Trade-related investment measures : Theory and Applications / Chi-Chur Chao, Deakin University, Australia, Eden S. H. Yu, Chu Hai College of Higher Education, Hong Kong.

Format:

Book

Author/Creator:

Chao, Chi-Chur.

Contributor:

Yu, Eden Siu-hung.

Language:

English

Subjects (All):

Investments, Foreign--China.

Investments, Foreign.

China.

China--Commercial policy.

Commercial policy.

China--Foreign economic relations.

International economic relations.

International trade.

Physical Description:

xxi, 314 pages : illustrations ; 23 cm

Place of Publication:

Hackensack, NJ : Imperial College Press, [2014]

Summary:

This unique book makes a contribution to the deeper understanding of various trade-related investment measures (TRIMs). The issues have been largely inspired by the use of trade policies on foreign investment adopted in China and many other nations from the 1960s to the 1990s. Building upon the existing literature and authors' own work, the 20 chapters in the book examine, using several versions of general-equilibrium frameworks, resource allocation and welfare effects of both trade-related investment measures and investment-related trade/environmental measures Traditional and duality microeconomic tools and modelling techniques have been extensively utilised in analysing various real-world, investment and environmental issues, especially those encountered in developing economies. Policy implications regarding optimal trade investment and environmental policies that emerged from the analyses are also provided. This book is self-contained in applications of trade theories and related general-equilibrium modelling techniques. It may be used as an advanced textbook in trade theory and policy as well as a reference book for policy makers, professional practitoners and academic researchers in designing trade policies. Book jacket.

Contents:

Part 1 On Investment Measures, Trade, and the Environment 1

1 On Investment Measures and Trade 3

1.1 Introduction 3

1.2 TRIMs, Resource Allocation, and Welfare 5

1.3 TRIMs and other Objectives 9

1.4 Joint TRIMs 10

1.5 TRIMs and Other Investment Measures 12

1.6 Concluding Remarks 15

2 International Trade and Distortions: General Equilibrium Models 17

2.1 Introduction 17

2.2 Production Structures of the Economy 17

2.3 A General Equilibrium Trade Model with a Tourism Distortion 28

3 TRIMs, Environmental Taxes, and Foreign Investment 41

3.1 Introduction 41

3.2 The Model 43

3.3 Tariff Restrictions 47

3.4 Quantitative Restrictions 52

3.5 Concluding Remarks 58

Appendix 58

Part II Export-Share Requirements 61

4 Export-Share Requirements and Quota Protection 63

4.1 Introduction 63

4.2 The Model of Export Requirements with Import Quotas 64

4.3 Export Requirements and Welfare 67

4.4 Concluding Remarks 72

Appendix 73

5 Export-Share Requirements, Trade Balances, and Welfare: A Two-Period Analysis 77

5.1 Introduction 77

5.2 The Model 78

5.3 Effects of Export Requirements 82

5.4 ConCluding Remarks 86

Appendix 87

6 Export Requirements, Investment Quotas, and Welfare in a Dynamic Economy 91

6.1 Introduction 91

6.2 The Model 92

6.3 Welfare Effects of Foreign Investment Quotas and Export Requirements 98

6.4 Concluding Remarks 104

Appendix 104

7 The Impact of Export-Share Requirements Under Production Uncertainty 107

7.1 Introduction 107

7.2 The Model 108

7.3 Analysis 112

7.4 Concluding Remarks 122

Part III Content Protection, Equity Controls, and Foreign Investment 125

8 Content Protection, Urban Unemployment, and Welfare 127

8.1 Introduction 127

8.2 A Three-Sector Model 128

8.3 Content Protection and Resource Allocation 132

8.4 Content Protection and Welfare 135

8.5 Concluding Remarks 137

Appendix 138

9 Local Content Requirements, Welfare, and Trade Balance 141

9.1 Introduction 141

9.2 The Model 143

9.3 Effects of Content Protection 147

9.4 Concluding Remarks 151

Appendix 151

10 Wholly Foreign-Owned Enterprises or Joint Ventures 153

10.1 Introduction 153

10.2 The Model 154

10.3 The Resource Allocation and Welfare Effects 157

10.4 Concluding Remarks 163

Appendix 164

11 Domestic Equity Controls of Multinational Enterprises 165

11.1 Introduction 165

11.2 General Equilibrium Analysis of Domestic Equity Controls 166

11.3 The Case of Quotas 168

11.4 The Case of Tariffs 172

11.5 Concluding Remarks 174

Appendix 174

12 Trade Liberlization, Foreign Ownership, and the Environment 177

12.1 Introduction 177

12.2 The Model 179

12.3 Optimal Ownership and Environmental Policies 181

12.4 Concluding Remarks 186

13 Optimal Foreign-Investment and Pollution Taxes 187

13.1 Introduction 187

13.2 A Benchmark Model 189

13.3 Investment Tax Credits and the Optimal Pollution Tax 194

13.4 Concluding Remarks 200

Appendix 201

14 Foreign Capital and the Economy Under Imperfect Competition 203

14.1 Introduction 203

14.2 The General Equilibrium Model with Oligopolistic Competition 205

14.3 Foreign Capital Inflows and Resource Allocation 208

14.4 Foreign Capital Inflows and National Welfare 212

14.5 Concluding Remarks 215

Appendix 215

15 Profit-Sharing and International Capital Mobility 217

15.1 Introduction 217

15.2 The Model 218

15.3 The Short-Run Impacts of Profit-Sharing 221

15.4 The Long-Run Equilibrium and Dynamics 223

15.5 Concluding Remarks 227

Appendix 227

16 Privatization and Foreign Competition in Developing Economics 231

16.1 Introduction 231

16.2 The Model 232

16.3 Wage Inequality 235

16.4 Social Welfare 239

16.5 Concluding Remarks 240

Appendix: Stability 241

17 Domestic Equity Control, Capital Accumulation, and Welfare: Theory and China's Evidence 243

17.1 Introduction 243

17.2 The Model 245

17.3 Empirical Results of Equity Control on China's Output 250

17.4 Concluding Remarks 252

Appendix 253

Part IV Issues of Export Duty Rebates 257

18 Export Duty Rebates and Export Performance: Theory and China's Experience 259

18.1 Introduction 259

18.2 A Theoretical Model 261

18.3 Export Tax Rebates and China's Exports 266

18.4 Concluding Remarks 269

Appendix 270

19 Import Duty Drawback and VAT Rebate Policies: A CGE Analysis for China 273

19.1 Introduction 273

19.2 A Theoretical Model of Tax Rebates 274

19.3 Modeling China's Duty Drawbacks and Tax Rebates in a CGE Framework 280

19.4 Effects of Duty Drawbacks and Tax Rebates: Illustrative Experiments 282

19.5 Concluding Remarks 292

Appendix: Stability 293

20 Summary and Suggestions for Future Research 295

20.1 TRIMs and the Environment 296

20.2 TRIMs and Firm Productivity 296

20.3 TRIMs and Technological Progress 297

20.4 TRIMs and Social Conflict 297

20.5 Other Suggested Topics for Future Research 297.

Notes:

Includes bibliographical references (pages 299-311) and index.

ISBN:

9781783264780

1783264780

OCLC:

880247707