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81. The Optimal Distance to Port for Exporting Firms

Author:
Thomas Gries, Wim Naudé, and Marianne Matthee
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Success in international trade depends, amongst other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how distances within a country—for instance due to the location behaviour of exporting firms—matter to international trade. In this paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence from South Africa in support of the model.
Topic:
International Trade and Finance
Political Geography:
Africa and South Africa

82. The Rise of the Southern Economies: Implications for the WTO-Multilateral Trading System

Author:
Silvia Nenci
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The rise of the emerging southern economies – China, India, Brazil, and South Africa (CIBS) – as both economic and political actors, is having significant and far-reaching impact on the world economy. Notwithstanding the increasing amount of study and research, there are still important knowledge-gaps with respect to a range of likely consequences of the dynamism of the Southern Economies. One of these gaps concerns the implications for the WTO-multilateral trading system. The present paper proposes a review of the southern participation in the multilateral integration process and suggests a methodology to assess the impact of CIBS' rise on the future of the WTO system. Through the analysis of the trajectories of 'impact' of the trade channel, the paper draws some suggestive remarks.
Topic:
International Organization and International Trade and Finance
Political Geography:
Africa, China, India, Asia, South Africa, Brazil, and South America

83. Sustainability standards and coffee exports from Tanzania

Author:
Freedy T. M. Kilima, Jeremiah Makindara, and Evelyne Lazaro
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
One of the key trends characterizing agro-food trade in the last two decades has been the increas-ing complexity of public and private standards that are applied to imports into developed countries. This paper aims to identify critical areas to facilitate compliance with sustainability standards in coffee, which is the major traditional export crop for Tanzania. Coffee experienced a dramatic downward trend in world market prices that led to a decreased contribution to foreign exchange earnings in producing countries in the early 2000s. Although prices have improved over the past few years, economies that are dependent on traditional agricultural exports such as coffee need strategies to ensure stability in export earnings. One of the possible venues for increased agricultural export value is through exports to niche markets, such as coffee that is certified against one or more sustainability certifications (e.g. Fair Trade, Utz Certified, Organic, and Rainforest Alliance).
Topic:
Agriculture, Environment, and International Trade and Finance
Political Geography:
Africa and Tanzania

84. EU Trade Policy: Approaching a Crossroads

Author:
Roderick Abbott
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
In an important shift, inspired partly by drift in the Doha Round negotiations, the EU announced in 2006 that it would seek new free trade area arrangements with fast-growing economies, particularly in Asia. The plan, which ended a moratorium on the launch of bilateral trade talks, in place since 1996, was billed explicitly as a contribution to the EU's own growth and jobs strategy as well as a market-opening exercise. However, the policy has so far been no more effective than multilateral negotiations in producing concrete results. Negotiations with South Korea and ASEAN have made only slow progress, while the state of talks with India remains unclear. The EU spent most of 2007 renegotiating long-standing agreements with African, Caribbean and Pacific (ACP) countries in an effort to satisfy WTO rules. Meanwhile, the EU's partnership agreements with China and Russia have expired, and appropriate successor arrangements are still being sought. In both cases, a number of important bilateral problems and strains will need to be dealt with. With its various trade negotiations treading water, the EU may need to review its options. One could be a more aggressive pursuit of market access, modelled on the US approach. Alternatively, the EU's traditional preference for multilateral engagement may reassert itself.
Topic:
International Trade and Finance
Political Geography:
Africa, Russia, China, Europe, Asia, South Korea, and Caribbean

85. The Implications of China's Ascendancy for Africa

Author:
Hany Besada
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
China's spectacular economic progress has led some security analysts and policy makers in the North and the South to question Beijing's intentions in other parts of the world. This paper examines the extent to which China's engagement with Africa has produced mutual benefits for both and whether Africa is reaping the necessary benefits required for poverty alleviation and economic development. Chinese state-owned enterprises have invested billions of dollars in foreign reserves, construction, and engineering resources assisting African oil-producing exporters. While many in the west have started to question China's extraordinary level of interest in Africa – in particular, its economic engagement with perceived repressive regimes – African leaders view China's entry as a means of pulling Africa onto the path of globalization. It is thus important that African leaders and policy makers ensure that Chinese trade and investment bring reciprocal and tangible benefits for Africans, and contribute to economic stability and good governance.
Topic:
Foreign Policy, International Cooperation, International Trade and Finance, Treaties and Agreements, and International Affairs
Political Geography:
Africa and China

86. Kumasi Marketing Strategy: Tourism

Author:
Dario Cacciatore, Andre Le, Nicholas Levi-Gardes, Antonio Lopez Reus, and Kenny Sai-Kin Hsu
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Kumasi needs to position itself strategically as a cultural destination, communicate its attributes more effectively to tourists already in Ghana and differentiate itself from other cities and attractions Position should entail marketing a larger cultural region than just Kumasi Several positioning statements can transmit Kumasi's new marketing strategy: Kumasi - Heart of the Kingdom of Ashanti. Ashanti - The Hidden Kingdom. Kumasi - Come and See! Kumasi is well placed to capitalize on the growth of tourism in Ghana due to its status as a cultural capital The financial impact of tourism growth is potentially significant for the city and its surrounding districts The creation of the Ashanti Region Marketing Corporation is fundamental to proper coordination among stakeholders.
Topic:
Development, Economics, International Trade and Finance, and Markets
Political Geography:
Africa

87. Does Digital Divide or Provide? The Impact of Cell Phones on Grain Markets in Niger

Author:
Jenny C. Aker
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Due partly to costly information, price dispersion across markets is common in developed and developing countries. Between 2001 and 2006, cell phone service was phased in throughout Niger, providing an alternative and cheaper search technology to grain traders and other market actors. Weconstruct a novel theoretical model of sequential search, in which traders engage in optimal search for the maximum sales price, net transport costs. The model predicts that cell phones will increase traders' reservation sales prices and the number of markets over which they search, leading to a reduction in price dispersion across markets. To test the predictions of the theoretical model, we use a unique market and trader dataset from Niger that combines data on prices, transport costs, rainfall and grain production with cell phone access and trader behavior. We first exploit the quasi-experimental nature of cell phone coverage to estimate the impact of the introduction of information technology on market performance. The results provide evidence that cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 12 percent. Cell phones have a greater impact on price dispersion for market pairs that are farther away, and for those with lower road quality. This effect becomes larger as a higher percentage of markets have cell phone coverage. We provide empirical evidence in support of specific mechanisms that partially explain the impact of cell phones on market performance. Robustness checks suggest that the results are not driven by selection on unobservables, nor are they solely a result of general equilibrium effects. Calculations of the four-firm concentration index suggest that the grain market structure is competitive, so the observed reductions in price dispersion are not due to greater market collusion. The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets. The results suggest that cell phones improved consumer and trader welfare in Niger.
Topic:
Agriculture, International Trade and Finance, Markets, and Science and Technology
Political Geography:
Africa and Nigeria

88. The FDI Recession Has Begun

Author:
Karl Sauvant
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Institute for Latin American and Iberian Studies at Columbia University
Abstract:
With $1.8 trillion (according to UNCTAD), world foreign direct investment (FDI) flows reached an all-time high last year. All major regions benefitted from increased flows. But that was then. What is, and will be, the impact of the financial crisis and the recession on FDI flows this year and next?
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Africa, Russia, Central Asia, and Latin America

89. The Political Economy of Agricultural Trade Interventions in Africa

Author:
Robert H. Bates
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
This chapter explores the political economy of agricultural trade protection in Sub-Saharan Africa. Figure 1.1 portrays the impact of government intervention in support of agricultural and non-agricultural products by governments 1955-2005 in different regions of the globe. In devising these measures, World Bank researchers calculated for a sample of agricultural and non-agricultural commodities the degree to which government policies – tariffs, subsidies, or currency distortions -- led to a separation of domestic from world market prices. The measures represent un-weighted averages. When greater than 0, they indicate that government policies favor farming; when below, that their policies favor other sectors.
Topic:
Agriculture and International Trade and Finance
Political Geography:
Africa

90. Rules of Origin and the European Union's Preferential Trade Agreements, with Special Reference to the EU-ACP Economic Partnership Agreements

Author:
Peter Gibbon
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Economic opinion is in the process of re-interpreting low levels of uptake of non-reciprocal preferential trade agreements (PTAs) partly in terms of administrative barriers to preference utilization. Primary amongst these barriers are Rules of Origin. This paper reviews the literature on Rules of Origin as administrative barriers to the utilization of preferences accorded to African, Caribbean and Pacific (ACP) countries under the Coutonou Agreement, before going on to ex-amine current revisions of EU PTA Rules of Origin. These are embodied in a new (so-called 'Cotonou+') set of rules for the interim EU-ACP Economic Partnership Agreements (EPAs) and a second proposed set of rules for the EU's Generalised System of Preference (GSP) arrangements, including Everything But Arms. The Cotonou+ rules include some important concessions by the EU, especially for those ACP countries that do not have Least Developed Country (LDC) status, but are supposed to be re-negotiated within a fixed period in line the new EU GSP rules. However, the new GSP rules as revealed in the EU Draft Regulation of 2007 contain no real concessions for non-LDCs, and they introduce potentially trade-restrictive administrative requirements. These rules are currently (July 2008) under reconsideration by the EU, but it is clear that this exercise does not cover these elements. For this reason, harmonisation of the Cotonou+ and new GSP rules may be a source a serious discord in the negotiation of full EPAs, a process which is supposed to occur during 2008.
Topic:
International Trade and Finance
Political Geography:
Africa and Caribbean