Helena Marques | Universitat de les Illes Balears (original) (raw)
Papers by Helena Marques
Discussion Paper Series, Apr 1, 2004
This paper analyses the impact of India's policy reforms on exchange rate pass-through into impor... more This paper analyses the impact of India's policy reforms on exchange rate pass-through into import and export prices, using panel data (at 1-digit SITC level) for pre -(1980-90) and post-reform (1991-2001) periods. Whilst the pass-through into import prices has declined, the pass-through into export prices (in USD terms) has increased during the 1990s. The results suggest that Indian exporters increased their USD prices around 20% in the 1980s, but decreased them by around 70% in the 1990s. Moreover, the sectors exhibiting some degree of pass-through increased in the 1990s (six), relative to the 1980s (three).These changes may be attributable to the elimination of currency and trade controls, which increased competition among firms and fostered a concern with market share gains in the 1990s over an attempt to use depreciations to increase profits in the 1980s. JEL Classification No: F13, F14, F31, F41
This paper studies the pricing to market (PTM) behaviour of Indian exporters during the economic ... more This paper studies the pricing to market (PTM) behaviour of Indian exporters during the economic reforms period (1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005). A PTM model has been estimated using panel data at the four-digit level of classification for the G3 and three emerging markets (Brazil, China and South Africa), distinguishing also homogeneous from differentiated goods. Overall, we observe that there is clear evidence of incomplete exchange rate passthrough (ERPT) to buyers' currency prices. This degree of ERPT is net of changes in the level of protection faced by India's exporters (import tariffs in destination markets), inflation and openness in the export destination market, a macroeconomic policy index partly reflecting changes in exporter's costs, the share of the exporter in the destination market and the share of the product in the exporter's total exports. The empirical results indicate that Indian firms do practice PTM and absorb exchange rate changes into their mark-up in G3 markets, partly owing to tougher competition, but they fully pass-through the exchange rate changes in emerging markets. On the contrary, Indian exporters seem to be taking advantage of trade liberalisation in destination markets by marginally increasing the exporter currency prices into emerging markets but not into the G3. We also find a similar impact of trade liberalisation in the case of differentiated goods.
Discussion Paper Series, 2004
This study estimates a quadratic sectoral wage equation for the member countries of the enlarged ... more This study estimates a quadratic sectoral wage equation for the member countries of the enlarged EU where wages are a function of each country's geographical location with respect to market size (new trade/New Economic Geography (NEG) effect), human capital ...
Using only transition period data, this paper analyses revealed comparative advantages (RCAs) and... more Using only transition period data, this paper analyses revealed comparative advantages (RCAs) and specialisations to identify the 3-digit SITC (Standard International Trade Classification) sectors in which the EU�s trade liberalisation with Eastern European applicants may represent opportunities or competition between them and EU South. First, during the transition period potential competition occurs in labour-intensive sectors. Over one-third of Eastern European
SSRN Electronic Journal, 2000
... Investment in the Central and Eastern European Countries Using Multilevel Data Abstract ... c... more ... Investment in the Central and Eastern European Countries Using Multilevel Data Abstract ... cannotexplain the location choices and they have to be combined with other factors. The ... intensive sectors and to be more sensitive to market size and efficiency considerations, ...
SSRN Electronic Journal, 2000
This paper applies the concept of trade creation and diversion to immigration into the EU-15 in t... more This paper applies the concept of trade creation and diversion to immigration into the EU-15 in the 1980s and 1990s. In particular, the 1990s process of East-West integration, culminating in the May 2004 enlargement, could potentially create immigration from the new member countries and at the same time divert migration from non-EU countries. In this context, the question this paper tries to answer is fundamentally whether the extension of the EU Single Market to the new member countries has the potential to crowd-out non-EU immigrants. The analysis is carried out using trend analysis, Truman shares, and panel data gravity models. The results are quite robust to a range of regression methods, model specifications, dependent variables, and time periods. They broadly support the migration creation hypothesis, but the evidence on the migration diversion hypothesis is mixed. There is evidence of some diversion away from other non-member European countries, such as ex-USSR and ex-Yugoslavia countries, in favour of the new Central and Eastern European members. However, the evidence of diversion away from non-European countries is much weaker, if at all existent. The high impact of a common language, when compared to distance or even a common border, may help preserving migration channels from outside Europe. Within Europe, shorter distances and common borders become more relevant.
Desde el trabajo pionero de Alfred Marshall (1890) numerosos estudios han evidenciado las ventaja... more Desde el trabajo pionero de Alfred Marshall (1890) numerosos estudios han evidenciado las ventajas competitivas que las empresas registraban por estar aglomeradas geográficamente junto a otras de su mismo sector de actividad en unos territorios que se han denominado genéricamente como clusters. Entre esos estudios destacan las aportaciones de y . En línea con esa literatura, en este estudio definimos un cluster industrial como un importante número de empresas manufactureras, en su mayoría pymes, próximas geográficamente, interconectadas productivamente y vinculadas por aspectos comunes y complementarios al territorio (Hervás-Oliver y Albors-Garrigos, 2009).
Transition Studies Review, 2010
This paper shows that the establishment of market access to the new EU member countries can favou... more This paper shows that the establishment of market access to the new EU member countries can favour manufacturing wages in larger EU members, but not in smaller ones, although within the latter some sectors may have gains. Hence the impact of market access is country and sector-specific. The variation in country size, as measured by GDP, is highly correlated with the variation in the impact of market access to the new EU member countries on manufacturing wages.
Tourism Economics, 2006
... 155 The demarcated wine-producing regions of northern Portugal ... Fernández-Méndez, M., and ... more ... 155 The demarcated wine-producing regions of northern Portugal ... Fernández-Méndez, M., and Puig-Martínez, A. (2002), 'El papel del cooperativismo en el turismo rural de la Comunidad Valenciana', Revista de Economia Publica, Social y Cooperativa, No 41, pp 183212. ...
The Journal of International Trade & Economic Development, 2011
This article estimates gravity models for both directions of trade between the EU-15 and the NMS-... more This article estimates gravity models for both directions of trade between the EU-15 and the NMS-10. The two groups form a heterogeneous integrated area (EU-27) with respect to country size, income levels, relative factor endowments and a different history of economic systems. The estimation was conducted on industries with different degrees of scale economies and factor intensities in the presence of both spatial (distance and borders) and non-spatial (Eastern enlargements and Euro membership) trade costs. The results highlight the asymmetry in intra-bloc trade when the latter is heterogeneous: country size, income, factor endowments and the various trade barriers or facilitators are found to be significant determinants of trade between old and new EU members to an extent that is specific to different country and industry groups. The results also show how this heterogeneity eliminates the equivalence between exports and imports as the dependent variable in gravity models and makes the results sensitive to the definition of the bilateral flows to be estimated.
staragon.com
This paper empirically analyses the export pricing behaviour of Chinese and Indian exporters when... more This paper empirically analyses the export pricing behaviour of Chinese and Indian exporters when there is selection into exporting. Previous pass-through estimates that did not take selection into account are biased if selection into exporting is correlated with ...
Scottish Journal of Political Economy, 2006
This paper analyses the impact of India's policy reforms on exchange rate passthrough into import... more This paper analyses the impact of India's policy reforms on exchange rate passthrough into import and export prices, using panel data (at one-digit SITC level) for pre- (1980-90) and post-reform (1991-2001) periods. While the pass-through into import prices has declined, the pass-through into export prices (in USD terms) has increased during the 1990s. The results suggest that, relative to rupee depreciation, Indian exporters increased their USD prices around 20% in the 1980s, but decreased them by around 70% in the 1990s. Moreover, the number of sectors exhibiting some degree of pass-through increased in the 1990s (six), relative to the 1980s (three). These changes may be attributable to the elimination of currency and trade controls, which increased competition among firms and fostered a concern with market share gains in the 1990s over an attempt to use depreciations to increase profits in the 1980s.
Review of International Economics, 2008
This paper examines the extent of passthrough of exchange rate and tariff changes into import pri... more This paper examines the extent of passthrough of exchange rate and tariff changes into import prices using sectoral panel data (at the two-digit SITC level) for the post-reform period in India (1990India ( -2001. After having controlled for unobserved effects that might have an impact on the import prices by using sector dummies, we find that on average exchange rate passthrough (ERPT) is a dominant effect compared to tariff rate passthrough (TRPT) in explaining changes in India's import prices. The sectoral panel results suggest that the passthrough of exchange rates and tariff rates varies across products. ERPT into import prices is significant in 12 industries, whereas TRPT is significant only in six industries, with full passthrough. However, ERPT is incomplete only in four industries, but TRPT is incomplete in 36 industries, which means that firms exporting to India more frequently adopt strategies to maintain their market share against tariffs than against exchange rate changes.The sectoral differences in passthrough seem to be related to the sector's share in total imports and the sector's effective protection rate. Hence, India's relatively high levels of protection have an impact on the behavior of foreign exporters.
Journal of International Money and Finance, 2012
This paper studies the links between pricing to market (PTM), trade liberalization and developmen... more This paper studies the links between pricing to market (PTM), trade liberalization and development using data for India's exports (at the 4-digit level of classification) during the economic reforms period (1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005). We estimate a PTM model for exports to the G3 and three other emerging markets (Brazil, China and South Africa), distinguishing homogeneous from differentiated goods and correcting for changes in the level of protection faced by India's exporters (import tariffs in destination markets), inflation and openness in the export destination market, a macroeconomic policy index partly reflecting changes in exporter's costs, the share of the exporter in the destination market and the share of the product in the exporter's total exports. We find that market heterogeneity changes the level of PTM, but PTM does not significantly differ between homogeneous and differentiated products. Indian exporters practice PTM by absorbing exchange rate changes into their mark-up in G3 markets, where they face tougher competition, but fully pass-through exchange rate changes in emerging markets. On the contrary, Indian exporters seem to be taking advantage of trade liberalisation in destination markets by marginally increasing exporter currency prices into emerging markets but not into the G3. However, in the case of differentiated goods, we find this effect of trade liberalisation for both G3 and emerging markets.
Journal of Economic Surveys, 2008
This paper reviews the neoclassical and new economic geography (NEG) theoretical frameworks used ... more This paper reviews the neoclassical and new economic geography (NEG) theoretical frameworks used to analyse the effects of integration on trade and factor flows, and the empirical work carried out within those theoretical frameworks for the European case. The European Union (EU) is of particular interest because it is illustrative of the tensions between deepening of the integration process and widening membership: whereas deepening requires homogeneity, widening has made the EU increasingly diverse. The orthodox framework saw trade and factor flows as substitutes, thus separating their analysis, and was mainly concerned with efficiency issues of trade integration. The NEG framework saw trade and factor flows as complements, and analysed them jointly, looking mainly at distribution issues such as disparities in industry location and wages arising from a single market for goods and factors. The main lesson for the Eastern enlargement(s) is that integration in its various forms leads to an uneven distribution of gains across member countries when these have very diverse economic structures.
JCMS: Journal of Common Market Studies, 2010
This article applies the concepts of trade creation and trade diversion to immigration into the E... more This article applies the concepts of trade creation and trade diversion to immigration into the EU-15 in order to investigate whether during 1986-2006 there were any significant preference effects in favour of the CEECs (central and eastern European countries) that make them 'natural' members of the EU single market for labour. If this hypothesis is true, there should have been strong migration creation but little migration diversion in the last 20 years. The results broadly support migration creation for the CEECs prior to their EU membership. At the same time, the evidence of diversion away from other world regions is mixed. The combined impact of a common language and established communities, compared to distance and a common border, may contribute to the preservation of migration channels from outside Europe. Within Europe, to be an EU outsider can have a negative impact on migration channels. Moreover, whilst liberal immigration policies increase immigration contemporaneously, restrictive immigration policies only show an impact with a two-year lag.
Discussion Paper Series, Apr 1, 2004
This paper analyses the impact of India's policy reforms on exchange rate pass-through into impor... more This paper analyses the impact of India's policy reforms on exchange rate pass-through into import and export prices, using panel data (at 1-digit SITC level) for pre -(1980-90) and post-reform (1991-2001) periods. Whilst the pass-through into import prices has declined, the pass-through into export prices (in USD terms) has increased during the 1990s. The results suggest that Indian exporters increased their USD prices around 20% in the 1980s, but decreased them by around 70% in the 1990s. Moreover, the sectors exhibiting some degree of pass-through increased in the 1990s (six), relative to the 1980s (three).These changes may be attributable to the elimination of currency and trade controls, which increased competition among firms and fostered a concern with market share gains in the 1990s over an attempt to use depreciations to increase profits in the 1980s. JEL Classification No: F13, F14, F31, F41
This paper studies the pricing to market (PTM) behaviour of Indian exporters during the economic ... more This paper studies the pricing to market (PTM) behaviour of Indian exporters during the economic reforms period (1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005). A PTM model has been estimated using panel data at the four-digit level of classification for the G3 and three emerging markets (Brazil, China and South Africa), distinguishing also homogeneous from differentiated goods. Overall, we observe that there is clear evidence of incomplete exchange rate passthrough (ERPT) to buyers' currency prices. This degree of ERPT is net of changes in the level of protection faced by India's exporters (import tariffs in destination markets), inflation and openness in the export destination market, a macroeconomic policy index partly reflecting changes in exporter's costs, the share of the exporter in the destination market and the share of the product in the exporter's total exports. The empirical results indicate that Indian firms do practice PTM and absorb exchange rate changes into their mark-up in G3 markets, partly owing to tougher competition, but they fully pass-through the exchange rate changes in emerging markets. On the contrary, Indian exporters seem to be taking advantage of trade liberalisation in destination markets by marginally increasing the exporter currency prices into emerging markets but not into the G3. We also find a similar impact of trade liberalisation in the case of differentiated goods.
Discussion Paper Series, 2004
This study estimates a quadratic sectoral wage equation for the member countries of the enlarged ... more This study estimates a quadratic sectoral wage equation for the member countries of the enlarged EU where wages are a function of each country's geographical location with respect to market size (new trade/New Economic Geography (NEG) effect), human capital ...
Using only transition period data, this paper analyses revealed comparative advantages (RCAs) and... more Using only transition period data, this paper analyses revealed comparative advantages (RCAs) and specialisations to identify the 3-digit SITC (Standard International Trade Classification) sectors in which the EU�s trade liberalisation with Eastern European applicants may represent opportunities or competition between them and EU South. First, during the transition period potential competition occurs in labour-intensive sectors. Over one-third of Eastern European
SSRN Electronic Journal, 2000
... Investment in the Central and Eastern European Countries Using Multilevel Data Abstract ... c... more ... Investment in the Central and Eastern European Countries Using Multilevel Data Abstract ... cannotexplain the location choices and they have to be combined with other factors. The ... intensive sectors and to be more sensitive to market size and efficiency considerations, ...
SSRN Electronic Journal, 2000
This paper applies the concept of trade creation and diversion to immigration into the EU-15 in t... more This paper applies the concept of trade creation and diversion to immigration into the EU-15 in the 1980s and 1990s. In particular, the 1990s process of East-West integration, culminating in the May 2004 enlargement, could potentially create immigration from the new member countries and at the same time divert migration from non-EU countries. In this context, the question this paper tries to answer is fundamentally whether the extension of the EU Single Market to the new member countries has the potential to crowd-out non-EU immigrants. The analysis is carried out using trend analysis, Truman shares, and panel data gravity models. The results are quite robust to a range of regression methods, model specifications, dependent variables, and time periods. They broadly support the migration creation hypothesis, but the evidence on the migration diversion hypothesis is mixed. There is evidence of some diversion away from other non-member European countries, such as ex-USSR and ex-Yugoslavia countries, in favour of the new Central and Eastern European members. However, the evidence of diversion away from non-European countries is much weaker, if at all existent. The high impact of a common language, when compared to distance or even a common border, may help preserving migration channels from outside Europe. Within Europe, shorter distances and common borders become more relevant.
Desde el trabajo pionero de Alfred Marshall (1890) numerosos estudios han evidenciado las ventaja... more Desde el trabajo pionero de Alfred Marshall (1890) numerosos estudios han evidenciado las ventajas competitivas que las empresas registraban por estar aglomeradas geográficamente junto a otras de su mismo sector de actividad en unos territorios que se han denominado genéricamente como clusters. Entre esos estudios destacan las aportaciones de y . En línea con esa literatura, en este estudio definimos un cluster industrial como un importante número de empresas manufactureras, en su mayoría pymes, próximas geográficamente, interconectadas productivamente y vinculadas por aspectos comunes y complementarios al territorio (Hervás-Oliver y Albors-Garrigos, 2009).
Transition Studies Review, 2010
This paper shows that the establishment of market access to the new EU member countries can favou... more This paper shows that the establishment of market access to the new EU member countries can favour manufacturing wages in larger EU members, but not in smaller ones, although within the latter some sectors may have gains. Hence the impact of market access is country and sector-specific. The variation in country size, as measured by GDP, is highly correlated with the variation in the impact of market access to the new EU member countries on manufacturing wages.
Tourism Economics, 2006
... 155 The demarcated wine-producing regions of northern Portugal ... Fernández-Méndez, M., and ... more ... 155 The demarcated wine-producing regions of northern Portugal ... Fernández-Méndez, M., and Puig-Martínez, A. (2002), 'El papel del cooperativismo en el turismo rural de la Comunidad Valenciana', Revista de Economia Publica, Social y Cooperativa, No 41, pp 183212. ...
The Journal of International Trade & Economic Development, 2011
This article estimates gravity models for both directions of trade between the EU-15 and the NMS-... more This article estimates gravity models for both directions of trade between the EU-15 and the NMS-10. The two groups form a heterogeneous integrated area (EU-27) with respect to country size, income levels, relative factor endowments and a different history of economic systems. The estimation was conducted on industries with different degrees of scale economies and factor intensities in the presence of both spatial (distance and borders) and non-spatial (Eastern enlargements and Euro membership) trade costs. The results highlight the asymmetry in intra-bloc trade when the latter is heterogeneous: country size, income, factor endowments and the various trade barriers or facilitators are found to be significant determinants of trade between old and new EU members to an extent that is specific to different country and industry groups. The results also show how this heterogeneity eliminates the equivalence between exports and imports as the dependent variable in gravity models and makes the results sensitive to the definition of the bilateral flows to be estimated.
staragon.com
This paper empirically analyses the export pricing behaviour of Chinese and Indian exporters when... more This paper empirically analyses the export pricing behaviour of Chinese and Indian exporters when there is selection into exporting. Previous pass-through estimates that did not take selection into account are biased if selection into exporting is correlated with ...
Scottish Journal of Political Economy, 2006
This paper analyses the impact of India's policy reforms on exchange rate passthrough into import... more This paper analyses the impact of India's policy reforms on exchange rate passthrough into import and export prices, using panel data (at one-digit SITC level) for pre- (1980-90) and post-reform (1991-2001) periods. While the pass-through into import prices has declined, the pass-through into export prices (in USD terms) has increased during the 1990s. The results suggest that, relative to rupee depreciation, Indian exporters increased their USD prices around 20% in the 1980s, but decreased them by around 70% in the 1990s. Moreover, the number of sectors exhibiting some degree of pass-through increased in the 1990s (six), relative to the 1980s (three). These changes may be attributable to the elimination of currency and trade controls, which increased competition among firms and fostered a concern with market share gains in the 1990s over an attempt to use depreciations to increase profits in the 1980s.
Review of International Economics, 2008
This paper examines the extent of passthrough of exchange rate and tariff changes into import pri... more This paper examines the extent of passthrough of exchange rate and tariff changes into import prices using sectoral panel data (at the two-digit SITC level) for the post-reform period in India (1990India ( -2001. After having controlled for unobserved effects that might have an impact on the import prices by using sector dummies, we find that on average exchange rate passthrough (ERPT) is a dominant effect compared to tariff rate passthrough (TRPT) in explaining changes in India's import prices. The sectoral panel results suggest that the passthrough of exchange rates and tariff rates varies across products. ERPT into import prices is significant in 12 industries, whereas TRPT is significant only in six industries, with full passthrough. However, ERPT is incomplete only in four industries, but TRPT is incomplete in 36 industries, which means that firms exporting to India more frequently adopt strategies to maintain their market share against tariffs than against exchange rate changes.The sectoral differences in passthrough seem to be related to the sector's share in total imports and the sector's effective protection rate. Hence, India's relatively high levels of protection have an impact on the behavior of foreign exporters.
Journal of International Money and Finance, 2012
This paper studies the links between pricing to market (PTM), trade liberalization and developmen... more This paper studies the links between pricing to market (PTM), trade liberalization and development using data for India's exports (at the 4-digit level of classification) during the economic reforms period (1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005). We estimate a PTM model for exports to the G3 and three other emerging markets (Brazil, China and South Africa), distinguishing homogeneous from differentiated goods and correcting for changes in the level of protection faced by India's exporters (import tariffs in destination markets), inflation and openness in the export destination market, a macroeconomic policy index partly reflecting changes in exporter's costs, the share of the exporter in the destination market and the share of the product in the exporter's total exports. We find that market heterogeneity changes the level of PTM, but PTM does not significantly differ between homogeneous and differentiated products. Indian exporters practice PTM by absorbing exchange rate changes into their mark-up in G3 markets, where they face tougher competition, but fully pass-through exchange rate changes in emerging markets. On the contrary, Indian exporters seem to be taking advantage of trade liberalisation in destination markets by marginally increasing exporter currency prices into emerging markets but not into the G3. However, in the case of differentiated goods, we find this effect of trade liberalisation for both G3 and emerging markets.
Journal of Economic Surveys, 2008
This paper reviews the neoclassical and new economic geography (NEG) theoretical frameworks used ... more This paper reviews the neoclassical and new economic geography (NEG) theoretical frameworks used to analyse the effects of integration on trade and factor flows, and the empirical work carried out within those theoretical frameworks for the European case. The European Union (EU) is of particular interest because it is illustrative of the tensions between deepening of the integration process and widening membership: whereas deepening requires homogeneity, widening has made the EU increasingly diverse. The orthodox framework saw trade and factor flows as substitutes, thus separating their analysis, and was mainly concerned with efficiency issues of trade integration. The NEG framework saw trade and factor flows as complements, and analysed them jointly, looking mainly at distribution issues such as disparities in industry location and wages arising from a single market for goods and factors. The main lesson for the Eastern enlargement(s) is that integration in its various forms leads to an uneven distribution of gains across member countries when these have very diverse economic structures.
JCMS: Journal of Common Market Studies, 2010
This article applies the concepts of trade creation and trade diversion to immigration into the E... more This article applies the concepts of trade creation and trade diversion to immigration into the EU-15 in order to investigate whether during 1986-2006 there were any significant preference effects in favour of the CEECs (central and eastern European countries) that make them 'natural' members of the EU single market for labour. If this hypothesis is true, there should have been strong migration creation but little migration diversion in the last 20 years. The results broadly support migration creation for the CEECs prior to their EU membership. At the same time, the evidence of diversion away from other world regions is mixed. The combined impact of a common language and established communities, compared to distance and a common border, may contribute to the preservation of migration channels from outside Europe. Within Europe, to be an EU outsider can have a negative impact on migration channels. Moreover, whilst liberal immigration policies increase immigration contemporaneously, restrictive immigration policies only show an impact with a two-year lag.