TABLE 1 - uploaded by Kishore Gawande
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Simple and Weighted Average, 6-Digit HS Bilateral Tariffs
Source publication
The collapse in trade and the contraction of output that occurred during 2008–9 was comparable to, and in many countries more
severe than, the Great Depression of the 1930s. However, it did not give rise to the rampant protectionism that followed the
Great Crash. The idea that the rise in the fragmentation of production across global value chains –...
Contexts in source publication
Context 1
... commitment made by countries to these bound rates means that the bound rates are ceilings for actual applied rates. As shown in Table 1, the average bound tariffs in most emerging countries are three times the average applied rates, implying the existence of significant water in the tariff. The last column in Table S.1 (online appendix) shows the average of the difference in difference D(t 2 t BND ) ¼ Dt 2 Dt BND between the actual and bound rates for important partners. ...
Context 2
... shown in Table 1, the average bound tariffs in most emerging countries are three times the average applied rates, implying the existence of significant water in the tariff. The last column in Table S.1 (online appendix) shows the average of the difference in difference D(t 2 t BND ) ¼ Dt 2 Dt BND between the actual and bound rates for important partners. 6 The D(t 2 t BND ) column indicates that, except for the few cases noted, the available policy latitude remained unused. ...
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Citations
... Paradoxically, through preferential trade agreements (PTAs) and global value chains (GVCs), countries around the globe are becoming more interconnected even as they erect new trade barriers. This trend starkly contrasts with past patterns of protectionist escalation, which receive near sole attention in the current literature on trade interdependence; the literature argues that the more interconnected countries are, the less protectionist they are likely to become (Baldwin, 2012;Gawande et al., 2015;Jensen et al., 2015;Lamy, 2013). However, it has barely spoken to this newer contradictory phenomenon where trade protectionism occurs under conditions of high interdependence (Farrell & Newman, 2019) and economic uncertainty (Ahir et al., 2018). ...
... Additionally, I will show that, although the proliferation of PTAs may have changed the way that countries trade among themselves (Baldwin, 2012;Gawande, Hoekman, & Cui, 2015), these institutions have not been deterred from an increased reliance on NTMs. I also study whether the same mechanisms happen where there exist potential GVC linkages. ...
... I also study whether the same mechanisms happen where there exist potential GVC linkages. In other words, greater trade interconnectivity between countries through PTAs has not limited the escalation of protectionism (Baldwin, 2012;Boffa & Olarreaga, 2012;Gawande et al., 2015;Rodrik, 2009;Jensen et al., 2015;Lamy, 2013). In short, the current context of international trade requires a broader conception of what constitutes trade restrictions. ...
... This trend starkly contrasts with past patterns of protectionist escalation. The contemporary literature argues that the more interconnected countries are, the less protectionist they are likely to become (Baldwin, 2012;Lamy, 2013;Gawande et al., 2015;Jensen et al., 2015). However, these same studies have barely spoken to this newer contradictory phenomenon where protectionism and trade liberalization are occurring simultaneously (Ahir et al., 2018). ...
... I show that although the proliferation of PTAs may have changed the way that countries trade among themselves (Baldwin, 2012;Gawande et al., 2015), these institutions have not prevented the increased reliance on non-tariff measures (NTMs). I also explore whether the same mechanisms may occur where potential GVC linkages exist. ...
... 2) assert that "while all these channels seem plausible and many analysts have asserted that they have played an important role in the trade collapse, there has been, to date, little evidence supporting the notion". Gawande et al. (2015), using trade policy data for seven large emerging market countries (Argentina, Brazil, China, India, Mexico, South Africa, and Turkey), find that participation in global value chains is "a powerful economic factor determining trade policy responses" (p. 102). ...
Este artículo no trata sobre el libre comercio ni sobre el proteccionismo. Se trata del punto donde los dos pueden converger. Un aspecto distintivo del aumento del proteccionismo durante la última década es que se produce en un contexto de mayor interconectividad global. Durante las últimas tres décadas, los países de todo el mundo se han integrado más a través de acuerdos comerciales preferenciales (ACP) y cadenas de valor globales (CVG), al mismo tiempo que han erigido nuevas barreras comerciales. ¿Qué explica estas trayectorias contradictorias? La literatura sobre la economía política del proteccionismo comercial muestra fácilmente que los ACP promueven las interdependencias comerciales; también ofrece argumentos convincentes sobre las circunstancias en las que los gobiernos se ven obligados a proteger sus economías. Sin embargo, tenemos poca evidencia de cómo estas dos trayectorias ocurren a la vez. Este artículo ofrece nueva evidencia de que los mecanismos institucionales como los ACP, que durante décadas han impulsado la difusión de la liberalización comercial, también pueden convertirse en canales para la propagación de proteccionismo menos transparente (por ejemplo, medidas no arancelarias).
... There was a significant reduction in total employment embodied in bilateral trade between China, Japan, and Korea in 2009 due to the financial crisis. The slowdown in global economic and trade growth after the crisis has also had an important impact on trade-led labor employment [47]. At the same time that China's economic development has entered the "new normal", the economic growth rate has slowed down due to the downward pressure of the economy and the transformation and upgrading of the economic structure, and the labor force employment situation has become more severe. ...
While international trade drives countries’ economic growth and promotes employment, it also has some environmental impact. To investigate the impact of trade on carbon emissions and employment, this study performs a detailed decomposition and measurement of embodied carbon emissions and employment in value-added trade between China, Japan, and Korea from 2007–2019. The current study established that, while China’s trade with Japan and Korea created many domestic jobs, it also resulted in significant domestic carbon emissions. While Japan and Korea’s trade with China reduced carbon emissions, employment in their own countries was reduced and replaced by employment in China. At the value chain route level, trade among the three countries through each value chain route either achieves employment promotion at the cost of increased carbon emissions or promotes domestic emissions reduction at the cost of employment loss. However, it is worth noting that, when trade between Japan and Korea was conducted through simple GVCs (route 2), it not only helped reduce Japan’s carbon emissions, but also effectively promoted employment. This is the ideal trade route. The results of this study can provide useful reference information for developing countries such as China, to achieve sustainable economic growth, carbon emission reduction, and employment promotion in the context of trade globalization.
... In this section, we exemplify the performance of the SPIN method by producing different sets of MRIO tables for the years 2010-2015 in accordance with different, partly hypothetical scenarios of how trade and GDP evolved during that time. The 2010-2015 period corresponds to the aftermath of the 2008 financial crisis and has been marked by the reinforcement of the importance of emerging countries on the international trade network (Gawande et al., 2015). In the first subsection, we use the SPIN method to produce reference tables for 2015 based on the observed evolution of the world economy, with GDP and trade constraints being defined either at national or regionally aggregated scale. ...
Multi-regional input–output (MRIO) data are a powerful tool to analyze complex interdependencies in the international trade and supply network. Their field of application is however limited by the fact that MRIO datasets are only available for past years whereas the structure of the international trade network has been found to change profoundly over time. We here propose the SPIN method, a simple and flexible algorithm that can project MRIO tables into the future based on transparent scenarios of how gross domestic product and trade relations may evolve in that time. By combining well-established input–output techniques, namely the Leontief quantity model and an RAS-type algorithm, our method provides a straightforward mean to convert quantitative scenarios of the world economy into consistent MRIO tables. We illustrate the functioning of the SPIN method by projecting the evolution of the trade network after the 2008 financial crisis under different alternative scenarios of recovery.
... In other words, the integration of economies and companies in global value chains tends to dampen the incentives for policies that hurt trade. Empirical results by Gawande et al. (2015) support these arguments. They use trade and protection data of the pre-and post-crisis (2008-2009) period from 7 large emerging countries and find that participation in GVCs reduces government incentives to raise tariffs. ...
This article analyzes how value chains play a role in the political economy of agricultural and food policy by (1) discussing historical insights; (2) reviewing an emerging literature on political economy of trade policy and value chains and drawing implications for agricultural and food policy; (3) discussing market power issues with increasing concentration in agri‐food value chains and its implications for government regulations; and (4) presenting a political economy case study of recent regulations that have explicitly targeted value chain structures in the agri‐food sector: the EU regulations on “unfair trading practices (UTPs)”. The case study is of wider relevance since it addresses a key concern in global value chains.
... In other words, the integration of economies and companies in global value chains tends to dampen the incentives for policies that hurt trade. Empirical results byGawande et al. (2015) andRaimondi et al. (2021) support these arguments. ...
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... All these sectors are generally characterized by the international production fragmentation that has been a notable feature of global economy in recent years. The economic policy reforms in India, coupled by tariff and other procedural liberalizations, have led to increased integration of these sectors with global value chains (Chase, 2005;Manger, 2009;Blanchard and Matschke, 2015;Gawande et al., 2015;Baccini et al., 2017) and consequently rise in overlapping trade across different manufacturing segments of Indian economy. ...
... GVCs make companies increasingly reliant on imports of intermediate goods, i.e., goods that are sourced for the purpose of serving as inputs for the production of other goods. GVCs have been depicted as facilitating trade liberalization via this mechanism (Chase, 2005;Manger, 2009;Blanchard and Matschke, 2015;Gawande et al., 2015;Baccin et al., 2017); also supported countries in achieving deep economic integration (Antràs and Staiger, 2012;Johns and Wellhausen, 2016;Kim et al., 2019). ...
The thesis has three main sections that conduct empirical analysis for the period 2001-2015. The first section focuses on an empirical analysis for the factors influencing India’s bilateral IIT. This section consists of two sub-sections that detail: (1) empirical analysis on determinants of India’s bilateral composite IIT and (2) empirical analysis on determinants of India’s bilateral sectoral IIT. The analysis of first section is further extended in the second section by investigating the relationship between IIT and deepening participation in GVCs
and decomposition of total IIT into HIIT and VIIT. The study observes that in the
composition of IIT values, VIIT values are consistently higher than the corresponding HIIT values. Therefore, the empirical analysis in second section comprises of two sub-sections that explores: (1) determinants of DVA content in India’s exports and (2) determinants of India’s VIIT. Finally, the impact of dynamic IIT on labour market adjustment in India’s key manufacturing sectors is examined in the third section of the thesis. This section explores the relationship between MIIT and absolute value of total employment changes in the Indian context. Several interaction variables have also been incorporated in the study to examine the impact of industry-trade-labour related control variables on the labour market sectoral dynamics.
... 16 Coen et al. (2019) is an exception, in which authors examine firms' rationale in interacting with multiple regulators-although without an exclusive focus on MNCs. 17 E.g., Gereffi et al. (2005); Gawande et al. (2015); Chase (2003). time, we shed light on the convergence and divergence of MNC preferences with those of regulators at the national and global levels. ...
From the technical analyses of wide ranges of scholars to the public discourse backlashes against globalization, there is a huge volume of work historicizing, quantifying, and problematizing the complex role of multinational corporations (MNCs) in international trade. The body of literature is so large that most readers rely on disciplinary boundaries to narrow the catalog, causing them to miss out on important synergies across fields. By bringing the work of historians, lawyers, and political scientists working on MNCs and international trade into conversation, we offer an expanded perspective. Our collective contribution highlights the political dimensions of MNCs within the frameworks of global economic governance, in which corporations seek to influence trade policies amid rising protectionism and coordinate their activities within industry associations while regulators struggle to hold MNC parent companies accountable to international human rights violations across their value chains. Especially in this moment of re-evaluation — and possible de-globalization following the shock of COVID-19 — our multidisciplinary analysis explains how MNCs exerted political power over trade regimes in the past, by what means they seek to shape regulatory frameworks in the present, and what the possible futures might be for big business operations in a more or less global economy.
... 16 Coen et al. (2019) is an exception, in which authors examine firms' rationale in interacting with multiple regulators-although without an exclusive focus on MNCs. 17 E.g., Gereffi et al. (2005); Gawande et al. (2015); Chase (2003). time, we shed light on the convergence and divergence of MNC preferences with those of regulators at the national and global levels. ...
Sustainable development provisions have become an integral part of the European Union's (EU's) ‘new generation’ trade agreements. Yet, a growing number of empirical works show that their design varies significantly, even in the trade agreements signed with countries at similar (low) levels of development. We contend that this variation can be accounted for by discussing how the growing integration of the EU economy with specific developing countries across global value chains (GVCs) affects the domestic politics of regulatory export in the EU. European firms that operate within GVCs rely on imports of inputs produced in low-labor cost countries. These firms tend to oppose the export of those regulatory burdens that generate an increase in their imports' variable costs. The political mobilization of these actors weakens domestic coalitions supporting regulatory export strategies, which explains why the EU adopts a more lenient approach over the inclusion of sustainable development provisions in Preferential Trade Agreement negotiations with some developing countries.
... It draws a straight line between hard economic times, domestic interest groups, and inward-looking economic policies. Thus, periods of poor economic performance tend to shift the political balance in favor of protectionist sectors, thereby 7 On the restraining impact of such vertical specialization on protectionism, see Gawande, Hoekman, and Cui (2014). 8 This is in line with previous neofunctionalist arguments, which view crises as inherent to the integration process rather than a result of an external shock (Schmitter 1970). ...
What are the implications of hard economic times for regional economic cooperation? Existing research is sharply divided on the answer to this question. Some studies suggest that economic crises encourage governments to strengthen their regional institutions, but others indicate that they lead to decreasing investment in such initiatives. Both sides overlook the possibility that the passage of time conditions these relationships, however. We aim to bridge these opposing perspectives by distinguishing between short-term and long-term effects of economic hard times on institutionalized regional cooperation. We argue that in the short term economic crises impede regional institutionalization due to protectionist pressures, nationalistic public sentiments, and political instability. This effect is reversed in the longer term, as interest groups and the public adopt more favorable attitudes toward regional economic organizations (REOs) and governments employ these institutions to demonstrate their competence and to improve economic conditions. We evaluate this argument in relations to regional institutionalization, which refers to the functional scope and structure of REOs. Using a data set that contains information on this dimension for thirty REOs over four decades, we find strong support for the theoretical framework: regional institutionalization remains stagnant in the immediate aftermath of economic crises, but increases in subsequent years.
