Joseph Francois

Liberalization and Capital Accumulation in the GTAP Model (1996)

The universe of existing CGE models can be divided into 3 broad categories. The first class of models (of which the standard GTAP model is a classic example) emphasizes the static effects of policy...

Francois, Joseph, McDonald, Brad

This paper explores trade policy and investment linkages in the GTAP model. This is done under alternative steady-state closure rules linking trade to consumption, production, and investment, and...

Labour Force Growth, Trade, and Employment

Economic Implications of Trade Liberalization Under the Doha Round

This paper examines the implications of labour force growth in one region for wages, employment, and production patterns in other regions. These issues are first explored in a stylized dual model...

Joseph Francois, Hans Van Meijl, Frank Van Tongeren

We explore the impact of multilateral liberalization, with emphasis on the EU and developing countries. We first develop a realistic "baseline" that takes into account events such as the entry of...

Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated

Equity, welfare, and the setting of trade policy in general equilibrium

This paper is concerned with rules of origin when intermediate goods are differentiated. An analytical model emphasizes trade patterns and the relative importance of trade in intermediates given...

Transition Dynamics and Trade Policy Reform in Developing Countries

The authors analyzegeneral equilibrium relationships between trade policy and the household distribution of income, decomposing social welfare into real income level and variance components and...

Francois, Joseph, Nordström, Håkan, Shiells, Clint R.

This paper emphasizes the relevance of classical transition dynamics for trade policy, particularly for developing countries. The empirical evidence from cross-country growth regressions points to...

Choosing formulas for market access negotiation : efficiency and market access considerations

Manole, Vlad, Martin, Will, Francois, Joseph

An important issue in multilateral trade negotiations is the approach taken to reduce tariffs. The authors believe that there are important advantages in formula approaches and survey a range of...

Rags in the High Rent District: The Evolution of Quota Rents in Textiles and Clothing

Francois, Joseph, Wörz, Julia

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing...

Antitrust in Open Economies

Francois, Joseph, Horn, Henrik

We examine antitrust rules in a two-county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of the...

Trade liberalization in the Doha Development Round

Joseph Francois, Hans Van Meijl, Frank Van Tongeren

"The Doha Round faced a long series of launch-delays and a spectacular launch-failure in Seattle in 1999. While the talks did take off in 2001, the negotiating agenda is still ambiguous in a number...

Preference Erosion and Multilateral Trade Liberalization

Joseph Francois, Bernard Hoekman, Miriam Manchin

Because of concern that tariff reductions in Organisation for Economic Co-operation and Development (oecd) countries will translate into worsening export performance for the least developed...

Business Cycles, the Exchange Rate, and Demand for Antidumping Protection in Mexico

Gunnar Niels, Joseph Francois

Antidumping actions in the US and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn, increasing the chance...

Market Structure in Services and Market Access in Goods

Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated

We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by...

Preference Erosion and Multilateral Trade Liberalization

This paper is concerned with rules of origin when intermediate goods are differentiated. An analytical model emphasizes trade patterns and the relative importance of trade in intermediates given...

Francois, Joseph, Hoekman, Bernard, Manchin, Miriam

Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing...

Institutions, Infrastructure and Trade

Francois, Joseph, Manchin, Miriam

We work with a panel of bilateral trade flows from 1988 to 2002, exploring the influence of infrastructure, institutional quality, colonial and geographic context, and trade preferences on the...

The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets

Market structure and market access

The inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from...

Institutions, infrastructure, and trade

The authors examine an issue at the nexus of domestic competition policy and international trade, the interaction between goods trade and market power in domestic trade and distribution sectors....

Francois, Joseph, Manchin, Miriam

The authors examine the influence of infrastructure, institutional quality, colonial and geographic context, and trade preferences on the pattern of bilateral trade. They are interested in threshold...

Producer Services, Manufacturing Linkages, and Trade

Trade in International Transport Services: The Role of Competition

Working with a mix of panel data on goods and services trade for the OECD for 1994-2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to the...

Market Structure, Trade Liberalization and the GATS

We are concerned with trade in transport services (not cabotage but rather international shipping, transport, and related logistical services) and the importance of competition and market structure...

Preferential Trade Arrangements, Induced Investment, and National Income in a Heckscher-Ohlin-Ramsey Model

In this paper we examine the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. In this context, we...

Joseph Francois, M. Rombout

We develop a Heckscher-Ohlin-Ramsey model, combining dual techniques with classic geometric techniques from trade theory. This framework is used to explore the long-run general equilibrium effects of...

Victims of Progress: Economic Integration, Specialization, and Wages for Unskilled Labor

Joseph Francois, Douglas R. Nelson

In this paper we demonstrate that intra-industry trade (or FDI) between identical countries could produce the observed deterioration in the relative wages of unskilled workers. This involves a model...

Formula Approaches for Market Access Negotiations

Joseph Francois, Will Martin

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff-cutting formulas such as the "Swiss" formula. However, wide variations in initial tariff rates...

Business Cycles, the Current Account, and Administered Protection in Mexico

Joseph Francois, Gunnar Niels

Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore...

Market Structure in Services and Market Access in Goods

National and International Income Dispersion and Aggregate Expenditures

We examine interaction between trade in goods and market power in domestic trade and distribution, developing a model that highlights this interaction. Theory points to an expected linkage between...

Carmen Fillat, Joseph Francois

We examine linkages between aggregate household income, distribution of that income, and aggregate cross-country expenditure patterns. We are able to decompose income effects into international...

Antitrust in Open Economies

Joseph Francois, Henrik Horn

We examine antitrust rules in a two county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of the...

Preference erosion and multilateral trade liberalization

Francois, Joseph, Hoekman, Bernard, Manchin, Miriam

Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing...

Scale Economies and Imperfect Competition in the GTAP Model

Household Inequality, Welfare, and the Setting of Trade Policy

The universe of existing CGE models can be divided into 3 broad categories. The first class of models (of which the standard GTAP model is a classic example) emphasizes the static effects of policy...

Antitrust in Open Economies

We analyze general equilibrium relationships between trade policy and the household distribution of income, decomposing social welfare into real income level and variance components through Gini and...

Joseph Francois, Henrik Horn

We examine antitrust rules in a two county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of the...

Rags in the High Rent District: the Evolution of Quota Rents in Textiles and Clothing

Market structure, trade liberalization and the GATS

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing...

Francois, Joseph, Horn, Henrik

Introduction

INTRODUCTION TO THE SPECIAL SECTION ON CHINA AND THE WTO

Joseph Francois, Shunli Yao

Formula Approaches for Market Access Negotiations

Joseph Francois, Will Martin

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff--cutting formulas such as the "Swiss" formula. However, wide variations in initial tariff rates...

Institutions, Infrastructure, and Trade

Joseph Francois, Miriam Manchin

We work with a panel of bilateral trade flows from 1988 to 2002, exploring the influence of infrastructure, institutional quality, colonial and geographic context, and trade preferences on the...

Equity and Trade Policy

The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets

We develop a dual approach to analyzing general equilibrium relationships between trade policy and household (as distinct from functional) income distribution, highlighting how general equilibrium...

Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System

The inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from...

Francois, Joseph, Horn, Henrik, Kaunitz, Niklas

It has been alleged since its inception that the WTO Dispute Settlement (DS) mechanism is biased against developing countries, as manifested in e.g. allegedly too low rates of dispute initiation. To...

Market Structure and Market Access

Producer Services, Manufacturing Linkages, and Trade

We examine the interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a set of linkages between service-sector competition and goods trade...

Globalization, Roundaboutness, and Relative Wages

Working with a mix of panel data on goods and services trade for the OECD for 1994-2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to 2001,...

Joseph Francois, Kevin Grier, Douglas Nelson

We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North by developing the basic linkages between trade-based integration and relative wages in an...

Assessing the Impact of Trade Policy on Labor Markets and Production

Household Inequality, Welfare, and the Setting of Trade Policy

This paper discusses the measurement of production and employment effects of trade policy, and more broadly the effects of economic integration and globalization. First, it provides a broad-brush...

Rags in the High Rent District: the Evolution of Quota Rents in Textiles and Clothing

We analyze general equilibrium relationships between trade policy and the household distribution of income, decomposing social welfare into real income level and variance components through Gini and...

Formulas for Success? Some Options for Market Access Negotiations

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing...

Commercial Policy Variability, Bindings, and Market Access

Most of the large tariff reductions achieved in multilateral trade negotiations have involved the use of tariff-cutting formulas, such as the “Swiss” formula. But the wide variations in initial...

Joseph Francois, Will Martin

Protection unconstrained by rules often varies substantially over time. Rules-based disciplines, such as WTO tariff bindings and bindings on market access in services, constrain this variability. We...

Liberalization and Capital Accumulation in the GTAP Model

Francois, Joseph, Bradley McDonald

1996, July This paper explores trade policy and investment linkages in the GTAP model. This is done under alternative steady-state closure rules linking trade to consumption, production, and...

Agriculture and Non-Agricultural Liberalization in the Millennium Round

Hertel, Thomas W., Kym Anderson, Joseph Francois, Will Martin

Published in "Agriculture and the New Trade Agenda From a Development Perspective", edited by M. D. Ingco and L. A. Winters, Cambridge and New York: Cambridge University Press Much remains to be done...

NONLINEAR PANEL ESTIMATION OF TIME-VARYING EFFECTS OF IMPORT QUOTAS

TRADE THROUGH FDI: investing in services

We develop a panel-based ICLS framework for estimating the export tax equivalent (ETE) of quotas where the ETEs vary over time. Working with a panel of bilateral data on textile and clothing trade,...

Carmen Fillat-Castej—n, Joseph Francois, Julia Woerz

The type of relationship between different modes of trading services across international borders is of great interest, not only for the academic literature but also for the formulation trade...

Rags in the High Rent District: The Evolution of Quota Rents in Textiles and Clothing

Joseph Francois, Julia Wörz

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing...

The Uruguay Round: A Global General Equilibrium Assessment

Francois, Joseph, McDonald, Brad, Nordström, Håkan

In this paper we provide an economic assessment of the Uruguay Round agreements on tariffs, textiles and clothing, and agriculture, highlighting scale economies, imperfect competition, and dynamic...

Multilateral Trade Rules and the Expected Cost of Protection

Francois, Joseph, Martin, Will

Protection unconstrained by rules typically varies considerably over time. The policy disciplines introduced in the Uruguay Round in `new' areas such as agricultural, services, and developing country...

The Role of Services in the Structure of Production and Trade: Stylized Facts from a Cross-Country Analysis

Francois, Joseph, Reinert, Kenneth A

We examine the role of services in the structure of production and trade. Working with a cross-country sample of 17 social accounting matrices, we develop stylized facts relating upstream and...

A Green Light for Environment, or a Green Light for Protection? The EU-US Dispute Over US Corporate Average Fuel Economy Regulations

Francois, Joseph, Nordström, Håkan

The US Corporate Average Fuel Economy (CAFE) regulation mandates, subject to a civil penalty, producers to achieve a certain fleet average fuel economy on sales of new passenger cars. Analysing the...

A User's Guide to Uruguay Round Assessments

Francois, Joseph, McDonald, Brad, Nordström, Håkan

In this paper we provide a broad overview of the computable general equilibrium (CGE) literature on the Uruguay Round, detailing the policy experiments of various studies and differences in model...

Trade Liberalization and Investment in a Multilateral Framework

Francois, Joseph, McDonald, Brad, Nordström, Håkan

This paper explores trade policy and investment linkages in a multicountry framework. This is done under alternative steady-state closure rules linking trade to consumption, production, and...

Public Procurement: A Post-Uruguay Round Perspective

Francois, Joseph, Nelson, Doug R, Palmeter, David

This paper reviews the implications of the Uruguay Round Government Procurement Agreement, both for current practice in the United States and for general conditions of market access in other major...

The Multilateral Trade Agenda: Uruguay Round Implementation and Beyond

Francois, Joseph, McDonald, Brad

In this paper we provide a quantitative examination of initiatives for post-Uruguay Round liberalization in ‘traditional’ GATT/WTO market access areas, as a counterpoint to the recent policy...

Population Growth, Trade Policy, and Migration Incentives

Preferential Trade Liberalization in the North Atlantic

Differences in the rate of population growth between developed and developing countries have potentially important implications for patterns of trade, migration, and the distribution of the gains...

Baldwin, Richard, Francois, Joseph

This study provides a quantitative assessment of the implications of preferential trade liberalization by the North Atlantic economies. Emphasis is placed on the pattern of production and trade in...

Commercial Links Between Western Europe and East Asia: Retrospect and Prospects

Anderson, Kym, Francois, Joseph

East Asia has rapidly become the third centre of gravity for global economic activity. North America is relatively well integrated with East Asia, but Europe is not. This paper explores the extent to...

A geometry of Specialization

Trade, Technology and Wages: General Equilibrium Mechanics

Division of labour models have become a standard analytical tool, along with competitive general equilibrium models (Ricardian, HOS, Ricardo-Viner), in public finance, trade, growth, development and...

Trade in Financial Services: Procompetitive Effects and Growth Performance

This paper highlights analytical reasons why we believe trade and technology are linked to wage movements in general, and how we should organize our examination of the recent episode of wage and...

Francois, Joseph, Schuknecht, Ludger

In this paper we explore linkages between financial services trade and growth. We offer a formalization of the argument that trade, through the fostering of financial market integration, may yield...

Trade in International Transport Services: The Role of Competition

Victims of Progress: Economic Integration, Specialization and Wages for Unskilled Labour

We are concerned with trade in transport services (not cabotage but rather international shipping, transport, and related logistical services) and the importance of competition and market structure...

Preferential Trade Arrangements, Induced Investment, and National Income in a Heckscher-Ohlin-Ramsey Model

In this paper we demonstrate that intra-industry trade (or FDI) between identical countries could produce the observed deterioration in the relative wages of unskilled workers. This involves a model...

Market Structure, Trade Liberalization, and the GATS

We develop a Heckscher-Ohlin-Ramsey model, combining dual techniques with classic geometric techniques from trade theory. This framework is used to explore the long-run general equilibrium effects of...

Commercial Policy Variability, Bindings and Market Access

In this Paper we examine the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. In this context, we...

Francois, Joseph, Martin, Will

Protection unconstrained by rules often varies substantially over time. Rules-based disciplines, such as WTO tariff bindings and bindings on market access in services, constrain this variability. We...

Financial Sector Competition, Services Trade, and Growth

Eschenbach, Felix, Francois, Joseph

We explore dynamic linkages between financial/banking sector openness, financial sector competition, and growth. We first develop an analytical model, highlighting links between long-run economic...

Formula Approaches for Market Access Negotiations

Francois, Joseph, Martin, Will

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff-cutting formulas such as the ‘Swiss’ formula. Wide variations in initial tariff rates between...

Business Cycles, the Current Account and Administered Protection in Mexico

Francois, Joseph, Niels, Gunnar

Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore...

Trade Liberalization and Developing Countries Under the Doha Round

Francois, Joseph, Van Meijl, Hans, Van Tongeren, Frank

We explore the impact of multilateral liberalization, with emphasis on distributional effects across countries. We first develop a realistic ‘baseline’ that takes into account events such as the...

Political Influence in a New Anti-Dumping Regime: Evidence from Mexico

Francois, Joseph, Niels, Gunnar

We examine the role of political factors in Mexico’s anti-dumping regime, considering both the characteristics of target countries subject to anti-dumping duties and industry-specific factors for...

Globalization, Roundaboutness and Relative Wages

Francois, Joseph, Grier, Kevin Blaine, Nelson, Douglas

We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North trade and linkages between trade-based integration and relative wages in an Etiher-type...

Trade Policy and the Household Distribution of Income

Regulated Efficiency, World Trade Organization Accession and the Motor Vehicle Sector in China

We explore the relationship between import protection and the household distribution of income. We first develop a general-equilibrium mapping from tariffs to household inequality measures. This also...

Francois, Joseph, Spinanger, Dean

This Paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a...

Household Inequality, Welfare and the Setting of Trade Policy

Market Structure in Services and Market Access in Goods

We analyse general equilibrium relationships between trade policy and the household distribution of income, decomposing social welfare into real income level and variance components through Gini and...

Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated

We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by...

Preference Erosion and Multilateral Trade Liberalization

This paper is concerned with rules of origin when intermediate goods are differentiated. An analytical model emphasizes trade patterns and the relative importance of trade in intermediates given...

Joseph Francois, B. Hoekman, M. Manchin

Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing...

Institutions, Infrastructure and Trade

Joseph Francois, Miriam Manchin

We work with a panel of bilateral trade flows from 1988 to 2002, exploring the influence of infrastructure, institutional quality, colonial and geographic context, and trade preferences on the...

Producer Services, Manufacturing Linkages, and Trade

Economic Implications of Asian Integration

producer services, linkages, manufacturing exports, service imports, multiplier effects, F14, L8, O11,

Joseph Francois, Ganeshan Wignaraja

The Asian countries are once again focused on options for large, comprehensive regional integration schemes. In this paper we explore the implications of such broad-based regional trade initiatives...

Dynamic Factor Price Equalization & International Convergence

Joseph Francois, Clinton R. Shiells

We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price...

Dynamic Factor Price Equalization & International Income Convergence

Joseph Francois, Clinton R. Shiells

The paper develops a tractable way to incorporate the micro structure of dual models of international trade into a standard class of dynamic open-economy macro models. In the process, it develops the...

Heterogeneous Firms, the Structure of Industry, and Trade under Oligopoly

Bekkers, Eddy, Francois, Joseph

We develop a model with endogeneity in key features of industrial structure linked to heterogeneous cost structures under Cournot competition. We use the model to explore issues related to...

Economic Implications of Deeper Asian Integration

Francois, Joseph, Wignaraja, Ganeshan

The Asian countries are once again focused on options for large, comprehensive regional integration schemes. In this paper we explore the implications of such broad-based regional trade initiatives...

Endogenous Protection in General Equilibrium: Estimating Political Weights in the EU

Francois, Joseph, Nelson, Douglas, Pelkmans-Balaoing, Annette

We examine the political economy underpinnings of import protection in general equilibrium. Starting from a dual theoretical representation of production, trade, and consumption, we map a general...

Dynamic Factor Price Equalization & International Convergence

Francois, Joseph, Shiells, Clinton R.

We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price...

Cross-Border Trade and FDI in Services

Fillat Castejón, Carmen, Francois, Joseph, Woerz, Julia

Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical...

Dynamic Factor Price Equalization and International Convergence

Clinton R. Shiells, Joseph Francois

We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price...

Cross-Border Trade and FDI in Services

Carmen Fillat Castejon, Julia Wörz, Joseph Francois

Working with a panel dataset of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the services sectors. We first develop a consistent analytical...

Financial Openness and Growth in 213 Countries: A Finance and Growth Panel Dataset

Joseph Francois, Gus Garita, Julia Swart

In this paper, we provide information on an extended and improved version to the economic growth dataset as initially constructed by Eschenbach, Francois, and Nitzsche (2003). We give detailed...

Trade Impact Assessment of an EU-India Free Trade Agreement

Joseph Francois, Hanna Norberg, Miriam Manchin

We analyze the effects of potential measures to liberalize trade between the European Union and India using a computable general equilibrium (CGE) model of world trade. Overall, our analysis shows...

Trends in International Trade and FDI in Services: a global database of services trade

Joseph Francois, Olga Pindyuk, Julia Woerz

This paper builds upon an updated database of international trade and FDI in services (Trade in Services Database Ð TSD) to provide an overview of recent trends in volume and modes of trade in...

Global Simulation Analysis of Industry-Level Trade Policy: the GSIM model

Joseph Francois, H. Keith Hall

This technical report brings together two papers on the linear and non-linear versions of the multi-region trade simulation model known as GSIM. It outlines a modeling strategy for the partial...

An Extended Global Simulation Model: Analysis of Tariffs & Anti-Dumping Policy Impacts on Prices, Output, Incomes, and Employment