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  1. Preference utilization in the global economy
    an empirical analysis
    Erschienen: 4 May 2022
    Verlag:  World Trade Organization, Economic Research and Statistics Division, [Geneva]

    This paper analyses the determinants of preference utilization using a novel WTO dataset that allows us to measure the underutilization of preferences across several importers, exporters and products over time. Building on the previous literature, we... mehr

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    This paper analyses the determinants of preference utilization using a novel WTO dataset that allows us to measure the underutilization of preferences across several importers, exporters and products over time. Building on the previous literature, we confirm that preference utilization is increasing with the size of exports, preference margin and geographical and linguistic proximity. We find that utilization rates tend to be higher for reciprocal preferences compared to non-reciprocal preferences, and that the incentive to use preferences increases with the share of competitors' exports that is eligible for preferential treatment. Our most innovative contribution is the analysis of the relationship between preference utilization and the production structure of the countries that benefit from preferential market access. Using an instrumental variable approach, we show that an increase in value added reduces both underutilization and its sensitivity with respect to the preference margin, making the use of preferences more robust with respect to trade policy changes. Analogously, a change in the preference margin will have a differential impact on sectors depending on their value added content. We explain this finding by introducing the concept of "effective preference margin" to measure the importance of the benefits from preference utilization relative to the value added content of exports.

     

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    Quelle: Verbundkataloge
    Sprache: Englisch
    Medientyp: Buch (Monographie)
    Format: Online
    Weitere Identifier:
    hdl: 10419/254327
    Auflage/Ausgabe: Manuscript date: 25 February 2022
    Schriftenreihe: Staff working paper ; ERSD-2022, 04
    Schlagworte: Trade policy; preference utilization; value added trade
    Umfang: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  2. The impact of LDC graduation on trade
    a quantitative assessment
    Erschienen: 28 February 2022
    Verlag:  World Trade Organization, Economic Research and Statistics Division, [Geneva]

    Several Least-Developed Countries (LDCs) will graduate from the LDC status in the coming decade implying that they will lose preferential access to export markets. We quantify the expected impact of LDC graduation on exports of graduating and... mehr

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    Several Least-Developed Countries (LDCs) will graduate from the LDC status in the coming decade implying that they will lose preferential access to export markets. We quantify the expected impact of LDC graduation on exports of graduating and non-graduating LDCs incorporating detailed preference utilization data in a partial equilibrium model. We compare the results under actual and full preference utilization rates. Separately, we explore how underutilization of tariff preferences affects the exports of countries benefiting from such preferences. The analysis generates four main results. First, according to our projections, graduation will have a negative impact on the exports of graduating LDCs (more than US$ 6 billion export loss or 6% of exports), especially in the clothing sector. Second, the adverse trade effects of graduation would be overestimated by 30% under full instead of actual utilization rates. Third, our projections suggest that the increase in exports of non-graduating LDCs following graduation of other LDCs would be limited, implying that non-graduating poorer LDCs may hardly benefit from graduation of richer LDCs. Fourth, our projections suggest that increasing the utilization of LDC preferences would have positive trade effects. The exports of LDCs would increase by almost US$ 7 billion if they simultaneously switched to a full utilization regime.

     

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    Sprache: Englisch
    Medientyp: Buch (Monographie)
    Format: Online
    Weitere Identifier:
    hdl: 10419/254328
    Auflage/Ausgabe: Manuscript date: 28 February 2022
    Schriftenreihe: Staff working paper ; ERSD-2022, 05
    Schlagworte: LDC graduation; tariff preferences; partial equilibrium model
    Umfang: 1 Online-Ressource (circa 29 Seiten)
  3. Comparing different approaches to tackle the challenges of global carbon pricing
    Erschienen: 4 July 2022
    Verlag:  World Trade Organization, Economic Research and Statistics Division, [Geneva]

    Climate change mitigation faces two main policy challenges: the need for global cooperation to tackle the collective action problem and the need to share the burden of global carbon pricing fair way following the principle of common but... mehr

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    Climate change mitigation faces two main policy challenges: the need for global cooperation to tackle the collective action problem and the need to share the burden of global carbon pricing fair way following the principle of common but differentiated responsibility (CBRD). In this paper we explore the best ways to incentivize regions to reduce their CO2 emissions while minimizing the welfare losses for low-income countries using simulations with a recursive dynamic computable general equilibrium (CGE) model. We first present the necessity, efficiency and urgency of global carbon pricing policies climate change mitigation policies. Global carbon pricing is necessary to tackle climate change, is more efficient than regional carbon pricing, and is urgent to prevent a patchwork of carbon pricing policies leading to calls for border carbon adjustment (BCA). However, because the impact of global carbon pricing on most regions is negative, complementary policies are needed to provide sufficient incentives to join a global carbon pricing coalition and at the same time share the burden fairly. We examine four potential complementary policies: BCA, Nordhaus's climate club, a global incentive scheme, and emission trading with progressive emission reduction targets. We evaluate these proposals based on their projected effects on average income and income inequality among countries, as well as their effectiveness as an incentive to introduce carbon pricing. BCA scores poorly along the three dimensions; Nordhaus's carbon club performs well as an incentive tool but has a negative impact on income and income inequality; the global carbon incentive has a positive impact on income and income inequality but performs poorly as an incentive tool; and emission trading with progressive reduction targets scores well across all dimensions. We conclude with a discussion of the feasibility of emission trading.

     

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    Sprache: Englisch
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    hdl: 10419/261350
    Auflage/Ausgabe: Manuscript date: 21 June 2022
    Schriftenreihe: Staff working paper ; ERSD-2022, 10
    Schlagworte: Structural change; international trade; globalization
    Umfang: 1 Online-Ressource (circa 61 Seiten), Illustrationen
  4. Inputs in geopolitical distress
    a risk assessment based on micro data

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    Sprache: Englisch
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    Schriftenreihe: Questioni di economia e finanza / Banca d'Italia ; number 819 (November 2023)
    Schlagworte: Geoeconomic fragmentation; international trade; imported inputs; GVC
    Umfang: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  5. Trade in the time of COVID-19
    an empirical analysis based on Italian data
    Erschienen: [2023]
    Verlag:  Banca d'Italia Eurosistema, [Rom]

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    Sprache: Englisch
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    Schriftenreihe: Temi di discussione / Banca d'Italia ; number 1427 (November 2023)
    Schlagworte: trade; global value chains; COVID-19; Italian customs data
    Umfang: 1 Online-Ressource (circa 37 Seiten), Illustrationen