Hege Medin
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Hege Medin was a Senior Research Fellow at NUPI.
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Sunk costs are an entry barrier for enterprises that want to start export.
Uforståelig påstand
While it is important to have an academic and political debate on the effects of an EU-US trade agreement (TTIP), it is too easy to write off the contributions you do not like as "outdated".
Customs brokers as intermediaries in international trade
Recent studies suggest that intermediaries like merchants facilitate international trade by reducing fixed trade costs for producers that trade through them instead of exporting or importing directly. This study argues that customs brokers–a type of intermediary rarely studied in economics before–play a similar role by reducing fixed costs of clearing goods through customs for firms that use them instead of selfdeclaring. Using panel data of Norwegian trade transactions, the paper shows that the majority of manufacturing producers participating in international trade use such brokers, and that the brokers typically handle large trade values on behalf of several different produces. In an econometric analysis, the author finds that the share of a producer’s market specific trade that is self-declared rather than handled by brokers increases with the traded value. This is in line with predictions from theoretical models on trade intermediaries and holds after controlling for observed as well as unobserved factors at the producer, country and product level. Results are similar for exporting and importing, indicating that brokers facilitate both modes of trade.
Utenlandsinvesteringer i sjømatnæringen og norsk tilknytning til EU
This chapter discusses foreign direct investments in the seafood industry and the Norwegian relationship with the EU. While ownership in harvesting is mainly national, the aguaculture industry is characterised by multinational firms. Norway and many EU countries alike, have regulations that limit foreign ownership in harvesting. There is no such regulations in processing or in aquaculture. Alternative trade agreements between Norway and the EU may influence on foreign direct investments in the fishery industries.
Responsible Innovation and Happiness: A New Approach to the Effects of ICTs (HAPPY)
The project intends to contribute to the responsible innovation literature by carrying out a set of conceptual and empirical studies on the socio-economic effects of ICTs, considering positive impacts...
Preferential tariffs and development of Norwegian rose import from Africa
Purpose Imports of cut roses increased after Norway implemented a preferential tariff scheme for the Least Developed Countries in 2002. When the scheme was extended to more countries in 2008 – among them Kenya – imports exploded. This article studies the subsequent changes in supply channels, import costs and the way Norwegian firms imported. Design/methodology/approach Qualitative data, obtained through interviews among five rose importers, are combined with quantitative data for all importing firms and transactions in Norway for years 2003–2014. These data are analysed in light of recent economic theories on international trade. Findings When Kenya was included in the scheme, imports from Europe and domestic production in Norway decreased substantially. Imports from some African countries with low income levels also declined. Importing under GSP involves high fixed import costs due to stringent procedures. Each firm’s imports increased gradually, and over time learning may have facilitated importing. Direct trade with African producers and control over the logistics chain seem to have become more important. Research limitations/implications The analysis build mainly on data for Norwegian importers, not for African exporters. Managerial or Policy implications Simplifying the GSP procedures could increase Norwegian imports from developing countries and induce establishment of new trade relationships, perhaps also for other products than roses. Originality/value Using a mixture of original qualitative data as well as unique, detailed and comprehensive quantitative data, the article provides new insights into how a developed country’s preferential tariff reductions towards developing countries affect trade and buyer-supplier relationships.
Consequences of Investments for National Security (COINS)
How can liberal open societies reap the benefits of open economies, but at the same time protect their legitimate security interests? In the project “Consequences of Investments for National Security”...
Free trade agreements in a small, open country: The case of Norway
Negotiating free trade agreements (FTAs) has been a high political priority for Norway. Today it has agreements with 41 countries outside the European Union (EU) / the European Free Trade Association (EFTA), resulting one the world’s most extensive FTA networks. FTAs cover about 10% of Norway’s trade – a share likely to increase in the future. These agreements eliminate tariffs on a substantial number of traded products, and have gradually become more comprehensive, covering an expanding range of non-tariff areas. Hence, they may have trade-promoting effects beyond tariff reductions as such. On the other hand, the non-tariff provisions often do not go further than what has already been dealt with in other international agreements or practised domestically, so their overall effect may be limited.
Internet use, intermediaries and international trade
This study of the relationship between internet use and international trade finds that firms in many developing countries are more likely to engage in export and/or import if they use the internet as a communication tool. An ordered probit regression indicates that internet use is positively associated with direct participation in trade, as well as with indirect participation via trade intermediaries. Data on countries’ aggregate trade do not give support for the micro-findings, however: no significant association emerges between the share of internet users in a given country and that country's openness to trade.
Trade barriers or trade facilitators? The heterogeneous impact of food standards in international trade
Recent research shows that the effect of food standards can be heterogeneous across sectors or countries: they sometimes act as barriers to trade, but in other cases may lead to increased trade. Hege Medin presents empirical evidence on Norwegian seafood exports showing that foreign food standards, measured by sanitary and phytosanitary notifications to the WTO, generally have a negative impact on total exports, the number of exporters and their average exports. However, for fresh seafood, there is a positive counteracting effect. Medin presents a theoretical explanation for this, suggesting that food standards reduce consumer uncertainty about quality and safety and therefore increase demand.