Trade In Products Research Articles

Article: Exploring Shortcomings in International Trade Law in Light of the Expansion of Artificial Intelligence

The objective of this paper is to explore the shortcomings in international trade law (ITL) in view of the expansion of Artificial Intelligence (AI), and to propose some recommendations. AI is contributing to the development of international trade while giving rise to other concerns, such as nontariffs measures. Addressing the legal challenges posed by the integration of AI into various facets of society, including international trade, is of major importance. In this context, this paper explores a number of provisions of the General Agreement on Tariffs and Trade (GATT) 1994, those of the General Agreement on Trade in Services (GATS), and ends with those of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Finally, the article proposes some recommendations to better take into account the concerns that AI may give rise to in the multilateral trading system. It highlights the need for close partnership between the World Trade Organization (WTO), the International Standardization Organization (ISO) and the International Electrotechnical Commission (IEC) to better maximize the benefits of AI while minimizing the risks in the context of international trade. Also, it highlights the importance of harmonizing regulations on the trade of AI products and AI-driven trading and the need for a change in legal design that goes beyond mere incremental adjustments.

Tobacco Industry CSR activities in Poland between 2020-2023

Abstract Background The tobacco industry has undergone a significant transformation in its approach towards Corporate Social Responsibility (CSR) activities. Once primarily associated with controversy and criticism due to the health risks associated with tobacco consumption, many tobacco companies have begun to embrace CSR initiatives as a means to mitigate these concerns and demonstrate their commitment to broader societal well-being. Methods Methods were based on the Global Tobacco Industry Interference Index. Between 1 January 2020 and 31 March 2023 scoping review of legal basis, Polish media websites, Polish government and local government websites, also social media of tobacco industry companies has been done by four reviewers searching separately. Results Between 2020 and 2023 several tobacco companies supported public schools (organized workshops, offered internships, and demonstrated the production processes). In 2022, the National Revenue Administration signed an agreement with Philip Morris Polska, among other companies, under the Cooperation Program. The objective of the Program is to initiate collaborative measures that promote compliance with tax regulations. At the end of 2021, the National Revenue Administration took patronage over the Business Center Club social campaign entitled ‘Coming together to fight the illicit trade in tobacco products’. Moreover, in March 2023 the General Police Headquarters started cooperation with BAT and JTI in the field of combating illegal production and trade in tobacco products, as well as disclosing and eliminating tobacco products from illegal sources from economic circulation. Conclusions In Poland, which currently has no specific regulation constraining tobacco industry lobbying, implementation of the provisions of WHO FCTC Article 5.3 is needed to limit interactions between the government and the tobacco industry. Government and public schools should not accept any support from the tobacco industry. Key messages • The government should have regulatory measures to manage its interactions with the tobacco industry, emphasizing the importance of refraining from accepting industry assistance. • Implementation of WHO FCTC Article 5.3 of is needed to limit interactions between the government and the tobacco industry.

Collaborative Development of Cross-border E-commerce and Agricultural Product Supply Chain: Opportunities, Challenges and Solutions

Abstract: The development of science and technology and the deepening of globalisation have opened up new directions for developing the agricultural industry. With the gradual expansion of the scope of Internet +, traditional trade has gradually evolved into e-commerce, and relatively simple domestic trade has gradually expanded into cross-border transactions. With the help of e-commerce platforms, sales channels can be expanded, and the share of agricultural exports can be increased. The development of cross-border e-commerce is highly valued and mutually supportive of the agricultural product supply chain (APSC), which promotes the international trade of agricultural products. Optimised APSC provide high-quality produce to meet consumer demand. Technological innovations such as big data and the Internet of Things (IoT) bring smart and efficient optimisation solutions to APSC, improving the efficiency of product distribution. This paper reviews the research on cross-border e-commerce and APSC by some scholars in recent years, summarises the current development of cross-border e-commerce, describes the problems of APSC, and proposes solutions. Reviewing and summarising the relevant research literature aims to help scholars understand the development of cross-border e-commerce and APSC more systematically and comprehensively, and to provide strong support for future research and practice.

Texas trade in forest products industry

Texas boasts abundant forest resources, providing substantial economic and ecological benefits statewide. This study examines the trends in forest product trade within Texas over the past two decades, focusing on key disruptions during this period. The analysis categorizes the forest products industry into two main markets: solid wood and paper and pulp, further dividing the industry into five core sectors. The findings indicate that Texas operates as a net importer of solid wood and wood furniture products while serving as a net exporter of wood pulp and, paper and paperboard products. Both import and export values have generally shown a gradual increase over time. Notably, Mexico emerged as Texas’s primary trade partner for both imports and exports in 2023. Additionally, Texas ranks as the second-largest exporter of paper and paperboard products nationally while also being the second-largest importer of solid wood products and wood furniture products. The study highlights the profound impact of the COVID-19 pandemic response on Texas’s trade dynamics, emphasizing the crucial need for ongoing monitoring of trade policies and international relationships. These factors have the potential to exert significant influence on Texas’s trade landscape in the foreseeable future.

Comparative And Dynamic Analysis of Türkiye's Competitiveness in Unmanned Aerial Vehicles

The study aims to determine the competitiveness of Türkiye’s UAV exports in a dynamic framework. The analysis used data from the first 20 countries with the largest share in the production and trade of products designated as UAVs by the Harmonic System six-digit and by the European Commission for 2012-2021. Within the scope of the study, it is determined that some countries have high competitiveness in 4 product groups examined with five different foreign trade indexes. It is concluded that Türkiye has strategic and dynamic superiority in two of the four product groups.

Investigating the role of biomass energy consumption and forest products trade on the forest footprint in Finland: an environmental Kuznets curve analysis

AbstractForests are essential in mitigating climate change by absorbing carbon dioxide and maintaining ecosystems, mainly through preserving biodiversity. For this reason, the sustainability of forests is essential for human life. This paper examines the role of biomass energy consumption, forest product trade, and economic growth on Finland’s forest footprint from 1970 to 2018. By employing Fourier-based unit root and cointegration tests, we confirm the Environmental Kuznets Curve (EKC) hypothesis, demonstrating a long-term relationship in which economic growth first raises, then reduces the forest footprint. Biomass energy consumption and forest products trade show an insignificant long-term effect on the forest footprint. We found unidirectional causality from the forest footprint to biomass energy consumption and economic growth. This research fills a gap by focusing on the under-researched forest footprint within the EKC framework, particularly in Finland’s context of stringent forestry policies. Our findings emphasize the need for interdisciplinary collaboration to enhance environmental policy and sustainability practices. We further contribute to the broader literature on sustainable forest management and offer actionable policy recommendations for enhancing Finland’s environmental strategies.

ПЕРСПЕКТИВИ ЕКСПОРТУ АГРОПРОДОВОЛЬЧОЇ ПРОДУКЦІЇ З УКРАЇНИ ДО КРАЇН АЗІЇ

The article considers current state of Ukraine's export of agri-food products to Asian countries, detailing its commodity and geographic structure. General socio-economic characteristics of the Asian region have been carried out. The main principles of the functioning of the agro-food sector in Asia in relation with its production and foreign trade are given. The largest exporters and importers of food among Asian countries have been determined according to the latest available data. Total agricultural trade of our country with China, India and Turkey highlighted. The dynamics of bilateral sectoral trade between partners and the key products of Ukrainian production supplied to their markets are considered. Further emphasis placed on the import needs of those food groups or commodity items by the specified countries, which Ukraine is already able to satisfy to a certain extent. An assessment of the impact of war and its negative consequences on the actual exports indicators from Ukraine to Asia during 2022-2023 was carried out. The importance of finding new sales markets and consolidating existing partner trade relations by concluding agreements on free trade was emphasized. It is pointed out the actual impossibility for our exporters to fully use the transport and logistics infrastructure, which affects the quantitative and qualitative indicators of foreign sales. In fact, against the background of the final decline in export revenues, the redirection of products from Asia to the markets of European Union does not have the proper effect and does not compensate for the losses incurred. Development prospects and opportunities for optimizing Ukrainian agri-food exports to Asian markets were given, taking into account the sector's limited resources, short- and medium-term priorities of our industry producers, and existing requests of specific importing countries.

The intensity of regional food trade among the Western Balkan countries during periods of crisis

This study explores the intensity of food trade among the Western Balkan (WB) countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia) during periods of crisis, emphasizing the impact of COVID-19 and the Ukrainian-Russian conflict on regional trade dynamics. The impact of this crisis was measured over three analyzed years: 2018, representing a reference year for comparison, then 2020 as the year affected by COVID-19, and 2022, being affected by the pandemic as well as the Ukrainian-Russian crisis. All data collected are from the “Trade Statistics for International Business Development Database”. Conclusions about the intensity of exchange of agricultural and food products within the WB region were obtained by calculating Regional Intensity of Trade of Export (RITE) and Regional Intensity of Trade of Import (RITI). Higher values than 1 indicate intensity in trade or dominance of trade in specific products with a particular region compared with the trade with the world. In the case of trade among the WB countries, the COVID-19 crisis did not affect the increase in trade volume. However, there was an increase in intra-regional trade by about 50% when compared with 2020 and 2022. The RITE coefficients for all countries except Albania were greater than 1, indicating intensified export of agricultural and food products to the WB region compared with their global export. The RITI index is very important in crisis, as it somewhat answers the question of who "feeds" the country during crises. All WB countries had the RITI indices greater than 1, indicating a higher intensity of food imports from the region compared with the world. According to this research, the RIT coefficients measured generally declined in the years of crises, meaning that the countries shifted their export focus to other regions but still the most significant foreign and intense trade partners in agricultural and food products were countries from the region.

The analysis of vegetable and fruit export competitiveness of the Republic of Srpska

The aim of this research is an analysis of the Republic of Srpska's export competitiveness in vegetables and fruit on international markets. Two main evaluation indices were used, namely the trade competitiveness (TC) index and the revealed comparative advantage (RCA) index to measure and analyze the international position of vegetables and fruit during 2015 – 2022. Both indicators were calculated based on statistical data on foreign trade in vegetables and fruit between the Republic of Srpska and the world, EU, and CEFTA countries, and analyzed using descriptive statistics. Vegetables and fruit participate with 7.17% and 15.41% in the total export of the Republic of Srpska’s agri–food sector. Analysis of the export structure of this sector showed an average share of vegetables and fruit of 12.04% and 9.43% in the EU market, i.e., 1.63% and 9.65% in the CEFTA market. The results indicate strong export competitiveness of the Republic of Srpska in vegetables concerning the world and EU markets, but weak export competitiveness in relation with the CEFTA countries. The Republic of Srpska recorded strong export competitiveness in fruit on the world and CEFTA market, while poor export competitiveness in the EU market. Within these two product groups on the world market, cucumbers, apples, pears, and plums achieved strong export competitiveness. Cucumbers and plums were two leading products regarding strong export competitiveness On the EU market, while apples and pears were on the CEFTA market. Considering the favourable agroecological conditions for the production of vegetables and fruit, the Republic of Srpska should continue to promote production and foreign trade in these traditional products and improve their competitiveness on international markets.

Using scenario tree modelling to evaluate the probability of freedom from Enzootic bovine leukosis (EBL) in Italy and Slovenia.

Documented freedom from disease is paramount for international free trade of animals and animal products. This study describes a scenario tree analysis to estimate the probability of freedom from Enzootic bovine leukosis (EBL) in Italy and Slovenia using information gathered via the data collection tool developed in the COST action project SOUND-control. Data on EBL control programmes (CPs) from 2018 to 2021 were used to build the models. Since animals are only sampled on the farm, one surveillance system component (SSC) was considered. The posterior probability of freedom (PostPfree) was estimated in time steps of one year, from 2018 to 2021. After each year, the calculated from the previous year, combined with the probability of introduction, was used as a prior probability for the next year. The herd level design prevalence was set to 0.2% in accordance with the Council Directive 64/432/EEC and the within herd design prevalence was set to 15%. As Slovenia implemented a risk-based surveillance, targeting the herds importing cattle, in its model the design herd prevalence was combined with an average adjusted risk to calculate the effective probability of a herd importing cattle being infected. The models were run for 10,000 iterations. Over the study period the mean estimates were: i) for Italy both the surveillance system sensitivity ( SSe) and PostPFree 100%, with no differences between simulations and years, ii) for Slovenia the SSe was 50.5% while the PostPFreewas 81.6%.

Ecological unequal exchange: Evidence from imbalanced cropland soil erosion and agricultural value-added embodied in global agricultural trade

The cropland soil erosion (CSE), a major driver of land degradation and water pollution, is directly caused by agricultural production processes driven by food demand in a globalized food market. However, it is essential to determine what role global trade and agricultural value chains play in regional CSE, especially when imbalanced erosion is embodied in global agricultural trade. In this study, the Revised Universal Soil and Water Loss Equation and the Environment Expanded Multi Region Input-Output Model were used to quantify the global distribution of CSE and the value added in global agricultural value chains to identify trade imbalances. We introduce the Local Environmental Coefficient, the Regional Environmental Coefficient, and the Agricultural Trade Environment Inequality (AEI) index, which were used to analyze the overall and bilateral inequalities in agricultural trade among the world’s regions. The results showed that 34.65 % of the global CSE was embodied in international trade, whereas the ratio of the value added was 30.80 %. The global trade in agricultural products is generally unbalanced, as indicated by the AEI index of developed regions such as Norway and Japan, which is more than 30 times higher than that of regions such as China and Brazil, and more than 20 times higher than the global average. In terms of bilateral trade, China, the United States, and Brazil face more prominent imbalances in their international trade. Major agricultural producers generally bear more environmental costs with less value-added benefits in trade. This study quantifies, for the first time, the implied imbalances of CSE transfer in agricultural trade. Global ecological governance thus requires accountability from all regions, especially in an era of increasing globalization of agricultural trade. Timely adoption of ecological compensation and technology transfer for both large agricultural producers and less-developed regions are key to achieving sustainable global agricultural production.

ANALYSIS OF THE GEOGRAPHICAL FACTORS INFLUENCING CHOICE OF INFORMAL FISH TRADE ROUTE AND DESTINATION BY FISH TRADERS BETWEEN MALAWI AND NEIGHBORING COUNTRIES

Choice of trade route and destination by cross border traders is an important decision in today’s increasingly cross border trade of products including fish. The current study examined the geographical factors influencing choice of informal trade route and destination by fish traders. Both qualitative and quantitative approaches were adopted for the study. These included semi-structured questionnaires through personal interviews and key informant interviews with fish border inspectors. Data was analyzed through various techniques for trader’s choice and destination. Specifically, principal component analysis and spearman correlation, and Huff’s gravity model were used to identify significant factors influencing choice of trade route and destination, and market attractiveness, respectively. Fish traders bypass official border posts using informal routes connecting the main route before and after the border post. Despite attempts and awareness about formal trade, stringent regulations forced fish traders to use informal trade routes. However, investigations into choice of trade routes and destination found that route distance, presence of alternative destination, mode of transport, demand of the fish product, and personal safety and risks were the factors influencing choice of both trade route and destination by informal fish traders. This geographic analysis provides a basis for addressing challenges in informal cross border trade in Malawi. It is recommended that strategic efforts and investments should be made in the development of transportation infrastructure, such as roads and railways to improve connectivity between secondary routes and one stop border post. The government should also intensify awareness initiatives on COMESA simplified trade regime (STR) to encourage informal traders to transition to the formal sector through use of formal routes.

A Study of Virtual Water Trade among G20 Countries from a Value-Added Trade Perspective

Abstract: From a value-added trade perspective, this study utilizes the world input–output tables and the water footprint data of each industry in each country in the Eora database to explore the virtual water resources of 19 countries (the G20 countries excluding the European Union) in 2016. We calculated nine value chain decompositions and the pattern of virtual water flows and then explored the implied virtual water use due to the trade of intermediate goods and final goods, and we also analyzed the unequal trade of virtual water and added value among countries. The results indicate the following. Firstly, in most countries, the largest portion of virtual water is attributed to exports of intermediate inputs that are produced in the source country and fully utilized by the direct import countries, followed by the foreign value-added component of intermediate goods, while the smallest share of virtual water is returned to the country. Secondly, in value-added trade, excluding the rest of the world (ROW), China, France, Italy, Japan, Mexico, South Korea, South Africa, Saudi Arabia, and Germany are net importers in the virtual water trade between G20 countries, and the USA is the largest net exporter of virtual water. Thirdly, intermediate product trade is the dominant form of implied virtual water trade among countries, which leads to a net flow ratio of implied virtual water of about 80% to 90%. Lastly, the Virtual Water Inequality Index shows that thirteen country combinations, including Brazil and Argentina, exhibit significant inequality, and most countries are in a relatively equal state. In addition, the virtual water and added value of the relatively economically developed regions benefit more from the virtual water trade. Therefore, it is crucial for countries to reduce their consumption of virtual water when trading intermediate products to develop high-value-added and low-water-consumption industries and to choose appropriate virtual water trade targets.

Captagon: A comprehensive bibliometric analysis (1962–2024) of its global impact, health and mortality risks

Captagon is a synthetic stimulant combining amphetamine and theophylline. Initially introduced in 1961 as a treatment for hyperactivity, depression, and narcolepsy, Captagon was later classified as a Schedule 1 controlled substance due to its addictive and hallucinogenic properties. Despite its global prohibition in 1986, the trade of counterfeit products is widespread, especially in south-east Europe and far-east Asia, with its production being on the rise in Middle Eastern regions. This paper presents a quantitative data-driven bibliometric analysis of the existing literature on Captagon up to July 2024. It aims to delineate the structure and development of knowledge surrounding the substance, including key contributing countries, authors, prominent sources, and recurring thematic keywords. The quantitative and data-driven results were then used to guide the narrative discussion on Captagon. Findings indicate that current research predominantly focuses on Captagon’s use and impact in conflict zones, often exploring its interaction with other substances used by civilians and militias. Results also show a growing trend in Captagon research, with Saudi Arabia, Jordan, and Iraq emerging as main contributors to the literature. Despite the attention in specific regions, a considerable gap remains in understanding the mechanisms of action of Captagon (particularly regarding its metabolism, toxicology, mortality risk), and in developing protocols for its discontinuation. Additionally, the drug’s inconsistent composition requires further analyses to better predict risks and establish effective management strategies. Addressing these gaps will be crucial for the development of novel interventions and policies to mitigate the adverse effects of Captagon and improve public health systems worldwide.

THE IMPACT OF DIGITALIZATION ON THE DEVELOPMENT OF THE AGRO-FOOD SPHERE

The agro-food sphere is one of the key industries in the country's economy and plays a major role in ensuring food security. The development of the agro-food sphere requires the development and implementation of innovative projects in this field. The creation and implementation of such innovative projects require the availability of information support, which includes complete and up-to-date information about the objects and processes related to the project. It has been proven that the innovative development of the agro-food sphere is closely related to the digitalization process in this field. It is noted that digitalization in the management of agriculture and the agro-food sphere opens up new opportunities for increasing the efficiency, transparency, and sustainability of this industry. The main directions of implementing digitalization in the agro-food sphere have been studied, including the creation of electronic registers and databases, and the development of decision support systems. The integration of e-government services in the agro-food sphere offers significant opportunities for improving the efficiency of public administration, enhancing service delivery, improving interaction between public authorities and agricultural market entities, and ensuring sustainable agricultural development. The author has developed a methodology for the integral assessment of the level of e-government development in the country. The integral assessment is based on initial indicators, including those defined by the United Nations Department of Economic and Social Affairs. The method of the modified principal component was used to determine the weighting coefficients of these indicators in the integral assessment. Integral assessments of the components of the agro-food sphere have been determined: the food industry, retail trade in food products, and indicators related to the protection and preservation of the environment associated with the agro-food sphere. A significant correlation has been found between these integral assessments and the integral assessment of digitalization

Analysis of the dynamics of production and foreign trade of fish products in Russia. Prospects for the development of the industry in the context of economic sanctions

Purpose: based on long-term data on the dynamics of fish catches and foreign trade in fish products, as well as international comparisons of world fishing powers, analyze the prospects for the development of the domestic fishing industry in the new economic conditions of sanctions confrontation with the countries of the collective West.Method: used such methods of general scientific knowledge as analysis and synthesis, as well as comparisons, tabular and graphical methods.Novelty: a detailed assessment of the factors affecting the growth of domestic fishing and fish farming, including the development of the domestic fishing fleet, was made. The prospects for expanding the sale of fish products on world markets, including on the basis of data on current and prospective consumption in different regions of the world, were considered.Results: the study analyzed a number of sources, including FAOSTAT and Rosstat commodity resource balances, in terms of production, consumption and cross-border trade in fish products. It has been established that after 2014 own consumption and imports are declining, while exports, on the contrary, are gradually increasing. Thus, the main driver of production growth in the industry is expansion to foreign markets. In the context of strengthening anti-Russian sanctions policy, it is necessary to diversify the sales markets for Russian fish products, however, an outdated production base is a significant limitation for the development of the industry.

AGRO PRODUCTS EXPORTS OF UKRAINE WITHIN ITS TRADE AGREEMENTS WITH THE COMMONWEALTH OF INDEPENDENT STATES

The aim of the research is to work out the recommendations on the geography of the agricultural products trade of Ukraine under the circumstances of the on-going war through the analysis of the trends and dynamics of the agro exports from Ukraine to the CIS, the agricultural products exports from Ukraine to the CIS countries possible correlation with each other, its direction and level. The data are the values of the agricultural products exports from Ukraine to the CIS countries from 2001 to 2023 included with the special identification of the years 2021-2023 as the year 2001 is the earliest one with the available data, 2021 is the pre-war year and 2023 – the year with the latest data available and the second year of the war. Such methods of scientific research as empirical, comparative and statistical analyses, including data mining, cleaning and processing, methods of correlation measuring like Pearson, Spearman and Kendal correlation tests, the method of exclusion, as well as textual and tabular methods for better data presentation and comparison were used while conducting the research presented in the given article. The conducted research indicated, that the agro exports of Ukraine to the following country – pairs appeared to be positively correlated: 1) Armenia – with Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic and Tajikistan, 2) Azerbaijan – with Belarus, Georgia, Kyrgyz Republic, Tajikistan and Uzbekistan, 3) Belarus – with Uzbekistan, 4) Georgia – with Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan, 5) Kazakhstan – with Kyrgyz Republic, Tajikistan and Turkmenistan, 6) Kyrgyz Republic – with Tajikistan, and 7) Tajikistan – with Turkmenistan.

Vertical specialization, global expansion of supply chain, and convergence

Abstract In this paper, we construct an elaborate general equilibrium model with a continuum of production fragments for an intermediate good, then incorporate it in a growth model to address the effects of global production fragmentation, vertical specialization, and trade on growth and inequality for a small developing country. Among other things, we show that a small developing economy grows faster than the rest of the world as a result of global fragmentation and trade in intermediates if it is skilled-labor scarce. We further address the effects of such a trade opening on wage inequality.

Static Resilience Evolution of the Global Wood Forest Products Trade Network: A Complex Directed Weighted Network Analysis

This paper analyzes the static resilience of global wood forest products trade networks across upstream, midstream, downstream, and recycling sectors using a complex directed weighted network approach. By examining topological features and resilience from 2002 to 2021, this study reveals significant structural evolution and scale expansion in these networks. It finds improvements in network efficiency and resilience, alongside an increase in weighted hierarchy highlighting the prominent roles of core countries like China, the US, and Germany. While these countries bolster network resilience, they also introduce certain vulnerabilities. This study finds notable disassortative mixing without trade volume weights and diversified trends with weights, offering new insights into network dynamics. Core nodes must address disruption risks, enhance diversity, and establish emergency response mechanisms. In the recycling sector, this paper highlights weak trade connections and low resilience, with the US maintaining dominance, China’s influence waning, and India’s rapid ascent. This paper concludes by emphasizing the need for refined indicator systems and deeper explorations into resilience enhancement strategies for operational and targeted suggestions.

Impacto macroeconómico de la dolarización en el Ecuador durante el período 2006-2023

The macroeconomic impact is crucial for determining the well-being of a country. Analyzing variables such as Gross Domestic Product (GDP), inflation, unemployment, investment, and foreign trade allows for an assessment of a nation's economic health and financial stability. This article aims to analyze the impact of dollarization in Ecuador between 2006 and 2023. Adopted in 2000 to stabilize the economy and attract foreign investment; dollarization presented monetary and fiscal policy challenges. Authors like Cachanosky and Alvarado highlight the challenges in fiscal control and the relationship between exports and external income. The study employs a quantitative methodology, with regression analysis and time series based on data from the Central Bank of Ecuador. The results show moderate GDP growth and gross investment, as well as fluctuations in liquidity and credit to the private sector, along with persistent inequality in income distribution. The conclusions indicate that while dollarization has contributed to stability, it has limited the country's monetary autonomy. Additionally, dependence on external factors, such as U.S. monetary policy, has affected Ecuador's economic stability. The importance of diversifying the economy, promoting policies that foster sustainable and equitable growth, and reducing vulnerability to external fluctuations is emphasized.