Export-oriented Research Articles

The linkages between trade, financial openness, and economic growth in China: an ARDL-bound test approach

ABSTRACT This research examines the linkages between trade, financial openness, and economic growth in China from 1992 to 2021, using Granger causality analysis in the ECM model to identify the trend of a causal relationship between the variables. The results confirm the validity of export-led growth and the supply-leading hypotheses in China. Moreover, China’s broad money is output-oriented, and the significance of exports to China’s economy is supported by the influence of real income and imports caused by exports. Lastly, the research highlights that domestic credit expansion by the banking industry stimulates global trade growth; however, import changes cause broad money fluctuations. Policymakers can utilize these findings to identify the trend of the growth and development of the trade and financial industry of the economy, as there is substantial proof that a meaningful relationship is occurring between economic growth, trade, and the financial development sectors of the economy.

Third-Country Exchange Rate Volatility and Pakistan-China Trade at the Commodity Level

ABSTRACT This study examines the impact of exchange rate volatility on China-Pakistan trade flows from 1980 to 2020. Using data from 42 import industries and 34 export sectors, bilateral trade between China and Pakistan is analyzed, with the US as the third country. Cointegration analysis reveals a strong relationship between Pakistan-China trade flows and exchange rate volatility. The yuan/dollar exchange rate negatively affects 22 import and 24 export industries in Pakistan, while the rupee/dollar exchange rate negatively impacts 31 import and 17 export industries. Findings suggest that the exchange rate volatility of the third country hampers bilateral trade between Pakistan and China.

THE COMPETITIVE POSITION OF CONCENTRATED APPLE JUICE EXPORTED FROM POLAND

The objective of this research was to determine the competitive position of Concentrated Apple Juice (CAJ) exports from Poland in the years 2007-2022. The data used in this study were sourced from the Trade Map database (Trade statistics for international business development) and the Food and Agriculture Organization (FAO) of the United Nations (FAOSTAT). Global CAJ trade experienced a decline during this period. The average export volume from 2019 to 2022 amounted to 1.4 million tons, representing a 16% decrease compared to the average volume from 2007 to 2010. The major global CAJ exporters during the study period were China, Poland, and Turkey. China’s share in global CAJ exports decreased from 49% to 29%, while Poland’s share increased from 11% to 19%, and Turkey’s share rose from 2% to 11%. Additionally, Ukraine’s share increased from 2% to 6%, and Moldova’s share increased from 1% to 4%. The highest net export orientation ratios were observed for Moldova, Hungary, Poland, and Ukraine, all exceeding 40%. Throughout the study period, the competitive position of CAJ exports from Poland, Turkey, Ukraine, and Moldova improved, while China’s competitive position declined. This presents an opportunity for domestic producers due to the decreasing CAJ exports from China. However, there is also an increase in competitive pressure from other suppliers, primarily from Turkey, Ukraine, and Moldova.

Ensuring sustainable development of the metallurgical industry of the republic of belarus under sanctions in 2022

The article considers the results of OJSC “BSW – Management Company of Holding “BMC”, the largest metallurgical enterprise in the Republic of Belarus in 2022. It also presents market diversification and export orientation towards friendly markets. The article describes new types of products and achievements in the field of quality, as well as the functional and operational work of the enterprise’s personnel.

Determinants and Competitiveness of Rice Export in Tanzania: A Vector Error Correction Model

The rice export industry in Tanzania is seemingly performing poorly despite the country being the leading rice producer amongst the East African Community (EAC) member states. The extensive government interventions which have occurred in the industry and the existence of inward-looking trade policies such as the Common External Tariff within EAC would have resulted in increased rice exports especially, through the intra-regional trade, however this has remained more of an oratorical rather than practical attainment the reasons for which are not known with certainty. This paper is an attempt to fill this knowledge gap. The paper investigates the determinants of rice exports in Tanzania. Specifically, it examines the influence of price and non-price factors on rice exports and assesses the competitiveness of Tanzanian rice in the EAC export market. The paper uses secondary data obtained from government institutions and other international data repositories. The Vector Error Correction Model is used to capture the dynamics of rice export in Tanzania and the competitiveness of rice exported is assessed using the Revealed Comparative Advantage Model. The results show that real exchange rates, international rice prices, quantity produced and the average GDP per capita of the main importers of Tanzania rice in EAC were the key determinants of rice export performance though the commodity was found to be less competitive within the EAC and neighboring countries such as Zambia, Malawi and Mozambique which also import rice from Tanzanian. To improve rice export performance and enhance competitiveness, the country should increase production to take advantage of existing demand for rice from EAC countries and other neighboring countries.

The determinants of export performance: perceived psychic distance and its antecedents

PurposeThe Uppsala internationalization model is one of the widely accepted models for the development of exports. This model suggests that the explanation of relations between psychic distance, its antecedents and marketing mix adaptation would lead to successful export practices. Consequently, this study aims to determine the determinants of export performance, antecedents of psychic distance and marketing mix adaptation.Design/methodology/approachThis study uses a mixed-methods research design in which qualitative and quantitative research methods were used together. The face-to-face interview method was used to identify the psychic distance antecedents. The face-to-face interview was with eight Turkish exporting firms. Based on the data obtained from face-to-face interviews, a scale for measuring the antecedents of psychic distance has been developed and used in the quantitative study. The scales used for measuring marketing mix adaptation, export performance and psychic distance perception, which has both individual and country dimensions, were adapted from the literature. Data were collected from 221 Turkish exporting companies for quantitative research. Structural equation modeling was used to test relationships between the variables.FindingsAs a result of the data analysis of face-to-face interviews, six antecedents of psychic distance were determined. According to the subsequent quantitative research results, it has been determined that employee expertise, which is one of the antecedents of psychic distance, only affects the country dimension of psychic distance perception; the cooperation, institutionalization and international market experience affect both the country and individual dimensions of psychic distance perception. The country and individual dimensions of psychic distance were found to have an impact on the product, price, promotion and distribution dimensions of marketing mix adaptation. Only the product dimension of marketing mix adaption was found to affect export performance.Practical implicationsThis study offers a comprehensive perspective for both theoretical and practical studies by discussing various aspects that would help improve the exporting activities of firms within the scope of antecedents of perceived psychic distance.Originality/valueIn this research, a scale was developed for measuring the antecedents of psychic distance, and the variables affecting export performance were analyzed holistically.

Developing a welfare assessment protocol for Australian lot-fed cattle

Lot feeding of cattle has gained momentum in recent years to improve efficiency in meeting market demands for high quality protein. Concurrently, societal concern for the welfare of animals raised in intensive farming systems has increased. Thus, the reporting of animal health and welfare measures is a key goal for the Australian cattle lot-fed industry. Although feedlots vary in location, climate, capacity, cattle genotype, and feeding programs, many welfare concerns are applicable across the industry. Despite this, no recognised standardised animal welfare assessment protocol exists for the Australian lot-fed industry. This study aimed to identify relevant measures to develop an assessment protocol, by identifying key welfare issues and their relevant measures, considering the validity, reliability, and practicality of each when applied to the feedlot context. An advisory model was derived after reviewing the relevant literature and five international protocols for the assessment of beef cattle (Welfare Quality®, AssureWel, US Beef Quality Assurance assessment tool, Canadian Feedlot Animal Care Assessment program, and an Australian Live Export industry protocol), followed by stakeholder consultation. A total of 109 measures were evaluated, with 99 environmental-, management-, resource- and animal-based measures being proposed. Piloting of the protocol on commercial feedlots will enable further refinement and validation, to provide an evidence-based, practical protocol to facilitate standardised monitoring of cattle welfare. Such a protocol could promote continued advances in animal welfare at a feedlot level and support a sustainable industry by addressing societal concerns.

Theoretical Underpinnings of ‘Land Abundance, Openness, and Industrialization’

AbstractThis paper develops a Heckscher−Ohlin model in which the effects on production structure of endowments and changes in trade policies depend in a continuous way on a country's degree of openness to trade. Its main contribution is to show semi-formally how the introduction of product differentiation causes the elasticities of output with respect both to factor endowments and to sectoral trade barriers to vary with import penetration (the share of foreign firms in home markets) and export orientation (the share of foreign markets in home-firm sales).

Looking at the production chains from the uneven and combined development perspective: the Egyptian Qualified Industrial Zones Agreement

In the neoliberal era, the export-oriented industrialisation strategy has been promoted for its potential to transform the industry into an engine of growth for the rest of the economy. For this purpose, all developing economies are encouraged to join supply chains in order to upgrade their position in the hierarchical division of labour in the world economy. On the other hand, this has always been a thorny issue for the Southern economies. This paper investigates the Qualified Industrial Zones (QIZs) Agreement concluded between Egypt, Israel and the United States in 2004, critically analysing the outputs of the export-oriented industrialisation model. In its analysis, the study relies on dialogues between the production chain literature and the uneven and combined development perspective. In this context, it claims that the factors endogenous to global capitalism, like low wages and massive labour reserves, play an important role in determining Egypt’s role in the Agreement. Likewise, participating in production chains does have a further polarising effect on global inequalities. Accordingly, the Agreement charges Egypt in line with its position in the global economy, and the Egyptian textile industry articulates to the world market as a source of cheap labour.

Impact of foreign direct investment on the exports of five major sectors of Pakistan’s economy: A governance perspective

This study investigates and analyses empirically the impact of Foreign Direct Investment (FDI) inflows on the exports for a panel series of five large-scale manufacturing industries of Pakistan during the period 2000-2020. For this purpose, we establish export production function as based on endogenous growth theory in which role of FDI is considered as additional determinant of export. The Pedroni residual-based co-integration test and Error Correction Model (ECM) are applied for the long and short-run relationships. Pedroni residual based approach highlighted that human capitals, domestic capitals, foreign direct investments, exports, and domestic sales are co-integrated in the long run. According to results of ECM, coefficient of FDI appears to have statistical significant impact on exports and has a positive sign in the long run. Whereas, FDI does not contribute to export growth in the short run but it takes time to influence the growth patterns of the sector. On the basis of theoretical notion of endogenous growth theory, long-run coefficient of FDI may be interpreted as evidence in favour of the hypotheses that FDI has an impact on exports via export development. Thus, it can be concluded that “FDI-based endogenous growth theory” is valid in the case of Pakistan.

Analysis of Non-Oil Exports – Economic Growth Relationship in Nigeria: The Role of Institutional Qualities

ABSTRACT: One of the primary policy issues over the years in the context of the Nigerian economy has been how to enhance the performance of the non-oil export sector of the economy in order to diversify the country's export base and contribute more to GDP (gross domestic product). Rather than a lack of policy initiatives, the noticeably abysmal performance of Nigerian non-oil exports has been increasingly attributed to poor policy implementation. However, the question of whether such poor implementation is due to the quality of institutional settings, particularly in a developing economy such as Nigeria, has been largely unexplored. To the best of our knowledge, none of the previous studies deemed it necessary to control for the role of institutional quality in the non-oil export-growth nexus from the perspective of the Nigerian economy. To bridge this important gap in the literature, we hypothesize that institutional qualities matter in the relationship between economic growth and non-oil exports. Motivated by a desire to diversify Nigeria's economy away from its reliance on oil exports, this study re-examines the export-led growth hypothesis from the standpoint of non-oil exports while accounting for the role of institutional qualities. We employ the ARDL estimation technique as the best econometric model for the study given its suitability for variables of mixed order of integration in terms of the series' stationarity. More so, the ARDL technique enables us to simultaneously capture both the short-run and long-run dynamics of the nexus. Empirically, we show results that suggest that improved institutional qualities have the potential to boost the positive effects of non-oil exports on economic growth. We also find that the extent to which institutional quality matters for enhancing the effects of non-oil exports on economic growth depends on the institutional quality indicators chosen. On the whole, we expand on the export-led growth hypothesis by considering the role of institutional characteristics and conclude that improving institutional qualities should be prioritized in the path to Nigerian economic diversification.

ЗЕРНОВИЙ ЕКСПОРТ УКРАЇНИ В УМОВАХ ВІЙНИ

Досліджено шляхи і проблеми зернового експорту України в умовах війни. Основними шляхами відновлення експорту зерна є «смуги солідарності» Україна – ЄС і Чорноморська зернова ініціатива. Проте ці заходи лише частково вирішили проблему експорту зерна з України у 2022 – на початку 2023 р. У 2022 р. відбулося зменшення обсягів експорту українського зерна на 32,6 % порівняно з обсягами попереднього року. Повномасштабна воєнна агресія РФ проти України спричинила різке зростання світових цін на пшеницю, а започаткування «смуг солідарності» й морського зернового коридору посприяли їх суттєвому зниженню, зокрема на зерно. Проте вітчизняні виробники зерна і експортери не змогли скористатися зростанням світових цін на зерно у 2022 р. через збільшення транспортних видатків при перевезенні до портів, зростання маржі посередників з урахуванням ризиків воєнного часу, підвищення вартості фрахту суден тощо. Відповідні втрати в ціні зерна при експорті з України перекладаються по зерновому ціновому ланцюгу переважно на нижню його ланку – виробника зерна. Частка виробника (на умовах EXW) у експортній ціні пшениці 2-го класу зменшилася з 80 % на початку дії морського зернового коридору до 67 % при експорті морським зерновим коридором у лютому 2023 р. Серйозні ризики для повоєнного відновлення українського експорту зерна становлять процеси релокації торговельних потоків на традиційних ринках експорту зернових з Чорноморського регіону, пов’язані, насамперед, із заміщенням українського зерна російським. Розвитку українського зернового експорту сприяло б максимальне дистанціювання від РФ у торговельній політиці щодо експорту продукції у межах Чорноморського регіону за рахунок залучення до торговельних потоків Середземноморського регіону з використанням конвенції щодо правил походження Пан-Євро-Мед.

Domestic Lobbying for External Change: Textile Sector and Pakistan’s Entry into Generalised System of Preferences Plus

How do export-oriented factions influence trade policy? Export-oriented industries have incentives to expand trade, as doing so results in greater market access and higher profits. To achieve higher trade, such industries lobby policymakers through associations and interest groups that vie for policy influence. This paper suggests that such organization allows exporters to lobby governments at both the domestic and international levels. Domestically, exporters can take vocal positions on policy and pressure the government into concessions. Externally, exporters can placate opposition to their proposals by engaging in diplomacy and negotiation to finalize agreements. This paper uses Pakistan’s quest for Generalised System of Preferences Plus status with the European Union (EU) as an illustration of this mechanism. Influential domestic factions in Pakistan’s textile sector stood to benefit from preferential trading with the EU, and they successfully lobbied for favorable change in the country’s domestic policy and external relations. Evidence for this argument is presented using archival newspaper research from 2009 to 2013.

COĞRAFİ AĞIRLIKLI REGRESYON İLE YÜKSEK TEKNOLOJİ İHRACATININ MEKANSAL ANALİZİ

The development of High-Technology Exports (HTE) contributes to the increase of competitiveness and growth in national production, the development of commercial and economic cooperation with foreign countries, and the diversification of the economy. In addition, high technology exports reduce the current account deficit of the country's economy. Therefore, high-tech industries have become indispensable for economic development in a country. The aim of this study is to examine the existence of spatial (neighbourhood) relations of countries in high-technology exports. In this study, Exploratory Regression analysis was applied to determine the model that best explains HTE among the variables. Moran Index was used for spatial autocorrelation, Geographical Weighted Regression (GWR) method for spatial regression analysis, and Ordinary Least Squares (OLS) method, to compare with the GWR method. The GWR model established in this study showed that countries have a weak or strong spatial relationship with their neighboring countries in terms of HTE. It has been observed that this spatial relationship is strong in the countries neighboring China, which ranks first in HTE, while the spatial relationship is weak in countries where HTE is low.

The Effect of Carbon Sink Afforestation Projects on China’s Forest Product Export Trade: Empirical Evidence from Chinese Microenterprises

Forestry carbon sinks are an important measure for enabling China to cope with global climate change and realize its “double carbon” goal. Carbon sink afforestation projects (CSAPs) are a type of forestry carbon sink projects, and the question of whether China’s forest products with an export orientation can adapt to the requirements of high-quality development is important for balancing the relationship between emissions reduction and development. We use the micro-data of forest product export enterprises provided by the China Customs Database and construct a difference-in-difference (DID) model to investigate the impact of CSAPs on China’s forest product export and its heterogeneity. The results show that CSAPs significantly increase the export scale of China’s forest products. CSAPs lead to significant heterogeneity regarding the forest product export scale in relation to regions, production factor intensity, trade pattern, enterprise ownership, and export destination countries. We further find that although the implementation of CSAPs significantly reduces the export types of forest products, it significantly promotes an increase in the export price and the expansion of the export quantity of forest products, and it optimizes the export structure of forest products to some extent. The “Belt and Road” initiative (BRI) has played a significant positive role in regulating the expansion of the forest product export scale with CSAPs. The implementation of CSAPs reduces the risk of termination of trade relations among forest product export enterprises and extends the export duration. The conclusions provide implications for policy makers and managers of forest product enterprises.

Maritime accidents affect the environment

This paper highlights the effects of transport accidents on the environment, specifically those occurring in maritime transportation. International trading and shipping are important for several reasons. International trade and shipping facilitate the movement of goods and services between countries, contributing to economic growth and development. It allows countries to access resources, products, and markets they might not have domestically, thus expanding their economic potential. Not all countries possess the same resources or expertise. International trade enables countries to specialise in producing goods and services where they have a comparative advantage, leading to more efficient resource allocation and increased productivity. International trade provides consumers access to various goods and services at different prices. This enhances consumer choice and allows people to enjoy products that may not be available or affordable domestically. International trade fosters competition among businesses, driving them to innovate, improve quality, and reduce costs to stay competitive in the global marketplace. This benefits consumers through better products and lower prices. Export-oriented industries create jobs as they expand to meet global demand. These jobs often have higher wages due to the specialised skills required. International trade generates foreign exchange earnings for a country, which can be used to pay for imports, service foreign debt, and invest in other countries. A positive balance of payments is crucial for a stable economy. Trade exposes people to different cultures by exchanging goods, services, and ideas. This fosters greater understanding and co-operation among nations. Dependence on a single industry or market can be risky. International trade allows countries to diversify economies and reduce vulnerability to economic shocks. Shipping and transportation networks required for international trade often lead to improvements in infrastructure, including ports, roads, railways, and communication systems. These improvements benefit not only trade but also local communities. Trade can facilitate the transfer of technology, know-how, and best practices between countries. This helps less developed countries to catch up and develop more quickly. While shipping contributes to global carbon emissions, it also promotes energy-efficient practices through demand for cleaner and more sustainable transport options. In summary, international trading and shipping are essential drivers of economic growth, job creation, innovation, and cultural exchange, fostering co-operation and stability between nations while promoting efficient resource utilisation and diversification. The author performed a detailed statistical analysis based on the accident database. It explains the impacts on the environment and some remedies for it.

Artificial Intelligence and Sensor Technologies in Dairy Livestock Export: Charting a Digital Transformation.

This technical note critically evaluates the transformative potential of Artificial Intelligence (AI) and sensor technologies in the swiftly evolving dairy livestock export industry. We focus on the novel application of the Internet of Things (IoT) in long-distance livestock transportation, particularly in livestock enumeration and identification for precise traceability. Technological advancements in identifying behavioral patterns in 'shy feeder' cows and real-time weight monitoring enhance the accuracy of long-haul livestock transportation. These innovations offer benefits such as improved animal welfare standards, reduced supply chain inaccuracies, and increased operational productivity, expanding market access and enhancing global competitiveness. However, these technologies present challenges, including individual animal customization, economic analysis, data security, privacy, technological adaptability, training, stakeholder engagement, and sustainability concerns. These challenges intertwine with broader ethical considerations around animal treatment, data misuse, and the environmental impacts. By providing a strategic framework for successful technology integration, we emphasize the importance of continuous adaptation and learning. This note underscores the potential of AI, IoT, and sensor technologies to shape the future of the dairy livestock export industry, contributing to a more sustainable and efficient global dairy sector.

Potential Domestic Energy System Vulnerabilities from Major Exports of Green Hydrogen: A Case Study of Australia

Australia has clear aspirations to become a major global exporter of hydrogen as a replacement for fossil fuels and as part of the drive to reduce CO2 emissions, as set out in the National Hydrogen Strategy released in 2019 jointly by the federal and state governments. In 2021, the Australian Energy Market Operator specified a grid forecast scenario for the first time entitled “hydrogen superpower”. Not only does Australia hope to capitalise on the emerging demand for zero-carbon hydrogen in places like Japan and South Korea by establishing a new export industry, but it also needs to mitigate the built-in carbon risk of its export revenue from coal and LNG as major customers, such as Japan and South Korea, move to decarbonise their energy systems. This places hydrogen at the nexus of energy, climate change mitigation and economic growth, with implications for energy security. Much of the published literature on this topic concentrates on the details of what being a major hydrogen exporter will look like and what steps will need to be taken to achieve it. However, there appears to be a gap in the study of the implications for Australia’s domestic energy system in terms of energy security and export economic vulnerability. The objective of this paper is to develop a conceptual framework for the implications of becoming a major hydrogen exporter on Australia’s energy system. Various green hydrogen export scenarios for Australia were compared, and the most recent and comprehensive was selected as the basis for further examination for domestic energy system impacts. In this scenario, 248.5 GW of new renewable electricity generation capacity was estimated to be required by 2050 to produce the additional 867 TWh required for an electrolyser output of 2088 PJ of green hydrogen for export, which will comprise 55.9% of Australia’s total electricity demand at that time. The characteristics of comparative export-oriented resources and their interactions with the domestic economy and energy system are then examined through the lens of the resource curse hypothesis, and the LNG and aluminium industries. These existing resource export frameworks are reviewed for applicability of specific factors to export-oriented green hydrogen production, with applicable factors then compiled into a novel conceptual framework for exporter domestic implications from large-scale exports of green hydrogen. The green hydrogen export superpower (2050) scenario is then quantitatively assessed using the established indicators for energy exporter vulnerability and domestic energy security, comparing it to Australia’s 2019 energy exports profile. This assessment finds that in almost all factors, exporter vulnerability is reduced, and domestic energy security is enhanced by the transition from fossil fuel exports to green hydrogen, with the exception of an increase in exposure of the domestic energy system to international market forces.

Обеспечение продовольственной безопасности Российской Федерации на основе развития производства и экспорта сои

The article presents the results of a study of the issues of ensuring food security of the Russian Federation based on the development of production and export of soybeans. Data on soybean sown areas in the regions of the Russian Federation in 2020 are presented. Data on soybean imports to the Russian Federation are analyzed.

Export Potential and Competitiveness of Processed Food Products from India

The liberalization of trade and India's accession to the World Trade Organization (WTO) have brought about significant changes in India's agricultural trade and food processing industry. This study aims to evaluate the export competitiveness of processed food products from India by analyzing their comparative advantage and export potential over a specified time period.
 The study utilizes secondary data from sources such as the Agricultural and Processed Food Products Export Development Authority (APEDA), Food and Agricultural Organization (FAO), and International Trade Centre (ITC) for the analysis. The selection of processed food products is based on the major processed food products exported by food processing industries in Gujarat. Analytical tools employed are compound annual growth rate (CAGR), revealed comparative advantage (RCA), and nominal protection coefficient (NPC). These tools help assess growth rates, comparative advantage, and competitiveness of the selected commodities with the data on export potential Provided by ITC.
 The study highlights the export potential and unrealized potential of processed foods which is more than 7.9 billion dollars and 4.5 billion dollars respectively. Among the selected commodities the food preparations with HS code 210690 are observed to have the highest potential. The analysis identifies the largest unrealized potential was in countries such as the United States, Saudi Arabia, China, and UAE for many of the selected processed food products. It was also observed in the export performance of selected processed foods for the last 10 years, with notable growth rates observed in miscellaneous preparations and bread, pastry, and other baked foods. This study concludes by highlighting the Potential of selected food products and also shows the presence of competitive advantage of selected foods in the USA, UAE, UK, Australia, and Saudi Arabia. It highlights the opportunities for manufacturers to expand their exports, capitalize on untapped market potential, and enhance their business growth.