Dynamics Of International Trade Research Articles

Synergizing trade and sustainability: advancing SDG 14 through international trade dynamics

This paper explores the intricate relationship between international trade and the achievement of the United Nations Sustainable Development Goal 14 (Life Below Water), focusing on the potential of trade to contribute positively to marine conservation and sustainable use of ocean resources. By examining the intersection of economic, social, and environmental dimensions, the study delves into how trade policies and practices can be aligned with environmental objectives, particularly concerning marine ecosystems. A principal challenge identified is the tension between economic growth driven by international trade and the sustainability of marine ecosystems, exacerbated by practices such as overfishing and pollution from maritime transport. Another significant challenge is the lack of robust enforcement mechanisms for existing environmental provisions in trade agreements. To address these challenges, the paper recommends the integration of stringent and enforceable environmental clauses in trade agreements, coupled with the promotion of sustainable trade practices through international cooperation and capacity building. Furthermore, the study suggests the adoption of innovative trade mechanisms, such as eco-certification and the implementation of Marine Protected Areas (MPAs), to enhance the protection of marine life, support sustainable fisheries, and reduce ocean pollution. The paper concludes with specific policy recommendations for leveraging international trade as a tool for the sustainable management of marine resources, ultimately contributing to the broader agenda of sustainable development.

Network Analysis of International Trade: Shocks, Connections, and Implications

This paper delves into the intricate interplay between idiosyncratic shocks, network connections among economic agents, and the ensuing implications for international trade dynamics. Drawing upon economic theory and empirical evidence, it scrutinizes how localized supply shocks, such as those induced by natural disasters, reverberate through global trade networks. Two models are deployed to elucidate the relationships between exogenous shocks and fluctuations in international trade, offering insights into the mechanisms through which shocks propagate or dissipate. By examining the distribution of suppliers and the network structures of various goods, the paper uncovers nuances in the transmission of shocks and their impact on aggregate outcomes. Moreover, it explores the evolving role of countries within the global trade network, particularly in the context of energy trade. The findings underscore the significance of network analysis in understanding the resilience of international trade amidst disruptions and underscore the policy implications for trade and exchange rate strategies. Future avenues for research are also delineated, emphasizing the need for deeper investigations into the dynamics of trade networks and policy responses to shocks.

Examining the Influence of Macroeconomic Factors and Corporate Governance on Firm Performance in the ACE Market

This study focused on investigating the impact of macroeconomic factors and corporate governance on the financial performance of firms listed on the ACE Market of Bursa Malaysia. The ACE Market serves as a platform for smaller, emerging companies, providing them with an opportunity to raise capital with less stringent requirements compared to the Main Market. Using a panel data set of 72 companies over the period 2018-2022, the research employed panel-corrected standard errors (PCSE) regression. PCSE is a panel regression model that accounts for contemporaneous correlations, corrects for deviations from spherical errors, and enhances inference from linear models. The analysis revealed that ACE market companies, on average, show a negative return on equity (ROE) but positive numbers of women (NOW) and board meetings (NOM). The PCSE regression results, however, failed to show a statistically significant relationship between NOW and ROE, suggesting that the presence of women on the board of directors does not significantly impact the firm performance. The findings provide valuable insights for the firms in the ACE market companies regarding the consideration of important factors in improving firm performance. The research's broader goal is to inform the development of strategies fostering enhanced overall performance and sustainability in the ACE market. The study also suggests several recommendations such as broadening the scope and inclusion of international trade dynamics variables.

Effects of Trade Policies and Regulations on Global Livestock Markets and Food Security in Kenya

Purpose: The aim of the study was to examine the effects of trade policies and regulations on global livestock markets and food security in Kenya. 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: The study revealed that the effects of trade policies and regulations on global livestock markets and food security in Kenya underscore the intricate interplay between local agricultural systems and international trade dynamics. Trade policies, including tariffs, quotas, and sanitary and phytosanitary (SPS) measures, significantly influence Kenya's livestock sector by shaping market access, competitiveness, and domestic production levels. While trade liberalization measures may enhance market opportunities and foster economic growth, they also pose challenges to local farmers and food security by exposing them to international competition and market fluctuations. Unique Contribution to Theory, Practice and Policy: New Trade Theory & Institutional Theory may be used to anchor future studies on effects of trade policies and regulations on global livestock markets and food security in Kenya. Efforts should be made to enhance the transparency, coherence, and consistency of trade policies and regulations related to livestock markets. There is a need to adopt a balanced approach that promotes trade while safeguarding food security and sustainable development goals. Policymakers should prioritize measures that enhance the resilience and competitiveness of domestic livestock producers, particularly small-scale farmers and vulnerable communities. This could involve targeted support programs such as access to credit, technical assistance, and market information, aimed at improving productivity, market access, and income generation.

Macroeconomic structural change likely increases inequality in India more than climate policy

The decarbonization of India’s economy will have different effects across income groups. As India is in the middle of the transformation process from an agriculture-based economy towards an industry- and service-based economy, called economic structural change, the extent of income distribution across households strongly depends also on the speed of economic transformation. While a number of recent studies have analyzed the distributional effects of carbon pricing, the specific role of structural change across sectors has not been in the focus of the related literature. Our study contrasts distributional effects from climate policy with distributional effects from structural change in India and asks how far carbon pricing supports or hinders structural change and development. We develop and apply a comprehensive model framework that combines economic growth and international trade dynamics related to structural change with detailed household income and expenditure data for India. Our study shows that changes in income and inequality due to carbon pricing vary with changes in the sectoral structure of an economy. Our results indicate that carbon pricing tends to delay economic structural change by retarding the reallocation of economic activities from the agricultural sector to the manufacturing sector. Furthermore, the results emphasize that the increase in inequality due to structural change is substantially stronger than due to carbon pricing. Consequently, socially sensitive policies supporting the process of structural transformation appear to be more important for poor households than lowering climate policy ambitions.

Beyond Borders: CBAM’s Revolutionary Potential and Challenges in Achieving Carbon Neutrality

The Carbon Border Adjustment Mechanism (CBAM) is a ground-breaking method for attaining carbon neutrality in international trade as the world community struggles with the pressing need to address climate change. This research investigates how the CBAM might influence the dynamics of international trade and promote the shift to low-carbon, sustainable economies. A critical analysis has been conducted to explore the CBAM's transformational potential in bringing trade practices into line with climate goals by examining its economic, environmental, and political components and its implication practice, covering issues with trade equity, enforcement protocols, and possible geopolitical conflicts. The information has been gathered from several reliable sources, including the WTO, the European Commission for trade input, the World Bank, and the EPA for emission information. It has been compiled into a tabular format for simplicity of reading. The graphs have been plotted using Python (3.11.6) to improve visual comprehension. Stakeholders may help CBAM implement successfully by adopting these suggestions, maximising its revolutionary potential, and overcoming the difficulties in reaching carbon neutrality in international trade. By using an interdisciplinary approach, the study seeks to offer a thorough grasp of CBAM's function in becoming carbon neutral, revealing the complex obstacles that must be overcome for it to integrate into the world economy successfully.

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.

Greenhouse gas emissions patterns and insertion in global value chains: a comparative study between Brazil and China (2000–2016)

PurposeThis study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000 to 2016.Design/methodology/approachThe input-output method apply to multiregional tables from Eora-26 to decompose the GHG emissions of the Brazilian and Chinese productive structure.FindingsThe data reveals that Chinese production and consumption emissions are associated with power generation and energy-intensive industries, a significant concern among national and international policymakers. For Brazil, the largest territorial emissions captured by the metrics come from services and traditional industry, which reveals room for improving energy efficiency. The analysis sought to emphasize how the productive structure and dynamics of international trade have repercussions on the environmental dimension, to promote arguments that guide the execution of a more sustainable, productive and commercial development strategy and offer inputs to advance discussions on the attribution of climate responsibility.Research limitations/implicationsThe metrics did not capture emissions related to land use and deforestation, which are representative of Brazilian emissions.Originality/valueComparative analysis of emissions embodied in traditional sectoral trade flows and GVC, on backward and forward sides, for developing countries with the main economic regions of the world.

Influence Analysis of Real Exchange Rate Fluctuations on Trade Balance Data Using Feature Important Evaluation Methods

This study delves into the intricate relationship between fluctuations in the real exchange rate and the trade balance, situated within the framework of a ‘two-country’ trade theory model. Despite a wealth of prior research on the impact of exchange rates on international trade, the precise extent of this influence remains a contentious issue. To bridge this gap, our research adopts a pioneering approach, employing three distinct artificial intelligence-based influence measurement methods: Mean Decrease Impurity (MDI), Permutation Importance Measurement (PIM), and Shapley Additive Explanation (SHAP). These sophisticated techniques provide a nuanced and differentiated perspective, enabling specific and quantitative measurements of the real exchange rate’s impact on the trade balance. The outcomes derived from the application of these innovative methods shed light on the substantial contribution of the real exchange rate to the trade balance. Notably, the real exchange rate (RER) emerges as the second most influential factor within the ‘two-country’ trade model. This empirical evidence, drawn from a panel dataset of 78 nations over the period 1992–2021, addresses crucial gaps in the existing literature, offering a finer-grained understanding of how real exchange rates shape international trade dynamics. Importantly, our study implies that policymakers should recognize the pivotal role of the real exchange rate as a key determinant of trade flow.

An Impact Assessment of the European Carbon Border Adjustment Mechanism (CBAM) on the Korean Economy: A CGE Approach

Purpose - This paper investigates the economic impact of the European Union Carbon Border Adjustment Mechanism (EU-CBAM) on Korea’s economy.
 Design/Methodology/Approach - The study employs the input-output model and Global Trade Analysis Project-Energy (GTAP-E) model by McDougal and Golub (2007), along with the GTAP-E version 10.1 Data Base developed by Aguiar et al. (2019). The input-output model estimates the carbon emissions of Korea’s exports to the EU27, evaluating potential carbon costs and a carbon tax (measured in US dollars per ton of emissions). Utilizing the static GTAP-E model, three policy scenarios are implemented, focusing on direct carbon emissions (Scope 1), emissions from electricity usage (Scope 2), and indirect emissions (Scope 3).
 Findings - Simulation outcomes reveal significant contractions in CBAM-related sectors of the Korean economy, with a decline in iron and steel production (US$ 68.00 million) and electronic industries (US$ 39.16 million). Korea’s export reductions to the EU27 in CBAM-affected sectors (iron and steel, cement, aluminum) indicate a subtle impact extending to the energy, energy-intensive, and services sectors.
 Research Implications - This paper provides valuable insights to policymakers and entrepreneurs in navigating the challenges and opportunities arising from the interlinkage of environmental policies and global trade dynamism. The analysis contributes to discerning perspectives essential for informed decision-making amid the complex interplay of regulatory frameworks and international trade dynamics.

Weighted Signed Networks Reveal Interactions between US Foreign Exchange Rates.

Correlations between exchange rates are valuable for illuminating the dynamics of international trade and the financial dynamics of countries. This paper explores the changing interactions of the US foreign exchange market based on detrended cross-correlation analysis. First, we propose an objective way to choose a time scale parameter appropriate for comparing different samples by maximizing the summed magnitude of all DCCA coefficients. We then build weighted signed networks under this optimized time scale, which can clearly display the complex relationships between different exchange rates. Our study shows negative cross-correlations have become pyramidally rare in the past three decades. Both the number and strength of positive cross-correlations have grown, paralleling the increase in global interconnectivity. The balanced strong triads are identified subsequently after the network centrality analysis. Generally, while the strong development links revealed by foreign exchange have begun to spread to Asia since 2010, Europe is still the center of world finance, with the euro and Danish krone consistently maintaining the closest balanced development relationship. Finally, we propose a fluctuation propagation algorithm to investigate the propagation pattern of fluctuations in the inferred exchange rate networks. The results show that, over time, fluctuation propagation patterns have become simpler and more predictable.

Research on the Impact of the Belt and Road Initiative on the Economies and Development of Participating Countries

Economic and Development Impact Study of the 'Belt and Road' Initiative: Through the comprehensive application of economic data analysis, regional development index comparison, and international trade dynamics mapping, this paper delves into the extensive impact of the 'Belt and Road' initiative on the economic structure, development models, and regional cooperation of participating countries. Particularly, the study employs tools such as investment distribution maps, national economic growth curves, and trade flow scatter plots to quantitatively assess how the initiative promotes economic growth, trade cooperation, and infrastructure construction in the countries along the route. Moreover, by comparing and analyzing the economic development indicators and international trade patterns of different countries before and after participating in the initiative, this research reveals the key role of the 'Belt and Road' initiative in promoting globalization, strengthening regional connectivity, and influencing international economic cooperation. The research results not only provide policymakers with a basis for formulating more precise and efficient regional cooperation strategies, but also offer an important perspective for understanding the position and role of the 'Belt and Road' initiative in the global economic landscape.

The Secret of China Keeping Leading the Export of Steel Trade Since 21 Century

The foundation was set by early industrialization, post-1949 emphasis on heavy industries, and post-1978 economic reforms.China emerged as a significant exporter of steel in the 21st century due to several factors that enhanced its competitiveness. These factors include the presence of abundant reserves of iron ore, a substantial labour force, and developments in technology. As a result, China successfully debunked the prevailing notion of relying solely on domestic resources and established itself as a prominent player in the global steel market. This paper examines China's global steel market dominance due to historical foundations, economic reforms, and competitive advantages. This study employs the H-O model and the supply and demand model, utilizing secondary data from various sources. The samples for this study include China's total population, China's GDP, Australia, and Europe and the United States. The type of data utilized in this research is secondary data, and it involves characteristics such as bar charts to observe the steel industry's development in China, Australia, and Europe and the United States. The data encompasses steel resource content, total steel import and export, total steel production, and the environmental policy stringency index. This paper proposes a novel avenue for future research, focusing on the integration of environmental factors into models explaining international steel trade dynamics. The investigation aims to shed light on the influence of environmental standards on trade patterns and, consequently, advance our comprehension of China's position within the global steel market.

The Federal Reserve's Interest Rate Increases and Their Effect on the U.S. and Global Economies under the Covid-19 Pandemic

This paper delves into the successive Fed rate hikes that began in March 2022 and their far-reaching impact on the domestic and global economy. The paper primarily examines the reasons behind these rate hikes, focusing on their response to the problems caused by the COVID-19 pandemic, particularly unemployment and inflation trends. The pandemic triggered widespread lockdowns, leading to severe supply chain disruptions and economic downturns. During this period, unemployment rates rose sharply and reached historic levels. Central banks worldwide had adopted loose monetary policies to stabilize economies in the short term. However, this also raised the risk of persistent inflation. Fiscal stimulus, intermittent interest rate cuts, and a raft of bailouts, such as the CARES Act, have added complexity to the economic landscape, affecting various sectors and necessitating higher interest rates to restore pre-pandemic stability. Disruptions in global supply chains played a key role in stoking inflationary pressures, eroding consumer purchasing powers, and highlighting the urgency for the US Federal Reserve to intervene by adjusting interest rates. Assessing the impact of these rate hikes on stocks shows a resilient market that remained optimistic about the U.S. economic recovery. In addition, the study outlines the impact of these rate hikes on foreign exchange markets, international capital flows, emerging markets, trade dynamics, and global competitiveness.

The Trade of Porcupines in Malaysia With International Trade Links

Background and Research Aims Porcupines are frequently traded in Asia but evidence of this remains undocumented. This study was undertaken to address the dearth of information on porcupine trade dynamics using Malaysia as a case study. Methods To accomplish this, traditional Chinese medicine (TCM) outlets throughout the country were surveyed, the existence of porcupine farms were determined and porcupine seizures in Malaysia from 2011 – 2019 were analysed. Results The data revealed that porcupines are coveted predominantly for bezoars used in TCM and for breeding stock. Porcupine bezoars were found in 90% of TCM outlets surveyed though it is likely that the market consists of genuine and fake products. Porcupine farming appears to be gaining popularity and predominantly caters to a demand for breeding pairs. There were 47 seizures amounting to 110 porcupines of at least three species. Seizures included mostly live animals but also meat and quills. Conclusion The harvesting and consumption of porcupines is legally permitted in Malaysia. However, it is evident that illegal hunting of porcupines is also occurring. Captive breeding is unlikely to reduce poaching of porcupines considering the high value associated with wild-sourced bezoars. Local use is also driving international trade of bezoars particularly from Indonesia. Implications for Conservation Research on porcupine trade dynamics in Southeast Asia is limited. This is a conservation concern particularly as porcupines are valued as commercial commodities. As Asian porcupines face a multitude of synergistic threats ( i.e., habitat loss, human conflict and illegal hunting), understanding these cumulative impacts on wild populations is a conservation priority. More research on international trade dynamics is also warranted as it is currently occurring without any regulation or monitoring. Listing porcupines in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) could potentially mitigate this.

International Trade, Immigration and Macroeconomic Dynamics

International Trade, Immigration and Macroeconomic Dynamics

International Trade and Macroeconomic Dynamics with Sanctions

International Trade and Macroeconomic Dynamics with Sanctions

Türkiye ve Avrupa Birliği Ülkelerinde Vergi Kapasitesi ve Vergi Gayreti: Ampirik Bir Uygulama

An efficient tax system is pivotal for effectively implementing fiscal policy and fostering economic development. The extent to which a tax system realizes its full potential determines its efficacy. Nevertheless, existing literature highlights that various economic, social, demographic, and institutional factors can impose limitations on realizing potential tax capacity, thereby constraining the level of tax effort. In this context, this research’s principal objective is to assess tax efforts spanning 1995 to 2021 for 27 European Union member states, 3 European Economic Area nations, and Turkiye. Within this framework, our regression analysis attempts to unveil the influence of critical factors affecting taxable capacity, including sectors with inherent tax challenges, international trade dynamics, the scope of the shadow economy, and the level of financial development. The findings of our study shed light on several noteworthy trends. Northern European countries exhibit a notably higher level of tax effort than the remaining sample countries and Turkiye, which lags behind the sample’s average tax effort level. Furthermore, the study postulates that enhancing financial development and curbing the shadow economy can contribute to the expansion of fiscal space by bolstering tax capacity.
 Key Words: Tax Capacity, Tax Effort, Tax Policy, Panel Data Analysis
 JEL Classification: H20, E62, 023

Technological Advancement and Its Impact on International Trade Dynamics: A Comprehensive Study of Bangladesh

This research delves into the intricate relationship between technological advancement and international trade dynamics in Bangladesh, a nation experiencing a burgeoning number of internet users and technological immersion. Analyzing data from a sample of 25 firms across diverse sectors, the study unveiled a potent correlation between technological adoption and firm growth. Notably, large firms in the Ready-Made Garments (RMG) and IT sectors demonstrated pronounced technological integration, positively influencing their trade growth. In contrast, the agriculture (AGRI) sector presented unique challenges, with medium and small enterprises perceiving technological assimilation as a significant barrier. Regression analyses reinforced technological adoption as a paramount determinant of growth, elucidating approximately 91.2% of the variance in firm growth rates. Despite the overarching positive trajectory, the research underscores variances in technological impact across sectors and firm sizes. Conclusively, while technology emerges as a catalyst for growth in Bangladesh's international trade, its uniform adoption and consequent benefits necessitate tailored strategies and infrastructural enhancements.

Research on the Relationship Between International Trade and Network

In a rapidly globalizing world economy, international trade is undergoing unprecedented growth, marked by technological advancements, energy demand, and currency fluctuations. This study explores the intricate interplay between trade networks and international commerce. As the global economy transforms, this research sheds light on key trends and characteristics shaping the international trade landscape. Through an extensive review of relevant literature, this paper investigates the role of trade networks in international trade dynamics. It delves into the significance of network structures and their impact on trade patterns, revealing insights about the core-periphery structure where advanced economies dominate while others form the periphery. The study focuses on the international trade network's features, including its virtualization, globalization, and intelligent attributes. It examines how businesses adapt to digitalization, interact through virtual platforms, and embrace the knowledge-driven nature of modern trade networks. Additionally, the research explores the implications of trade networks for enterprises, emphasizing market penetration, supply chain efficiency, brand influence, technological innovation, and resource integration. The study highlights the works of various scholars who have analyzed international trade networks. Research findings underscore the importance of understanding network structures, role centrality, and the impact of digitalization on global trade. By analyzing the evolution of trade networks and their implications for different economies, this study offers valuable insights for policymakers and businesses navigating the complex landscape of international trade. Overall, this thesis contributes to a comprehensive understanding of the relationship between international trade and network structures, paving the way for more informed decisions in a rapidly changing global trade environment.