G04-O3 International Trade, Global Value Chains (Gvcs) And Regional Growth
Tracks
Ordinary Session
Thursday, August 28, 2025 |
9:00 - 10:30 |
A4 |
Details
Chair: Vinicius Ribeiro
Speaker
Dr. Olga Ivanova
Senior Researcher
PBL Netherlands Environmental Assessment Agency
Future Regional Economic Scenarios for Netherlands
Author(s) - Presenters are indicated with (p)
Olga Ivanova (p), Corjan Brink , Kristian Bakker, Theodoros Chatzivasileiadis
Discussant for this paper
Łukasz Gręda
Abstract
Dutch regional economic and transport WLO (Welvaart en Leefomgeving) scenarios are developed every seven years and provide policymakers with scenario-based insights to guide decisions on mobility and urbanization. Given the inherent uncertainty of the future, WLO study employs multiple scenarios to analyze the impact of various developments and assess the effectiveness of policy measures. The WLO study combines different scenario elements including regional demography, regional economy and transportation.
For the development of Regional Economic and Sectoral scenarios we employ a methodological approach that combines qualitative scenario narratives, econometric data analysis, and dynamic regional general equilibrium model (EU-EMS model ). This approach aims to quantify sectoral and regional development trajectories within the four scenarios of the future along the dimensions of economic growth (High and Low) and the speed of international climate policy (Rapid and Delayed). Inputs for these analyses include demographic data at the provincial level, labor force participation, productivity, and GDP projections for the Netherlands. The international dimension is modeled using CEPII’s MaGE model , which simulates labor productivity, GDP, and employment trends across EU and non-EU countries.
An essential aspect of the analysis is the integration of marginal abatement cost (MAC) curves derived from the IMAGE global Integrated Assessment Model and CO₂ price trajectories corresponding to emission reduction targets. These MAC curves outline the costs associated with emission reductions by sector and country group, ensuring consistency across the future scenarios.
Scenario analysis within the EU-EMS model proceeds in three phases. Initially, the "WLO High, Delayed" scenario is validated using national and international sectoral and consumption data. Subsequently, the "WLO Low, Delayed" scenario is developed, reflecting slower demographic and macroeconomic growth, lower investments in education and R&D, and increased domestic production reliance. Finally, ambitious climate policy is explored within "WLO High, Rapid" and "WLO Low, Rapid" scenarios, targeting a maximum global warming threshold of 1.8 degrees Celsius, with CO₂ price pathways adjusted accordingly.
For the development of Regional Economic and Sectoral scenarios we employ a methodological approach that combines qualitative scenario narratives, econometric data analysis, and dynamic regional general equilibrium model (EU-EMS model ). This approach aims to quantify sectoral and regional development trajectories within the four scenarios of the future along the dimensions of economic growth (High and Low) and the speed of international climate policy (Rapid and Delayed). Inputs for these analyses include demographic data at the provincial level, labor force participation, productivity, and GDP projections for the Netherlands. The international dimension is modeled using CEPII’s MaGE model , which simulates labor productivity, GDP, and employment trends across EU and non-EU countries.
An essential aspect of the analysis is the integration of marginal abatement cost (MAC) curves derived from the IMAGE global Integrated Assessment Model and CO₂ price trajectories corresponding to emission reduction targets. These MAC curves outline the costs associated with emission reductions by sector and country group, ensuring consistency across the future scenarios.
Scenario analysis within the EU-EMS model proceeds in three phases. Initially, the "WLO High, Delayed" scenario is validated using national and international sectoral and consumption data. Subsequently, the "WLO Low, Delayed" scenario is developed, reflecting slower demographic and macroeconomic growth, lower investments in education and R&D, and increased domestic production reliance. Finally, ambitious climate policy is explored within "WLO High, Rapid" and "WLO Low, Rapid" scenarios, targeting a maximum global warming threshold of 1.8 degrees Celsius, with CO₂ price pathways adjusted accordingly.
Mr Łukasz Gręda
Ph.D. Student
University Of Warsaw
Measurements of distance in international trade of goods
Author(s) - Presenters are indicated with (p)
Łukasz Gręda (p)
Discussant for this paper
Santiago Pinto
Abstract
Distance is one of the fundamental geographical concepts and a key element in various economic analyses, including those related to trade, such as the gravity model of trade. Its popularity stems from highly successful empirical analyses, despite its simplicity. Unfortunately, there is a lack of uniformity in distance measurements. It is assumed that the distance between countries can be defined as the distance between their capitals or largest cities, and less often between their centroids. However, these are not the only possible approaches. Distance can be calculated in many other ways, for instance based on average distances between multiple cities, centers of gravity, or equidistance.
An additional approach to measuring distance is provided by remote sensing methods, which allow for the acquisition of global data without concerns about data quality. Of particular potential is the data on light emissions at night, as they correlate closely with actual economic activity. Therefore, it is important to standardize distance measurements and assess the differences between various measures and their impact on analyses.
To this aim, this work develops a gravity model of trade using a variety of distance measures based on a literature review and cartographic or remote sensing methods. Using the AIC and BIC information criteria, the study determines which measures provide the best estimates. The results show that measurements based on more complex methods yield statistically better results. However, no major differences were observed between the most commonly used measures, based on capitals and the largest cities.
An additional approach to measuring distance is provided by remote sensing methods, which allow for the acquisition of global data without concerns about data quality. Of particular potential is the data on light emissions at night, as they correlate closely with actual economic activity. Therefore, it is important to standardize distance measurements and assess the differences between various measures and their impact on analyses.
To this aim, this work develops a gravity model of trade using a variety of distance measures based on a literature review and cartographic or remote sensing methods. Using the AIC and BIC information criteria, the study determines which measures provide the best estimates. The results show that measurements based on more complex methods yield statistically better results. However, no major differences were observed between the most commonly used measures, based on capitals and the largest cities.
Dr. Santiago Pinto
Senior Researcher
Federal Reserve Bank Of Richmond
Heterogeneous Districts, Interests, and Trade Policy
Author(s) - Presenters are indicated with (p)
Santiago Pinto (p), Kishore Gawande, Pablo Pinto
Discussant for this paper
Vinicius Ribeiro
Abstract
Congressional districts, heterogeneous in their trade policy preferences, are key players determining trade protectionism. Yet, they are missing from even the best-established political economy models of trade protection. We characterize the (unobserved) district-level demand for protection, and model national tariffs as an aggregation of district-level preferences. The model centrally features exporter interests as a countervailing force against domestic protectionism. We estimate welfare weights on specific-factor owners implied by tariff and non-tariff protection from 2002, a critical juncture coinciding with China’s WTO accession. The findings offer a new reason for the current backlash against free trade--the diminished role of manufacturing exporters.
Dr. Vinicius Ribeiro
Associate Professor
Federal Institute Of Education, Science And Technology Of Tocantins (ifto) / Federal University Of Tocantins (uft)
The international trade of tilapia: A pilot study of tilapia market in Europe
Author(s) - Presenters are indicated with (p)
Vinicius Ribeiro (p), Manoel Xavier Pedroza Filho , Hainnan Souza Rocha
Discussant for this paper
Olga Ivanova
Abstract
World tilapia production has grown significantly over the last decade. In 2024, world production will have exceeded 7 million tons for the first time, which represents an increase of 49% over the last twelve years. This expansion has been driven by strong global demand and advancements in aquaculture technology. In this context, this pilot study aims to investigate the characteristics of tilapia demand in the European market.
The research was principally based on qualitative data gathered through interviews and visits to retailers, wholesalers, and importers in six European countries. Primary sources were complemented with quantitative data collected from official databases as EUMOFA, FAO/Globefish, and FranceAgrimer. Data collection on the field also included the participation in the two largest seafoods fairs in Europe, i.e. CONXEMAR (Vigo/Spain), Seafood Global (Barcelona/Spain).
The results indicate that tilapia is still little known by European consumers, and demand is principally concentrated on ethnic groups. Currently, the European market for tilapia is based principally on the demand of ethnic groups, especially Latins, Arabs, Asians, and Africans. Despite being familiar with part of the population, consumption of tilapia among Europeans is low. The absence of offers in the supermarkets and negative perceptions of consumers concerning the quality of tilapia from China are some of the reasons for the low consumption by the general population.
Since the consumption of tilapia in Europe is directly linked to these ethnic groups, the demand in some countries is concentrated in regions with large populations of immigrants (e.g. Paris region, Lisbon, and Madrid). Price is one of the main determinants of the purchase decision of tilapia consumers in Europe. Since quality is not the main decision factor for consumers, tilapia faces strong competition with other white fish such as pangasius and pollock, whose prices are lower.
Finally, in retail, the tilapia is sold principally in ethnic stores (e.g. Asian shops), and in some countries like France and Spain (two major consumers of tilapia in Europe) it is rare to found it in the supermarkets. The offer in restaurants is scarce and some volumes are sold to food service channels as catering.
The research was principally based on qualitative data gathered through interviews and visits to retailers, wholesalers, and importers in six European countries. Primary sources were complemented with quantitative data collected from official databases as EUMOFA, FAO/Globefish, and FranceAgrimer. Data collection on the field also included the participation in the two largest seafoods fairs in Europe, i.e. CONXEMAR (Vigo/Spain), Seafood Global (Barcelona/Spain).
The results indicate that tilapia is still little known by European consumers, and demand is principally concentrated on ethnic groups. Currently, the European market for tilapia is based principally on the demand of ethnic groups, especially Latins, Arabs, Asians, and Africans. Despite being familiar with part of the population, consumption of tilapia among Europeans is low. The absence of offers in the supermarkets and negative perceptions of consumers concerning the quality of tilapia from China are some of the reasons for the low consumption by the general population.
Since the consumption of tilapia in Europe is directly linked to these ethnic groups, the demand in some countries is concentrated in regions with large populations of immigrants (e.g. Paris region, Lisbon, and Madrid). Price is one of the main determinants of the purchase decision of tilapia consumers in Europe. Since quality is not the main decision factor for consumers, tilapia faces strong competition with other white fish such as pangasius and pollock, whose prices are lower.
Finally, in retail, the tilapia is sold principally in ethnic stores (e.g. Asian shops), and in some countries like France and Spain (two major consumers of tilapia in Europe) it is rare to found it in the supermarkets. The offer in restaurants is scarce and some volumes are sold to food service channels as catering.
