This paper uses a heterogeneous …rms model to scrutinize Fair Trade’s aim to help the most disadvantaged producers in developing countries. Incorporating important aspects of Fair Trade in a two-good heterogeneous …rm model we show that only the most productive …rms will join Fair Trade arrangements. Higher required production standards and entry costs make Fair Trade not viable for low-product...

This paper examines the fundamental design trade-oos which apply to all linear ltering problems. These trade-oos express the inescapable sensitivity of all linear lters to disturbances of various sources. The constraints allow one to determine, a priori, whether or not a desired level of lter performance is attainable and how diierent arrangements of the measurement system are related to achiev...

In this edition of Current Issues, we touch on a number of these issues as we explore the impact of Mercosur on the trade patterns and growth of the participating countries. Although we make no claims as to the net effects of the customs union on national welfare, we do cite some persuasive evidence that Mercosur has shifted trade in many manufactured goods to higher cost member countries. In a...

This study employs a new methodological approach that measures production efficiency in changing trade patterns. It shows that the most rapidly growing products in Mercosur’s intratrade generally are goods in which members do not have a comparative advantage and have not been able to export competitively to outside markets. This is consistent with substantial trade diversion within the arrangem...

We construct a random matching model to study the effects of clearing arrangements for private money on the prices at which private monies trade, the volume of exchange, and welfare. In a model with full information, clearing arrangements eliminate discounts on private monies issued in other locations, the volume of exchange increases, and welfare increases. However, with private information ab...

Abstract The Common Market for Eastern and Southern Africa (COMESA) is a Free Trade Area (FTA) regional trade agreement in Africa. Currently, Ethiopia negotiating to join COMESA FTA. This study assesses the impact of three arrangements, FTA, customs unions, European Partnership Agreement (EPA) on economy Ethiopia. analysis based static Global Analysis Project (GTAP) model, version 9 database. U...

Gravity models have been extensively used to evaluate the trade effects of regional trading arrangements, (RTAs), especially over the last 10 years or so. Questions addressed by researchers include, is there a regional bias to trade and are there identifiable trade affects attributable to RTAs? This paper reviews the evidence extant from this literature and evaluates the modelling and methodolo...

Abstract Trade issues lie at the heart of two biggest constitutional challenges UK has faced in decades: Brexit and Scottish independence. demonstrated economic importance borders led to renewed calls for While there are a range possible trading arrangements an independent Scotland could pursue, all them involve economically significant change. In this paper, we describe trade patterns review o...

Transposition of the EU information and consultation Directive means that the UK now has, for the first time, a general statutory framework giving employees the right to be informed and consulted by their employers on a range of key business, employment and restructuring issues. A central aspect of the government’s legislative strategy has been to maximise organisations’ flexibility of response...