Export-oriented Research Articles

Why do Indian exporting firms borrow in foreign currency?

Purpose Since the liberalization policy of 1991, India has focused on export-led growth. However, the performance of international trade remains poor. This study aims to examine the role of credit constraints on the choice of Indian manufacturing firms to borrow in foreign currency. First, it explores the role of export activities in foreign currency borrowing (FCB). Second, it investigates how credit constraints forced these firms for foreign currency loans. Design/methodology/approach The study analysed data from 1,412 firms listed on the Bombay Stock Exchange in the manufacturing sector, covering the period from 1991 to 2022. A random effects probit model was used to examine the role of credit constraints on FCB, incorporating the influence of micro, small and medium enterprises (MSMEs) status and export activities. Additionally, a two-step system-generalized method of moment was used for robustness checks. Findings Export activities significantly influence FCB, with exporting firms showing a higher propensity to borrow foreign currency compared to domestically operating firms because of the increased funding needs of export activities. Larger firms are more likely to secure FCB than MSMEs, benefiting from collateral advantages. MSME exporting firms exhibit a higher tendency to borrow in foreign currency compared to large exporting firms. Research limitations/implications This study focuses on firm-level data and considers only demand-side credit constraints. It does not examine supply-side credit constraints affecting FCB. Social implications This study underscores the credit constraints faced by MSME exporters in the domestic market, leading them to rely on FCB. These insights are valuable for policymakers aiming to reduce MSMEs' dependency on FCB and enhance their export performance. Originality/value The findings highlight that MSME exporting firms are more inclined to borrow in foreign currency than their larger counterparts. This tendency is driven by the credit constraints MSMEs face because of asymmetric information and underdeveloped financial markets, which compel them to seek FCB.

Cointegrating and causality relationship between exports and economic growth: case for Botswana

The study employed the Autoregressive Distributed Lag (ARDL) Bounds model to test for cointegration and the Toda and Yamamoto and Dolado and Lütkepohl (TYDL) model to examine the direction of causality between exports and economic growth for Botswana covering the period 1980 to 2021. Exports statistically positively affect economic growth both in the short-run and long-run and trade openness is detrimental to economic growth both in the short-run and long-run. Economic growth promotes exports both in the short-run and long-run. Economic growth granger causes exports and indirectly influences exports through trade openness and consumer price index. Furthermore, there exists bidirectional causality between economic growth and the consumer price index. The findings underscore the importance of maintaining a healthy and stable macroeconomic environment in Botswana. In addition, a well-rounded approach that considers both export-oriented industrialization and import substitution strategies remains essential for a robust economic growth trajectory.

Pengaruh Jumlah Produksi Kakao, Harga Kakao Dunia, Nilai Tukar, dan Harga Ekspor Kakao terhadap Ekspor Kakao di Indonesia

This study aims to analyze the development of cocoa commodity exports in Indonesia. This study uses time series data from 2002 to 2016 and processed using SPSS. The independent variables in this study are the Total Cocoa Production, World Cocoa Prices, Exchange Rates, and Cocoa Export Prices with the dependent variable namely Indonesian Cocoa Exports. Simultaneous test results show that Cocoa Production Amount, World Cocoa Prices, Exchange Rates, and Cocoa Export Prices simultaneously have a significant effect on Cocoa Exports in Indonesia. While the partial test results indicate that the variable Cocoa Production Amount, World Cocoa Prices, Exchange Rates, and Cocoa Export Prices are partially not significantly influence the Cocoa Export in Indonesia.

Assessment of export-embodied CO2 emissions from China’s ocean industries: implications for formulating sustainable ocean policies

The ocean industries are characterized by being export-driven. The exports of ocean industries (hereafter termed ocean exports) caused environmental pollution with amounts of CO2 emissions and thereby affected climate change. There is a need, therefore, for accurate assessments of CO2 emissions embodied in ocean exports—which can help policymakers adopt targeted emission-reduction measures to formulate sustainable ocean policies. However, few studies of ocean-industry emissions considered impacts in sectoral and trade pattern heterogeneity, especially from export perspective. To fill this gap, we measured and evaluated the export-embodied CO2 emissions from China’s ocean industries, based on our newly developed high-resolution and comparable time-series environmentally extended input–output database, called EE-DPN-OEIOT. The results showed that China’s ocean exports generated 94.3 Mt of embodied CO2 emissions in 2017, with nearly 40% originating from processing ocean exports. Regarding the evolution from 2007 to 2017, the total export-embodied CO2 emissions from ocean industries decreased by 7.3%, while the embodied CO2 emissions in processing ocean exports increased by 50.1%. From 2007 to 2017, the decrease in carbon emission intensity was the major driving factor of the downturn in export-embodied CO2 emissions across the total ocean economy and for seven ocean subsectors (60%), while the export-scale effect primarily drove the increases in CO2 emissions. Moreover, there were disparities in the driving factors behind changes in embodied CO2 emissions between processing and non-processing ocean exports. Based on our findings, we proposed three recommendations from a trade perspective to facilitate low-carbon sustainable transition of China’s ocean economy, thus better fulfilling Sustainable Development Goal 14.

Export as a driver of the development of the agro-industrial complex of the Russian Federation

Relevance. The implementation of the export potential of the agro-industrial complex of the Russian Federation is largely related to the concentration on priority supply areas, peculiar drivers of growth in the export of agroindustrial complex products. The relevance of the article is based on the identification and assessment of product drivers of export growth (exporting firms) in 2023.The purpose of the study is to analyze the export of agricultural products of the Russian Federation.Objectives. This goal was achieved by solving the following tasks: analyzing the volume of exports of products of the agro-industrial complex of the Russian Federation within the framework of the National Project "International Cooperation and Export" and the annual minimum permissible effectiveness of export support measures in the agro-industrial complex of the Russian Federation under the FP "Export of agro-industrial complex" in 2021-2023; evaluation of food drivers of export growth (exporting firms) in 2023 wheat, barley, corn, peas, lamb, pork milk powder.Methodology. The work used well-known methods of economic research: systemic analysis, comparison, generalization, interpretation of results and other general scientific methods. In the process of research, the systematization of statistical data, scientific publications of scientists on the topic of the presented work was carried out.Results. The analysis of the export of agricultural products of the Russian Federation was carried out and the assessment of the product drivers of export growth (exporting firms) in 2023 was given: wheat, barley, corn, peas, lamb, pork, milk powder.Conclusions. The main idea of the article is that it is exports that are the key driver of growth in the production of agricultural products of the Russian Federation. An important condition for the development of exports in our country is the opening of new markets, which is happening by 2024, access was obtained to more than 90 countries in 236 types of agricultural products. In addition, the number of enterprises certified for export is growing every year.

КЛАСТЕРНЫЙ ПОДХОД К ОПРЕДЕЛЕНИЮ ФАКТОРОВ ВЛИЯНИЯ НА МОЛОЧНОПРОДУКТОВЫЙ ПОДКОМПЛЕКС АПК

The paper analyzes the dairy subcomplex of the agroindustrial complex using k-means; stakeholders can identify individual periods with similar characteristics in the dairy industry, which helps develop targeted strategies to increase production efficiency, market distribution and sustainability. Using Jamovi software and its snowCluster and factoextra modules, two clusters were identified. Cluster 1 (2004-2021) has lower milk production and fewer cows but higher imports, indicating dependence on imports due to smaller herd sizes or less efficient farming. Cluster 2 (1995-2003) shows higher production and livestock of cows but lower imports and exports, which indicates self-sufficiency or export orientation. Cluster 1's dependence on imports may lead to economic vulnerability and changes in consumer preferences, which will require policies to stimulate local production. On the contrary, cluster 2, characterized by domestic production and market stability, could focus on sustainable practices, developing the export market and adapting to consumer trends. Understanding these clusters is crucial for the development of individual strategies in the field of agricultural policy, market development and sustainable development.

Analyzing the causal relationship between exchange rate and international tourism in Vietnam

The impact of tourism on exchange rates, and vice versa, varies from country to country. This study empirically explores the causal relationship between exchange rates and international tourism in Vietnam. To examine this relationship, data on real exchange rates, foreign tourist arrivals, and real tourism revenue were extracted from the general statistical yearbook from 2000 to 2019. This paper explicitly highlights how exchange rates impact tourism under a government-controlled exchange rate regime. The results indicate a weak unidirectional causal relationship between foreign tourist arrival and real exchange rates. An increase in the real exchange rate increases short-term income but has a negative impact on long-term tourism revenue, while an increase in real tourism revenue reduces the real exchange rate in the short run but is stable in the long run. The research supports the perspective that maintaining a stable exchange rate attracts international tourists in the long term. Based on these findings, the Vietnamese government should adopt a cautious approach to price stabilization policies and encourage export-oriented industries to attract international tourists and promote tourism.

Inviting foreign direct investment for sports development projects in relation to economic development and development challenges

The present study aimed to investigate attracting foreign direct investment for sports development projects in relation to economic developments and challenges. The researchers utilized a descriptive approach, using a questionnaire, due to its appropriateness for the nature of the research. A total of 300 workers from the General Office of the Ministry of Youth and Sports participated in this study. They were selected using a stratified purposeful sampling method from the following categories: undersecretaries, general directors, department directors, department heads, and administrators. The findings of this study showed support for foreign trade exchanges through investment in export industries, especially in contexts where the host country has an advantage over the country of origin and where banking facilities are available in commercial banks. Additionally, it was demonstrated that lower risk and higher returns lead to an influx of investments. Consequently, this increases capital formation, particularly by reducing the state's dependence on external debt and decreasing the volume of foreign aid.

ANALYSIS OF EXPORT-LED GROWTH MODEL FOR TÜRKİYE ECONOMY WITH MARKOV REGIME SWITCHING MODEL

Research on the export-led growth model is significant due to the contribution of exports to the development of domestic sectors and its positive impact on national values, especially employment and growth. Therefore, countries prefer the export-led growth model by increasing their export volumes with an outward-oriented policy. When Turkiye's growth figures are analyzed, it is feasible to say that there is a strong connection between exports and economic growth. In this study, within the framework of export-led growth hypotheses, the additive of exports to Turkiye's growth dynamics between 1980 and 2022 is investigated. The aim of the study is to econometrically test the intercourse between exports and GDP in the Turkiye economy. In the analysis, first linear unit root analyses were implemented. Then, the dynamic correlation relationship between exports and GDP was analyzed with DCC-GARCH, and the dynamic regression relationship was performed with the Markov regime switching model. As a consequence of the examines, it was seen that the dynamic correlation indicators and Markov model results were consistent with each other. While it was found that the correlation decreased during the high volatility period, a decrease in the number of regressions was observed according to the Markov model results.

Asean Legal Framework for Cooperation against Illegal, Unreported and Unregulated Fishing (iuu): Significance, Challenges and Proposed Solutions

Abstract Illegal, unreported, and unregulated (iuu) fishing is an act that is provided for in many international legal instruments, causing enormous impacts on biodiversity and the environment, sustainable development as well as entailing serious economic impacts. For that reason, the European Union has taken strict action against fishing vessels and iuu-supporting countries through the mechanism of “yellow card”, and even “red card” on aquatic products imported into the EU, based on meeting EU standards for iuu fishing. Not only Vietnam but many countries in asean have also been sanctioned by such cards from the European Union (EU). Not only has this measure greatly impacted each country’s export industry, but it also harms asean as a whole. Establishing and developing an asean cooperation mechanism for combating iuu fishing is meaningful in that context. The article stresses on the importance of a legal framework for combating iuu fishing in asean; and discusses the challenges to developing such a framework. Finally, the article proposes solutions to realize asean’s cooperation model.

Asymmetric Impact of Economic, And Structural Factors on the Development of the Non-Oil Export Sector in GCC Economies 1992-2022: Structural Reform Priorities to Sustainable Economic Growth

The current study empirically investigates to explore the links between economic and structural variables of non-oil export industry development in GCC economies. The research spans the years 1992 to 2022. It is understandable to wonder why some oil-producing countries have been able to diversify and build their economy while others have not. We postulate that disparities in the diversification and development patterns of oil producers are related to differences in their economic and structural characteristics. Divergence in diversification and development trends may result from such discrepancies. We measure the role of economic and structural elements to test this idea. The findings indicate that economic and structural factors play a critical role in the process of diversification and development. Countries have the higher-quality infrastructure, in particular. The findings imply that GCC authorities should improve robust macroeconomic conditions to support their non-oil export sector and boost institutional quality drivers to accelerate non-oil export sector development in their nations. The empirical findings can assist GCC policymakers in better designing the economic policies required to accomplish the GCC countries' comprehensive and sustainable economic development. Asymmetric mechanisms in non-oil export responses to economic and structural factor changes are likely to differ across economic sectors in GCC countries. A sectoral examination of this link could provide further information and supplement our analysis. New capital and infrastructure must be accommodated to support domestic and export manufacturing.

Impact of special economic zones on export diversification in sub-saharan Africa

This paper presents a comprehensive analysis of the impact of special economic zones (SEZs) on export diversification in Sub-Saharan Africa (SSA). With export diversification being a key concern for SSA policymakers, many countries in the region have implemented SEZ programs over the last three decades to stimulate industrial development and export-led growth. By providing incentives to attract investment, SEZs aim to enhance the business environment and draw firms from both traditional and emerging sectors. Using a difference-in-differences approach on a panel dataset covering 32 SSA countries from 1970 to 2014, this study investigates the effects of SEZ adoption on overall export diversification, as well as on the extensive and intensive margins of exports. The findings suggest that SEZ adoption has led to a more balanced distribution of export shares among traditional sectors, thereby promoting greater export diversification in SSA countries. However, the effectiveness of SEZs in fostering the creation of entirely new sectors appears to be limited.

Factors of Dynamics of ICT Services Exports: The Case of Kazakhstan

The paper examines the trends in Kazakhstan’s export of information and communication technology services, which is currently one of the priorities of the country’s economic development.Aim and Tasks. Determining the impact of government spending, foreign investment and other significant factors on exports of ICT services; assessing the extent of this impact.Methods. Evaluation of the impact on the dynamics of ICT services export on the basis of comparative and correlation analysis, comprehensive analysis of the industry development indicators in the context of its export orientation, assessment of the impact on ICT services export of the factor of migration of companies and specialists from Russia in 2022–2023 and the resulting growth in the number of ICT sector enterprises with foreign capital.Results. It has been revealed that the influence of traditional factors on the export of ICT services by Kazakhstan, including state budget expenditures, gross inflow of foreign investments, and FDI stock in industries producing these services, has been insignificant or absent over the past decade. The maximum impact on the export of ICT services was caused by an increase in the presence of companies in the industry with the participation of foreign, primarily Russian capital, which occurred in 2022–23.Conclusions. The development of foreign trade activities in sectors of the economy with low initial indicators of export orientation may be more strongly influenced by non-traditional sporadic factors, such as migration of businesses and specialists in the case of the ICT sector in Kazakhstan, whereas traditional factors of their development, including government fostering and foreign investment may not be effective enough.

Analysis of the Contribution of the Processing Industry Sector in Efforts to Reduce Poverty in North Sumatra Province

This study aims to analyze the contribution of the processing industry to efforts to reduce poverty in North Sumatra Province, analyze the influence of the number of industries, investment, exports on industrial GDP and the number of population, unemployment on the poverty rate. This study uses secondary data in the form of time series data, 2009-2023, namely data on the number of industries, PMDN investment in the processing industry, Industrial Exports, the number of population, unemployment, Industrial GDP, and poverty in North Sumatra province. The analysis method used is simultaneous regression. The results of the study show that the influence of the number of industries has an impact on the increase in industrial GDP, and the number of population also has an impact on the increase in poverty, then the industrial GDP does not have a significant impact on poverty in North Sumatra Province.

Export Instability, Investment, Export Growth and Economic Growth in India

The “Export-led Growth Hypothesis,” as it is known in the literature, is still a popular issue in both theoretical and empirical research. According to the export-led growth hypothesis (ELGH), a key factor in determining growth is the expansion of exports. It asserts that growing capital and labour inputs into the economy as well as exports can contribute to a country’s overall growth. The association between economic development, export growth, export fluctuation, and real effective exchange rate (REER) in India from 2001 to 2021 is examined in this paper using a multiple linear regression analysis model. Additionally, the impacts of foreign exchange, export fluctuation on investment, and import of capital goods have also been studied. The autocorrelation is also tested using the Durbin-Watson (D-W) test. Investigation of the association between income growth and exports in the context of India reveals that the country’s exports haven’t increased significantly enough to prove the theory of export-led growth. For instance, ceteris paribus, one per cent change in exports over time is expected to result in a 0.007 per cent increase in GDP. Weaker global demand, inflation, dropping exports, and growing global trade conflict all contribute to a weaker-than-expected positive link between GDP and exports. However, the findings have also shown that one per cent rise in instability increases GDP by 5.04 per cent. Furthermore, research has indicated that export instability does contribute to import for capital goods and demonstrates the relationship between investment and export instability is positive but not statistically significant. The result for policy is that, in order to decrease the negative impacts of export fluctuations, India should concentrate on those goods in which it has a competitive edge. The primary factors of the excessive volatility and restricted growth must be fully investigated in order to mitigate instability, and inherent flaws must be addressed.

Increasing Selling Value of Processed Shrimp Products Using Strategies Developed by Six Sigma and Human Factor Integration

The export value of the Indonesian fisheries sector, including the shrimp industry, increases every year. Effective and efficient production processes are needed to maintain product quality, ensuring business sustainability. This study aims to determine the potential causes of shrimp product failure and provide improvement recommendations. The case study is one of the shrimp export industries in East Java, with the stretching process of shrimp sizes of 26-30, 2LX, L OIE, and 2L OIE. The results showed that size 26-30 had the most considerable defect per million opportunities (DPMO), with a value of 574,948 and a sigma value of 1.31. The cause of product defects with the highest risk priority number (RPN) is low labor motivation. The calculations using Herzberg's Theory show that the wage issue has the lowest value of 3.38. A SWOT analysis was then conducted to design a business strategy. The result shows that the company's position was in Quadrant 3, meaning it needs to change its strategy. The focus group discussions (FGDs) resulted in four recommendations, with a change in the wage scheme receiving the highest alternative weight evaluation value of 0.385.

Export development of SMEs through e-marketplaces

El presente artículo de revisión tiene como objetivo aumentar la literatura sobre el desarrollo exportador de las PYME peruanas a través de e-marketplace, esto debido al continuo avance de la tecnología de Internet y la intensificación del comercio electrónico. El análisis de la presente investigación se realizó mediante una revisión bibliográfica sistemática, en la cual se seleccionaron un conjunto de artículos relacionados con desarrollo exportador y marketplace, siguiendo algunos criterios por conveniencia con el fin de extraer información acertada y fiable. Se utilizó como criterio de inclusión los artículos de revistas sobre marketplace y desarrollo exportador, horizonte temporal, y límites de búsqueda, y como criterio de exclusión libros, artículos de conferencia, editoriales y comentarios. Tras la iteración realizada, la muestra final incluye 40 artículos de revistas y se concluyó que existen pruebas empíricas más que suficientes para establecer la existencia de una relación positiva entre desarrollo exportador y los e-marketplace. Este estudio propone la capacidad de transformación digital de las empresas que optan por el comercio electrónico transfronterizo (e-marketplace) como variable que afecta su rendimiento exportador.

A Study on the Effect of Imported Wheat Prices on Türkiye’s Pasta Exports: ARDL Approach

Türkiye has possessed significant agricultural opportunities throughout its history. Although the effective utilization of these opportunities is a subject of debate today, the country still plays a significant role in the global trade of some agricultural products. When discussions about Türkiye’s exports are examined, a common complaint is the external dependency of the export industry. However, there are also debates about the diminishing agricultural advantages that have been present since the past. When these discussions are brought together, the trade of certain processed agricultural products, whose raw materials are agricultural products, also becomes a noteworthy research topic due to a similar import dependency. In this study, an analysis was conducted using time series and the ARDL model to investigate whether there is a relationship between Türkiye’s pasta export quantity, as one of the leading pasta exporter’s globally, and the prices of wheat imports from Ukraine, Russia, and Bulgaria. Also robustness checks enhanced the analyzes by employing FMOLS and DOLS methods. The research findings indicate variations in the impact of wheat prices from country to country on the quantity of pasta exported by Türkiye. Recommendations regarding the importance of wheat production in Türkiye are also provided as a result of the research.

What next after hyper-globalization and export-oriented industrialization?

What next after hyper-globalization and export-oriented industrialization?

Examining the relationship between exports and economic growth in Türkiye: Fourier Toda-Yamamoto Granger causality test

This study aims to investigate the causal relationship between exports and economic growth in Türkiye from 2016:1 to 2023:12, focusing on the validity of the export-led growth hypothesis. The Fourier Toda-Yamamoto Granger Causality Test created by Nazlıoğlu, Gormus and Soytas (2016) was used with variables including total exports and industrial production index derived from monthly data. The data suggest a bidirectional causation between the two variables, indicating that each one is the cause of the other. The export-led growth hypothesis is confirmed in Türkiye for the relevant timeframes. The results of this study align closely with existing research on the topic compared to other studies, further suggesting that decreasing the reliance on imported intermediate items in Turkish export products will enhance the direct connection between exports and economic growth.