Implications For International Trade Research Articles

Market Diversification and Competitiveness of Fresh Grape Exports in Peru

Global trade and globalization have driven growth and diversification in the horticultural industry. Fresh grapes, a key product, face challenges of market volatility, trade barriers, and logistics. Market diversification is essential for stability and competitiveness in international trade. This research focused on analyzing market diversification in Peru’s fresh grape exports during the 2013–2022 period, exploring its implications for international trade. A quantitative methodology was used, along with the analysis of publicly recorded data on the website of the National Superintendence of Customs and Tax Administration, specifically exports from companies shipping under the national subheading for Grapes (0806.10.00.00). Diversification was analyzed using the Herfindahl–Hirschman concentration index (HHI), and competitiveness through the Balassa index. The main findings were that between 2013 and 2022, Peruvian grape exports grew in value (CAGR of 12.02%) and volume (CAGR of 12.13%). The sector expanded with an average of 151.2 companies and 59.1 destination markets. Diversification varied: the USA (12.4%), the Netherlands (1.6%), Hong Kong (4.2%), and Mexico (63.2%). The Herfindahl–Hirschman index showed concentration in the USA (4533 in 2020, 4519 in 2022) and stability in companies (2318 in 2014, 2450 in 2022). Finally, it is recommended to strengthen the Peruvian viticultural sector by maintaining geographic diversification through policies seeking new markets, monitoring global trends, constantly analyzing market concentration, and promoting fair competition among participating companies, allowing new ones to enter this sector.

Smart Contracts and International Trade: European Legal Strategies for Managing Challenges

Objective: the automation inherent in smart contracts makes them an attractive tool for global trade applications, especially for the automation of transactions. The prospects foreseeable will significantly impact international economic relations and the transformation of international trade rules. This fact determines the study objective - to identify the possibilities of transforming the said rules and the political and legal strategies adopted by European countries to implement smart contracts in international trade.Methods: the study, devoted to the current international trade regulation in the context of contracts digitalization and spread of smart contracts, uses a combination of formal-legal and comparative-legal methods. They allow researching the international trade rules, analyzing and comparing the UK and the EU political and legal positions on the smart contracts introduction in international trade, as well as predicting the legal consequences of using smart contracts in international trade.Results: the research shows that the proliferation of smart contracts has significant implications for international trade and its regulation. Smart contracts have numerous advantages, such as increased efficiency, reduced costs, and wide availability. However, they may lead to legal challenges when harmonizing traditional legal principles with the digital environment, in particular concerning the authentication of subjects, enforceability under specific circumstances of a case, and jurisdictional issues.Scientific novelty: the current literature on the transformation of international trade regulation in the context of digitalization processes and the spread of smart contracts is complemented by the results of a comparative analysis of the legal positions existing in the European legal space and developed on the basis of problems, lessons and achievements in the smart contracts implementation in international trade.Practical significance: understanding the legal implications of smart contracts is important for businesses involved in international trade. The study provides insights into the UK and the EU legal positions from which guidance can be provided to companies navigating the digital landscape. Policymakers can also benefit from the findings when developing appropriate legal acts to balance the benefits of smart contracts with the need for legal certainty and protection in international trade.

The Exchange Rate and Interest Rate Nexus: Evidence From the Symmetric Panel ARDL Approach

The exchange rate and interest rate nexus is a crucial area of research as it has significant implications for monetary policy, international trade and financial stability. This article investigates the dynamic relationship between exchange rates and interest rates in the context of the Brazil, Russia, India, China and South Africa (BRICS) countries. Employing a dataset spanning the period from February 1999 to August 2021, we employ a panel data approach to analyse the relationship between exchange rates and interest rates across the BRICS nations. The study incorporates key macroeconomic indicators such as inflation rates, GDP growth, treasury bill rate, money supply growth, call money rate to capture the complicated nature of the exchange rate and interest rate dynamics. Our empirical analysis employs various econometric techniques, including panel unit root tests, panel cointegration analysis and panel autoregression distribution models. These methodologies enable us to assess both the short-run and long-run dynamics between exchange rates and interest rates while accounting for potential heterogeneity across the BRICS countries. The findings reveal substantial heterogeneity in the exchange rate and interest rate nexus among the BRICS nations.

Analysis on the Relationship Between China-US Exchange Rate Fluctuations and Short-Term Cross-Border Capital Flows

The exchange rate, as a key indicator of a country's economic health and policy direction, has profound implications for international trade and cross-border investments. This study explores the relationship between the RMB exchange rate and short-term international capital flows (SICF) and employs various economic analysis methods to delve into this issue. The main findings of the study include, firstly, there exists a cointegration relationship between the RMB exchange rate and short-term international capital flows, indicating a long-term equilibrium relationship between them rather than just short-term fluctuations; secondly, Granger causality test results suggest a bi-directional causal relationship between these two variables, with changes in the RMB exchange rate being used to predict changes in international capital flows, and vice versa. Additionally, the estimated results of the VAR model established reveal linear relationships among five key variables and exhibit a high degree of fit. Finally, variance decomposition analysis reveals that the RMB exchange rate gradually becomes an important factor in the volatility of short-term capital flows, while the volatility of short-term capital flows itself gradually decreases.

Natural resources extraction of RCEP trade bloc: Examining geopolitical risk and economic situation

Natural resource extraction is a critical driver of many countries' economic growth and development. Given the significance of resource extraction for RCEP countries, this study investigates the effects of natural resource rent on the international trade of RCEP members. We use energy efficiency, GDP and geopolitical risk as control variables. Resources extraction, geopolitical risk and economic situation are the key variables of interest. The findings of this study highlight the important role of natural resource rents, geopolitical risk, GDP, and energy efficiency in shaping international trade patterns within the RCEP trade bloc. The detrimental impact of oil rent on international trade has been justified by the results obtained from the quantile regression analysis for each quantile. The study emphasizes the importance of policymakers and businesses understanding the complex interactions between these factors and their implications for international trade. The study also provides relevant policy implications for RCEP economies following their resources sector, economic structure, and geopolitical risk.

Highly pathogenic avian influenza: Considerations for vaccination and implications for international trade. A primary breeder’s perspective. Proceeding of The First International Avian Influenza Summit, University of Arkansas- October 16-17, 2023"

Vaccination against avian influenza requires the assessment of multiple technical, legislative, and trade aspects related to its epidemiology and the country’s veterinary infrastructure, commerce policies, and interests. According to the World Organization of Animal Health (WOAH), vaccination against AI should not preclude a country from eligibility for trade as long as it can prove freedom from natural infection. Importing countries may have policies above the general guidelines offered by WOAH; however. Whether living with the disease for a long(er) time, having to adjust vaccines to better protect against newer avian influenza virus variants or clades, and/or whether there are indemnity incentives available to compensate growers for the losses related to outbreaks, considerations pertaining to the geographic spread of the disease across the country’s territory, the sector(s) of the poultry industry being affected, and whether all alternatives to combat the disease have been explored, and perhaps exhausted, should also be taken into consideration. WOAH’s guidelines for the continuation of trade include zoning that limits restrictions to a geographical area (10 km, county, or state) instead of the entire country. Compartmentalization also offers another approach to the continuation of trade for premises that demonstrate robust biosecurity and management programs backed by testing to demonstrate freedom from infection. Alternatives to avoid or reduce waste products (e.g., meat and eggs) should also be considered according to implications to the risk involved of further spread onto other avian and poultry populations. Considering the fact that the 2.3.4.4b clade has been able to infect a large number of wild bird and mammalian species and, at least for countries where the disease is not endemic in its commercial sectors, vaccinating only poultry, at least in countries with low prevalence and incidence rate would not prevent the spread of the disease amongst that large pool of susceptible animal species. For this latter aspect, perhaps vaccination strategies would be more effective if developed towards mitigating prevalence in the natural reservoirs. This implies developing vaccines capable of being deployed in mass. In the large scheme of things and within the one-health concept, this latter approach may have a larger impact on combatting high pathogenicity avian influenza.

International trade and Ukraine's pursuit of self‐determination

AbstractIn this research, we assess the international trade implications of Ukraine's pursuit of self‐determination through the lens of the EU–Ukraine Association Agreement and the contemporaneous war with Russia in the years preceding the 2022 Russian Invasion. To do so, we construct a dataset with annual, bilateral export and import flows for Ukraine and a set of comparator countries at the 6‐digit level of the Harmonised Tariff Schedule (HS) for years 2000–2019. Using this data, we nest a difference‐in‐difference design within a series of econometric gravity models to estimate the effects on the sectoral and geographic composition of Ukrainian trade. Our results indicate a major re‐direction of exports towards the EU and away from Russia. Trade outcomes are one of many considerations that led to Ukraine's pursuit of EU integration.

Purchasing Power Parity and Trade Imbalances: Implications and Impact on International Finance

Purchasing power parity (GDP) is an economic concept that relates currency exchange rates to the prices of goods and services in different countries. This concept has important implications in international trade and global finance. This article discusses the importance of purchasing power parity in maintaining the balance of trade between countries and its impact on international finance. In the context of international trade, purchasing power parity serves as an important measuring tool in assessing whether a currency has weakened or strengthened excessively against other currencies. Significant trade imbalances between countries can indicate a violation of purchasing power parity, which can lead to volatile exchange rate fluctuations and global economic instability. In this article, we also analyze the impact of trade imbalances on international finance. A sustainable trade imbalance can lead to a balance of payments deficit or surplus, which has an impact on the country's capital flows and foreign exchange reserves. These implications affect monetary policy, currency stability, and foreign investment in the countries involved. Title in Bahasa Indonesia: Paritas Daya Beli Dan Ketidakseimbangan Perdagangan: Implikasi Dan Dampak Pada Keuangan Internasional

Spatial determinants of income inequality at the global level: The role of natural resources

Income inequality is a critical determinant of economic development, making it imperative to identify the factors that impact it positively or negatively through diverse methodologies. This study aims to investigate the spatial implications of natural resource rents, international trade, and democracy on income inequality in 78 countries across different regions from 1995 to 2017. A regional disaggregation was carried out, capturing spatial spills between neighboring countries. The study employed a spatial panel data econometric approach, integrating spatial lag (SAR), spatial error (SEM), Spatial Autoregressive Combined (SAC), and spatial Durbin (SDM) models. The findings provided empirical support for Heckscher and Ohlin's (1933) theory, indicating that regions with robust democratic systems effectively mitigate income inequality. Additionally, developed regions characterized by strong democracies demonstrated the capacity to enhance social welfare through the utilization of natural resource rents. Moreover, the study confirmed the presence of spatial dependence in income inequality across a majority of regions, with indirect effects manifesting as spillovers to neighboring countries. This research presents novel findings that contribute to understanding how income from natural resources affects income inequality, considering spatial effects. Likewise, this scientific article provides new ideas for the approach of new perspectives, focus, or theories on income inequality. An emphasis of economic policy might be on progressing toward a more exceptional level of transparency and fair democracy as well as on enhancing and diversifying the producing sectors. In order to reduce resource concentration, collaboration across nations would be crucial, taking geographical disparities into account.

China and the energy matrix in Latin America: Governance and geopolitical perspective

The importance of energy for States is fundamental. The proper functioning of production depends on energy security and energy policies. It is an object of geopolitics to control a region's production strategically. With the fight against climate change, green energy policies became relevant. In Latin America, the energy supply has various fossil and non-fossil fuels, primarily hydroelectric and alternative renewables. Energy demand is weak for EVs and mass transport vehicles. The energy matrix change process is led by China in Latin America, with a powerful presence through both credits and investments, both in renewable energy generation and the demand for EVs. Generally, she has invested the most money in energy in the world. Theoretically, there is a geopolitical issue as China has stepped into the US “backyard”. The result is that the energy matrix change has implications for domestic taxation, international trade, and inter-American relations. Chinese foreign direct investment (FDI) in Latin America has concentrated mainly on renewable energy since 2015, with strong resistance from the United States.

Food trade among Pacific Island countries and territories: implications for food security and nutrition

BackgroundThere is growing attention to intra-regional trade in food. However, the relationship between such trade and food and nutrition is understudied. In this paper, we present an analysis of intra-regional food trade in the Pacific region, where there are major concerns regarding the nutritional implications of international food trade. Using a new regional database, we examine trends in food trade among Pacific Island Counties and Territories (PICTs) relative to extra-regional trade.ResultsIntra-regional trade represents a small, but increasing proportion of total imports. The major food group traded within the Pacific is cereal grains and flour, which represented 51% of total intra-regional food trade in 2018. Processed and prepared foods, sweetened or flavoured beverages, processed fish, and sugar and confectionary are also traded in large quantities among PICTs. Trade in root crops is negligible, and overall intra-regional trade of healthy foods is limited, both in terms of tonnage and relative to imports from outside the region. Fiji remains the main source of intra-regional imports into PICTs, particularly for non-traditional staple foods.ConclusionsThis study highlights the growth in trade of staple foods intra-regionally, indicating a role for Fiji (in particular) in regional food security. Within this overall pattern, there is considerable opportunity to enhance intra-regional trade in traditional staple foods, namely root crops. Looking forward, the current food system disruption arising from the COVID-19 pandemic and associated policy measures has highlighted the long-term lack of investment in agriculture, and suggests an increased role for regional approaches in fostering trade in healthy foods.

Lasiodiplodia iraniensis, a New Causal Agent of Tuber Rot on Yam (Dioscorea Species) Imported into the United States and Implications for Quarantine Decisions.

One negative consequence of international trade of agricultural commodities is the inadvertent global spread of crop diseases. Yam (Dioscorea spp.) is a staple food crop in many countries and is traded globally. Most of the commercially traded yams in the United States are imported. In late 2020, samples of yam tubers from a commercial facility were submitted to the plant diagnostic clinic at the UF/IFAS Tropical Research and Education Center in Homestead, Florida. Samples showed rotten symptoms and were drawn from lots that were marked to be destroyed because the source of the rotting symptoms was unknown. Preliminary isolation showed that a fungus was consistently associated with the symptoms and was confirmed in the subsequent pathogenicity test as the causal agent. The fungus grew profusely on potato dextrose agar (PDA) with highly melanized hyphae. Matured conidia showed longitudinal striations. Based on its growth pattern and morphology, it was suspected that this fungus may be in the genus Lasiodiplodia. DNA-based identification using partial sequences of the internal transcribed spacer (ITS), β-tubulin (TUB2), 28S rDNA (LSU), and elongation factor alpha (EF1-α) genes confirmed the identity of the isolates as Lasiodiplodia iraniensis Abdollahz., Zare & A.J.L. Phillips (synonym: L. iranensis). This is the first report of L. iraniensis affecting yam and has implications for international trade. This finding will provide an important foundation for making quarantine decisions to prevent spread of this disease.

Environmental Concern Leads to Trade Skepticism on the Political Left and Right

Abstract The environmental implications of international trade appear to be associated with public backlash against trade liberalization and efforts at greening international trade. Because public support is essential to environmental and trade policy-making alike, we examine the trade–environment nexus from a public opinion perspective. We investigate whether negative attitudes toward trade are in fact fueled by concern over its environmental consequences. We argue that environmental concern affects how citizens evaluate the costs and benefits of trade, and that such evaluation is moderated by political ideology. The empirical analysis relies on a large representative survey and a population-based survey experiment in Switzerland, a small open economy. We show that environmental concern leads to decreasing appreciation of and support for international trade, with different manifestations of trade skepticism on the political left and right. This suggests (i) that policy-makers should focus more on greening global supply chains, and thus trade, if they wish to sustain public support for liberal international trade policy; and (ii) that the public follows informational cues on the environmental impacts of trade.

Saving Household Production-Cum-Consumption Time: Implications for International Trade in Trash

This article revisits Kemp’s and Tran-Nam’s incorporation into trade theory the Gossenian theme that consumption takes time. We show how the substitutability between time-intensive household-produced consumption goods and time-saving commercially produced consumption goods (which save households’ consumption and production time) together with capital accumulation can lead to an increase in trash and international trade in trash. The applicability of the standard gains from trade theorems is shown to be compromised by the externalities associated with international trade in trash between North and South. Under some parameter values, South is better off under autarky than under free trade in trash and the gains from trade by North is not sufficient to compensate South’s loss from trade. JEL Codes: D13, F18, F13

Renewable-energy consumption and international trade

This paper investigates the implications for international trade of a country’s dependence on renewable energy consumption in total energy use. We use data for 152 countries over the period 1990–2014. We estimate a gravity equation of bilateral trade to assess the role of renewable energy consumption on international trade. We find, inter alia, that a 1% increase in the use of renewable energy as a proportion of total energy leads to, on an average, a 1.026% decrease in exports, and a 0.39% increase in imports, suggesting that renewable energy use makes trade less competitive. This outcome is due in part to cost implications of using renewable energy sources. However, we also find some heterogeneity in this respect. Whereas Organization for Economic Co-operation and Development (OECD) countries export more with increased use of renewable energy, for non-OECD countries renewable energy use reduces exports.

A Study of the Influence of Cultural Distance on the Retention of Multinational Exhibitors

ABSTRACT Customer retention is an important basis for International Trade shows to obtain sustained competitive advantage, and the retention of multinational exhibitors is largely influenced by cultural heterogeneity. This study intends to explore the influence of cultural distance on the retention of multinational exhibitors based on Hofstede’s national culture model. It is based on an analysis of 4476 multinational exhibitors from 7 famous international trade shows in China through web crawler technology. The results reveal that total cultural distance has a significant positive effect on the retention of multinational exhibitors. However, different sub-dimensions under cultural distance may have different effects. In terms of sub-dimensions including power distance, individualism and uncertainty avoidance, the greater the cultural distance, the easier it is to retain customers. As for sub-dimensions of long term orientation, the estimated results display an opposite tendency. The findings contribute to the literature and have practical implications for international trade shows’ service and management.

The role of electrochemical biosensors in SARS-CoV-2 detection: a bibliometrics-based analysis and review.

The global pandemic of COVID-19, which began in late 2019, has resulted in extremely high morbidity and severe mortality worldwide, with important implications for human health, international trade, and national politics. Severe acute respiratory syndrome coronavirus (SARS-CoV-2) is the primary pathogen causing COVID-19. Analytical chemistry played an important role in this global epidemic event, and detection of SARS-CoV-2 even became a part of daily life. Analytical chemists have devoted much effort and enthusiasm to this event, and different analytical techniques have shown very rapid development. Electrochemical biosensors are highly efficient, sensitive, and cost-effective and have been used to detect many highly pathogenic viruses long before this event. However, another fact is that electrochemical biosensors are not the technology of choice for most detection applications. This review describes for the first time the role played by electrochemical biosensors in SARS-CoV-2 detection from a bibliometric perspective. This paper analyzed 254 relevant research papers up to June 2022. The contributions of different countries and institutions to this topic were analyzed. Keyword analysis was used to explore different methodological attempts of electrochemical detection techniques. More importantly, we are trying to find an answer to the question: do electrochemical biosensors have the potential to become a genuinely employable detection technology in an outbreak of infectious disease?

Path analysis for carbon transfers embodied in China's international trade and policy implications for mitigation targets

International trade has shifted part of the responsibility for carbon mitigation from consumers to producers, therefore quantifying mitigation targets and allocating responsibilities have become the focus of research. This study quantified carbon transfers between mainland China and its trade partners from a consumption perspective, and identified the transfer paths from initial production to final production and then consumption. We projected China's allowed carbon increment before peak carbon, and recommend policy measures based on different national technological levels. Given China's 1.25 Gt net exports of carbon, the country's share of the allowed carbon increment before peak carbon would increase from 30% to 51% in 2015 before 2030. The net carbon transfer paths from China driven by consumption by its trading partners accounted for 87% of the total number of paths, with paths to the United States and Hong Kong for exports of both primary and final products being the most prominent. On the other hand, the net carbon import transfer paths driven by China's consumption were dominated by imports of primary products from South Korea and Russia. In comparison with the production country, a country that drives net carbon transfers and has a higher technological level should strengthen its industrial and consumption structures and reduce emission through technical assistance to countries with a lower technological level; the latter should improve production efficiency to reduce imported demand and mitigate the emission. Our study provides a methodological framework and theoretical guidance for a more scientific and equitable allocation of carbon mitigation responsibilities.

International trade and standards harmonization: The case of tractors and the OECD Tractor Codes

AbstractAlthough the trade effects of public and private standards—particularly for food safety and environmental quality—in agricultural markets have been well documented, much less is known about standards harmonization and international trade in tractors, a crucial input to agricultural production in most countries. We analyze the trade impacts of the long‐lived OECD Tractor Codes—an integrated system of standardized tractor tests for performance and safety, certification, and mutual recognition agreements established in 1959. We hypothesize that this system increases tractor trade between members and possibly among members and nonmembers because it: (1) reduces duplication of tests across import markets, (2) lowers transaction costs of tractor trade disputes, (3) enhances manufacturers' risk management, and (4) boosts farmer demand through greater trust resulting from intergovernmental organization certification. Using bilateral COMTRADE data for 1962–2018, we estimate a structural gravity equation using Poisson pseudo‐maximum likelihood methods to account for zero trade. After controlling for economic integration agreements and OECD membership, our benchmark analysis suggests trade is roughly one‐third larger if both partners are members, a finding that is robust to considerations of gradual adjustment costs and reverse causality. We further find that this effect varies by countries' timing of accession and, to a lesser extent, level of economic development, though trade creation effects are inconclusive. A counterfactual analysis indicates that manufacturers and farmers in nonmember countries, including several middle‐income and low‐income countries, would benefit from membership. Our results have important implications for standards harmonization and international trade in agricultural machinery.

Implications of international trade and investment agreements on policy space for restricting marketing of unhealthy food and beverages to children: lessons from inter-disciplinary expert interviews.

To determine the implications of international trade and investment agreements (TIA) for national governments' policy space to restrict the marketing of unhealthy food and beverages to children. In-depth interviews based on a series of policy scenario 'vignettes,' guided by an adapted scenario analysis methodology. Global. Nine key informants from relevant sectors, with expertise regarding the intersection of public health nutrition policy, international trade law and international investment law. Participants consistently identified the relevance of several principles, common to many TIA: non-discrimination, necessity and justification, market access requirements and quantitative restrictions, intellectual property rights and trademark protections and fair and equitable treatment of investors. Two main policy design factors that interact heavily with TIA-related policy space were the framing of objectives and regulatory distinctions drawn. Contextual factors may shape the analysis of TIA-related policy space on a case-by-case basis, while the relative power of the actors and institutions involved in both domestic and international policy spheres may influence whether and how such legal constraints to policy space are activated. Regulatory marketing restrictions run the risk of incurring challenges under World Trade Organization agreements and other free TIA. However, concerned policymakers should be aware of the difference between theoretical risk, threat of a challenge and realistic initiation and/or loss of a formal dispute. Our findings indicate that there is policy space to adopt significant marketing restrictions, though an understanding of these legal risks and strategic policy design are important.