Showing papers in "Journal of International Economics in 2016"

TL;DR: This paper applied the Laubach-Williams methodology to the United States and three other advanced economies (Canada, the Euro Area, and the United Kingdom) and found that large declines in trend GDP growth and natural rates of interest have occurred over the past 25 years in all four economies.

TL;DR: In this paper, the authors developed a quantitative spatial model that incorporates a rich geography of trade costs and labor mobility with heterogeneous worker preferences across locations, and showed that factor mobility introduces quantitatively relevant differences in the counterfactual predictions of constant and increasing returns to scale models.

TL;DR: In this article, the terms of trade effects of free trade agreements (FTAs) implemented in the 1990s are inferred for 40 countries plus a rest-of-the-world aggregate using an endowments general equilibrium model.

TL;DR: The authors examined how uncertainty affects firms' internationalization choices and found that most firms serve a market via exports before investing there, and that the probability that a firm starts investing in a foreign country increases with its export experience in that country.

TL;DR: In this article, the authors investigate the effects of intermediate input tariff reduction on the innovation activities of domestic firms and find that input tariff cut results in less innovation undertaken by Chinese firms.

TL;DR: In this paper, an identification strategy for estimating the effects of the container revolution on world trade has been proposed, which exploits time and cross-sectional variation in countries' first adoption of container facilities and combines it with product-level variation in containerizability and container usage.

TL;DR: In this paper, the authors revisited the classic question in international economics: how does a country's pro-ductivity growth aect worldwide real incomes through international trade? And they identified the channels through which productivity shocks transmit in a model featuring inter-industry trade as in Ricardo (1817), intra-Industry trade and heterogeneity as in Melitz (2003).

TL;DR: In this article, the effects of cross-border mergers and acquisitions (M&As) on the innovation of European firms are analyzed. And the results indicate that a considerable increase in post-acquisition innovation in the merged entity is mainly driven by inventors based in the acquirer's country.

TL;DR: In this article, the causal effect of increased import intermediate input use on firm export outcomes was investigated using data from Chinese manufacturing firms and they found that firms that expanded their intermediate input imports expanded the volume and scope of their exports.

TL;DR: This paper studied how contract enforcement and export experience shape firm export dynamics in an environment with incomplete information and showed that exporters start with higher volumes and sell for longer periods in countries with better contracting institutions and when they have prior foreign experience.

TL;DR: In this article, the authors estimate the impact of international conflict on bilateral trade relations using several incidents of politically motivated boycotts: The boycott of Danish goods by Muslim countries following the Muhammad Comic Crisis in 2005/2006, the Chinese boycott of Japanese goods in response to the Senkaku/Diaoyu Island conflict in 2012, the boycott of French products in the US over the Iraq War in 2003, and Turkey's boycott of Israel over the Gaza conflict in 2014.

TL;DR: The authors examined how financial frictions affect companies' choice between processing and ordinary trade and how this decision affects performance and showed that more profitable trade regimes require more working capital because they entail higher up-front costs.

TL;DR: In this article, the authors explore how the multi-dimensional aspects of information released by the FOMC has effects on both market and real economic variables using tools from computational linguistics.

TL;DR: The authors showed that during the crisis the elasticity of services exports with respect to GDP growth in destination countries was significantly different from that of goods exports, and that the negative income shock in partner countries affected exports of goods but not exports of services.

TL;DR: This paper used the Survey of Professional Forecasters (SOPF) to study the effect of government spending on the real exchange rate and found that much of the government spending is well anticipated over a one year horizon.

TL;DR: In this paper, the authors use changes in Brazil's tax on capital inflows from 2006 to 2013 to test for direct portfolio effects and externalities from capital controls on investor portfolios.

TL;DR: In this paper, the authors re-examine the relationship between trade and business cycle synchronization using new value-added trade data for 63 advanced and emerging economies during 1995-2013 and identify a significantly positive impact of bilateral (value-added) trade intensity on business cycle synchrony.

TL;DR: In this article, the authors examined the relationship between changes in the minimum wage and firms' export behavior in China using detailed firm-level data of medium and large manufacturing enterprises between 1998 and 2007.

TL;DR: This article showed that a one-standard deviation negative shock to a country's letter-of-credit supply reduces US exports to that country by 15 percentage points, driven by countries that are small and where few banks are active.

TL;DR: In this paper, the authors investigate the effects of real exchange rate changes on the behavior of firms exporting multiple products with heterogeneous levels of quality and predict more pricing-to-market and a smaller response of export volumes to a real depreciation for higher quality goods.

TL;DR: This article found that local labour markets more affected by Chinese import competition experienced slower growth in manufacturing wages between 2000 and 2010, however, faster wage growth in locations benefiting from rising Chinese commodity demand during the same period.

TL;DR: In this paper, the authors show that it is desirable to employ both macro-prudential regulation and capital controls to mitigate contractionary exchange rate depreciations, no matter whether they are financed by domestic or foreign lenders.

TL;DR: This paper found that intra-firm trade is concentrated among a small number of large affiliates within large multinational corporations; the median affiliate ships nothing to the rest of the corporation, and the input-output coefficient linking the parent's and affiliate's industries of operation is not related to a corresponding intrafirm flow of goods.

TL;DR: This article carried out a large-scale investigation of technical trading rules in the foreign exchange market, using daily data over 45-years for 30 developed and emerging market currencies, and employed a stepwise test to counter data-snooping bias and examined over 21,000 technical rules.

TL;DR: In this paper, the authors developed a novel economic theory of two-way trade in a homogenous good, electricity, and developed a model of reciprocal load smoothing, where international trade provides insurance.

TL;DR: In this paper, the authors explore the determinants of firm survival in export markets and derive the probability of export survival upon entry in a market and show that it increases with the ratio of sunk to fixed costs and is insensitive to the profitability shifters.

TL;DR: In this article, the authors analyzed the differential effects of household and business credit dynamics on business cycles in emerging market economies and found that household credit is more robust to shocks than business credit.

TL;DR: In this paper, a model of sovereign debt and default with endogenous participation rates in bailout programs was developed, where conditionality was introduced as a constraint on fiscal policy, and the authors showed that increasing the intensity of conditionality lowers the bailout participation rate and generates a hump-shaped pattern of sovereign default risk.

TL;DR: In this paper, the authors present stylized facts on specific macro, micro and other drivers of invoicing based on 45 million Canadian import transactions and confirm the role of the market share of an exporting country at the industry level.

TL;DR: The authors developed an integrated, multi-country model that accounts for the interactions between the labor market, fiscal, and market size effects of migration, as well as for trade relations between countries.