Aycil Yücer

Trade Performance of Export Processing Zones

Export processing zones (EPZs) have become widespread with the liberalisation of international trade and investment. They are key players in the deepening of the global value chain (GVC). However, little is known about their contribution to world trade due to a lack of information on their location and status. This paper sets out to improve knowledge in this area by analysing the trade performance of EPZ countries at macro-level with a focus on EPZ externalities and distortive costs. We have built an original database of EPZs in which we define them as processing zones benefiting from import tariff incentives. We show that EPZs increase trade only by easing the negative impact of protection. As importers of components and raw materials, they raise the rest of the worlds exports. This confirms the contribution of EPZs to the GVC. This result is robust to a change in the model specification, errors and bias due to data collection issues and sample composition.

Internal and International Vertical Specialization of Brazilian States – An Input-Output Analysis

WTO, OECD with many others, suggest the trade in value-added would be a “better” measure to understand the impact of trade on employment, growth, production etc. when import content in exports is important. We use in this work an Input-Output table for 2008, to calculate the value-added exported by Brazilian states. We distinguish the value-added exported directly by the state itself or indirectly via other states. Then, we define the extent of vertical specialization among Brazilian states by using value-added indirectly exported. We calculate equally the import content in states’ exports. If the share of import content in Brazilian exports is low, we show evidence that inter-state trade is quite high across some Brazilian states. Inter-state vertical specialization then operates at upstream stages of the value chain before the good be exported to foreign countries.

Internal and International Vertical Specialization– Estimations For Brazil and new Approach to Gravity Models

WTO, OECD with many others, suggest the trade in value-added would be a “better” measure to understand the impact of trade on employment, growth, production etc. when import content in exports is important. We use in this work an Input-Output table for 2008, to calculate the value-added exported by Brazilian states. We distinguish the value-added exported directly by the state itself or indirectly via other states. First, by using value-added we define the extent of vertical specialization among Brazilian states. Exported value-added are then used in a gravity model to determine the structure of trade in value-added terms. We also define a trilateral gravity structure which permits to control for the vertical specialization between states and to estimate the trade determinants at three steps: origin state, re-exporter state and importer country.