Export Sector Research Articles

Imported Inputs, Balance of Payments and Economic Growth: a model and a test on the case of Turkey

Several countries rely heavily on imported intermediate inputs for the manufacturing of their exported goods. Understanding the implications of this reliance on a country's growth performance is vital. To address this issue, we conducted an in-depth analysis using the multi-sectoral balance-of-payments constrained growth model with data from Turkey spanning 1970 to 2019. We used the autoregressive distributed lag method to estimate sectoral export, final import, intermediate goods import, and total import demand functions for five technology-based sectors. Subsequently, we calculated growth rates using the multi-sectoral balance of payments constrained growth models, factoring in the estimated income and price elasticities, as well as the respective sectoral shares in total exports, total imports, total final imports, and total intermediate goods imports. Our results demonstrate that the multi-sectoral balance of payments constrained growth model, which incorporates the impact of imported intermediate goods, successfully predicts Turkey's growth path. The findings indicate that structural changes in the production process and the use of imported intermediate inputs have a positive impact on exports. However, Turkey's significant dependence on imported intermediate goods during the production process leads to a decrease in the multi-sectoral balance of payments constrained growth rate.

Eficiencia técnica en la ganadería de carne bovina en Uruguay

Livestock farming is the agricultural activity with the greatest individual land-use, but it faces competition from other sectors for land, and is criticized for its environmental footprint. In this global context, Uruguay emerges as an important case study, boasting a long tradition and significance in the beef export sector. Enhancing livestock productivity is imperative to mitigate environmental impacts, and bolster farm competitiveness and food production. This study delves into the technical efficiency of cattle ranches focused on cow-calf production in Uruguay during the 2011 agricultural year, with nationwide and mandatory data coverage. Using data from the 2011 General Agriculture Census we estimate a translog stochastic production frontier model encompassing key inputs (livestock units, grazing area, and labor), along with control variables such as soil suitability and infrastructure improvements. Our findings underscore the potential to augment Uruguay's beef production by an average of 26.4%, harnessing existing resources and technology while improving ranch management. Moreover, variables like the extent of reliance on livestock farming as the primary source of income of the ranch, the use of outsourced services, foreign cattle ownership ratios, and agronomic and veterinary consultation exert noteworthy significant impacts on TE.

INVESTMENT IN MANUFACTURING INDUSTRIES AND THEIR IMPACT ON THE FOOD SECTOR IN JORDAN

Purpose: This research aims to demonstrate the impact of manufacturing growth, exports, and the GDP deflator on the food industry. Furthermore, it examines the influence of manufacturing growth on the food industry from 1983 to 2021. Theoretical Framework: It should be highlighted that the global financial crisis, notably in the industrial sector, including the food sector, has had a negative impact on economic performance in 2021 (Central Bank, 2022). Jordan is still suffering from the economic consequences of events in neighboring nations. Design/Methodology/Approach: The methods utilized in this study include descriptive methods and statistical analysis, which allow for the examination of the parameters impacting the research issue and the description and measurement of the relationship between them. Findings: It is proven that the processing sector's production volume positively impacts the food industry by testing the hypotheses based on the research results. The GDP deflator has a positive impact on the food industry as well. Research, Practical & Social Implications: It is advised that the food sector be given serious consideration as it has a significant impact on the country's economy and that several studies and research relating the GDP deflator to various other economic sectors be presented in order to identify and contrast the most significant economic sectors. Originality/Value: The findings demonstrated that the expansion of exports in all economic sectors has a detrimental effect on the expansion of the food industry. The study also demonstrated that the impact of the GDP deflator on the food industry is favorable. It is advised that serious attention be paid to the food sector because it significantly impacts the country's economy. Research and studies that link the GDP deflator to various other economic sectors should be presented to identify and contrast the most significant economic sectors.

PEMANFAATAN GRACILARIA SP. SEBAGAI KOMODITAS UNGGULAN DI DESA KUPANG SEBAGAI DAERAH DEVISA RUMPUT LAUT

The foreign trade or export sector has a significant impact on Indonesia's economic growth, especially East Java. One of the regencies that is considered to have contributed to increasing exports is Sidoarjo Regency with quite large potential for Gracilaria products. Based on the main issues and opportunities of Sidoarjo district, the research team focused on economic empowerment which was actualized through the Entrepreneurial Village action in the PPK Ormawa program. Based on the issues discovered by the people of Kupang Village, Jabon District, the PPK Ormawa UKM Penalaran team created various innovations in processed food products. The food products have high quality, high marketability, and compete on the market. The products are healthy noodles and meatballs. This has been realized through the "Grapovition" program hence the community is able to make processed seaweed products. Training was also provided in making attractive packaging and digital marketing or "Gracimarket". In addition, the community is also trained to sell and market the products at large local exhibitions directly, through the Marketing by Booth "Marboth" program. Lastly, the "Si Ruru" program is also provided to expand sales of seaweed and processed seaweed products. The innovation programs of community service and empowerment activities carried out in Kupang Village, Jabon Sidoarjo District aims to achieve and realize SDGs points 8, 9, 10 and 17. The PPK Ormawa team measures the program's sustainability at 95% from the benchmark of having a business house to produce processed red seaweed

Real exchange rates and manufacturing exports in emerging economies: the role of sectoral heterogeneity and product complexity

The empirical evidence on the relationship between the real exchange rate and export performance in emerging economies is inconclusive. In this paper, we present evidence that one reason for this inconclusiveness is the use of real exchange rate (RER) measures that do not consider the heterogeneity between economic sectors. To this end, we calculate a unique sectoral bilateral RER index (SBRER) for 12 Latin American economies, which considers the variation of producer price differentials and bilateral nominal exchange rates across 21 manufacturing sectors and 38 trade partners between 2001–2018, and to estimate the effect of SBRER movements on manufacturing exports. The regression results show that the SBRER is a significant determinant of aggregate manufacturing exports, whereas the bilateral RER is not significant. Moreover, sectoral export elasticities indicate that mainly sectors with low levels of product complexity and, to a lesser extent, those of medium complexity are affected by RER movements. These findings show that it is important to consider sectoral heterogeneity when estimating RER export elasticities from a macroeconomic perspective.

Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU

AbstractA common statement found in regional policy reports is that regional growth is an “export or die” issue. However, the succession of disruptions in the international supply chain has highlighted the crucial roles of domestic activities, local markets and short supply chains, turning the environmental and resilience challenge present in growth policy into a “domestic or die” issue. Recent regional growth theories have seriously questioned export activity as the only way in which to drive regional growth and have highlighted the crucial role of the domestic sector. However, no empirical study has assessed the roles of the domestic and export sectors in growth during this troubled economic period, despite the usefulness of this information for nonbiased policy decisions. Using a spatial endogenous regional growth model as a framework, we investigate the role of the domestic sector during the 1999–2014 period for 263 European Union (EU) Nomenclature of Territorial Units for Statistics (NUTS) regions. The results stress the importance of domestic productivity for regional growth during this period, which is characterized by three economic shocks, thereby elucidating the importance of domestic productivity for competitiveness and resilience issues.

Pengelompokan Provinsi di Indonesia Menggunakan Time Series Clustering pada Sektor Ekspor Nonmigas

Indonesia's export activities are dominated by non-oil and gas exports consisting of four sectors, namely the processing industry, agriculture, mining, and others. The government must pay attention to non-oil and gas exports for each province because exports can play an essential role in a country's economic growth. This study was conducted to cluster provinces in Indonesia using time series clustering in the non-oil and gas export sector based on data patterns concerning Dynamic Time Warping (DTW) distance. The sectors used in this study are the manufacturing industry sector and the agricultural sector in 34 Indonesian provinces in the period 2017 - 2021. Time series clustering analysis uses the average linkage method with DTW distance and the selection of the optimum number of clusters using the silhouette coefficient method. The results of the analysis in the processing industry sector resulted in 3 optimum clusters, namely cluster 1 consisting of 1 province that has high processing industry exports, cluster 2 consisting of 8 provinces that have medium processing industry exports, and cluster 3 consisting of 25 provinces that have low processing industry exports. As for the agricultural sector, it produces 2 optimum clusters, namely cluster 1 consisting of 5 provinces that have high agricultural industry exports, and cluster 2 consisting of 29 provinces that have low agricultural industry exports. The clustering results in the processing industry sector and the agricultural sectors have a silhouette coefficient value of 0.778 and 0.798, so it is said to have a strong cluster structure.

ГЕОСТРАТЕГІЧНЕ ВІКНО МОЖЛИВОСТЕЙ ІННОВАЦІЙНО-ІНВЕСТИЦІЙНОЇ МОДЕРНІЗАЦІЇ УКРАЇНИ: ІНСТИТУЦІОНАЛЬНЕ РЕГУЛЮВАННЯ ТА ОРГАНІЗАЦІЙНО-ЕКОНОМІЧНІ МЕХАНІЗМИ РОЗВИТКУ ЗОВНІШНЬОЕКОНОМІЧНОЇ ДІЯЛЬНОСТІ АГРАРНИХ ПІДПРИЄМСТВ

It is determined, that Russia’s ongoing war in Ukraine has attracted great attention around the world and caused concern. Radical geopolitical uncertainty is changing the rules of the global economy. Countries must accept new realities and adapt to them, prioritizing flexibility and resilience. Ukraine needs to take advantage of the geostrategic window of opportunity for innovation and investment modernization of all sectors of the economy, especially the agricultural sector, as one of the main export-oriented sectors designed to ensure food security and healthy nutrition not only for the domestic market but also for the growing global population; to become an important regional actor and eventually integrate into the European Union, to avoid becoming an outsider in the global economy. The research is devoted to the study and analysis of the problems of innovation and investment modernization of the agricultural sector in accordance with the requirements of sustainable development and global geopolitical uncertainty in order to take advantage of the geostrategic window of opportunity in the post-war period. The purpose of the study is a comprehensive assessment of innovation and investment transformations taking place in the agricultural sector in countries in the context of the challenges of global sustainable development in order to determine the priorities of institutional regulation and organizational and economic mechanisms for the development of foreign economic activity of agricultural enterprises in Ukraine in order to take advantage of the geostrategic window of opportunity in the post-war period. The objective of the scientific research is to identify the most successful group of countries in terms of implementation of intensification of production activities, efficiency of implementation of innovation policy and ability to meet the needs for food, taking into account the requirements of sustainable development, substantiation of recommendations for innovation and investment modernization of agricultural production activities of domestic producers, determination of priorities for institutional regulation and organizational and economic mechanisms for the development of foreign economic activity. The following methods of scientific research were used in the article: the method of system analysis, forecasting, generalization, modeling, namely, clustering by the K-Means algorithm. The leading countries with highly innovative agro-industrial sectors are grouped and their experience in formulating state policies aimed at supporting innovative transformations of the agro-industrial complex is summarized. The priority directions of institutional regulation and organizational and economic foundations for the development of foreign economic activity of agricultural enterprises of Ukraine are substantiated. Keywords: clustering, geostrategic window of opportunity, international trade, foreign trade, foreign economic activity (FEA), exports, imports, organizational and economic foundations and mechanisms, institutional regulation, innovation and investment modernization and transformation, institutional design of development, state support, state policy, business environment, sustainable development, agricultural production, agricultural sector, agriculture, agricultural enterprises, agricultural products, agricultural products, world / international economy.

Assessing the influence of political factors on the dynamics of exports of Russian oil and petroleum products based on the use of a combination of PESTE and SWOT analysis methods

The presented work opens a series of articles devoted to assessing the influence of external factors on the dynamics of Russian exports. In this and subsequent related works, the authors proposed to consider the external environment, which had a significant impact on the dynamics of Russian exports and the relative diffi culty of revising its structure, the basis of commodity exports of which in value terms are hydrocarbon energy carriers. This work represents a conceptual basis for the use of instrumental methods for assessing the infl uence of external factors, in this case, political ones, on sectoral aspects of Russian exports and, in particular, on the export of hydrocarbon energy resources. In the second part of this article, it is proposed to use a set of environmental analysis methods, the basis of which is the real estate market research presented in this article, which tests the possibility of combining PESTEL analysis methods with the results of SWOT analysis, which will allow, based on the use of point estimates, to describe the cumulative impact external factors on the dynamics of the main sectors of Russian exports. The novelty of the presented approach lies in the absence of a methodology for a comprehensive assessment of the infl uence of external factors on the dynamics of Russian exports using the selected tools, which seems useful and timely in light of the emergence of new political and economic factors that have a signifi cant impact on Russian foreign trade in general and on the dynamics of the carbohydrate energy market, in particular. The parameters for assessing external factors proposed by the authors were chosen by the author independently, taking into account the modern realities of the development of the world economy, which can also represent a separate point of novelty of the research conducted. The merit of the authors of this work lies in the fact that this work proposed their own vision of a comprehensive assessment of the influence of external factors on the dynamics of the country’s exports.

Increasing SMEs' Acquisitions on SMEs Export Platform using Five A's Concept

Export is one of the influential factors in national economic growth. Increasing exports and investment made by developing countries can boost output and economic growth. To bolster Indonesia’s export performance Bank Negara Indonesia currently working on the development of a new business model called Xpora, which specifically targets business actors in the export sector within the Micro, Small, and Medium Enterprises segments with a primary focus on empowering and facilitating them. Looking at the acquisition side, it is recorded that BNI has 27,321 numbers of export debtor accounts. There were only around 4,000 account that took part in the Xpora incubation program and those who managed to receive financing were 195 debtors or around 0.7% of the total export account. That indicates Xpora Acquisition strategy didn’t work well. Research was conducted using quantitative methods through survey media using the Five A’s concept to measure the awareness level of SMEs about Xpora. The results show several low touch points in the Five’s components that include ‘Ask’, ‘Appeal’, Aware representing Lack of supporting facility and change in consumer behaviour related to information seeking, lack of digital activation and unappealing promotion content, unmatched between service provided and customer needs, lack of awareness of new brand proposition.

The impact of aggregate demand shocks on Germany’s trade balance and industry

ABSTRACT We examine the impact of aggregate demand shocks on Germany’s trade balance and industry after the adoption of the Euro. Using a Structural Vector Autoregression we find that Germany’s trade balance and industry are highly responsive to aggregate demand shocks. As Germany’s income increases, this leads to an increase in imports and a gradual reduction in its trade balance. However, Germany’s export capacity stabilizes its trade balance. This is over a period of rapid globalization, technological progress confronting all economies, several global trade disruptions and with disturbances to crucial energy requirements for Germany’s industry and export sector.

Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth

Literature contends that the manufacturing sector is crucial for economic development, and it is conventional wisdom that exports drive manufacturing growth. However, it has yet to be established empirically whether the market size of export destinations is an essential factor in explaining diverging regional and sectoral manufacturing growth patterns. This article argues that accessing a few large external markets reduces entry costs, increases expectations of economies of scale, and fosters capital formation. To test this hypothesis, we construct a novel Relative Export Market Size (REMS) index that measures whether the share of sectoral exports destined to large economies in one region is higher than in other regions. Using a PVAR model with fixed effects, we verify the impact of the REMS index on value added, employment, and capital accumulation of 129 manufacturing sectors in 23 regions in Colombia from 1992 to 2017. The obtained results show that exporting to larger markets positively impacts employment, capital formation, and value added per capita of manufacturing sectors at a regional level. This finding indicates that exporting to the world’s largest market helps develop competitive manufacturing sectors.

Identifying Obstacles to Omnichannel Implementation in the Export Sector (Case Study: Food Industries)

Objective: The primary aim of this research is to identify the components and obstacles to implementing omnichannel in the export sector. Methodology: The research approach is both qualitative and quantitative, and by nature, it is exploratory and descriptive. The statistical population of this study includes experts in the export sector of the food industry. The snowball sampling method has been used in this research. Ultimately, the sample size was determined to be 12 individuals at the point of theoretical saturation. Interviews were conducted to identify the obstacles in the research. The validity of the codes was evaluated through CVR (Content Validity Ratio). The data analysis method used in this research is thematic analysis. For the prioritization section, the quantitative method of hierarchical analysis was used. In this section, a pairwise comparison questionnaire was utilized to examine the ranking of the studied indicators. Findings: The results of this investigation identified three main obstacles categorized as structural, contextual, and behavioral. Within each of these obstacles, sub-components were identified as obstacles, totaling 46 items. It is ultimately recommended that food industries evaluate and study the identified obstacles of this research for the implementation of omnichannel. Additionally, these obstacles have been prioritized using the hierarchical analysis method. Conclusion: The findings of the research indicated that the implementation of omnichannel in the export of food industries consistently faces obstacles, some of which are related to the organizational structure of exporting companies, some are within the human and behavioral dimensions of the workforce, and some are influenced by environmental factors. From this perspective, it can be stated that this research, with a comprehensive understanding of these obstacles, has paved the way for better implementation of omnichannel in the export sector of the food industries.

Decoupling Economic Growth and Carbon Footprint: An Empirical Analysis of Ghana's Export Sector, Manufacturing, and Renewable Energy Adoption

Decoupling Economic Growth and Carbon Footprint: An Empirical Analysis of Ghana's Export Sector, Manufacturing, and Renewable Energy Adoption

Analysis of the product structure of Ukraines trade with the EU

The article presents a comprehensive study of the characteristics of the commodity structure of Ukraine's trade with the European Union in the conditions of war, as well as the dynamics of export and import of the main commodity groups in the period from 2019 to 2023. Statistical data on Ukraine's foreign trade with the EU obtained from official sources, including the State Statistics Service of Ukraine, the Ministry of Economy of Ukraine and Eurostat, were thoroughly analyzed. This made it possible to create a complete picture of trade relations between Ukraine and the EU during the studied period. In the course of the study, the key factors that significantly influenced the dynamics of trade during the studied period were identified. Among them, the 2020 Covid-19 pandemic, which led to a global economic downturn and disruption of supply chains, is particularly highlighted. The recovery of the world economy in 2021, which was accompanied by an increase in demand for key export products of Ukraine, also had a significant impact. The most dramatic factor was the Russian invasion of Ukraine in 2022, which radically changed the economic situation in the country and significantly affected its foreign trade relations. The influence of each of these factors on the export and import of individual product groups has been studied in detail. In particular, the dynamics of trade in food and agricultural products, metals and metal products, machines and equipment, chemical products, wood and wood products, mineral products, vehicles, textiles and textile products were analyzed. This made it possible to identify key trends and changes in the structure of Ukraine's trade with the EU. The article pays special attention to the analysis of changes in the structure of Ukraine's exports to the EU. In particular, an increase in the share of agricultural products and food products in the total volume of exports was noted, which partially compensated for the drop in exports in other sectors. This trend is related both to global changes in the world markets and to the peculiarities of the economic situation in Ukraine during the war. An important aspect of the study was the determination of the role of labor relations between Ukraine and the EU in the context of foreign trade. The impact of labor migration on economic indicators, in particular on the volume of remittances and their role in maintaining Ukraine's balance of payments, is analyzed. This made it possible to expand the understanding of the economic relations between Ukraine and the EU, which go beyond purely trade relations. The presented study provides a comprehensive analysis of the state and dynamics of trade relations between Ukraine and the EU in the face of significant global and regional challenges. It can serve as a basis for further research and development of strategies for the development of Ukraine's foreign economic relations in the context of European integration and post-war economic recovery.

Impact of digital transformation on global services trade flows

Abstract Globalization paired with rapid technological advancements has transformed the landscape of the services trade, positioning digital transformation as a critical determinant of trade flows. This analysis delves into how digital transformation influences global services trade flows, establishing a model to examine the dynamics between exports and imports. Through empirical analysis using cross-country panel data, the study reveals a positive correlation between digitalization and the activities of exporting and importing services. Notably, the escalation in digitalization level markedly boosts exports in telecommunication, information technology, and other business sectors. Factoring in controls such as exchange rates and trade efficiency, the findings highlight digital transformation’s role in elevating the growth rate of global services trade exports by 5.82%, especially pronounced in telecommunication and information services sectors. The study advocates for enhanced investment in digital infrastructure and policy innovation to minimize trade barriers and optimize global services trade flows.

Investigates the Effect of Foreign Direct Investment on Economic Growth in Cameroon

Every nation requires a certain amount of investment to reach a particular degree of growth. Investment and economic growth are topics of intense debate in developing countries today. This study investigates the effect of foreign direct investment on economic growth in Cameroon. Using the ordinary least squares (OLS) estimation technique, the data covered a period from 1985 to 2022 collected from the world development indicators (WDI). The finding reveals that there is a positive and significant effect between foreign direct investment (FDI) and Cameroonian GDP; this implies that a unit increase in FDI leads to increased economic growth. A negative correlation has been observed between economic growth and inflation, suggesting that a rise in inflation generally leads to a decline in economic growth. Furthermore, trade openness (TOP) and economic growth have a statistically significant positive association, suggesting that Cameroon's economic growth may rise due to greater global trade involvement. These findings have important policy implications. The Cameroonian government should improve infrastructure, guarantee political stability, and strengthen regulatory frameworks in order to attract foreign direct investment (FDI) and capitalize on its benefits. Since boosting international trade further spur economic growth, initiatives to encourage trade openness should also be given top priority. Trade agreements, tariff reductions, and the encouragement of export-oriented sectors.

Fluctuations of the Real Exchange Rate and the Structure of the Iraqi Economy

This paper analyzes how a boom in the oil sector affects the relative prices of non-tradable goods compared to tradable goods, the real exchange rate, and the competitiveness of Iraq’s broader economy. As the oil sector booms, Iraq’s currency appreciates, which reduces the competitiveness of the country’s traditional export sectors. This thesis investigates the presence of Dutch Disease in Iraq, an area previously unexplored. It evaluates the impact of growing oil revenues on the non-oil sectors of the economy and provides empirical evidence showing a contraction in the tradable goods sector and an appreciation of the real exchange rate. The findings suggest that Iraq experienced symptoms of Dutch Disease, including real exchange rate appreciation, a shrinking tradable goods sector, and an expanding non-tradable goods sector. Ultimately, the appreciation of the real exchange rate is responsible for shifting Iraq‘s economy from manufacturing and agriculture (tradable sectors) to construction and services (non-tradable sectors).

INVESTMENT STRATEGIES FOR ECONOMIC GROWTH OF UKRAINE IN GLOBAL CONTEXT

It’s evident that Ukraine’s integration into the global economy not only opens numerous opportunities but also presents the country with a set of challenges that can only be overcome through the attraction of foreign investments. In fact, within such aspirations, businesses that are residents of Ukraine compete for capital, trade partnerships, and their place in the global market, hence the development of effective investment strategies is key to ensuring both their overall competitiveness and the competitiveness of the main products and services they produce. Therefore, the aim of the article is to examine the characteristics of forming an investment strategy for the economic growth of Ukraine in the global context. The research results have identified key elements of investment strategies for the development of Ukraine’s economy in the global context, reflecting important directions that can contribute to enhancing competitiveness and the development of the export sector.

The Influence of Inflation Levels, Exchange Rates and Exports on Gross Regional Domestic Product of North Sumatra for the 2001-2021 Period

This research aims to analyze the influence of the inflation rate, exchange rate and exports on the Gross Regional Domestic Product (GRDP) of North Sumatra for the 2001-2021 period. The data used in this research is secondary data obtained from the North Sumatra Central Statistics Agency and Bank Indonesia. The analytical method used is panel data regression analysis using Eviews 10 software. The results of the research show that the inflation rate has a significant negative effect on the GRDP of North Sumatra, meaning that the higher the inflation rate, the lower the GRDP of North Sumatra. Meanwhile, the exchange rate and exports have a significant positive effect on North Sumatra's GRDP, meaning that the higher the exchange rate and exports, the higher the North Sumatra GRDP will be. From the results of this research it can be concluded that price and exchange rate stability are very important in increasing economic growth in North Sumatra. Apart from that, the government also needs to strengthen the export sector as one of the main sources of income in increasing North Sumatra's GRDP. It is hoped that this research can contribute to economic development in North Sumatra