International Journal of Trade and Global Markets http://www.inderscience.com/browse/index.php?journalID=130&year=2011&vol=4&issue=4 Inderscience Publishers Ltd en-uk International Journal of Trade and Global Markets 1742-7541 1742-755X © 2011 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijtgm_scoverijtgm.jpg http://www.inderscience.com/browse/index.php?journalID=130&year=2011&vol=4&issue=4 http://www.inderscience.com/link.php?id=42860 There are many events that led up to the financial crisis of 2008. This study looks at the political policies in place before the crisis happened. Focusing on the decade and a half prior to the crisis, the incentives in the financial industry led to risk mitigation. This response to mitigate risk explains, at least in part, a reason why there was a boom in the Collateralised Debt Obligations (CDO) and Mortgage-Backed Securities (MBS) markets in the years leading up to the crisis. The incentives leading up to the 2008 financial crisis
Kurt W. Rotthoff
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 343 - 349
There are many events that led up to the financial crisis of 2008. This study looks at the political policies in place before the crisis happened. Focusing on the decade and a half prior to the crisis, the incentives in the financial industry led to risk mitigation. This response to mitigate risk explains, at least in part, a reason why there was a boom in the Collateralised Debt Obligations (CDO) and Mortgage-Backed Securities (MBS) markets in the years leading up to the crisis.

]]> 10.1504/IJTGM.2011.042860 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 343 - 349 Kurt W. Rotthoff Stillman School of Business, Seton Hall University, JH 674, 400 South Orange Ave., South Orange, NJ 07079, USA moral hazards financial crises employee incentives financial policies political policies politics risk mitigation CDOs collateralised debt obligations collateralisation MBSs mortgage-backed securities mortgages securitisation securities markets USA United States housing globalisation trade global markets. 2011-10-07T23:20:50-05:00 4 4 343 349 2011-10-07T23:20:50-05:00 http://www.inderscience.com/link.php?id=42861 The paper refers to 'a theoretical model' created by Bitzenis (2003), named Universal Model, that incorporates most of the Foreign Direct Investment (FDI) theories. What derives from the literature review is the comprehension of the relativity of each theory; there is no FDI theory that dominates the decision-making process of multinationals (MNEs) regarding FDI. Economists, MNEs and entrepreneurs may have a decisive interest in countries that open their economies aimed at attracting significant FDI inflows as a final goal. The investment opportunities appeared in various countries differ from time to time even in the same country diachronically. The Universal Model of theories determining FDI revisited
Aristidis P. Bitzenis; Pyrros D. Papadimitriou
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 350 - 371
The paper refers to 'a theoretical model' created by Bitzenis (2003), named Universal Model, that incorporates most of the Foreign Direct Investment (FDI) theories. What derives from the literature review is the comprehension of the relativity of each theory; there is no FDI theory that dominates the decision-making process of multinationals (MNEs) regarding FDI. Economists, MNEs and entrepreneurs may have a decisive interest in countries that open their economies aimed at attracting significant FDI inflows as a final goal. The investment opportunities appeared in various countries differ from time to time even in the same country diachronically.

]]> 10.1504/IJTGM.2011.042861 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 350 - 371 Aristidis P. Bitzenis; Pyrros D. Papadimitriou Department of International and European Studies, University of Macedonia, 156 Egnatia Str., GR 54006, Thessaloniki, Greece. ' Department of Political Science and International Relations, University of Peloponnese, Dervenakion 47 & Adimandou 22100, Corinth, Greece FDI theories foreign direct investment Aristidis Bitzenis multinational enterprises MNEs transition economies planned economies Bulgaria theoretical models Universal Model decision-making processes economists entrepreneurs FDI inflows investment opportunities OLI ownership location internalisation government incentives FDI determinants globalisation trade barriers global markets. 2011-10-07T23:20:50-05:00 4 4 350 371 2011-10-07T23:20:50-05:00 http://www.inderscience.com/link.php?id=42862 We adopted a restricted version of Source Differentiated Almost Ideal Demand System (RSDAIDS) to analyse the US import demand for fresh apples, apple juice and other processed apples after differentiating each type of apple by import origins. Seasonality and time trend variables were included in the RSDAIDS model and the general demand restrictions of adding-up, homogeneity and slutsky symmetry were imposed. The system of equations is then estimated using Seemingly Unrelated Regression (SUR) and the results of the estimation are presented in the form of parameter estimates, as well as price and expenditure elasticities. US import demand for apple: source differentiated almost ideal demand system approach
Dawit Kelemework Mekonnen; Esendugue Greg Fonsah; Boris Borgotti
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 372 - 382
We adopted a restricted version of Source Differentiated Almost Ideal Demand System (RSDAIDS) to analyse the US import demand for fresh apples, apple juice and other processed apples after differentiating each type of apple by import origins. Seasonality and time trend variables were included in the RSDAIDS model and the general demand restrictions of adding-up, homogeneity and slutsky symmetry were imposed. The system of equations is then estimated using Seemingly Unrelated Regression (SUR) and the results of the estimation are presented in the form of parameter estimates, as well as price and expenditure elasticities.

]]> 10.1504/IJTGM.2011.042862 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 372 - 382 Dawit Kelemework Mekonnen; Esendugue Greg Fonsah; Boris Borgotti Department of Agricultural and Applied Economics, University of Georgia, 305 Conner Hall, Athens, Georgia 30602, USA. ' Department of Agricultural and Applied Economics, University of Georgia, 15 RDC RD, P.O. Box 1209, Tifton, Georgia 31793, USA. ' Eleve Ingenieur Agronome 2eme annee, ENSAT Avenue de l'Agrobiopole, B.P. 32607 Auzeville-Tolosane, 31326 Castanet-Tolosan Cedex, France fruit fresh apples SDAIDS demand estimation USA United States import demands imports RSDAIDS restricted source differentiated almost ideal demand system apple juice processed apples import origins seasonality seasons seasonal variables time trends time variables demand restrictions adding-up homogeneity slutsky symmetry SURE seemingly unrelated regression equations SUR parameter estimates price elasticities expenditure elasticities globalisation trade global markets. 2011-10-07T23:20:50-05:00 4 4 372 382 2011-10-07T23:20:50-05:00 http://www.inderscience.com/link.php?id=42863 This paper investigates GCC countries' trade integration. The gravity equation is estimated using Panel Zero-Inflated Negative Binomial specification and COMTRADE aggregate and disaggregated flows. Results confirm GCC countries' integration deficit on exports side, while being integrated to some extent on imports side and on some particular commodities. Moreover, economic size and distance differently affect trade according to its direction and the nature of goods. Finally, two major obstacles to integration are highlighted: ?Limited trade complementarity induced by excess reliance on oil and lagged industrialisation. ?Intensive trade with industrialised and some developing countries at the expense of GCC countries. Gulf Cooperation Council trade integration: a new empirical examination
Walid Abdmoulah
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 383 - 404
This paper investigates GCC countries' trade integration. The gravity equation is estimated using Panel Zero-Inflated Negative Binomial specification and COMTRADE aggregate and disaggregated flows. Results confirm GCC countries' integration deficit on exports side, while being integrated to some extent on imports side and on some particular commodities. Moreover, economic size and distance differently affect trade according to its direction and the nature of goods. Finally, two major obstacles to integration are highlighted: ?Limited trade complementarity induced by excess reliance on oil and lagged industrialisation. ?Intensive trade with industrialised and some developing countries at the expense of GCC countries.

]]> 10.1504/IJTGM.2011.042863 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 383 - 404 Walid Abdmoulah Arab Planning Institute, Kuwait, P.O. Box 5834, Safat 13059, Kuwait GCC Gulf Cooperation Council Arab States CCASG Persian Gulf Arabian Peninsula Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates intra-regional trade gravity models panel models zero-inflated models negative binomial models COMTRADE UN United Nations commodity trade statistics statistical databases aggregate flows disaggregated flows integration deficits exports imports economic size economic distance trade complementarity oil lagged industrialisation intensive trade industrialised countries developing countries globalisation global markets. 2011-10-07T23:20:50-05:00 4 4 383 404 2011-10-07T23:20:50-05:00 http://www.inderscience.com/link.php?id=42864 Economic Diplomacy (ED) is in fact as old as international trade, just that it has been often, due to other 'priorities', pushed back. Yet, what is ED in the first place? Many diplomats, politicians, businessman and even researchers speak about it, but do we all have in mind the same thing? The existing literature shows many different viewpoints of ED, but in our opinion not the 'whole picture'. With the purpose of having a clear perspective about the topic we defined our own definition of ED. However in Slovenia, a small and an open economy, the talks about ED first started in the mid 1990s of the last century, primary having in mind the Economic Counsellors (ECs) at the diplomatic missions abroad. Yet, there was no complete strategy in this field. On the basis of performed questionnaire and experiment we carried out an evaluation of the existing system of ED in Slovenia and suggested policy recommendations. Evaluation of the Economic Diplomacy model in the Republic of Slovenia
Gorazd Justinek
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 405 - 419
Economic Diplomacy (ED) is in fact as old as international trade, just that it has been often, due to other 'priorities', pushed back. Yet, what is ED in the first place? Many diplomats, politicians, businessman and even researchers speak about it, but do we all have in mind the same thing? The existing literature shows many different viewpoints of ED, but in our opinion not the 'whole picture'. With the purpose of having a clear perspective about the topic we defined our own definition of ED. However in Slovenia, a small and an open economy, the talks about ED first started in the mid 1990s of the last century, primary having in mind the Economic Counsellors (ECs) at the diplomatic missions abroad. Yet, there was no complete strategy in this field. On the basis of performed questionnaire and experiment we carried out an evaluation of the existing system of ED in Slovenia and suggested policy recommendations.

]]> 10.1504/IJTGM.2011.042864 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 405 - 419 Gorazd Justinek International School for Social and Business Studies, Celje, Mariborska cesta 7, 3000 Celje, Slovenia economic diplomacy Slovenia international trade diplomats politicians small economies open economies economic counsellors diplomatic missions globalisation global markets. 2011-10-07T23:20:50-05:00 4 4 405 419 2011-10-07T23:20:50-05:00 http://www.inderscience.com/link.php?id=42865 The aim is to determine whether there is a correlation between trade and investment flows and their inter-causality on a group of Western Balkan countries (Croatia, Bosnia and Herzegovina, FYRoM and Serbia). The analysis in static model resulted in establishing complementarities between FDI inflows and exports and FDI inflows and imports into the countries of the region, which indicates that FDI inflows in this region are efficiency-seeking. Dynamic models have confirmed the traditional variables important for exports and imports (GDP host and home countries, distance, and lagged variables), but there were no links between trade and FDI. The relationship and intensity between trade and FDI is very weak which indicates that the current structure of FDI has not given the desired results in these countries. FDI, trade and integration in the Western Balkan Countries: Is there any causality?
Ines Kersan-Skabic
International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 420 - 436
The aim is to determine whether there is a correlation between trade and investment flows and their inter-causality on a group of Western Balkan countries (Croatia, Bosnia and Herzegovina, FYRoM and Serbia). The analysis in static model resulted in establishing complementarities between FDI inflows and exports and FDI inflows and imports into the countries of the region, which indicates that FDI inflows in this region are efficiency-seeking. Dynamic models have confirmed the traditional variables important for exports and imports (GDP host and home countries, distance, and lagged variables), but there were no links between trade and FDI. The relationship and intensity between trade and FDI is very weak which indicates that the current structure of FDI has not given the desired results in these countries.

]]> 10.1504/IJTGM.2011.042865 International Journal of Trade and Global Markets, Vol. 4, No. 4 (2011) pp. 420 - 436 Ines Kersan-Skabic Department of Economics and Tourism, "Dr. Mijo Mirkovic", Juraj Dobrila University of Pula, P. Preradovica 1, 52100, Pula, Croatia foreign direct investment trade integration Western Balkans gravity equation Croatia Bosnia Herzegovina Serbia FYRoM former Yugoslavia Yugoslav Republic Macedonia FDI inflows Eastern Europe exports FDI inflows imports efficiency-seeking inflows GDP gross domestic product host countries home countries distance lagged variables globalisation global markets. 2011-10-07T23:20:50-05:00 4 4 420 436 2011-10-07T23:20:50-05:00