Domestic Transactions Research Articles

How U.S. tariffs impact China’s domestic sourcing: Evidence from firm-to-firm transactions

This paper investigates how tariff shocks influence the domestic performance of Chinese firms, leveraging quarterly data on both international and domestic transactions from 2017 to 2018. Our analysis uncovers several key findings: (i) a one percent increase in export tariffs leads to a 0.235 percent increase in sales to domestic buyers, suggesting that higher export costs drive suppliers to prioritize domestic markets, primarily affecting the extensive margin; (ii) a similar increase in countervailing import tariffs results in a 0.995 percent decrease in domestic purchases, underscoring a complementary relationship between China’s imported intermediates and domestic products; (iii) larger firms exhibit smaller magnitudes of domestic sales and are more likely to reduce their domestic intermediate inputs in response to a negative external risk. These findings highlight that understanding the complementary relationship between imports and domestic inputs is crucial for developing strategies to mitigate the adverse effects of tariff policies on domestic production.

Transmission centers of global embodied mercury emissions are moving from developed to developing regions

Mercury (Hg) can accumulate in the food chain, posing significant threats to human health and biodiversity. Existing studies have identified critical primary suppliers, producers, and final consumers driving Hg emissions in global supply chains. However, the hotspots in the intermediate transmission stages of global supply chains remain unknown. This study reveals critical transmission sectors and transactions of global embodied Hg emissions during 1995–2022. Results show that the critical transmission sectors and transactions of global embodied Hg emissions have been moving from developed (e.g., Japan and Russia) to developing (e.g., China and India) economies. Critical transmission sectors were primarily concentrated in the metal products, transportation, machinery and equipment manufacturing, and construction industries. Domestic transactions were the primary transmission pathways for embodied Hg emissions, with nearly half of these being intra-sectoral transactions. These findings can help policymakers develop transmission-bound Hg reduction policies and multi-level cooperation to support joint Hg emission reduction.

Does a Fixed Establishment Have an Impact on the Place of Taxation of Goods?

In this article the author analyses the relationship between a fixed establishment (FE) and the place where the supply of goods is deemed to be located. In particular, he explores the relationship that exists between the FE and the parent company with regard to intra-Community supplies of tangible goods and addresses the question as to whether intervention by the FE in concluding the transaction in the Member State of destination of the goods results in the requalification of the supply as a domestic transaction.

Think globally, settle locally? Multilateral platforms for cross-border payments based on distributed ledger technology

Cross-border payments, especially between different currency areas, are still more expensive, slower and less transparent than domestic transactions. In addition to attempts to facilitate interoperability by harmonising message standards or legal frameworks, there is also the vision of using multilateral platforms to reduce existing inefficiencies. A particular focus here is on distributed ledger technology (DLT), which could create additional benefits beyond payment transactions, for example by facilitating broader economic activity by means of tokenised assets. Some private sector players, as well as international organisations such as the International Monetary Fund and the Bank for International Settlements, have already developed concepts for DLT-based multilateral platforms. However, their realisation faces broader policy challenges that are unlikely to be solved per se with the help of new technologies. Although a global multilateral platform does indeed harbour great potential for efficiency gains, regional solutions are more likely to emerge that could be linked together to achieve efficiency gains at a global level.

Declined card transactions: How online merchants can address the potential €15bn revenue hole caused by declines

Declined card transactions present a significant problem for the payment industry, causing inconvenience for consumers, lost sales for merchants and lost revenue for card issuers. An analysis of card-based e-commerce across the EEA and UK indicates a decline rate of 10 per cent for domestic transactions and 18 per cent for cross-border transactions, leading to a total declined value of €60bn per annum. Using data obtained from different sources, including merchants’ own records, and gateway, acquirer and scheme data, this paper identifies the main reasons why transactions are rejected, grouping them into four categories: valid business declines, avoidable business declines, risk-based declines, and technical declines. The study argues that merchants should focus on reducing decline rates in the latter three categories. Approaches might include use of the schemes’ account updater service; localisation of acquiring to the same country as the card issuer, where possible; smart routing to acquirers with higher success rates for the given transaction attributes; use of network tokens; leveraging of strong customer authentication exemption rules; and correction of technical issues in authorisation requests, such as incorrect setting of flags indicating the acceptance environment. According to PSE’s analysis, actionable codes account for around 25 per cent of all declines, totalling €15bn of transaction value (and €74m lost interchange for issuers). The paper therefore suggests that those merchants that are prepared to investigate and analyse the underlying causes of their declines have much to gain.

RELATIONSHIP OF THE MINING SECTOR TO THE ELECTRICITY AND GAS PROCUREMENT SECTOR IN WEST PAPUA PROVINCE USING INPUT OUTPUT ANALYSIS

Linkage analysis is a method used to understand the economic structure of a region. This analysis can also be used to figure out how much influence a sector has on other sectors based on the input and output tables for each sector. This research was conducted to analyze the forward and backward linkages of the mining and quarrying sector to the electricity and gas procurement sector in West Papua Province, both directly and indirectly. The data used in this research is sourced from the West Papua Province Input Output Table Domestic Transactions Based on Producer Prices 2016 Updated 2021. The method used in this research is a descriptive quantitative method. From the results of this research, it was found that the value of backward linkages in the mining and quarrying sector was more significant than the value of forward linkages, both directly and indirectly, to the electricity and gas procurement sector. Thus, the mining and quarrying sector requires more output from the electricity and gas procurement sector as input, compared to the electricity and gas procurement sector's need for the output of the mining and quarrying sector.

Налоговые нарушения в трансграничных сделках. Проблемы установления действительных налоговых обязательств

Determining valid tax liabilities is an approach developed by law enforcement practices, according to which, even if a tax offence is identified, the state treasury should receive tax only in the amount determined by the legislature. Above this amount, the arrears are not a tax, but a sanction that is not established by law. But if in recent years this approach has been actively developed and used in practice for domestic transactions, additional tax assessments for cross-border transactions are often made without taking these requirements into account. Reclassification for the purposes of International transactions has already been in the focus of the Supreme Court’s attention, but lower courts apply its legal positions very narrowly – only within the same category of cases. As a result, in the majority of cases, even if there are identified facts and circumstances that allow the true amount of arrears to be determined, law enforcement authorities ignore them. This leads to tax being collected in an excessive amount, and sometimes to double taxation of the same income. There is no reason why the approach that has become generally accepted for domestic transactions could not be applied to persons involved in foreign trade. Arbitrary taxation and the collection of unspecified payments under the guise of tax undermines the confidence of business entities in the tax system and the predictability of law enforcement practice.

"Possible, Possible, Possible": Katherine Mansfield Studies in the Twenty-first Century

Abstract: Katherine Mansfield: New Directions , in Bloomsbury's Historicizing Modernism series devoted to the use of primary sources and an emphasis on genetic criticism in the study of modernist literature, presents an array of new "possibilities" in Katherine Mansfield studies. Organized into four sections, the fourteen chapters in this collection pivot on form and force, Mansfield's modernisms, literary influence and life writing, and social and domestic transactions. Together they provide a series of glimpses of how Mansfield studies are being fertilized by cognitive criticism, affect studies, auto/biographical and comparative reading approaches, feminist and postcolonial literary scholarship, and research on literary networks and reception. The volume lights up new directions of Mansfield studies in the twenty-first century.

가상자산에 대한 소득세 부과 방안 연구

Looking at the legal status of virtual assets in Korea, the Tax Act defines “virtual asset” as an electronic certificate that has economic value and can be transacted or transferred electronically. The Tax Act defines “virtual asset” as an electronic certificate (including any rights related to it) that has economic value and can be transacted or transferred electronically. ) that can be transacted or transferred electronically as a thing with economic value, and whether it falls under the civil law is divided into positive and negative theories. The Supreme Court The Supreme Court considers it to be property under the Criminal Code, but not currency under the Bank of Korea Act. Gold under the Capital Market Act does not fall under the definition of a financial investment product, but it is necessary to expand the concept to provide legal safeguards for investor protection. to protect investors.
 E-finance transactions through blockchain are decentralized, meaning that transaction details are shared and stored among all network participants, and all transactions are notarized and managed by participants through transaction confirmation, so there is no centralized administrator. Under the current income tax law, the taxation structure for virtual asset income is based on direct transactions (P2P) that do not go through virtual asset operators, and since it is difficult to identify international transactions, various types of distribution taxes are imposed for domestic transactions, but we propose to approach international transactions by setting international standards and establishing an information exchange system between countries.
 To identify domestic transactions of virtual assets, virtual assets are generally classified as securities or not, and securities-type virtual assets are considered as 'securities' because they meet the 'Howey test', so it is possible to secure transaction details and manage tax revenue through securities transaction taxation. Except for 'securities-type virtual assets', virtual assets are subject to VAT because they are subject to asset exchange transactions, and if they are distributed from Korea to foreign countries, they can be applied at a zero-rated rate as domestic goods. Since the “electronic wallet” of virtual assets refers to the virtual assets themselves, we would like to propose a method of imposing stamp tax on example savings transaction contracts and certificates based on virtual assets, and a method of imposing registration license tax through the virtual asset electronic register by establishing a study managed by the central government. Sanctions for unregistered transactions of virtual assets and a trial period before the introduction of the system will be implemented to encourage positive transactions.
 To identify international transactions of virtual assets, it is necessary to establish a virtual asset transaction information exchange system between countries and agree on standards for international taxation targets and methods to exercise taxation rights in an information cooperation council.

Upstream oil and gas mergers and acquisitions: Domestic transactions in the U.S

This paper investigates drivers of mergers and acquisitions in the upstream industry by applying an empirical approach based on domestic transactions during last two decades in the U.S. The oil and gas industry, particularly, upstream industry has seen rapid developments in recent years. The discovery of new resources in unconventional oil and gas parallel to the horizontal drilling and fracking technology, the U.S oil and gas market shows changing patterns which is also reflected in investments in the oil and gas industry. Mergers and acquisitions in the upstream industry in the U.S has experienced increasing patterns, especially in domestic levels (post Shale revolution, booms and changing dynamics over last two decades). Our study recognizes that underlying facts of mergers and acquisitions investments in the oil and gas industry can vary from other industries and can be different than traditional economic explanations. The empirical results suggest that industry-specific variables have stronger influence on mergers and acquisitions than economic and political indicators. The drivers can be different based on various transaction forms and deal levels. Our findings provide a comprehensive view, test various theories of mergers and acquisitions and direct to sector-specific stylized facts of the U.S oil and gas market.

CISG의 한계와 UNIDROIT원칙의 적용가능성

It is necessary to present that the UNIDROIT principle can be applied to international commodity sales contracts through arbitral award on the limits of application of CISG, and to examine how it is applied. In the following, we will examine the applicability of the UNIDROIT principle as a supplement for defects in Article 7 of the CISG. The CISG is a hard law as a convention, but the biggest feature of the UNIDROIT principle is that it is not a convention like the CISG, so it does not need to be domesticized through ratification procedures in each country, and it is non-binding and soft law. The CISG can be legalized domestically through ratification by the state, but the UNIDROIT principle cannot be legalized domestically through ratification. This characteristic allows the UNIDROIT principle to define matters wider than CISG. In addition, the UNIDROIT principle is based on universality and equity in domestic transactions, so it is highly applicable. Through a comparative legal review of the CISG’s defect supplementation regulations, we intend to clarify the defect regulations to promote predictable application of the law to international transactions with high uncertainty. The principles of CISG and UNIDROIT can be seen as a representative unified law applied to international commodity sales contracts. To this end, a comparative analysis was conducted with the UNIDROIT principle’s defect supplementation regulations, and as discussed in the attitude of the arbitral award, this attempt can play a role in finding a solution to the extent that the UNIDROIT principle has not been resolved by CISG. Therefore, in order to adapt the Convention to new needs and to develop each arbitration case according to the practical situation through analysis, the interpretation and defect supplementation of the Convention will be an important means of UNIDROIT.

Analisis Sektor Ekonomi Potensial Pendorong Kemajuan Ekonomi Sumatera

Even though inter-island trade is important and Sumatra is Indonesia's second largest economy, Sumatra imports more from other islands in Indonesia than exports. This research will be carried out descriptively to determine the trade structure of the island of Sumatra with other islands in Indonesia and potential sector purchases in downstream. This study uses secondary data published by the Central Bureau of Statistics (BPS). The secondary data used is the input-output data table between Indonesian regions, domestic transactions based on producer prices according to 6 island groups and 17 business fields in 2016. The results of this study indicate that trade between Sumatra and other islands suffers a slight loss because there are more imports from other islands. compared to export output by Sumatra. The use of output from the island of Sumatra is almost balanced between final demand and intermediate demand. The majority of Sumatra's output circulates in the Sumatra region only. Sumatra trade interaction is dominant with the island of Java. From a sector perspective, the majority of Sumatra's exports come from the manufacturing sector as well as the sector with the largest output value. Even though it has the largest output value, this sector is the most powerful in driving progress in the upstream sector. As for downstream, the Electricity and Gas Procurement sector has the greatest potential in terms of impacting progress on the downstream sector. Keywords : Economic Sector, IRIO, Inter-Island Trade.

Linkages between Sectors and Regions in the Aceh Economy

This study analyzes the economy of Aceh not only based on the linkage between industries but also based on the linkage between regions. The analysis used forward linkages and backward links to determine the leading sectors in Aceh. The data used is secondary data from Indonesia's 2016 Inter-Regional Input Output (IRIO) based on domestic transactions at producer prices. The data is sourced from Statistics Indonesia. The study results show that the key sectors in Aceh are Electricity and Gas and Manufacturing. These sectors have the highest spreading power (backward linkage) and sensitivity (forward linkage) because they are in the first quadrant. In addition, inter-regional linkage analysis shows that the final demand shock in Aceh has a large output impact on DKI Jakarta, North Sumatera, and Riau. On the other hand, the economy of Aceh was affected by the final demand shock from several provinces on the island of Sumatra, namely North Sumatera, Bengkulu, West Sumatera, Jambi, and Sumatra Selatan. The policy implications that can be applied to increase labor skills and management in leading sectors will have a multiplier effect on other sectors and the cooperation between provinces in a special economic zone.

The Pesa, a Bimetallic Unit of Account in Tenth and Eleventh-Century Catalonia

Between 957 and 1040, land purchases in Catalonia were often settled in pesas. This term denoted a unit of account equalling two ounces of gold or ten of silver. Both precious metals came to Catalonia from Al-Andalus in the form of dinars and dirhams. However, for many years these coins were traded not according to their nominal value, but according to their metal weight. Frankish regulations, requiring foreign currencies to be converted into local deniers, provided the legal framework. The pesa system, created by the Counts of Barcelona, allowed Andalusi coins to be traded in domestic transactions as well as in bilateral trade with Al-Andalus. This policy shows the degree to which the Catalan Counties had become alienated from the West Frankish Kingdom to which they officially belonged.

빅데이터에 대한 과세문제

Big data is the generation and analysis of valuable data in large quantities with data, and has recently been developed through convergence with artificial intelligence and the Internet of Things. Big data technology, in which a vast amount of data is collected and who can more elaborately analyze and utilize the collected data, has become an era that determines the competitiveness of a company or country. The economic value of big data is increasing day by day, and companies are generating profits by using big data not only in domestic transactions but also in international transactions. I wanted to study how to solve the problem of taxation on profits generated by big data.
 As for the taxation of big data, it is important to understand the legal nature of big data, and it is connected to data, which is the root of big data. Therefore, we tried to understand the legal nature of big data through the legal nature of data. Currently, there is no legal concept for big data, but the legal concept of data has been established with the recent enactment of the Data Industry Act. The Data Industry Act stipulates activities related to production, distribution, transaction, and utilization of data and the data industry that provides these services in order to create economic added value. From the perspective of the Data Industry Act, big data can be included in the concept of data under the Data Industry Act or understood as the same concept.
 The Data Industry Act recognizes that data has economic value, that is, data itself as an asset, but the tax law or corporate accounting standards do not clearly determine which asset is included in data. This can lead to problems with taxation of big data. Therefore, since data or big data is stated to have property under the Data Industry Act, it would be reasonable to regard data as intangible assets and goods by recognizing the nature set forth in the relevant laws in the tax law, and the tax base should be set according to that concept.
 On the other hand, as the 4th industry develops, big data is expected to increase domestic and international transactions. In particular, since the taxation standards for big data are not clearly defined for each country, international transactions of big data will appear as a problem of tax jurisdiction due to deficiencies in tax laws in each country. In the current situation, tax law interprets data from the perspective of intangible assets, and international transactions of big data are also regarded as international transactions of intangible assets, so it seems that there is no choice but to be taxed.

Panda Games: Corporate Disclosure in the Eclipse of Search

We show that firms strategically alter their disclosures when investors’ access to information via search engines is interrupted. We conduct a textual analysis and exploit an exogenous event—Google’s 2010 surprising withdrawal from mainland China, which significantly hampered domestic investors’ ability to search for foreign information but did not affect their cost to access domestic information. Following Google’s exit, Chinese firms’ announcements on foreign transactions become more bullish relative to domestic transactions. Optimism in disclosure is especially rosy if the press releases are conveying negative news or are issued by poorly governed firms. This effect is mitigated in the presence of foreign investors or analysts affiliated with foreign brokers who are not subject to foreign information censorship by the government. The increase in search cost also appears to leave domestic news media and financial analysts more vulnerable to the influence of corporate disclosure. These optimistic announcements allow insiders to harvest higher returns from selling their shares and are associated with a higher likelihood of corporate misconduct. This paper was accepted by Gustavo Manso, finance. Funding: This work was supported by the National Natural Science Foundation of China [Grants 71272072 and 71572042]. X. Yu gratefully acknowledges financial support from the Arthur M. Weimer Fellowship. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4521 .

Challenges and Implications of Applying the Zimbabwean Domestic Transfer Pricing Rules: An SME Perspective

Purpose: Transfer pricing has largely been viewed in the context of crossborder transactions of multinational enterprises. Zimbabwe recently revised its transfer pricing rules to include domestic transactions. This study sought to explore the challenges and implications of transfer pricing legislation for SMEs. Methodology: A qualitative inquiry is applied with the use of in-depth interviews and a questionnaire survey. Thematic analysis was used to analyse both interview and questionnaire data. Findings: The findings revealed that the paradox of observing fairness as a canon of taxation by equally taxing domestic and cross-border transactions has both economic and social implications for the Zimbabwean economy. It was evident that SMEs find themselves unduly burdened with compliance costs, capacity limitations as well as knowledge constraints in complying with the rules. Originality or Value: The implications of transfer pricing rules on SMEs have not been explored in the Zimbabwean context. The study explores a critical sector that has often been neglected in the transfer pricing discourse. It recommends that the government revisit the applicability of domestic transfer pricing legislation to SMEs.

Contingencies in the relationship between trade and internal conflict in Nigeria: the role of the quality of the political institution

PurposeThis paper empirically tests the relationship between conflict and trade in Nigeria from 1986 to 2017.Design/methodology/approachThis study made use of secondary data. Time-series data were collected from CBN Statistical Bulletin, WDI of the World Bank, MEPV of the Centre for Systemic Peace database, Stockholm International Peace Research Institute, political risk ratings of the ICRG, Freedom in the World Country Ratings of Freedom House, and ACLED database. This study used descriptive and econometrics techniques to analyze the data. It adopted the IV-GMM techniques.FindingsThe study found that domestic trade has a negative and significant effect on internal conflict in Nigeria. International trade, on the other hand, does not affect internal conflict. In addition, the interaction of trade and institutions shows that more civil liberties (CL) and lower corruption (COR) complement the effect of domestic and international trade in reducing hostilities in Nigeria over the study period.Research limitations/implicationsThe main limitation of this study is the inaccessibility of data. This study could not access the data on the volume of domestic trade in Nigeria. The study employed value-added tax on all domestic transactions in Nigeria as a proxy for domestic trade in the country. The study recommends that further studies should access the data on the volume of domestic trade as this could help further understand the relationship between domestic trade and internal conflict in Nigeria.Practical implicationsSince the improved domestic trade reduces internal conflict in Nigeria, the government should formulate policies that facilitate trade. Improving anti-graft efforts and CL will ease the process of formulating trade policies and increase the impact of domestic trade on internal conflict. Furthermore, these will reduce trade barriers and transaction costs. This can be achieved if the government strengthens its anti-COR agencies by making them more autonomous. CL can also be increased by enhancing voice and accountability in the country.Originality/valueThis study advances the literature by examining the role political–institutional quality plays in the relationship between trade and conflict.

ECONOMIC IMPACT ASSESSMENT OF VILLAGE FUND IN INDONESIA USING INTER-REGIONAL INPUT OUTPUT ANALYSIS

The economic development of a region/country is marked by development in various sectors and regions through private or public spending. In 2017, village fund (as one of government expenditure) has induced and supported sectors such as public administration, human health and social works, education, manufacturing industries and other service activities in any region. This study aims to analyze the impact of the 2017 village fund program realization on the Indonesian economy, such as the impact on final demand, household income, and employment coverage. The method used in this research is Inter-Regional Input Output (IRIO) analysis using the IRIO Indonesia Table in 2016 domestic transactions on producer prices classification 102 x 102 sectors (6 regions and 17 sectors). The results of this study show Indonesia's total domestic output in 2017 for the realization of the village fund budget of IDR 98 trillion. Meanwhile, Village Fund 2017 program stimulated a total salary increase of IDR 26.980 trillion or 648,132 additional workers or contributed to employment increase during 2017 as 13.12%. The results of the analysis of the output multiplier and the income multiplier show that, if we viewed in sectoral details, the electricity and gas sector and the manufacturing industry sector have more roles in increasing output compared to other sectors.

LEGAL RECONSTRUCTION ON DOMESTIC RELATED PARTY TRANSACTIONS

It is necessary to conduct a juridical study to minimize the transfer of income or the basis of imposition of taxes and fees from one taxpayer to another, which can be engineered to reduce the total amount of tax payable on taxpayers who have speuniquelationships within the country. Based on distributive justice and corrective justice concepts and the hierarchy of laws and regulations (stafenbau theory). This article applies a normative juridical method with an evaluative and prescriptive thought. This method uses a positive legal inventory approach, an approach to legal principles, an approach to legal systematics, and a vertical and horizontal synchronization approach. Tax disputes related to unique relationships still occur. Even related parties’ transactions Domestic transactions are often complex business transactions between companies and their managers, directors, shareholders, or affiliates, making state tax revenues suboptimal. This paper requires an in-depth socio-legal research study, but this paper can enrich empirical research. This paper produces two novelties in the form of legal reconstruction. First, the rules for domestic-related transactions still rely on the arm's length principle (ALP), which is adequate to apply to cross-border transactions between related parties. Domestic special relationship transactions have their complexities. Second, there is a need for legal reconstruction of domestic related party transactions oriented towards increasing compliance (reporting certain transactions) and providing access to tax authorities in jointly taking responsibility for preventing and overcoming suboptimal state tax revenues.