Foreign Trade Policy Research Articles

Türkiye’nin İmzaladığı Serbest Ticaret Anlaşmaları: İki YanlıSektörel Bir Analiz ve Dış Ticaret Politikası Açısından Bir Değerlendirme

Özellikle İkinci Dünya Savaşından sonra dış ticaretin serbestleşmesi çabaları artmıştır. Bu çabalar küresel ve bölgesel çabalar olarak ikiye ayrılabilir. Küresel çabalar, Gümrük Tarifeleri ve Ticaret Genel Antlaşması (GATT) ve ardından kurulan Dünya Ticaret Örgütü (WTO) ile verilmektedir. Bölgesel çabaları ise, Tercihli Ticaret Anlaşmaları (TTA), Gümrük Birlikleri (GB) ve özellikle son dönemde yaygın olan Serbest Ticaret Anlaşmaları (STA) temsil etmektedir. Türkiye 1980’li yıllardan itibaren benimsediği “ihracata dayalı büyüme modeli” kapsamında hem küresel hem de bölgesel çabaların içinde yer almıştır. Bölgesel çabalar özelinde bakıldığında Türkiye’nin temelde iki amaçla STA imzaladığı görülmektedir. Birincisi; ürünlerini satacak yeni pazarlar bulmak ve dış ticarette ülke çeşitlendirmesine gitmek; ikincisi ve asıl neden ise, Türkiye’nin Avrupa Birliği (AB)’nin GB’ne dâhil olması nedeniyle, AB’nin dış ticaret politikasını uygulama yükümlülüğüdür. Türkiye 2018 yılına kadar otuz yedi adet STA imzalamıştır. Bu anlaşmalardan yirmi adedi yürürlükte bulunmaktadır. İmzalanan STA’ların on bir tanesi, imzacı ülkelerin AB üyesi olmaları nedeniyle feshedilmiştir. Müzakereleri tamamlanmış ancak ülkelerin iç onay süreçlerinde bulunan beş adet STA bulunmaktadır. Bu çalışmada; Türkiye’nin imzaladığı STA’ların taraf ülkelerle olan ticareti üzerine etkileri, 1980-2017 dönemi için iki yanlı dış ticaret verileri, ihracat ve ithalat büyüme hızları, bilateral yoğunlaşma endeksi, sektörel-bilatarel ticaret yoğunlaşma endeksi (SBT) ve açıklanmış karşılaştırmalı üstünlük endeksi (RCA) kullanılarak analiz edilmiş ve bulgular dış ticaret politikası açısından değerlendirilmiştir.

Foreign Trade of the European Union : Dominant Fluctuations

The article analyzes the most important changes that have taken place over the past five years in the dynamics and geographical structure of foreign trade relations of the European Union (EU) as the largest entity in the system of modern international commodity trade. It is shown that, despite such rather unfavorable external factors as the increase in general turbulence in world commodity trade, the expansion of the zone of protectionist and sanctions measures, trade conflicts, the EU was able to maintain its dominant position in international commodity exchange. At the same time, the European Union has pushed the main competitors, as the latest statistics show a significant decrease in the share of the North American free trade Association (NAFTA, consisting of the United States, Canada, Mexico) and Japan in international exports. Continuing to pursue a balanced foreign trade policy, the EU used its traditional instruments not only to increase its activity in general and outside the European region, but also to maintain a positive balance of foreign trade. In addition, there are hopes for the resumption of goodneighbourly trade relations between the European Union and the Russian Federation, which have been complicated in recent years by the introduction and extension of sanctions measures by the EU and Russia's response. The author presents new statistical materials, numerous calculated data, for the first time introduced into the domestic scientific circulation.

Brexit and the External Trade Policy of the EU

Brexit is a huge challenge with enormous consequences for future UK trade policy. But it will also have an impact on the common external trade policy of the EU, and, thus, on one of the core components of EU foreign policy. This contribution analyses Britain’s role in the formulation of EU trade policy and the likely repercussions of its departure, particularly regarding the effectiveness of the EU as trade negotiator and the preferences it represents internationally. I use three theoretical lenses to address these questions: the first lens focuses on likely changes in the material power and interests of the EU; the second looks at the institutional consequences of Brexit for the formulation of EU foreign trade policy, and the third addresses potential changes in external perceptions of the EU as a trade power. It will be argued that neither the effectiveness of the EU as global trade power, nor the substance of its interests, will change substantially.

Mentalidad localista y hechura de políticas de comercio exterior: lecciones del México subnacional

The purpose of this article is to reflect on the paro-chial mentality as an issue to consider in the policy-making of subnational foreign trade policies, for the specific case of Sonora, Mexico. The methodological strategy was based on semi-structured interviews with experts, where nine actors were interviewed, those directly linked to the foreign trade policy, three from the public sector, three from the private sector, and three from the university sector. The main finding indicates that the parochial mentality is an obstacle to the effective policy-making on the subnational foreign trade arena since the lack of mental and commercial openness negatively affects the exploit of international opportunities. This parochial mentality is maintained and reinforced by the intense imbrications of business groups with political groups, where there are not the necessary check and balances to make competing decisions. Thus, the predominant policy-making pattern res-ponds more to maintain the local status quo, than to compete in the international market.

Перспективы управления внешнеторговой деятельностью России на фоне сдвигов в развитии ЕС

This article discusses the most pressing problems faced by the Russian Federation in the implementation of its foreign trade policy in the framework of commodity exchange with the European Union (EU) from the standpoint of improving the management of these processes. The modern characteristics of mutually beneficial trade of the EU member States and the Russian Federation are analyzed. The most significant changes in the EU foreign trade practice are revealed.

Администрирование внешнеторговых преимуществ и ограничений как основа стратегии новых стран – членов ЕС

This article analyzes the current aspects of the management of regional economic integration processes in the context of the entry of new member States into the largest integration grouping in the modern world economy – the European Union (EU). Some components of these processes are considered on the example of a number of European countries that joined the bloc at the stage of 2004-2013. The significant trends in the foreign trade policy of the European Union are identified.

The nanoeconomics of firm‐level decision‐making and industry evolution: Evidence from 200 years of paper and pulp making

AbstractResearch SummaryWe explore the qualitative differences in entries and exits over time. Using qualitative and quantitative data on 96 firms over 200 years, we study industry evolution from the perspective of individual decision‐making situations. Our historical and statistical analyses reveal the vital role of technology investments in determining firm outcomes, and the technological, institutional and governance dynamics that lead firms to invest or to abstain. Our main theoretical and methodological contribution concerns the importance of the multiplicity of firm‐level rationalities and decisions as fundamentals in theorizing on industry evolution.Managerial SummaryWhat determines firm outcomes in terms of acquisition, dissolution, and survival? This article answers this crucial question of strategy and elaborates on the extent to which the outcome is under top management control. Our findings highlight the importance of technology investments and we identify factors that make such investments possible and profitable. Our results emphasize that firms weighing options must assess the economic meaningfulness of generational technology investments which result in narrowing profit margins and intensifying competition. Another insight concerns the management of political risks. Long‐term fluctuations in regulation and foreign trade policy make it hazardous to optimize to the contemporary political regime. Skillful strategists invest in geographical and technological complexity, which in combination increase the chances of survival in rapidly changing political regimes.

Coffee elite in Colombia and its participation in the Foreign Policy during the first half of the 20th century

This paper aims to bring some reflections of political-sociological contents of Colombian foreign policy by analyzing the participation of the coffee elite in the foreign trade policy during the first half of the 20th century, making evident the transcendence of the of National Federation of Coffee Growers (NFCG) and its leaders in the orientation of Colombia's foreign trade policy. 

О новой энергетической идеологии в пространственном развитии территорий: инновационное совершенствование отраслей ТЭК в урбоэкологическом территориальном развитии

Инновационное совершенствование отраслей ТЭК в урбо- экологическом территориальном развитии рассматривается специалистами в области энергетики как новая энергетиче­ская идеология. Основами развития принимается синтез трёх «Э»: экономика, экология, энергетика как факторов здоровья планеты Земля.
 Энергетика - мотор экономики, развития и безопасности общества и государства: состояние и развитие промышлен­ности, АПК, внешнеторговой политики, защиты природы (здесь некая амбивалентность). Эпоха углеводородов предоставляет открытые возможности для развития новых технологий. Как бы не менялись или не трансформировались взгляды и суждения о дальнем и недальнем нашем «завтра», максима «мир будет электрическим, экологическим и цифровым» уже наступает.
 При этом постулат «Энергетика = физика + экономика» опре­деляет направленность и сущность энергетической политики в территориальном планировании.
 В материале статьи проводится сквозной анализ: от первичных энергоресурсов (их наличия и конечности потребления) до увяз­ки схем тепло- и электроснабжения (нужно исходить из нашей российской климатической особенности - нам нужно две-три единицы тепла на единицу электроэнергии) и газо- и водоснаб­жения плюс энергосбережение - всё это вместе даёт колоссаль­ные эффекты развития - от избавления от излишней мощности стареющих источников до создания новых и реконструкции целесообразных (стоимостные преимущества), до использова­ния в ряде случаев вторичных, возобновляемых энергоресурсов и распределённых источников. Рассмотрен вариант создания Глобального энергетического объединения (ГЭО).
 Совершенно необходимо возрождение отраслевой науки и энергомашиностроения; цифровизация, «смарт грид», энергосбережение.

The Need to Establish a New Format for Trade Political Relations between European Union and China

In this research work, Author focus on the analysis the need to establish a new format for trade-political relations between European Union and People Republic of China. What indicates the importance and innovativeness of the research is the presentation of the technical progress especially in China, the growth of economic ties with the European Union and the benefits resulting from liberalised of the China foreign trade policy under WTO. Realistic point is important trends in the trade regime between EU and China. Their commercial relations are too important to become hostage to political grandstanding or airy rhetoric by politicians performing for domestic galleries. Europe is China’s largest export market, and China now ranks second on Europe’s list of key trading partners. Trade with China dwarfs any other trade relation Europe has with emerging Asia. Disturbing this relationship would have ramifications for sales, growth and employment. The Chinese government is less concerned today about Western criticisms of China’s autocratic system, but the Chinese people have grown more nationalistic and represent a potentially greater threat to commercial relations. Commercial interests in autocratic regimes cause political dilemmas. The main aim of the paper is the presentation the need to establish a new format for trade political relations between European Union and China.

FOREIGN TRADE POLICY FOR INTEGRATION INTO GLOBAL VALUE CHAINS

The purpose of the article is to define and argue the key criteria and directions of foreign trade policy, which become crucial in conditions of country’s integration into global value chains, as well as to reveal the impact of major regulatory barriers to trade that prevent Ukraine’s integration into global value chains. The subject-matter of the study is the peculiarities of foreign trade regulation under global value chains expansion. Methodology. The methodological principles of research involve the joint application of a set of well-known common scientific methods, as well as special research methods in economics, such as the method of system and structural analysis to generalize spheres, directions, and tools of GVC-friendly trade regulation. Results. The essence of global value chains as a modern concept for international trade analysis is revealed. New approaches to trade and economic policy aimed at improving the country’s participation in global value chains are analysed. Key spheres, in which bottlenecks for global value chains usually occur, are investigated. The growing importance of liberalization of trade in services in order to integrate into GVC successfully is stressed. Main barriers that prevent the Ukrainian economy from effective integration into GVC are outlined. Basic shortcomings in Ukraine’s export control system that constrain the expansion of the country’s exports of dual-use goods and technologies are outlined. Practical implications. The article contains a comprehensive set of tools and regulations to revise approaches, directions, and efficiency criteria of governmental foreign trade policy according to global value chains concept. Value/originality. Identified requirements for foreign trade policy allowed investigating the effectiveness and perspectives of Ukraine’s trade and investment regime from a GVC point of view.

Critical analysis of enablers and barriers in extension of useful life of automotive products through remanufacturing

Increasing demand of automotive products and over-consumption of natural resources compel the manufacturers to implement the Extension of Useful Life (EUL) methodology of automotive products through remanufacturing. Remanufacturing is a process in which the original functionality of End-of-Use (EoU) or End-of-Life (EoL) product is restored and the remanufactured product is treated as good as a new product. In spite of these advantages, remanufacturing is still not so popular and organized in developing countries like India. The developing countries encounter several problems in strategic, tactical and operational level of management while implementing the remanufacturing business option. In this paper attempts have been made to identify both the enablers and the barriers in managing business of EUL products through remanufacturing in India. Subsequently the structural relationships among the enablers and barriers have been modelled in this paper. Initially an extensive literature review is carried out to identify the factors depicting the enablers and barriers. Then, Fuzzy Interpretive Structural Modeling (FISM) is applied to develop and evaluate the structural relationships among the identified factors. The application of FISM helps in understanding the effect of major enablers and barriers in extending useful life of automotive products through remanufacturing. The outcome of FISM based analysis shows that low cost, price sensitive market, cheap labour cost, and fast turnaround are the major enablers for OEM in initiating EUL business practice through remanufacturing, whereas the major barriers are lack of proper design of product, stringent foreign trade policy, cannibalization of new product, lack of proper remarketing strategies, lack of reverse network design, lack of proper maintaining the database of the customers, seller reputation and identity. The analysis is further enriched by MICMAC technique, which leads to getting an insight on the significance of the dependence and driving power of both the enablers and barriers.

“ИНТЕГРАЦИЯ ИНТЕГРАЦИЙ” И ПЕРСПЕКТИВЫ БРИКС+

During 2017 BRICS Summit the Chinese government announced the idea to promote the “BRICS Plus” cooperation approach, encouraging closer partnership among the group of emerging markets and developing countries. The idea was fixed in the final declaration, but the mechanism of its implementation remains uncertain, as well as the list of participants. The paper aims at reflecting Russian approach to the implementation of the “BRICS Plus” concept and exploring direction of potential cooperation among the countries of the expanded format. The key idea underlying our projections is that all the BRICS countries are leading economies within one of the regional integration arrangements on their continents, so the member countries of these five integration blocks may form the ‘BRICS Plus circle’ for flexible and multi-dimensional cooperation. The implementation of the “BRICS+” idea may push interaction within a group of developing countries for strengthening stability and enhancing their role in the world economy. The new expanded format of “BRICS Plus” can serve as a platform for linking regional integration associations in two ways: (1) expansion of trade cooperation at the trans-regional level, gradual harmonization of foreign trade policies within five integration associations and (2) gradual shift of trans-regional agenda from trade cooperation to a wider range of areas. The author stresses, that in trade cooperation particular attention must be paid to the harmonization of technical regulations, as well as sanitary and phyto-sanitary standards. Besides, the expanded format of “BRICS Plus” may provide a network of bilateral currency swap agreements aimed at reducing dollar payments and stimulating settlements in national currencies. The system of currency swap agreements can be supplemented by the networks of interbank local currency credit lines agreements and harmonization of banking rules and procedures. The author concludes, that according to contemporary priorities of the developing countries and regional agendas of the five integration blocks the new directions of trans-regional cooperation may include (1) harmonization of e-commerce policies and creation of a common e-commerce information space (trans-regional e-Commerce platform) (2) inter-state cooperation in the interests of small and medium enterprises (3) creation of a consolidated technological platform at “BRICS Plus” level.

Theoretical and applied aspects of restructuring the national economy of Ukraine

Introduction. The article deals with problems and consequences of the Ukrainian economy deindustrialization under the neoliberal paradigm dominance in government's economic policy. The problems of deindustrialization in transition economies during the period of postindustrial transformation in developed countries and the neoliberal economic thought dominance has so far been overlooked. The subject-matter of the study is structural shifts caused by deindustrialization and diversification of the economy. The methodological principles of research involve joint application of a set of well-known common scientific methods as well as special research methods in economics, such as retrospective analysis method to investigate the origin of modern neoliberal economic doctrines.
 Aim and tasks. The purpose of the article is to distinguish the fundamental differences in structural changes in the economy of Ukraine and developed countries and to identify key areas for restructuring the domestic economy on the basis of modernization and reindustrialization policy.
 Results. The fundamental differences between dramatic reduction of the industrial sector share in the Ukrainian economy and economy diversification with a relative decrease in the share of industry that occurs in mature economic systems under transition to the postindustrial stage of development are revealed. It’s proved that formal signs of a transition to a postindustrial society may reflect diametrically opposed trends of economic development. A critical analysis of the theoretical postulates of economic thought that underlies leading international organizations’ cooperation with individual countries is conducted. It’s argued that neoliberal economic paradigm relies on abstract, sterile, and unfeasible hypotheses based on ideology, not the experience of successful structural transformations. Key areas of Ukraine's economic policy transformation include a set of tools of budget, infrastructure, tax, customs and foreign trade policies to ensure structural changes in output and export. It’s argued that such measures, as introducing a local component criterion in public procurements, free connection of industrial objects to engineering networks, tax incentives for industrial park residents, barriers to raw materials exports, revision of Ukraine’s obligations under WTO, launching of an export-credit agency, deploying a network of official trade missions in key partner countries, etc., will trigger reindustrialization of Ukrainian economy.
 Conclusions. Implementation of a full-fledged industrial policy in developing countries is hampered by the rule of neo-liberal economic ideology, which denies the possibility of effective state governance of structural changes in the national economy. The article puts forward a critical view on the mainstream economic ideology and discusses its destructive impact on the Ukrainian economy that is worth to be introduced in masters’ graduation programs in economics. Implementation of author’s recommendations on reforming governmental economic and industrial policy is a basis for launching reindustrialization processes in the Ukrainian economy.

The effect trade and exchange rate policies on the export of stone fruit in Iran

This study aims to investigate the effect of foreign exchange rate and trade policies on crop exports in Iran. Regarding foreign exchange policies, the exchange rate volatility index and the dummy variable of currency uniformity policy were considered, while economic openness index as well as the trade bias coefficient index was studied for business policies. Logarithmic model of export supply function based on the ARDL and error correction model were used to estimate long- and short-term relations between variables. The research data were collected from the websites of the International Trade Statistics Database and the Central Bank of Iran from 1997 to 2014. The results showed that variables of commercial deviation coefficient, real exchange rate, economic openness, domestic product price, stone fruits export value in previous years and the dummy variable of currency uniformity policy all had a positive effect, in the long term, on Iranian stone fruits export. The coefficient for error correction model equals -0.42, which is quite significant indicating a very high modulation pace to a long-term equilibrium. In addition, the results revealed that, in the event of shock and distortion in balance in each period, 0.58% of the short-term imbalance has been adjusted to achieve long-term equilibrium.JEL Classification: Q17, Q18, F13, F17, F39

ASSESSMENT OF INTERNATIONAL TRAD EFACILITATION MEASURES

The article discusses some approaches to evaluation of trade facilitation measures developed by international economic organizations. The main benchmarks showing the effect of foreign trade policy conducted by public authorities have been identified. The author named the main evaluation criteria applied to the analysis of measures implemented in order to simplify trade procedures, and also considered the approaches (general, special) to the analysis of the effectiveness of public policy in this area. Using the results of the ranking of the EAEU member states as an example, a comparative analysis was made of various ratings used in evaluating the implementation of trade facilitation initiatives, which are compiled according to different approaches to the analysis of the effectiveness of trade facilitation measures. The research shows that the use of the approaches described in the article has certain limitations, and to obtain a reliable evaluation, it is necessary to betake a comprehensive analysis. Also, these limitations should be taken into account when using statistical information from the sources considered when building economic models.

Specific Features of Global Finance Strategies of Multinational Corporations in World Chemical Industry

Today’s situation in foreign economic relations can be characterized as unstable, which becomes evident through trade wars, numerous sanctions and other attempts to impact the real sector of economy on the political level. Changes in foreign trade policy of many countries and slump in globalization make multinational corporations of chemical industry adapt quickly to the changing conditions. Sectoral specificity is an acute necessity to introduce advanced digital technologies, though many multinationals are still on the stage of technological innovation. The article estimates the effect of transformation taking place in the industry in global and regional scale, which can be used to correct state influence and implement forecasts of the global chemical industry development. The author came to the conclusion about the drop in investment activity, its concentration in the country of location and liability to demands of local strategy of chemical industry development. The author puts forward an approach to the appraisal of global finance strategies of multinationals through concrete identification of the research subject and choice of three most important vectors: investment strategy, strategy of shaping finance resources and taxation strategy.

Зерновой экспорт как фактор устойчивого развития сельских территорий Омской области

In response to the current devaluation of the ruble, the Russian Government takes measures to support exporters. Thus, the most important factor of sustainable development of rural territories is their commitment to export, which explains the relevance of the present research that features the problems and top trends of grain export in the Omsk region. The theoretical part of the study develops the concept and properties of sustainable development of rural territories, its dependence on the efficiency of agricultural producers, and the situation in the Omsk region. The survey part of the paper investigates the grain export in 2015–2017: the share of the Omsk region in Russian grain export; the share of grain export in the total volume of export sales the dynamics of grain export and a review of factors of influence; a structural and dynamic analysis of various exports; assessment of wheat export structure by types and categories; a survey of channels of distribution of export grain (geography); an analysis of the logistic factors that limit export operations. The authors stress the positive influence of grain export on the uniform distribution of annual cash flows among the producers, which reduces the seasonal character of grain production. The trends can be explained by the specifics of grain crops, Russia’s foreign trade policy, and the logistic opportunities of the Omsk region. Sustainable development of the region requires a higher volume of grain export, which directly depends on the wellbeing of agricultural enterprises and farms. In general, the export potential of the Omsk region will contribute to the sustainable development of its rural territories. The research results can be used in various studies connected with grain export planning and sustainable development of rural territories.

Balancing between the COMECON and the EEC: Hungarian elite debates on European integration during the long 1970s

ABSTRACTThis article intends to uncover the internal disputes about foreign and trade policy between the late 1960s and the mid-1980s, and to highlight the Hungarian motives in both Council for Mutual Economic Assistance (COMECON) internal discussions and Hungary’s talks with the European Economic Community (EEC). The issue of concluding an agreement with the EEC became a home-front battlefield between the ‘hawks’ and ‘doves’ of the political leadership at the turn of the 1970s. The article argues that from the early 1980s, the genuine initiator of a foreign trade policy shift was the reform wing of the party, while the foreign trade apparatus remained firm on its standpoint of non-recognition.

Keys and Tensions in Argentina's Foreign Trade Policy Strategy in the Search for an "Smart Insertion into the World" (2015-2018)

After 12 years of Kirchnerist administrations, the government of Mauricio Macri have imparted substantial changes in the Argentinean foreign and economic policy. These changes have been reflected in a redesign of the foreign trade policy. We wonder what have been the characteristics of this policy during “Cambiemos” administration. In light balance of payments data, why have the results regarding the country's external trade insertion been limited? For this purpose, the paper analyzes the principles, objectives and actions implemented, as well as the articulation of internal and external constraints (or variables) in this government, between December 2015 and October 2018. It is argued that the foreign trade policy has faced a context that was not very permissive, and fell prey to foreign policy’s "bad diagnosis" of the international context; and that this, articulated with the political and economic contradictions that occurred at the domestic level, acted to the detriment of the objectives set for a “smart international insertion”.