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Free-riding on enforcement in the WTO

Countries can challenge potential trade violations using the WTO's dispute settlement system, yet many policies that appear to violate WTO rules remain unchallenged, even when they have a significant economic impact. Why is this? We argue that the likelihood that a country challenges a protectionist policy is linked to how concentrated or diffuse the policy is. When a policy is…

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/ 26/06/2017

Minimum wages and firm employment: evidence from China

This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that…

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English / 24/02/2017

On the roles of different foreign currencies in European bank lending

We draw on a new data set on the use of Swiss francs and other currencies by European banks to assess the patterns of foreign currency bank lending. We show that the patterns differ sharply across foreign currencies. The Swiss franc is used predominantly for lending to residents, especially households. It is sensitive to the interest rate differential, exchange rate developments,…

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English / 24/02/2017

Global value chains in low and middle income countries

Global Value Chains (GVCs) can provide new means for developing economies to industrialise. To fully seize these opportunities, it is necessary to comprehensively measure both the intensity and type of countries' GVC integration patterns to better understand the relationship between GVCs and development. In this paper, we apply the new R package decompr to recent OECD input-output…

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/ 21/02/2017

Towards an Integrated Database of International Economic Law (IDIEL) disputes for text-as-data analysis

This paper introduces an infrastructure for the analysis of legal metadata and textual data on international investment and trade disputes. The developed database architecture consists of three main components: (1) a WebCrawler of two key web sites for international economic law dispute information; (2) a document analyzer to transform PDFs into text files, identifying structure and…

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/ 21/02/2017

The supplier network of exporters: connecting the dots

Even in export-oriented industries, only a handful of firms ship their goods abroad and these firms are systematically different from their purely domestic counterparts. The current picture does not, however, encompass the many firms that export via trade intermediaries or supply exporters with intermediate inputs. This paper uses a new and unique dataset of yearly transactions…

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/ 21/02/2017

Does the nature of regional trade agreements matter in promoting trade?

Globalization's 'second unbundling' has drastically altered the nature of international trade giving rise to what might be referred to as the trade-investment-service nexus. Today's RTAs are qualitatively different than those signed two decades ago, since they cover disciplines that go beyond preferential market access. This paper investigates whether the nature of RTAs matters when…

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/ 21/02/2017

Issues and tensions in public procurement of 'green innovation': a cross-country study

Public procurement for green innovation refers to tailoring public procurement policies in such a way as to promote green innovation within the wider economy. This study considers the nature of these policies, their legal limits, best practices, and how they have been implemented across a sample of four different OECD countries. The study begins with a general consideration of public…

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/ 21/02/2017

The legitimate regulatory distinction: challenging the boundary between interpretation and law-making in the appellate body

This paper focuses on the nature of the Appellate Body's interpretative method in arriving at its decision to read-in that Article 2.1 of the Agreement on Technical Barriers to Trade (TBT Agreement) will not prohibit a detrimental impact on competitive opportunities for imports in cases where such detrimental impact stems exclusively from a legitimate regulatory distinction.…

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/ 21/02/2017

David & Goliath: how young competition agencies can succeed in fighting cross-border cartels

How can small and young agencies cope and target cross border cartels? This paper explores the related challenges and puts forward a pragmatic tool to break down international cooperation barriers. Given the efforts of the ICN in seeking ways and means to operationalise cross-border cooperation in investigation of cases as well as those of selected UNCTAD member States in trying to…

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/ 21/02/2017

Income tax in the WTO: substantive reach and rivaling proceedings

This paper considers the intersection of income tax and WTO rules. It defends an interpretation of the non-discrimination obligations in line with customary rules of interpretation as stipulated by the Vienna Convention on the Law of Treaties. It, thus, departs from the historic assumption that income taxes are not or only to a very limited extent covered by the GATT. Subsequently,…

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/ 21/02/2017

Legal forms of negotiated trade in services agreement (TISA) outcomes: perspectives on trade integration and an incrementalist approach to quasi-multilateralizationa

The summer 2016 saw some of the key emerging economies change their position on services negotiations at the WTO, which may prove instrumental in bringing services back to the WTO, via The Trade in services Agreement (TiSA). While TiSA parties have discussed critical mass based multilateralization for a while, another approach may prove to be more viable - "incrementalism" and "quasi…

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/ 21/02/2017

When global tax reform meets international trade rules: an inquiry into the intersection of the GATS and the BEPS package

This article explores the intersections between the global tax reform launched by the Organization for Economic Co-operation and Development (OECD) and the Group of 20 (G20) to tackle base erosion and profit shifting (BEPS) on the one hand, and international rules on trade in services, mostly – the General Agreement on Trade in Services (GATS) under the World Trade Organization (WTO…

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/ 21/02/2017

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