Book News from WTO Publications, November 2014

The latest issue of Book News from WTO Publications, highlighting recently launched titles and products, is now available.

This installment includes information about the annual package of trade and tariff data, details on recently translated publications, and a link to the new WTO Publications Catalogue.

To learn more about WTO Publications and availability of titles, visit the WTO Publications website or the WTO Bookshop website.

Job Creation and Local Economic Development

Job Creation and Local Economic Development, a publication launched by OECD on 19 November 2014, looks at new evidence on policies to support job creation. Produced as part of the OECD Local Economic and Employment Development (LEED) Programme, the report addresses the question of how national and local policies can be better aligned with local opportunities and challenges, with the goal of creating more and better quality jobs.

The volume in its entirety as well as individual sections and country profiles are accessible for online reading and download from the OECD iLibrary by WTO staff and WTO Library patrons.

A wealth of additional resources are available from the OECD iLibrary on a range of topics, including economics and employment. More information on the LEED Programme can be found at the OECD website.

East African economic growth buoyant and outstripping rest of Africa

Economic growth in the East Africa region in 2014 is expected to have outpaced Sub-Saharan Africa (SSA) as a whole, and is forecast to accelerate over the next five years, according to a new report from the East African Development Bank (EADB).

Full-text available in .pdf

Issues of modern macroeconomics: new post-crisis perspectives on the world economy

Modern macroeconomics has failed in the analysis of both the US banking and the euro crises, respectively, and there is also a rather inadequate view on a range of relevant policy issues. The approach presented herein looks at the reasons for analytical failure and suggests means of improvement – picking up proposals from the literature as well as contributing new ones.

Full-text available in .pdf

Effects of the Mexican Apple Tariff on the World Apple Market

In response to the USA blocking Mexican trucks from traveling to the inland part of the USA, Mexico imposed tariffs on US fresh apple exports. This study analyzes the impacts of the Mexican tariff on USA, Mexican and world apple markets by using theoretical analysis and developing a spatial equilibrium trade model. The results show that this tariff increases apple prices in Mexico, to the benefit of Mexican producers but harming Mexican consumers. Even though Mexico collects revenues from its tariff, the overall welfare impact is negative because consumers’ loss outweighs producers’ gain and tariff revenues. Since the USA exports less to Mexico, its prices and production decline, but consumption increases. To mitigate the export market loss to Mexico, the USA redirects its exports to other importing countries, displacing other apple exporting countries’ trade with these importing countries.

Full-text available in .pdf

FDI and Income Inequality

This paper analyzes whether foreign direct investment (FDI) has contributed to the wide income gaps in Latin America. Panel cointegration techniques as well as regression analysis are performed to assess the impact of inward FDI stocks on income inequality among households in Latin American host countries. The panel cointegration analysis typically reveals a significant and positive effect on income inequality. There is no evidence for reverse causality. The findings are fairly robust to the choice of different estimation methods, sample selection and the period of observation.

Full-text available in .pdf

Export Competition between Landlocked and Coastal Countries

This paper analyzes economic rivalry between two firms using an international Cournot duopoly model, where a firm from a landlocked country (LC) and a firm from a coastal country (CC) compete in a third-country market. It is assumed that the landlocked country firm adopts a transport-cost reducing R&D subsidized by its government, while the CC government imposes a toll fee on the LC firm. The findings show since a change in the LC’s transport-cost reducing R&D subsidy has a positive effect on its export and a negative effect on the CC’s export, both measures have effective strategic export policies.

Full-text available in .pdf