Economic incentives and international trade
AbstractThis paper studies the importance of incentives as a determinant of international trade flows. We argue that barter, countertrade and foreign direct investment can be seen as efficient institutions that mitigate contractual hazards which arise in technology trade, marketing and imperfect capital markets. Paying an import with export goods rather than cash (barter) helps to overcome incentive problems that arise in debt repayment of highly indebted countries. Payment in export goods removes the anonymity of the medium of exchange and thus allows to create a collateral for the creditor. Furthermore, tying an import with an export (countertrade) helps to solve the incentive problems related to the technology transfer to developing countries. The export flow serves as a "hostage" that deters cheating on the quality of the imported technology good. The predictions of the two models are consistent with the pattern of trade of actual barter and countertrade contracts. ZUSAMMENFASSUNG - (Ãkonomische Anreize und internationaler Handel) Â´ Diese Studie untersucht die Bedeutung von Ã¶konomischen Anreizen als BestimmungsgrÃ¶Ãe internationaler HandelsflÃ¼sse. Wir argumentieren, daÃ auslÃ¤ndische Direktinvestitionen, Joint Ventures, der Barterhandel und KompensationsgeschÃ¤fte als effiziente Institutionen angesehen werden kÃ¶nnen, die Anreizprobleme vermeiden helfen, die bei dem Technologiehandel, bei der Vermarktung neuer Produkte und auf unvollkommenen KapitalmÃ¤rkten auftreten. Die Bezahlung eines Imports mit ExportgÃ¼tern, statt mit Geld (Barter), hilft, Anreizprobleme zu Ã¼berwinden, die in hochverschuldeten LÃ¤ndern bei der Schuldentilgung auftreten. Die Zahlung mit GÃ¼tern hebt die AnonymitÃ¤t des Tauschmediums auf und erlaubt somit dem GlÃ¤ubiger eine Sicherheit fÃ¼r seinen Kredit zu schaffen. Die VerknÃ¼pfung eines Imports mit einem Export (Countertrade) hilft die Anreizprobleme zu Ã¼berwinden, die mit dem Technologietransfer in EntwicklungslÃ¤nder verbund
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 42 (1998)
Issue (Month): 3-5 (May)
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Web page: http://www.elsevier.com/locate/eer
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