International Economics Studies
Volume:46 Issue: 1, Winter and Spring 2016

The paper focuses on regional trade agreements and economic co-operation and develops a new appropriate approach to study their impact on growth and trade. The approach is based on an endogenous trade-growth theory and novelly specified in an economic integration (expenditure) framework which is the conceptual foundation of regional trade agreements. Importantly, it also appropriately takes into account major add- and sub-factors as recommended by Johansen, the computable general equilibrium pioneer, in practical economic planning and policy modelling. Applications of the approach to China, a key member of the Regional Comprehensive Economic Partnership agreement group, are also reported to provide useful insights for suitable evidence-based impact analysis. The analysis has relevance to such trading blocs as BRICS and the 21-member Indian Ocean Rim Association where Iran is a key member. Policy implications from the findings are then briefly discussed.

In this paper, we use a multi-sector specific factors model with international capital mobility to examine the effects of globalization on the skill premium in U.S. manufacturing industries. This model allows us to identify two channels through which globalization affects relative wages: effects of international capital flows transmitted through changes in interest rates, and effects of international trade in goods and services transmitted through changes in product prices. In addition, we identify two domestic forces which affect relative wages: variations in labor endowment and technological change. Our results reveal that changes in labor endowments had a negative effect on the skill premium, while the effect of technological progress was mixed. The main factors behind the rise in the skill premium were product price changes (for the full sample period) and international capital flows (during 1982-05). 

The paper focuses on regional trade agreements and economic co-operation and develops a new appropriate approach to study their impact on growth and trade. The approach is based on an endogenous trade-growth theory and novelly specified in an economic integration (expenditure) framework which is the conceptual foundation of regional trade agreements. Importantly, it also appropriately takes into account major add- and sub-factors as recommended by Johansen, the computable general equilibrium pioneer, in practical economic planning and policy modelling. Applications of the approach to China, a key member of the Regional Comprehensive Economic Partnership agreement group, are also reported to provide useful insights for suitable evidence-based impact analysis. The analysis has relevance to such trading blocs as BRICS and the 21-member Indian Ocean Rim Association where Iran is a key member. Policy implications from the findings are then briefly discussed.

This study tries to identify the structure of global date market under the concentration indices. The results made by indices of   and  show that during the period of 1990 to 2009, their values increased from 1292 to 1466 and from 63 to 67, respectively. It reflects that the inequality intensity of market distribution has grown while the number of exporters is expanded at this time. So, it can be concluded that the new exporters who have entered to the market had a small share and didn't have an ability to reduce the distribution of market share of major exporters. The degree of competition (term CQ) in the market has declined from 37 percent in 1990 to 33 percent in 2009. Based on these indicators, it can be deduced that the policies adopted by the major countries of the market have been in such a way that they have maintained their dominant position and have reduced the share of competitors. The findings also indicate that the global market concentration has no significant effect on Iran-date foreign exchange earnings while exchange rate, production, and price have a significant impact on the foreign earnings.

The relationship between exchange rate volatility and import value indices is one of the important debates in international finance literature and has been considered empirically in recent years. Hence, the main aim of this paper is to evaluate the long-run effect of exchange rate volatility on the import unit value index as a proxy for exchange rate pass-through in two groups of countries with the exchange rate anchor versus inflation targeting monetary regime over the period of 1990-2015. For achieving this purpose, 15 and 43 countries have been selected as countries with exchange rate anchor and inflation targeting monetary policy regime. The econometric model has been estimated by applying ARDL[1] approach in panel data for these two groups of countries. Empirical findings of present study indicated that exchange rate volatility has negative effect on the unit value of imports in the two groups of countries. Moreover, interaction effect of monetary regime and nominal effective exchange rate has positive and significant influence on the import unit value index in two groups of countries.

During the recent years, water deficiency has been lead to innovation of modern techniques for saving water in countries which suffered from the shortage of water supplies. One of the notable concepts in this regards is the concept of virtual water trade in management of water supplies. The concept of virtual water trade is defined synonymously as the sum of the needed water for production of certain quantity of a product. Accordingly, prevention from exportation of products, which may lead to exiting water from the country and emphasis on importation of water-bearing products, is considered as one of the strategies which have been taken by some countries in the management of their own restricted water supplies. This strategy means that the water supplies of countries should be employed for manufacturing of the products, which are followed by further income economically. The present article is an innovation in calculating virtual water values by 6-digit SITC codes for all sectors of the economy in the selected countries (Persian Gulf countries). For each commodity code exported and imported in countries, the amount of virtual water (cubic meters per ton) is also calculated. In this regard, the rate of hidden water in imports and exports of the aforesaid countries during 2001 to 2012 is explored. The results reveal the fact that Iran has not taken any certain defined strategy regarding the management of water supplies by means of virtual water concept.