International Economic System Research Articles

Surface-Level Analysis of International Economic Agreements and Their Strangulatory Impact on Pakistan Economy

The international economic system that evolved after World War II, which was conceived by and rolled out on behalf of Global North states, essentially stood on a tripod of international economic agreements, that is, International Investment Agreements, Double Taxation Agreements, and International Trade Agreements. The ostensible purpose of these agreements was to (a) facilitate cross-border deployment of surplus investible capital, (b) export of finished and capital goods, and (c) allocate favorably taxing rights between states on various incomes earned by multinational enterprises in overseas jurisdictions. Intuitively, when these agreements are signed by and between states at par level of economic development, their resultant economic outcomes would be equal or near-equal. But when such agreements are signed in asymmetrical bilateral economic settings, that is, between a developed and a developing country, the resultant economic outcomes would most likely be lopsided and inimical to the economic interests of weaker partner in the equation. From the global south perspective, these agreements expose developing countries to international arbitration on account of suits filed by investors, erode their tax base by allowing multinational corporations to enter aggressive tax planning ploys, and undermine their export competitiveness vis-à-vis stronger economies. The paper premises that developing countries that signed more of these agreements, would find themselves in a deeper trouble than those which signed less of them, and that countries that signed the agreements in a quicker span of time, got into trouble quicker, too. In this connection, Pakistan is brought in to undertake a surface-level time-series analysis of its signing agreements and the corresponding trajectory of select economic indicators over the past seven decades.

THE ISSUES OF SCOPE AND LEGAL STATUS IN WTO – IMF CONSULTATIONS

In designing the international economic governance system after the Second World War, trade and finance, due to the close connection between them, were addressed as parts of a whole. A predictable and stable international monetary system was recognized as prerequisite for healthy and sustainable trade. However, these two issues were regulated under different institutional structures, by envisaging close cooperation and coordination. The International Monetary Fund (IMF), designed to be responsible for international finance and monetary issues, was established in 1944. The International Trade Organization (ITO) was designed to address international trade, while the General Agreement on Tariffs and Trade (GATT), with a limited scope, was temporarily put into implementation in January 1, 1948 to provide rapid tariff reductions until the ratification of ITO Charter. The ITO became still-born as it was not approved by national parliaments, especially the USA, and international trade continued to be regulated by the GATT. The GATT, with its unique organizational structure that gradually developed, continued its existence until the establishment of the World Trade Organization (WTO) in 1995 and hosted international trade negotiations. WTO, with more advanced legal and institutional structure, took over the functions of the GATT. Formal consultation procedures have constituted an important part of the cooperation between the GATT/WTO and the IMF in the context of the management of international trade and monetary/financial system. These procedures differ from traditional cooperation activities between international organizations and have a special character. It is regulated in a binding language as an obligation for the relevant WTO bodies to apply for consultations with the IMF on certain issues and to comply with the inputs received from the IMF. There are some points open to interpretation regarding the scope of the consultations and the binding and functional status of IMF inputs in the WTO. This study discusses the issues of scope and legal status.

The influence of trade war on the international economic system and its adjustment measures

This paper discusses the influence of trade war on the international economic system and the corresponding adjustment measures. First of all, the trade war has had a negative impact on global economic growth, investment flows, international trade patterns and financial market fluctuations. Secondly, the trade war has caused international investment problems, which has led to the adjustment of the supply chain of multinational companies and the increase of investment uncertainty. Then, the financial market fluctuated and the currency, stock and bond markets were disturbed. Finally, by strengthening international cooperation, promoting trade multilateralism, lowering trade barriers and paying attention to sustainable development, we can meet the challenges brought by trade wars and look forward to establishing a more stable and sustainable international economic system in the future.

ГЛОБАЛЬНІ ТРЕНДИ СТРУКТУРИЗАЦІЇ СВІТОВОГО РИНКУ НАНОТЕХНОЛОГІЙ

The article examines the current issues of global trends in the structuring of the world market of nanotechnology, and notes the rapid increase in the capitalization of the nanotechnology segment of the world market. The steady increase in the scale of the involvement of nanotechnology and nanomaterials in the world economy was noted both at the level of its individual sectors and intersectoral and territorial-spatial complexes, which generates powerful synergistic and cumulative effects of the development of the international economic system and its transfer to a qualitatively higher level of technological development. It is well-founded that nanotechnologies in the coming decades will not only determine the resource security of many countries of the world, but will also establish qualitatively new parameters of their international competitiveness and stratification by the level of scientific, technical and innovative development. It has been proven that the world market of nanotechnology, against the background of high growth rates of its capitalization in the last decade, is characterized by deep structural asymmetries. The global trend of the structuring of the world nanotechnology market has been updated, which consists in the growth of business sector costs for research and development in the field of nanotechnology. It has been proven that a notable feature of scientific research in the field of nanotechnological developments is the rapid dynamization of international co-authorship ties in publishing activities. It has been confirmed that the rapid structural dynamics of the nanotechnology segment of the global market in the last two decades fundamentally transforms the world production system based on the significant expansion of technological platforms for national industrial sectors, the field of biomedicine and ecology. These transformative shifts are caused primarily by broad opportunities for manipulation at the basic level of organization of atoms and molecules of substances, active development of transdisciplinary scientific research, deep convergence of science and education, engineering and technological systems.

Reformation of the Iraqi legal system by the Coalition Provisional Authority after 2003 as an attempt towards WTO affiliation

The World Trade Organization (WTO) plays an important role in the establishment of trade relations between its member nations through multilateral international trade agreements, which are considered an important source of international law that regulate commercial transactions, and reduce impediments to international trade among its members. Therefore, countries that are yet to join this organization continually attempt to do so. Thus, it is not in Iraq’s interest to remain outside the scope of the organization. This analytical study investigates the role of the Coalition Provisional Authority after 2003 and the fall of the Baath regime in the reformation of the Iraqi law system, especially with regard to commercial laws and Iraq’s integration with the international economic system following its accession to the WTO. The article concludes that these Coalition-led amendments to Iraqi laws laid the legal foundations for the opening of the Iraqi market. It argues that despite the continuation of this approach and the amendment of laws by the Iraqi parliament and government, there remain some legal obstacles to Iraq’s accession to the WTO. The study also suggests the existence of laws that are yet to be passed or amended.

The Interaction between the Investment Behavior of Transnational Corporations and the International Political and Economic System

With the development of economic globalization and world modularization, more and more economic activities transcend national boundaries, making the connection between the organic economic whole formed through foreign trade, capital flow, technology transfer and other activities become closer. Transnational Corporations (TNCs) come into being in this context, making the global convergence trend of the economies of the world in production, distribution, exchange and consumption links more obvious. Because TNCs usually conduct economic activities in two or more countries, their strong economic power will inevitably affect the economic, political, cultural and social life of the country. On the one hand, the investment and business behavior of TNCs will have a series of effects on the local economy of the host country, and in some economic fields, TNCs can even interfere with the political order of the host country. On the other hand, in the process of globalization, transnational corporations themselves will also be affected by the international political and economic situation.

International Trade and Economic Growth in Nigeria: 1986 - 2019

The paper sought to test the impact of international trade on economic growth in Nigeria. The research adopted the causal research design. Time series data sourced from the Central Bank of Nigeria Statistical Bulletin from 1986 to 2019 were used to determine the impact of international trade on economic growth in Nigeria. Economic growth was proxied by Gross Domestic Product while international trade was proxied by trade openness, export, and exchange rate as a moderator. Trend analysis was employed in the analysis and the hypothesis was tested at 5% level of significance. To get a more robust estimate of the effects of the independent variables on the dependent variable, the log of the variables were taken. The unit root test result showed that the log of Gross Domestic Product (GDP), Trade Openness (TOP) and were stationary at level while the log of Exchange Rate (EXCHR) and Export (XP) were stationary at first difference. Consequently, we applied the ARDL model in the analysis. The results showed that Exchange rate and trade openness had negative and significant impact on economic growth while export had positive and significant impact on growth. Nigeria could gain more from international trade if the economy and the production structures becomes responsive and more adaptable to changes both internally and externally on the basis of international economic system. In ever changing and highly competitive global environment, Nigeria needs to continually re-examine, revise and re-evaluate sources of strengths, weaknesses, opportunities and threats (SWOT analysis) in order to develop appropriate policy strategies, that can lead to maximum national benefits from international trade.

Financial Flows to the United States in 2022: Was There Fragmentation?

Events of the last five years, such as the U.S.-China trade war, the COVID-19 pandemic, and—most recently—Russia’s invasion of Ukraine, have raised concerns in the popular press and among policymakers that the international economic and financial system is at risk of becoming significantly fragmented (Aiyar et al., 2023; Ip, 2023; Shin, 2023). Most recently, attention has shifted to the possibility of fragmentation along geopolitical lines, where countries primarily trade with and invest in other countries with which they share close diplomatic and political ties (International Monetary Fund, 2023a,b).

The Role of China's Trade Liberalization in Boosting Industrial Employment and Incomes in Emerging Countries

The substantial influence of China's expeditious economic expansion and policies promoting trade liberalization on developing nations, specifically with regards to industrial employment and income, cannot be understated. This research investigates the impact of China's trade liberalization on the enhancement of industrial employment and incomes in the aforementioned countries. The process of liberalizing China's trade policies, which commenced in the latter part of the 1970s, has resulted in a notable upswing in its export activities and a heightened level of interconnectedness with the international economic system. The process of integration has led to significant influxes of foreign direct investment (FDI) into China, as multinational corporations have endeavored to capitalize on its inexpensive labor force and expansive consumer base. Consequently, China has emerged as a prominent manufacturing center, resulting in the establishment of extensive global value chains. Various emerging countries, with a particular focus on those situated in Asia, have experienced advantageous outcomes as a result of China's trade liberalization efforts. To begin with, the increased demand for raw materials and intermediate goods in China has generated novel export prospects for various countries, particularly in sectors such as agriculture, mining, and manufacturing. The aforementioned phenomenon has engendered a surge in industrial production and concurrently created avenues for employment, primarily benefiting individuals with limited skill sets.

GLOBALIZATION AND ITS CHALLENGES

Globalization is the name given to the phenomenon of integration of the world space through technical advances in the communication and transport sectors. This process intensified with the advent of the Third Industrial Revolution, which saw an increase in international flows of capital, goods, people and information. This process is marked by the proliferation of transnational companies and the consolidation of financial capitalism, promoting profound changes in the international economic system and in the organization of work. In its current phase, new geographic networks were created, and there was an unprecedented expansion of the scales of information propagation and also of consumption. Despite this, globalization has not spread homogeneously across territories, placing part of the world’s population on the margins of this process. This work is a literature review.

Non-profit Organisations in the Current World

Regarding the increase in importance of non-profit organizations, their activities and influence in international economic, political, or social relationships and systems is undoubtedly beneficial to pay attention about presented issue. The paper aims at selected features of non-profit organizations in current world, special attention is paid to the context of online marketing, fundraising, and social media management of organization Médecins Sans Frontières, its Czech branch to be specific. The aim of the paper is to provide comprehensive theoretical background and introduce particular demonstrative case study.

Fifty years on: what the Bretton Woods System can teach us about global macroeconomic policy-making

AbstractThis paper first describes the Bretton Woods system: its origin, what it was meant to achieve, and why it collapsed. We then describe the emergence of the global non-system in which inflation targeting has replaced full-employment Keynesianism and floating exchange rates have replaced the Bretton Woods set-up of fixed but adjustable exchange rates. We describe how the Bretton Woods system set about achieving the three objectives laid down for a well-functioning international economic system by John Maynard Keynes: full employment without inflation, sustainable current account balances between countries, and a sustainable flow of international financial capital—on the understanding that an open trading regime is also fostered. Because the global non-system is now very different from the Bretton Woods system, Keynes’s objectives now need to be achieved in a very different manner. Looking forward, this non-system faces a number of longer-term challenges. Important adjustment issues will arise in relation to the global demographic transition; the potential long-term slowdown in productivity growth; and the rise in investment in renewable sources of energy which will be necessary to help ensure that the world is able to move towards zero emissions of carbon by 2050. We also discuss important policy issues in relation to the flows of international capital to emerging market economies, and the likely need for a sovereign debt reconstruction mechanism. We then go on to consider two significant structural changes to the world—the emergence of the European Monetary Union and the rise of China. A final section of the paper considers the importance of leadership in this global non-system.

The Impact of Some Macroeconomic Variables on the Foreign Trade of Manufactures in China for the Period (2000-2020)

Foreign trade is considered one of the main components of global economic relations, because it represents the oldest and most developed traditional form of those relations, and it also brings together the countries of the world in one international economic system. China has many industrial fields, the most important of which are the machinery industry and the cement industry, in addition to being the most prominent manufacturers of means of transportation, the most important of which are aircraft, in addition to trains, cars and electronic goods. The research aims to measure and analyze the impact of some macroeconomic variables on the foreign trade of manufactures in China for the period (2000-2020), and the standard study using the ARDL model concluded that the exchange rate affects significantly and directly on the value of foreign trade of manufactures, and this means that the increase of one unit The exchange rate leads to an increase in the value of foreign trade of manufactures by (678) million dollars, and an increase in the domestic product by one unit during the year will lead to an increase in the value of foreign trade of manufactures by about (0.17) million dollars. It means that the increase in public spending leads to an increase in the foreign trade of manufactures by (3.87) million dollars, due to the increase of one unit in the value of public spending. Interest in foreign direct investment will increase the value of foreign trade of manufactures by (0.06) million dollars during the year

Trapped In The Semi-Periphery

This paper attempts to explain the middle-income trap from the lens of an amended world-systems theory, in which capitalists within the semi-periphery are taken into account. It rejects that developing countries should pursue an import-substitution industrialization strategy, and instead argues developing countries should pursue a strategy similar to South Korea’s. An export-oriented industrialization strategy, with tight limits on foreign direct investment (FDI) and multinational corporations (MNCs) operating within the economy, building up state capacity in order to form a close collaborative, not corrupting relationship between private businesses and the state, and calls for heavy investments in human capital and industrial upgrading. This would ensure that surplus value does not leave the country nor does it lay idle in the hands of domestic capitalists. It also calls for changes to the global economic governance regime, such as common rules for FDI and taxes on MNCs, on the part of developing countries in order to create a more development friendly international economic system.

СУЧАСНА ТЕОРІЯ МІЖНАРОДНОЇ ТОРГІВЛІ

International trade is a system of international commodity-monetary and economic relations, consisting of foreign trade of all countries of the world. International trade is the central link of the link of global economic relations, mediating almost all types of international division of labor and connecting all countries of the world into a single international economic system. The purpose of the article is to highlight the problematic aspects of the modern theory of international trade. Methods used in the research: comparison, comparative analysis, systematization and logic, etc. The hypothesis of the study was the assumption that trade is a means by which countries can develop specialization, increase the productivity of their resources and, in general, increase the total volume of production (develop as a whole). Presenting main material. Economic and political risks in international trade are determined by geographic, political, and demographic factors. Modern international trade is dynamic. The structure and volumes of exports and imports of the turnover of various countries and regions of the world are rapidly and continuously changing. Originality and practical significance of the research. Modern theories of international trade either develop the principles of classical theories, extending them to a larger number of goods, countries and factors of production, or study certain aspects of international trade that for some reason remained unexplained by classical theory. Conclusions. The competitiveness of large national firms is certainly oriented towards national ones. To analyze their activities, Porter's concept of the value chain (value chain, production chain) is used, i.e. the set of business operations of the firm during which it creates added value. Concentration on the company's most expensive links of this chain (for example, R&D and sales) and the transfer of other operations to partner firms (foreign or domestic small and medium-sized enterprises) allows TNCs to maximize the production of added value. For example, the American company Nike dominates the world market of sportswear and shoes, but it almost does not produce them itself, because it distributes orders mainly to foreign partner companies and specializes in design and logistics.

ВІД ФАБРИКИ СВІТУ ДО ЕКОНОМІЧНОЇ СУПЕРДЕРЖАВИ: ВПЛИВ КИТАЮ НА СВІТОВУ АРЕНУ

China's profound transformation into a global economic power has changed the world order, challenging the traditional dominance of Western economies. This article examines the multifaceted dimensions of China's rise and its impact on the international economic system. Over the past three decades, China's economic growth has been impressive, making it the world's second-largest economy by nominal GDP in 2022, behind only the United States. This remarkable journey has seen China's GDP grow more than tenfold since 1978. However, the benefits of this growth have not been shared evenly, with differences in living standards between rural and urban populations and marked social inequality in cities persisting. China's industrial power is second to none, accounting for roughly half of the world's steel, aluminum and cement production. It is a leading producer of major commodities such as coal, manganese, lead-zinc, antimony and tungsten. The country's influence extends to the energy sector with significant oil and gas production. In addition, China's dominance of rare earth metals, critical to modern technology, is almost complete thanks to significant investment since the 1980s. The article highlights China's ambitious ten-year plan, launched in 2015, to modernize its manufacturing capabilities to compete with German rivals and global companies. China's influence extends beyond the economy, with its global presence growing as the largest trading partner of many countries and the leader of the world's largest free trade bloc through RCEP. In addition, the Belt and Road initiative strengthens China's position in Central Asia and Europe. It highlights China's strategic control over the production of green technologies such as solar cells, wind turbines and rare earth elements, underscoring the West's growing dependence on China to meet its environmental goals.

Dynamics between Regional Integration and Informal Cross Border Trade and Its Applicability: The Case of Cameroon and Equatorial Guinea

Collective self-reliance, inward-looking regionalism, and delinking from the dominant relationships that prevailed in the international economic system in the form of regional economic integration and cooperation were the solution identified by the Pan-African leaders as a potential strategy for restructuring the fragmented African region into a more coherent and viable economic space. This article interrogates the applicability and understanding of Regional Integration within the ECCAS Region while determining the influence Informal Cross Border Trade has had on economic integration in this sub region. The study uses economic integration theories to analyze the implementation of regional economic integration and its effectiveness. The article applies a qualitative research method with a cross sectional design to study a multilevel issue involved in regional integration. It aimed to explain and predict phenomena based on empirical data obtained through interviews using close structured and unstructured interview guide. The study revealed that despite efforts to institutionalize regional integration in the ECCAS region, structural challenges remain a significant impediment to intra-regional trade. Informal cross-border traders consolidate what has come to be regarded as the “invisible” integration of Africa’s economies through their involvement in a range of goods and services, resulting in transnational networks, culture and kinship. These can only be effective if African countries adopt a self-reliant and inward-looking economic integration strategy.

The Application of Law as a Key to Understanding Judicial Independence

Judges across China recently declined to apply a law that the National People’s Congress had newly brought into effect. In this article, I describe this startling finding and explore the significance of it. I conclude that it represents an exercise of judicial independence. Using a thickly descriptive approach that focuses on textual analysis and institutional context, I demonstrate that judges in China have no legal duty to apply law and that it is professionally risky for them to apply law; that judges there operate within a professional culture that encourages restraint; and that the court system has developed a strong set of internal rules that encourage reference to judge-made rules rather than to external rules such as those enacted by legislative or executive bodies. I further argue that the topic of judicial independence is important not just for countries outside the United States, but for the United States as well, and that a framework developed from a broadly comparative perspective is the best approach for understanding judicial independence in China, and, likewise, in the United States. Understanding judicial independence in China is important for myriad reasons. It is a gauge of the robustness of the rule of law in China. It is an important proving-ground for judicial independence as a universal phenomenon. It adds perspectives from China to the comparative law literature on judges. It is a bell-weather of the kind of decentralization of authority that famously marks China’s post-Mao government. There is no question that the courts of China were enlisted to play a role in the larger governmental initiatives of the past century. Its courts garnered respect for the People’s Republic of China’s legal system, which in turn helped China participate as an equal in the international legal order, as well as the international economic system. With judicial independence, there is no escaping the fact that to understand it is to measure it. This is because it would be false and misleading to believe that either you have it or you don’t. Each country’s, each county’s, each judge’s independence is affected by a complex of circumstances around it that vary over time. Some of these circumstances are institutional, some are cultural, and some are the products of chance and human agency. Care is needed when framing the measuring project. If we choose to view the degree of judicial independence as arraying itself along a spectrum, then we need

СУЧАСНІ ІМПЕРАТИВИ ГЛОБАЛІЗАЦІЇ РИНКУ ПРАЦІ: ФОРМИ І СТРУКТУРА

The development of the world labor market at the current stage of world economic progress is characterized by the systemic influence on its structural dynamics of a number of global imperatives, which manifests itself at the levels of demographic, transnational, scientific and technical, regional integration, and institutional and regulatory factors. Their synergistic effect leads to the transformation of the world labor market into an open competitive system of a global type, the quantitative and qualitative parameters of which are determined, on the one hand, by the complex action of the mechanisms of the objective economic laws of value, the capitalist population, demand and supply of labor, concentration of production, competition; and from the second – the specifics of the expanded reproduction of labor resources within the framework of national economies and at the international level. The purpose of the article is to characterize the structure-forming imperatives of globalization of the labor market. The modern economic nature of the structure-forming imperatives of the globalization of the labor market actualizes an important methodological issue regarding the comprehensive renewal of the theoretical foundations of its research at the level of the operation of economic laws and the influence of emergent factors. global economic transformations and the deep organic connection of the labor market with structural changes in the international economic system and all forms of international economic relations. The development of the global format of the functioning of the labor market is the result of the convergence of cultural traditions, moral values of different peoples and nations, their psychological and socio-cultural characteristics, attitudes to work and learning, the degree of self-education, discipline and responsibility, which, "integrating" into global institutions, acquire qualitatively new features. So, we can conclude that together they ensure the effective functioning of operational and functional business models of international companies and firms and are a powerful driver of modernization of the institutional, organizational, economic and technological basis of the world economy on the platform of global business networks.

INSTITUTIONAL FOUNDATIONS OF ARMENIA’S ECONOMIC DIPLOMACY

At the current stage of change in the international economic system, under the influence of the counterbalancing processes of globalization and regionalization, complex transformations are taking place in national economies, the study of which and the systematic analysis of the internal and external institutional structure of the economy become a priority. Therefore, identifying the interactions between the institutional components of economic diplomacy and developing a prospective development strategy based on them can contribute to the effective management of the risks of the national economy in conditions of global uncertainty, ensuring a sufficient level of economic security and competitiveness. Like any other complex multi-level system, the institutions of economic diplomacy also need some classification. In this article, the views of international experts and researchers are taken into account.