Trade Openness (trade + openness)

Distribution by Scientific Domains


Selected Abstracts


MODELLING PRODUCTIVITY EFFECTS OF TRADE OPENNESS: A DUAL APPROACH,

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2009
SATYA PAUL
A cost function framework is used to model the productivity effect of trade openness in terms of cost saving. The idea of ,cost saving' is closer to the entrepreneur's view of productivity. An entrepreneur would expect a reduction in the cost of production if trade openness brings any benefits to their firm. The output-enhancing (primal) productivity effect of openness is obtainable from the cost-saving (dual) productivity effect through the cost-output link. The cost-function framework also enables us to investigate whether trade openness induces firms to adopt a technology that is biased towards the use or saving of any factor of production. An empirical exercise based on time series data for the Australian two-digit manufacturing industries reveals significant cost-saving and output-enhancing productivity effects of trade openness. Trade openness is biased towards the saving of labour and the use of capital. These results are quite insensitive to the choice of alternative measures of openness. [source]


TRADE OPENNESS: AN AUSTRALIAN PERSPECTIVE

AUSTRALIAN ECONOMIC PAPERS, Issue 3 2006
SIMON GUTTMANN
Australia's external trade is relatively low compared with the size of its economy. Indeed, Australia's openness ratio (exports plus imports as a proportion of GDP) in 2002 was the third-lowest among the 30 OECD countries. This paper seeks to understand Australia's low openness by analysing the empirical determinants of aggregate country trade. We present an equation for country openness which explains a substantial amount of the cross-country variation. The most important explanators of openness are population and a measure of distance to potential trade partners. Countries with larger populations trade less, as do countries that are relatively more remote. Furthermore, after controlling for trade policy there is little evidence of a positive correlation between openness and economic development. The openness equation suggests that Australia's level of trade is relatively close to what would be expected. The most important factors in explaining Australia's low openness ratio are its large geographic size and distance to the rest of the world. [source]


Demographic Change and Economic Growth in Asia

ASIAN ECONOMIC POLICY REVIEW, Issue 1 2009
David E. BLOOM
J11; O11 Abstract Trade openness, high savings rates, human capital accumulation, and macroeconomic policy only accounted for part of the 1965,1990 growth performance in East Asia. Subsequently, demographic change was shown to be a missing factor in explaining the East Asian growth premium. Since 1990, East Asia has undertaken major economic reforms in response to financial crises and other factors. We reexamine the role of the demographic transition in contributing to cross-country differences in economic growth through to 2005, with a particular focus on East Asia. We highlight the need for policy to offset potential negative effects of aging populations in the future. [source]


MODELLING PRODUCTIVITY EFFECTS OF TRADE OPENNESS: A DUAL APPROACH,

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2009
SATYA PAUL
A cost function framework is used to model the productivity effect of trade openness in terms of cost saving. The idea of ,cost saving' is closer to the entrepreneur's view of productivity. An entrepreneur would expect a reduction in the cost of production if trade openness brings any benefits to their firm. The output-enhancing (primal) productivity effect of openness is obtainable from the cost-saving (dual) productivity effect through the cost-output link. The cost-function framework also enables us to investigate whether trade openness induces firms to adopt a technology that is biased towards the use or saving of any factor of production. An empirical exercise based on time series data for the Australian two-digit manufacturing industries reveals significant cost-saving and output-enhancing productivity effects of trade openness. Trade openness is biased towards the saving of labour and the use of capital. These results are quite insensitive to the choice of alternative measures of openness. [source]


Mapping Internationalization: Domestic and Regional Impacts

INTERNATIONAL STUDIES QUARTERLY, Issue 4 2001
Etel Solingen
This article introduces a conceptual design for mapping the domestic impact of internationalization. It proposes that internationalization leads to a trimodal domestic coalitional profile and advances a set of expectations about the regional effects of each profile. Aggregate data from ninety-eight coalitions in nineteen states over five regions suggests that between 1948 and 1993 the three coalitional types differed in their international behavior. Internationalizing coalitions deepened trade openness, expanded exports, attracted foreign investments, restrained military-industrial complexes, initiated fewer international crises, eschewed weapons of mass destruction, deferred to international economic and security regimes, and strove for regional cooperative orders that reinforced those objectives. Backlash coalitions restricted or reduced trade openness and reliance on exports, curbed foreign investment, built expansive military complexes, developed weapons of mass destruction, challenged international regimes, exacerbated civic-nationalist, religious, or ethnic differentiation within their region, and were prone to initiate international crises. Hybrids straddled the grand strategies of their purer types, intermittently striving for economic openness, contracting the military complex, initiating international crises, and cooperating regionally and internationally, but neither forcefully nor coherently. These findings have significant implications for international relations theory and our incipient understanding of internationalization. Further extensions of the conceptual framework can help capture international effects that are yet to be fully integrated into the study of the domestic politics of coalition formation. [source]


Profit Margins in Mexico's Manufacturing Industry: an Econometric Study

METROECONOMICA, Issue 1 2000
Julio Lopez G.
Prices, wages and profit margins in Mexico have varied considerably. The purpose of this study is to analyze the evolution of profit margins in the Mexican manufacturing industry during the last two decades and to provide an explanation for the changes. The econometric study shows that surges in the exchange rate provoke increases in prices, both because imported input costs rise and because pressures from foreign competition are relaxed when domestic prices of imported goods rise. A second factor influencing margins is trade openness. Third, the level of profit margins also depends positively on the level of labor costs. An increase in labor costs tends to be passed along in a more than proportional manner to prices. Finally, an increase in interest rates seems to stimulate increases in profit margins, at least in some manufacturing divisions. [source]


Does a Country's Openness to Trade and Capital Accounts Lead to Financial Development?

ASIAN ECONOMIC JOURNAL, Issue 2 2008
Evidence from Malaysia
F19 and G29 This paper examines the role of trade openness and capital account openness in influencing financial development in Malaysia. The empirical findings using the bounds testing approach demonstrate that trade openness and capital account openness are positively significant determinants of financial development. However, there is no empirical support of the hypothesis that the simultaneous opening of both trade and capital accounts is necessary for financial development to take place. The evidence is valid for three banking sector development and two stock market development indicators. [source]


MODELLING PRODUCTIVITY EFFECTS OF TRADE OPENNESS: A DUAL APPROACH,

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2009
SATYA PAUL
A cost function framework is used to model the productivity effect of trade openness in terms of cost saving. The idea of ,cost saving' is closer to the entrepreneur's view of productivity. An entrepreneur would expect a reduction in the cost of production if trade openness brings any benefits to their firm. The output-enhancing (primal) productivity effect of openness is obtainable from the cost-saving (dual) productivity effect through the cost-output link. The cost-function framework also enables us to investigate whether trade openness induces firms to adopt a technology that is biased towards the use or saving of any factor of production. An empirical exercise based on time series data for the Australian two-digit manufacturing industries reveals significant cost-saving and output-enhancing productivity effects of trade openness. Trade openness is biased towards the saving of labour and the use of capital. These results are quite insensitive to the choice of alternative measures of openness. [source]