European Trade Research Articles

Atlantic Trade and Conflict in Europe

Abstract We use over 200 years of conflict and wheat price data to provide the first quantitative evidence that Atlantic trade reduced conflict in Europe. While other determinants of intra-European conflict during the Early to Late Modern period have been proposed, the role of Atlantic trade has not been previously explored due to a lack of historical trade data. We overcome this constraint by using wheat prices to calculate time-varying measures of price pass-through between Europe and the New World, which we use as a proxy for Atlantic trade. To identify the causal effects of Atlantic trade, we exploit exogenous changes in wind patterns and tropical cyclone activity over the Atlantic Ocean to instrument trade. Our results suggest that a one standard deviation increase in Atlantic trade resulted in a 0.157 standard deviation decrease in intra-European conflict onset. We also find empirical support for Atlantic trade increasing real wages and reducing military sizes in Europe, which is consistent with the idea that the possibility of forgone Atlantic trade acted as a deterrent to conflict.

Alexander Hamilton’s Report on Manufactures and Industrial Policy

Hamilton’s 1791 state paper on manufactures is a forward-looking argument for US industrialization supported by public policies designed to encourage it. Conventional wisdom circa 1790, along with static considerations of comparative advantage indicated that the United States should stick to farming, export its agricultural surpluses, and import European manufactures. Mercantilist trade policies of the major European empires, however, were barriers to US exports. Hamilton therefore contended that US manufacturing using the latest machine technologies would alleviate the effects of European trade restrictions by creating domestic demand for agricultural surpluses. His report specifies industries worthy of support, and policy measures to encourage their development. During the century that followed, US governments adopted nearly all of Hamilton’s recommendations. These measures contributed to an average annual rate of growth of industrial output of 5 percent during that century, helping the United States to become the world’s leading manufacturing nation.

Carbon disclosures and information asymmetry: Empirical evidence on the importance of text in understanding numerical emission allowance disclosures

AbstractCarbon disclosures are essential for investors to evaluate firms’ efforts to combat climate change. In this study, we focus on a specific type of carbon disclosures—namely, emission allowance disclosures—that capture how firms implement emission reductions under the European Union emission trading system (EU ETS). Given the continuously changing institutional features of the EU ETS and the lack of authoritative guidance on how firms should account for emission allowances in their financial statements, it is exceedingly difficult for investors to understand numerical emission allowance disclosures and to compare them across—and even within—firms. Motivated by this criticism, we hypothesize and find that textual disclosures complementing numerical emission allowance disclosures are associated with lower information asymmetries between firms and their investors. Further analyses show that textual disclosures that: (i) describe the accounting approach, and (ii) contain institutional information on the EU ETS, respectively, are particularly important for improving the information environment of numerical emission allowance disclosures. Overall, our findings suggest that text can improve the understanding of numbers in a carbon disclosure context. Therefore, our study not only contributes to the (industrial ecology) literature but also has important implications for regulators, policymakers, investors, financial analysts, and firms.

The evolution of Islamic trade law under the influence of international trade practice: towards the problem of convergence of legal orders

The article provides a historical and legal analysis of the development of Islamic trade law under the influence of secular European trade law. It was concluded that until the second half of the 20th century the influence of European trade law on Muslim legal orders was one-sided. Initially, the penetration of secular European trade law into Islamic commercial law was carried out through the law of medieval merchants (lex mercatoria). From the beginning of the 19th century the reception of secular European trade law was determined by the active colonial policy of European states (the model was the French system of trade law, reflected in the Napoleonic Commercial Code). Only at the end of the 20th century international commercial practice began to take into account Islamic contractual structures, as well as religious prohibitions and permissions of Sharia.

Assessing the impact of the European Union-Vietnam free trade agreement on labor market and employment in Vietnam

PurposeThis study investigates the impact of the European Union-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s labor market and employment outcomes, considering the potential distributional consequences across various groups of workers and regions.Design/methodology/approachA comprehensive quantitative framework is employed, combining the gravity model of trade to estimate the EVFTA’s effects on trade flows, the CISAF_M1 model to simulate sectoral employment impacts and econometric models to analyze the effects on wages and decent work. The analysis draws upon a rich dataset spanning the period before and after the EVFTA’s implementation.FindingsThe EVFTA has significantly boosted Vietnam’s exports to the EU, leading to substantial job creation in labor-intensive sectors such as textiles, apparel and footwear. The agreement has also contributed to wage growth and improved access to social insurance for workers in export-oriented industries. However, the impact on other aspects of job quality is less clear. The distributional analysis reveals that the EVFTA’s employment effects have been relatively balanced across gender but have favored younger and less skilled workers as well as those in rural areas.Originality/valueThis study provides a comprehensive and nuanced assessment of the EVFTA’s impact on Vietnam’s labor market, addressing a gap in the literature on the employment effects of new-generation free trade agreements in developing countries. The findings highlight the importance of considering distributional aspects when evaluating the socioeconomic implications of trade liberalization and offer valuable insights for policymakers aiming to promote inclusive growth in the context of deepening international economic integration.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2024-0236

English Language Learning and Acquisition Theories

Introduction: Language is a powerful tool and means of communication and to communicate with others we also use other ways such as Body manners, gestures, signals and facial expressions which is also called as a non-verbal communication. English is a tool, like basic arithmetic, or literacy, or computer skills. An ability they need to master in order to function effectively in today’s world. The L1 remains the learners primary language and the only they identify with what teachers aiming for is functional English-knowing bilingualism. Socio-political status: With the European trade patterns, most of the known European-based Creole languages were existed in the coastal regions of the Americas, Western Africa, Goa and along with the west coast of India. Indian Ocean Creole languages are based on European languages with elements from Malagasy and possibly other Asian languages. Learning Language Through Culture: Learning other language is to understand the nature of the relationship between language and culture, learners need to engage with the ways in which context affects what is communicated and how. Standard English is the variety of English that is generally acknowledged as the model for the speech and writing of educated speakers in UK. It is also associated with Received Pronunciation or accent. Intuitive acquisition: We learn anther language the same way as we learnt our first language or mother tongue. Intuitive acquisition through lots of exposure to the language in authentic communicative situations. Habit-formation: Language is a set of habits: we mimic and memorize and drill the patterns of the language until we learn to produce the correct forms automatically. Cognitive Process: Language involves the understanding of underlying rules: if we master these rules, we will be able to apply them in different contexts. That may be at school, home, with community or with others. Skill-learning: Language is a skill. We learn it in school just as we learn other skills: someone explains rules or words to us, we understand and practice them until we master them and use them fluently and skillfully.

Political alliances and trade: Europe in a polarized world

This study investigates how political alliances influence trade and welfare in Europe and major global economies amidst escalating geopolitical tensions. Utilizing a panel data approach, we assess the impact of military alliances on trade through structural gravity and staggered difference-in-difference methodologies. We further simulate the potential trade and welfare effects of the strengthening and disintegration of political alliances within blocs. Results reveal significant trade and welfare consequences stemming from the expansion or disintegration of the North Atlantic Treaty Organization (NATO) and the establishment of a military alliance under the Shanghai Cooperation Organization (SCO). From a European point of view, our results suggest that the accession of new NATO members will bring economic benefits, while the US leaving NATO, or the deepening of the SCO, will bring negative trade and welfare effects. If a US exit from NATO triggers a disintegration of the alliance and the SCO creates a military alliance, this would lead to severe negative consequences for the EU. Notably, the study finds that the benefits of collective security provided by NATO substantially outweigh the costs associated with its 2% defence spending requirement.

EU Accession of Western Balkan States: The Role of CEFTA and WTO Membership

The Central European Free Trade Agreement (CEFTA) is known to have positively affected the EU accession of several central and eastern European states. The fairly modest progress of EU accessions of Western Balkan states is in stark contrast to the processes of the EU accession of the parties to the original version of CEFTA. This article analyses the role of WTO membership as an external factor determining the efficacy of CEFTA in advancing the process of EU integration in the Western Balkans (2007–2024). The article identifies two key advantages of WTO membership in the context of CEFTA’s role in the process of EU accession. The first advantage is related to the use of WTO dispute settlement to ensure compliance with standards either identical or similar to those established by CEFTA. The second advantage is based on the relatively new WTO Trade Facilitation Agreement (TFA), aimed at eliminating many of the barriers to international trade, which happen to be the key problems as regards regional economic integration in the Western Balkans. The article concludes that WTO membership could play a decisive role for the coordinated and efficient process of the European integration of Western Balkan states on the basis of CEFTA.

Transmission of economic growth between neighboring countries in Europe

ABSTRACT This study investigates the impact of economic growth of a country on the growth of neighbouring countries closely tied through trade and foreign direct investment in Europe. Empirical results show that a country’s growth has a significantly positive impact on the growth of its neighbouring countries. However, the impact is transitionary without affecting the steady-state growth of a country significantly. This study suggests that countries included in spatial econometrics should be limited to the countries with meaningful relationship. Spatial effect could be misspecified and overstated if it is included as steady-state growth factor in a growth model.

The European Union-Mercosur Free Trade Agreement as a tool for environmentally sustainable land use governance

After twenty years of arduous negotiations, in 2019 the European Union (EU) and the Common Market of the South (Mercosur) announced the conclusion of a landmark trade agreement. Celebratory fireworks, however, were soon replaced by less desirable signs of smoke: the burning of the Amazon and Cerrado biomes, which has placed the bi-regional partnership under close public scrutiny. Since then, a lively debate among scholars, policymakers, activists, and private sector stakeholders has unfolded in an effort to assess the economic, social, and environmental implications of the agreement. To contribute to this debate, we use the EU-Mercosur Trade Agreement (EMTA) as a case study to discuss the complexities of transitioning to a global green trade policy paradigm, questioning whether free trade agreements could effectively promote sustainable land use governance. Bearing in mind the current environmental footprint of EU imports of Brazilian commodities, we illustrate the challenges inherent to decoupling international agri-food trade and land conversion, examining the current estimates and projections regarding the EMTA's potential impact on land-use change in Brazil. We also investigate the sustainable development provisions in the EU-Mercosur agreement, reviewing its land conversion-related clauses. While the EMTA has limitations common to other free trade agreements, it could be a useful additional tool for improving sustainability governance in the existing trade between the two regions by establishing a structured and legally stable platform for cooperation and implementing joint initiatives. The EMTA could set a positive benchmark for future free trade agreements that Mercosur might negotiate with other countries that are larger importers of agricultural commodities.

Rewetting on agricultural peatlands can offer cost effective greenhouse gas reduction at the national level

To reach EU’s carbon neutrality target by 2050, emission reductions in the land-use sector are needed. Agricultural peatlands attribute for half of the greenhouse gas emissions of cropland in both in EU and Finland. High greenhouse gas emissions from agricultural peatlands are primarily caused by CO2 emissions following aerobic peat decomposition due to deep drainage, and studies have shown that raising water-table has potential to slow down the decomposition process. Here we studied the emission reduction potential and cost of implementing controlled drainage, paludiculture, peatland restoration and afforestation to current land use on agricultural peatlands in Finland. We created three scenarios with increasing amount of wet field use on cultivated organic soils and estimated their effects on national greenhouse gas emissions and farmers’ income. The yearly emission reduction ranged from 0.3 to 5.0 Mt CO2 equivalents in the different scenarios compared to the current state in Finland. Emission reductive land use had a negative impact on the farmers income, which should be compensated. Assuming the government compensates the lost income for the farmers, the cost of emission reduction ranged from −4 to 45 € per ton of CO2 equivalents. Rewetting provided the most emission reduction per area and was the most cost effective. We conclude that substantial emission reduction is attainable by rewetting agricultural peatlands. The cost of emission reduction is inexpensive compared to average carbon price in European Union emission trading system, or to the costs of technical carbon capture and storage in Finland.

A time-space network-based model for transportation service optimization of China Railway Express

This paper describes the development and optimization plans for the China Railway Express (CR Express). As a new type of international land transport organization, CR Express has emerged with the continuous expansion of China toward European investment and trade, and in particular, has expanded with the continuous progress of the One Belt and One Road (OBOR) initiative. In addition to improving the service quality of CR Express, the operating costs must be reduced for developing “smart railways” that serve “smart cities”. We propose a dual-objective-based function mathematical optimization model; the satisfaction of the cargo owner is considered, and the timeliness, transportation capacity, and goods category constraints of CR Express transportation are designed. Moreover, we present the normalized equivalent method of the two-objective function of the model. Finally, a case study is conducted against the background of certain trains in the western corridor of CR Express to validate the effectiveness of the model and research methods proposed in this study.

Early archaeological evidence of wheat and cotton from medieval Ile-Ife, Nigeria

This study reports the earliest directly dated occurrence of archaeological wheat and cotton in the humid forests of West Africa. These are the first archaeobotanical results from the medieval urban center of Ile-Ife, southwestern Nigeria, best known for its famous artworks. Both wheat and cotton likely spread through trans-Saharan trade networks that laid the foundation for later European trade systems. Forty-eight (48) grains of free-threshing wheat (Triticum aestivum/durum) represent the largest assemblage of wheat recovered in sub-Saharan West Africa, which is surprising given that wheat cannot be cultivated locally. Larger quantities of cotton (Gossypium sp.) recovered from late 12th- to early 13th-century CE contexts suggest earlier and more widespread use than wheat. Cotton may have been cultivated and manufactured into cloth locally. The quick adoption of these exotic crops illustrates the active negotiation of prestige through culinary and adornment practices, as well as a high degree of agricultural experimentation.

The impact of the European Union emissions trading system on carbon dioxide emissions: a matrix completion analysis

Despite the negative externalities on the environment and human health, today’s economies still produce excessive carbon dioxide emissions. As a result, governments are trying to shift production and consumption to more sustainable models that reduce the environmental impact of carbon dioxide emissions. The European Union, in particular, has implemented an innovative policy to reduce carbon dioxide emissions by creating a market for emission rights, the emissions trading system. The objective of this paper is to perform a counterfactual analysis to measure the impact of the emissions trading system on the reduction of carbon dioxide emissions. For this purpose, a recently-developed statistical machine learning method called matrix completion with fixed effects estimation is used and compared to traditional econometric techniques. We apply matrix completion with fixed effects estimation to the prediction of missing counterfactual entries of a carbon dioxide emissions matrix whose elements (indexed row-wise by country and column-wise by year) represent emissions without the emissions trading system for country-year pairs. The results obtained, confirmed by robust diagnostic tests, show a significant effect of the emissions trading system on the reduction of carbon dioxide emissions: the majority of European Union countries included in our analysis reduced their total carbon dioxide emissions (associated with selected industries) by about 15.4% during the emissions trading system treatment period 2005–2020, compared to the total carbon dioxide emissions (associated with the same industries) that would have been achieved in the absence of the emissions trading system policy. Finally, several managerial/practical implications of the study are discussed, together with its possible extensions.

Techno-Economic Analysis of Electrofuel as a Shipping Fuel

Abstract In this study, we aim to evaluate the technical and economic requirements of electrofuel production through Fischer–Tropsch synthesis using green hydrogen and CO2. We find that a plant with a 1000-barrel/day capacity necessitates 60 tH2 and 424 tCO2 daily, achieving a 36% hydrogen-to-electrofuel conversion rate. The initial capital expenditure (CAPEX) is projected at 295 million USD, with an additional 139 million USD for electrolyzer replacement. The hydrogen production unit accounts for 61% of the CAPEX, followed by the direct air capture unit at 22%. The annual operating expense (OPEX) is estimated at 49.3 million USD, with hydrogen production and direct air capture constituting 58% and 25% of this expense, respectively, largely due to substantial electricity requirements. The synthesis and refining units comprise 17% of the OPEX. The levelized cost of electrofuel is calculated at 1881 USD/t, which is 2.5 times the cost of marine gas oil and 3.8 times that of very low sulfur fuel oil. However, electrofuels emission factor is found to be significantly lower, nearly 14 times less carbon-intensive than traditional fuels. We conclude that electrofuels cost competitiveness with fossil fuels depends on favorable conditions such as low electricity costs, low discount rates, and high carbon prices. While the European Union's emission trading system inclusion for maritime transport will lessen the cost disparity, it is unlikely to make electrofuels cost-competitive given the current carbon prices.

“Vivre en paix et en bonne intelligence avec les princes locaux” in Senegambia in the Age of Slave Economy: Diplomatic Treaties, Trade, Conflicts, and Peace in Interaction (1679–1815)

Abstract The violent and competitive context in which trade relations between the states of Senegambia and Europeans evolved required moments of calm and stability, which were decisive and important factors in the cohabitation of trade actors. Diplomacy was a fundamental political lever for European trade in Senegambia. It had become a major stake in the daily lives of the actors. Diplomacy was generally reserved for field actors from different political cultures and with different political and economic ambitions. Diplomacy took the form of negotiations, and took the form of simple agreements of principle, notably in the context of palavers, or the conclusion of trade and peace treaties. The aim of diplomacy, for example, was to establish strong, peaceful commercial relations between trade players and to regularize the tax system, which was the fundamental basis of trade and the expression of the sovereignty of local chiefs towards the Europeans.

Timber trade in 17th-century Europe: different wood sources for artworks of Flemish painters

The former Spanish Netherlands experienced a period of social, cultural and economic prosperity in the seventeenth century, with Antwerp as its most important commercial and artistic centre. The era’s vibrant art scene, once pivotal culturally, economically, and diplomatically, now offers invaluable insights for scientific studies on art, trade, and craftsmanship. In a study on 294 panel paintings by or related to two famous Flemish artists, Jacques Jordaens (1593–1678) and Anthony van Dyck (1599–1641), we applied classical art historical techniques, archival research, dendrochronology, and the study of panel maker’s and guild marks on the painting’s reverse to gain insights into the precise time of tree felling, the geographical provenance of the wood, and the panel makers patronised by the painters. The majority of the paintings (~ 80%), which were subjected to a dendrochronological analysis, could be dated and the results accorded well with the concomitant art historical assessment on authorship. Besides an active and well-known Baltic timber trade which provided over 71% of all the planks examined, straight-grained oak trees were also sourced from western Central Europe (20%). Interestingly, planks from the Baltic and the Ardennes region (France/Belgium) were used together in three different paintings, likely cut apart from larger panels. Employing a multidisciplinary approach to a comprehensive painting collection by individual painters provides not only a new tool to determine a painting’s date and authorship but also allows for a better understanding of the contemporary timber trade and associated craftsmanship.

First distribution records of the quarantine mite pest Oligonychus perditus (Acari: Tetranychidae) in Europe

ABSTRACT The spider mite species Oligonychus perditus Pritchard and Baker 1955 (Acari: Tetranychidae) is native to China, Japan, Korea, and Taiwan, where it has been reported as a pest of Juniperus spp. and some other conifer plants (Cupressaceae). In Europe the species, has been repeatedly intercepted on imported juniper plants. The EPPO has included O. perditus on the A1 list of pests recommended for regulation as quarantine pests, mostly because its hosts are of importance to the European nursery trade. In a survey conducted in Serbia between 2020 and 2023 O. perditus was found in 16 sampling locations on plants of the genus Juniperus, from the family Cupressaceae, as well as in order 16 sampling locations on plants of the genera Prunus and, Malus from the family Rosaceae. This species was collected on individual trees in backyards, gardens, and orchards, as well as in ruderal habitats. Populations of O. perditus were small and without economic impact. Introduction of this species into Serbia is probably a consequence of insufficient quarantine measures and relatively loose afforestation rules.

Trade and inequality in Europe and the US

Abstract Low-income countries’ share of global exports nearly tripled between 1990 and 2015, largely due to China’s emergence as an exporting powerhouse. Evidence from several European countries and the US shows that import competition from China differentially reduced employment and earnings for workers in more trade-exposed industries and regions. We show that manufacturing employment declined most dramatically in countries where import growth was not matched by a commensurate expansion of exports. We also provide new results for the UK which indicate that imports from China contributed to substantial declines in consumer prices alongside job losses in manufacturing. However, while the adverse labour market impacts were concentrated on specific groups of workers and regions, consumer benefits from trade were widely dispersed and of similar magnitude for high and low-income households. We argue that assistance targeted towards displaced workers and depressed areas would better help the losers of globalization than new import tariffs.

Mobility, Print and Trade in Europe: The Case of the Tesini Pedlars (17th–19th Centuries)

This article focuses on the itinerant print trade that actively involved the Alpine Tesini pedlars for more than three centuries (between the seventeenth and nineteenth centuries) and that profoundly influenced the cultural, social, and economic history of their home valley. The case study of the pedlars from the Tesino valley, in what is now the Trentino region of Northern Italy, offers a privileged perspective for analysing three interrelated broader questions: the dynamics and effects of mobility in Ancien Régime Alpine societies; the spread of cheap print in pre-modern Europe; and the economic system underlying this large-scale trade. Through the analysis of a corpus of previously overlooked notarial sources, this article aims to unravel the complex financial and credit mechanisms that enabled the Tesini pedlars to succeed, but which in many cases were also the cause of their downfall.