Foreign Export Research Articles

Foreign Direct Investment, Export and Economic Growth: An Evidence from Nepal

The aim of this paper is to analyze and evaluate the present status of foreign direct investment (FDI) in Nepal concentrating economic growth and export boost. Developing nations like Nepal derive significant advantages from foreign investment, fostering economic advancement through the attraction of external capital, entrepreneurial skills, expanding market spaces, and technology transfer. Nepal has witnessed an upsurge in FDI since the 1990s, primarily attributable to the implementation of liberal economic policies by the government. The enactment of the Foreign Investment Technology Transfer Act (FITTA) has further sustained the investment environment in Nepal. This paper analyzes and evaluates the role of FDI in driving Nepal's economic growth and export activities. Employing correlation analysis and an ordinary linear regression model, the impact of FDI on Gross Domestic Product (GDP) and exports is measured. Given the documented FDI inflows since the 1990s, this research concentrates on the period from 2010/11 to 2022/23 to measure FDI's impact. The findings of this investigation reveal a positive correlation between FDI, GDP and the country's export growth.

U.S. Market Concentration and Import Competition

Abstract Many studies have documented that the sales concentration of U.S. producers has risen in recent decades. In this article, we show that this increase was accompanied by more entry and growth of foreign competitors. Using confidential census data covering the universe of all firm sales in the U.S. manufacturing sector, we find that rising import competition increased concentration among U.S. firms by reallocating sales from smaller to larger U.S. firms and by causing firm exit. However, this increase in production concentration was counteracted by the expansion of foreign firms, which reduced domestic firms’ share of the U.S. market inclusive of foreign firms’ sales. We find that once the sales of foreign exporters are taken into account, U.S. market concentration in manufacturing was stable between 1992 and 2012.

Analysis of Determinants of Foreign Exchange Reserves in ASEAN-5 Countries

Foreign exchange reserves represent a nation's holdings of foreign currencies or currency equivalents, managed by its central monetary authority, and utilized in global transactions and engagements. This research aims to analyze the influence of inflation, Foreign direct investment, Exchange rate, economic growth and exports to the level of foreign exchange reserves in ASEAN-5 countries 2000-2022. This study relies on secondary data sourced from the World Bank's official website. The analytical methodology involves employing a panel data regression technique known as the Fixed Effect Model (FEM) alongside the analysis tools provided by StataMP17. The results of data processing show that partially each independent variable is inflation, Foreign direct investment, Exchange rate, Economic growth demonstrates a notable negative impact on Foreign Exchange Reserves within ASEAN-5 nations, with statistical significance. Conversely, the independent variable Exports exhibits a positive and significant correlation with Foreign Exchange Reserves across ASEAN-5 countries

The Impact of Mergers and Acquisitions on the Internationalisation Level of Enterprises--The Case of Sany Group

As the cornerstone of China's engineering construction, the construction machinery industry plays an important role in the process of foreign trade and export. This fully reflects the important demand for China's construction machinery industry, but also shows the important position of the industry in the international market. At present, China's construction machinery market is open to the outside world, the domestic and foreign construction machinery market competition is fierce, many scholars on China's construction machinery export trade situation and ways to improve the enterprise's global market share to do in-depth research. In this paper, we find that Sany Heavy Industry is ranked in the top of the global construction machinery manufacturers, brand, scale, technology than other domestic construction machinery enterprises have advantages, from the perspective of Sany Heavy Industry through cross-border mergers and acquisitions to improve the level of internationalisation, through a combination of quantitative and qualitative methods, to provide assistance to the international development of China's small and medium-sized construction machinery enterprises.

Empirical Analysis of Foreign Direct Investment and Export Performance in South Africa

Empirical Analysis of Foreign Direct Investment and Export Performance in South Africa

Trade Openness and Economic Growth: Evidence from Countries in Asia and the South Pacific

Abstract This study examines the relationship between trade openness and economic growth across selected Asian and South Pacific countries from 2000 to 2021. Key indicators on Gross Domestic Product (GDP) growth rate, foreign debt, export values, and inflation are analyzed for insights into economic dynamics. Positive correlations between foreign debt and export values suggest export utilization to alleviate debt. Conversely, negative correlations between inflation and export values underscore challenges during inflationary periods, emphasizing need for effective inflation management. Fixed Effects Model analysis unveils coefficients for independent variables, highlighting their impact on GDP. The study's explanatory power, measured by the R-squared value, underscores the collective influence of these variables on GDP variation. Policy implications stress the importance of export promotion strategies to bolster revenue amidst high foreign debt levels. Effective inflation management is vital to maintain export competitiveness. Prudent debt management emerges as crucial for economic stability. Future research should explore nuanced mechanisms linking trade openness and economic growth, tailored to each country's economic context. This approach can inform targeted policy recommendations, acknowledging diversity among nations. Globally, the study emphasizes interconnectedness among countries and the significance of collaborative efforts to navigate shared challenges and capitalize on mutual opportunities in the global economy. Keywords: Trade openness, Economic growth, Gross domestic product, Foreign debt, Fixed effects model.

Study on the Impact of the Development of Digital Economy in RCEP Member Countries on China's Export Trade

With the rise of the global wave of digitisation, the digital economy has become an important driver of international trade. This study aims to deeply explore the impact of the development of digital economy in RCEP member countries on China's trade. On the basis of the panel model which comprehensively analyses three kinds of digital economy development status measurement indicators such as digital economy development status, digital information industry and digital cultural resources input of RCEP countries, it assigns values to the digital economy development status of each country by means of the fixed effect model and empirically proves the relationship between the digital economy development level of member countries and the development of China's export trade. The results show that the digital economy development capacity of RCEP member countries will have a positive promotion effect on the overall improvement of China's foreign trade and export volume, and the conclusions drawn from the empirical results provide suggestions and countermeasures for the high-quality development of China's digital economy to promote foreign trade and export.

The impact of female chief executive officers, ownership, and globalization on ASEAN manufacturers' technical efficiency performance

The premature deindustrialization of Association of Southeast Asian Nations(ASEAN) economies has impeded their development by restricting all prospects for growth, including economies of scale, human capital development, and worker productivity. In male-dominated industries, sexism and discrimination may prevent women from attaining leadership positions, especially in manufacturing. This is especially apparent where women are viewed as less technical in ASEAN manufacturing. Therefore, this study employs the beta regression model to examine the impact of female CEOs and those with ownership on the technical efficiency and performance of ASEAN manufacturers. The impact of economic globalization via foreign direct investment (FDI) and exports on technical efficiency is also examined in this study. FDIs are found to enhance ASEAN manufacturers’ technical efficiency. This study also found that firms operated by female CEOs are more technically efficient, implying that they prefer stewardship-driven management strategies over agency-driven approaches. Female CEOs with ownership are likely to decrease technical efficiency, confirming the entrenchment hypothesis that their interests are not aligned with shareholders’ interests. In addition, skilled labor, ISO certification, IT use, and firm size boost their technical efficiency.

The Economic Model of the Fixed Exchange Rate in Bolivia: Towards Price Stability and Economic Instability

The objective of this article is to demonstrate and analyze whether the fixed exchange rate is a variable that benefits or harms the Bolivian economy in the short term, medium term and long term. Because it is a fundamental economic variable, mainly to keep prices stable, that is, low and controlled inflation in national prices, this fixed exchange rate has been frozen since 2011. In addition, it regulates or affects foreign trade, i.e., imports and exports, which have been dragging a deficit in the trade balance, which favors imports and smuggling to the detriment of national production and a growing informal labor market. The Bolivian economy is especially dependent on exports without specialization and added value, such as natural gas, minerals, mainly gold, legally and illegally, among others. In addition, the significant deterioration of macroeconomic variables, as reflected in historical data, such as the collapse of savings due to the gradual fall in net international reserves since 2014, leaving the vaults of the Central Bank of Bolivia with scarce reserves in gold and foreign currency, as well as the significant increase in internal and external public debt, Both of them have reached the Gross Domestic Product, at the same time, the increase in public spending in the public sector and public administration in general and the addition of public strategic companies, the latter seeking to replace imports of the productive apparatus, generating a more robust state apparatus and with levels of fiscal deficit recorded in the last ten years and taking into account the progressive subsidies for imports of fuels such as gasoline and diesel in the face of the growing demand for these fuels legally due to the growing vehicle fleet and illegally due to drug trafficking, generating a deficit in the balance of trade. Finally, the levels of corruption and country risk reflected in recent months by specialized institutions in 2023 show a deterioration of the Bolivian economy. Thus, this research will demonstrate the effects of the economic, social, community and productive model with a fixed exchange rate on the Bolivian economy and the effects on macroeconomic variables.

THE NEXUS BETWEEN TRADE INFRASTRUCTURE DEVELOPMENT AND EXPORT: THE CASE OF CENTRAL AND EASTERN EUROPEAN COUNTRIES

The focus of economic policymakers in Central and Eastern European countries (CEEC) is on developing and improving national infrastructure, including roads, railways and other forms of physical infrastructure needed for the realisation of economic activities, with the primary goal being to create a favourable business environment for foreign investments and export intensification. The article aims to examine whether the development of infrastructure in these countries has contributed to the increase in exports and to what extent, which would likewise examine the justification of infrastructure investments as a part of the economic strategy and foreign trade policy. The method of panel regression analysis with fixed effects was applied, which confirms the positive and statistically significant impact of infrastructure on export, justifying the initiative for the development of national infrastructure in the observed countries. Based on the obtained results, valid conclusions have been drawn regarding the theoretical and practical implications of the research, which point to the importance of physical infrastructure development as one of the leading determinants for export incentives.

Impact of foreign trade and foreign direct investment on economic growth: Empirical insights from Nepal

This study aims to examine the impact of foreign trade and foreign direct investment on Nepal’s long-term economic growth. It uses secondary data from 1989/90 to 2021/22 collected from various economic surveys of the Ministry of Finance of Nepal. Descriptive and explanatory research designs are used in this study. The trace, max-eigen tests, and fully modified least square methods search the long-run co-integration and impact between response and predictor variables. Trace and max-eigen tests consistently point toward the long-run co-integration between dependent (gross domestic product) and independent (import, export, total trade, and foreign direct investment) variables. Exports and imports are found to be negative and statistically significant to explain Nepal’s economic growth. One unit increase in exports results in a 0.748 unit decrease in Nepal’s economic growth. Similarly, total trade volume and foreign direct investment positively impact economic growth. Each unit increase in foreign direct investment results in a 0.0036 unit increase in GDP in Nepal. Foreign trade has a multiplier effect on Nepal’s GDP growth. The 76.35 percent variation in economic growth depends upon total foreign trade volume, exports, imports, and foreign direct investment. To promote sustainable economic growth, policymakers should prioritize policies encouraging increased total foreign trade and foreign direct investment while carefully managing the potential negative impact of excessive reliance on import dynamics.

Complementarity Versus Substitution Relationship between Outward FDI and Exports: Evidence from India

The article is concerned with the relationship between foreign direct investment (FDI) flows and exports and asks if these two flows are substitutes or complement each other. Empirical work in this area employing industry- or country-level data has generally found a positive or complementary relationship between exports and FDI. Our empirical strategy is different in that we try to throw some light on the issue of substitution versus complementarity between FDI and exports by carrying out econometric analyses directed at assessing how India’s mass termination of bilateral investment treaties (BITs) in March 2017 and such BIT terminations during September–December 2016 and April 2017 to December 2018 impacted India’s FDI inflows and imports. Our finding of a significant negative effect of BIT termination on FDI inflows, corroborating the findings of two earlier studies and the finding of a significant positive impact of BIT termination of India’s imports is conceivably reconcilable only if there is a substitution relationship between FDI and exports. Hence, we find some empirical evidence of a substitution relationship between FDI and exports—at least, this has been the relationship between India’s inflow of FDI and the inflow of goods as imports, if not valid for other countries. JEL codes: C31, C33, K33, F21

Local firms spillovers from multinationals’ exports in Switzerland

This paper aims to examine how local firms can learn from the export activities of large multinational corporations (MNCs). Arguing that MNCs’ export activities could act as catalysts for local firms, allowing them to start exporting or intensify their export volume, we hypothesize that the size and extent of export spillovers depend on the linkage between local firms and MNCs, the geographical distance between them in the home country, and the foreign export market destination in terms of psychic distance from the home market. Using Swiss manufacturing firm-level data, we found support to this learning by exporting effect through which local firms benefit from the presence of MNCs’ exporter counterparts and the export activities of their upstream MNCs’ suppliers, with particular effects of the nature and the physical location of destinations. From these findings, several important academic and practical implications are exhibited and discussed

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

The Conservation and Display of a Traditional Korean Hwarot Panel with a Discussion of Purple Gromwell Dye

ABSTRACT This paper covers how, as conservation professionals, we promote and contribute to the Victoria and Albert Museum’s collections through the understanding of historic materials and techniques that go into the making of complex objects. The conservation of a Korean embroidery panel originally found on an hwarot or bridal gown demonstrates this approach. The collaboration of both conservation disciplines and Korean practitioners enabled the work to be meaningful and informative. The decision to remount the hwarot panel as a robe structure, as it had been previously disassembled for the foreign export market, was agreed upon, as was the retention of the lilac repairs. The use of natural dyes to create a rainbow of coloured silks found in the embroidery brings its own problems, especially as purple gromwell is a dye less known in Western culture. The replica robe considers the historical context of the panel and can be re-utilized for subsequent mounting.

Factors affecting Chinese consumers' beef purchase frequency

AbstractChina is an emerging beef market and per capita consumption of beef increased by 48% in the past decade. Given the importance of the Chinese beef market to domestic beef producers as well as foreign beef exporters, we evaluated the factors associated with how often Chinese consumers purchase beef. Using a 2021 survey of 560 beef consumers in the cities of Beijing, Shanghai, and Guangzhou, we found that nearly 50% purchased beef at least two to three times a week. Results of an ordered probit regression suggest that respondents who purchase steak, flank, shank, and brisket are more likely to purchase beef more frequently than those who do not purchase those cuts of beef. Similarly, those who purchase beef more from wet markets and supermarkets, younger shoppers, and those with higher incomes were more likely to purchase beef more frequently. Respondents who considered country of origin and hormone‐free production to be important factors purchased beef more frequently. Consumers who thought price and premium quality grades were more important purchased beef less frequently. These findings provide insights for domestic and foreign beef producers regarding the factors associated with consumer preferences and their frequency of beef purchasing in China. [EconLit Citations: EconLit Citation: Q130, Q170].

Export-Led Growth in Bangladesh: A Functional Impact Analysis of Export Performance and its Contribution

Bangladesh has a significant opportunity to boost economic development by increasing its contributions to international trade. Therefore, this study is aimed at presenting the trends of exporting in the early stages of economic development. Bangladesh's foreign trade trends from 2015 to 2019 revealed a positive growth trajectory despite a slight dip in goods imports. The anticipated decline in foreign trade performance in 2020 is reflective of the global challenges faced during the COVID-19 pandemic. Moreover, the rate of receiving foreign exchange from the integrated foreign export of shrimp, leather, shoes, and pharmaceutical products is constantly increasing. The main exports, encompassing products like clothing, raw jute, leather, fish, and frozen seafood, play a vital role in driving the country's export dynamics. The country has achieved remarkable success in export expansion because of the RMG industry. It was found that total exports of goods rose to 37.94 billion U.S. dollars in 2019. However, the subsequent recovery in 2021 is evident, with notable growth in both imports and exports. Despite a persistently negative trade balance, the resilience showcased by Bangladesh in the face of challenges underscores its ability to rebound and adapt to changing circumstances.

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.

Do intellectual property rights promote foreign direct investment inflows and technological exports in developing and developed countries?

PurposeThis study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for the period of 2006–2020.Design/methodology/approachDiagnostic tests were used to confirm the panel least squares, fixed effect, random effect, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares estimator results as well as to increase the robustness.FindingsAccording to the findings for the developing countries, trademark, patent and industrial design applications, each had a significant positive long-run effect on FDI inflows. In addition, there was a significant positive long-run relationship between patent applications and medium- and high-technology exports. Meanwhile, trademark and industrial design applications had a significant negative long-term effect on medium- and high-technology exports. In developed countries, patent and industrial design applications each have a significant negative long-term on medium- and high-technology exports. Furthermore, patent and trademark applications each had a significant negative long-run effect on FDI inflows.Originality/valueThis study contributes significantly to the focus that host countries evaluate the technology gaps between domestic and foreign investors at different industry levels to select the best INPR rules and innovation process by increasing international cooperation. Furthermore, the host countries should follow the structure–conduct–performance paradigm based on analysis of the market structure, strategic firms and industrial dynamics systems.

Learning to Use Trade Preferences: A Firm and Transaction Level Analysis of the EU–South Korea FTA

Abstract This article examines imports by Swedish firms and the utilization of the tariff preferences offered by the EU–South Korea Free Trade Agreement. To benefit from tariff preferences, the importer must make a formal request to use the preferences and also document the origin of the imported products (with a certificate of origin provided by the foreign exporter). This may be costly, and some importers choose to pay import tariffs even when tariff preferences are available. Hence, the preferences are not fully utilized. Using a detailed firm–transaction level data set on Swedish imports from South Korea, we analyse the determinants of preference utilization and how firms learn to use preferences. The results show that preference utilization is strongly correlated with potential duty savings, which depend on the preference margin and the size of the import transaction. From a learning perspective, we find that preference utilization is closely related to the number of import transactions undertaken by the firm, suggesting a learning-by-doing mechanism. The length of time the firm has been involved in importing activities plays a smaller role.