Abstract: By decomposing the changes in the real exchange rate series into fundamental and transitory components (market microstructure and stochastic element) and modeling the volatility in each via a GARCH process, this paper examines how volatility in exchange rate affects the volume of aggregate and disaggregate US trade with Canada, Germany, and Hong Kong during the 1989-2002 period. The results indicate significantly different impacts of volatility due to the fundamental and transitory components of the exchange rate series on US bilateral trade. While the findings suggest heterogeneous responses of traders to volatilities arising from different components of the real exchange rate, the impact of the volatility due to the fundamental component is also found to vary across commodities, implying disparities in the inter- and intra-trading arrangements made by traders of different goods in counteracting foreign exchange risk arising from changes in the economic fundamentals.

Abstract: We examine the relationships between immigrants, cultural distance and state-level exports, employing state-specific immigrant stocks and total US immigrant stocks, separately, and a measure of cultural distance recently introduced by [Tadesse, B., & White, R. (2008b). Cultural distance as a determinant of bilateral trade flows: Do immigrants counter the effect of cultural distance? Applied Economic Letters]. A positive link between immigrants and aggregate exports is reported and, while cultural distance is found to reduce exports, immigrants partially offset the effects of cultural distance by increasing both the intensity of existing exports and the likelihood that exporting occurs. However, heterogeneity in immigrant effects is observed across cultural product sub-classifications, suggesting variation in the ability of immigrants to influence trade by overcoming information asymmetries.

Abstract: Using data from the World and the European Values Surveys, we calculate cultural distances between the US and 54 immigrant home countries and examine the influences of cultural distance and immigrant populations on US imports from and exports to immigrants' home countries during the years 1997–2004. Our study indicates that, for both US imports and exports, the trade-enhancing effect of immigrants partially offsets the trade-inhibiting effect of cultural distance. Further, decomposing our measure of cultural distance into two component dimensions and revisiting the immigrant–trade relationship, we find significant variation in the extent to which immigrants counter the trade-inhibiting influences of the underlying dimensions of culture for both US imports and exports. Our findings have the implication that by countering the trade-inhibiting influences of cultural differences between their home and host countries, immigrants exert pro-development effects.

Abstract: Using data from the 2006 Social Capital Community Survey in Duluth, Minnesota, and Superior, Wisconsin, USA, we investigate associations between individual social capital measures (attitudes on trust, formal group involvement, informal socializing, organized group interaction, social support and volunteer activity) and self-rated health after controlling for individual and economic characteristics. In particular, we address issues of social capital as an endogenous determinant of self-reported health using instrumental variables probit estimation. After accounting for the endogeneity of these various measures of individual social capital, we find that individual social capital is a significant predictor of self-rated health.

Abstract: We examine the effects of immigrants and cultural distance on US state-level exports, placing emphasis on the extent to which immigrants may offset the influence of cultural distance with respect to the initiation and intensification of exports. Our findings suggest that greater cultural differences between the US and immigrants’ home countries reduce both the likelihood that exporting occurs and, when exporting is taking place, the level of exports. Immigrants are found to exert pro-export effects that offset, at least partially, the trade-inhibiting effects of cultural distance. The estimated effects of both cultural distance and immigrants are found to be greater when the level of exports is examined as compared to when the likelihood that exporting occurs is considered; however, significant variation in the export-initiation and intensification effects of immigrants and cultural distance is reported across states.

Abstract: During the 1990s, Africa experienced a rise in tourist arrivals from 8.4 million to 10.6 million and a growth in receipts from US$2.3 billion to US$3.7 billion. According to the World Tourism Organization, the tourism industry in sub-Saharan Africa enjoyed a robust annual market share growth rate of 10% in 2006. In spite of this, there are few empirical studies that investigate the contributions of tourism to the economic growth and development of African economies. Using panel data of 42 African countries for 1995 to 2004, this study explores the potential contribution of tourism to the economic growth and development within the conventional neoclassical framework. The results show that receipts from the tourism industry contribute significantly both to the current level of gross domestic product and to the economic growth of sub-Saharan African countries, as do investments in physical and human capital. The authors' findings imply that African economies could enhance their short-run economic growth by strengthening their tourism industries strategically.

Abstract: We evaluate the impact of the unilateral trade policy concession known as African Growth and Opportunity Act (AGOA) on U.S. imports from eligible Sub-Saharan African (SSA) countries. Using U.S.-SSA countries' trade data that span the years 1991-2006, we find that AGOA has contributed to the initiation of new and the intensification of existing U.S. imports in both manufactured and non-manufactured goods and several product categories. However, compared to its import initiation impact, the import intensification effect of the Act has been marginal. Our results have important policy implication for further intensification of African exports to the U.S. markets.