Benefits Of Liberalization Research Articles

A Bridge Too Far: Africa’s Food Security and the WTO Agreement on Agriculture

Food and agriculture were largely treated as exceptions from the GATT disciplines. The GATT Uruguay Round Agreement on Agriculture (AoA) initiated a long-term process of trade liberalisation in agriculture. Food security is among the objectives of the AoA. Trade liberalisation in agriculture, the removal of protectionism, and tariffs in agricultural trade are envisioned as food security enhancing. However, although African countries embraced the WTO AoA, they have failed to liberalise their agricultural trade in line with the disciplines of the AoA. African countries have missed out on the benefits of agricultural liberalisation, among them being food security. As a result, Africa’s agricultural trade is anaemic and, coupled with her low agricultural productivity, Africa is plagued by hunger.

The Mediating Effect Of Market Liquidity On The Relationship Between Financial Liberalization And Stock Market Returns Among East Africa Community Member Countries

The motivation for this study stems from the critical role of financial markets in economic development and the need to understand the factors influencing stock market performance in the East African Community (EAC) member countries. Financial liberalization, market liquidity, and macroeconomic stability are pivotal in shaping stock market returns. However, empirical studies examining these relationships within the EAC context are limited, prompting this comprehensive analysis. The general objective of this study was to investigate the effect of financial liberalization, market liquidity, and macroeconomic factors on stock market returns among EAC member countries. The study was anchored on the theory of financial liberalization, neoclassical theory, efficient market hypothesis, behavioral finance theory, and the general theory of employment, interest, and money. Data were collected from secondary sources, including financial reports, stock exchange databases, and relevant economic databases, covering the period from 2002 to 2021.The study employed fixed-effects regression models, chosen based on the Hausman specification test, to control for unobserved heterogeneity across countries. Baron and Kenny’s approach was used to test for mediation and moderation effects. The analysis involved examining the direct and, mediating relationships between the key variables. The findings revealed that financial liberalization significantly and positively affects stock market returns. Conversely, market liquidity was found to mediate this relationship, enhancing the positive effects of financial liberalization. The study concludes that financial liberalization is a crucial determinant of stock market performance in the EAC region. Market liquidity plays a significant role in amplifying the benefits of financial liberalization. For policymakers, the study recommends policymakers in EAC should focus on developing infrastructure that supports efficient trading systems. This recommendation is based on the finding that higher market liquidity significantly boosts the positive effects of foreign assets and liabilities on stock market returns

Impact of Trade Liberalization Policies on Investment and Development in Developing Countries

Purpose: The aim of the study was to analyze the impact of trade liberalization policies on investment and development in developing countries Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Trade liberalization policies have led to increased foreign direct investment (FDI) inflows and export opportunities in developing countries. However, they have also posed challenges such as heightened competition and vulnerability to external shocks. The effectiveness of trade liberalization policies varies across countries and depends on factors such as institutional capacity, infrastructure, and trade-related regulations. Unique Contribution to Theory, Practice and Policy: Dependency theory, institutional theory & stages of economic development theory may be used to anchor future studies on the impact of trade liberalization policies on investment and development in developing countries. Policymakers should prioritize the design and implementation of targeted interventions aimed at maximizing the benefits of trade liberalization while mitigating its potential adverse effects. Moreover, policymakers should prioritize investments in education, healthcare, and social protection to enhance human capital development and ensure that the benefits of trade liberalization are equitably distributed across society

POLICY OF FOREIGN ECONOMIC COOPERATION OF THE GOVERNMENT OF THE REPUBLIC OF KOREA WITH ASEAN

The Republic of Korea has achieved economic growth and development thanks to the benefits of trade liberalization within the framework of a multilateral trading system. However, it faced a new international trading environment with the emergence of neoprotectionism. Initially, neoprotectionism was promoted by developed countries, but now it is becoming a common phenomenon in the international trading environment. In particular, the political and economic conflicts between the United States and China are forcing a radical change in the foreign trade policy of the Republic of Korea. The prolonged confrontation between the two largest markets for the South Korean economy has reinforced the need to review the foreign economic policy of the Government of the Republic of Korea. In response to changes in the international trading environment, the Government of the Republic of Korea was forced to develop and promote new directions of foreign economic policy for the development of the multilateral trading system.

Free Trade and Subnational Development: Economic Activity and Human Welfare

ABSTRACT This paper delves into the subnational relationship between free trade agreements (FTAs) and human development worldwide. Utilizing a difference-in-differences and an event-study approach with high-spatial-resolution land-cover data and a comprehensive time series of national-level FTA indicators for 207 countries, the study quantifies the effects of FTAs on subnational development. The findings indicate a small negative impact of FTAs on the Human Development Index but a notable positive impact on economic activity, with urbanized regions benefiting the most. Unequal and more vulnerable regions grapple with declining human development indicators. The depth of FTAs does not sway these outcomes. These patterns raise questions about the inclusivity and equitable distribution of the benefits of trade liberalization. While prior literature has examined the national implications of FTAs, this paper provides insight into the subnational repercussions of FTAs and emphasizes the role of inequality in hindering holistic developmental benefits from FTAs.

Bollywood in the neoliberal era: changing discourses on multiculturalism, terrorism, and nationalism in ‘Dil Se … ’ (1998) and ‘Fanaa’ (2006)

ABSTRACT Indian nationalism has remained, for long, an important subtext to Bollywood cinema. However, whether Bollywood cinematic output could be considered as Indian national cinema has encouraged very divisive academic discourses. When Bollywood received the status of an Industry in 1998 in keeping with the promise made in the BJP 1998 electoral manifesto (Bharatiya Janata Party, 2016, p. 232–233), it appeared that the benefits of Economic Liberalisation could finally be enjoyed by the Bombay film establishment. By focusing on Mani Ratnam’s Dil Se … (1998) and Kunal Kohli’s ‘Fanaa’ (2006) this paper shall explore in detail how the nascent neoliberalism affected the discourse of Indian nationalism on the Bollywood screen through binary formation, and Othering of minorities; and how such strategies were incorporated within Hindutva style of communal identity formation in the wake of the political discourses engendered by the 2001 Parliament Attack.

Liberalization and Global Business Dilemma in Third World Countries: A PEST Analysis

Global business plays a critical role in advancing the Sustainable Development Goals (SDGs) set forth by the United Nations. The SDGs represent a universal call to action to end poverty, protect the planet, and ensure prosperity for all by 2030. Global businesses collaborate with governments, civil society organizations, and other stakeholders to address complex global challenges and achieve the SDGs. By fostering partnerships and multi-stakeholder initiatives, they contribute to SDG 17 (Partnerships for the Goals) by leveraging resources, expertise, and networks to drive sustainable development. Many global businesses are increasingly adopting sustainable practices to minimize their environmental footprint and promote responsible consumption and production. By implementing sustainable supply chain management, reducing waste, and adopting eco-friendly technologies, they contribute to SDG 12 (Responsible Consumption and Production). Liberalization and global business are interrelated processes that shape the dynamics of international trade, investment, and economic integration. While liberalization creates opportunities for global businesses to expand their operations and access new markets, it also presents challenges related to competition, regulation, and sustainability that require careful management and policy responses in third world countries. This has elicited a mixed rection on the role of global business on development of nations. Based on this, the purpose of this study is to examine the extent to which liberalization has impacted the political, economic, social, and technological advancement of third world countries. A literature review has been adopted for this purpose. The study concludes that the impact of liberalization of global business on third world countries is complex and varies depending on factors such as governance structures, economic policies, social dynamics, and technological capabilities. This study recommends that by adopting a holistic approach that takes into account the interplay between political, economic, social, and technological factors, governments in third world countries can maximize the benefits of liberalization while mitigating potential risks and promoting sustainable development.

A STUDY ON THE IMPACT OF TRADE LIBERALISATION IN INDIA

The impact of trade liberalization in India has been a subject of significant academic and policy interest, particularly since the early 1990s when the country embarked on a path of economic reforms. This research paper explores the multifaceted consequences of trade liberalization on India's economy. Through a comprehensive analysis of empirical data, economic indicators, and scholarly literature, the paper examines both the positive and negative impacts of trade liberalization. The positive effects of trade liberalization are evident in India's impressive economic growth, driven by increased exports, foreign direct investment, and enhanced efficiency and competitiveness of industries. The opening of international markets has expanded consumer choices and improved product quality. Export growth has bolstered foreign exchange reserves and positively influenced the balance of payments. However, this paper also delves into the challenges posed by trade liberalization. It highlights the vulnerability of the Indian economy to external shocks due to increased global integration. Income inequality has widened as the benefits of liberalization have not uniformly reached all segments of society. Job displacement, particularly in industries facing stiff competition from imports, and agricultural challenges arising from competition with cheaper imported agricultural products, are significant concerns. The paper emphasizes the need for policymakers to address the negative consequences of trade liberalization by implementing measures to mitigate income inequality, support displaced workers, and strengthen the agricultural sector. The method used here was the empirical method. The sampling method taken here was the convenient sampling method and the sample size was 200. The sampling frame was established within the city of Chennai, located in the state of Tamil Nadu. The dependent variables are level of awareness regarding the impacts of trade liberalization in India, positive impact of trade liberalization on India's GDP, negative implications of trade liberalization on the Indian economy, main objectives of economic liberalization are the effective distribution of resources and competitive advantages and the independent variables are age, gender, educational qualification, salary and occupation. The research tools used here are simple bar charts, independent sample T test, univariate analysis of variance and correlation . It also underscores the importance of strategic economic planning to manage potential trade imbalances and prevent undue concentration of economic power. In conclusion, this research paper provides a comprehensive analysis of the impact of trade liberalization in India, highlighting its dual nature bringing both opportunities and challenges. By examining empirical evidence and drawing insights from scholarly sources, the paper contributes to a nuanced understanding of the complex relationship between trade liberalization and economic outcomes in India. KEY WORDS: Trade liberalisation, Global market, Trade barriers, Domestic sectors, Gross Domestic Product (GDP).

Capital market liberalization and systemic risk of non-financial firms: Evidence from Chinese Stock Connect scheme

This paper examines the causal effect of capital market liberalization on the systemic risk of non-financial firms (NFFs), a topic that has received little attention in the literature. We exploit the launch of China's Stock Connect scheme as a quasi-natural experiment to identify the causal effect and find that capital market liberalization significantly raises the systemic risk of NFFs in China, especially for those with more concentrated supply chains and more reliance on trade credit. We explain this result by three main channels: increased market concentration, interfirm connectedness, and exposure to financial shocks. We also provide evidence that the inquiry letter and the Stock Connect Northbound Investor ID Model system, two regulatory measures implemented during the liberalization of China's capital market, mitigate the adverse effect of liberalization on the systemic risk of NFFs. Our findings offer new insight into the nexus between financial liberalization and instability and highlight the importance of strengthening regulations of capital markets to enhance the benefits of liberalization and reduce its risks for economic and financial stability.

Liberalisation and spatio- temporal patterns of air traffic flow from Nigeria to West Africa

Abstract The liberalisation of aviation policies across Africa has had a significant impact on air traffic flow within the region. This study aims to examine the effects of this policy, with a specific focus on Nigeria’s regional connectivity to other West African countries. By analyzing data from the pre and post-liberalisation eras, the study aims to determine the changes in passenger and aircraft movement and evaluate the significance of the policy on Nigeria’s sub-region. The study utilizes a longitudinal data set covering the period between 1988 and 2018. This data is divided into two eras: the pre-liberalisation era (1988-2000) and the post-liberalisation era (2001-2018). To assess the impact of liberalisation, a t-test is conducted on the data, comparing the air traffic flow patterns before and after the implementation of liberalisation policies.The findings reveal a substantial improvement in the air traffic flow of passengers and aircraft from Nigeria to other West African countries since the introduction of liberalisation policies. The growth patterns observed in the post-liberalisation era exhibit a linear trend, indicating sustained progress. However, uncertainties arising from hazards in air transport operations can influence the growth patterns.The study underscores the positive impact of African aviation liberalisation policy on air traffic flow, particularly in the regional context of Nigeria’s connectivity with other West African countries. The results demonstrate significant improvements in passenger and aircraft movement. However, to fully capitalize on the benefits of liberalisation, regional efforts and an improved framework need to be intensified. This will ensure sustained growth and maximize the advantages of liberalisation in the aviation sector.

The European leniency policy as a mechanism for protecting the rights and legitimate interests of bona fide entrepreneurs in the context of the provisions of the status of a candidate country for the accession of the Republic of Moldova to the European Union

The economic development of a state is impossible without ensuring a favorable investment climate, without ensuring non-discriminatory conditions for conducting business, including by ensuring fair competition between entrepreneurs and commercial companies.The Association Agreement between the Republic of Moldova and the EU states that "The Parties recognize the importance of free and undistorted competition in their commercial relations. The parties recognize that anti-competitive business practices are likely to distort the proper functioning of markets and reduce the benefits of trade liberalization." Starting from the assumed obligations, including the requirements regarding the harmonization of national legislation, in 2012 the parliament of the Republic of Moldova elaborated and adopted the new competition law no. 183/2012, the normative act invoked being, at that stage, an absolutely innovative one, succeeding a series of previous normative acts intended to regulate relations in the field of competition. The provisions of the analyzed law establish new approaches and attitudes, including principles, procedures and mechanisms, taking over the provisions of articles 101-106 of the Treaty on the Functioning of the European Union (TFEU). The law establishes the legal framework for the protection of competition, including the prevention and countering of anti-competitive practices and unfair competition, the realization of economic concentrations on the market, establishes the legal framework regarding the activity and competence of the Competition Council and the responsibility for the violation of the legislation in the field of competition. The main purpose of competition policies is to prevent companies from committing anti-competitive acts. Following this objective, most of the member states of the European Union have allocated powers to the national competition authorities/agencies in order to achieve two main objectives: ensuring the dissuasive effect of sanctions in order to prevent the commission of anti-competitive acts and taking the necessary measures in order to stop them. Our legislator took over the same positive practices adopted at the EU level and in the Competition Law regulated Leniency in art. 84. The article is dedicated to the analysis of the main provisions aimed at the leniency policy applicable in the Republic of Moldova, revealing the essence of this institution, the author also coming with some conclusions derived from the analysis of the national anti-competitive and criminal legislation.

Capital account liberalisation and systemic financial risk: evidence from 24 countries

Capital account liberalisation can give rise to uncertainty in capital flows, which may lead to an accumulation of financial risks. This study measures the systemic financial risk indices using the coefficient of variation method with data of 24 countries from 2003 to 2019 and the impact of capital account liberalisation on systemic financial risks using the panel threshold model. Evidence shows that systemic financial risk indices vary heterogeneously across countries. The systemic financial risk indices of high-income countries are lower than those of middle- and low-income countries. Second, capital account liberalisation has an asymmetric effect on systemic financial risk with a double threshold. Low-intensity and high-intensity capital account liberalisation increases systemic financial risk. However, medium-intensity capital account liberalisation is effective in reducing systemic financial risk. Third, the heterogeneity results suggest that capital account liberalisation is conducive to reducing the financial risk of high- and middle-income countries and has the opposite effect on low-income countries. Therefore, this study recommends that countries adjust the intensity of capital account liberalisation according to their national conditions. It is necessary to establish a regulatory system for cross-border capital flows and maximise the benefits of liberalisation while safeguarding financial market stability.

FINANCIAL LIBERALIZATION, DEMOCRATIC INSTITUTIONS, AND INCOME INEQUALITY: NEW INSIGHTS FROM PAKISTAN

This study investigates the relationship between financial liberalization, democratic institutions, and income inequality in Pakistan by using a two-state Markov switching (MS) methodology for the period 1972–2017. The dynamic factor modelling approach is used to construct the financial liberalization index. The impact of the Global Financial Crisis (GFC) of 2007–2008 on financial liberalization–institutions–inequality nexus was checked using the Chow breakpoint test. The result reveals no significant effect of GFC on Pakistan’s economy. Results from the MS model divulge that financial liberalization lessens income inequality in the high-income inequality regime as well as in the low-income inequality regime. The result further discloses that democratic institutions enhance income inequality in high-income inequality regimes while reduce income inequality in the low-inequality regime. While studying the joint role of democratic institutions and financial liberalization, it is observed that the weak role of democratic institutions offsets the benefits of financial liberalization in the high-income inequality regime; however, institutions and financial liberalization are supportive in reducing income inequality in the low-inequality regime. Besides, the results also confirm the existence of Kuznets hypothesis in Pakistan. Therefore, there is a need for further reforms to revamp institutions to reduce income inequality in Pakistan.

THE IMPACT OF TRADE LIBERALIZATION ON EMPLOYMENT AND WAGES: PANEL EVIDENCE FROM DEVELOPING COUNTRIES

Since the 1990s, developing countries shifted their trade policy from inward-oriented strategy to outward-oriented strategy because of the conditions imposed by international lending institutions for granting loans to developing countries. The current study aims to investigate the impact of trade liberalization on employment and wages within the 30 developing countries over the period 2000 to 2019. To investigate empirical connections between trade, employment and wages, reduced form equations of labor demand and wages have been devised. The study has applied Generalized Method of Moments estimation techniques to estimate labor demand and wage equations to tackle the problem of endogeneity. The empirical findings of the study predict that trade liberalization has significant adverse effect on both labor demand and wages. However, the magnitude of the influence of trade on both one is small. Similarly, wages, employment level, output and real exchange rate are affecting employment and wages significantly. While ILO ratifications are significant only when KOF trade globalization is used as measure of liberalization, and time trend is significant only when weighted tariff rate is used as a measure of liberalization. To craft a multilateral and effective policy development, both real output and workers’ skill should be the focus of economic managers of the developing economies to reap the benefits of trade liberalization.

Tariff Pass-through in Wholesaling: Evidence from Firm-level Data in Japan✰

Tariff pass-through is critical for considering the benefits of trade liberalization, the beneficiaries, and the extent. This study empirically examines the tariff pass-through in wholesaling through the wholesale firm-level data in Japan. In particular, the study focuses on wholesalers’ margin ratio, that is, (sales – procurements) / sales. We address the endogeneity concerns on the measurement errors of the study variables of margin ratio and tariffs. Consequently, the study found that importing wholesalers significantly raised their margin ratio against tariff reduction. On average, a 1 percentage point reduction of tariffs raised the margin ratio by approximately 0.25 percentage point. This rise is equivalent to that of sales prices to procurement prices by about 0.34 %, indicating that Japanese wholesalers capture one-third of the tariff rent. However, the study also found that a tariff reduction lowers the margin ratio of wholesalers who procure their products from domestic producers.

Benefits of Economic Liberalization in Growth and Development of Industry: With Reference to Butwal Industrial Area of Nepal

Economic liberalization policy is important to speed up the development activities. Nepal has been following the policy of economic liberalization since the mid-1980s which was accelerated with the start of 1990s. Nepal adopted economic liberalization to minimize public expenditure burden of loss-making public enterprises, mobilize private savings, investments, and FDI (Foreign Domestic Investment) as well as to meet Multilateral Donors conditions of economic reform. The study was conducted to identify the benefit of economic liberalization in industrial growth and development in Nepal. The study was conducted in the Butwal area of Province 5. It was a cross-section study based on the quantitative design. There was total 385 respondents selected from among the industrialists, traders, and bankers. The result shows that there were positive impactson the various economic indicators of industry like quantitative restrictions in trade had been removed, bilateral trade agreement facilitated free flow of goods and services, deregulated the monopoly of market, controlling in price structure, privatization of public services, flexibility in the exchange rate, elimination of import license and quotas, liberalization of foreign investments, High and sustained growth through market-based resource allocation, infusion of competition in the economy, reduction of state domination, and encouragement of private participation in economic activities were the added advantages of liberalization. There was significant difference in the response of industrialists, traders and bankers on benefit of economic liberalization in industrial growth and development in Nepal such as promotion of free trade, deregulation of the monopoly market, elimination of subsidies, price controls and other more benefits.

Skill-biased Impact of Trade Liberalization on Employment in the manufacturing sector of Pakistan

This study explores the association between trade liberalization and skilled employment from 1990 to 2005. Our estimation approach analyzes how skilled employment is affected by the protection rate. Trade liberalization and skilled employment are associated. Liberalization has increased skilled employment in the manufacturing sector of Pakistan. The findings also indicated a significant link between skilled labor and lagged policy. The results are also robust after including the different trade-related variables. The policy insinuation is that the government should provide free education programs and technical packages in their economies to gain from the benefits of trade liberalization.

Do protectionist trade policies integrate domestic markets? Evidence from the Canada-U.S. softwood lumber dispute

We consider the effects of protectionist trade policies on international and domestic market integration, using evidence from the long-standing softwood lumber trade dispute between Canada and the United States. The benefits of trade liberalization are widely acknowledged, including better domestic-to-foreign price transmission due to reduced tariffs and lower trade costs between countries. Yet in recent years we see efforts to protect specific domestic groups, including producers, through a revival of protectionist trade policies. Such policies could improve the domestic price transmission across domestic markets as consumers may seek lower-cost alternatives domestically. We investigate these ideas using a bi-variate three-regime threshold vector error-correction model to examine the spatial price transmission between Canadian and U.S. markets and within U.S. domestic markets. We do that by introducing a structural break at the start of an effective free trade period within our sample. The results suggest that duty-free treatment for imported Canadian softwood lumber substantially lowers the transaction costs between the two nations. Prices are more easily transmitted from the Canadian market to the U.S. at a higher speed, but the speed of price transmission in the reverse direction is not statistically significant. The U.S. domestic market experienced a higher speed of price adjustment across domestic regions prior to the free trade period, which provides evidence that protectionist policies lead to better domestic market integration.

Revisiting the Relationship between Trade Liberalization and Taxation

This paper explores the dynamic effects of trade liberalization on tax revenue using a worldwide panel dataset. Results point to statistically significant negative effect of liberalization on (non- resource) tax revenues in the short term and no significant effect in the medium term. Liberalization also alter the tax structure tilting revenues toward indirect taxes away from direct ones. Economies which have implemented value added taxes prior to liberalization have mitigated its negative effects on tax revenues. The evidence is supportive of the complementarity role of state capacity to reap the benefits of liberalization.

Using genetic information to inform policy on cannabis

Using genetic information to inform policy on cannabis