Bilateral Trade Relations Research Articles

The Impact of Bilateral Trade Relation of USA-China From 1979 to 2020

This essay has investigated the bilateral trade relation of China and the USA and the global impact. By setting three main periods - 1979, 2018 and 2020. The groundbreaking trade agreement signed in 1979 laid a solid foundation for the integration of the cone (here, the term "cone" may refer to a specific economy or region, but for the sake of generality, it is not specified) into the global economic system. Through the analysis of relevant data, it becomes evident how profoundly this agreement has impacted and benefited the economies of both China and the United States. The agreement not only facilitated rapid growth in bilateral trade but also deepened cooperation between the two countries in various fields such as investment, technological exchanges, and market access, thereby injecting robust momentum into the prosperous development of the Chinese and American economies. 2018 as the turning point of the bilateral relations with China, demonstrates the reason behind and further competition between the two nations. The 2020 Phase One deal has addressed the imbalances and the protection of the US economy, compared the focus of the 1979 trade agreement and deal, then evaluated the actual effect of the deal. The method used in this essay is mainly through comparison on date and analyhsis on specific policy. This essay has found that compromise is the main negotiation between two countries and the future competition in technology sector or tele-communication sector is inevitable.

Trade Potential in the Bilateral Relationship Between Indonesia-South Korea (Perspective: SITC Agregat 1 Digit) 2013-2022

The Republic of Indonesia and South Korea have engaged in a bilateral cooperation spanning 50 years across diverse domains. Despite the success of this collaboration in augmenting the overall trade between the two nations in alignment with their initial economic objectives, the trajectory of trade development has not consistently followed a linear pattern. This study aims to elucidate the trading dynamics between Indonesia and South Korea from 2013 to 2022. This period was selected as it reflects significant dynamics in bilateral trade relations as well as global economic fluctuations that influenced the trade patterns of both countries. This is achieved through a comprehensive analysis utilizing methodologies such as the Grubel-Lloyd Index, Trade Balance Index (TBI), Trade Complementarity Index (TCI), and Revealed Symmetric Comparative Advantage Index (RSCA). The research outcomes reveal a high degree of industrial interrelatedness within 10 commodity groups, with 7 exhibiting robust integration and 3 displaying varying degrees of integration ranging from moderate to weak. Despite the sustained high level of compatibility in the trade structure, discernible fluctuations are observed in trade surpluses and deficits. The analysis of the Revealed Symmetric Comparative Advantage Index highlights the absence of significant comparative advantages for Indonesia across the majority of the analyzed commodities. Notwithstanding marginal alterations in the Product Mapping classification, statistical analyses of (IIT), TBI, TCI, and RSCA underscore bilateral trade's nuanced and dynamic nature, with annual fluctuations necessitating focused attention.

USA – Poland: Bilateral Trade and Economic Relations in the New Realities

The article is devoted to analyzing the current state of affairs of economic cooperation between USA and Poland. The author examines the bilateral economic relations, including their main forms, volume, dynamics and factors determining their recent developments. The large scale and mutual benefits of the cooperation are highlighted here. The author concludes that the active participation of the U.S. and Poland in global politics, as well is their efforts to promote bilateral trade and economic ties, indicate their close allied relationship in both economic and political-military affairs, notwithstanding a number of economic disagreements. Their economic cooperation is not transitory, it is built upon a long-term commitment.

The impact of trade liberalization on China–ASEAN trade relations along the belt and road: An augmented gravity model analysis

While trade liberalization has become increasingly important in global economic integration, little is known about its specific impact on China–ASEAN bilateral trade relations within the Belt and Road Initiative framework, particularly regarding cultural factors. This study addresses this gap by examining how trade liberalization affects bilateral trade dynamics between China and ASEAN nations, with special attention to linguistic and religious proximity as potential moderators. Using an augmented gravity model and panel data from 2012 to 2022, we find that increased trade liberalization significantly enhances bilateral trade volumes, with stronger effects in export trade compared to imports. Moreover, shared linguistic foundations and religious beliefs amplify these positive effects, particularly in ASEAN countries with lower economic development levels. These findings provide crucial insights for policymakers seeking to strengthen regional economic integration and optimize trade cooperation strategies along the Belt and Road.

Overlapping community detection in weighted networks via hierarchical clustering.

In real-world networks, community structures often appear as tightly connected clusters of nodes, with recent studies suggesting a hierarchical organization where larger groups subdivide into smaller ones across different levels. This hierarchical structure is particularly complex in trade networks, where actors typically belong to multiple communities due to diverse business relationships and contracts. To address this complexity, we present a novel algorithm for detecting hierarchical structures of overlapping communities in weighted networks, focusing on the interdependency between internal and external quality metrics for evaluating the detected communities. The proposed Graph Hierarchical Agglomerative Clustering (GHAC) approach utilizes maximal cliques as the basis units for hierarchical clustering. The algorithm measures dissimilarities between clusters using the minimal closed trail distance (CT-distance) and the size of maximal cliques within overlaps, capturing the density and connectivity of nodes. Through extensive experiments on synthetic networks with known ground truth, we demonstrate that the adjusted Silhouette index is the most reliable internal metric for determining the optimal cut in the dendrogram. Experimental results indicate that the GHAC method is competitive with widely used community detection techniques, particularly in networks with highly overlapping communities. The method effectively reveals the hierarchical structure of communities in weighted networks, as demonstrated by its application to the OECD weighted trade network, which describes the balanced trade value of bilateral trade relations.

An Analysis of Bilateral Trade Relation between Turkey and Russia: Challenges and Opportunities of Russia-Ukraine War

Purpose: This study examines Turkey's bilateral trade intercourse with Russia in order to identify potentialities and problems for Turkey caused by the Russia-Ukraine War. Method/Design/Methodology/Approach: In the course of the study, with the help of descriptive statistics and calculations of trade indices such as trade intensity and trade complementarity indices, the current state of Russian-Turkish trade was examined. Afterwards, commodity sectors in which supply is expected to fall due to international companies’ suspension of businesses were identified. Next, the revealed comparative advantage index and its dynamic form were calculated to assess Turkey's potentialities to export commodities of the identified sectors to Russia and to highlight commodities groups where export policy should be improved. Thus, the study considers Russia and Turkey not as competitors, but as partners. Findings: It has been concluded that the countries have tight-connections and, to a certain extent, are dependent on one another. Both Russia and Turkey can benefit from further intensifying bilateral trade and improving partnership in other spheres as well. Originality: There is substantial literature comparing Russia and Turkey with other countries, trade blocks or with each other, mainly these two countries are counterposed from a competition perspective. This article, on the contrary, evaluates how cooperation and bilateral trade can improve the economic situation of both Russia and Turkey.

From a Spoke to a Hub: The Case of South Korea

A few East Asian newly industrialized countries that used to belong to the Global South not only have joined the Global North but also have organized their own production chains in specific industries. Given the imperialist and exploitative nature of global production chains established by the Global North, it should be questioned whether the production chains organized by the East Asian newly industrialized countries are free from the innate nature of production chains. This article adopts a multiregional input-output analysis to examine the bilateral trade relationship between Korea and Vietnam. It finds that the Korean economy has unequally captured the benefits from the bilateral trade with Vietnam in terms of the domestic value-added share and the spillover effect derived from the final demand for Vietnamese products in the textile and electronics industries. JEL Classification: F62, F63

Language Barriers Impact on Trade Disputes: Evidence from the WTO Trade Disputes Cases

This study examines the impact of language barriers on trade disputes using a panel data set of 129 countries and 565 trade dispute cases from the World Trade Organization (WTO) spanning the years 1995 to 2018. The language barrier index is employed as a metric to assess the extent of language barriers between trade nations, while the panel probit model is utilized for conducting the empirical analysis. The empirical evidence indicates that language barriers exert a substantial and favorable impact on trade disputes. Language obstacles in trading countries have been found to heighten the probability of trade disputes, indicating that language barriers contribute to increase trade costs and hamper bilateral trade relations. Moreover, the Armington model is employed to elucidate the theoretical aspects of the impact of language barriers on trade disputes, with trade costs serving as the mediating factor. The findings of the study also validated the notion that linguistic barriers contribute to an elevated likelihood of trade disputes. This research study presents empirical findings regarding the influence of linguistic barriers on trade disputes. Additional investigation can be undertaken to examine the impact of language competency on trade disputes, given the substantial role that language plays in the realm of international trade.

India-Vietnam Bilateral Trade and Investment Relations: An Empirical Analysis

The relations between India and Vietnam have been strengthening in both social and economic aspects. The bilateral trade and investment relations between the two countries are on an upward trend. In this context, the present paper analyzes the trade intensity between India and Vietnam and provides an overview of the investment relations. The study also examines the impact of the host country's GDP and exchange rate on the home country's export level for both India and Vietnam using the Multilayer Perceptron Neural Network technique of Artificial Neural Network. The main findings of the study show that before 2017, India's exports are more intensive than imports with Vietnam and Vietnam's imports are more intensive than exports with India. However, since 2017, this trend is slightly reversed and Vietnam's exports are more intense than imports with India. Furthermore, it is found that the host country's GDP and exchange rate have a significant impact on India and Vietnam's bilateral exports.

Implications of EU Economic and Financial Sanctions against Russian Federation

In view of the annexation of Crimea by the Russian Federation and the provocation of the conflict in Donbas in 2014, the EU adopted and implemented Council Regulation (EU) No 833/2014 of 31 July 2014 in reaction to Russia’s measures undermining Ukraine’s territorial integrity as well as the sovereignty and independence of the country. This period is characterized by erosion of bilateral trade and economic relations between the EU and Russia. After the beginning of Russia’s war against Ukraine in February 2022, the European Union adopted a new series of economic and financial sanctions towards Russia: restrictions on trade; a SWIFT ban for certain Russian banks; restrictions on Russia’s access to the EU’s capital and financial markets and services; a ban on transactions with the Russian Central Bank and others. In the autumn of 2022 the conflict further escalated with the so-called “partial mobilization” in Russia and the further unlawful referenda for annexation of Ukrainian territories. Two years later (February 2024), the war is still raging and the European Union continues its policy of adopting new packages of sanctions against Russia.

Cross-Border Trade Disputes: A Comparative Analysis of Indonesia and Australia

This comparative analysis delves into the intricate landscape of cross-border trade disputes, focusing on Indonesia and Australia. As two significant players in the global trade arena, understanding their dispute resolution mechanisms is crucial for fostering bilateral and multilateral trade relationships. The study examines the legal frameworks, institutional mechanisms, and cultural factors influencing trade dispute resolution in both countries. Indonesia's approach may reflect its unique socio-political context, while Australia's system could showcase its commitment to transparency and adherence to international trade norms. Key aspects explored include the role of governmental bodies, such as trade ministries and dispute settlement panels, as well as the utilization of alternative dispute resolution methods like arbitration and mediation. Moreover, the analysis delves into the effectiveness and efficiency of these mechanisms in resolving disputes promptly while maintaining fairness and equity for all parties involved. Comparisons are drawn between Indonesia and Australia in terms of legal precedents, enforcement mechanisms, and the level of stakeholder engagement in the dispute resolution process. Additionally, cultural nuances and historical contexts are considered to understand how these factors shape the negotiation and resolution of trade conflicts. By synthesizing these insights, the study aims to provide policymakers, trade practitioners, and academics with a comprehensive understanding of the strengths and weaknesses of each country's approach to cross-border trade dispute resolution. Ultimately, it seeks to contribute to the development of best practices and strategies for enhancing trade relations and promoting economic cooperation between Indonesia and Australia, as well as other nations globally.

A political economy analysis of changes and continuities in Iran–Africa trade relations: a case of South–South dependency?

This paper provides a political economy analysis of the bilateral trade relations and patterns of exchange that existed between Iran and Sub-Saharan Africa (SSA) from 1962 to 2021. The paper contributes to the growing literature on Iran–Africa relations by empirically delineating not just the changes, but also the continuities between Iran and its African trading partners before and after the Iranian Revolution. It also adds nuance to the broader scholarship on South–South cooperation by showing the disparity between the rhetoric of South–South solidarity and reciprocity between Iran and SSA, on one side, and their low and fluctuating trade volumes, on the other. These volumes resulted from historical inertia or path dependency and structural factors, including trade complementarities and geopolitical conditions, more than demographic, cultural, or religious realities. They were also shaped by the agency and decision-making of Iranian and African leaders and officials regarding the extent to economically engage with each other.

CHINA’S TRADE RELATIONS WITH UKRAINE

Purpose. The purpose of the article is the study of trade relations between China and Ukraine, the analysis of the volume of bilateral trade and the product structure between trading partners, as well as the outline of challenges and opportunities for the development of future trade cooperation. Methodology of research. The article uses the method of systematic literature analysis to collect, compare and analyze relevant literary materials, including data on trade and scientific research of the two countries in recent years, for a deeper understanding of the process of development of bilateral trade relations and their structure between China and Ukraine. At the same time, the method of theoretical generalization was used to understand the challenges and opportunities that exist in trade relations between countries, the abstract and logical method – to develop proposals for solving problems and promoting cooperation; graphic method – for visual presentation of research results. Findings. Through the analysis of the development process of trade relations, the situation of trade products, the challenges faced and the prospect of the future, this paper draws the following research results: trade relations develop rapidly, and the bilateral trade volume continues to grow; trade relations face challenges such as trade barriers, geopolitical factors and political uncertainties; the cooperation between the two sides has opportunities in various fields and at various levels, which can promote economic growth and international competitiveness. Originality. Trade relations between China and Ukraine have been comprehensively and in detail analyzed, focusing on achieving bilateral mutually beneficial cooperation and strategies for overcoming challenges; proposals were developed regarding future cooperation and the practical significance of its prospects. Practical value. The main provisions of the study contain useful reference information for government officials (developed proposals for strategic planning and trade cooperation), business structures (analysis of the market situation and opportunities for trade cooperation can be used to adjust business strategy and expand the market) and academic researchers (research methods and analytical base can be used as reference materials for a deeper study of trade relations between countries). Key words: belt and Road Initiative, China-Ukraine relations, export, import, trade barriers, trade cooperation, trade relations.

한국의 중석수출과 한미중석협정의 체결

This study examines the historical context and process leading to the signing of the US-ROK Tungsten Agreement, which legitimized American intervention in Korea’s key natural resource and resulted in imbalances in trade relations. Tungsten emerged as a pivotal strategic mineral in the 20th century for weapons production. In WWII, the United States classified the mineral as a ‘strategic material’ and sought to secure a stable stockpile. The communization of China expedited the search for alternative sources, with South Korea emerging as a non-communist alternative after heavy reliance on Chinese tungsten until 1947. Efforts to faciliate exports of Korean tungsten ores to the US commenced under the US Military Government in Korea (USAMGIK), gaining momentum during the Korean War and culminating in the signing of the Agreement in 1952. The Korean War marked two pivotal shifts in the US-SK bilateral trade relationship as well as in the SK tungsten mining industry. First, the Korean War halted US aid agencies’ plans to rehabilitate Korean economy. Simultanesously, the global surge in demand for tungsten emphasized the need for an exclusive purchase contract to ensure seamless war effort and sustained ore production. Conversely, the Korean War stopped the increasing trend in ore exports since 1948, removing a major source of SK government’s foreign exchange. However, as the conflict extended, discussions about postwar reconstruction initiated, with SK tungsten providing a crucial financial asset for reconstruction efforts. The signing of the Agreement led SK into an exclusive trade relationship with the US. However, this outcome did not arise from unilateral intent but rather exemplified a conflict of interests between SK and US. This paper calls for understanding geopolitical considerations and nuanced negotiations that shaped the exclusive trade ties during this critical period.

Assessing Direction of India’s Exports: A Dynamic Framework

Decision on trade policies with emphasis on bilateral trade relationships needs knowledge about the direction of exports of the exporting country along with associated changes like degree of specialisation, etc. The direction of export for a product or sector can be taken as a set consisting of destination countries (DCs) and corresponding export potentiality. The set reflects the direction, composition and value of trade potentials and helps to decide export-boosting measures of several sectors, focusing on a country. The paper suggests the use of ratio and geometrically aggregated revealed comparative advantage (RCA) values for individual and combined sector growth (positive or negative), respectively. This approach overcomes the static properties of RCA and shift-share analysis typically used to reveal the patterns of trade direction. The pattern is investigated by geometric aggregation of ratios of RCA at the current period over the base period for each sector. The index follows log-normal distribution and shows fluctuations of RCA for a product/sector across time. Such curves of fluctuations for different countries may facilitate meaningful inter-country comparisons. Second, this paper suggests the use of bilateral RCA to determine the direction of India’s exports for a particular sector, enabling the determination of its potential markets. JEL Classification: F1, F4

Оценка добавленной стоимости во внешней торговле: современные подходы

The increase in globalization processes, which accelerated the fragmentation of production chains in the global economy, updated the task of clarifying the contribution of each of the element of the chain to the final result. With the consolidation of foreign economic cooperation, on the one hand, new opportunities have opened up for the inclusion in the international division of labor for more and more countries and companies, and on the other hand, risk threats of destroying or breaking relationships in these global value chains have intensified. This updated the task of specifying the real volumes of export-import turnover, cleared of double counted elements. In the early 2010s almost simultaneously there have been launched 3 basic concepts of export decomposition in the categories of value-added trade, prepared by UNCTAD, OECD and the EU. The system-functional analysis of the proposed approaches made it possible, at the same time, to reveal a number of keen questions that asked for clarification, in particular, the underestimation of intangible assets in creating value-added in exports within the framework of a specific global value chain, the measurement of value-added embedded in re-export (re-import) turnover of the country, etc. These aspects received due coverage in foreign and domestic economic literature. However, the latest developments by foreign specialists of the methodology of decomposing exports into the internal and external components of net production and double counted elements in the domestic scientific turnover are still being introduced with some delay. In this regard, the article set the task of conducting a comparative analysis of the main new results achieved, focusing on the methods introduced by A. Nagengast – R. Stehrer (2014) and A. Borin – M. Mancini (2019). At the same time, the main attention was concentrated on identifying breakthrough methodological "increments." It was revealed that new results are in demand not only in the context of macroeconomic analysis of transformational processes in the global economy, but also to an increasing extent to adjust foreign trade policy and develop ways to mitigate the risks of deterioration of bilateral foreign trade relations.

A study on the co-movement and influencing factors of stock markets between India and the other Asia–Pacific countries

PurposeThe aim of this study is to examine the nature and determinants of stock market integration between India and other Asia–Pacific countries (Malaysia, Hong Kong, Singapore, South Korea, Japan, China, Indonesia, the Philippines, Thailand and Taiwan) over the period 1991–2021.Design/methodology/approachUnit root tests, the dynamic conditional correlation-Glosten Jagannathan and Runkle-generalized autoregressive conditional heteroscedasticity (DCC-GJR-GARCH), pooled ordinary least squares (OLS) regression and random effects models are employed for the analysis.FindingsThe empirical results show that the DCC between each pair of sample countries is less than 0.5, indicating weak ties between the pairs of sample countries. Also, the DCC between India and other Asia–Pacific stock markets is positive and low, implying low level of integration. The correlation between India and China stock markets is found to be the highest, implying significant level of integration. The main reason for it would be strong economic linkages and bilateral trade relationship between India and China. Moreover, gross domestic product (GDP), interest rate (IR), consumer price index (CPI)-inflation and money supply (MS) differentials are the major driver of stock market integration between India and other Asia–Pacific countries.Practical implicationsThe findings of the study have important implications for investors, portfolio managers and policymakers. It is found that the DCC between India and other Asia–Pacific countries (considered in the study) except China is low, which indicates weak ties between the pairs of sample countries. This implies that the Indian stock market provides good investment opportunities for foreign investors. Also, investors and portfolio managers can attain more diversified benefits and can minimize country risk by investing across Asia–Pacific countries. Further, knowledge about the factors that integrate the Indian stock market with the other Asia–Pacific stock markets will help policymakers frame suitable economic and financial stabilization policies.Originality/valueThis study contributes to the extant literature: first, by examining the linkages of Indian stock market with other Asia–Pacific countries; second, although previous studies confirmed the existence of linkages among the various stock markets, few researchers pay attention to the factors driving the process of stock market integration. This study provides additional evidence by examining the significant macroeconomic factors driving the process of such integration in the Asia–Pacific region considered under the study.

The trading cooperation of Vietnam with Russia under the current global turbulence

The significance and possibilities for furthering economic ties between Russia and Vietnam in the light of the current global scenario establish the relevance of this study. The purpose of the research paper is to provide multi-dimensional views on the bilateral trade relationship between Russia and Vietnam in different time periods, as well as to make judgments for the future. The aim of the study is to analyze the context and situation of exports and imports between the two countries. The main methods of the study are to collect and analyze historical data, thereby making analyses and comparisons based on different influencing factors. Both nations should exert more effort to strengthen their cooperation, expand into new areas, improve their infrastructure to speed up transactions, and look for shared solutions to payment issues that could affect the entire import and export process in order to be able to develop further and make the most of the development potential. Additionally, promoting commerce and raising investment capital between firms in both countries depends on the facilitation of tourist and cultural exchange activities between the two nations.

The Development of AmCham China and Its Impact on US-China Economic and Trade Relations

This paper analyses the development of the American Chamber of Commerce in China (AmCham China) after the Cold War and how it has influenced the evolution of US-China economic and trade relations. The paper argues that AmCham China, as a non-government, non-profit business organisation, has been both a promoter and beneficiary of US-China economic and trade cooperation, as well as a participant and mediator in US-China economic and trade frictions. By providing information, establishing communication channels, proposing policy recommendations, and organising activities, AmCham China has built an essential platform for the governments and enterprises of China and the United States and promoted the development of bilateral economic and trade relations. At the same time, AmCham China also faces some challenges and dilemmas, such as the differences in the political and economic systems of China and the United States, the complexity of bilateral economic and trade relations, and the diversity of member enterprises.

Do Trade Agreements Enhance Bilateral Trade? Focus on India and Sri Lanka

This article examines bilateral trade relations between the two important countries of South Asia, India and Sri Lanka, in light of the South Asian Free Trade Area (SAFTA) and the India–Sri Lanka Free Trade Agreement (ISFTA). The analysis period spans the years 1995 to 2020. The primary analysis found that bilateral trade has been sluggish and that the SAFTA and ISFTA agreements have had no discernible effect on these two countries’ bilateral trade performance. The causes of lackluster trade performance were investigated using the “revealed comparative advantage” and the “trade complementarity” indices. Clear evidence was found demonstrating that the reason for the bilateral trade’s consistent lackluster performance is due to both countries’ lack of revealed comparative advantage in the majority of product groups, followed by export similarity in the product groups where they do have a comparative advantage. The findings also confirm the suspicion of many observers that they are competitors rather than natural trading partners. Although any substantial future increase in their bilateral trade is improbable and fanciful, the paper reflects on methods of strengthening bilateral trade.