Information diffusion in international markets ∗ (2007)
Alejandro Izquierdo Φ, Jacques Morisset, Marcelo Olarreaga
Abstract: Information is costly to acquire in trade and financial markets, especially across international borders. Sellers and buyers rely on information and experiences of other firms, including...
Trade and Production, 1976-99 * (2007)
Alessandro Nicita, Marcelo Olarreaga
This paper is a companion to the database in the Trade and Production CD-ROM. The database contains trade, production and tariff data for 67 developing and developed countries at the industry level...
Elena Ianchovichina, Aaditya Mattoo, Marcelo Olarreaga, Will Martin, Francis Ng, Arvind Subramanian, ...
Initiatives to improve market access for the poorest countries have recently been
Trade in International Maritime Services: How Much Does Policy Matter? (2007)
Carsten Fink, Aaditya Mattoo, Ileana Cristina Neagu, Simon Evenett, Bernard Hoekman, Pierre Latrille, ...
Abstract: Maritime transport costs significantly impede international trade. This paper examines why these costs are so high in some countries, and quantifies the importance of two explanations:...
The World Bank and CEPR (2007)
Bernard Hoekman, Ataman Aksoy, Jagdish Bhagwati, Richard Blackhurst, John Cuddy, Uri Dadush, ...
Despite recurring rounds of trade liberalization under GATT/WTO auspices, complemented by unilateral reforms, many developing countries have not been able to integrate into the world economy. This...
On ’Indirect ’ Trade-Related R&D Spillovers ∗ Olivier (2007)
Marcelo Olarreaga, Maurice Schiff
An influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on ‘direct’ R&D spillovers which are related...
Alessandro Nicita, Marcelo Olarreaga, Garry Pursell, Maurice Schiff, Isidro Soloaga, David Tarr, ...
Abstract: Exporters ’ performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decisions upon the information...
Facchini, Giovanni, Olarreaga, Marcelo, Silva, Peri, Willmann, Gerald
This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is...
Trade, Production, and Protection Database, 1976-2004 (2007)
Nicita, Alessandro, Olarreaga, Marcelo
The database described in this article provides researchers with a broad set of data on trade, production, and protection for 28 manufacturing sectors at the three-digit level of the International...
Trade, Production, and Protection Database, 1976-2004 (2007)
Nicita, Alessandro, Olarreaga, Marcelo
The database described in this article provides researchers with a broad set of data on trade, production, and protection for 28 manufacturing sectors at the three-digit level of the International...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help? (2006)
Anson, Jose, Cadot, Olivier, Olarreaga, Marcelo
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help? (2006)
Anson, Jose, Cadot, Olivier, Olarreaga, Marcelo
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help? (2006)
Anson, Jose, Cadot, Olivier, Olarreaga, Marcelo
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help? (2006)
Anson, Jose, Cadot, Olivier, Olarreaga, Marcelo
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
The impact of trade with China and India on Argentina’s manufacturing employment (2006)
Castro, Lucio, Olarreaga, Marcelo, Saslavsky, Daniel
For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two ‘mighty giants’ on the region’s manufacturing sector. Are...
Limão, Nuno, Olarreaga, Marcelo
The proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows multilateral trade liberalization. Recent theoretical and empirical evidence...
Limão, Nuno, Olarreaga, Marcelo
The proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows multilateral trade liberalization. Recent theoretical and empirical evidence...
Tariffs, Entry Regulation and Markups: Country Size Matters (2004)
Hoekman, Bernard, Kee, Hiau Looi, Olarreaga, Marcelo
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...
Tariffs, Entry Regulation and Markups: Country Size Matters (2004)
Hoekman, Bernard, Kee, Hiau Looi, Olarreaga, Marcelo
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...
Tariffs, Entry Regulation and Markups: Country Size Matters (2004)
Hoekman, Bernard, Kee, Hiau Looi, Olarreaga, Marcelo
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...
Tariffs, Entry Regulation and Markups: Country Size Matters (2004)
Hoekman, Bernard, Kee, Hiau Looi, Olarreaga, Marcelo
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...
Lobbying, Counterlobbying, and the Structure of Tariff Protection in Poor and Rich Countries (2004)
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
A political economy model of protection is used to determine endogenously the intersectoral patterns of protection. Three propositions are derived that are consistent with the stylized patterns of...
Agricultural Tariffs or Subsidies: Which Are More Important for Developing Economies? (2004)
Hoekman, Bernard, Ng, Francis, Olarreaga, Marcelo
This article assesses the impact of the world price–depressing effect of agricultural subsidies and border protection in oecd countries on developing economies' exports, imports, and welfare....
Maurice Schiff, Yanling Wang, Marcelo Olarreaga, World Bank
This paper examines the impact on TFP of North-South and South-South traderelated R&D spillovers. It is the first, as far as we know, to do so at the industry level for developing countries....
Bernard Hoekman, Francis Ng, Marcelo Olarreaga
High levels of protection and domestic support for farmers in developed countries significantly affect many developing countries, both directly and through the price-depressing effect of agricultural...
The Regulation of Entry (2002)
Simeon Djankov, Rafael La Porta, Andrei Shleifer, Richard Caves, Jacqueline Coolidge, ...
Abstract. We present new data on the regulation of entry of start-up firms in 75 countries. The data set contains information on the number of procedures, official time, and official cost that a...
Group World, Bank Bernard Hoekman, Bernard Hoekman, Francis Ng, Francis Ng, Marcelo Olarreaga
for helpful comments and suggestions. The authors also thank Gerard Durand, Alice Enders, Daniel Morales, and Javier Suarez for valuable advice and data and Lili Tabada for excellent assistance.
Unrestricted Market Access for Sub-Saharan Africa: How Much Is It Worth and Who Pays? (2001)
Ianchovichina, Elena, Mattoo, Aaditya, Olarreaga, Marcelo
Initiatives to improve market access for the poorest countries have recently been announced by the EU, Japan and the USA. This paper assesses the impact of these initiatives and others that might be...
Multilateral Disciplines for Investment-Related Policies? (1999)
Bernard Hoekman, Kamal Saggi, Will Martin, Aaditya Mattoo, Marcelo Olarreaga, Arvind Panagariya, ...
This paper asks whether there is a strong case for developing countries to support the creation of a multilateral agreement on investment. We identify a number of potential gains from cooperation:
Bilal, Sanoussi, Olarreaga, Marcelo
This paper discusses the arguments in favour of an International Competition Policy Agreement (ICPA) within the WTO framework. We argue that the only clear justification for an ICPA is in the...
Bilal, Sanoussi, Olarreaga, Marcelo
Co-ordination of competition policies within regional trade agreements (RTAs) seems desirable, especially within deeper forms of regional integration. This contributes to a healthy and stable...
Endogenous Tariff Formation: The Case of Mercosur (1998)
Olarreaga, Marcelo, Soloaga, Isidro
Mercosur appears as an interesting case study for analyzing the determinants of exceptions in regional trade agreements. Its member countries—Argentina, Brazil, Paraguay, and Uruguay—intended to...
Thèse sciences écon. et soc. Genève.
Lobbying, Counterlobbying, and the Structure of Tariff Protection in Poor and Rich Countries
Olivier Cadot, Jaime De Melo, Marcelo Olarreaga
A political economy model of protection is used to determine endogenously the intersectoral patterns of protection. Three propositions are derived that are consistent with the stylized patterns of...
Can duty-drawbacks have a protectionist bias? Evidence from MERCOSUR
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
Duty drawback (or rebate) systems, reduce or eliminate the duties paid on imported intermediate goods, or raw materials used in the production of exports. When a firm imports an intermediate product...
Trademark protection or protectionism?
Baroncelli, Eugenia, Krivonos, Ekaterina, Olarreaga, Marcelo
This paper explores the extent to which discrimination against foreign applicants in the trademark registration process can be used as a"behind-the-border"barrier to imports. Prima-facie evidence...
Sugar Prices, Labour Income and Poverty in Brazil
Krivonos, Ekaterina, Olarreaga, Marcelo
This paper assesses the impact that a potential liberalization of sugar regimes in OECD countries could have on household labour income and poverty in Brazil. We first estimate the extent of price...
How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?
Cadot, Olivier, Dutoit, Laure, Olarreaga, Marcelo
The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational...
How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?
Olivier Cadot, Laure Dutoit, Marcelo Olarreaga
The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational...
Reciprocity across modes of supply in the World Trade Organization : a negotiating formula
Mattoo, Aaditya, Olarreaga, Marcelo
Negotiations on trade in services at the World Trade Organization (WTO) have so far produced little liberalization beyond levels countries have undertaken unilaterally. One reason: limited...
Who determines Mexican trade policy?
Grether, Jean-Marie, De Melo, Jaime, Olarreaga, Marcelo
Using a political economy approach, the authors analyze the pattern of protection in Mexico's manufacturing sector during the period of trade policy reforms (1985-89), when Mexico experienced...
Limao, Nuno, Olarreaga, Marcelo
The proliferation of preferential trade liberalization over the past 20 years has raised the question of whether it slows down multilateral trade liberalization. Recent theoretical and empirical...
Markups, entry regulation, and trade - Does country size matter?
Hoekman, Bernard, Hiau Looi Kee, Olarreaga, Marcelo
Actual, and potential competition is a powerful source of discipline on the pricing behavior of firms with market power. The authors develop a simple model that shows that the effects of new entry,...
Agricultural Tariffs or Subsidies: Which Are More Important for Developing Economies?
Bernard Hoekman, Francis Ng, Marcelo Olarreaga
This article assesses the impact of the world price--depressing effect of agricultural subsidies and border protection in oecd countries on developing economies' exports, imports, and welfare....
Mode of foreign entry, technology transfer, and foreign direct investment policy
Mattoo, Aaditya, Olarreaga, Marcelo, Saggi, Kamal
Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign...
The proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows multilateral trade liberalization. Recent theoretical and empirical evidence...
Export Promotion Agencies: What Works and What Doesn't
Lederman, Daniel, Olarreaga, Marcelo, Payton, Lucy
The number of national export promotion agencies (EPAs) has tripled over the last two decades. While more countries made them part of their national export strategy, studies criticized their...
Export promotion agencies : what works and what doesn't
Lederman, Daniel, Olarreaga, Marcelo, Payton, Lucy
The number of national export promotion agencies (EPAs) has tripled over the past two decades. While more countries have made them part of their national export strategy, studies have criticized...
The impact of trade with China and India on Argentina's manufacturing employment
Castro, Lucio, Olarreaga, Marcelo, Saslavsky, Daniel
For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two"mighty giants"on the region's manufacturing sector. Are they...
Trade, Production, and Protection Database, 1976--2004
Alessandro Nicita, Marcelo Olarreaga
The database described in this article provides researchers with a broad set of data on trade, production, and protection for 28 manufacturing sectors at the three-digit level of the International...
Substitutability and protectionism : Latin America's trade policy and imports from China and India
Facchini, Giovanni, Olarreaga, Marcelo, Silva, Peri, Willmann, Gerald
The authors examine the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is...
Substitutability and Protectionism: Latin America’s Trade Policy and Imports from China and India
Giovanni Facchini, Marcelo Olarreaga, Peri Silva, Gerald Willmann
This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is...
Information and Export Performance
Alessandro Nicita, Marcelo Olarreaga
Exporters’ performance in a given market may affect their exports to the rest of the world. Importers base their future transaction decisions upon the information revealed by exporter’s...
Specialization and adjustment during the growth of China and India : the Latin American experience
Lederman, Daniel, Olarreaga, Marcelo, Rubiano, Eliana
This paper examines the extent to which the growth of China and India in world markets is affecting the patterns of trade specialization in Latin American economies. The authors construct Vollrath's...
Lederman, Daniel, Olarreaga, Marcelo, Soloaga, Isidro
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...
Foreign direct investment in Latin America during the emergence of China and India : stylized facts
Cravino, Javier, Lederman, Daniel, Olarreaga, Marcelo
In spite of the growing concerns about foreign direct investment being diverted from Latin America to China and India, the best available data show that Latin America has performed relatively well...
Foreign-owned capital and endogenous tariffs
During the past two decades there has been an important increase in investment abroad and a worldwide rush toward free trade. The author argues that the increase in investment abroad may partially...
What's behind MERCOSUR's common external tariff?
Olarreaga, Marcelo, Soloaga, Isidro, Winters, Alan
The theoretical literature on trade follows two different approaches to explaining the endogenous formation of customs unions: 1) The terms-of-trade approach, in which integrating partners are...
Should credit be given for autonomous liberalization in multilateral trade negotiations?
Mattoo, Aaditya, Olarreaga, Marcelo
As each new round of multilateral trade negotiations approaches, there is a demand for a negotiating rule that would give credit for autonomous (unilateral) liberalization. The authors show that the...
Exports and information spillovers
Nicita, Alessandro, Olarreaga, Marcelo
Exporters'performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decision on the information revealed by...
On"indirect"trade-related research and development spillovers
Lumenga-Neso, Olivier, Olarreaga, Marcelo, Schiff, Maurice
Influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on'direct'research and development (R&D) spillovers...
Unrestricted market access for Sub-Saharan Africa - How much is it worth and who pays?
Ianchovichina, Elena, Mattoo, Aaditya, Olarreaga, Marcelo
The European Union (EU), Japan, and the United States (US) have recently announced initiatives to improve market access for the poorest countries. The authors assess the impact on Sub-Saharan Africa...
Eliminating excessive tariffs on exports of least developed countries
Hoekman, Bernard, Ng, Francis, Olarreaga, Marcelo
Most goods imported from developing countries, enter Quad markets duty-free, and, average tariffs in Quad markets are very low. But tariffs for some commodities are over one hundred percent....
Nicita, Alessandro, Olarreaga, Marcelo
The authors have prepared this paper as a companion to the Trade and Production database, which contains trade, production, and tariff data for 67 industrial and developing countries at the industry...
Trade-related technology diffusion and the dynamics of North-South and South-South integration
Schiff, Maurice, Wang, Yanling, Olarreaga, Marcelo
This paper examines the impact on total factor productivity of North-South and South-South trade-related research and development (R&D) spillovers. It is the first to do so at the industry level for...
Politically optimal tariffs : an application to Egypt
Madani, Dorsati, Olarreaga, Marcelo
Egyptian economic history has been influenced by the import-substitution industrialization approach to development, dating back to Gamal Abdel Nasser's Pan-Arabic and socialist movement in the 1950s....
Hoekman, Bernanrd, Ng, Francis, Olarreaga, Marcelo
High levels of protection and domestic support for farmers in industrial countries significantly affect many developing countries, both directly and through the price-depressing effect of...
Information diffusion in international markets
Izquierdo, Alejandro, Morisset, Jacques, Olarreaga, Marcelo
Globalization has been a persistent phenomenon of the post-war period. The gross volume of cross-border capital flows has grown at an average of 25 percent a year, and trade in goods and services has...
Tariff evasion and customs corruption : does pre-shipment inspection help?
Olivier Cadot, Jose Anson, Marcelo Olarreaga
The authors provide a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Market access for sale : Latin America's lobbying for U.S. tariff preferences
Kee, Hiau Looi, Olarreaga, Marcelo, Silva, Peri
This paper assesses the foreign lobbying forces behind the tariff preferences that the United States grants to Latin American and Caribbean countries. The basic framework is the one developed that is...
Import demand elasticities and trade distortions
Hiau Looi Kee, Nicita, Alessandro, Olarreaga, Marcelo
To study the effects of tariffs on gross domestic product (GDP), one needs import demand elasticities at the tariff line level that are consistent with GDP maximization. These do not exist. The...
Estimating trade restrictiveness indices
Kee, Hiau Looi, Nicita, Alessandro, Olarreaga, Marcelo
The objective of this paper is to provide indicators of trade restrictiveness that include both measures of tariff and nontariff barriers for 91 developing and industrial countries. For each country,...
Sugar prices, labor income, and poverty in Brazil
Krivonos, Ekaterina, Olarreaga, Marcelo
This paper assesses the impact that a potential liberalization of sugar regimes in OECD countries could have on household labor income and poverty in Brazil. The authors first estimate the extent of...
How costly is it for poor farmers to lift themselves out of poverty?
Cadot, Olivier, Dutoit, Laure, Olarreaga, Marcelo
The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational...
Pricing Policy under Double Market Power: Madagascar and the International Vanilla Market.
De Melo, Jaime, Olarreaga, Marcelo, Takacs, Wendy
This paper uses a price-leadership model of the international vanilla market to study the welfare consequences of alternative pricing policies for Madagascar, the leader, that also controls domestic...
AGOA and Apparel: Who Captures the Tariff Rent in the Presence of Preferential Market Access?
Marcelo Olarreaga, Çaglar Özden
The United States grants preferential (tariff- and quota-free) market access to a list of products from eligible countries in sub-Saharan Africa through the African Growth and Opportunity Act (AGOA)....
Tariff Reductions under Foreign Factor Ownership
In the presence of foreign factor ownership, the traditional welfare effects of tariff reforms have to be reconsidered to include income redistribution between national and foreign-owned factors....
Cravino, Javier, Lederman, Daniel, Olarreaga, Marcelo
This paper explores the impact of the emergence of China and India on foreign capital stocks in other economies. Using bilateral data from 1990-2003 and drawing from the knowledge-capital model of...
Tariff Reductions in the Presence of Foreign Direct Investment.
This paper argues that the welfare effects of trade liberalization in the presence of foreign direct investment obtained under perfect competition cannot be extended to imperfectly competitive...
Trademark Protection or Protectionism? *
Eugenia Baroncelli, Ekaterina Krivonos, Marcelo Olarreaga
This paper explores the extent to which discrimination against foreign applicants in the trademark registration process can be used as a "behind-the-border" barrier to imports. Prima-facie evidence...
Harmonizing External Quotas in an FTA: A Step Backward?
Olivier Cadot, Jaime De Melo, Marcelo Olarreaga
This paper explores how political-economy forces shape quantitative barriers against the rest of the world in an FTA. We show that whereas the dilution of lobbying power in an FTA typically leads to...
Estimating Import Demand and Export Supply Elasticities
Marcelo Olarreaga, Hiau Looi Kee, Alessandro Nicita
The objective of this paper is to provide estimates of import demand and export supply elasticities for around 4200 goods (six digit of the Harmonized System) in 117 countries. The empirical...
Estimating Trade Restrictiveness Indices
Kee, Hiau Looi, Nicita, Alessandro, Olarreaga, Marcelo
The objective of this paper is to provide indicators of trade restrictiveness that include both measures of tariff and non-tariff barriers for 91 developing and developed countries. For each country,...
Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market
De Melo, Jaime, Olarreaga, Marcelo, Takacs, Wendy E
This paper uses a price-leadership model of the international vanilla market to study the welfare consequences of alternative pricing policies for Madagascar – a country that controls domestic...
Regional Integration and Lobbying for Tariffs Against Non-members
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
Using an extension of the influence-driven lobbying approach developed by Grossman and Helpman, we study the impact of regional integration arrangements (RIAs) on trade policy towards non-members in...
Lobbying and the Structure of Protection
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
This paper extends the influence-driven model of trade policy determination to include general equilibrium effects on the supply side resulting from labour-market interaction and intermediate goods....
Endogenous Tariff Formation: The Case of Mercosur
Olarreaga, Marcelo, Soloaga, Isidro
This paper confronts the results of the endogenous tariff literature with MERCOSUR (Mercado Comun del Sur, literally, ‘the Common Market of the Southern Cone’) evidence. It is shown that...
Can Bilateralism Ease the Pains of Multilateral Trade Liberalization?
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
Using the influence-driven approach to endogenous trade-policy determination, we show how a free-trade agreement (FTA) with rules of origin can work as a device to compensate losers from trade...
Harmonizing External Quotas in a FTA: A Step Backward?
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
This paper explores how political-economy forces shape quantitative barriers against the rest of the world in a FTA. We show that whereas the dilution of lobbying power in a FTA typically leads to a...
Who Determines Mexican Trade Policy?
De Melo, Jaime, Grether, Jean-Marie, Olarreaga, Marcelo
This paper uses a political economy approach to analyze the pattern of Mexican manufacturing sector protection during the period of trade policy reforms between 1985 and 1989 when Mexico experiences...
Asymmetric Regionalism in Sub-Saharan Africa: Where Do We Stand?
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
The paper reviews the likely economic effects of the Regional Economic Partnership Agreements (REPAs) proposed by the EU to the ACP countries to succeed to the Lomé IV agreements. We argue that, in...
Olarreaga, Marcelo, Soloaga, Isidro, Winters, L Alan
The theoretical literature follows two different approaches to explain the endogenous formation of a Customs Union (CU). The first one explains CU formation through the willingness of integrating...
Reciprocity Across Modes of Supply in the WTO: A Negotiating Formula
Mattoo, Aaditya, Olarreaga, Marcelo
The negotiations on trade in services at the WTO have so far produced little liberalization beyond levels unilaterally undertaken by countries. One reason is the neglect of the traditional...
The Protectionist Bias of Duty Drawbacks and the New Regionalism
Cadot, Olivier, De Melo, Jaime, Olarreaga, Marcelo
In a political-economy setting where tariffs and duty drawbacks are endogenously chosen through industry lobbying, it is shown that full duty-drawbacks are granted to exporters who use imported...
Exports and Information Spillovers
Exporters’ performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decisions upon the information revealed by...
Tariff Peaks in the Quad and Least Developed Country Exports
Hoekman, Bernard, Ng, Francis, Olarreaga, Marcelo
Although average tariffs in Quad markets are very low, tariff peaks and tariff escalation have a disproportional effect on exports from least developed countries (LDCs). Tariff peak products tend to...
Unrestricted Market Access for Sub-Saharan Africa: How Much is it Worth and Who Pays?
Ianchovichina, Elena, Mattoo, Aaditya, Olarreaga, Marcelo
Initiatives to improve market access for the poorest countries have recently been announced by the European Union, Japan and the United States. This Paper assesses the impact on Sub-Saharan Africa...
Should Credit be Given for Autonomous Liberalization in Multilateral Trade Negotiations?
Mattoo, Aaditya, Olarreaga, Marcelo
As each new round of multilateral trade negotiations approaches, there is a demand for a negotiating rule that would give credit for autonomous liberalization. This Paper shows that the desirability...
Mode of Foreign Entry, Technology Transfer, and FDI Policy
Mattoo, Aaditya, Olarreaga, Marcelo, Saggi, Kamal
Foreign direct investment (FDI) can take place either through the direct entry of foreign firms or the acquisition of existing domestic firms. The preferences of a foreign firm and the host country...
On 'Indirect' Trade-Related R&D Spillovers
Lumenga-Neso, Olivier, Olarreaga, Marcelo, Schiff, Maurice
An influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on ‘direct’ R&D spillovers which are related to...
Mark-ups, Entry Regulation and Trade: Does Country Size Matter?
Hoekman, Bernard, Kee, Hiau Looi, Olarreaga, Marcelo
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms with market power. A simple model is developed that shows that the effects of import competition...
Hoekman, Bernard, Ng, Francis, Olarreaga, Marcelo
High levels of protection and domestic support for farmers in developed countries significantly affect many least developed countries (LDCs), both directly and through the price-depressing effect of...
North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis
Olarreaga, Marcelo, Schiff, Maurice, Wang, Yanling
This Paper examines the impact on TFP of North-South and South-South trade-related R&D spillovers. It is the first, as far as we know, to do so at the industry level for developing countries....
Information Diffusion in International Markets
Izquierdo, Alejandro, Morisset, Jacques, Olarreaga, Marcelo
Information is costly to acquire in trade and financial markets, especially across international borders. Sellers and buyers rely on information and experiences of other firms, including from...
Market Access for Sale: Latin America's Lobbying for US Tariff Preferences
Kee, Hiau Looi, Olarreaga, Marcelo, Silva, Peri
This Paper assesses the foreign lobbying forces behind the tariff preferences that the United States grants to Latin American countries. The basic framework is one developed by Grossman and Helpman...
Tariff Evasion and Customs Corruption: Does PSI Help?
Anson, José, Cadot, Olivier, Olarreaga, Marcelo
This Paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
India's Trade Policy For Sale: How Much? Who Buys?
Cadot, Olivier, Grether, Jean-Marie, Olarreaga, Marcelo
This Paper proposes a new method to test the Grossman-Helpman model of endogenous protection and lobby formation. This method, which does not require outside data on lobbies or contributions,...
Import Demand Elasticities and Trade Distortions
Kee, Hiau Looi, Nicita, Alessandro, Olarreaga, Marcelo
To study the effects of tariffs on GDP one needs import demand elasticities at the tariff line level that are consistent with GDP maximization. These do not exist. We modify Kohli’s (1991) GDP...
Limão, Nuno, Olarreaga, Marcelo
The proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows down multilateral trade liberalization. Recent theoretical and empirical...
Eliminating Excessive Tariffs on Exports of Least Developed Countries
Bernard Hoekman, Francis Ng, Marcelo Olarreaga
Although average oecd tariffs on imports from the least developed countries are very low; tariffs above 15 percent (peaks) have a disproportional effect on their exports. Products subject to tariff...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help?
Jose Anson, Olivier Cadot, Marcelo Olarreaga
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Tariffs, Entry Regulation and Markups: Country Size Matters
Bernard Hoekman, Hiau Looi Kee, Marcelo Olarreaga
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...
Substitutability and protectionism: Latin America's trade policy and imports from China and India
Facchini, Giovanni, Olarreaga, Marcelo, Silva, Peri, Willmann, Gerald
This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is...
Why Are Trade Agreements More Attractive In The Presence Of Foreign Direct Investment?
This paper argues that interests of nationals (i.e., domestic residents) and owners of home-based foreign capital in the formation of a Trade Agreements (TA) are not antagonistic, except under rather...
Trade Specialization in Latin America: The Impact of China and India
Daniel Lederman, Marcelo Olarreaga, Eliana Rubiano
Comparative advantage, China, India, Latin America,
Substitutability and Protectionism: Latin America’s Trade Policy and Imports from China and India
Giovanni Facchini, Marcelo Olarreaga, Peri Silva, Gerald Willmann
This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is...
The impact of trade with China and India on Argentina’s manufacturing employment
Castro, Lucio, Olarreaga, Marcelo, Saslavsky, Daniel
For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two ‘mighty giants’ on the region’s manufacturing sector. Are...
Import Demand Elasticities and Trade Distortions
Hiau Looi Kee, Alessandro Nicita, Marcelo Olarreaga
This paper provides a systematic estimation of import demand elasticities for a broad group of countries at a very disaggregated level of product detail. We use a semiflexible translog GDP function...
Estimating Trade Restrictiveness Indices
Hiau LooiKee, Alessandro Nicita, Marcelo Olarreaga
Studies of the impact of trade restrictiveness on growth, poverty or unemployment are frequent in the academic literature. Few authors, however, provide a precise definition of what they mean by...
Lobbying competition over trade policy
Gawande, Kishore, Krishna, Pravin, Olarreaga, Marcelo
Competition between opposing lobbies is an important factor in the endogenous determination of trade policy. This paper investigates empirically the consequences of lobbying competition between...
What Governments Maximize and Why: The View from Trade
Kishore Gawande, Pravin Krishna, Marcelo Olarreaga
Policy making power enables governments to redistribute income to powerful interests in society. However, some governments exhibit greater concern for aggregate welfare than others. This government...
Do Trade Agreements Reduce the Volatility of Agricultural Distortions?
Cadot, Olivier, Olarreaga, Marcelo, Tschopp, Jeanne
The objective of this paper is to evaluate the extend to which trade agreements affect agricultural trade policy volatility. Using a new panel database compiled as part of the World Bank's...
What Governments Maximize and Why: The View from Trade
Gawande, Kishore, Krishna, Pravin, Olarreaga, Marcelo
Policymaking power enables governments to redistribute income to powerful interests in society. However, some governments exhibit greater concern for aggregate welfare than others. This government...
Smoke in the water : the use of tariff policy flexibility in crises
Foletti, Liliana, Fugazza, Marco, Nicita, Alessandro, Olarreaga, Marcelo
As the economic crisis deepens and widens, fears of a return to the protectionist spiral of the 1930s become more common. However, an important difference between the 1930s and today is the existence...
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help?
Jose Anson, Olivier Cadot, Marcelo Olarreaga
This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are...
Tariffs, Entry Regulation and Markups: Country Size Matters
Bernard Hoekman, Hiau Looi Kee, Marcelo Olarreaga
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms. This paper extends the empirical literature on the pro-competitive impact of policy reforms by...