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In this paper we investigate the causal effect of international migration on trade flows, using
panel data on bilateral trade flows and immigrants in Belgian regions between 2005 and 2016.
After controlling for a wide set of fixed effects, we find a positive effect of immigrant stocks
on Belgian region’s bilateral trade; this effect being stronger for imports than for exports.
However, this effect is mainly due to immigrants from non-EU countries. These results are in
line with the literature. Using an instrumental variable approach based on migration enclaves,
we were able to confirm our findings and also interpret the effect of immigration on Belgian
region’s bilateral trade as a causal effect.

international migration, --- bilateral trade --- gravity --- ethnic networks --- instrumental variable --- Belgium --- Sciences économiques & de gestion > Economie internationale

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Free trade agreements lead to a rise in bilateral trade regardless of whether the signatories are developed or developing countries. Furthermore, the percentage increase in bilateral trade is higher for South-South agreements than for North-South agreements. In this paper, the results are robust across a number of gravity model specifications in which the analysis controls for the endogeneity of free trade agreements (with bilateral fixed effects) and also takes account of multilateral resistance in both estimation (with country-time fixed effects) and comparative statics (analytically). The analytical model shows that multilateral resistance dampens the impact of free trade agreements on trade by less in South-South agreements than in North-South agreements, which accentuates the difference implied by the gravity model coefficients, and that this difference gets larger as the number of signatories rises. For example, allowing for lags and multilateral resistance, a four-country North-South agreement raises bilateral trade by 53 percent while the analogous South-South impact is 107 percent.

Bilateral Trade --- Economic Theory & Research --- Emerging Markets --- Free Trade --- Free Trade Agreements --- International Economics & Trade --- Multilateral Resistance --- North-South Trade Agreements --- South-South Trade Agreements --- Trade Law --- Trade Policy

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In 2007, the United States Department of Commerce altered a 23-year old policy of not applying the countervailing duty law to non-market economies, and initiated eight countervailing and antidumping duty investigations on Chinese imports. The change brings heated debate on trade remedy policies and issues of non-market economies. This study focuses on the first countervailing duty case on imported coated free sheet paper from China and analyzes the implications of this test case for United States-China bilateral trade, and industrial policies in transitioning market economies. The paper also provides a brief review of the economics of subsidies, World Trade Organization rules on subsides and countervailing measures, and United States countervailing duty laws applied to non-market economies. While recently acceded countries should review their domestic development policies from the perspective of economic efficiency and comply with the World Trade Organization rules, it is also important to further clarify the issues of non-market economies under the multilateral trading system, and pay keen attention to the rules negotiations in the current World Trade Organization Doha Development Round.

Bilateral trade --- Capacity building --- Debt Markets --- Development policies --- Dumping --- Economic efficiency --- Economic Implications --- Economic Theory and Research --- Emerging Markets --- Finance and Financial Sector Development --- International Economics & Trade --- ITC --- Law and Development --- Macroeconomics and Economic Growth --- Markets and Market Access --- Private Sector Development --- Trade Law --- Trade policy --- World Trade Organization --- WTO

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This paper studies the relationship between the growth of China and India in world merchandise trade and Latin American and Caribbean commercial flows from two perspectives. First, the authors focus on the opportunity that China and India's markets have offered Latin American and Caribbean exporters during 2000-2004. Second, empirical analyses examine the partial correlation between Chinese and Indian bilateral trade flows and Latin American and Caribbean trade with third markets. Both analyses rely on the gravity model of international trade. Econometric estimations that control for the systematic correlation between expected bilateral trade volumes and the size of their regression errors, as well as importer and exporter fixed effects and year effects, provide consistent estimates of the relevant parameters for different groups of countries in Latin America and the Caribbean. Results suggest that the growth of the two Asian markets has produced large opportunities for Latin American and Caribbean exporters, which nevertheless have not been fully exploited. The evidence concerning the effects of Chinese and Indian trade with third markets is not robust, but there is little evidence of negative effects on Latin American and Caribbean exports of non-fuel merchandise. In general, China's and to a large extent India's growing presence in world trade has been good news for Latin America and the Caribbean, but some of the potential benefits remain unexploited.

Bilateral trade --- Competitiveness --- Currencies and Exchange Rates --- Economic size --- Economic Theory and Research --- Export growth --- Exports --- Finance and Financial Sector Development --- Free Trade --- GDP --- Growth rate --- International Economics & Trade --- International trade --- Macroeconomics and Economic Growth --- Markets and Market Access --- Public Sector Development --- Substitution effect --- Telecommunications --- Trade Policy

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The current global crisis may change globalization itself, as both developed and developing countries adjust to global imbalances that contributed to the crisis. Will these changes help or hinder economic recovery and growth in South Asia? This is the focus of this paper. The three models of globalization - trade, capital, and economic management - may not be the same in the future. Changes in globalization could change the composition of trade flows, capital flows, and economic management, which in turn, could accelerate or restrain growth. South Asia is somewhat peculiar and different from other regions in how it has globalized, although there is a lot of diversity within the region. Its trade characteristics are different. India's growth has been spearheaded by exports of modern services and less by goods exports. Modern service trade tends to be more resilient compared with goods trade. Globalization of services is still at an early stage. So, as consumers pull back in the United States, service trade is likely to be less impacted compared to goods trade. Trade also contributes to growth through knowledge spillovers, externalities, and learning. The global crisis has not reduced the stock of global knowledge. Changes in capital flows are also not likely to have a big impact on growth in South Asia, as South Asia's investments are largely driven by domestic savings. Its dependence on foreign capital is low. South Asia has attracted capital flows that are less volatile. Remittances, which are more resilient, have been the dominant form of capital inflows, exceeding foreign direct investment and other inflows.This global downturn calls for counter-cyclical economic management. But South Asia has limited room for fiscal stimulus, given high debt-to-gross domestic product ratios. Nevertheless, reduced commodity prices have created some fiscal space that can be used for growth enabling infrastructure and safety nets. As South Asia undergoes structural transformation, the region is well positioned to bounce back with global economic recovery.

Access to Finance --- Agriculture --- Bank lending --- Banks and Banking Reform --- Bilateral Trade --- Competitive advantages --- Consumers --- Debt --- Debt Markets --- Economic growth --- Economic Outlook --- Economic Theory and Research --- Emerging Markets --- Export Growth --- Exports --- Externalities --- GDP --- Gross domestic product --- Growth rate --- Income --- International Economics & Trade --- Macroeconomics and Economic Growth --- Productivity --- Safety nets --- Savings --- Telecommunications --- Value added