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The purpose of this paper is to determine if the institutional quality of developing countries (DCs) and least-developed countries (LDCs) contributes to a significant increase in the utilization rate of the Swiss generalized system of preferences in the agro-food sector.

The authors use state of the art regression techniques accounting for zero values to identify if the institutional quality – separately depicted by the Worldwide Governance Indicators, the Index of Economic Freedom and the Human Development Index – can contribute in overcoming non-tariff barriers (NTBs) to trade.

The institutional quality exerts a consistent positive effect on the level of utilization of trade preferences.

Swiss food trade represents, of course, only a very small share of world trade, therefore it would be worthwhile to extend the analysis to other countries and sectors.

Industrialized countries’ development policies should more strongly focus on capacity building in DCs and LDCs to strengthen trade-related institutions.

The study focuses on an often underemphasized element in international trade relations – the role of the institutional quality in overcoming NTBs to trade.

The purpose of this article is to provide empirical evidence about the potential positive effects of switching from given non-reciprocal trade preferences granted under the Swiss Generalized System of Preferences (GSP) for developing countries (DCs) to negotiated reciprocal trade preferences under a Free Trade Agreement (FTA).

In a case study of Tunisia’s exports to Switzerland, the authors apply methods of matching econometrics, namely, Propensity-Score Matching and Nearest-Neighbor Matching. Hereby, they are able to identify the average treatment effect on the treated.

Overall preferential exports increased by 125 per cent after the entry into force of the FTA in 2005 until the end of the observation period in 2011. Additionally, an analysis of the agro-food and textile sectors likewise indicate boosting preferential exports in the amount of 100 per cent.

Case studies in this vein have their disadvantages. The greatest disadvantage is the lack of generalization. In contrast to studies estimating the potential effects of an FTA for several countries, the authors are not able to generalize their results based on a single case.

Because trade preferences under the Swiss GSP are offered to the country group of DCs as a whole, non-reciprocal trade preferences are not tailored to the export structure of a particular DC. By switching from non-reciprocal to negotiated reciprocal trade preferences, DCs such as Tunisia expect to negotiate terms which are tailored to their export structure as well as better conditions than competitors from countries which are still beneficiaries of the GSP.

To the authors’ knowledge, this is the first study to investigate explicitly the switch from non-reciprocal to reciprocal trade preferences using econometric matching techniques.

Garment making by the small and medium-sized enterprises (SMEs) has existed for a long enough time to make the sewing culture a mainstream phenomenon today. It is thus essential to evaluate existing producers, the required information and the key requirements for production. This should consequently forge the way forward. Hence, the purpose of this study was to establish guidelines for the basic requirements as a means of operating garment mass production units in consideration of the unique economic, legal and social environment in Tanzania.

The study deployed a qualitative approach: interview sessions, questionnaires and observation together with the document review approach. A qualitative approach captured in-depth views, ideas and concepts from participants.

The study established the requirements for scaling up SMEs into mass production. The requirements include significant investment, well-planned strategies and an implementable industrialisation plan. The country also requires empowered workforces through the existing institutions, international collaborations with foreign investors, implementable policies, among others to excel in this sector.

The identified information together with all factors is leading towards initiating textile-based industries. Thus, information resources concerning garment production in the Tanzanian context are suitable for both individuals and corporations intending to scale up their production.

This is probably among the first studies in Tanzania which explored the basic requirements for setting mass-production units for textile and apparel industries. The uniqueness relies on the involved participants from multi-perspective domains.

The purpose of this paper is to examine the role of Government via its industrial policy aimed at building competitiveness in apparel manufacturing in a developing country.

A conceptual framework that proposes the causal relationships between policies and competitiveness is applied to the apparel manufacturing sector in Trinidad and Tobago. The study utilises primary data from interviews and observations, and secondary data sources inclusive of industry and fashion companies reports. Data analysis of four vertical policies is performed via the use of system dynamics modelling and simulation.

The four vertical policies were found to impact three interrelated elements in the apparel manufacturing sector: the market, apparel products and productive resources. Policies that intentionally focussed on improving market attractiveness benefited wide segments of the industry. However, policies that focussed on product and resource attractiveness that were designed as direct support for selected firms had a lower impact on overall industry competitiveness than those that had an industry-wide focus.

A single industry in a small developing island state limits the generalisability of the research findings. Additionally, non-reporting of export data and aggregation of industry data limits the conclusions that can be drawn regarding the impact of the vertical policies on the apparel industry. 10; 10;

Policy-makers should consider the scope of the vertical policies in terms of the number of firms in the industry to benefit, and the need for complementary horizontal policies for creating enabling environments for competitiveness.

The paper proposes a conceptual framework to capture relationships between vertical policy and competitiveness.

Previous studies have focused on individual preferences regarding trade liberalization without considering an individual’s perceptions of income inequality. This study aims to utilize the 2007 Latinobarametro to test a hypothesis regarding the relationship between an individual’s perceived income inequality and their support for trade liberalization in their country. The authors focus primarily on Latin America, as it is a region that has a long, entrenched tradition of income inequality with far reaching political and economic consequences. It is also a region that is relatively new to trade liberalization, as it only began to open up in the 1980s, after a decade-long commitment to import substitution industrialization.

The authors utilize a logit model to analyze the 2007 Latinobarametro data to test the hypothesis.

The authors find that individuals who perceive income inequality to be fair in their country are more likely to support trade liberalization, whereas those who perceive income inequality to be unfair are less likely to support liberalization.

This study allows for a more complete portrait of what influences individual preferences toward trade policy and advocates for policy elites to be more responsive to their citizens’ concerns about trade liberalization.

The purpose of this paper is to systematically profile investors’ personality traits to examine if, and how, those traits are associated with phenomena observed in financial markets. In particular, the paper looks at overconfidence and overreaction in an experimental foreign exchange market.

The paper measures the personality of the subjects using the short form of the NEO-PIR instrument, the NEO-FFI developed by Costa and McRae (1992) which is based on Norman's (1963) “Big Five” personality constructs of negative emotion, extraversion, openness to experience, agreeableness and conscientiousness. The paper measures psychological gender using questions developed by Bem (1994). Preference for innovation and risk-taking propensity are measured using instruments developed by Jackson (1976). The paper then examines the behavior of the subject who traded interactively in “real time” in an interactive-simulated foreign exchange market where “price discovery” was instantaneous and pricing decisions were made instantaneously as items of news, determined by the researchers, were released.

The paper demonstrates that personality traits are associated with overconfidence and overreaction in financial markets. The paper presents meta-analysis which facilitates the development of a posteriori theories of how particular traits affect investment; there are important roles for risk-taking propensity, negative emotion, extraversion, masculinity, preference for innovation and conscientiousness.

A typical behavioral finance paper might find an empirical regularity in prices and, on the basis of such patterns, infer the underlying psychology motivating the behavior of investors. The approach differs from this caricature of the “typical” behavioral finance paper. The paper does not infer the underlying psychology of investors from patterns in prices. Rather, the paper learns about investors by systematically profiling their personality traits. The paper then demonstrates how those traits are associated with the prices generated by the investors the authors study. In focussing on the role of individual personality, the paper refocusses behavioral finance on the individuals who set prices.

We investigate institutional investors’ trading behavior of acquiring firm stocks surrounding merger activities for the period 1992–2001. We label investment companies and independent investment advisors as active institutions and banks, nonbank trusts, and insurance companies as passive institutions. We analyze the trading behavior of active and passive institutions surrounding merger announcements and their eventual resolution. Our results indicate that active institutions significantly increase their holdings of acquiring firm stocks for mergers with higher announcement period abnormal return and this increase is more pronounced for stock mergers than cash mergers. Active institutions display preference for stock proposals at the merger announcement on the basis of their prior beliefs and this is explained by the “overreaction phenomenon.” However, they update their beliefs between announcement and final resolution as more information arrives into the market. Finally, active institutions appear to correct their overreaction behavior by displaying their greater preference for cash proposals as compared to stock proposals at the quarter of eventual outcome. The trading behavior of passive institutions suggests that these institutions disregard the market response of merger announcement in trading acquiring firm stocks at the announcement quarter. The passive institutions gradually update their beliefs and utilize the information released at the announcement in rebalancing their portfolios at the final resolution.

In the last two decades, the dependence of Taiwan’s manufacturing production on imported intermediate inputs has steadily risen. Meanwhile, the market share of imported consumable manufacture products has also increased. The steady rise of both import shares may not be explained by price fact or since the relative import prices have shown no decreasing trend. The scenario of constantly buying more imported goods when they are not cheaper can be treated as a preference change in favor of imported goods, which may be caused by the popularity of outsourcing, increasing product varieties and persistent trade barriers, as literatures indicated. Traditional macroeconomic models primarily consider the price mechanism in their import demand estimates, with no concern for changes in import preferences. Neglecting changing import preferences in a rapid globalization environment may yield biased empirical results. In this article, we incorporate the import preference factor into a single-country Computable General Equilibrium (CGE) model and use it firstly to quantify the scale of preferences change and then to test how the preferences change affects the effects of trade policy. The empirical results with and without the concern of import preferences change are compared to yield the scale of bias caused by neglecting the change.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.