Market size and antidumping in duopolistic competition

Policy competition for foreign direct investment between asymmetric countries

Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export shipments. In our inventory model, transportation costs and optimal shipment frequency are determined on the basis of demand as well as inventory and per shipments costs. Using a cross section of monthly firm-product-destination level French export data we confirm that firms adjust on both margins for market size. In a stochastic setting, firms adjust to increased uncertainty by reducing their sales and, for a given export volume, by reducing their number of shipments and increasing their shipment size

Because of the importance of its products and huge value, the oil and gas industry itself occupies an important position in the national economic system. However, the development of this industry is unbalanced and insufficient, with large differences in market size, liquidity, solvency, profitability, valuation, and growth potential, and few companies have achieved good performance in all of these dimensions. This study delves into the unbalanced development and varied performance metrics among key petrochemical companies listed in the U.S. stock market, utilizing both fundamental analysis and non-financial analysis method, as well as to conduct a specific study on the competitive situation of Diamondback Energy. This study has elucidated that Diamondback Energy lags behind its peers in terms of liquidity and solvency. However, it is worth noting that despite macroeconomic challenges such as economic downturns and industry-wide downturns, its profitability remains relatively strong within the industry. Additionally, it holds a certain advantage over its peers in terms of financial valuation and growth potential, making it a growth-oriented enterprise. The study suggests that investors should consider market volatility and the company's management risk when entering the oil and gas industry in order to maximize returns.

Shipment Frequency of Exporters and Demand Uncertainty

Building on recent contributions to the New Economic Geography literature, this paper analyses the relation between asymmetric market size, trade integration, and corporate income tax differentials across countries. First, relying on Ottaviano and Van Ypersele’s (J. Int. Econ. 67:25–46, 2005) foot-loose capital model of tax competition, we illustrate that trade integration reduces the importance of relative market size for differences in the extent of corporate taxation between countries. Then, using a dataset of 26 OECD countries over the period 1982–2004, we provide supportive evidence of these theoretical predictions, i.e., market size differences are strongly positively correlated with corporate income tax differences across countries, but crucially, trade integration weakens this link. These findings are obtained controlling for the potential endogeneity of trade integration and are robust to alternative specifications.

Trade Integration and Business Tax Differentials: Theory and Evidence from OECD Countries

The study attempts to empirically identify factors that determine South Africa–US intra‐industry trade (IIT) in selected services during the period 1994‐2002. The study utilises Liu‐Davidson‐Flachaire wild bootstrap, which is robust to heteroscedasticity and provides estimates of the degree of parameter bias. The empirical results, in principle, show that South Africa–US IIT in the selected services is determined by factors similar to goods‐based “North‐South” IIT studies. Specifically, differences in per capita income and differences in market size negatively affect IIT. The study also indicates that US foreign direct investment in South Africa positively contributes to the unaffiliated IIT in services.

PpTHE terms balanced and unbalanced appear in many and varied contexts within economic theory. One writer has even suggested that it is a cause of much confusion that 'balance' in economic could mean almost anything (Ohlin, 1959, p. 338). This lack of definition has also characterized attempts at statistical verification of the theories. Balanced in the Nurkse (1953) sense arose in the context of development economics and sought to provide some policy conclusions for less developed countries. Solow-Samuelson-Von Neuman balanced is of more theoretical interest and of broader application. Two recent papers (Swamy, 1967 and Yotopoulos, 1970) laboured under the disadvantage of mixing these two quite separate notions of balanced growth. We shall argue that consequently, the evidence already presented sheds little light on the development controversy. This paper examines evidence for balanced and unbalanced theories in the Nurkse-Hirschman sense (Haberler, 1961; Hirschman, 1958; Nurkse, 1953). Nurkse's balanced argument involves two propositions: firstly, the size of the domestic market is maximized only with a balanced of sectors because, by assumption, excess supply is wasted and excess demands are frustrated; secondly, the size of the market is the main determinant of investment in less developed countries. Therefore, Nurkse viewed balance as a means of stimulating growth. Hirschman's version of unbalanced growth, like Nurkse's theory, was concerned primarily with the inducement to invest. Only Hirschman argued that excess demand and supply are necessary in order to make investment decisions obvious. Excess demand induces investment in supplying industries (backward linkage) and excess supply leads to the establishment of using industries (forward linkage). It is clear that Hirschman's theory of unbalanced applies mainly to the intermediate goods sector. A number of studies (including Bhatt, 1965 and Mathur, 1966)) have made considerable ground in providing a synthesis of the theories, usually developing the fact that Nurkse and Hirschman exempt vertical and horizontal sectors, respectively. Consequently there may not arise a problem of policy choice between balanced and unbalanced growth. In the context of this paper, the most important feature of both theories is the implicit exclusion of the effects of international trade. If trade becomes the engine of growth in any less developed country, the theoretical controversy becomes less relevant for development policy. Furthermore, distortions in sectoral rates due to international trade, do not constitute unbalanced in the Hirschman sense. These considerations render difficult any empirical enquiry.

Union wage demands with footloose firms and agglomeration forces

Purpose– Will a free trade agreement (FTA) between nations be politically viable? Under political lobbying, which incentives determine whether FTAs will be signed or not? Will FTAs steadily include more countries until we reach a worldwide free trade? The paper addresses these questions using a theoretical analysis model, with “protection for sale” model as the foundation.Design/methodology/approach– Firstly, the economic and political factors are investigated in the theoretical model. Then, the validity of results is tested by econometric analysis with a panel probit model. The data spans 25 key trade nations and covers the period of 2007, 2010 and 2013.Findings– First, the FTA will be endorsed only if the aggregate welfare under FTA, combing lobby contributions with social welfare of both pair nations, is higher than the counterpart without FTA. Otherwise, FTA is rejected. Second, the possibility of concluding a FTA has positive correlation with pair nations’ market sizes and the number of countries with which they have both previously concluded FTAs; the possibility has negative correlation with the distance between pair nations; if pair nations’ aggregate market sizes are large enough, the possibility has positive correlation with government’s sensitivity to social welfare, otherwise the correlation is negative. Third, although FTAs are characterized by the regionalism, they will contribute to multilateral free trade in the long run.Originality/value– Most researchers do not take the foreign lobbying into account in the manner or the detail that we do here when they study the determinants of FTAs. This paper shows the condition under which FTA is politically viable and incentives behind FTA.

International R&D competition and trade policy

Regulation for novel food by the food safety authority correlates with the perception of the actors in the supply chain, particularly consumers. Increasing adoption of nanoscale ingredients is estimated to have captured more than 24% of the overall market size and consumption trends. There is high dependency on imported foods among the ASEAN countries, which raises concerns about whether there are sufficient and efficient regulatory norms on the marketing authorization for novel foods. While foods produced at nanoscale level can improve nutrition and be cost effective, an unclear regulatory path of safety and risk assessment may be counter-productive to consumption trends. Novel food poses challenges and raises important questions, including (1) How will regulators assess the safety of nanofoods for public consumption? and (2) What additional considerations should be taken into account in terms of trade law? This chapter examines the role of law in controlling and creating spaces for the use of nanomaterials in food as a regulatory object. It begins in Section II by providing context around the growth of nanotechnologies in the food sector by considering the use of nanoscale substances as ingredients in food and potential risks it may pose to human health. Section III elaborates on the safety concept of food and food ingredients and specific concerns relevant to the conditions of the use of nanoscale substance in food. Section IV analyzes regulatory responses to nanofood being part of novel food regulations in ASEAN countries by deliberating on the regulatory definitions of novel foods; the market authorization procedures, including the conditions of use; labeling requirements; and pre-market authorization requirements. It concludes that the legal normative yardstick set out by food regulations in ASEAN is enough to include nanofood and nanoscale substances in food based on wide product categories under food laws and for any newly developed food materials on the basis of their intended use. Hence, any nano safety-related measure the countries undertake must be based on the outcome of appropriate risk assessment and must not be discriminatory against free trade with other countries.

The background of economic growth in Norway is reviewed. Models that derive the direct and indirect measures used in empirical estimation and aggregate estimates for Norway's economy are analyzed, and the results are compared to those of Japan. The adoption of an outward-looking policy has led to increases in both exports and imports in Norway entailing the reallocation of resources according to comparative advantage among industries as well as specialization within industries. It is noteworthy that per capita income grew more rapidly in the 1961 to 1969 subperiod, when the establishment of the European Free Trade Association gave a boost to exports, than between 1953 and 1961. The experiences of Norway and Japan during the period of import liberalization were similar. However, available data indicate that exports made a larger contribution to economic growth in Norway than in Japan. These differences may be due to factors such as the size of the domestic market, rates of imports protection, and Norway's free trade arrangement in manufactured goods within the free trade zone.

한·중미 5개국 FTA 발효에 따른 중미시장 활용방안(Trade and Investment Implications of Korea-Central America Free Trade Agreement)

This paper analyses determinants of agricultural exports and imports from Indonesia, including a set of demand and supply factors capturing effects of income, market size, prices, tariffs, exchange rates and variables related to logistics, competitiveness, trade policy, and innovation. A specific focus is on trade creation and diversion effects possibly arising as Indonesia experienced a deep liberalization of markets through the implementation of multiple Free Trade Agreements (FTAs). A gravity model helps to analyze the determinants of trade and the impacts of the various trade agreements, applied to two categories of agricultural exports: raw goods and food. The dataset comprises 50 countries with data on exports and imports from 2007 until 2017. The results find trade creation effects for both categories, with larger effects in exports within agricultural raw goods, and higher trade creation effects through imports in food. Indonesia also experienced trade expansion with non-free trade partners, suggesting that demand variables (e.g., income, market size, sophistication) are a more critical driver of growth rather than agreements. Price factors affect agricultural goods, with food products experiencing elastic price demand, while raw goods are affected by prices and exchange rate. Gains in competitiveness, logistics performance, and innovation is supporting agricultural exports (imports as well), although Indonesia is behind most of its trade partners. The current implementation of the FTA should be critically evaluated concerning food products as imports have expanded more rapidly than exports, and domestic goods may have experienced pressure from liberalization.