Trade Intensity Research Articles

The Trade Growth under the EU–SADC Economic Partnership Agreement: An Empirical Assessment

The objective of this paper is an ex-post evaluation of the European Union–Southern African Development Community Economic Partnership Agreement (EU–SADC EPA) stemming from changes in trade flows from the six members of the SADC (Botswana, Eswatini, Lesotho, Mozambique, Namibia, and South Africa) to the European Union (EU). The analysis uses detailed import and tariff data at the Harmonized System 6-digit level (HS-6) and provides estimates of the changes in the intensive and extensive margins of trade resulting from tariff reductions, as a consequence of the EU–SADC EPA initiative. The impact on the intensity of trade is estimated using a Difference-in-Differences (DID) estimation, controlling for both country and product-level trade flows. The impact on the trade of new goods (the extensive margin) before and after the agreement is evaluated through a probit analysis. The results show that the EU–SADC EPA has a positive impact on the EU’s imports from the six members of the SADC, even if significant differences emerge among sectors and countries.

Peculiarities of the economic assessment of the development of the export potential of agricultural enterprises

The analysis of existing theoretical approaches shows that the problem of clarifying the essence and features of the formation of the export potential of agricultural enterprises remains insufficiently resolved, which significantly inhibits the development of methodological principles for their comprehensive assessment and management mechanisms for increasing international competitiveness on foreign markets. We consider the category "export potential" as a business process, which is divided into main stages (formation, development, management) and includes a sequence of certain stages (planning, regulation, organization, motivation, control). The novelty of the proposal lies in the assessment of the export potential of agricultural enterprises by calculating the system of indicators both at the level of individual economic entities of the agro-industrial complex (direct method) and with the help of national specialized and state bodies (indirect method) in compliance with important methodological principles. We suggest using the trade intensity index, which allows you to determine whether the value of trade between two countries is greater or less than one would expect. The trade complementarity index can provide useful information on the prospects for intra-regional trade. It indicates to what extent the counterparty's export profile matches or complements the partner's import profile. The economic evaluation of the export potential of agricultural enterprises allows to ensure the stable and effective functioning of economic entities in the structure of global economic relations and to determine the priorities of their development. The practical application of this methodology will allow to obtain a reliable assessment of the current situation in a specific sales market, to identify trends, problems and priorities of its development, as well as potential and competitive opportunities of the organization from the exit of agricultural enterprises to this agro-food segment. Taking into account the specificity of the subject of research, we suggest to evaluate the export potential of agricultural enterprises to use an integral methodology that allows to more accurately reflect the capabilities of the enterprise on the foreign market, with the help of indicators that are weighted in a certain way. In addition to the integral methodology for the purpose of assessing the export potential, we have proposed a method of export diagnostics of agricultural enterprises, which consists in evaluating the main functions of the enterprise, which determine its readiness for export activity. The advantage of the developed methodology is the availability of the information necessary for analysis, the simplicity of calculations, it more clearly and accurately reflects the level of export potential of a company that has been present on the foreign market for a long time, as it takes into account the opinion of third-party experts and the influence of internal and external factors. The main advantage of the developed technique is visual optimization. Data obtained as a result of the analysis of the complex methodology, which is much easier to perceive by the user.

Impact of Regional integration on Trade and Economic Cooperation – a key study of Georgia and Azerbaijan

The South Caucasus is a unique small and densely populated region in the southern part of the Caucasus. It consists of three independent states - Georgia, Azerbaijan and Armenia. Georgia is actively engaged in the Peaceful Neighborhood Initiative in the South Caucasus and strives to deepen political and economic relations with the countries in the region based on sovereign interests. In these processes, strengthening mutually beneficial, trust-based cooperation with the Republic of Azerbaijan is of special interest to Georgia. After the collapse of the Union of Soviet Socialist Republics (USSR) and the regaining of independence by Georgia and Azerbaijan, a completely new phase of diplomatic relations began between the two countries which grew into a strategic partnership. Territorial proximity and the establishment of diplomatic relations have prompted the dynamic development of trade and economic relations between the two countries, which increases the degree of urgency of the study. The presented paper focuses on the priority areas of trade and economic cooperation between Georgia and Azerbaijan. However, at the present stage economics and politics are so closely interrelated that it is impossible to draw a line between them. Therefore, in order to achieve the purpose of the paper, the first chapter focuses on the development of diplomatic relations between the two countries, while the following chapters study trade and economic cooperation between Georgia and Azerbaijan and analyze the development of bilateral cooperation in trade in services; in addition, the trade intensity index is calculated; the importance of investments from Azerbaijan in the Georgian economy is assessed; the transnational energy and transport projects proposed by the Georgian and Azerbaijani governments are discussed; and the growing role of Georgia as trade and transport hub in the Caucasus in both the offshore and onshore components of these projects is assessed. It is noted that trade and economic relations have growing dynamics and show readiness to further develop cooperation. In addition, some suggestions that will be helpful for Georgia to increase the scale of cooperation with Azerbaijan and assist deepening the involvement of the two countries in the world integration processes are proposed. We believe that the paper will enhance further research and discussion on trade and economic cooperation between Georgia and Azerbaijan and, most importantly, ensure support for this kind of cooperation.

Origins and Distribution of Hellenistic and Late Republican Transport Amphorae in the Dalmatian Region and its Implications for Adriatic Trade and Economy

The presence of Hellenistic and Late Republican transport amphorae at numerous sites along the Adriatic and within shipwrecks off the coast indicates that intense trade and/or exchange in commodities such as olive oil and wine took place in this region from the fourth until the first century BC. The details of this commercial activity are nevertheless unclear in terms of the sources, destinations, and routes via which transport containers and their contents were circulated. The present study brings compositional data to bear on this topic by analysing petrographically and geochemically 248 amphorae sherds from 15 sites along the Dalmatian coast of present-day Croatia, including production sites, places of consumption, and shipwrecks. This revealed the existence of several larger amphora workshops whose amphorae were used to export goods to Dalmatia during the fourth and third centuries BC. They were involved in direct trade or through intermediaries in the redistribution centres. In the second and first centuries BC, only one workshop supplied amphorae in the region, which is probably the Dalmatian town of Issa. Aspects of the regional and inter-regional distribution and redistribution of amphorae from these workshops have been reconstructed, as well as changes within the trading system over time.

URGENSI KESELAMATAN NAVIGASI PADA PENGANGKUTAN KOMODITAS DI JALUR PELAYARAN DI KAWASAN ASIA-PASIFIK

This research aims to analyze the urgency of safety navigation procedures which play an important role in ensuring the safety of life at sea. Then, the author also analyzes the components of safety navigation procedures that have important role in the shipping sector in the Asia-Pacific Region. Where the level of intensity of shipping and international trade in the area is very high. This is normative research with a perspective using primary and secondary legal materials. The technique of collecting legal materials is a literature study which is equipped with a deduction technique to analyze the material. The results show that there are twelve navigation safety procedures that play an important role in ensuring the safety of life at sea. Where navigation safety procedures need to be understood, regulated, and further improved to improve efficiency, security and shipping safety. Therefore, navigational safety plays a very vital role in the field of transporting commodities at sea, especially in shipping lanes in the Asia-Pacific Region.

The Competitive Position of Poland in Bio-Based Products Trade on the European Union Market

Theoretical background: The strategies for the development of the European Union presented at the beginning of the new century portrayed bioeconomy as a modern concept of ensuring the sustainable and dynamic development of EU member states and bioeconomy itself became an important area of interest to the EU authorities. At present, the development of bioeconomy is a significant element of implementing the economic development strategies of respective EU member states. Purpose of the article: This article aimed to examine the international competitive position of Poland in the bio-based products trade on the common EU market in comparison to other member states of the EU. Research methods: The competitive position in bio-based products trade was evaluated based on the following indicators: balance of trade, Poland’s share in EU exports and imports, trade coverage ratio, import penetration ratio, relative export orientation ratio, intra-industry trade intensity ratio, and export specialisation index. Groups of bio-based products identified based on an official classification of products according to CPA, version 2.1, consistent with NACE. The analysis was based on data derived from the Eurostat database for the years 2008–2017. Main findings: The surveys imply that in 2008–2017, the competitive position of Poland improved mostly in the Forestry, Wood products, Paper and paper products, and Food sector, and in particular in the Tobacco products sector, which has been in line with the bioeconomy development strategy of the European Union.

Competitiveness of Indonesian ginger exports to Japan, Malaysia, and The United States

The purpose of this study was to determine the competitiveness of Indonesian ginger in Japan, Malaysia, and the United States by analyzing the level of competitiveness, competitiveness position, and concentration of Indonesian ginger exports to Japan, Malaysia, and the United States. The research method used is the descriptive quantitative method. The period under study is 2012–2019, or eight years. The data analysis methods used are Revealed Comparative Advantage (RCA), Trade Specialization Index (ISP), and Market Concentration Index (IKP). The results of the RCA analysis of the competitiveness of Indonesian ginger exports to Japan, Malaysia, and the United States in 2012–2019 have comparative competitiveness 1. The average RCA scores were Japan (0.20), Malaysia (0.95), and the United States (0.07), respectively. In terms of competitiveness, Indonesia is an exporter country because ISPs have an average ISP value, namely Japan (0.93) in the maturation stage, Malaysia (0.61) in the expansion stage, and the United States (1.0) in the maturation stage. For market concentration, Indonesia has a relatively low IKP value, namely Japan (0.000024), Malaysia (0.000132), and the United States (0.000002), with a trade intensity value of (0-1).

Transportation gateways and trade: how accessibility to the border shapes the spatial concentration of commerce

ABSTRACT Based on a micro-founded gravity equation and resorting to a new database of interregional trade flows within European Union countries, we study the asymmetric concentration of inflows in importing regions when exports come from regions with different geographical advantages in terms of their accessibility to the international border. As a case study we consider the Spanish–French border characterized by two distinct coastal gateways that funnel most road freight. Differentiating between domestic and international distances we conclude that the intensity of trade depends on the relative accessibility to the transportation network. We perform robustness checks for different sectors, and multimodal and re-exporting schemes.

AN ANALYSIS OF INDIAS TRADE INTENSITY INDEX WITH UAE

Today no country on the earth (planet) is completely independent on its own resources. Every one of the countries of the world are some way or another associated on others, in light of the fact that each country has its own normal assets, environment, geological circumstances and wellsprings of energy. Worldwide relationship is the principal element of the present worldwide economy. Exchanging commodities among India and UAE have existed since antiquated times. Indo-UAE exchange has filled massively as of late. Numerous factual exchange lists are accessible to gauge exchange between two nations. One of them is the International Trade. The International Tradeshows up in two structures, namely exports and imports list. A couple of studies have done to investigate complexities of the International trade connection between the two nations. Under such situation this paper examines the significant patterns of International Trade Relations.. An endeavor is made here to look at the Indias Trade Intensity with UAE for the period from 2012 to 2021. The paper likewise proposes measures to enhance International trade relations among India and UAE. Time series information has been utilized to quantify Trade Intensity Index (TII). The discoveries of the review uncover that Indias exchange with UAE is more extraordinary in examination with its other exchanging accomplices.

Competitiveness and complementarity of agricultural products between Thailand and China on a short-term basis

China and Thailand belong to Regional Comprehensive Economic Partnership countries, and agricultural trade is vital to Thailand’s economy. Competition in agricultural trade between countries is fierce. Therefore, it is crucial to understand the advantages and disadvantages of agricultural trade between Thailand and China. Complementarity and competitiveness of international business show the benefits and drawbacks of cross-border exports and the trend of future exports. This study uses quantitative techniques to analyze the agricultural trade between Thailand and China. It employed four methods, including the calculations of the Grubel-Lloyd index, revealed comparative advantage index (RCA), trade intensity index (TII), and trade complementarity index (TCI). The result of method 1 indicates that Thailand’s agricultural trade has a more substantial competitive advantage (three years average RCA = 1.69 > 1.25) than China (three years average RCA = 0.37 < 0.8) from 2017 to 2019; they are complementary in specific categories of agricultural products. The result of method 2 indicates that items 03, 07, 13, and 14 of China’s exports and Thailand’s imports have strong complementarity. Items 10, 11, 17, and 19 of Thailand’s exports and China’s imports have strong complementarity. The result of method 3 indicates that the positive factor on bilateral trade flow is significant. The result of method 4 indicates that items 06, 07, 12, 19, 20, and 21 have advantages in intra-industry trade, and items 09, 10, 13, and 18 have advantages in inter-industry trade. The paper has important implications for Thailand’s government to formulate relevant trade policies to enhance its agricultural export competitiveness, which is also conducive to developing bilateral agricultural trade.

Does intra-industry specialisation enhance or limit comparative advantage? Evidence from the world citrus fruit trade

In this paper, we aim to identify the intensity and nature of intra-industry specialisation in the global trade in citrus fruits. We used data from the United Nations Comtrade database. We performed both static and dynamic assessments of the intensity of intra-industry trade (IIT) by using the traditional Grubel-Lloyd index and the marginal IIT (MIIT) index, respectively. We also separated IIT into horizontal and vertical trade, and we verified the relationship between changes in the intra-industry pattern of trade and the level of comparative advantage gained by the largest producers and exporters of citrus fruits in the world. We used the revealed symmetric comparative advantage (RSCA) index to evaluate the level of international competitiveness. Conducting these analyses allowed us to fill the existing research gap by identifying the nature of IIT in products with specific quality characteristics but at a lower processing stage. The study's results indicated that the stronger the IIT or the more intensive shifts toward deepening the intra-industry specialisation, the lesser the comparative advantage of a country in the global export of citrus fruits. Nevertheless, the increased intensity of intra-industry specialisation does not always lead to a deterioration in the value of the trade balance.

Trade Flow among Association of South-East Asian Nations (ASEAN) Countries: A Trade Intensity Approach

This paper features the integration of trade among five founding member countries of ASEAN during the period 2001-2019. To measure the trade relations between two countries, a variety of statistical indicators are available, but in this paper trade intensity index is applied. As a general rule, when a country’s trade intensity index of imports and exports is observed to be more than one with the trading partner, then it indicates a high degree of trade association between them. The empirical results signify that the pair-wise export and import intensity index of these countries is greater than one, suggesting significant trade among the member countries. The study has many policy implications. Although the trade intensity index is greater than one for all counties, the value varies, signifying the under-developed bilateral trade areas among the region which need to be focused. Further, the regional and cultural differences should be coped up to accelerate the trade in the region.

Trade and factor intensity, and the transmission of the global shock to labor: A panel analysis of the fall of the labor income share in the Mexican manufacturing sector

The paper studies the fall of the labor income share in Mexico, contrasting the role of trade and factor intensity as transmission channels of the China shock of 2001. It finds that, while the skill, technological and —more surprisingly— trade intensity of Mexican industries were largely irrelevant, capital intensity played a key role: in particular, the higher was the industries’ initial capital intensity, the more vulnerable they were to the transmission of the global shock to labor. The finding is consistent with the proposition that industrial integration, concentrated in industries that are capital-intensive from the perspective of developing countries, facilitated the transmission of the shock. Results come from the estimation of panel equations for the annual change in the labor share across Mexican manufacturing industries, where transmission is measured by the correlation between changes in the United States and Mexican industry labor shares.

Analysis of Output and Employment of Trade and Finance in India: A Case of Disproportional Rise in Output than Employment for Service Sector

Purpose of the study: The study aims to analyse why the service sector in India has not generated employment in the proportion of output when the sector has geared up its share in national income since 1980.
 Methodology: It's based on a simple comparative empirical analysis of data on output and employment of trade and finance in India. Quantitative analysis of output is based on data collected from National Accounts Statistics (NAS). The analysis used data from the base year 2004-05 and back series. On the 2004-05 back series, data is available till the year 2011-12. Therefore, to explain long periods, 1950 to 2012, we used 2004-05 data. However, for the latest analysis of output along with employment, we prefer to use the 2011-12 series GDP data of KLEMS India (published by RBI).
 Employment data is collected primarily from two sources- NSS and KLEMS India. Principal status and subsidiary status (PS+SS) are used for analysis. 
 Main Findings: Trade being a labour-intensive sector has shown proportionate employment generation between 1980 to 2004. After 2004, the story changed. Despite the same pace of growth, employment generation is proportionately lower. The reason is the growing rise in the capital intensity of trade. In the case of finance, capital-intensive is just the opposite of trade- the rise in output is greater in the period, 1980 to 2004 than the concomitant rise in employment. 2004 onwards, rise in employment is greater. The reason is no significant rise in capital intensity in the sector.
 Applications of the study:In macroeconomics, output and employment believed to go hand in hand. However, services defy the dictum- higher rise in GDP share but no corresponding rise in employment share. It helps understand ‘jobless growth’ of Indian economy after reforms of 1991.
 Novelty/Originality of the study: Trade being labour-intensive has changed its nature after 2004, the sector’s capital intensity has grown faster than finance. Further, finance is capital-intensive sector but no significant rise in capital intensity.

Decomposing the effect of trade on environment: a case study of Pakistan.

Using time-series data from 1984 to 2019, the study examines the vigorous trade-environment relation in Pakistan. Pakistan is an interesting case study in which trade liberalization has expanded economic activity while also increasing environmental pollution during the last two decades. As a result, determining whether trade and industrial operations have contributed to environmental degradation is crucial. Our first goal is to look at how trade affects the environment in terms of scale, composition, and technique. The second step is to look into the pollution haven theory. The study uses a new approach to measuring trade openness called composite trade intensity, which differs from the traditional approach. The dynamic autoregressive distributed lag (ARDL) simulation framework, which was recently developed, was employed. The findings show that the scale impact raises CO2 emissions while the technique effect helps to lessen them, proving the existence of an environmental Kuznets curve (EKC) hypothesis. The composition impact contributes to increased pollution in the environment. Through the expansion of pollution-intensive export businesses, trade openness degrades environmental quality over the long as well as in the short term. The notion of a pollution hypothesis has also been proven. The quality of the environment deteriorates as a result of urbanization, whereas it improves as a result of good governance. Economic growth, trade openness, urbanization, and CO2 emissions have bidirectional causality, according to frequency domain causality findings. Based on our empirical findings, the study concludes that individual efforts, as well as collective efforts at the international level to reduce carbon emissions, are critical to solving the problem of environmental degradation and making the world a completely peaceful place.

Structural Evolution and Sustainability of Agricultural Trade between China and Countries along the “Belt and Road”

Enhancing trade in agricultural products between China and countries along the “Belt and Road” (B&R) will help strengthen China’s food security and promote global, sustainable economic development. Based on the agricultural trade data between China and B&R countries from 2001 to 2019, we used the TII index, the HHI index, and the social network analysis method to calculate the trade structure of agricultural products between China and B&R countries, in terms of plane structure and spatial network structure, and analyzed the influencing factors of their spatial network structure. The results show that China’s agricultural trade with B&R countries is highly concentrated in terms of regions and types, the import trade is decentralized, while the export trade is concentrated, and the regions with high trade intensity are mainly concentrated in the countries in close proximity. China’s agricultural trade network with B&R countries has become increasingly close, and China has a significant presence in trade networks. The trade network shows four major segments, and the internal and external trade of each segment has become increasingly close. Water resources, geographical location, transportation, trade agreements, and trade structure are the main influencing factors in the trade network between China and B&R countries. Our findings provide useful insights for informed decision-making in the development of international agricultural sustainable cooperation strategies.

Benchmarking strategic core competencies of performance across Chinese and South Korean manufacturing companies

PurposeThis study empirically investigates the significance of the core competencies on various economic performance indices by utilizing accounting and market-based performance in Chinese and South Korean leading manufacturing companies.Design/methodology/approachThis research employs a series of hierarchical regression models to test the hypotheses concerning the significance of R&D and export strategy on firms' performance.FindingsThis study finds that R&D intensity and foreign trade activities through export are most likely to be significantly associated with firm performance, particularly market-based performance, across the Chinese and South Korea manufacturing companies. The significance of other core strategic factors such as capital intensity, leverage, inventory turnover, labor productivity, administrative cost efficiency, and collection policy on performance was also contemplated.Originality/valueThe relationship between R&D and firm performance has been an interesting issue concerning the performance measures employed across different country settings. Research issues addressed in this paper relate to how R&D, and foreign trade by export influence firm performance across two diverse economic environments inherent of Chinese and South Korean leading manufacturing firms. Particularly, this study explores the directions and magnitudes of the operational and strategic relationships between key strategic factors, such as R&D intensity, export by foreign trade, and the firm's economic and market-based performance.

Daya Saing Ekspor Lada Indonesia ke Amerika Serikat

iThis study aims to determine the competitiveness of Indonesian pepper to the United States, namely to analyze the level of competitiveness, competitiveness position, market concentration of Indonesian pepper exports to the United States. The research used is descriptive quantitative. The research data is the export value and total exports of Indonesian pepper to the United States in 2010-2019. The data used was obtained from the official website of the Food and Agriculture Organization, United Nation Commodity Trade Statistics, the Central Bureau of Statistics, the Directorate General of Plantations and the Ministry of Trade. The results indicate that the RCA for the competitiveness of pepper exports in 2010-2019 has an average value of 30.54 per year, means that Indonesia has a comparative competitiveness of >1. For competitive competitiveness or ECI has experienced a decline in competitive competitiveness because it has an average of 0.94 per year <1. In terms of competitiveness, Indonesia is an exporter country because the ISP value shows an average value of 0.99 per year in the maturation stage. Indonesia has a low dependence on its own trading partner countries, this is indicated by Indonesia's low IKP value of 0.018 with a value of trade intensity (0-1).Keywords : Indonesian Pepper Exports 1, Revealed Comparative Advantage (RCA)2, Export Competitiveness Index (ECI)3, Trade Specialization Index (ISP) 4, Market Concentration Index (IKP) 5

Downstream Suppliers’ Business Cycle Co-movement in Asian Value Chains

This study assessed the bilateral business cycle co-movement between the individual downstream suppliers (Association of Southeast Asian Nations) and upstream supplier (China and Japan) in Asian value chain. The empirical findings suggest that trade intensity negatively impacted the regional business cycle co-movement, while trade linkage has positive impacts. Moreover, the impact of value chain trade on business cycle co-movement is more apparent in the short run than in the long run. JEL Classification: F15, F16

Aliens Coming by Ships: Distribution and Origins of the Ocellated Skink Populations in Peninsular Italy.

Simple SummaryCommercial routes are reported as the main cause of biological invasions. Particularly, naval trade may accidentally bring several species to new areas where they are not native. This is particularly evident for coastal areas, where most biological invasions occur. In our work, we reported, for the first time, the presence of the ocellated skink, native to the largest Italian islands (Sardinia, Sicily and surrounding islets in a port area of continental Central Italy). We collected several individuals of this alien population and we sampled them for molecular analyses, comparing them with those naturally occurring in Sardinia, Sicily and the Mediterranean basin, including individuals accidentally introduced to peninsular Southern Italy. Differently from what previously suggested, the nucleus in Portici (Southern Italy) may have originated from Sardinia. The intense cork trade and touristic traffic between Sardinia and Southern Tuscany may have been responsible for the introduction of this lizard also to Central Italy.The ocellated skink (Chalcides ocellatus) is a widespread lizard, naturally distributed between the Maghreb and coastal Pakistan, with few insular populations in the Mediterranean coastal area. Some populations of this species have also been recorded in peninsular Italy, Campania and Southern Tuscany due to accidental introductions via touristic and commercial routes. In this work, we conducted genetic analyses on mitochondrial DNA COXI, cytb and 16S mtDNA genes on a sample of Italian insular and peninsular populations. Differently from what previously suggested, the nucleus in Portici (Southern Italy) may have originated from Sardinia. The intense trade and touristic traffic between Sardinia and Southern Tuscany may have been responsible for the introduction of this lizard also to Central Italy.