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Begin New Search Topic International Trade and Finance Political Geography United States

491. Liberalizing Agricultural Trade and Developing Countries

Author:
David Orden, Rashid S. Kaukab, and Eugenio Diaz-Bonilla
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
A diverse group of development and trade liberalization advocates agree that reduction of agricultural protection and subsidization in the world's wealthy countries is necessary to strengthen both international growth opportunities and the global trade regime. According to the consensus reached among participants attending a conference cosponsored by the Carnegie Endowment for International Peace and the Cordell Hull Institute, WTO Doha Round negotiations on agriculture should compel policy changes in industrialized countries to limit trade-distorting domestic subsidies for agricultural products, lower tariffs, increase market access, and eliminate export subsidies. In response to temporary hardships caused by an overall reduction in agriculture support, governments should have the flexibility to adopt temporary or limited domestic, and perhaps international, compensatory policies. Significant differences in perspective and policy prescriptions were expressed by conference participants about the appropriate speed and scope of agricultural liberalization in developing countries, especially if progress is not made toward reduced support for agriculture in developed countries.
Topic:
Development, International Organization, International Trade and Finance, and Science and Technology
Political Geography:
United States and Europe

492. Trade Preferences and Environmental Goods

Author:
Scott Vaughan
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
For the World Trade Organization (WTO), the most important development in a decade related to trade-environment linkages is the agreement to liberalize commerce in environmental goods and services. If properly executed, the agreement will increase the availability of “green” goods in global markets and break the North-South deadlock that has paralyzed discussions on the trade regime governing such goods.
Topic:
Environment, International Organization, International Trade and Finance, and Science and Technology
Political Geography:
United States

493. Reauthorize or Retire the Overseas Private Investment Corporation?

Author:
Ian Vásquez and John Welborn
Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The Overseas Private Investment Corporation is a government agency that provides loans and investment insurance to U.S. companies doing business around the world. Its four-year, renewable charter will expire in September 2003. Proponents of OPIC claim that the agency helps the U.S. economy and promotes economic development abroad.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States

494. Is America Exporting Misguided Telecommunications Policy?

Author:
Motohiro Tsuchiya and Adam Thierer
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Global telecommunications markets have traditionally been closed to foreign trade and investment. Recent World Trade Organization negotiations resulted in a Basic Telecommunications agreement that sought to construct a multilateral framework to reverse that trend and begin opening telecom markets worldwide. Regrettably, this new WTO framework is quite ambiguous and open to pro-regulatory interpretations by member states.
Topic:
International Trade and Finance, Science and Technology, and Treaties and Agreements
Political Geography:
United States, America, and South Asia

495. Taking Stock of Business: Public Opinion After the Corporate Scandals

Author:
Karlyn H. Bowman and Todd J. Weiner
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
More than a dozen corporate scandals have unfolded since December 2001. How have ordinary Americans reacted? One answer can be provided by the performance of the stock market. Another indicator is public opinion. As some of the key trials get underway, it's worth examining the polls to see how the scandals have affected perceptions of business. The results should provide some warning flags for Congress as that institution takes a closer look at the mutual fund industry.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States and America

496. The Chinese Economy: WTO, Trade, and U.S.-China Relations

Author:
Barry Naughton
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The Chinese economy is showing extraordinary dynamism, which partly reflects the early impact of the commitments in China's WTO accession agreement to liberalize the economy. Incoming foreign investment has increased, and trade has grown rapidly. At the same time, China is grappling with serious economic problems that may worsen in the near future. The most difficult problem in crafting China policy is deciding how to respond flexibly to this extraordinary mixture of dynamism and fragility. Rapid growth gives the Chinese economy remarkable resilience; but deep-seated institutional weakness and stubborn problems of poverty and unemployment create dangers of social and economic disruption. An effective U.S. China policy must navigate between the extremes of over-estimating China's current economic strength and under-estimating her potential.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States, China, and Asia

497. The Effect of Exchange Rate Fluctuations on Multinationals' Returns

Author:
Jane Ihrig and David Prior
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
<p>This paper examines if the type of exchange rate used or size of the movement in the exchange rate matters in estimating exchange-rate exposure of U.S. nonfinancial multinationals. We find that switching from a broad trade-weighted exchange rate to a 2-digit SIC industry exchange rate increases the number of significantly exposed firms in a simple Jorion (1990) regression by 60 percent. Then separating crisis from non-crisis months we find additional evidence of exposure. Although the value of exposure does not change with the size of the exchange rate movement, we find some firms have significant exposure only in crisis periods while others have significant exposure only during normal fluctuations in exchange rates. All told, we find about 1 in 4 firms' returns is significantly affected by movement in the exchange rate between 1995 and 1999. </p><blockquote><p> </p> </blockquote><p> </p><p> </p>
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

498. U.S. Investors' Emerging Market Equity Portfolios: A Security-Level Analysis

Author:
Francis E. Warnock and Hali J. Edison
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We analyze a unique data set and uncover a remarkable result that casts a new light on the home bias phenomenon. The data are comprehensive, security-level holdings of emerging market equities by U.S. investors. We document, as expected, that at a point in time U.S. portfolios are tilted towards firms that are large, have fewer restrictions on foreign ownership, or are cross-listed on a U.S. exchange. The size of the cross-listing effect is striking. In contrast to the well-documented underweighting of foreign stocks, emerging market equities that are cross-listed on a U.S. exchange are incorporated into U.S. portfolios at full international CAPM weights. Our results suggest that information asymmetries play an important role in equity home bias and that the benefits of international risk sharing are limited to select firms.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States

499. Cross-Border Listings, Capital Controls, and Equity Flows to Emerging Markets

Author:
Francis E. Warnock and Hali J. Edison
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We analyze capital flows to emerging markets in a framework that incorporates two quantitative measures of financial integration, the intensity of capital controls and the extent of cross-border listings, while controlling for traditional global (push) and country-specific (pull) factors. Two important results emerge. First, the cross-listing of an emerging market firm on a U.S. exchange is an important but short-lived capital flows event, suggesting that the cross-listed stock is in effect a new security that U.S. investors quickly bring into their portfolios. Second, the effect of financial liberalization on capital flows is more nuanced than is suggested by event studies: A reduction in capital controls results in increased inflows only when the controls were binding. Among the standard push and pull factors, global factors are important—slack U.S. economic activity is associated with increased flows to emerging markets—and U.S. investors appear to chase expected, but not past, returns.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States

500. IT Investment and Hicks' Composite-Good Theorem: The U.S. Experience

Author:
Jaime Marquez and Shing-Yi B. Wang
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We study whether aggregation residuals in U.S. private investment in information technology (IT) exhibit a predictable pattern that is consistent with Hicks' composite-good theorem and that may be used for forecasting. To determine whether one can extract such a pattern, we apply the general-to-specific strategy developed by Krolzig and Hendry (2001). This strategy combines ordinary least squares with a computer-automated algorithm that selects a specification based on coefficients' statistical significance, residual properties, and parameter constancy. Then, we derive the testable implications from Hicks' theorem and evaluate them with econometric formulations; we find qualified support for these implications. Having obtained these formulations, we evaluate their ex-post predictive accuracy and compare it to that of an autoregressive model. The key finding is that ignoring movement in relative prices results in a loss of information for predicting aggregation residuals.
Topic:
Economics, International Trade and Finance, and Science and Technology
Political Geography:
United States