Search results for: Trade
Brian Sturgess, World Economics, December 2019
The fact that world exports do not match world imports indicates that there are serious problems with official trade statistics.
World Economics, July 2019
The Promise of a Better World
Brian Sturgess, World Economics, June 2019
Over 80% of international trade is financed by some form of credit, but the size of the trade finance market has received little attention by economists. It has been estimated that there is currently a world trade finance gap of around US$1.5 trillion acting as a drag on international trade and GDP growth. Survey-based estimates of traditional trade finance provided by banks at US$4.6 trillion in 2017 are highly inconsistent and are based on flawed data and opaque methodologies. The problem of collecting reliable data needed to promote trade growth and to monitor financial stability is being exacerbated as the trade finance sector is undergoing rapid structural change.
World Economics, May 2019
The author's first job in economic research was the nightmarish task of finding a way of measuring corruption on behalf of a country client in the Middle East.
Brian Sturgess, World Economics, January 2018
The international trade statistics used by many commentators are inaccurate and the way trade is measured is no longer fit for purpose.
Brian Sturgess, World Economics, December 2017
Politicians focus on trade deficits and surpluses between countries and threaten trade wars and retaliatory actions, but the conventional international trade statistics used by many commentators are inaccurate. World exports and imports do not balance, but asymmetries are also found in the balance of trade statistics between countries and regions and these discrepancies can be very large in emerging markets. The ‘Rotterdam effect’ distorts the measurement of trade flows and balances where goods are recorded as imports into one country, which subsequently re-exports them to third countries without taking note of the country of origin. The Apple ‘Made in China’ question, or the existence of global value chains where much trade is in intermediate inputs, indicates that conventional trade statistics involve double-counting and misallocated trade balances.
World Economics, December 2012
There is no summary available for this paper.
Alejandro Jara & Hubert Escaith, World Economics, December 2012
The raise of global production networks since the 1980s changed the way we understand international trade and has profound repercussions on development policies and the conduct of global governance. New comparative advantages allow large developing countries to leap-frog through their industrialization process while smaller economies without large internal market or mining resources are now able to build an industrial base. Offshoring also gave the possibility to firms from industrialised countries to remain competitive in front of fast-expanding firms from emerging countries. But in the process, the relative demand for low and medium skilled workers in industrialised countries contracted, and this employment and income effect became a political issue and fuelled demand for protectionism. Unfortunately, the debate lacks accurate data as traditional statistics give only a blurred picture of what is known as ‘trade in tasks’. Before revising the trade and governance implications, the article calls for a new measurement of international trade based on its value-added content in order to have a better understanding of the actual issues.
William Powers, World Economics, December 2012
As production has become more globally integrated, imported components account for a rising share of the value of exports. Many countries may contribute inputs to a good, and the final assembler may capture only a small share of the product’s value. Official trade statistics, which attribute all value to the final exporter, can be uninformative or misleading about a country’s global engagement and its participation in global supply chains. New measures are required that incorporate both production and trade, and track the flow of inputs, and their value, through industries and across national borders. This paper examines the construction and use of value-added measures that incorporate the necessary production and trade data, and evaluates their performance against similar measures based on gross trade. The value-added measures provide a more revealing look into global integration that is consistent across different measures and analytical approaches.
Peter Reuter & Victoria Greenfield , World Economics, December 2001
The continuing demand for measures of the size of global drug revenues has
produced a supply of numbers that consistently overstate international financial
flows. This paper shows that, rather than $500 billion, the annual figure in trade
terms may be about $25 billion. As with many refined agricultural products, most
of the revenues go to distributors rather than to primary producing countries. The
authors explore the need for estimates of the global drug markets, address the
difficulties of obtaining ‘good’ numbers, and describe opportunities for
developing better estimates of flows and revenues. There are at least three
reasons for caring about the numbers: they can help to improve understanding of
the drug production and consumption problem and identify appropriate policy
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