Impact Of International Trade Research Articles

The Impact of International Trade in the Context of Local Turmoil in the World

The Impact of International Trade in the Context of Local Turmoil in the World

The Impact of International Trade on Economic Performance of Pakistan

The Impact of International Trade on Economic Performance of Pakistan

The impact of international trade on environmental vulnerability

The impact of international trade on environmental vulnerability

Gender division of household workforce in Vietnam: Role of international trade and fertility

This study compares the effects of international trade and fertility on the gender gap in the household workforce in Vietnam from 2002 to 2016. The results reveal that having children prevents women from entering the labor market, although international trade has opened more job opportunities for them. The ratio of working hours of wives to husbands only increases if their child is aged >6 years. Further, both international trade and fertility reduce the gender gap in working hours. However, regarding the gender pay gap, the impact of international trade is often more statistically significant than that of fertility. In addition, other factors that affect the participation of female workers include their education level, their husbands’ income, and whether they live with someone who can help take care of their children when they are unable to take care of them because of secular work.

Impact of International Trade and Globalization on Financial Markets: A Case of Pakistan

This study investigates the intricate relationship between international trade, globalization, and Pakistan's financial markets through quantitative analysis. Using regression, correlation, time-series, and comparative methodologies, data from 2018 to 2022 was analyzed. Findings indicate a direct correlation between higher trade volumes and improved stock market performance, while a rising globalization index aligns with increased capital inflows. Exchange rate fluctuations reflect the currency's sensitivity to global economic shifts. Comparative analysis with regional counterparts highlights both aligned and divergent financial market trends. Moreover, a sensitivity analysis emphasizes the potential impact of Foreign Direct Investment (FDI) on stock market indices. These insights underscore the importance of trade policies, global integration, and FDI in shaping Pakistan's financial market dynamics within the evolving global economic landscape.

Trade with innovation benefits: A re-appraisal using micro data from China

In recent years, the impact of international trade on firm innovation has received increasing attention. Some scholars argue that knowledge spillovers from trade are beneficial to innovation, while others argue that the intense competition from trade leads to a reduction in innovative activity, based on the Schumpeterian effect. To address this issue, we creatively construct a dataset of Chinese listed firms from 2000 to 2014 and conduct empirical tests using propensity score matching to investigate the impact of firms' intermediate goods import behavior on innovation performance at the micro level. We construct models of firms' decisions under closed market conditions and of the impact of intermediate goods imports on firms' innovation activities under open market conditions. Our study shows that firms that import intermediate goods are more innovative, and we validate the robustness of this result. We further discuss the potential mechanisms of how exposure to international markets affects innovation, and we find that firms' import behavior affects innovation through scale effect, technology effect, and profit effect. In short, importing intermediate goods enhances firm-level innovation in developing countries. Our study provides significant evidence on the impact of imports on firm-level innovation performance, and our findings provide a rationale for promoting the co-development of trade and firm innovation. This paper also has important policy implications that governments should continue to reduce trade barriers, promote trade openness, and enhance technology transfer and cooperation in order to reap more innovation benefits from trade.

Impact of International Trade on the Share Prices of the Industrial Bank of Korea Using Stochastic Prediction Modeling

Purpose – The share price of any financial institution fluctuates due to various hidden and visible factors. Predicting share price behavior in the economy and financial marketing theory is crucial but complex. The Industrial Bank of Korea’s (IBK) share prices are also affected by hidden factors, including Korean international trade flow. The study aims to forecast hidden impacts on IBK share prices resulting from the international trade flow in Korea. Design/Methodology/Approach – Two Hidden Markov Model (HMM) approaches are employed, one based on exports, and the other on imports, to identify trends and fluctuations in the hidden states influencing visible states. Findings – The findings reveal a significant positive correlation between IBK share prices and both exports and imports. Notably, increasing exports indicate a 50% probability of IBK share prices rising, while falling imports indicate a 56% chance of IBK share prices increasing. These results demonstrate how changes in exports and imports impact IBK’s share price in the Korean stock market. Research Implications – The research implications are valuable for short- and long-term investors in IBK shares and the Korean stock exchange. This research can help decision-makers identify the relationships between and within the visible/observed states that influence the stock price of IBK.

International trade in future avoided emissions: The case of battery electric vehicles and the United States

The impact of international trade on greenhouse gas (GHG) emissions has primarily been viewed through the lens of emissions embodied in goods, which flow from lower-income to higher-income countries. This trade has been interpreted as allowing the high-income countries to shirk their responsibilities to address the global climate challenge by offshoring emissions. However, international trade may also have an impact on climate through flows from higher-income to lower-income countries, particularly long-lived capital and durable goods that have the potential to avoid future emissions. Given the innovation resources concentrated in higher-income countries and their historic domination of trade in such long-lived goods, this concept may balance the scales to some degree. This paper briefly develops the concept of future avoided emissions and illustrates it with the empirical case of the United States’ trade in battery electric vehicles (BEVs) from 2017 to 2020.

RETRACTED: Impact of international trade on crude oil in political unstable economies: Evidence from quantile regression

The current study examined the relationship between crude oil and political stability. The study relied on the global crude oil network from 2000 to 2020 for 100 countries. The underlying premise is that oil dependence can lead to political instability. We distinguish between two types of oil dependence: economic dependence, which occurs when crude oil is the primary source of income, and energy dependence, which occurs when oil dominates a country's energy mix. In the second case, countries that rely on oil imports to meet domestic oil demand are much more reliant on energy sources and, as a result, are indirectly exposed to the instability of oil-exporting nations. Using a simultaneous quantile regression approach and the concepts of out-degree and in-degree centrality, the empirical results show that reliance on oil for both economic and energy needs can be dangerous to internal stability. The findings support the resource curse hypothesis for both oil-exporting and oil-importing countries. The latter import political unrest alongside oil, especially when crude oil is primarily used to meet their energy needs.

Impact of International Trade on the Carbon Intensity of Human Well-Being

There has been a longstanding debate about the impact of international trade on the environment and human well-being, yet there is little known about such environment and human well-being trade-off. Here, we explore the effect of international trade on the carbon intensity of human well-being (CIWB) globally under the current global trade system and a hypothetical no-trade scenario. We found that between 1995 and 2015, CIWB of 41% of countries declined and 59% of countries increased, caused by international trade, and this resulted in a reduction of the global CIWB and a decline in CIWB inequality between countries. International trade decreased CIWB for high- and upper-middle-income countries and increased CIWB for lower- and middle-income countries. In addition, our results also show that decreases in emission intensity are the most important driver of lower CIWB and the percentage contribution of emission intensity to the improvement in CIWB increases with income. The reduction of emission intensity, population growth, and increase in life expectancy all contribute to CIWB reduction, while the consumption level is the primary factor driving CIWB growth. Our results underscore the importance of studying the impact of international trade on the CIWB of countries at different stages of development.

Impact of international trade on water scarcity: An assessment by improving the Falkenmark indicator

Water scarcity, a threat to the sustainable development of human society, is determined mainly by water resource endowment and human water withdrawals. International trade may affect national water withdrawal, indirectly influencing nationwide water scarcity. However, most previous studies could not disentangle the indirect water consumption for local consumption and international trade purposes, failing to assess the sole impact of trade on water scarcity. Here, we developed an improved Falkenmark indicator to separate the effect of trade-related water withdrawal on water scarcity. Results show that international trade alleviates water scarcity for 2.2 billion people in high and upper-middle income countries. However, it aggravates water scarcity for 2.1 billion people in low and lower-middle income countries, of which almost all countries are already facing water scarcity and some even are of severe scarcity. Furthermore, our analysis shows that the primary product and food sectors contribute most significantly to intensifying and alleviating water scarcity, respectively. Hence, much greater attention needs to be paid to low and lower-middle income water-scarce countries since international trade could make these countries drier, which is becoming more important to improve the sustainability of global water resources management with a changing climate.

The Effect of Bilateral Labor Agreements on Trade

The period following the end of World War II is marked by increased international cooperation aimed, among other things, at promoting economic integration. As part of these efforts, national governments adopted policies to remove/reduce barriers to the exchange of goods and services as well as the movement of capital and labor. Although the impact of international trade and investment treaties on trade has been extensively documented, little to no attention has been paid to the potential impact of bilateral labor agreements (BLAs) on commerce flows. This study uses a novel dataset of BLAs within a gravity framework and finds that, over 5 years following signature, BLAs have a positive and significant effect on aggregate exports and exports of differentiated goods (i.e., chemicals and miscellaneous manufactured goods).

Trade protection and firm innovation in China

PurposeThe author investigates the effect of trade protection on domestic firm innovation in China and explores the channel through which trade protection affects corporate innovation.Design/methodology/approachUsing a sample of Chinese A-share manufacturing companies from 2003 to 2019, the author starts with a univariate analysis by examining the innovation output after trade protection for all samples. The author uses the natural logarithm of one plus the number of trade protection cases received by the industry to which the firm belongs in a particular year to proxy for trade protection.FindingsThe author finds that trade protection significantly encourages firms’ patent application, particularly substantive patents, which is stronger in non-state-owned enterprises. Moreover, the mitigation of financial constraint is plausible channel that allows trade protection to promote innovation.Practical implicationsFor practitioners, they should seize the dividends of national policies. In the process of implementing trade protection, they should concentrate on improving their innovation level and enhancing their core competitiveness. When they are not subject to trade protection, they can also make profits and develop in the long run.Social implicationsFor policy makers, in the early stage of industry development, trade protection can be used to ease the companies’ financing constraints and improve the companies’ profits, which will help them concentrate their efforts, promote innovation and further develop. However, in the mid-term development of the industry, policy makers should reduce trade protection. Through the entry of foreign capital, companies face increased competition, which can enhance the companies’ motivation for long-term development.Originality/valueOverall, this paper sheds light on the real effects of trade protection and the determinants of innovation. First, the paper sheds light on the impact of international trade on firms’ innovation. Second, this study also contributes to the emerging literature on the effect of trade policy uncertainty on financial constraint. Third, the paper adds to the stream of literature on the drivers of innovation.

Does Globalization Reduce Personal Violence? The Impact of International Trade on Cross-National Homicide Rates

AbstractWhile interest in globalization has continued to increase, few researchers have linked it to crime rates. However, if globalization has the characteristics suggested by either its supporters or detractors, it likely has a significant effect on cross-national violent crime rates. Supporters of the doux commerce (gentle commerce) thesis argue that increasing international trade decreases all types of violence, including homicide, by providing individuals with a rational interest in engaging peacefully with others, offering opportunities for cross border commerce and travel, and encouraging greater understanding of diverse cultures. By contrast, detractors argue that as globalization increases, inequality and poverty separate the economic well-being of highly industrialized core nations from that of developing peripheral nations and as this gap intensifies, it leads to crime increases. We also consider the possibility that the effects of trade globalization are either too small or too macro-level to significantly affect violent crime rates. Based on these competing arguments we examine whether homicide rates are significantly lower for countries with high levels of globalization, compared to countries with low globalization levels. We assemble a homicide database of 2145 observations over five decades, control for a wide range of alternative explanations, and test for an interaction between globalization and GDP. Consistent with the doux-commerce argument, we find that rising globalization has resulted in lower cross-national homicide rates during the past half century and that these declines are greatest for low GDP-high inequality countries. We consider the implications for theory, future research and policy.

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO2 emission

In recent years, studies on the impact of international trade on environment been extensively debated. Stiff international trade market becomes a push factor for the firms to engage in race to bottom activity and therefore, firms reallocate their production plant overseas in the form of foreign direct investment (FDI). The reallocation of the production plants of firms into developing countries has causing the environment of the host countries depleting. The environmentalist claimed this scenario as Pollution Haven Hypothesis (PHH). In this study, System Generalized Method of Moments (S-GMM) is employed to address the gap in the literature with the focus on the role of corruption in PHH. With the focus of developing countries during 2002 to 2018, our result finds that PHH valid in a more corrupted country. Countries with higher level of corruption are attracting polluted FDI than less corrupted countries. The present study is imperative as it provides an opportunity to advance knowledge on the significant theoretical insights into the relationships between corruption and PHH in developing countries.

Trade, competition and innovation

ABSTRACT The impact of international trade on technological change and productivity is an important and well-researched topic. The existing literature focuses on spillovers of knowledge, market size effects, Schumpeterian effects, and escape competition effects. Separately, economists working in the areas of Economic Growth and Industrial Organization have looked for a relationship, often nonlinear, between market structure and innovation. This paper investigates the indirect role of trade on innovation through a contribution to domestic competition. Using a unit of analysis of HJT technology subclass, I construct a panel data set that spans the period from 2002 through 2012. Trade adjusted and unadjusted concentration ratios are constructed for HJT technology subclasses and used to deconstruct the contribution of trade to innovation through this indirect channel. This novel approach to the data also uncovers strong evidence of a nonlinear relationship between innovation and market concentration.

Influence of Economic Openness on Total Factor Productivity: Evidence from China’s Belt and Road Initiative

The impact of international trade and export-oriented policies on economic growth has been an important topic. Based on an evaluation of China’s Belt and Road Initiative (BRI), this study provides new evidence of the positive causal link between increasing openness and long-term economic growth. Specifically, this study evaluates the BRI’s impact on 18 key provinces in China, with a focus on total factor productivity (TFP). Utilizing a panel dataset of 284 prefectural-level cities from 2007 to 2018, we examine the causal relationship between the BRI and TFP in a difference-in-differences framework. We apply the five-pronged approach to the BRI to explore the impact mechanism and examine heterogeneity in the effect in terms of geographic location and local government efficiency. We find that the BRI significantly promotes TFP in key provinces; it increases TFP through unimpeded trade, infrastructure connectivity, technical efficiency, and technological progress. The BRI promotes TFP in key coastal provinces belonging to the Maritime Silk Road while having a relatively limited impact on the other key provinces belonging to the Silk Road Economic Belt. This study has policy implications for promoting the BRI in China. It recommends that the government collaborates with firms and financial institutions in the construction of infrastructure.

Impact of International Trade on Economic Growth in Nigeria

Using data from the World Development Indicator (WDI) and the Central Bank of Nigeria (CBN) Statistical Bulletin, this article analyzed the impact of exports, imports, the currency rate, and inflation on Nigeria’s economic development between 1981 and 2020. The research employed Autoregressive Distributed Lag (ARDL) bound testing methodology. The variables utilized in the study were evaluated for stationarity using the Augmented Dickey-Fuller and Philip Perron test, and the bound testing process was applied to the equations. The lag of variables test can be performed to determine the relationship between the variables. The outcome demonstrated that variables are stationary at first difference. Economy growth, exports and imports, exchange rate, and Inflation all exhibit long-term cointegration, as determined by a cointegration test. Export positively impacted on growth while inflation and exchange rate were found to be negatively affecting growth in Nigeria. The article indicates that there is a beneficial association between international commerce and economic growth and supports the policy of encouraging exports and expanding Nigeria’s presence on global markets.

The impact of international trade on the price of solar photovoltaic modules: empirical evidence

PurposeOver the past decades, the global solar photovoltaic (PV) market has experienced an unprecedented development associated with a substantial decline in solar PV module prices. A body of literature has attempted to identify and evaluate the different sources of price variation. However, the impact of international trade on the price of solar PV modules has not yet been empirically examined. This paper contributes to filling this gap in the literature by providing a comprehensive empirical examination on the relationship between international trade and solar PV module prices.Design/methodology/approachThe author uses a sample of 15 countries over the period 2006–2015 and proposes a linear dynamic panel data model based on a new specification, including a number of relevant factors influencing solar PV module prices.FindingsThe empirical analysis reveals that an increase in imports of solar PV cells and modules is associated with a decline in solar PV module prices. This finding suggests that international trade could lead to further price reductions, thus fostering the deployment of solar PV technology. The study reveals several other important findings. Market and technological development are key factors explaining the decline in solar PV module prices. Moreover, government policies such as public budget for R&D in PV and feed-in tariff for solar PV are effective in reducing the price of solar PV modules.Originality/valueThis paper examines the influence of international trade, government policies, market development and technological development on solar PV module prices. The results may be of interest to both academic research and policy analysis.

EHandel międzynarodowy, korupcja i wzrost gospodarczy: dowody z wybranych krajów subsaharyjskich

Sustainable development goal 17 emphasizes the importance of international trade in achieving inclusive growth. Likewise, countries with high level of corruption will experience limited growth. In order to examine the causality, this study considers the impact of international trade and corruption on the economic growth of selected sub-Saharan African countries (Angola, Ghana, Kenya, Nigeria, and South Africa) from the period 2000-2019. The granger causality test and fixed effect method of estimation were adopted. The result of the granger causality tests shows that there is no causality between import and economic growth, there is unidirectional causality between export and economic growth and there is no causality between control of corruption and economic growth. Furthermore, it was discovered that export, import, and control of corruption have a positive impact, 25.4%, 32%, 45.5% respectively, on the economic growth of selected sub-Saharan African countries. Hence from these findings, policies towards export promotion should be encouraged as export is crucial for the economic growth of these countries and policies to curb corruption should be implemented in order to promote economic growth in the selected sub-Saharan African countries.