumption, respectively. We also consider the consumers¡¦ acceptance of GM food so that the mandatory labeling policy can be examined. Our simulation results indicate that the most extreme import ban on GM crops would be very costly in terms of total production values, ranging from NT$ 40 to 90 billions per year.Research and Development/Tech Change/Emerging Technologies,

Risk Spillovers in Returns for Chinese and International Tourists to Taiwan

Fluctuations in the numbers of visitors directly affect the rates of return on tourism business activities. Therefore, maintaining a firm grasp of the relationship between the changes in the numbers of Chinese tourists and international travellers visiting Taiwan is conducive to the formulation of an effective and practical tourism strategy. Although the topic of international visitors to Taiwan is important, existing research has discussed the issue of the travel demand between Chinese tourists and international travellers visiting Taiwan. This paper is the first to examine the spillover effects between the rate of change in the numbers of Chinese tourist arrivals and the rate of change in the numbers of international traveller arrivals. Using daily data for Chinese tourists and international travellers visiting Taiwan over the period from 1 January 2014 to 31 October 2016, together with the Diagonal BEKK model, the paper analyses the co-volatility spillover effects between the rate of change in the numbers of international travellers and the rate of change in the numbers of Chinese tourists visiting Taiwan. The empirical results show that there is no dependency relationship between the rate of change in the numbers of Chinese tourists and the rate of change in the numbers of international travellers visiting Taiwan. However, there is a significant negative co-volatility spillover effect between the rate of change in the numbers of Chinese tourists and the rate of change in the numbers of international travellers. The empirical findings suggest that Taiwan should abandon its development strategy of focusing only on a single market, namely China, and to be pro-active in encouraging visits by international travellers to Taiwan for sightseeing purposes, thereby increasing the willingness of international travellers to visit Taiwan. Moreover, with the reduction in the numbers of Chinese tour groups visiting Taiwan, and increases in the numbers of individual travellers, the Taiwan Government should change its previous travel policies of mainly attracting Chinese tour group travellers and actively promoting in-depth tourism among international tourists, by developing tourism that focuses on the special characteristics of different localities. In this way, the government can enhance the quality of Taiwan’s tourism, and also attract travellers with high spending power

An event study of chinese tourists to Taiwan

The number of Chinese tourists visiting Taiwan has been closely related to the political relationship across the Taiwan Strait. The occurrence of political events and disasters or accidents have had, and will continue to have, a huge impact on the Taiwan tourism market. To date, there has been relatively little empirical research conducted on this issue. In this paper, tourists are characterized as being involved in one of three types of tourism: group tourism (group-type), individual tourism (individualtype), and medical cosmetology (medical-type). We use McAleer’s (2015) fundamental equation in tourism finance to examine the correlation that exists between the rate of change in the number of tourists and the rate of return on tourism. Second, we use the event study method to observe whether the numbers of tourists have changed abnormally before and after the occurrence of major events on both sides of the Strait. Three different types of conditional variance models, namely, GARCH (1,1), GJR (1,1) and EGARCH (1,1), are used to estimate the abnormal rate of change in the number of tourists. The empirical results concerning the major events affecting the changes in the numbers of tourists from China to Taiwan are economically significant, and confirm which types of tourists are most likely to be affected by such major events.Fac. de Ciencias Económicas y EmpresarialesInstituto Complutense de Análisis Económico (ICAE)TRUEpu

An event study of chinese tourists to Taiwan

The number of Chinese tourists visiting Taiwan has been closely related to the political relationship across the Taiwan Strait. The occurrence of political events and disasters or accidents have had, and will continue to have, a huge impact on the Taiwan tourism market. To date, there has been relatively little empirical research conducted on this issue. In this paper, tourists are characterized as being involved in one of three types of tourism: group tourism (group-type), individual tourism (individualtype), and medical cosmetology (medical-type). We use McAleer’s (2015) fundamental equation in tourism finance to examine the correlation that exists between the rate of change in the number of tourists and the rate of return on tourism. Second, we use the event study method to observe whether the numbers of tourists have changed abnormally before and after the occurrence of major events on both sides of the Strait. Three different types of conditional variance models, namely, GARCH (1,1), GJR (1,1) and EGARCH (1,1), are used to estimate the abnormal rate of change in the number of tourists. The empirical results concerning the major events affecting the changes in the numbers of tourists from China to Taiwan are economically significant, and confirm which types of tourists are most likely to be affected by such major events

Factors Affecting Sesame Seed Exports in Burkina Faso: The Vector Error Correction Approach

The research is financed by Academia Sinica, Taiwan. Grant No. AS-SS-107-02. Abstract Burkina Faso's (BFA) dependence on a single export crop, namely cotton, has so far threatened its economy since the fluctuating and uncontrollable drops in world cotton prices. The diversification of cash crops has become a national priority that is appropriated day by day by actors of rural development, and more particularly by farmers seeking to improve and secure their income. Thus, export crops, such as sesame, appear obvious and essential, not only for farmers’ income security but also for the country by its ability to attract currencies. In the last decade, BFA’s the sesame sector has recorded a tremendous growth both in quantity and value of exports to being the eighth world largest exporter of sesame seed. Considering its unequaled performance in the export of sesame seed, we deemed relevant to identify the key factors affecting that performance and to study their effects on sesame seed export earnings in order to draft appropriated policies aimed to enhance the country’s earnings. This study uses the cointegration approach, and has purposely designed exports value as the independent variable to analyze the country exports performance using time series data for the period of 47 years (1970-2016). One cointegration vector is found between the variables employed; thereby the Vector Error Correction Model has been performed. The empirical results reveal that nominal exchange rate, producer price, world export volume of sesame seed as a proxy of world demand, and world price are key factors affecting significantly the country’s exports performance in the short-run. Moreover, in the long-run nominal exchange rate, production, producer price, and world export price are factors determining significantly export earnings of sesame seed in Burkina Faso. For Burkina Faso to increase its market shares and export earnings, especially in the long-run, it is principally recommended to boost the production by increasing significantly yields and ensure an appropriate transmission of international prices increments to farmers. Keywords: Agricultural Export, Determinants of Agricultural Exports, Sesame Seed, Cointegration, Burkina Faso. DOI: 10.7176/DCS/10-4-03 Publication date: April 30th 202