Since the 1970s, US manufacturing output has risen by 70% but air pollution has fallen by 58%. Was this due to improved abatement technology or shifting dirty production abroad?
Increased net imports of polluting goods account for about 70 percent of the composition-related decline in US manufacturing pollution. The composition effect in turn explains about 40 percent of the overall decline in pollution from US manufacturing. Putting these two findings together, international trade can explain at most 28 percent of the clean-up of US manufacturing.
More here.
Showing posts with label International Trade. Show all posts
Showing posts with label International Trade. Show all posts
Wednesday, January 02, 2008
Tuesday, April 17, 2007
Wisdom of the Day
"How does one then asses the efforts of Treasury Secretary Paulson to ask for financial sector reforms in China?
Frankly, while such reforms are likely to be good for China itself, I do not see our pressures for them as anything other than using our confrontations with China to open the Chinese market more rapidly and deeply to our financial firms on Wall Street: this is good for Wall Street but it is not clear how it will benefit the US in any other Chinese-macroeconomics-related benefit spillovers."
Read more here.
Frankly, while such reforms are likely to be good for China itself, I do not see our pressures for them as anything other than using our confrontations with China to open the Chinese market more rapidly and deeply to our financial firms on Wall Street: this is good for Wall Street but it is not clear how it will benefit the US in any other Chinese-macroeconomics-related benefit spillovers."
Read more here.
Monday, April 16, 2007
Shockingly High Costs of Exchange Control
This is from one of the latest NBER papers:
"This paper investigates the negative effects of exchange controls on trade. To minimize evasion of controls, countries often intensify inspections at the border and increase documentation requirements. Thus, the cost of conducting trade rises.
The paper finds that a one standard-deviation increase in the controls on trade payment has the same negative effect on trade as an increase in tariff by about 14 percentage points. A one standard-deviation increase in the controls on FX transactions reduces trade by the same amount as a rise in tariff by 11 percentage points."
Read more here.
Think about the jobs that would have created if not for the FX control, think about the economic growth that would have gained as a result of higher export if not for the FX control, think about the additional political heat that would have created in the US if not for the FX control...
Mind boggling indeed.
"This paper investigates the negative effects of exchange controls on trade. To minimize evasion of controls, countries often intensify inspections at the border and increase documentation requirements. Thus, the cost of conducting trade rises.
The paper finds that a one standard-deviation increase in the controls on trade payment has the same negative effect on trade as an increase in tariff by about 14 percentage points. A one standard-deviation increase in the controls on FX transactions reduces trade by the same amount as a rise in tariff by 11 percentage points."
Read more here.
Think about the jobs that would have created if not for the FX control, think about the economic growth that would have gained as a result of higher export if not for the FX control, think about the additional political heat that would have created in the US if not for the FX control...
Mind boggling indeed.
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