Export-oriented Activities Research Articles

ЛОГІСТИЧНА СКЛАДОВА В СИСТЕМІ УПРАВЛІННЯ ЕКСПОРТООРІЄНТОВАНИМИ БІЗНЕС-СТРУКТУРАМИ В УМОВАХ ГЛОБАЛЬНОЇ НЕВИЗНАЧЕНОСТІ

Abstract. In the conditions of intensification of globalization and integration processes, the majority of economic agents are active participants in foreign economic activity. Export-oriented activity is a component of foreign economic activity.The purpose of the article is to study the development potential of logistics support in the system of managing export activities of business structures, in particular grain traders, in the conditions of the threats of the global environment and the challenges of today.The study is based on the use of general scientific and special scientific methods of scientific knowledge. The method of system analysis was used to study the preconditions for the development of theUkrainian export-oriented business structures. The system-structural method was used to study basic measures to develop startup projects.Export-oriented Ukrainian business structures have to develop a system of managing their activities. This allows them to maintain the level of competitiveness in difficult conditions, including war and global insignificance. The prerequisites of increasing global uncertainty for export-oriented business structures, changes in exchange rates, political instability, changes in tariffs and other fees, changes in the market conjuncture are indicated in the article. The results of Ukraine's export activity have been analyzed. Economic, political-legal, social-cultural, technical, natural-climatic factors influence on export activity of a business structure. Peculiarities and problems of the functioning of export-oriented enterprises of wholesale trade in agricultural raw materials, in particular grain traders, are highlighted. It is substantiated that the logistics potential is a prerequisite for securing the competitiveness of export-oriented business structures in conditions of global uncertainty. The development of the logistics potential of grain exporters has a positive effect on the latest financial performance and growth results. The expediency of expanding the scope of using the concept of training in logistical support of the export activity of Ukrainian business structures is substantiated. The conditions and features of the activation of digitalization opportunities and the use of social networks by export-oriented enterprises of wholesale trade in agricultural raw materials, in particular grain traders, have been investigated. The development of tools for adapting the export potential of wholesalers of agricultural raw materials to the factors of changes in the global environment, which is a prerequisite for their safe functioning, will be the subject of further research. Keywords: export activity, business structure, grain traders, logistics, global uncertainty.

Current Status, Problems and Solution Suggestions of Mixed Feed and Raw Material Production Business in Hatay Province

Çalışmada, Hatay ilinde bulunan karma yem ve ham madde üretim işletmelerinin teknik, alt yapı, üretim ve pazarlama alanlarında karşılaştıkları sorunların belirlenmesi amaçlanmıştır. Bu amaçla, sekiz hammadde, üç karma yem işletmesi olmak üzere toplam 11 adet işletmede anket çalışması yapılmıştır. Hatay ilinde karma yem işletmelerinde 25.100 ton kapasiteli 26 adet, hammadde işletmelerinde ise 137.900 ton kapasiteli 55 adet depo bulunmaktadır. Hammadde olarak çoğunlukla pamuk tohumu küspesi, karma yem olarak büyükbaş besi ve süt yemi üretimi yapılmaktadır. İşletmelerde üretim şekli toz ve pelet, paketlemede ise dökme ve 50 kg’lık çuvallı ambalaj şeklindedir. Hammaddeler Akdeniz Bölgesi’nden alınıp, işlendikten sonra çoğunlukla aynı bölgeye satılmaktadır. Şimdiye kadar ihracat yapılmadığı ancak, ihracata yönelik çalışmaların planlandığı belirlenmiştir. Karma yem işletmelerinin tümünde, hammadde işletmelerinin ise %62.5’isinde yem analiz laboratuvarı bulunmadığı belirlenmiştir. İşletme sahipleri; döviz kuru, akaryakıt ve hammadde fiyatlarındaki artışın karma yemin maliyetin arttırdığını, yem satışında ve satılan yemin parasını zamanında tahsil etmede sıkıntı yaşadıklarını, bakım işçi, elektrik masraflarının yüksek olduğunu ve işletmelerinin mevcut durumundan %90.9 oranında kısmen ya da tamamen memnun olmadıklarını ifade etmişlerdir. Sonuç olarak, karma yem ve hammadde işletme sahiplerinin sınır kenti olan ilin dış pazarlara açılma konusundaki avantajını değerlendiremedikleri ortaya çıkmıştır.

Institutional bases of activation of export-oriented activities of agrarian enterprises of ukraine under conditions of deepening of eurointegration

The subject of the research is the theoretical, methodological and practical basis for studying the impact of the institutional environment on the efficiency of export-oriented production of enterprises in the agricultural sector of the economy and the activation of their foreign economic activities in the European agricultural market. The purpose of the work is to develop theoretical foundations and practical recommendations for the implementation of an effective system of institutional support for the activation of export activities of agricultural enterprises in the European development vector. Methodological basis of the article is general scientific methods of theoretical and empirical research, special methods of scientific knowledge. To conduct the research, the following methods were used: dialectical, economic-statistical, balance, normative, economic-mathematical, economic comparisons, grouping, graphic, system-structural analysis and synthesis. Results of work. The article examines the impact of the institutional environment on the development of export-oriented activities of domestic agricultural enterprises in the conditions of deepening the European integration process. The author suggests measures of an institutional and organizational-economic nature aimed at strengthening the export potential of enterprises of the agricultural and food complex and increasing their competitiveness in the common market of agricultural products of the EU member States. The field of application of results. The results and conclusions can be used in the development of a strategy for entering the European market of agricultural products for enterprises of the agricultural and food complex, training specialists in the field of international economic relations and foreign trade. Conclusions. Analysis of the current state of export-oriented activities of Ukrainian enterprises in the agricultural sector of the economy indicates the need for structural and institutional transformation of the system of organization of foreign economic activity of economic entities. In the context of the deepening of the European integration process, the functioning of enterprises in the agricultural sector of the economy is significantly affected by the internal and external institutional and market environment. Accordingly, this is reflected in the economic indicators of their activities and the competitiveness of Ukrainian agricultural products in the European market. Institutional conditions and factors that slow down the entry of Ukrainian agricultural enterprises to the European market are the following: imperfection of the national system of land market relations, lack of effective institutions of ownership and land use; inefficient structural and institutional policy of the state in the agricultural sphere; low level of institutional support, stimulation and regulation of export-oriented activities of agricultural enterprises; non-compliance of domestic agricultural and food products with European requirements and standards; imperfect quality control system for production, storage, transportation of food products, etc.

Regulatory aspects of export potential in the agricultural sector of national economy

The purpose of the article is to study the state of export potential in the agrarian sector of the Ukrainian economy and to formulate regulatory frameworks to increase its effectiveness in the content of addressing local and global aspects of food security. The subject of the study is a set of theoretical, methodological, scientific-organizational and practical regulatory bases that ensure the increase of efficiency of utilization of Ukraine’s export potential. The methodological bases of the study are the dialectical methods of scientific knowledge, the systematic approach, the fundamental provisions of general economic theory. Analytical, synthetic and deductive methods are used to solve these problems.The scientific novelty. For the first time data from the analysis of the share of export of food- stuffs in the total volume of their production in agro-industrial complex (AIC) and dynamics of import-export of foodstuffs of Ukraine for 2014-2017 are given.Con- clusions.The article discusses the principles of regulation of export potential in the agricultural sector of the Ukrainian national economy and outlines the current state of export-oriented production in the agricultural sector of the national econ- omy. The article describes the role and necessity of development of export-orient- ed activity of the agrarian food sector of the national economy in Ukraine and diversification of its production to the world markets, in favor of solving the problem of global food security for the population of the whole globe, in accordance with the estimated forecasts of the UN Food and Agriculture Organization for 2050 (FAO). The study concluded the formation and development of national com- petitive advantages takes place at three levels (companies, industries, countries) by maximizing process efficiency and continuous productivity gains. The criterion base for the performance of export-oriented activities is the introduction of a system of market and state methods of export promotion and the efficiency of the institutional environment, which ensures the achievement of sustainable socio- economic development of the country and food security for the globe as a whole.

Private sector development and provincial patterns of poverty: Evidence from Vietnam

Abstract Private sector development and the relationship between private firms and the state-owned sector continue to figure prominently in the debate about poverty reduction. Growth of private firms may generate economic opportunities, but changes of the role of the state in the economy may also carry social risks. The subnational dimension of the link between the private sector’s weight in the economy and poverty remains underexplored. How do changing regional patterns of private sector development shape the geography of poverty? Especially in transition economies, reforms altering conditions for private enterprises and foreign direct investment do not always proceed at the same speed in all regions. This paper examines the link between province-level changes in private firms’ formal employment share and poverty reduction in Vietnam’s provinces during 1999–2009. Particularly since 2000, Vietnam has taken large steps towards an equal administrative treatment of all firms irrespective of ownership. Provincial governments often enjoyed considerable freedom in their interpretation of reforms, contributing to differential province-level patterns of progress in private sector development. The empirical analysis combines data from Vietnam’s enterprise survey, independent poverty estimates, and two rounds of population censuses. Instrumental variable regressions reveal that larger increases of private firms’ employment share are associated with larger reductions in poverty. This finding demonstrates that allowing some regions to move faster or slower than others regarding reforms changing the conditions for private firms and foreign direct investment is likely to leave an imprint on the country’s geography of development. Multinational enterprises, rather than domestic private firms, emerge as drivers of the association identified in our analysis. The Vietnamese case therefore illustrates the poverty reduction potential of export-oriented activities of multinational enterprises, while simultaneously casting doubt on the contribution of small and medium sized enterprises to poverty alleviation.

Monetary Policy Shocks in the Russian Economy and Their Macroeconomic Effects

This section conducts an estimate of the impulse response function of key macroeconomic variables to monetary policy shocks in Russia. The estimates are carried out through a dynamic factor model (DFM) of the Russian economy with structural identification of shocks by imposing various sets of sign restrictions on the behavior of endogenous variables. We restricted first the monetary aggregate M2 only (a decrease in response to an increase of the Key rate), and then—simultaneously—M2, real effective exchange rate (an increase), and GDP (a decrease). We estimated the DFM using a large dataset of 58 macroeconomic and financial variables. The estimation results suggest that there is no decreasing response of consumer prices to an exogenous tightening of the interest rate policy of the Central Bank of Russia. This empirical evidence is supported implicitly by DFM-based predictions that under the imposition of such a decreasing response as an identifying restriction to the model, a positive interest rate shock is not transmitted through the interest rate channel of monetary policy to expected increases of the interest rates on commercial loans and private deposits. However, existing empirical evidence refutes this model-based result. Therefore, this study supports the view according to which a tightening of monetary policy in Russia is inefficient in terms of restraining inflation. In addition, monetary policy shocks negatively affect investments, retail sales, export and import, real wages, and employment. Different economic activities react differently to monetary policy shocks: export-oriented activities are not sensitive to these shocks, whereas domestic pro-cyclical activities (e.g. construction) can be substantially depressed in response to unexpected increases of interest rates. Finally, the expectations of economic agents are also significantly affected by shocks in the interest rate policy of the Bank of Russia.

ТРАНСНАЦІОНАЛІЗАЦІЯ АГРАРНОГО СЕКТОРУ ЕКОНОМІКИ: ОСНОВНІ ХАРАКТЕРИСТИКИ ПРОЦЕСУ

Виявлено основні тенденції процесу транснаціоналізації аграрного сектору економіки. Показано, що у ланцюжок створення вартості у світовому агробізнесі включаються власне сільськогосподарські ТНК, а також ті, які обслуговують аграрну діяльність і пов’язані з нею (постачання сільськогосподарської техніки, обладнання, насіння і добрив, переробка, оптова і роздрібна торгівля). Розкрито, що діяльність ТНК в аграрній сфері дедалі більше зосереджується на високоприбуткових, близьких до аграрного, сегментах глобального ланцюжка. Це призводить до посилення припливу до аграрної сфери раніше не пов’язаного з нею капіталу, а також не дозволяє чітко розмежувати суто сільськогосподарські та інші із згаданих ТНК. Зазначено, що агропродовольчий комплекс України в цілому істотною мірою залучений у процес транснаціоналізації, причому входження іноземного капіталу має тенденцію до нарощування. Підвищується концентрація сільськогосподарських земель ТНК та їх структурами шляхом придбання або поглинання українських агрокомпаній. Порівняння основних проявів процесів транснаціоналізації та холдингізації аграрного сектору України (зокрема, залучення корпорацій до глобального фінансового простору, в тому числі й як інвесторів, відносно вищий рівень їх технічної оснащеності та інноваційної активності, переважно експортоорієнтована діяльність тощо) дозволяють зробити висновок про їх подібність.Посилення присутності в аграрному секторі України зазначених структур мало ряд економічних позитивів. Проте при цьому відсутні достатні підстави вважати, що прихід іноземного капіталу у вітчизняний аграрний сектор дозволить значно збільшити створення доданої вартості та масштаби інноваційної діяльності. Відкритим також залишається питання щодо співвідношення можливих економічних вигод і збитків від порушення корпораціями принципів екологічної та соціальної стійкості агровиробництва. Наголошено, що значною мірою характер діяльності корпоративних структур, у тому числі й ТНК, у межах національних аграрних комплексів зумовлений прийнятими і дотримуваними в кожній конкретній країні нормами.

Методологічні особливості дослідження експортоорієнтованої діяльності

Методологічні особливості дослідження експортоорієнтованої діяльності

РОЗВИТОК ЕКСПОРТООРІЄНТОВАНОЇ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ АГРАРНОГО СЕКТОРУ ЕКОНОМІКИ

РОЗВИТОК ЕКСПОРТООРІЄНТОВАНОЇ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ АГРАРНОГО СЕКТОРУ ЕКОНОМІКИ

Multiplier effects under a disaggregate economic base model

PurposeThe purpose of this paper is to examine the multiplier effects of economic activities in the local economy of Greek non-metropolitan prefectures at NUTS3 level according to the Eurostat classification.Design/methodology/approachA disaggregate economic base model using OLS regression with clustered standard errors is implemented in 49 non-metropolitan prefectures and 17 economic activities for 2000 and 2012. The specific model indicates a clear picture of multiplier effects of economic activities among the prefectures as it has a similar logic to the input-output analysis while bearing in mind the spatial effects among prefectures. The specific model has not applied for testing base multipliers in the Greek economy according to the academic literature.FindingsNon-traditional export-oriented activities play a significant role in the economic growth of the non-metropolitan prefectures. Their multiplier effects are higher than the traditional basic activities. Especially, some of these activities indicate strong shifts on specific local activities, which tend to be the significant multiplier effects on the overall local economy. Of course, the existence of agglomeration economies plays a considerable role in non-metropolitan prefectures with a significant population and non-metropolitan prefectures which are in insular space or belong to the perimetric and interior mountainous space, which are sparsely populated.Originality/valueThe specific model applies at the NUTS3 level, according to the Eurostat classification. Also, the model indicates that the multiplier effects come from non-traditional export activities, such as, information-communication, arts entertainment, health services, professional support services and real estate in the overall local economy. Finally, the spatial correlation influences the sectoral multipliers.

What firm characteristics determine women ' s employment in manufacturing? Evidence from Bangladesh

Purpose– The purpose of this paper is to investigate the principal determinants of women’s employment in the manufacturing sector of Bangladesh using a firm-level panel data from the World Bank’s “Enterprise Survey” for the years 2007, 2011 and 2013. The paper sheds light on the demand-side factors, mainly firm-level characteristics, which also influence this decision.Design/methodology/approach– The authors estimate a fractional logit model to model a dependent variable that is limited by zero from below and one from above.Findings– The results indicate that firm size, whether medium or large, and firms’ export-oriented activities, have an important impact on women’s employment in the manufacturing sector in Bangladesh. Moreover, the authors find that women are significantly more likely to work in unskilled-labour-intensive industries within the manufacturing sector.Research limitations/implications– The research is limited to Bangladesh; however, much of the evidence presented here has implications that are relevant to policymakers in other developing countries.Practical implications– The study identifies factors that affect female employment, that is, where the main constraints to increase female labour force participation. The study focuses on the demand-side factors, which has been somewhat neglected in recent years. As such, it has practical policy implications.Social implications– Focusing on female employment in Bangladesh also sheds light on the nexus between labour market opportunities and social change within a country that is characterised by extreme patriarchy, which has wide-reaching implications.Originality/value– This is an original and comprehensive paper by the authors.

What Firm Characteristics Determine Women's Employment in Manufacturing? Evidence from Bangladesh

Purpose – This study investigates the principal determinants of women’s employment in the manufacturing sector of Bangladesh using a firm-level panel data from the World Bank’s ‘Enterprise Survey’ for the years 2007, 2011 and 2013. The paper sheds light on the demand-side factors, mainly firm-level characteristics, which also influence this decision. Design/methodology/approach - We estimate a fractional logit model to model a dependent variable that is limited by zero from below and one from above. Findings - The results indicate that firm size, whether medium or large, and firms’ export-oriented activities, have an important impact on women’s employment in the manufacturing sector in Bangladesh. Moreover, we find that women are significantly more likely to work in unskilled-labour intensive industries within the manufacturing sector. Research limitations/implications – The research is limited to Bangladesh; however, much of the evidence presented here has implications that are relevant to policymakers in other developing countries. Practical implications – The study identifies factors that affect female employment, that is, where the main constraints to increase female labour force participation. The study focuses on the demand-side factors, which has been somewhat neglected in recent years. As such, it has practical policy implications. Social implications – Focusing on female employment in Bangladesh also sheds light on the nexus between labour market opportunities and social change within a country that is characterised by extreme patriarchy, which has wide-reaching implications.

Determinants of inward FDI in manufacturing: a cross-sectoral analysis for Greece

This paper examines the sectoral patterns and determinants of inward foreign direct investment (FDI) in Greek manufacturing. The panel-econometric analysis across manufacturing sectors reveals that, in contrast with low labour costs, a sector's size, labour productivity, scale economies and R&D intensity do significantly affect the attraction of FDI across manufacturing industries. Additionally, the empirical findings imply that policy measures which strengthen the natural resources-based advantages, promote industrial clusters and export processing zones, as well as upgrade the export-oriented logistics and outsourcing activities, would be expected to raise the inflow of manufacturing FDI in the country.

The effectiveness of investment incentives: the Slovenian FDI Co-financing Grant Scheme

This article analyses the effectiveness of the main instrument of Slovenian FDI policy, the 'FDI Co-financing Grant Scheme'. We look at the post-grant performance of foreign subsidiaries that received grants in 2000–09 using a double-track approach: calculation of performance premia of subsidised foreign subsidiaries, based on financial statements data, as suggested by Bernard and Jensen, and a questionnaire survey to tackle those qualitative aspects of subsidiaries' operations which are used in the official evaluation of grant applications. Subsidised foreign subsidiaries on average show better performance than comparable local companies and better qualitative characteristics than non-subsidised foreign subsidiaries. The main objectives of the scheme, creation of new capacity and jobs in export-oriented activities, have been achieved. The quality of this quantitative increase is more of a question; the data do not indicate any real breakthroughs in technological intensity, human resource development or productivity. In terms of technology and skills subsidised FDI projects remain more or less on the level of average Slovenian firms.

Geography and Exporting Behavior: Evidence from India

This paper examines locational factors that increase the odds of a firm's entry into export markets and affect the intensity of its participation. It differentiates between two different sources of spillovers: clustering of general economic activity and that of export-oriented activity. It also focuses on the effect of the business environment and that of institutions at the spatial unit of districts in India. The study disentangles the within-industry effect from the within-firm effect. A simple logit specification is used to model the probability of entry. The analysis is based on a panel of manufacturing firms in India, which allows for the introduction of firm-specific controls and a battery of fixed effects. The findings suggest that exporter-specific clustering, general economic agglomeration, and institutional factors affect firms'export behavior.

Innovation and economic growth in China: evidence at the provincial level

China has enjoyed high economic growth for three decades since the initiative of economic reform in 1978. This growth has, however, been driven mainly by labour-intensive, export-oriented manufacturing activities. Has innovation played a role in China's economic growth? What are the determinants of innovation in the Chinese economy? These are some of the questions that are to be explored in this study using China's provincial statistics. Answers to these questions have important policy implications for China's economic development in the future, as innovation is vital for the transformation of the country's growth model.

The Emergence of New and Successful Export Activities in Brazil: Four Case Studies from the Manufacturing and the Agricultural Sector

This paper investigates the emergence of new successful export activities in Brazil through the analysis of four industry case studies: furniture, swimwear, soybeans and grapes. Extensive secondary data research was done to study industries’ historical development and to understand the elements that affect the discovery of new export-oriented activities and their diffusion in the economy. Detailed analysis was carried out to identify the role of the public sector in the discovery and diffusion process, if any. Comparison of the four experiences shows different models of diffusion and demonstrates how barriers to discovery, spillovers and institutional responses varied dramatically among the cases. The paper extracts some general conclusions concerning the role of pioneer firms, external actors and public sector institutions. Lessons learned aim to help policymakers design positive policyinterventions in Latin American countries.

The localization of electronics manufacturing in the Greater Pearl River Delta, China: Do global implants put down local roots?

Against the background of a recent shift in growth dynamics from export-oriented activities towards the domestic market in Chinese regions, it is the aim of this paper to demonstrate how the spatial organization of the electronics industry in Hong Kong and the Pearl River Delta has evolved over time and to assess the impact of the institutional setting and differences between Hong Kong and the Pearl River Delta on localization and upgrading of the industry. The empirical findings suggest a strong trend towards the localization of business activities in China and a differentiated perspective regarding the kinds of activities that are more likely to be localized. An advanced front shop, back factory model with complementary, but intertwined assets has been identified. The institutional interpretation of spatial processes has proven its potential to further develop contextually sensitive concepts for the economic geography of China.

Knowledge Spillovers and Entrepreneurs' Export Orientation

We draw upon the economics literature, and the literature on knowledge spillovers in particular, to examine to what extent a country's level of foreign direct investment (both inward and outward) and international trade (export and import) influence the export orientation of its entrepreneurs. We also examine the relationship between entrepreneurs' export orientation and a country's overall level of entrepreneurial activity. We test our hypotheses using macro-level data on 34 countries over a four-year time period (2002-2005). We find that a country's outward foreign direct investment as well as its export and import positively influence entrepreneurs' export orientation. We also find that the extent to which a country's entrepreneurs engage in export-oriented activities affects the subsequent emergence of new businesses within the country's borders. We discuss our findings, and point to the study's implications and limitations.

Economic Growth and Poverty Reduction by Region: Chile 1990‐96

This article examines the evolution of poverty in Chile during 1990‐96, a period of rapid economic growth. It shows that Chile has embarked on a significant poverty‐reduction trajectory. The robustness of this result is examined by using nonparametric estimates of the income distribution and a stochastic dominance test. Growth is an important factor in explaining the poverty reduction that has occurred. Using the Datt‐Ravallion decomposition, it accounts for over 85% of poverty reduction at the national level. However, the pattern varies significantly across regions. Both growth, and its contribution to poverty reduction, vary significantly among regions. This seems to reflect the sectoral composition of growth across regions, with export‐oriented activities producing a larger poverty‐reduction impact.