Schriftenreihe der Österreichischen Gesellschaft für Europaforschung, ECSA Austria, 2009
ABSTRACT In this paper we assess the current relevance of Ricardian theory. Relative prices, labo... more ABSTRACT In this paper we assess the current relevance of Ricardian theory. Relative prices, labor costs, and productivity are evaluated as determinants of a country’s international competitiveness at the industry level. Working with detailed data on unit values and with industry data on productivity, we empirically implement a MacDougall-type model for Spanish and French trade to Brazil, China, Japan, and the U.S.. The period under study is 1980 to 2001 and we distinguish in our analysis between homogenous, reference-priced, and differentiated goods. Our results indicate that Ricardian theory is currently only valid for explaining trade with developing countries while other factors are of importance for developed economies. Overall price competitiveness is of importance, but for differentiated goods, factors distinct from prices seem to determine export success.
Purpose This paper aims to analyze the effectiveness of aid in stimulating investment using diffe... more Purpose This paper aims to analyze the effectiveness of aid in stimulating investment using different measures of aid and up-to-date panel time-series techniques. This study controls for endogeneity by using dynamic ordinary least squares (DOLS) and minimizes the risk of running a spurious long-run relationship by using series that are cointegrated. This paper finds evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the influence of country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as a colonial past, being landlocked and with large distances to markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East but not in regions that receive low amounts of aid. Investment-targeted aid is effective but non-investment-related aid can also enhance investment. Design/methodology/...
... of aid-financed public expenditure. Public investment in infrastructure generates productivit... more ... of aid-financed public expenditure. Public investment in infrastructure generates productivity spillovers and can also provide for a learning-by-doing externality (Adam and Bevan, 2006). ... effect that arises in the short run (Adam and Bevan, 2006). In a fixed exchange rate system ...
Page 1. DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES Working Papers on International Economi... more Page 1. DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES Working Papers on International Economics and Finance DEFI 10-09 Diciembre 2010 External imbalances in a monetary union. Does the Lawson doctrine apply to Europe? ...
Bilateral Free Trade Agreements (FTAs) and unilateral trade liberalization have been two strategi... more Bilateral Free Trade Agreements (FTAs) and unilateral trade liberalization have been two strategies used extensively by Chile to expand its exports and improve its competitive position in the world markets. It is the objective of this paper to analyze the role of trade agreements, price competitiveness, real income, per capita income differences and transport costs in Chilean export trade with the EU. To this end, Chile’s most important export sectors, namely fish, fruit, beverages, ores, copper, and wood and products thereof are investigated using panel data from Chile’s main trading partners in the EU over the period 1988-2002. The econometric model used is a refined augmented gravity model. It is found that the FTA between Chile and the EU, if fish, fruit and wine were included, would have a noticeable impact on Chilean export performance. Price competitiveness is important in most of the sectors under investigation. As expected, the relevance and impact of transport costs on exp...
Schriftenreihe der Österreichischen Gesellschaft für Europaforschung, ECSA Austria, 2009
ABSTRACT In this paper we assess the current relevance of Ricardian theory. Relative prices, labo... more ABSTRACT In this paper we assess the current relevance of Ricardian theory. Relative prices, labor costs, and productivity are evaluated as determinants of a country’s international competitiveness at the industry level. Working with detailed data on unit values and with industry data on productivity, we empirically implement a MacDougall-type model for Spanish and French trade to Brazil, China, Japan, and the U.S.. The period under study is 1980 to 2001 and we distinguish in our analysis between homogenous, reference-priced, and differentiated goods. Our results indicate that Ricardian theory is currently only valid for explaining trade with developing countries while other factors are of importance for developed economies. Overall price competitiveness is of importance, but for differentiated goods, factors distinct from prices seem to determine export success.
Purpose This paper aims to analyze the effectiveness of aid in stimulating investment using diffe... more Purpose This paper aims to analyze the effectiveness of aid in stimulating investment using different measures of aid and up-to-date panel time-series techniques. This study controls for endogeneity by using dynamic ordinary least squares (DOLS) and minimizes the risk of running a spurious long-run relationship by using series that are cointegrated. This paper finds evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the influence of country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as a colonial past, being landlocked and with large distances to markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East but not in regions that receive low amounts of aid. Investment-targeted aid is effective but non-investment-related aid can also enhance investment. Design/methodology/...
... of aid-financed public expenditure. Public investment in infrastructure generates productivit... more ... of aid-financed public expenditure. Public investment in infrastructure generates productivity spillovers and can also provide for a learning-by-doing externality (Adam and Bevan, 2006). ... effect that arises in the short run (Adam and Bevan, 2006). In a fixed exchange rate system ...
Page 1. DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES Working Papers on International Economi... more Page 1. DOCUMENTOS DE ECONOMÍA Y FINANZAS INTERNACIONALES Working Papers on International Economics and Finance DEFI 10-09 Diciembre 2010 External imbalances in a monetary union. Does the Lawson doctrine apply to Europe? ...
Bilateral Free Trade Agreements (FTAs) and unilateral trade liberalization have been two strategi... more Bilateral Free Trade Agreements (FTAs) and unilateral trade liberalization have been two strategies used extensively by Chile to expand its exports and improve its competitive position in the world markets. It is the objective of this paper to analyze the role of trade agreements, price competitiveness, real income, per capita income differences and transport costs in Chilean export trade with the EU. To this end, Chile’s most important export sectors, namely fish, fruit, beverages, ores, copper, and wood and products thereof are investigated using panel data from Chile’s main trading partners in the EU over the period 1988-2002. The econometric model used is a refined augmented gravity model. It is found that the FTA between Chile and the EU, if fish, fruit and wine were included, would have a noticeable impact on Chilean export performance. Price competitiveness is important in most of the sectors under investigation. As expected, the relevance and impact of transport costs on exp...
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Papers by Felicitas Danzinger