Regional Trade Research Articles

Article: Redefining Global Trade: The Interplay of Geopolitics, Economic Resilience, and Sustainability?

This paper explores the shifting dynamics of global trade amid rising geopolitical tensions between the United States, the European Union, and China. It traces the evolution from post-World War II American-led globalization to hyperglobalization, where China emerged as a global manufacturing powerhouse. While hyperglobalization spurred economic growth and lowered consumer prices, it also led to job losses, income inequality, and environmental degradation in developed economies.The COVID-19 pandemic and the ongoing US-China trade conflict have accelerated a shift towards economic resilience and national security. The US has responded by decoupling from China, particularly in critical sectors like technology and clean energy, viewing economic policy as integral to national security. Meanwhile, the EU, though aligned with the US in geopolitical concerns, remains economically dependent on China and has adopted a more regulatory approach. The EU seeks to balance its economic ties with China by leveraging trade regulations, such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD), to encourage Chinese investment while promoting higher environmental and social standards.The paper also examines the increasing influence of environmental policies on trade, noting how both the US and EU are integrating sustainability into their trade frameworks. However, this trend raises concerns about the potential for environmental regulations to become trade barriers, further complicating international relations.

Bilateral value chain reshaping through regional trade agreements deepening: Evidence from belt and road countries

This paper investigates the impact of Regional Trade Agreements (RTAs) on the reshaping of value chains from both domestic and regional perspectives by using national-level data from the Belt and Road countries. The findings indicate that the depth of RTAs among Belt and Road countries can not only enhance regional integration characterized by regional value chain inter-connections and promote the value chain upgrading of trading partners in the regional production system, but also facilitates the construction of domestic value chains, thus forming a new pattern of bilateral value chain reshaping. The conclusions still hold after addressing the potential endogeneity and robustness concerns. Mechanism test results show that the effects of productivity enhancement and institutional quality improvement are important channels for RTAs-deepening to promote value chain reshaping. Heterogeneity test results indicate that ‘WTO-X’ provisions of RTAs are more conducive to promoting value chain reshaping, and the promoting effect of RTAs-deepening on value chain reshaping is more significant for the manufacturing industry. These findings have important policy implications to further expand high-level opening-up, deepen RTAs provisions and actively participate in global governance.

COVID-19 and South Asia: an overview

The article explores the global impact of the COVID-19 pandemic, highlighting its severe effects on health systems, economies, and poverty levels. With an estimated 6.9 million deaths worldwide and the deepest recession since World War II, the pandemic had diverse regional impacts. South Asia, for example, experienced varying degrees of health and economic challenges; India faced over 500,000 deaths and a sharp economic downturn, while other nations in the region were less severely affected. The pandemic’s relatively brief duration, aided by global responses like lockdowns, social distancing, and rapid vaccine distribution, facilitated a quicker economic recovery, bolstered by unprecedented counter-cyclical policies. The article also examines South Asian case studies, including regional trade integration, the economic benefits of vaccination, and the socio-economic impacts on women in Bangladesh. It further discusses Pakistan’s response, Sri Lanka’s populist policies, and Indonesia’s monetary policy adjustments, offering valuable lessons for managing global health crises and economic downturns.

RCEP rules on cross-border data flows: Asian characteristics and implications for developing countries

ABSTRACT Data, as an essential production factor and a fundamental strategic resource in the digital economy era, have profoundly transformed production methods, lifestyles, and social governance, becoming one of the critical factors influencing the global competitive landscape. The United States and the European Union are actively making comprehensive arrangements around data flow issues, integrating their interests and values into data governance rules to influence other countries. Against the backdrop of increasingly intense global rule-making competition in digital trade, the Regional Comprehensive Economic Partnership (RCEP), led by the Association of Southeast Asian Nations (ASEAN) and actively promoted by China, covering 15 countries in the Asia-Pacific region, is sending a strong and powerful Asian voice regarding cross-border data flow rules. This article attempts to highlight the Asian characteristics of the data cross-border flow rules within RCEP through a horizontal comparison of regional trade agreements. These characteristics primarily include the principle of free cross-border data flow; fully protecting the host country’s national security through exceptional clauses; relatively lenient regulation of personal information protection; and adhering to the principle of non-reciprocity to respect and embrace countries at different development levels. Consequently, it is concluded that RCEP has constructed an Asian paradigm for cross-border flow of data that matches the development status of the Asia-Pacific countries and is worthy of emulation by other developing nations.

Insider Trading Regulation in the USA in the First Half of the 20th Century

Insider Trading Regulation in the USA in the First Half of the 20th Century

Small sharks, big problems: DNA analysis of small fins reveals trade regulation gaps and burgeoning trade in juvenile sharks.

Many shark species have been overexploited for international markets, including fins for shark fin soup in Southeast Asia. Previous studies highlighted the value of large, threatened shark species, regulated under CITES Appendix II. However, sampling biases may have overlooked small shark species. Here, we address this by identifying species from ~4000 small shark fins in Hong Kong. These fins included species not recorded in previous surveys, raising the market's species diversity to 106. Nearly 75% of the small fins came from small shark species and 58.1% of small species were threatened with extinction. We identified an important CITES listing gap: Trade in 19 small, threatened species, especially from the family Triakidae, is unregulated. In addition, a quarter of small fins come from large sharks, indicating that substantial exploitation of juveniles is occurring and may be affecting fisheries sustainability. Enhanced surveillance of small shark fin trade is essential to ensure effective conservation under emerging trade regulations.

Modeling complex network perturbations on resilience of the bilateral regional trade agreements

The resilience of cooperative relationships within a trade agreement network, when subjected to external shocks or internal disturbances, underscores the role of network structure in the robustness and adaptability of the trade agreement system. Addressing the gap in understanding the resilience of trade agreement network dynamics, this study constructs a complex network based on the bilateral regional trade agreements. By applying reciprocal dynamics to measure cooperative relationships among countries in the network, we model the impact of complex network perturbations on the resilience of bilateral regional trade agreements. Various complex network perturbations are considered, including node removal, link removal, and three orders of null models for network reshuffling, which correspond to the failure of a trade agreement, simultaneous agreement failure, and signing. Experimental findings reveal that network resilience gradually diminishes with the random removal of nodes and links. However, when nodes are removed based on their degree, removing nodes with larger degrees first proves to be more effective than the reverse. Specifically, network resilience decreases more rapidly when smaller nodes are removed. This highlights the significant contribution of countries with numerous trade agreements to the overall network resilience. In network reshuffling experiments, an increase in the order of reshuffling correlates with a gradual decrease in network resilience, ultimately converging toward real values. These findings emphasize the importance of network structure in maintaining the stability and adaptability of trade agreement systems.

Analysis And Evaluation of The Budgetary Effectiveness of The Introduction of The Customs Procedure of The Customs Warehouse in The Implementation of Cross-Border Electronic Commerce

In the context of the modern approach to organized cross-border electronic commerce, it becomes obvious that a sufficient level of demand for goods supplied from foreign Internet sites and distributed for the purposes of personal consumption of citizens is being formed. However, at this stage of regulation of cross-border trade, the following tasks remain unresolved: assessment of the applied practice of cross-border electronic commerce using customs warehouses in foreign countries; assessment of export-import potential for conducting cross-border operations in the Russian Federation, implemented in conditions of cross-border electronic sales. It is also necessary to have a bond policy for storing, saving and declaring goods imported from international trading platforms in Russia. In connection with the above, the article presents some results of the analysis of foreign practice in the fi eld of foreign cross-border trade. Problems have been identifi ed in the organization of foreign trade between Russia and the countries of the Eurasian Economic Union. The intermediate facts of the customs experiment in the EAEU are outlined, including the need for duty-free storage of foreign goods placed under the customs warehouse procedure. A new system of indicators is needed to assess the budgetary and socio-economic eff ectiveness of measures for the functioning of customs warehouses. As a result of the research, the article proposes algorithms for calculating the budgetary efficiency of introducing the customs procedure of a customs warehouse within the framework of activities in the single economic space.

Envoy Trade and the End of the Tribute Relationship between Vietnam and China, 1802–1885

ABSTRACT This article analyses the commercial activities between Vietnam and China that were conducted by diplomatic envoys (ambassadors) in the 19th century, focusing on three aspects: those that envoys coordinated during tribute missions or diplomatic visits, the trade that they facilitated in the form of buying and selling goods in the other country, and the commerce that occurred when envoys escorted distressed or expelled travellers back to their home country. The analysis reveals that the trade conducted by ambassadors through most of the century was a two-way commercial exchange and driven by mutual interests. However, China’s demand for foreign goods was significantly less pronounced than that of Vietnam. Furthermore, there was a notable degree of asymmetry in benefits and an unequal level of control and influence in this form of trade. This asymmetry, along with the increasingly diverse forms of exchange between China and other countries (especially the growth of private trade) and the expanding role of Western merchants in the regional trade network, eventually ended the dominance of ambassadorial trade in commercial relations between Vietnam and China by the late 19th century. It also contributed to the end of the centuries-long tributary relationship between the two countries.

Development of the global competitiveness of Russian regions: the concept and configuration of the "smart" complementarity

Purpose: is to work out the scientifically sound theoretical and methodical framework for the «smart» complementarity of trade flows, aimed at selecting and substantiating potential commodity niches in trade of Russian regions with foreign countries.Methods: the general methodological basis of the study is the critical analysis of the scientific literature that forms the theoretical and methodological basis for the global competitiveness of individual regions of a country presented in the theories of regional and spatial economy. The study has been carried out by methods of system, structural-logical and abstract-logical analysis.Results: the research resulted in some fundamental scientific novelties such as: the scientifically grounded theoretical concept of “smart” complementarity, which makes it possible to identify the presence of specific foreign trade niches in a geographical (country, region) and commodity contexts, based on an analysis of the complementarity of trade flows at the level of a Russian region and a foreign country, and assessment of the global competitiveness of the regional economy, as well as “fine” criteria that determine the activity of participants in foreign economic activity. The applied results included a specific configuration of "smart" complementarity – the algorithm for determining promising economic specializations of the region, allowing to combine trade statistics of a foreign country with data regional statistics, indicating the presence of foreign trade potential, taking into account regional economic specializations. The developed algorithm is intended for the use in an information and analytical system to support management decisions in the field of foreign economic activity of the region.Conclusions and Relevance: the concept and configuration of «smart» complementarity in their practical implementation in the form of an information and analytical system are proposed in the article to provide the participants of foreign economic activity with data on promising export groups for selected countries in Asia, Africa and Latin America. This approach allows moving the «center of gravity» of building trade and economic relations with foreign countries from the federal to the regional level.

Транстихоокеанское партнерство и всестороннее региональное экономическое партнерство как международно-правовая модель экономической интеграции в Азиатско-Тихоокеанском регионе

The article explores international law aspects of the contemporary integration processes in the Asia-Pacific with a specific focus on such relatively new formationsas the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Based on the WTO law provisions with regard to the free trade areas for goods and services, both Partnerships significantly widen the scope of regulated inter-governmental relationships, which allows considering the TPP and the RCEP as a fundamentally new form of the regional trade agreements. Having a fixed number of participating states and a system of institution with their functions and competencies, the Partnerships do not represent inter-governmental organizations and are vested with no legal capacity or, especially, supranational powers. However, this does not undermine the trade and economic significance of the Partnerships while also making them an attractive model of the soft integration structure between the states having different level of economic development, located in different geographical regions and bound with their own integration obligations under bi- and multilateral (subregional) trade agreements. The founding agreements of the Partnerships are typical “WTO plus” arrangements combining the provisions on liberalization of trade in goods and services with the parties’ mutual obligations in the fields of investments, sustainable development, competition, administrative and legal cooperation. At the same time, applicability of parallel bi- and multilateral trade agreements between the Asia-Pacific states, including those within ASEAN, forms a complex multilayer regulation of foreign trade and entails a risk of legal uncertainty for economic operators.

Legal regulation of distance trading: problems and prospects

The article examines the problems of legal regulation of the remote method of selling goods in the context of the development of digital technologies and electronic commerce. Special attention is paid to the analysis of the legal features and peculiarities of remote trading, primarily using the Internet. The absence of significant administrative barriers involving strict state regulation of electronic commerce not only contributes to its development, but also, as judicial practice shows, generates negative consequences related to the protection of the rights of its participants. The author concludes that the balance of public and private interests in this case can been sured by creating a uniform terminological apparatus in the field of distance trading, more detailed regulation of the rights and obligations of its participants, and improving dispute resolution mechanisms.

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 triangular nexus of trade, institutional quality and economic growth in China-ECOWAS and US-ECOWAS relations

This study explores the relationship between trade, institutional quality, and economic growth in the ECOWAS region from 2000-2022, with a focus on trade interactions with China and the US. Using the AMG estimator and IV-2SLS methods, the study disaggregates trade data into imports and exports and categorizes institutional settings as either strong or weak. Results indicate that trade with China and the US positively impacts ECOWAS economies, especially through imports. The positive effects are amplified in countries with strong institutional frameworks. To foster economic growth, policymakers should strengthen governance, enhance transparency, and reduce corruption. Emphasizing trade diversification and supporting export-oriented industries, alongside financial sector reforms, are crucial for sustainable development. This study offers a detailed analysis of how trade and institutional quality interact to influence economic growth in ECOWAS, providing critical insights for institutional reforms and trade strategies in the region.

Possible development path for agricultural economic and trade cooperation in FTAAP: A numerical simulation

Exploring the path of developing agricultural economy and trade cooperation in the Free Trade Area of the Asia Pacific (FTAAP) is of great practical significance for deepening economic integration in the Asia Pacific region and strengthening regional agricultural development. This paper proposes three feasible paths based on RCEP, CPTPP, and the integration of RCEP and CPTPP to establish FTAAP. Moreover, a dynamic computable general equilibrium model of global trade is used to simulate the macroeconomic effects and the agricultural effects represented by China in forming FTAAP under these three paths. The research results show that six common policy nodes will promote macroeconomic growth in participating countries, and the effects of the in-depth implementation of RCEP and CPTPP will be greater than those of the initial implementation. Due to the broader base of participating economies and the higher level of openness, establishing FTAAP under Path 3 will yield greater macroeconomic effects and agricultural effects. Therefore, the path based on the integration of RCEP and CPTPP is an optimal selection for economic and trade cooperation of agriculture in FTAAP. All parties should actively overcome the obstacles to forming FTAAP and provide a stable internal and external industrial development environment for regional agricultural economic and trade cooperation.

Bangladesh-China-India-Myanmar (BCIM) – Economic corridor: an opportunity for regional connectivity and development cooperation in south and Southeast Asia

China is the largest country in terms of the purchasing power parity (PPP); and the country has started to invest hugely in the developing countries of the Southeast Asia, South Asia, Africa, Central Asia and the Middle-East. It wants to be connected with Europe, Africa and Middle East through its economic corridors such as BCIM, BRI, MSR and OBOR. It can be mentioned here that most of the South and Southeast countries are poor and need huge investment in the infrastructural projects. Therefore, the concept of BCIM is a win-win geostrategic and economic policy for South, Southeast and China. On the other hand, India is largest country in terms of the size of population; and its economy is also rising rapidly. And this country also needs huge investment and development cooperation from the different countries including China. Besides, Bangladesh is a lower middle-income country; it also wants to grow rapidly in terms of economic growth, transfer of technology and infrastructural developments. On other hand, Myanmar is a developing country in Southeast Asia which requires vast developments, transfer of technology, foreign investments in the coastal regions and regional connectivity for economic growth and development. Therefore, carrying out study on BCIM economic corridor is extremely important in the region. It’s a qualitative study in the context of mythology. This study has found that implementation of BCIM economic corridor is very important for South and Southeast Asia including Bangladesh for regional connectivity, trade and investment and development cooperation.

Reflecting on the 1775 Mount Gamalama Eruption: Lessons from Indigenous Knowledge for Sustainable Development in Ternate Island, North Maluku Province, Indonesia

The volcanic Molucca islands have provided the world with their precious cloves, which have been highly valued in medicinal properties for millennia. Cloves have antibacterial, antiviral, and analgesic characteristics. They were considered silver bullet cures in medieval epidemics and the early COVID-19 pandemic response. Cloves originated from Ternate Island, the center and regional trade hub of the Molucca Islands. Its cloves had reached Babylonia 4,000 years ago, marking its importance in global trade. Qualitative research was conducted on the 1775 Mount Gamalama eruption's impact on indigenous knowledge development. To confirm the findings, I conducted field visits, key informant interviews, field observations, and a literature review. Tolire Lake is an apparent landmark in Takome village, which has a sacred white crocodile, a java plum hill, a lush forest, stunning landscapes, and an underwater mythical village. The residents are testaments to human resilience, preserving indigenous knowledge and turning it into disaster risk reduction tools. They built settlements on safer ground and designated parts areas for conservation-based tourism. In addition, modern science introduction enhances disaster early warning and alert systems and empowers indigenous communities. Understanding indigenous knowledge and wisdom is critical to building resilience and sustainability through disaster risk reduction (DRR) efforts. Indigenous knowledge produces lessons in environmental protection, social justice, and economic growth. The world can learn from indigenous and scientific knowledge combined to sustain the island, its people, and its prosperity.

Regional Trade and Financial Mobilisation as Preconditions for Economic Growth: The Case of ECOWAS

This empirical study delves into the Economic Community of West African States (ECOWAS) and its impact on economic growth through regional trade and financial mobilisation amongst its 15 member states. Through examination of data from 2005 to 2022, the study took into consideration a blend of static and dynamic panel data econometrics to explore nuances of trade openness, foreign direct investment (FDI), Domestic Credit to the Private Sector (CPS), and other factors influencing Real Gross Domestic Product (RGDP). The findings highlight a positive relationship between trade openness, FDI and economic growth, emphasising the importance of regional trade integration and foreign investment in driving economic development. Conversely, domestic credit shows a negative association with economic growth, thereby indicating the need for cautious assessment of credit allocation and financial sector efficiency. The study also reveals the important role of institutional quality in fostering economic growth, thereby recommending for policy reforms that strengthen governance frameworks and promote institutional resilience. Astonishingly, the analysis shows no significant relationship between inflation, transportation infrastructure, and economic growth. Theses insights contribute to a clear understanding of the dynamics between regional trade, financial mobilisation, and economic development within ECOWAS, thereby offering valuable implications for policymakers, with the aim of enhancing economic growth and integration in the region.

Regional trade agreements and economic integration in Africa: assessing the impact of the African Continental Free Trade Area (AFCFTA)

This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa’s dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.

Left to Live and Die: Resource Security and the Biopolitics of Land Stockpiling in China

AbstractBeginning in 2007, the Chinese state used liberalising policy and funding to encourage the expansion of large‐scale grain farming. Despite this support, many of the new farms have struggled financially and folded. Drawing on Foucauldian biopolitics and resource security literature, I argue that, with modernised agriculture, the state primarily sought to create not commercial farms, but the redundant farming infrastructure needed to buffer its growing reliance on food imports, abide by global trade regulations, and sustain its urban export manufacturing economy. These balancing efforts harmed commercial farmers: land commodification and policy funding incentivised urban government officials to intervene in rural land‐use planning, but low global market aligned grain prices disincentivised them from considering the place‐particular viability of their plans for producers. This article contributes to critical agrarian change literature by highlighting how modernist states become beholden to rational scientific techniques and sacrifice rural areas for increasingly vulnerable urban areas.