Questions tagged [international-economics]

Use for questions related to international trade, commercial policy, open economy macroeconomics, international finance, and exchange rates. It can also be used in financial and monetary policies, economic development, migration and factor movements, as long as they are specifically related to an international context. Preferably use in conjunction with other, more precise tag.

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30 views

How does a trade deficit affect GDP?

How would an increase in the trade deficit affect GDP? As per the majority of sources I’ve read such as Investopedia, they claim that GDP would decrease due to a decrease in the NX component of the ...
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3answers
67 views

What is the term for the means of conducting international financial transactions?

I'm looking for a term (say "X") that describes a general category of process. Over time, the details of the process or even the process it self changes, but they would all still fall under ...
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11 views

What is a clear example of above-the-line (autonomous) transaction and a below-the-line (accomodating) transaction?

The only thing I could find are vague circular definitions stating that the former leads to a surplus in BoP, when positive---and a deficit, when negative. I understand the BoP always balances, but ...
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1answer
734 views

On what basis do countries repay international loans?

Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
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0answers
39 views

Proof of Factor Price Equalization

Assumptions: 2 nations - 1 and 2 2 goods X and Y where X is labour intensive and Y is capital intensive Perfect competition across commodities market same technology in both nations both face ...
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0answers
10 views

When we should use SIC2 and SIC3 in fixed effect?

SIC is the industry classification. The definition of SIC from Bigelli, 2006 is Due to the low numbers of firms in some industries, we use the most detailed industry (SIC4) only if the number of ...
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0answers
18 views

How leniency laws are ineffective in destabilizing cartels in Dong(2019)

In a paper, Dong, 2019 mentioned that leniency laws can destabilize the cartel or induce the formation of new cartels. Their argument is as below - Leniency destabilize the cartels On the one hand, ...
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0answers
7 views

Balance of payment-current account deficit needs capital&financial account surplus

I am searching for the reason why does current account deficits requires a capital&financial account surplus and all that I've found out is something like, If US import much more goods and ...
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2answers
108 views

Why do oil-rich countries need expats?

In particular, why did/do the smaller states in the GCC need expats in their country? Ignoring the history of the country prior to oil discovery (which can be approximated for many of the smaller GCC ...
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0answers
25 views

Lectures notes on international trade

do you have any lecture notes covering the theories of international trade (Ricardian models, HOS, Melitz...)? I have a master in quantitative econ so I'd be happy to have both basic references and ...
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2answers
32 views

How can I add distance variable to panel data?

I'm working on a gravity model with a panel data. However, the distance variable for this model is a time-fixed effect so it doesn't seem possible to run the model with it. What can I do to add this ...
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0answers
12 views

complete market in a two country context, continuous time

In a standard two country macro context (think Obstfeld-Rogoff), there is the unit root problem which prevents local analysis around the steady state. One way to get around this is to assume complete ...
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1answer
17 views

How to classify the developed and emerging market worldwide?

I am doing a cross-country research where different countries implement anti-corruption at the different year. I want to examine the impact of the laws in each set of countries (developed and ...
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1answer
22 views

How is the United States net foreign wealth affected by a depreciation of the US Dollar?

My thought here is that if the dollar were to depreciate, then the value of US liabilities would decrease while the value of their assets would increase. Moreover, the US trade balance would become ...
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3answers
1k views

Is climate change an economic question?

The assumption that the Keeling Curve can be approximated with a function $$k=A+B\cdot e^{\alpha t}$$ leads to a solution with $A=258.6$, $B=4,243\cdot 10^{-13}$ and $\alpha=0.0166$ with a high ...
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0answers
7 views

National Production/Consumption Data

I've found https://comtrade.un.org/ for country-to-country product import/export data. Is there an equivalent data set for self-consumption, ideally harmonized with the UN's H6 classification system? ...
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0answers
21 views

Why emerging stock markets are where investors diversify and hedge against the country-specific uncertainty of their local stock markets?

Civilize, 2015 states that Our study focuses on emerging stock markets of countries that have a history of military rule. An investigation of these markets is valuable for investors, particularly ...
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4answers
130 views

How do non-US governments raise dollars?

I want to understand how non-US governments earn dollars. I tried googling for it but there seems to be no information on the internet. Your help is much appreciated. I am looking for methods that don'...
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0answers
28 views

Asking for some research and application of Gini index in academic researches?

I am reading Gini index, which is a measure of the distribution of income across a population. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, ...
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0answers
30 views

Where to update the data regarding "total criminal antitrust" fines globally in $US and days?

Dasgupta, 2019 have the data for Total criminal antitrust fines from 1990 up to 2012 Total criminal antitrust fines increased from $107 million in 2003 to $1.1 billion in 2012, and total prison ...
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0answers
34 views

Definition of Gini coefficient

I am reading the definition of Gini coefficient. The Gini coefficient is a single number that demonstrates a degree of inequality in a distribution of income/wealth. It is used to estimate how far a ...
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0answers
11 views

Why we need to control for import and exchange rate change when examining asset growth?

Dasgupta , 2019 examines the impact of antitrust laws on asset growth, total net external financing, debt-to-equity ratio. In his regression, I saw that he controls for imports as a percentage of GDP, ...
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1answer
118 views

Asking for paper or data source mentioning the social restriction due to COVID-19 globally

Regarding COVID-19 response, we have the stringency index. But I am wondering is there any source that documented the first law implementation date or month regarding society restriction (social ...
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1answer
127 views

Asking for some geopolitical variables suggestion

Normally, we control for geography variables in some economic studies. However, in the study examining how well the government implements the laws and orders, my advisor told me that we can think of ...
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3answers
848 views

What should we do if the subsample have the opposite results to the general results?

In my replication study, I examine whether a law (a law implemented staggered by different countries) has an impact on firms' cash equivalents. The result turning out for the whole sample is that the ...
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0answers
13 views

Replacing country-pairs value with if condition

for my Master thesis, I am working with Stata and I am trying to replace countries-pair values equal to the values of other countries-pairs. I start presenting my data: regulatory distance is a ...
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1answer
73 views

How to classify sample by time-variant index?

In finance paper, we have a famous index representing for law is WGI (World Governance Index). I am wondering how we classify countries by this time-variant index as this paper below. It is easy to ...
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0answers
29 views

References for regional classification

I read an international study, Table 2 and see that the author did regions*year fixed effect. I am looking for some reference to classify 64 coutries in their paper to different region. I found a link ...
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0answers
118 views

A doubt on summary statistic of post*treat variable of a paper using DID (Dong,2019)

Generalized DID or Staggered DID are DID using staggered treatment events. In Dong,2019's paper, he uses the framework as below: $Margin_{ikjt}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ + $\delta$$...
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1answer
288 views

What shoud we do when the expected treatment overlaps control sample in DID?

In a generalized Difference-in-Differences in Dasgupta,2019 paper, he documented that control countries did not have a leniency law introduced over 2 years before to 5 years after the introduction of ...
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0answers
33 views

Can anyone explain why the Swiss balance of payments is not balanced (real data)?

While doing a little research I went to the Swiss National Bank's website and downloaded their data on the Swiss balance of payments. The data is here: https://data.snb.ch/en/topics/aube#!/cube/...
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1answer
120 views

Why we need to control for the interation of year and industry fixed effects?

Normally, we control for firm and year fixed effects, but in some case I saw people control for the firm along with yearxindustry or firm and yearxregion fixed effects. Could you please hint me why ...
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1answer
60 views

Is there any confliction in dataset and sample period description here?

Dasgupta,2019, p.2598 documented that they consider all nonfinancial firms in Worldscope, Compustat Global, and Compustat North America data sets from 1990 to 2012 However, they used the [-2;+5] ...
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2answers
240 views

How to justify the treatment and control groups for Difference-In-Difference with staggered implementation of laws?

A. Background: Dong, 2019 and Dasgupta, 2019 used the same way to generate the treatment and control groups because they all learn about the impact of the same laws on different dependent variables. I ...
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1answer
40 views

What are the justification of using 1990 or 2010 as benchmark in studies?

Normally, many international studies and documents using multiple-of-10 years (for example 1990, 2010) as the benchmark year. For example: Dong,2019, p.899 used 1990 as the benchmark to calculate the ...
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0answers
27 views

Relationship between stock market and exchange rate

I am looking for some references on the relationship between the stock market and the exchange rate, both from the empirical and theorical side. Is there any theory which suggests a relationship ...
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0answers
59 views

Is Reinhart and Rogoff mistake also present in similar 'minded' studies?

In Reinhart and Rogoff (2010), the authors purported to have found empirical evidence that going over the 90% of public debt threshold was harmful for the country. However, in 2013 (I think), after ...
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0answers
29 views

Shifts in IS in a fixed exchange rate mechanism

First, we assume we are in a fixed exchange rate mechanism. In this system, I deduce that the expected exchange rate would be fixed, at the market rate. In a floating system, with open capital markets,...
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0answers
37 views

non strategic sovereign default

Much of the sovereign default literature (e.g., Arellano (2008), Bulow and Rogoff (1989)), considers that sovereign default is strategic: i.e., defaults occurs if the current benefits outweigh ...
2
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1answer
628 views

What are the differences between "Crawling peg" and "Crawl-like arrangement"?

The IMF AREAER 2019 classifies 3 countries as "crawling" and 18 as "crawl-like". It's not clear to me though how these classifications were made and why they couldn't be switched ...
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0answers
21 views

Does IMF consider the international reputation of a country?

Hi I have three question below which I tried searching on internet and read a lot of literature as well. Besides all the literature sources I need to know some practical knowledge of people out there. ...
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0answers
22 views

What would happen to Eurozone and EU if Italy defaults on its debt?

Question What would happen to Eurozone and EU if Italy defaults on its debt? Background & disclaimer This direct question is an attempt to amend the more expanded question. Given that this ...
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1answer
37 views

What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings [duplicate]

What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings by investing in overseas assets and why? May please help with this question ...
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1answer
20 views

Price convergence in international markets?

Why do prices tend to converge towards the pre-trade prices of the larger country when two countries trade based on comparative advantage?
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1answer
565 views

What is the difference between the international Fisher effect and uncovered interest rate parity?

References: https://en.wikipedia.org/wiki/International_Fisher_effect https://en.wikipedia.org/wiki/Interest_rate_parity#Uncovered_interest_rate_parity As far as I can tell, these two are the same. ...
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0answers
41 views

graph of dependent variable after years of restructuring in panel data

i'm not very able to use stata. For my thesis, I have a panel data(1970-2017) for different countries and a lot of variables. In this dataset, there is a dummy (dhairendH) that is equal to one in the ...
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0answers
23 views

unit iso-quant curve and unit iso-value line

This question is about international trade theory. For the labor L and capital K, I know the theory of iso-quant and iso-cost. The price will be determined where iso-cost line touches iso-quant curve. ...
2
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1answer
56 views

Understanding IMF statistics

I teach Politics and I've been asked to prepare a course which includes a lot of financial data because it covers recent international financial crises. I've been trying to use IMF statistics, but I ...
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1answer
66 views

What does it mean, 'Higher interest rates attract FIIs and FPIs'?

What would interest rates have anything to do with shares? When we say a higher interest rate attracts FII/FPI, does it not mean it is investing in shares of a company? For example, how does it help a ...
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1answer
47 views

Monopsony theory of Single Payer

One theory of how single payer/universal healthcare systems are less expensive than the US private insurance market is that each country functions as a monopsony: a market structure in which a single ...