Reduce Transaction Costs Research Articles

The Role of Logistics and Infrastructure in Promoting International Trade

This study aims to explore the role of logistics and infrastructure in promoting international trade. Through systematic analysis of relevant theories and practical impacts, the research finds that logistics and infrastructure play key roles in reducing transaction costs, enhancing trade speed and reliability, and promoting market connectivity and integration. Specifically, an efficient logistics system can optimize transportation, warehousing, distribution, and inventory management, thereby improving the overall efficiency of international trade. Meanwhile, modern transportation, information and communication, and energy infrastructure provide robust support for international trade, facilitating efficient global supply chain operations and economic growth. However, the logistics and infrastructure sectors also face challenges such as infrastructure aging, cross-border logistics barriers, environmental issues, and sustainability concerns. In the future, smart logistics, green logistics, public-private partnerships, and international cooperation will become important development trends. Based on these findings, this paper proposes that governments should formulate supportive policies and improve infrastructure investment mechanisms, while enterprises should enhance logistics optimization and technological innovation. By conducting an in-depth study of the role of logistics and infrastructure in international trade, this research aims to provide theoretical support and practical guidance for policymakers and enterprises, promoting sustainable development in international trade.

Tests for market failures and overcoming transaction costs barriers to market participation in Afghanistan

AbstractSimilar to other fragile poor countries, the majority of the rural population in Afghanistan depend directly or indirectly on small-scale farming for their livelihoods, and poor infrastructure and other barriers restrict access to markets and services, making improving access to local input markets a significant challenge for policymakers aiming to increase productivity. This paper offers empirical evidence addressing two important issues for smallholder participation in input markets: are rural markets incomplete or failing and how do transaction costs affect participation in factor markets? Pooled cross-sectional data from three waves of nationally representative surveys between 2011 and 2016 with a sample of nearly 21,000 households are used. The analysis first tests and rejects the separability hypothesis that household production and consumption decisions are independent which can be interpreted as evidence of market failures. A control function approach with instrumental variables to address endogeneity is employed to estimate household input market participation decisions. Ownership of or access to information and communication technology and transport equipment are used as proxies for transaction costs. Results confirm that lower transaction costs increase input market participation and expenditure on inputs by farm households. Additionally, households with better access to roads and district or provincial market centres have higher market participation and expenditure on input. Reducing transaction costs plays an important role in input use, potentially increasing productivity and incomes.

Perancangan UI/UX pada Toko Rental Outdoor Adventure Sphere Metode Design Thinking

The development of the digital economy in developing countries is expected to encourage economic growth, increase resources and workforce efficiency, provide access to international markets, and reduce transaction costs. The research aims to offer practical and affordable solutions for those who want to explore nature without having to buy their own equipment and provide information and advice on destinations, safety tips and equipment guides, as well as supporting the adventure community. This design uses the Design Thinking method, which is an iterative process that aims to understand users, define problems in depth, and find solutions that meet their needs. The result of this research is the Adventure Sphere Application Prototype, which contains profile, homepage, product display, basket and product video features. It is hoped that this application will make it easier for buyers to rent outdoor equipment and this application will also provide useful information to renters regarding the use of outdoor equipment.

Does regional culture of integrity impact corporate total factor productivity? Evidence from China

AbstractThis study examined Chinese A‐share listed companies in Shanghai and Shenzhen from 2016 to 2020 to explore the relationship between regional culture of integrity (COI) and enterprise total factor productivity (TFP) and the internal mechanism of regional COI on TFP. The findings showed that regional COI is conducive to promotion of TFP. The mechanism test revealed that optimizing the business environment, promoting corporate technological innovation, and reducing transaction costs are three essential mechanisms. Further, the results indicated that the enhancement effect of regional COI on TFP is more significant in non‐SOEs and enterprises with high financing constraints.

Intervention Options for Enhancing Smallholder Compliance with Regulatory and Market Standards for High-Value Fruits and Vegetables in Rwanda and Zambia

Agriculture is vital for economic growth in sub-Saharan Africa. In Rwanda and Zambia, the sector drives economic output, particularly the horticulture sector, which has emerged as a significant contributor to export revenue and employment for resource-poor rural communities. As agri-food value chains become globally connected, there are increasing concerns about food safety and both the social and environmental sustainability benefits of production, which has underscored the need for producers to comply with certain regulatory standards. This paper uses a value chain analysis approach to assess the factors influencing compliance among smallholder fresh fruit and vegetable (FFV) producers in Zambia and Rwanda, and identify practices essential for achieving widespread compliance, to enhance the competitiveness of the sector. The data were gathered from 340 FFV farmers and key informants using structured questionnaires. The results reveal that the value chains for target FFVs are still traditional, predominantly targeting local markets. These markets pose low barriers to entry for smallholders, and often with few safety and quality requirements. As such, there remains a paucity of understanding of market needs and regarding quality and safety standards amongst smallholders, which, coupled with low-input, low-technology farming methods, and inadequate pre- and post-harvest handling, limit the market potential. To bridge these gaps, this study recommends organising farmers into legally recognised entities, to enable access to compliance information, reduce transaction costs, and provide access to high-quality niche markets through public–private partnerships. Countries also need to develop industry codes of practice and quality management systems and support farmers to adhere to them.

On the issues of business negotiation processes and prospects for overcoming them through large language models

This article investigates the potential of large language models in overcoming problems within the business negotiation process. Typical issues encountered in business negotiations at various communication stages, which highlight the necessity for systematic resolution (such as breaches of good faith principles, ineffective communication strategies, lack of clear planning, etc.), are identified. The study focuses on a key negotiation problem related to the increasing transaction costs of businesses due to unmet interaction results. It demonstrates how large language models can optimize the negotiation process at every stage: from preparation (gathering and analysing information, scenario modelling) to conducting negotiations (contextual analysis, proposal formulation) and implementing agreements (execution control, monitoring). The study highlights that large language models can ensure: objectivity and speed in information processing; improved planning and forecasting; enhanced communication efficiency; and reduced transaction costs. The findings of the research conclude that the application of large language models is a promising development direction for optimizing the business negotiation process, contributing to the reduction of transaction costs and strengthening companies’ competitiveness by expanding human capabilities in managing business communications.

The contribution of digitization to successful international expansion: lessons from Decathlon’s strategic movements

Purpose The purpose of this paper is to explain to what extent digitization is an opportunity to international development of the firm by drawing on the international expansion of the French Decathlon group. The retailer and manufacturer have adopted a number of interesting strategies, following “specific movements,” as the authors have noted. Design/methodology/approach Data were collected using the Europress database. The authors compiled press articles about the development of the Decathlon company and discussed the various stages of the brand's growth to enhance understanding and propose refinements to the current knowledge of companies' internationalization. Findings The findings support the idea that digitization of the distribution and production chain reduces transaction costs and accelerates the conquest of market share. Digitization brings new experiential knowledge to companies and facilitates internationalization. Decathlon's success lies not in its resources or in the art of managing its internal capabilities, but rather in the ability to combine organizational resources with key external capabilities (development of technological partnerships). Originality/value The originality of this research lies in the logic of deepening the steps of companies’ internationalization integrating new technologies that shift current comprehension of this phenomenon. After the COVID-19 period, digitization is accelerated and represent threats and probably opportunities to break down barriers to companies’ abroad expansion.

Predicting cryptocurrency price trends using artificial intelligence methods

This article comprehensively explores multiple aspects of cryptocurrencies and their price forecasting. Firstly, the article introduces the definition of cryptocurrency and its development process on a global scale, especially focusing on the launch of Facebook Libra and China's central bank digital currency, highlighting the importance and influence of digital currency in the global financial market. Subsequently, the article analyzes the advantages of digital currencies over traditional currencies, including improving economic transaction efficiency, reducing transaction costs and enhancing transaction transparency. Finally, through specific experimental analysis, the effectiveness of using the deep learning model CNN-LSTM to predict the price of Bitcoin is demonstrated, and the directions of future research and optimization strategy are proposed. In summary, this paper comprehensively presents the research status and prospects of cryptocurrency and its price prediction field through systematic introduction and analysis.

Examining the long-run relationship between stock market development and Nigerian economic growth

Purpose This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020. Design/methodology/approach Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis. Findings The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth. Research limitations/implications The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange. Originality/value The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.

Why my doctor is a Kantian and my car mechanic is an Aristotelian: bringing marketplace ethics into the classroom

This article makes the case for bringing ethics more explicitly into the economics classroom. It outlines a theory of pluralist ethical institutions, explains how these may solve certain problems in markets and relates them to a model of human behaviour proposed by Adam Smith. Markets operate not only on the foundation of outcome incentives tied to contracts and property rights, but also on the basis of Kantian duty and Aristotelian virtue. These latter concepts explain the development of deeper trust, which reduces transaction costs and risks. Trust can be achieved through reputational effects in repeat trade and from sharing sentiments and principles. Smith’s moral sentiments model describes how individuals come to develop the self-control needed to obey social norms and laws relating to honesty and treating others with respect. The article provides examples of markets that are enhanced by non-consequentialist ethical institutions, as well as some of the constraints imposed by them. It thus provides a strong case for dealing with ethics in standard economics courses and it makes some suggestions for how this can be done simply and effectively.

Analysis of the Impact of Blockchain Technology Adoption on Operational Efficiency and Consumer Trust in Digital Business

This research intends to assess the influence of blockchain technology adoption on operational efficiency and consumer trust in digital enterprises. Blockchain technology, with its decentralized, transparent and safe properties, is predicted to have a favorable impact on several elements of business operations and boost consumer trust. The research method employed is a quantitative approach by collecting data through surveys and interviews with organizations that have incorporated blockchain technology. Data analysis was carried out using descriptive and inferential statistical techniques to test the stated hypotheses. The research results demonstrate that the deployment of blockchain technology greatly boosts operational efficiency, particularly in terms of reduced transaction costs, increased processing speed, and reduced operational errors. Apart from that, customer confidence has also improved dramatically, notably in areas of openness, security and data protection. These findings demonstrate that blockchain technology not only contributes to enhancing the operational performance of enterprises, but also boosting the trust relationship between firms and consumers. The conclusion of this study is that the implementation of blockchain technology has a considerable positive influence on operational efficiency and consumer trust in digital enterprises. Therefore, organizations working in the digital ecosystem are recommended to explore integrating blockchain technology as a strategy to boost competitiveness and consumer trust.

Transnational law as an enabler of digital trade

Abstract History records that trade and trade finance, vital to economic advancement and prosperity, have benefited profoundly from technological evolution and accompanying supportive transnational law. Today, the blossoming of technology, most notably digitalization, has the potential to greatly facilitate both domestic and international trade and, just as importantly, to assist in fulfilling the environmental and social goals critical to meet the UN Sustainable Development Goals and the Paris Agreement. However, obstacles to digital trade arise from the existing legal and regulatory frameworks. Accordingly, legal reforms are overdue. Impetus is now needed to create a fully supportive transnational legal environment. There are several examples of where the technology exists, but the law frustrates its effective deployment. The laws of most jurisdictions require certain trade documents (like bills of lading, payment, and title instruments) to be recorded in a tangible form (paper). The International Chamber of Commerce (ICC) estimates that digitalizing trade documents could reduce transaction costs by 80 per cent and eliminate billions of paper documents in the trade system. A limited number of jurisdictions have reformed their laws to address this gap and innovative private sector actors have taken the initiative to benefit from these reforms. An example includes the development of the Distributed Ledger Payment Commitment by BAFT that relies on narrow but effective changes in Delaware law governing promissory notes; others chose to be governed by Singapore law, which recently amended to align with the Model Law on Electronic Transferable Records (MLETR). Law can be an enabler of digital trade. To this end, work has begun, including by the ICC and the International Institute for the Unification of Private Law. But the reform needs to be accelerated. This article considers the benefits of digital trade, key legal obstacles, and how transnational law can enable innovation and digitalization not only of the vast volumes of paper but of the entire trade and trade finance processes.

Developing China's Hydrogen Economy: National Regulation Through Local Experimentation

AbstractHydrogen is playing an increasingly important role in China's energy and climate policy, with significant implications for the development of a global hydrogen industry. However, China's approach to the regulation of hydrogen, and, in particular, the role of local authorities in promoting hydrogen refuelling stations and fuel cell vehicles, has so far received limited scholarly attention. This article aims to contribute to the literature on hydrogen regulation and to the transnational environmental law scholarship on decentralization by examining how China promotes hydrogen at the national and local levels. The case of China shows how, in jurisdictions with a sufficient degree of decentralization, local initiatives can play a key role in driving the development of hydrogen. By testing different approaches to hydrogen regulation, local experimentation helps to manage the uncertainties associated with this new energy source. At the same time, China's experience confirms the ‘environmental federalism’ theory on the importance of regulatory harmonization to reduce transaction costs and local protectionism. As the Chinese government develops its national regulatory approach on hydrogen, it has the opportunity to take into account both local and international experience and engage with other major economies in an effort to promote an internationally harmonized regulatory landscape.

Advanced AI Solutions for Securities Trading: Building Scalable and Optimized Systems for Global Financial Markets

Integrating Artificial Intelligence (AI) into securities trading software has revolutionized the financial markets by enhancing scalability, efficiency, and optimization. This paper explores the historical evolution and advancements in AI-driven trading systems, emphasizing their impact on global financial markets. The study investigates how machine learning, deep learning, and other AI technologies enable sophisticated trading strategies, improve market liquidity, and reduce transaction costs. It also addresses the challenges AI integration poses, including decision-making opacity, bias, increased market volatility, and data privacy concerns. The paper argues for the need for scalable architectures, optimization algorithms, and transparent governance to mitigate these issues. Additionally, human oversight remains crucial for evaluating AI outputs and maintaining accountability. This research aims to provide a comprehensive analysis of advanced AI systems in securities trading, highlighting their potential to enhance market efficiency and stability.

A taxonomy of business models of digital care platforms in Spain

AbstractIn the last few years, the proliferation of digital labour platforms has led to the transformation of business models and labour relations in an increasing number of economic activities, including highly feminized and informal traditional sectors, such as care and domestic work. Drawing on an analysis of 37 digital care platforms in Spain, this research compares the distinctive features and structural power dynamics they engender, and it constructs a taxonomy of business models of these care platforms. By analysing the main features of their operational models, we are capable of distinguishing three main types of platforms: marketplace, on‐demand, and digital placement agencies. First, the paper argues that the distinctive features of each digital platform business model have differentiated impacts on working conditions in terms of access to tasks, remuneration, flexibility and means of control. This differentiation allows us to understand what is transformative and what is continuous in platforms' precarization or formalisation of care work and working conditions of carers, mainly women and migrants. Each business model has its differentiated outcomes in terms of labour control and reorganization of women's and migrants' reproductive work. Second, more broadly, while digital care platforms may have contributed to facilitating workers' access to jobs, reducing transaction costs and standardising processes, this has often been through the creation of more flexible and insecure forms of work and to increased market pressures. Therefore, this study contributes to existing research addressing the degree of formalization of labour relations in digital platform work through a nuanced analysis of their business models.

Назначение справедливых цен на основе смарт-контрактов (на примере музейной организации)

The article is devoted to the problem of ensuring fair pricing on the basis of smart contract technologies. Through the use of the Internet of Things, electronic payments and big data analysis, a more precise evaluation of consumption can be made based on measuring the time of various consumer actions. The method of research is the analysis of the decision-making process on the price, as well as the impact of modern digital technologies on it. The result of the study was the identification of the consequences of precise value in pricing and the pro-cess of concluding market agreements, including 1) the extension of the tariff payment model to the area of dis-crete sales of goods; 2) the consideration of consumers' actions as conditions of pricing and the subject of agreements; 3) inclusion of the transfer of information by consumers about themselves in the subject of ex-change; 4) reduction of transaction costs due to the automation of forced execution of contract terms. Conclu-sions are presented about the possibilities of comparing the value of goods by the time of their consumption in the sum of all human lives on the planet and the development of lean technologies for the use of limited resources for the maximum well-being of people in the world.

Research on value creation path of logistics platform under the background of digital ecosystem: Based on SEM and fsQCA methods

Digitalization and platform ecosystem have subverted the value creation mode between traditional logistics actors and brought new value additions. Few studies have been done to investigate the influencing factors prompting such value creation of digital platform ecological cooperation in the Chinese logistics industry. The study bridges the gap by using structural equation modeling and fuzzy-set qualitative comparative analysis methods to investigate data from 347 Chinese logistics firms cooperating under the logistics platform. Findings:(1) identification of customer value proposition, complementary cooperation, and multi-party interaction had an indirect influence on logistics service value realization. While transaction cost reduction and digital innovation had a direct influence. (2) Digital capabilities have a positive moderating effect on the relationship between transaction cost reduction and value realization. (3) Comparing the configurations of value realization and ～value realization, it is found that enterprises cannot create value if they only save costs without operation, and should improve digital capabilities to reduce transaction costs. At the same time, the identification of customer value proposition is the source of value creation.

Cluster approach to regional oil and fat subcomplex development

The article studies regional oil and fat subcomplex development in terms of the cluster approach application based on coordinating economic interests of sunflower seed producers, processing and marketing organizations under the condition of appropriate government support, as well as methodological, organizational, and information support by the relevant structures. On the basis of the production and economic indicators analysis it has been revealed that in the Saratov region sunflower production is quite effective, but the lack of interconnection between the oil and fat subcomplex subjects leads to uneven production volumes and highly varying profitability in the context of municipal districts of the region and lost profits formation at all stages of product movement. The author has developed a scheme of the regional oil and fat cluster subjects territorial location, represented by the areas of the cluster production core (with sunflower production volumes above the average regional level), production linking areas (with sunflower production volumes below the average regional level), as well as areas with developed infrastructure (with the presence of processing and storage facilities, and transportation hubs), allowing to establish an effective logistics system with mutually beneficial cooperation between regions. On the example of sunflower seed producers in the Saratov region clustering efficiency has been shown, which consists in production costs reduction as a result of transaction costs reduction and sales revenue growth due to the increase in the sunflower purchase price. The study results can be used in programs and proposals development to strengthen integration ties between the agro-industrial complex subjects.

Reducing transaction costs using intraday forecasts of limit order book slopes

Reducing transaction costs using intraday forecasts of limit order book slopes

The Impact of Digital Currency Policies on International Trade and Investment

This paper examines the multifaceted impact of digital currencies on regulatory frameworks, cross-border transaction efficiency, and their integration into mainstream financial systems. Through an in-depth analysis of global policy landscapes, compliance challenges, market stability implications, and the burgeoning role of Central Bank Digital Currencies (CBDCs), we uncover the dynamics shaping the future of digital finance. Employing statistical analysis, econometric models, and case studies, we explore the reduction in transaction costs, increased speed and accessibility, and the security concerns associated with digital currencies. Furthermore, we analyze the trends in digital currency adoption and the potential for their integration with traditional financial systems. Our findings highlight the complex interplay between technological advancements and regulatory strategies, offering insights into the opportunities and challenges digital currencies present for the global economy.