International trade

Brian Varian, 23 June 2018

Brexit has sparked interest in trade agreements between Britain and the Commonwealth. This has a precedent in the Edwardian era, when the Dominions adopted policies of imperial preference toward imports from Britain. This column argues that New Zealand’s policy of imperial preference, enacted in 1903, was ineffective in diverting trade toward Britain, suggesting that trade policies within the British Empire or Commonwealth do not always achieve what they intend. 

Stephen Byrne, Jonathan Rice, 19 June 2018

While the effect of Brexit on trade between the UK and the remaining EU member states has received considerable attention, to date little work has considered the issue of non-tariff barriers. This column explores how increased documentary compliance and border delays will affect EU members’ exports to the UK. Time-sensitive goods are found to be most at risk of suffering from increases in non-tariff barriers. Based on current trade composition, Latvia, Ireland, and Denmark are the trading partners that will be most affected.

Saileshsingh Gunessee, Chris Milner, Zhaohui Niu, 19 June 2018

Trade liberalisation is expected to have ushered in an era of increased globalisation. This column uses a measure of overall trade protection comprising tariff-equivalent non-tariff measures and tariffs to examine whether protectionism has fallen or increased over the past two decades. The results suggest that overall protection levels have not decreased despite tariff liberalisation, as non-tariff measures have proliferated both across sectors and countries. These measures are now the main source of trade protection.

Alessandra Bonfiglioli, Rosario Crinò, Gino Gancia, 10 June 2018

To date there has been little systematic evidence on the role of firms in explaining country performance. This column explores how the products of firms from all over the globe fare in competition in the US market. Results show that the countries that capture larger market shares have more exporters, producing higher-quality products, with a more dispersed distribution of firm attributes. Larger and richer markets are characterised by a more dispersed distribution of sales and quality, and a higher incidence of superstar firms.

Koji Ito, 03 June 2018

Support for ‘anti-globalist’ policies across the developed world suggests that many people are concerned about the impact of globalisation on employment and wages. This column examines the wage premium for exporting among firms in Japan, using linked employer-employee data to control for other factors that may affect wages. Exports and wages clearly are correlated in Japan’s manufacturing sector, especially for smaller-scale plants and firms. 

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