Export Economy Research Articles

The dynamic effect of trading between China and Taiwan under exchange rate fluctuations

As an export-oriented economy, Taiwan’s export income can be easily influenced by internal and international economic factors, including the industrial production index (IPI) and the exchange rate. With China being Taiwan’s largest recipient, Taiwan’s export income from China is extremely important to Taiwan’s economy. Therefore, this research investigates the nonlinear relationship between the IPI of Taiwan and Taiwan’s export income from China with the application of a panel smooth transition regression (PSTR) model. In addition, the currency exchange rate of RMB to NTD, which is the transfer variable, is used to examine the dynamic effect. The research period is monthly data ranging from January 2001 to February 2022. The empirical results show that the effect of the IPI of Taiwan on Taiwan’s export income with China is dynamic. Moreover, with the existence of a threshold value, its influence changes as the currency exchange rate of RMB to NTD varies over time. Finally, regardless of whether the currency exchange rate of RMB to NTD is above or below the threshold value, as the IPI of Taiwan increases, Taiwan’s export income from China also increases, differing only in the degree of increase.

Making MalagasyZebu: The Biopolitics of Cattle Commodification in Socialist Madagascar, 1960–1978

AbstractAt the dawn of Madagascar’s independence in 1960, political entrepreneurs harnessed the enduring significance of Malagasy cattle, known aszebu, and declared them integral to the new national identity. From 1960–1972, President Philibert Tsiranana led the country through the period known as the First Republic, in which officials and technocrats launched development projects around breeding and constructing abattoirs and feedlots, in the hopes of creating a viable international meat export economy. For elites,zebuserved as speculative vessels for remaking economic and political geographies and shifting away from dependence on French interests. Malagasy government officials and technical experts saw pastoralists as key to actualizing the economic potential of cattle and they sought to combat “peasant idleness” as a hindrance to Madagascar’s flourishing. Pastoralists, though, challenged the bounds of top-down authority and debated the kinds of knowledge that could and should inform modernization projects in the new nation-state. Cattle ranchers’ critiques of the logics and encroachment of prescriptive modernization schemes during the 1960s and 1970s can be understood as their insistence on sharing in the fruits of independence, and that they, with their deep knowledge of cattle behavior, had a role to play in forging meaningful, prosperous lives in broader ancestor-focused cosmologies. Investigating the twinned history of Madagascar’s beef exportation and cattle modernization plans reveals how cattle were enlisted in the project of nation-making and a crucial moment of possibility, in which state-crafters ambitiously pursued a path toward self-determination while navigating oscillating geopolitics and asymmetrical global economic relations.

Міжнародний досвід післявоєнного розвитку економіки: уроки для України

The article is devoted to issues of developing Ukrainian economy after the war. Damage for Ukrainian economy in 2022 after the aggression of the russian federation in 2022 is enormous. Economic consequences of aggression of the russian federation for Ukraine are comparable to consequences for other countries in XX century after the wars. This fact causes the expediency of studying and using experience on the mentioned countries concerning development of their postwar economies. There is an experience of the postwar economic development of Southern Korea, Germany, Italy and Japan analyzed in the article. A special attention is devoted to Marshall Plan and Morgenthau Plan. It is shown that, from the one point of view, actions and drivers of postwar economic developing were similar for different countries. From the other point of view, all even similar actions and drivers of postwar economic developing took into account the specific features of economic situation and national mentality in every country. Analyzing postwar economic development of some countries allowed specifying the general factors of successful postwar economic development. Such factors include the specified plan of actions, recovering the damaged infrastructure of the national economy, the large-scale investing and financial support, grants, industrialization of economy and accent on highly technological industries, time-bounded character of planned actions, making the necessary institutions or their massive involvement (in case if they exist), defining all the participants of the planned actions, systematic and consistent character of the planned actions, making the export-oriented economy, partnership between large businesses and a State, combining the tools of market-oriented economy and centralized state planning.

Dampak Green Campaign pada Media Sosial Terhadap Purchase Intention Slow Fashion Product dengan Environmental Attitude sebagai Variabel Mediasi

According to a survey by the Ministry of Industry, in 2019, the export growth of the apparel textile industry in Indonesia increased significantly to 56% of creative economy exports. Fast-fashion products encourage consumers to dress continuously, following trends at low cost. The fact is that fast-fashion products harm both social and environmental aspects. However, slow-fashion products have a longer product life cycle, better quality, and relatively higher prices and require full awareness from fashion businesses and consumers to slow down the production and consumption cycles of fashion products. Slow-fashion businesses carry out campaigns through Instagram, hoping that consumers will become aware of environmental conditions, adopt green behaviour and change attitudes toward consuming slow-fashion products to preserve the environment. This research is expected to provide information to slow-fashion businesses regarding purchase intention and environmental attitudes from green campaigns through Instagram to support environment-based business activities, especially slow-fashion products from Indonesia. The quantitative research method is obtained from a Likert scale questionnaire survey and analyzed using Structural Equation Modeling. Using the convenience sampling method, 128 respondents found that green campaigns and environmental attitudes positively and significantly affect the purchase intention of slow-fashion products. Furthermore, environmental attitude is mediating variable between green campaigns and slow fashion product purchase intention

GEOECONOMIC FRAGMENTATION: LIKELIHOOD OF GLOBAL FINANCIAL RECESSION AND ANALYSIS OF BANKING RISKS IN UKRAINE

The article was prepared as part of the scientific research “Accounting and financial mechanism of innovative interaction of business entities in the context of the transformation of the knowledge economy and socio-behavioral restrictions.” The article provides a systematization of the concerns of leading economists and financiers regarding the probability of a global financial recession. Current high inflation, low growth rates, high debt and high levels of fragmentation have been proven to reduce the incentives for investment needed to restore growth and improve living standards for the world’s most vulnerable. Both weak demand and high borrowing costs will put pressure on global financial companies, which in turn will force multinationals to cut costs, from cutting operating costs to laying off workers, it said. The author’s vision of methodological configurations and models of innovative interaction of business entities in accordance with the conditions of global challenges is given. The types of trade restrictions and barriers to technology diffusion are characterized, as well as the nature of geo-economic fragmentation that can be felt through cross-industry restrictions, namely cross-border migration, reduced capital flows and a sharp decline in international cooperation, which will make the world even more prone to upheavals. It is emphasized that the export-oriented economies especially suffer from fragmentation. Lower-income consumers in advanced economies will lose access to cheaper imported goods. Small open market economies will suffer greatly due to their heavy reliance on open trade. Supply chain disruptions are projected to have no impact on business activity in 2023, and the cost-of-living crisis may also be nearing its peak, with most. It is proposed to carry out an effective policy in the field of providing the financial market with banking regulation instruments and attracting new investment resources with a guarantee for investors to return their own funds. Scenarios for adapting the accounting and financial mechanism of innovative interaction of business entities to global challenges have been developed.

Drivers of Exports Competitiveness in Manufacturing: A Comparison between China and Germany

In recent years, globalization has brought significant development opportunities to various economies worldwide, including influences for export-oriented economies such as China and Germany. This paper examines the export competitiveness of China and Germany in terms of labor market conditions and non-price factors, as well as the impact of China as an emerging economy on German manufacturing export competitiveness. Labor costs, productivity, and market reforms are considered to analyze labor market competitiveness. Non-price competitiveness is examined through explorations of product innovation, quality, and high-tech products. This article found that China's manufacturing export advantage is primarily due to the low labor cost of its workers, and FDI contributes to China's technological and high-tech export advancements. The competitiveness of German exports is attributed to the labor market reforms in Germany and the innovation and high quality of its products. On the other hand, wage inequalities exist in both China's and Germany's manufacturing industries. The study also finds that while emerging economic giant China has gained significant export market share, Germany can remain competitive.

An interpretable machine-learned model for international oil trade network

Energy security and energy trade are the cornerstones of global economic and social development. The structural robustness of the international oil trade network (iOTN) plays an important role in the global economy. We integrate the machine learning optimization algorithm, game theory, and utility theory for learning an oil trade decision-making model that contains the benefit endowment and cost endowment of economies in international oil trades. We have reconstructed the network degree, clustering coefficient, and closeness of the iOTN well to verify the effectiveness of the model. In the end, policy simulations based on game theory and agent-based model are carried out in a more realistic environment. We find that export-oriented economies are more vulnerable to being affected than import-oriented economies after receiving external shocks. Moreover, the impact of the increase and decrease of trade friction costs on the international oil trade is asymmetrical, and there are significant differences between international organizations.

The Effect of Human Resource Quality and Technological and Market Accesses on Creative Economy Development in Indonesia

This study primarily aimed to analyze the effect of the human development, Information, Communication, and Technology development index, and creative economy export value on the gross domestic product of the creative economy. Data were analyzed using multiple linear regression with Eviews 12. Study samples were time series data of creative economy GDP, Human Development Index, ICT development index, and creative economy product export values between 2007 and 2020. This study found that: (1) HDI significantly and partially affects the creative economy GDP, (2) the ICT development index significantly and partially affects the creative economy GDP, (3) creative economy product export values significantly and partially affect the creative economy GDP, and (4) HDI, ICT development index, and creative economy export values significantly and simultaneously affect the creative economy GDP. The result of this study suggests the need for the government to improve education quality, build sufficient, equal ICT infrastructure, and make regulations that facilitate creative economy actors. The creative economy actors are recommended to develop more creative products, while educators are suggested to develop more innovative learning methods.

Exploring the impact of managerial abilities on the competitive advantage and performance of creative industries in Indonesia during the post-pandemic recovery phase

In the pre-COVID-19 era, the creative fashion industry stood as a robust pillar in Indonesia's economy, contributing to over 50 percent of the nation's creative economy exports. Batik clothing and hijabs were at the forefront, emerging as the key export products. However, with the advent of the COVID-19 pandemic, this once thriving sector suffered substantial setbacks. This study aims to investigate how managerial ability influences competitive advantage, and whether the performance of that small-medium creative sectors is directly affected by managerial ability or indirectly through the mediation of competitive advantage. Our study aims to extent the existing studies by focusing on the sustained resilience of businesses in a post-pandemic. The study's sample consists of 134 Batik business owners and/or managers from East Java, Indonesia. The gathered data was then processed and analyzed using a structural equation model. Although the findings indicated that managerial ability did not directly affect business performance, there was a positive relationship between managerial ability and business performance when mediated by the competitive advantage. These findings suggest that competitive advantage continues to play a crucial role in business performance. The higher the managerial ability, the greater the potential to enhance their competitive, which in turn escalates their performance.

Study on the Spatial–Temporal Pattern Evolution and Carbon Emission Reduction Effect of Industry–City Integration in the Yellow River Basin

The coordinated promotion of industry–city integration and carbon emission reduction is of great significance to the construction of a green economic system and deep participation in global environmental governance. Based on the overall framework of the “production–life–ecology” system, the theoretical mechanism of the impact of industry–city integration on carbon emissions is systematically clarified. Taking the Yellow River basin as a sample, the spatiotemporal heterogeneity of the effect of industry–city integration on carbon emissions is empirically tested by using the methods of the dispersion coefficient coordination function, standard deviation ellipse and STIRPAT model. The results show the following: (1) The coordinated integration of industry and city has significant carbon emission reduction effects, thus indicating that industry–city integration and carbon neutralization can achieve both, and that the conclusion is still valid after endogenous treatment and a series of robustness tests. (2) The development of an export-oriented economy and informatization can significantly promote carbon emission reduction. The process of economic development, infrastructure construction and population quality improvement may aggravate regional carbon emissions in the short term. (3) Further analysis shows that the carbon emission reduction effect of industry–city integration has significant spatial heterogeneity, especially in the upper and lower reaches of the Yellow River and regions with moderate carbon emission intensity. Scientific and technological innovation and environmental regulation play a positive role in regulating the carbon emission reduction effect of industry–city integration.

Assessing farmers’ income vulnerability to vanilla and clove export economies in northeastern Madagascar using land-use change modelling

ABSTRACT Using a participatory Bayesian network-based land-use decision model, we simulate future land-use patterns under various scenarios, including changes in vanilla and clove market prices as well as changes in irrigation water availability and potential harvest failures. Findings indicate that specifically the vanilla value chain (compared to the clove value chain) has a major influence on farmers income vulnerability. Abandoning vanilla cultivation may lead to poverty once income from vanilla reaches a certain threshold. By comparing farmer’s income gains from cash crop production with costs for buying rice to cover basic needs, we show that while focusing on cash crop production is more lucrative, it is, however, highly risky with regard to climate change, price volatility and possible crop thefts. Such lock-in-effects in cash crops, like the vanilla ones in northeastern Madagascar, are essential to be considered, when designing policies for a more sustainable development of resource-rich but poverty-prone regions.

Simulating Rubber Prices under Geometric Fractional Brownian Motion with Different Hurst Estimators

Natural rubber was a vital pillar of Malaysia's export-oriented economy throughout much of the twentieth century, according to the Economic History of Malaya (EHM) website, the worldwide demand for natural rubber is expected to expand at a CAGR of 4.8% in the future (2019–2023). Therefore, it could be concluded that rubber is one of the commodities that should be monitored. Thus, the forecasting of the rubber price should be analysed for the future use. This research focuses on the simulation of rubber prices using geometric Brownian motion and geometric fractional Brownian motion. Moreover, an analysis in the value of hurst exponents' estimator were also done using 3 different methods, Rescaled Range Analysis, Aggravate Variance Method, and Residuals of Regression Method that bases on the slope deviation technique. Finally, an error analysis was done by the calculation of Mean Absolute Percentage Error (MAPE) value to analyse the accuracy of the simulation models.

Carbon Tax in Taiwan: Path Dependence and the High-Carbon Regime

As it has an export-oriented economy, Taiwan urgently needs to keep up with the growing trends toward carbon taxation. However, making the institution of a carbon tax a reality in Taiwan has proven to be difficult. Since 1998, Taiwan has explored the possibility of putting a tax on carbon many times. Specifically, three main windows of opportunity emerged to adopt a carbon tax during this period; however, all of them failed. This study mainly explores why these three opportunities failed, what structural factors hindered them, and how those structural factors formed path dependence and locked the entire society back onto the existing development track. Firstly, Taiwan’s high-carbon industrial structure has established the rapid growth of energy-intensive industries since the end of the 1990s and has created an economy with high energy consumption and pollution levels. Secondly, this analysis showed that through the combination of government bureaucracy, industry, and the China National Federation of Industries, this brown economy and high-carbon emission structure generated institutional, cognitive, and techno-institutional complex lock-ins, which have led Taiwan to its current path and hindered its transformation. Thirdly, under the above framework, this study further analyzes the contexts and problems that caused the three windows of opportunity to fail. Finally, by linking the economy-first orientation of developmental states, this study identifies structural difficulties and possible breakthrough conditions for newly industrialized/industrializing countries that are undergoing low-carbon transitions.

Effect of Manufacturing Sector Earnings on Trade Balance in Kenya.

Trade balance position is a vital component of economic growth and development for any economy. It is expressed in monetary terms over a prescribed time period and measures the variance between the value of what an economy exports and imports. Kenya is a market- based economy and has continued to benefit a lot from key sectors of agriculture, manufacturing and tourism. Persistent and continuous trade deficits is unfavorable to any economic outlook since it negatively impacts level of employment, growth and foreign exchange. Kenya‟s trade balance position is heavily supported by key sectors of agriculture, manufacturing and tourism through their immense contribution in foreign exchange earnings. The manufacturing sector on the other hand enjoyed a significantly high rate of growth between 1964 to 1974 of respectively 4.2% and 31% but continued to experience mixed growth rates in the 90s of 3.6% and 2.7% attributed to trade liberalization, election uncertainties, changing policies on import duty. Literature on how trade balance affects economic growth exists but there is limited evidence relating manufacturing and the sector affects trade balance. This study aimed to investigate the effect of manufacturing earnings on the trade balance in Kenya. This study was anchored on the Absorption theory of trade and used correlation research design and secondary time series data from 1964–2018. The data was collated from Kenya National Bureau of Statistics as contained in Statistical Abstracts. Vector Error Correction findings registered significance at 5% level with coefficients of 0.904 signifying that a 1% increase in net earnings from manufacturing increases trade balance by 0.904%. Trade balance is self-correcting at an annual rate of 43.7%. This study further concluded that in the long-run, earnings from manufacturing sector has a strong relationship with trade balance position in Kenya in the current period. This study recommends a strengthening of the manufacturing sector to help improve the positive gap between earnings from exports and imports in Kenya.

Development of Financial and Credit Relations in the Aspect of the Formation of Export-Oriented Economy of Agroindustrial Complex of Siberia

Development of Financial and Credit Relations in the Aspect of the Formation of Export-Oriented Economy of Agroindustrial Complex of Siberia

ВПЛИВ ПОЛІТИЧНИХ ТА ТЕХНОЛОГІЧНИХ ФАКТОРІВ НА ПРЯМІ ІНОЗЕМНІ ІНВЕСТИЦІЇ: ПОРІВНЯЛЬНИЙ ЕКОНОМІКО-МАТЕМАТИЧНИЙ АНАЛІЗ УКРАЇНИ ТА КРАЇН СВІТУ

Background. Over the past quarter century, there has been a noticeable increase in foreign direct investment (FDI), especially in developing countries. The relevance of this research stems from geopolitical changes, technological progress, and the crucial role of FDI in financing economic and social development. This article is dedicated to examining (FDI) in the context of determining factors that make a recipient country attractive. Methods. The selected key influencing factors include political and technological aspects across seven different countries worldwide, including Ukraine. Using regression modeling methods for seven countries (Ukraine, Germany, the United Kingdom, Lithuania, Romania, the United States, and Japan), we have identified the key factors that have the greatest impact on FDI in each of these countries. Results. The analysis highlights the importance of factors such as political stability and the import of ICT goods for attracting FDI to Ukraine. However, the study emphasizes that such involvement necessitates the establishment of political stability within the country and the development of an export-oriented economy. It underscores the crucial importance of opening international markets for Ukrainian products to facilitate economic growth and attract foreign investment. Conclusions. The article concludes by emphasizing the significance of attracting FDI for the reconstruction of infrastructure, businesses, and the IT market, particularly with regard to funding from international organizations and investment by international corporations in Ukraine and other post-war partner countries. However, this involvement requires the achievement of political stability in the country, as well as the formation of an economy focused on the export of goods. For this reason the opening of international markets for Ukrainian products is crucial.

Market-Oriented Reform of the Yuan Exchange Rate: Organizational and Analytical Aspects

The article traces the evolution of the market-oriented reform of the exchange rate of the yuan, the national currency of the People's Republic of China. The purpose of the study is to reveal the consistently implemented reform aimed at domestic economic growth on the internationalization of the yuan exchange rate. A hypothesis was formulated according to which, in the conditions of an export-oriented economy, the internationalization of the exchange rate of the national currency without opening financial accounts of the balance of payments is able to remove the limits of economic growth, and thereby allows an adequate response to external and internal negative challenges (global economic crises, pandemic, sanctions, etc.). To test the hypothesis: 1) the specific practical measures are traced that were taken by the People's Bank of China to internationalize the yuan as a tool for attracting external resources for the growth of an export-oriented economy from 1994 to the present; 2) methods of statistical, comparative and step-by-step regression analysis, synthesis, generalization, as well as the logical method were used. The results of the study confirmed the correctness of the formulated hypothesis. Based on them, it is concluded that improving the market-oriented reform of the yuan exchange rate without opening financial accounts of the balance of payments may consist in creating a hidden target zone of the yuan exchange rate together with the reform of the currency system and the mechanism of currency issuance under the influence of the yuan equivalent of foreign exchange reserves. The theoretical significance of the results obtained consists in substantiating the variety of ways of internationalization of the national currency in relatively undeveloped domestic financial markets. The practical significance is connected with the generalization of current measures for further internationalization of the yuan without opening financial accounts of the balance of payments: the abolition of the average parity and the daily floating limit of 2%; the establishment of a hidden target zone for the yuan exchange rate based on the equilibrium exchange rate; the creation of exchange rate equalization funds for operations on the open market; optimization of the structure of reserve assets and increase shares of gold reserves.

India-ASEAN Trade Relations (2008-2018): A Decade of Redefining Bilateral Ties

International Trade among ASEAN has been increasing and it has resulted in growth of regional trade in recent years. India and Southeast Asian Countries can be tracked from ancient time with common geographical proximity, cultural affinity, trade and investment, historical evidence have suggested there has been a flowing of trade relations between India and ASEAN. The trade between India and ASEAN has witnessed a change in the various policy reforms and trade agreements. The overall figure suggests that ASEAN is an export-oriented economy and has a great opportunity for India. India’s relationship to ASEAN has created a diplomatic initiative to promote economic and strategic connections across the region. The trade with ASEAN from the year 1992 has been underperforming but India compelled to look to its neighbors for better opportunities.

Worker rights and social justice in Zimbabwe’s mining sector

This paper is an overview of workers’ rights in Zimbabwe focusing on the abuse, exploitation of workers and the brutal attitudes displayed toward mine workers and trade unions officials by mining companies and government authorities. Zimbabwe’s mining sector plays a major role in Zimbabwe’s export economy. However, Zimbabwe’s mining sector, like many other mining sectors in the developing world, has workers’ right issues. Considerable attention has been given to the labour legislation by the government of Zimbabwe but there are still serious violations of workers’ rights in Zimbabwe. Mining firms involved in extracting the mineral wealth of the country are benefiting at the expense of workers. They are operating with little regard for the well-being of its employees. In light of this, the present study highlights and synthesizes workers’ rights issues in the Zimbabwe mining sector. The study also offers practical recommendations that could address the problems that mining workers are currently facing in Zimbabwe

Beyond the Whiteness

Saverio Salvioni, Cava di Ravaccione, 1810–1813 (Source: Archivio di Stato Massa e Pontremoli) Marble extraction in the Italian Apuan Alps has been known since Roman times, and its historical importance is symbolized by masterpieces of Western art history. However, the Carrara marble industry has recently received harsh criticism for operating in the protected area of the Apuan Alps Regional Park, recognized by UNESCO since 2015. Environmental and social concerns about mining have arisen from the extreme acceleration of all the productive phases of the extractive industry. From the mid-twentieth century, the exploitation of geological deposits of marble grew exponentially thanks to the development of powerful extraction technologies and a global export economy that creates only relatively few occupations in Carrara. Within this context, photographic and cinematographic projects have increasingly focused on the environmental risks created by the marble mining industry. This article shows how visual representations of Carrara have changed in recent years via an analysis of three case studies: the internationally acclaimed documentary Anthropocene: The Human Epoch (2018), the climbing project and Italian short film Carie (Cavity 2019), and Lorenzo Shoubridge’s naturalistic photographs in Apuane: terre selvagge (Apuan Wildlands 2018). These case studies offer an innovative perspective on the landscapes of marble extraction. Previously, these landscapes were represented following other visual trends emphasizing the technological sublime found in the geometric shapes of the white quarries, the working conditions of marble laborers, and the myth of the purity of marble used in artistic sculptures. The three examples analyzed in this paper attempt to go ‘beyond the whiteness’ by focusing on the scale of environmental destruction (Anthropocene: The Human Epoch), the more-thanhuman perspective (Apuane terre selvagge), and the social struggle for preserving a mountain region through creative solutions (Carie). In other words, new aesthetic and ethical sensibilities are challenging established twentieth-century narratives of the Carrara marble quarries by focusing on a new element: the environment.