http://www.bis.org/cbhub/list/country/country_belgium/index.rss Latest research hub papers from Belgium en http://www.nbb.be/doc/ts/publications/wp/WP224En.pdf National Bank of Belgium Working Papers by Ansgar Rannenberg Asymmetric information in credit markets, bank leverage cycles and macroeconomic dynamics 2012-04-04T12:35:00Z Asymmetric information in credit markets, bank leverage cycles and macroeconomic dynamics 2012-04-04T12:35:00Z Full text http://www.nbb.be/doc/ts/publications/wp/WP224En.pdf Ansgar Rannenberg Ansgar Rannenberg 2012 National Bank of Belgium Working Papers E44 G21 http://www.nbb.be/doc/ts/publications/wp/wp220En.pdf National Bank of Belgium Working Papers by Luis Araujo, Giordano Mion, Emanuel Ornelas Institutions and export dynamics 2012-03-28T12:35:59Z Institutions and export dynamics 2012-03-28T12:35:59Z Full text http://www.nbb.be/doc/ts/publications/wp/wp220En.pdf Luis Araujo Emanuel Ornelas Giordano Mion Luis Araujo, Giordano Mion, Emanuel Ornelas 2012 National Bank of Belgium Working Papers F10 F12 L14 http://www.nbb.be/doc/ts/publications/wp/wp222En.pdf National Bank of Belgium Working Papers by Maes, Ivo Tommaso Padoa-Schioppa and the origins of the euro 2012-03-28T12:35:59Z Tommaso Padoa-Schioppa and the origins of the euro 2012-03-28T12:35:59Z Full text http://www.nbb.be/doc/ts/publications/wp/wp222En.pdf Ivo Maes Ivo Maes 2012 National Bank of Belgium Working Papers A11 B20 E60 F02 N14 P16 http://www.nbb.be/doc/ts/publications/wp/wp219En.pdf National Bank of Belgium Working Papers by Catherine Fuss, Linke Zhu Comparative advantage, multi-product firms and trade liberalisation: An empirical test 2012-03-28T12:35:59Z Comparative advantage, multi-product firms and trade liberalisation: An empirical test 2012-03-28T12:35:59Z Full text http://www.nbb.be/doc/ts/publications/wp/wp219En.pdf Linke Zhu Catherine Fuss Catherine Fuss, Linke Zhu 2012 National Bank of Belgium Working Papers F11 F12 F14 L23 http://www.nbb.be/doc/ts/publications/wp/wp223En.pdf National Bank of Belgium Working Papers by Pierre Blanchard, Emmanuel Dhyne, Catherine Fuss, Claude Mathieu (Not so) easy come, (still) easy go? Footloose multinationals revisited? 2012-03-26T12:35:00Z This paper revisits the "footloose" nature of multinational firms (MNFs) hypothesis. Using firm-level data for Belgium over the period 1997-2008, we rely on a Probit model and take into account the endogeneity of the determinants of firm exit. Our results may be summarised as follows. First, the unconditional exit probability of MNFs is lower than that of domestic firms. Second, controlling for firm and sector characteristics - firm age, Total Factor Productivity, sunk costs, size, competition on the product market, sector-level value added growth, and sector dummies - the difference between the exit probability of MNFs and domestic firms becomes positive. Third, our results show that MNFs have a lower sensitivity to sunk costs and size than do domestic firms, which may be interpreted as lower exit barriers due to greater possibilities of relocating tangible and intangible assets to foreign affiliates. (Not so) easy come, (still) easy go? Footloose multinationals revisited? 2012-03-26T12:35:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_223.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp223En.pdf Pierre Blanchard Catherine Fuss Claude Mathieu Emmanuel Dhyne Pierre Blanchard, Emmanuel Dhyne, Catherine Fuss, Claude Mathieu 2012-03-26 National Bank of Belgium Working Papers F23 http://www.nbb.be/doc/ts/publications/wp/wp221En.pdf National Bank of Belgium Working Papers by by Xavier Deville and Fabienne Verduyn Implementation of EU legislation on rail liberalisation in Belgium, France, Germany and the Netherlands 2012-03-14T12:35:59Z This Working Paper provides a detailed and easy-to read overview of the railway liberalisation in Belgium and the three neighbouring countries. The European Union's liberalisation Directives are often complex and are implemented in very specific ways in the different Member States. The analysis goes into some detail about the Commission's underlying motives and economic theories for letting network industries, which had previously been regarded as natural monopolies, convert into competitive enterprises with the separation of infrastructure from operations. The study takes subsequently a look at the impact of the European rail liberalisation Directives in Belgium and its neighbouring countries - France, Germany and the Netherlands. This shows that there are considerable variations in the way in which the Directives are applied. It is reflected in the way in which the separation of the infrastructure and the transport services within the railway companies was carried out, and in the degree of opening of the market in freight and passenger transport. Implementation of EU legislation on rail liberalisation in Belgium, France, Germany and the Netherlands 2012-03-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_221.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2012/cp120314En_WP221.pdf by Xavier Deville Fabienne Verduyn by Xavier Deville and Fabienne Verduyn 2012-03-14 National Bank of Belgium Working Papers D23 D40 H20 L14 L92 http://www.nbb.be/doc/ts/Enterprise/Press/2012/cp120202En_WP220.pdf National Bank of Belgium Working Papers by Luis Araujo, Giordano Mion, Emanuel Ornelas Institutions and export dynamics 2012-02-02T12:35:00Z We study the role of contract enforcement in shaping the dynamics of international trade at the firm level. We develop a theoretical model to describe how agents build reputations to overcome the problems created by weak enforcement of international contracts. We find that, all else equal, exporters start their activities with higher volumes and remain as exporters for a longer period in countries with better contracting institutions. However, conditional on survival, the growth rate of a firm's exports to a country decreases with the quality of the country's institutions. We test these predictions using a rich panel of Belgium exporting firms from 1995 to 2008 to every country in the world. We adopt two alternative empirical strategies. In one specification we use firm-year fixed effects to control for time-varying firm-specific characteristics. Alternatively, we model selection more explicitly with a two-step Heckman procedure using "extended gravity" variables as our exclusion restrictions. Results from both specifications support our predictions. Overall, our findings suggest that weak contracting institutions cannot be thought simply as an extra sunk or fixed cost to exporting firms; they also significantly affect firms' trade volumes and have manifold implications for firms' dynamic patterns in foreign markets. Institutions and export dynamics 2012-02-02T12:35:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_220.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2012/cp120202En_WP220.pdf Luis Araujo Emanuel Ornelas Giordano Mion Luis Araujo, Giordano Mion, Emanuel Ornelas 2012-02-02 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/Enterprise/Press/2012/cp120117En_WP219.pdf National Bank of Belgium Working Papers by Catherine Fuss, Linke Zhu Comparative advantage, multi-product firms and trade liberalisation: An empirical test? 2012-01-17T12:33:59Z This paper investigates how economies of scope in multi-product firms interact with comparative advantage in determining the effect of trade liberalisation on resource reallocation, using Belgian manufacturing firm- and firm-product-level data over the period 1997-2007. We first provide evidence on industry integration induced by multi-product firms producing simultaneously in multiple industries and on the extent to which industry integration occurs between industries that have different degrees of comparative advantage. We then examine the impact of opening up trade with low-wage countries on both inter- and intra-industry resource reallocation, taking into account heterogeneity in the integration rate across sectors and industries. Our results indicate that, within more closely integrated sectors, trade liberalisation with low-wage countries leads to less reallocation from low-skill-intensity (comparative-disadvantage) industries to high-skill-intensity (comparative-advantage) industries, both in terms of employment and output. We also find that more integrated industries experience less skill upgrading after trade liberalisation with low-wage countries. Furthermore, we find that within sectors with a low integration rate, trade liberalisation with low-wage countries induces relatively more aggregate TFP and average firm output growth in comparative-advantage industries than in comparative-disadvantage industries, in line with the prediction of Bernard, Redding and Schott (2007), while the opposite is true in highly integrated sectors. Decomposition of the industry-level aggregate TFP changes reveals that the result is mainly driven by reallocation between incumbent firms within industries. Overall, the results are highly consistent with the predictions of the Song and Zhu (2010) model. Comparative advantage, multi-product firms and trade liberalisation: An empirical test? 2012-01-17T12:33:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_219.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2012/cp120117En_WP219.pdf Linke Zhu Catherine Fuss Catherine Fuss, Linke Zhu 2012-01-17 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111216En_WP218.pdf National Bank of Belgium Working Papers by Xavier Deville and Saskia Vennix Economic Importance of Air Transport and Airport Activities in Belgium - Report 2009 2011-12-16T12:39:00Z This Working Paper assesses the economic importance of the air transport sector in Belgium in terms of value added, employment and investment over the period from 2007 to 2009. The study is an update of an analysis carried out by the Bank in 2009 (Working Paper No. 158). The air transport sector under review spans not only activities directly linked to air transport, but also all business undertaken on the sites of Belgium's six airports (Antwerp, Brussels, Charleroi, Kortrijk, Liège, Ostend). Both the direct and indirect effects of the sector are estimated respectively on the basis of microeconomic data (drawn mainly from the Central Balance Sheet Office) and macroeconomic statistics (from the National Accounts Institute). The study also includes an analysis of the social balance sheet and looks into some financial ratios on the basis of data from the Central Balance Sheet Office. Economic Importance of Air Transport and Airport Activities in Belgium - Report 2009 2011-12-16T12:39:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_218.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111216En_WP218.pdf Xavier Deville Saskia Vennix Xavier Deville and Saskia Vennix 2011-12-16 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111124En_WP217.pdf National Bank of Belgium Working Papers by Ivo Maes The evolution of Alexandre Lamfalussy's thought on the international and European monetary system (1961-1993) 2011-11-25T06:21:00Z The establishment of the European Monetary Institute (EMI), the predecessor of the European Central Bank, on 1 January 1994, was a milestone in the process of European monetary integration. In this paper, we look at the work on the international and European monetary system of Alexandre Lamfalussy, its first president. Lamfalussy pursued a threefold career: as a private banker, a central banker and an academic. Partly under the influence of Robert Triffin, Lamfalussy soon became interested in international monetary issues. This paper analyses his views on the international monetary system and on European monetary integration, including his contributions to the Delors Report, which provided the framework for European monetary union. The paper draws extensively on archival research in the Lamfalussy papers at the Bank for International Settlements and the minutes of the EEC Committee of Governors' meetings. The paper provides not only an analysis of Lamfalussy's thought on European monetary integration, but also offers crucial insight into the Weltanschauung and way of thinking of European central bankers in this period. The evolution of Alexandre Lamfalussy's thought on the international and European monetary system (1961-1993) 2011-11-25T06:21:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_217.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111124En_WP217.pdf Ivo Maes Ivo Maes 2011-11-24 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111025En_WP216.pdf National Bank of Belgium Working Papers by Francesco Di Comite, Jacques-François Thisse, Hylke Vandenbussche Verti-zontal differentiation in monopolistic competition 2011-10-25T12:33:59Z The recent availability of trade data at a firm-product-country level calls for a new generation of models able to exploit the large variability detected across observations. By developing a model of monopolistic competition in which varieties enter preferences non-symmetrically, we show how consumer taste heterogeneity interacts with quality and cost heterogeneity to generate a new set of predictions. Applying our model to a unique micro-level dataset on Belgian exporters with product and destination market information, we find that heterogeneity in consumer tastes is the missing ingredient of existing monopolistic competition models necessary to account for observed data patterns. Verti-zontal differentiation in monopolistic competition 2011-10-25T12:33:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_216.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp111025En_WP216.pdf Hylke Vandenbussche Francesco Di Comite Jacques-François Thisse Francesco Di Comite, Jacques-François Thisse, Hylke Vandenbussche 2011-10-25 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp110623En.pdf National Bank of Belgium Working Papers by Claude Mathys Economic importance of the Belgian ports: Flemish maritime ports, Liège port complex and the port of Brussels - Report 2009 2011-06-23T17:36:59Z The National Bank of Belgium publishes an annual update of the study of the economic importance of the Flemish maritime ports - Antwerp, Ghent, Ostend and Zeebrugge - the port of Brussels and the Liège port complex. Economic importance of the Belgian ports: Flemish maritime ports, Liège port complex and the port of Brussels - Report 2009 2011-06-23T17:36:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_215.htm Full text http://www.nbb.be/doc/ts/Enterprise/Press/2011/cp110623En.pdf Claude Mathys Claude Mathys 2011-06-23 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110408En_WP214.pdf National Bank of Belgium Working Papers by Philip Du Caju, François Rycx, Ilan Tojerow Wage structure effects of international trade: Evidence from a small open economy 2011-04-08T17:36:59Z In the last few decades, international trade has expanded not only between industrialised countries, but also between high- and low-wage countries. This important change has raised questions on how international trade affects the labour market. In this spirit, this paper aims to investigate the impact of international trade on wage dispersion in a small open economy. It is one of the few to: i) use detailed matched employer-employee data to compute industry wage premia and disaggregated industry level panel data to examine the impact of changes in exports and imports on changes in wage differentials, ii) analyse the impact of imports according to the country of origin. Looking at the export side, we find a positive effect of exports on the industry wage premium. The findings also show that import penetration from low-income countries has a significant and negative impact on inter-industry wage differentials, while imports from high-income countries seem to have a more ambiguous impact on the wage structure. The results suggest that trade with low-income and high-income countries has different effects on inter-industry wage differentials. Wage structure effects of international trade: Evidence from a small open economy 2011-04-08T17:36:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_214.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110408En_WP214.pdf François Rycx Ilan Tojerow Philip Du Caju Philip Du Caju, François Rycx, Ilan Tojerow 2011-04-08 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110408En.pdf National Bank of Belgium Working Papers by David Vivet Development of a financial health indicator based on companies' annual accounts 2011-04-08T12:35:59Z This document describes the development of a financial health indicator based on companies' financial statements. This indicator is conceived as a weighted combination of variables, which is achieved through a model discriminating between failing firms and non-failing firms. The definition of failure is based on a legal criterion, namely that a company is considered to have failed if it has faced bankruptcy or judicial administration in the past. Based on the model results, companies are positioned in financial health classes, which are intended to be included in the "company files" designed by the Central Balance Sheet Office. Development of a financial health indicator based on companies' annual accounts 2011-04-08T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_213.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110408En.pdf David Vivet David Vivet 2011-04-08 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110303En_WP212.pdf National Bank of Belgium Working Papers by Helga De Doncker The link between mobile telephony arrears and credit arrears 2011-03-03T17:34:59Z At the request of the Minister for Climate and Energy, Paul Magnette, who is also responsible for Consumer Affairs, the NBB's Microeconomic Analysis Service conducted an investigation into the link between payment arrears for mobile telephony and arrears on loan repayments. In this inquiry, which was carried out using data drawn from the Preventel records and from the Central Individual Credit Register (CICR), the profile of people with arrears for both types of debt was also analysed. The link between mobile telephony arrears and credit arrears 2011-03-03T17:34:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_212.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110303En_WP212.pdf Helga De Doncker Helga De Doncker 2011-03-03 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110217En.pdf National Bank of Belgium Working Papers by Jef Boeckx Estimating monetary policy reaction functions: A discrete choice approach 2011-02-17T12:35:59Z I propose a discrete choice method for estimating monetary policy reaction functions based on research by Hu and Phillips (2004). This method distinguishes between determining the underlying desired rate which drives policy rate changes and actually implementing interest rate changes. The method is applied to ECB rate setting between 1999 and 2010 by estimating a forward-looking Taylor rule on a monthly basis using real-time data drawn from the Survey of Professional Forecasters. All parameters are estimated significantly and with the expected sign. Including the period of financial turmoil in the sample delivers a less aggressive policy rule as the ECB was constrained by the lower bound on nominal interest rates. The ECB's non-standard measures helped to circumvent that constraint on monetary policy, however. For the pre-turmoil sample, the discrete choice model's estimated desired policy rate is more aggressive and less gradual than least squares estimates of the same rule specification. This is explained by the fact that the discrete choice model takes account of the fact that central banks change interest rates by discrete amounts. An advantage of using discrete choice models is that probabilities are attached to the different outcomes of every interest rate setting meeting. These probabilities correlate fairly well with the probabilities derived from surveys among commercial bank economists. Estimating monetary policy reaction functions: A discrete choice approach 2011-02-17T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_210.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110217En.pdf Jef Boeckx Jef Boeckx 2011-02-17 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110217En_WP211.pdf National Bank of Belgium Working Papers by Vivien Lewis, Céline Poilly Firm entry, inflation and the monetary transmission mechanism 2011-02-17T12:35:59Z This paper estimates a business cycle model with endogenous firm entry by matching impulse responses to a monetary policy shock in US data. Our VAR includes net business formation, profits and markups. We evaluate two channels through which entry may influence the monetary transmission process. Through the competition effect, the arrival of new entrants makes the demand for existing goods more elastic, and thus lowers desired markups and prices. Through the variety effect, increased firm and product entry raises consumption utility and thereby lowers the cost of living. This implies higher markups and, through the New Keynesian Phillips Curve, lower inflation. While the proposed model does a good job at matching the observed dynamics, it generates insufficient volatility of markups and profits. Estimates of standard parameters are largely unaffected by the introduction of firm entry. Our results lend support to the variety effect; however, we find no evidence for the competition effect. Firm entry, inflation and the monetary transmission mechanism 2011-02-17T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_211.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110217En_WP211.pdf Vivien Lewis Céline Poilly Vivien Lewis, Céline Poilly 2011-02-17 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2011/cp110201En.pdf National Bank of Belgium Working Papers by Alain de Crombrugghe, Gregory de Walque Wage and employment effects of a wage norm: The Polish transition experience 2011-02-01T12:37:00Z Most transition countries used tax-supported wage norms in the early 1990's, as a part of their market liberalization programs. This paper analyses how a firm-level tax (or subsidy) on deviations from a pre-set wage norm may promote employment by rotating the labor demand curve perceived by the workers' union around the value of the norm. We derive the conditions such that it yields a positive employment effect. We test the effect of the norm on the wages on a sample of Polish firms in 1990 and 1991. The data support the role of the wage norm on the position of the perceived labor demand and the role of the tax rate on its slope. Wage and employment effects of a wage norm: The Polish transition experience 2011-02-01T12:37:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_209.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2011/cp110201En.pdf Gregory de Walque Alain de Crombrugghe Alain de Crombrugghe, Gregory de Walque 2011-02-01 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/enterprise/press/2010/cp101104En.pdf National Bank of Belgium Working Papers by Ansgar Rannenberg The Taylor principle and (in-)determinacy in a New Keynesian model with hiring frictions and skill loss 2010-11-04T12:35:00Z We introduce skill decay during unemployment into Blanchard and Gali's (2008) New- Keynesian model with hiring frictions and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost-unemployment relationship positive in a "European" labour market with little hiring but not in a fluid "American" one. If the marginal cost-unemployment relationship is positive, determinacy requires a passive response to inflation in the central bank's interest feedback rule if the rule features only inflation. Targeting steady state output or unemployment helps to restore determinacy. Under indeterminacy, an adverse sunspot shock increases unemployment extremely persistently. The Taylor principle and (in-)determinacy in a New Keynesian model with hiring frictions and skill loss 2010-11-04T12:35:00Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_208.htm Full text http://www.nbb.be/doc/ts/enterprise/press/2010/cp101104En.pdf Ansgar Rannenberg Ansgar Rannenberg 2010-11-04 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp207En.pdf National Bank of Belgium Working Papers by Emmanuel Dhyne, Catherine Fuss, Claude Mathieu Labour demand adjustment: Does foreign ownership matter? 2010-10-14T12:35:59Z This paper examines whether multinational companies differ in their employment adjustment from domestic firms, on the basis of a panel of Belgian firms for the period 1997-2007. We focus on incumbent firms as, in general, they account for the largest fraction of net employment creation, especially among multinational firms (MNFs). We obtain structural estimates of adjustment cost parameters for blue-collar workers and white-collar workers, domestic firms, and MNFs. We find evidence of convex, asymmetric (in the sense that it is more expensive to downsize than to upsize) and cross adjustment costs (indicating costly substitution between workers). To adjust white-collar employment seems to be around half as costly for MNFs as for domestic firms. There is no difference between Belgian MNFs and foreign MNFs. A small fraction of the gap between the adjustment costs of MNFs and domestic firms may be explained by the use of fixed-term contracts and early retirement. Controlling for firm size does not yield robust conclusions; the cost advantage of MNFs may diminish, vanish or turn into a disadvantage. Labour demand adjustment: Does foreign ownership matter? 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_207.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp207En.pdf Catherine Fuss Emmanuel Dhyne Claude Mathieu Emmanuel Dhyne, Catherine Fuss, Claude Mathieu 2010-10-14 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp206En.pdf National Bank of Belgium Working Papers by Ludo Cuyvers, Emmanuel Dhyne, Reth Soeng The effects of internationalisation on domestic labour demand by skills: Firm-level evidence for Belgium 2010-10-14T12:35:59Z We empirically investigate the effects of the internationalisation of Belgian firms on domestic demand for production and non-production workers, which are used as proxies for unskilled and skilled labour. Distinction is made between home-employment effects of firms’ internationalisation, through either international trade or outward foreign direct investment, in highincome countries and in low-income economies. The results of our econometric analysis, using data over 1997-2007, suggest that increasing import shares from low-income countries or investing in those countries significantly reduces demand for low-skilled labour, while it increases demand for skilled labour. An increase in exports generally raises the demand for production workers, while it reduces the demand for non-production workers. However, these effects are reversed in the case of exports to low-income countries. Considering the impact of FDI, our results tentatively suggest that the setting up of a new international investment project has a positive impact on demand for non-production workers one period before it is made. This positive effect is offset in the long run, particularly in the case of investment in low-income countries. The effects of internationalisation on domestic labour demand by skills: Firm-level evidence for Belgium 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_206.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp206En.pdf Ludo Cuyvers Emmanuel Dhyne Reth Soeng Ludo Cuyvers, Emmanuel Dhyne, Reth Soeng 2010-10-14 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp205En.pdf National Bank of Belgium Working Papers by Gianmarco I.P. Ottaviano, Giovanni Peri, Greg C. Wright Immigration, offshoring and American jobs 2010-10-14T12:35:59Z How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhanced efficiency in firms, have spurred the creation of jobs for U.S. natives? We consider a multi-sector version of the Grossman and Rossi-Hansberg (2008) model with a continuum of tasks in each sector and we augment it to include immigrants with heterogeneous productivity in tasks. We use this model to jointly analyze the impact of a reduction in the costs of offshoring and of the costs of immigrating to the U.S. The model predicts that while cheaper offshoring reduces the share of natives among less skilled workers, cheaper immigration does not, but rather reduces the share of offshored jobs instead. Moreover, since both phenomena have a positive "cost-savings" effect they may leave unaffected, or even increase, total native employment of less skilled workers. Our model also predicts that offshoring will push natives toward jobs that are more intensive in communication-interactive skills and away from those that are manual and routine intensive. We test the predictions of the model on data for 58 U.S. manufacturing industries over the period 2000-2007 and find evidence in favor of a positive productivity effect such that immigration has a positive net effect on native employment while offshoring has no effect on it. We also find some evidence that offshoring has pushed natives toward more communication-intensive tasks while it has pushed immigrants away from them. Immigration, offshoring and American jobs 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_205.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp205En.pdf Greg C. Wright Giovanni Peri Gianmarco Ottaviano Gianmarco I.P. Ottaviano, Giovanni Peri, Greg C. Wright 2010-10-14 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp204En.pdf National Bank of Belgium Working Papers by Filip Abraham, Jan Van Hove Can Belgian firms cope with the Chinese dragon and the Asian tigers? The export performance of multi-product firms on foreign markets 2010-10-14T12:35:59Z Exporting firms are affected in many ways by competition on foreign markets. This paper focuses on the impact of Asian competition on the bilateral export performance of Belgian firms, controlling for firmlevel as well as destination-market characteristics. Export performance is measured in several ways, including the export intensity, the variety and quality of trade as well as the export intensity growth. Export performance appears to differ substantially across firms, across sectors and across destination markets. Our overall results indicate that both the export intensity and variety of Belgian firms’ exports are reduced by Asian competition. Especially the competitive pressure caused by mainland China and Hong Kong is strong. The competitive pressure is intense in labour-intensive sectors but also felt in a wide range of activities with a higher value added. Belgian exporters cope with foreign competition by following a variety-expansion or a quality-upgrading strategy. Can Belgian firms cope with the Chinese dragon and the Asian tigers? The export performance of multi-product firms on foreign markets 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_204.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp204En.pdf Jan Van Hove Filip Abraham Filip Abraham, Jan Van Hove 2010-10-14 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp203En.pdf National Bank of Belgium Working Papers by Andrew B. Bernard, Ilke Van Beveren, Hylke Vandenbussche Multi-product exporters, carry-along trade and the margins of trade 2010-10-14T12:35:59Z New empirical and theoretical work has highlighted the importance of multi-product firms in international trade flows. We examine multi-product exporters in the small open economy of Belgium, considering their importance and the relationship between the margins of trade and firm productivity, both across firms and within firms over time. In addition, we employ proxies for trade costs to quantify the extensive and intensive margin adjustments of trade. Linking production and export data at the firm-product level, we discover new and, heretofore, unknown facts about multi-product manufacturing exporters. The large majority of Belgian manufacturing firms export products that they do not produce. More than three quarters of the exported products and more than one quarter of export value from Belgian manufacturers are in goods that are not produced by the firm, so-called Carry-Along Trade (CAT). CAT exports are concentrated in the largest and most productive firms and the value of CAT exports responds differently to variation in firm productivity and trade costs than does the export value of goods that the firm produces. Multi-product exporters, carry-along trade and the margins of trade 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_203.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp203En.pdf Ilke Van Beveren Andrew B. Bernard Hylke Vandenbussche Andrew B. Bernard, Ilke Van Beveren, Hylke Vandenbussche 2010-10-14 National Bank of Belgium Working Papers http://www.nbb.be/doc/ts/publications/wp/wp202En.pdf National Bank of Belgium Working Papers by Thierry Mayer, Marc J. Melitz, Gianmarco I.P. Ottaviano Market size, competition and the product mix of exporters 2010-10-14T12:35:59Z Recent empirical evidence has highlighted how the export patterns of multi-product firms dominate world trade flows, and how these multi-product firms respond to different economic conditions across export markets by varying the number of products they export. In this paper, we further analyze the effects of those export market conditions on the relative export sales of those goods: we refer to this as the firm's product mix choice. We build a theoretical model of multi-product firms that highlights how market size and geography (the market sizes of and bilateral economic distances to trading partners) affects both a firm's exported product range and its exported product mix across market destinations. We show how tougher competition in an export market - associated with a downward shift in the distribution of markups across all products sold in the market - induces a firm to skew its export sales towards its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Our theoretical model shows how this effect of export market competition on a firm's product mix then translates into differences in measured firm productivity. Thus, a firm operating a given technology will produce relatively more output per worker when it exports to markets with tougher competition. This productivity gain is further compounded by the effect of competition on the mix of exported products.driven by the fall in economic activity. It is not a trade crisis --- just a trade collapse. Market size, competition and the product mix of exporters 2010-10-14T12:35:59Z Abstract http://www.nbb.be/pub/06_00_00_00_00/06_03_00_00_00/06_03_05_00_00/WP_202.htm Full text http://www.nbb.be/doc/ts/publications/wp/wp202En.pdf Thierry Mayer Marc J. Melitz Gianmarco Ottaviano Thierry Mayer, Marc J. Melitz, Gianmarco I.P. Ottaviano 2010-10-14 National Bank of Belgium Working Papers