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This paper reviews controversies regarding linkage of international trade and labor standards. Pressures for international harmonization of labor standards arise in the context of increased trade between countries with large disparities in wages, and also reflect the history of labor standards. A critical distinction is made between standards related to fundamental human rights and those related to employment conditions. The main conclusion is that trade sanctions to enforce labor standards should not be an option, but that international agreements on core labor standards, with voluntary compliance, may, apart from being worthwhile on ethical grounds, defuse calls for protection.
Labor --- Macroeconomics --- Trade Policy --- International Trade Organizations --- Wages, Compensation, and Labor Costs: General --- Labor Economics: General --- Demand and Supply of Labor: General --- Wages, Compensation, and Labor Costs: Public Policy --- Labour --- income economics --- Wages --- Labor costs --- Labor markets --- Minimum wages --- Labor economics --- Labor market --- Minimum wage --- United States --- Income economics
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This paper uses a Ricardian framework to clarify the role of microeconomic and macroeconomic factors governing the time series and cross-section behavior of sectoral trade balances. Unit labor costs and trade balances are calculated for several sectors for the seven major industrial countries. The time series and cross-section variation in sectoral unit labor costs is decomposed into relative productivity, wage differentials, and exchange rate variations. The main findings are that changes over time in sectoral trade balances, especially for the United States and Japan, are quite well explained by the evolution of unit labor cost, suggesting that trade patterns conform to comparative advantage. The cross-section results are, however, less conclusive.
Exports and Imports --- Labor --- Industries: Manufacturing --- Production and Operations Management --- Wages, Compensation, and Labor Costs: General --- Empirical Studies of Trade --- Industry Studies: Manufacturing: General --- Neoclassical Models of Trade --- Production --- Cost --- Capital and Total Factor Productivity --- Capacity --- Current Account Adjustment --- Short-term Capital Movements --- Labour --- income economics --- International economics --- Manufacturing industries --- Macroeconomics --- Labor costs --- Trade balance --- Manufacturing --- Comparative advantage --- Total factor productivity --- International trade --- Economic sectors --- Wages --- Balance of trade --- Industrial productivity --- United States --- Income economics
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This paper reviews the macroeconomic and microeconomic dimensions of the United States-Japan conflict over trade. From a macroeconomic perspective, there is nothing surprising about Japan’s surpluses, given global trends in saving and investment. The current accounts of the United States and Japan have both responded to exchange rate changes in a normal fashion with about a two-year lag. Although not the source of the Japanese current-account surplus, a key issue in the debate is the nature of Japanese trade policy and its possible effects on trade patterns. Empirical studies attempting to determine whether Japan’s trade prices and quantities are abnormal have arrived at conflicting conclusions. This is a Paper on Policy Analysis and Assessment and the author(s) would welcome any comments on the present text. Citations should refer to a Paper on Policy Analysis and Assessment of the International Monetary Fund, mentioning the authors) and the date of issuance. The views expressed are those of the author(s) and do not necessarily represent those of the Fund.
Exports and Imports --- Foreign Exchange --- Empirical Studies of Trade --- Trade: General --- Current Account Adjustment --- Short-term Capital Movements --- International economics --- Currency --- Foreign exchange --- Trade balance --- Imports --- Current account --- Real exchange rates --- Current account deficits --- International trade --- Balance of payments --- Balance of trade --- Japan
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International finance --- United States --- Foreign exchange --- Balance of payments --- Equilibrium (Economics) --- Change --- Balance des paiements --- Equilibre (Economie politique) --- Mathematical models --- Modèles mathématiques --- 339.72.053 --- 339.74 --- -Equilibrium (Economics) --- -Foreign exchange --- -US / United States of America - USA - Verenigde Staten - Etats Unis --- 382.51 --- 382.241 --- 333.844 --- 333.46 --- Cambistry --- Currency exchange --- Exchange, Foreign --- Foreign currency --- Foreign exchange problem --- Foreign money --- Forex --- FX (Finance) --- International exchange --- Currency crises --- Current account balance (International trade) --- International payments, Balance of --- Terms of trade --- Balance of trade --- International liquidity --- Internationaal betalingsverkeer. Valutahandel. Wisselmarkten. Deviezenhandel. Internationale kapitaalmarkt. Flow and funds analysis. Betalingsbalans. Internationale geldmarkt.--?.053 --- Monetaire buitenlandse politiek. Deviezenpolitiek --- Aard, belang en evolutie. Handelsbalans. J curve. --- Balans van het lopend verkeer. --- Devaluatie en opwaardering. Stabilisering. J curve. --- Monetaire toestand en evolutie. --- Mathematical models. --- 339.74 Monetaire buitenlandse politiek. Deviezenpolitiek --- 339.72.053 Internationaal betalingsverkeer. Valutahandel. Wisselmarkten. Deviezenhandel. Internationale kapitaalmarkt. Flow and funds analysis. Betalingsbalans. Internationale geldmarkt.--?.053 --- Modèles mathématiques --- US / United States of America - USA - Verenigde Staten - Etats Unis --- Monetaire toestand en evolutie --- Devaluatie en opwaardering. Stabilisering. J curve --- Balans van het lopend verkeer --- Aard, belang en evolutie. Handelsbalans. J curve --- Foreign exchange - Mathematical models --- Balance of payments - United States - Mathematical models --- Equilibrium (Economics) - Mathematical models --- United States of America
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This paper attempts to extend the range of countries covered by the IMF’s multilateral real exchange rate indexes based on relative unit labor costs (REER-ULCs) in manufacturing. A data set was assembled that permits calculation of REER-ULCs for 23 newly industrialized, developing, and transition countries in addition to the 21 industrial countries covered by the current system. Although the results are mostly quite encouraging, they should be considered preliminary because of uncertainty about the reliability and comparability of the underlying data. Also, unit labor costs are not available on as timely a basis as consumer price indexes (CPIs), especially for nonindustrial countries. Thus, the ULC-based indicators should supplement rather than replace the current CPI-based system.
Finance: General --- Foreign Exchange --- Labor --- International Financial Markets --- Economic History: Financial Markets and Institutions: General, International, or Comparative --- Comparative Studies of Countries --- Wages, Compensation, and Labor Costs: General --- General Financial Markets: General (includes Measurement and Data) --- Labour --- income economics --- Currency --- Foreign exchange --- Finance --- Labor costs --- Exchange rates --- Competition --- Real exchange rates --- Real effective exchange rates --- Financial markets --- United States --- Income economics
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This paper provides new measures of restrictions on inward foreign direct investment (FDI) for OECD countries. Several different types of restrictions are considered: limitations on foreign ownership, screening or notification procedures, and management and operational restrictions. These restrictions are computed for nine sectors and eleven sub-sectors, most of which are in services, and then aggregated into a single measure for the economy as a whole. According to the aggregate indicators, the last two decades, and especially the 1990s, have witnessed dramatic liberalisation in FDI restrictions. OECD countries are now generally open to inward FDI, although there remain substantial differences between countries and across industries. The most open countries are now in Europe, at least as far as statutory restrictions are concerned. The preponderance of remaining restrictions is in services, with almost no overt restrictions in manufacturing ...
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This paper provides a revised measure of regulatory restrictions on inward foreign direct investment (FDI)for OECD countries and extends the approach to 13 non-member countries. The methodology is largely similar to that adopted in the previous version of the OECD indicator and covers three broad categories of restrictions: limitations on foreign ownership, screening or notification procedures, and management and operational restrictions. The FDI restrictiveness indicator captures statutory deviations from "national treatment", i.e. discrimination against foreign investment. When combined with other factors having an influence on foreign investment decisions, it has proven to be a good predictor of countries' inward FDI performance.
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This paper provides a revised measure of regulatory restrictions on inward foreign direct investment (FDI)for OECD countries and extends the approach to 13 non-member countries. The methodology is largely similar to that adopted in the previous version of the OECD indicator and covers three broad categories of restrictions: limitations on foreign ownership, screening or notification procedures, and management and operational restrictions. The FDI restrictiveness indicator captures statutory deviations from "national treatment", i.e. discrimination against foreign investment. When combined with other factors having an influence on foreign investment decisions, it has proven to be a good predictor of countries' inward FDI performance.
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