Showing papers on "Bilateral trade published in 1983"
TL;DR: In this article, the authors conclude that it is uncertain percentage changes in the real exchange rate that are risky in international trade, by assuming real profit maximization, and uncertain prices as well as exchange rates.
413 citations
TL;DR: In this article, the authors prove rigorously V.K. Ramaswami's proposition that in bilateral trade between two countries sharing the same technology represented by a strictly concave production function with positive marginal productivities of capital and labor, the policy-active country can gain more by importing monopsonistically the relatively scarce factor than by placing monopolistic restrictions on the export of the relatively abundant one.
57 citations
01 Feb 1983
TL;DR: A critical survey of the treatment of international trade in global models, concentrating on what--in the author's opinion--is wrong with it can be found in this article, where it is argued that the exporters' push is at least as important as the importers' pull in determining bilateral trade flows.
Abstract: This paper is a critical survey of the treatment of international trade in global models, concentrating on what--in the author's opinion--is wrong with it.
After a brief review and classification of the different ways in which international trade relations are treated in global models, the neglect of bilateral trade relations is criticised on the grounds that it assumes more freedom in trading relations than there actually is. In the next section the common assumption that trade is demand-determined is questioned; it is argued that the exporters' "push" is at least as important as the importers' "pull" in determining bilateral trade flows. Section 5 raises the question: do trade balances approach zero in the long run, as many policy makers and model builders seem to believe? The author suggests that there is hardly any basis for this belief.
The role of relative prices is discussed in the next section, where it is shown that they provide no explanation of changes in market shares, and that export prices cannot be assumed to move in parallel with cost changes in different countries. Section 7 draws attention to the relative lack and unreliability of foreign trade price data: the "unit values" which can be observed tell us little about prices and it is hard to convert the domestic price statistics into comparable national export price indices.
The final section of the paper discusses different ways in which the structure of an international trade system can be defined, and presents a method by which the effects of trade policy and economic distance can be measured independently of changes in the volume of world trade and the changing shares of different countries in world trade. The usefulness of this kind of analysis in demonstrating the historical effects of trade policies is illustrated by means of some simple examples.
5 citations
TL;DR: In this article, the authors formalized a third reason of trade, namely the differences in nonrenewable resource endowments of two trading parties, and examined the division of the gains in trade in a dynamic bargaining framework which requires consistent action by both bargaining parties.
2 citations
Book•
01 Jan 1983
2 citations
TL;DR: The analysis of international trade flows is an approach by which, instead of the foreign-trade relations of a single country or bilateral trade between pairs of countries being surveyed, world commodity trade as a whole is examined to demonstrate its structural changes in a consistent framework.
Abstract: Publisher Summary The analysis of international trade flows is an approach by which, instead of the foreign-trade relations of a single country or bilateral trade between pairs of countries being surveyed, world commodity trade as a whole is examined to demonstrate its structural changes in a consistent framework A complex analysis of world trade is needed The research project has methodological and practical objectives: methods of analyzing and studying past and future structural changes in international trade are sought The study of the changing pattern of international trade has come into prominence with two major events: (1) unusual and spectacular changes in world market prices, terms of trade, and the exchange-rate system; (2) general recognition of the necessity for a new international economic order and the divergent expectations concerning this In national plans and projections of foreign trade, it is difficult to achieve internal consistency National estimates of exports and imports should be equal in every sector and commodity group to the differences between domestic output and consumption However, several methods of ensuring internal consistency have been known and have been applied
1 citations
01 Nov 1983
TL;DR: In this article, a system of approaches to modify, correcting, and aggregating initial data on bilateral trade flows and disaggregating aggregate flows obtained from model projections is presented. But the approach is not suitable for multiregional modeling.
Abstract: This paper has been motivated by the need to develop software and methods for analyzing, modifying and restructuring data on world trade in the Forest Sector Project. The paper outlines a system of approaches to (i) modifying, correcting, and aggregating initial data on bilateral trade flows and (ii) disaggregating aggregate flows obtained from model projections. The approaches suggested have their origin in experiences with multiregional modeling.