Determinants of bilateral trade flows
Article Abstract:
Size and distance between countries are not the only factors that influence the level of trade between countries. Additional variables such as political instability, type of product, language, populations, cultural similarities and membership in treaty organizations also determine trade flows between two countries. It is shown that models of bilateral trade flows are more accurate for manufactured goods than for raw materials. The research relies on information obtained from the United Nations External Trade Extract Data for 1977, and measurements of bilateral trade in terms of strength and longevity, rather than mere volumes of trade.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1986
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Currency, trade, and capital flows in general equilibrium
Article Abstract:
Currency, trade and capital flows within a hypothetical one-good equilibrium are studied for their effects on exchange models exhibiting utility-maximizing participants. Within this context, monetary shocks and endowment shocks are examined and the offsetting effect of flexible exchange rates are shown to be inadequate against such shocks. Situations in which trade flows are generated without capital flows and in which capital flows are unaccompanied by trade flows are identified and discussed. Deterministic monetary policies are also shown to result in surplus accumulations for countries with low monetary growth rates.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1987
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Regulation of international trade in the United States: the Tokyo Round
Article Abstract:
The economic theory of regulation was used by Marvel and Ray to develop a model for explaining trade and protectionist tendencies when industrial nations negotiate trade agreements and set tariffs. This model, when applied to the Tokyo Round of tariff negotiations, helps explain inter-industry patterns to tariff protection. The model identifies post-negotiation pressure from domestic political-economic groups as responsible for tariff levels established for many industries. The research supports the accuracy and reliability of the Marvel-Ray tariff-formation model.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1987
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