A cross country analysis of dynamics in comparative advantage and trade patterns in textiles and clothing

This paper examines pattern of comparative advantage in textiles and clothing trade as revealed by export shares of selected developed and developing economies. The estimated revealed comparative advantage (RCA) indices provided strong evidence of comparative advantage enjoyed by the developing economies. However, a few developed high income economies have enjoyed sustainable comparative advantage, especially in textiles trade. Significant negative correlations are observed between country specific income levels and the estimated absolute and relative RCA indices. While most of the developing economies achieved significant improvement of comparative advantage over time in clothing trade, the evidence is mixed for textiles. Additional evidence from Grubel-Lloyd (G-L) index of intra industry trade (IIT) suggest that global textiles trade could be mainly explained on the basis of product differentiation and economies of scale while clothing trade is more based on comparative advantage. Results of the study also suggest that the trading nations should engage in exploitation of forms of competition such as product differentiation in textiles trade, whereas for clothing, cost minimising remains a valid strategy.

Competition and unitization in oil extraction : a tale of two tragedies

This paper compares two organizational modes for extracting oil from a common pool: unitization and competitive extraction. The analysis suggests that the general presumption that unitization is surplus enhancing relative to competitive extraction may not always be valid due to contractual incompleteness associated with unitization contracts. While competitive extraction suffers from the tragedy of the commons, unitization can be subject to the dual tragedy of the anticommons. This provides an explanation for the puzzle confronting the oil industry that firms are often reluctant to voluntarily enter unitization agreements.

Chinese construction industry performance after entry into the world trade organization

The Chinese construction industry has had significant activity in the international market in the last decade following the entry into the World Trade Organization (WTO). However the degree of activity and the sector performance is still relatively uncertain. A review of the literature in this field indicates that there is very little rigor in relation to adoption of quantitative measurement and performance indicators for internationalization, in particular for the measurement of the degree of internationalization specifically related to the international construction sector at both firm and country level. In addition the estimation of the influence and status of a country's construction activity in the international market has not been considered. There are useful indicators that we can borrow and consider from mainstream economics literature, such as, Dunning's Eclectic Paradigm (based on the ownership (0), location (L) and internalization (1) advantages of a firm) and Low et al.'s OLI+S Model (based on the Ownership, Location, Internalization and Specialty). Through an analysis of the attributes of the Chinese construction industry and a discussion on trends for the last decade, this paper proposes to develop a new model by adapting the Dunning model and acknowledging the significance of "Specialty" to measure the degree of internationalization both at the firm and country level. The International Level and Status Index was generated to measure the level and status of a country's construction industry in the international market by adopting the Depth Index (revenue composition), Height Index (top enterprises) and Width Index (fields involved). The key finding is that the degree of internationalization of Chinese construction industry and the status and influence of Chinese construction industry in the international market has not increased quickly. Surprisingly even though China had expectations of high growth after entry to WTO it has in fact declined. Contrarily, both of them declined in the early years after the accession to WTO.

Well-known trade marks, foreign investment and local industry : a comparison of China and Indonesia

Strengthened protection for well-known trade marks in accordance with the TRIPS Agreement is an important issue for developing countries, which has led to trade pressures from industrialised nations in the past. ‘Trade mark squatting’, referring to the registration in bad faith of foreign well-known marks in order to sell them back to their original owners, is a much discussed phenomenon in this context. This article outlines the history and development of well-known trade marks and the applicable law in China and Indonesia. It looks not just at foreign and international brands subjected to ‘trade mark squatting’, but also at how local enterprises are using the system. Rather remarkably in view of the countries’ turbulent histories, local well-known marks have a long history and are well respected for their range of products. They are not normally affected by the ‘trade mark squatting’ phenomenon and are rarely the subject of disputes. Enhanced protection under the TRIPS Agreement is especially relevant for international brands and the article shows the approaches in the two countries. In China, government incentives assist the proliferation of nationally well-known and locally ‘famous’ marks. In Indonesia, lack of implementing legislation has left the matter of recognition to the discretion of the courts.

Recent global trends in the Chinese construction industry and its market

The rapidly increasing construction demand in China, particularly spurred by the coming 2008 Beijing Olympic Games and the 2010 Shanghai Expo, provides challenging opportunities for overseas construction enterprises. Therefore understanding the structure and dynamics of construction industry in China is crucial, particularly the potential changes of the market after the China's entry into the World Trade Organization. This paper analyses the development of construction economics and institutional regulations in the construction market, and provides a comprehensive image on the Chinese construction sector in the global environment.

Tourism, trade and domestic welfare

Tourism has been regarded as a major source of economic growth and a source of foreign exchange. It has also been viewed as an activity that imposes costs on the host country. Such costs include increased pollution, congestion and despoliation of fragile environments, and intra-generational inequity aggravation. One aspect that has been ignored is the general equilibrium effects of tourism on other sectors in the economy. This paper presents a model that captures the interdependence between tourism and the rest of the economy, in particular agriculture and manufacturing. An important result obtained is that the tourist boom may 'immiserize' the residents.

Motivations for developing direct trade relationships

Purpose – This study aims to understand buyer and supplier motives for developing direct relationships with their trade partners.

Design/methodology/approach – A total of 18 in-depth interviews were conducted across Victoria and Tasmania (Australia); eight with retail buyers and ten with fresh produce suppliers. Both parties were involved in a direct relationship with their trade partner.

Findings – The research reveals a large variety of motivations that influence buyers and suppliers when deciding whether to operate in a direct or non-direct relationship with their trade partner. Motivations for both parties are remarkably similar, with buyers and suppliers ultimately attempting to minimise the inherent risk associated with operating in a volatile environment.

Research limitations/implications – The study may be limited by the fact that buyers and suppliers of different commodities were included in the study. In addition, the varied nature of the respondents' role may have impacted their judgment. The inability to interview dyads in all cases also limits the research.

Practical implications – This research has implications for both researchers and practitioners already involved in, or considering becoming involved in, a direct trade relationship. Clarification of motivations for bypassing intermediaries shows how both trade partners can minimise external risk and strengthen competitive advantage by assuming a direct relationship.

Originality/value – Extant research within this literary field is largely quantitatively based with researchers focusing on distinct relationship constructs, the definition of relationship marketing and the process of relationship development. In response to these limitations, this research adopted a qualitative approach in examining the core motivations for developing a direct trade relationship within the fresh produce industry.

Illegal migrants, tourism and welfare : a trade theoretic approach

Many countries receive illegal migrants but are reluctant to accept them due to possible negative externalities. We provide a rationale for not policing illegal migration by linking it to the tourism industry. By paying illegal migrants less than local workers, the relative price of the non-traded goods is shown to be lower than it would be in the absence of such workers. An expansion in tourist trade, under certain intensity conditions, necessarily raises resident welfare and employment. This tourist boom necessarily lowers the welfare of the illegal migrants. It is established that an increase in tourism increases the supply of illegal migrants.

India's pharmaceutical industry: hype or high tech take-off?

India has built a large pharmaceutical industry through an array of measures in support of domestic firms. The absence of product patents enabled Indian companies to become world leading producers of generic versions of patented drugs. Low costs and a strong engineering tradition continue to sustain competitive strength. The implementation of the World Trade Organization patent regime in 2005 is driving a transformation of the industry. Key elements of the present shake-up include the return of 'big pharma' companies on a large scale and the emergence of several Indian firms that aim to become fullyfledged research-based multinationals. This article provides a description of the development and structure of the Indian pharmaceutical industry and explores questions and challenges arising from its integration into global markets.

How Australian industry policy shaped cultural policy

Public policies that aim to facilitate cultural activities to serve effectively as industries are often regarded as a new phenomenon. This article argues that arts and cultural policies in Australia have reflected and complemented Commonwealth industry policy for most of their history. The significant change that has happened in the past twenty years is not so much a change to cultural policy, but rather a change in the notion of industries and their role in the national economy.

Market makers v's the general public : a first look at S & P500 futures trade data

This paper considers 15 minute records of trading volume and traded prices coinciding with the reporting intervals required by the Commodity Futures Trading Commission. Records are extracted from trade records for market trade and also two way trade between market makers (CT1) and the general public (CT4) from January 1994 to June 2004. Futures price records are matched with S&P500 cash index price records. Simultaneous volatility models are specified and estimated to test trading volume to futures volatility lead/lag effects and also futures volatility to cash index volatility lead/lag effects. As we disaggregate from the market records to CT1 and CT4 records and further into year to year samples volume to futures volatility leading effects and also futures volatility to cash volatility leading effects dominate. The results raise important issues for risk management and dynamic hedging models employing intra-day trader data. A number of important issues for further analysis are also raised in this paper.