Specialization In International Trade Research Articles

From local to global: A theory of public basic research in a globalized world

We analyze public basic research in a multi-country, multi-industry environment with international trade. Basic research generates ideas, which firms take up in applied research to develop new varieties. A country’s specialization in international trade thus determines which ideas can be commercialized domestically. We demonstrate that the equilibrium is consistent with key empirical patterns. We then show that national investments may cause inefficiencies along three dimensions: (1) There is typically too little total investment in basic research. (2) Basic research is too heavily concentrated in industrialized countries. (3) Basic research may not be sufficiently directed to support innovation in complex, high-tech industries. These inefficiencies can rationalize international coordination of basic research investments or support policies such as the Bayh–Dole Act.

DIPLOMACY AND TRADE AGREEMENTS: A REVIEW OF NIGERIA'S DIPLOMATIC APPROACHES AND THEIR IMPLICATIONS FOR U.S. TRADE STRATEGY

This paper meticulously examines Nigeria’s diplomatic approaches and their consequential implications for U.S. trade strategy, aiming to elucidate the multifaceted dynamics inherent in international relations and trade agreements. The methodological framework employed encompasses an extensive exploration of pertinent literature, strict criteria for study inclusion, and in-depth techniques for data examination, providing a holistic perspective on the progression of trade pacts, alliances, and diplomatic interactions between Nigeria and the U.S. The results reveal a significant influence of diplomatic measures in shaping trade norms and legislations, reflecting mutual economic stakes and the consequences of diplomatic ties on trade resolutions. A comparative study with other countries was undertaken to analyze the efficacy of Nigeria’s diplomatic methods, revealing achievements and constraints in diplomatic maneuvers and approaches. The paper concludes that the consolidation of Nigeria-U.S. trade bonds is pivotal in fostering economic resilience and mutual development, necessitating adaptive strategies and integrative approaches in diplomacy and trade negotiations. Recommendations include the integration of environmental considerations in trade policies, developing adaptive trade strategies to navigate dynamic specialization in international trade, optimising financial resources, and constructing more resilient food systems. These proposals aim to fortify Nigeria-U.S. trade alliances, fostering a more inclusive, equitable, and sustainable global trade environment.

Izvozna konkurentnost i komparativna prednost Republike Srbije

The paper deals with the analysis of Serbian export competitiveness, i.e. the identification of comparative advantages and the degree of specialization in international trade from 2011 to 2020. The Standard International Trade Classification (SITC Rev. 4) was used to classify the sectors. Results were obtained by calculating the RCA, RSCA and TSI indices and constructing a competitiveness matrix. The results show that Serbia achieves comparative advantages in several industries, but their export share in total exports of Serbia is extremely low. On the other hand, in most sectors, which dominate in total exports with their share, there is no comparative advantage. Also, the results of the TSI are discouraging and show that Serbia does not specialize in exports or that its economy is predominantly dependent on imports. In addition, the competitiveness matrix, which presents export growth rates in Serbia and the world, shows that all sectors are promising and have accelerated growth. Based on the analysis of all indicators, it was concluded that Serbia has low export competitiveness with the identification of industries that have the potential for improvement.

ДИВЕРСИФИКАЦИЯ РОССИЙСКОГО ЭКСПОРТА: РЕГИОНАЛЬНЫЙ АСПЕКТ

The task of overcoming the country’s raw material specialization in international trade is the most important in the current economic situation. For a long time, Russia’s place and role in the world market were determined by the export of energy resources. The deterioration of the situation in the fuel and raw materials markets in recent years, associated with unfavorable price dynamics, the introduction of new principles of energy consumption in Europe and the world, quantitative restrictions on the import of Russian products emphasize the urgency of reforming the export structure of foreign trade of the Russian Federation and increasing the importance of non-primary non-energy exports in it. At the same time, the growth of exports of domestic nonprimary goods to world markets is significantly constrained by the intensification of competition and the strengthening of protectionist tendencies. In these conditions, the policy of the state in the field of support of national exporters in order to ensure the competitiveness of their products is of no small importance. Export promotion services from the state are widely used in world practice, national integrated systems are being formed to assist exporters at all stages of the implementation of transactions. The article offers an analysis of the main directions of the Russian state policy aimed at increasing the share of processed products in the foreign trade of the Russian Federation. The author characterizes the commodity groups that form the basis of the country’s non-energy exports and its regional specifics. The largest partner countries of the Russian Federation in the trade of non-primary goods have been identified. The prospects and directions of development of Russian non-resource exports are analyzed.

Trade and Investment Relations of India & ASEAN Countries: Opportunities & Challenges

Global-localisation is the development by which regional economics, societies and cultures incorporated through a global network of political ideas through communication, transportations and trade. The movement towards the expansion of economics and social ties among countries through the spread of corporate institutions and capitalist philosophy leads to the shrinking of the world. The result is the coming out of the specialization in international trade in term of exchange of the goods, services and resources. This paper puts more stress on the trade potential of Indian with other south eastern countries. Study includes revealed comparative advantages, intra-industry trade and trade potential indices. It assesses and analyses challenges and recommendation to overcome those challenges.

Положение России в мировой экономике: сценарии и прогноз

<span>Зависимость развитых стран от импорта промышленных товаров, разбалансированность внешнеторговых потоков, экологические ограничения и высокое социальное расслоение наряду с беспрецедентной долговой нагрузкой разрушают сложившуюся модель глобализации. В этих условиях возрастает актуальность разработки сценариев развития мировой экономики и поиска новых вариантов интеграции экономики России в мировое хозяйство, альтернативных сырьевой специализации. Данная статья посвящена рассмотрению сценариев развития мировой экономики и оценке потенциала экономического роста в России в условиях сохранения сырьевой специализации в международной торговле при различных сценариях развития мировой экономики. С учетом разработанных сценариев рассматриваются преимущества и недостатки отдельных вариантов интеграции экономики России в мировое хозяйство.</span>

From Local to Global: A Unified Theory of Public Basic Research

We analyze public investment in basic research in a multi-country, multi-industry environment with international trade. In our economy, basic research generates ideas which private firms take up in applied research to develop new varieties. Such development requires industry-specific know-how. A country's current specialization in international trade thus determines which ideas can be commercialized domestically. We demonstrate that the equilibrium is consistent with key patterns observed from the data. We then compare basic research investments of national governments with optimal investments of a global social planner. We show that national investments are inefficient along three dimensions: (1) There is typically too little total investment in basic research. (2) Basic research is too heavily concentrated in industrialized countries. (3) And basic research is potentially insufficiently directed to support innovation in complex, high-tech industries.

Economic analysis of exporting Serbian honey

Researching competitiveness of Serbia’s honey sector represents an introduction into a complex issue of dynamic changes with complex heterogenic and long term socio-economic implications. Tracking changes of comparative advantages in export during Serbia’s transition period and accession to the EU is significant for viewing the effects that trade liberalization and integration in international streams have on the sensitive honey sector. The research started from indicators of demand and level of foreign trade in the EU. Quantitative indicators of Serbia’s honey export on European market were shown in order to confirm Serbia’s potential and dominant presence. Research subject of this paper is the analysis of Serbia’s comparative advantage in exporting honey and specialization in international trade with the EU. The Balassa index, Revealed comparative advantages index and Revealed symmetric comparative advantage index were used with the goal to measure the level of Serbia’s comparative advantage, Grubel Lloyd Index and Trade Balance Index were used to measure the specialization level. Research results point to a positive comparative advantage value in exporting Serbia’s honey to EU and inter-industry exchange character.

The textile and clothing industry in the Danube region countries: Comparative advantages

The subject of this study is the analysis of comparative advantages of international export in the TC (textile and clothing) industry of the Danube region countries with a special focus on Serbia. The aim of this study is to analyze the comparative advantage and suggest possible economic and legal measures to strengthen export. This study observed export per capita and participation of TC industry export, and measured the comparative advantage and specialization of the Danube region countries in the period between 2005 and 2013. In the course of research, we used the Balassa (RCA) and Lafay (LFI) indexes of comparative advantage, and the GL index and RUV index of horizontal and vertical specialization in intra-industry exchange. The research has revealed positive comparative advantage in the export of the textile industry in the Czech Republic, Germany and Slovenia. In the clothing industry export, positive comparative advantage was revealed in the cases of: Bulgaria, Hungary, Moldova, Romania, Slovakia and Serbia. The research has shown a positive comparative advantage of the TC industry sector in Serbia. The results of our research into the TC industry reveal the existence of correlation between comparative advantage and intra-industry specialization in international trade.

Revealed comparative advantage and the alternatives as measures of international specialization

This paper provides an analysis of Balassa's 'revealed comparative advantage' (RCA). It shows that when using RCA, it should be adjusted such that it becomes symmetric around its neutral value. The proposed adjusted index is called 'revealed symmetric comparative advantage' (RSCA). The theoretical discussion focuses on the properties of RSCA and empirical evidence, based on the Jarque- Bera test for normality of the regression error terms, using both the RCA and RSCA indices. We compare RSCA to other measures of international trade specialization including the Michaely index, the Contribution to Trade Balance, Chi Square, and Bowen's Net Trade Index. The result of the analysis is that RSCA—on balance—is the best measure of comparative advantage.

Macroeconomic Performance and International Competitiveness of the Agro-food Sectors in the EU Countries: Implications for the Future CAP

The study is aimed at comparison of macroeconomic performance of agro-food sectors in the national economies of the EU countries and competitiveness of these sectors reflected by international trade specialization. To assess macroeconomic performance of the agro-food sectors we used data on employment, gross value added and output extracted from the Eurostat Database. To evaluate international competitiveness of the analyzed sectors revealed comparative advantage index (RCA) and revealed competitiveness index (RC) were calculated using the WTO database on exports and imports of agricultural products and food. Both relative macroeconomic performance and international competitiveness of the agro-food sectors differ considerably among the EU member state countries but the relationship between them is not very clear. However, it seems that as far as international competitiveness is concerned the CAP should be more oriented towards improving economic efficiency of the agro-food sectors, especially in the countries where the RC index is low.

Globalization and Role of WTO in Promoting Free International Trade

Since the nineties of the last century and with the end of the cold war, globalisation is the new catchphrase that has come to dictate the world. If we see to the march of development of from early 1700’s till date, globalization has almost become the part of international trade. The result is the emergence of the specialization in international trade in term of exchange of the goods, services and resources. Now with the passing of time, globalization has become a deeply rooted phenomenon, and the result is, a product that has been manufactured in the outmost part of the globe could easily find its way into the market at the other corner of the globe. This is globalization in true sense. As this trend become more and more wellestablished, intellectuals provided it with a theoretical backing for the harmonization of such trend, and the name of that backing was WTO. WTO is one of the most powerful international bodies. In total 134 nation states have acknowledged its vast power. This made WTO to play the role of global government. Its main aim is to promote commercial interests, and any obstacles in the path of development and expansion of global business should be treated secondary. The paper aims to examine the role of WTO in promotion of international trade in today’s global environment and the cost that we have to pay for the same...

Adam Smith Meets an Index of Specialization in International Trade

Development economists agree that increasing export diversification is a concomitant to economic development. An accepted explanation for Africa’s export stagnation is its dependence on monoculture, and on small number of commodities. Recently a large body of literature focuses on the relationship between economic growth and export specialization. However, there does not exist one generally acceptable measure or index for the concept of “Specialization in International Trade”. This paper suggest one such measure for specialization and its theoretical and conceptual framework are developed and applied to Singapore, South Korea, Malaysia, Mexico, Tunisia and Morocco, during the years of their take offs.

Financial Development and International Trade in Manufactures: An Evaluation of the Relation in Some Selected Asian Countries

This paper analyzes the relationship between the level of financial development of a country and its comparative advantage in international trade. In fact the link between the two notions seems to perform in a two-side direction: A number of researchers have stressed the key role a country’s financial development is likely to play in its specialization in international trade, thus leading to a comparative advantage in the financially intensive goods, alongside capital and human resources. At the same time, it is argued that countries with comparative advantage in financially intensive goods experience a higher demand for external finance, and therefore financial development. In this paper, we aim to check the existence and the sense of the relation between the two variables within East Asian countries. A time-series approach using the VAR Model has been used to provide long run relationships between financial development and international trade in manufactured goods. Our main result suggests that for most of the countries considered, international trade in manufactured goods enhances financial development.

A Further Investigation of Product Specialization in International Trade

According to the two empirical observations about U.S. imports, endowments-driven ‘within-product specialization’ has been increasing. From the data analysis, both these observations are shown extending to the imports of Brazil, India and Japan. However, in this paper, our finding is focused on that two factors driving the classical observations. First, China is the dominant low-wage exporter of multiple-sourced products. Second, the most developed countries remain the primary exporters of multiple-sourced products. When China is deleted from the U.S. import data, there is no trend in across-product specialization; also, rich exporters are increasing their trade share of multiple-sourced products. This paper builds on the method pioneered by Schott. Since without consideration of China data has no theoretical justification, these results should be viewed as a way of deepening our understanding of Schott's his empirical results.

Technical regulations and specialization in international trade

It is widely acknowledged that while technical regulations can improve welfare and facilitate markets, they can also impede trade. The trade impeding effects of technical regulations are especially worrisome for developing countries: they frequently lack the human and capital resources necessary to satisfy technical measures, and thus are more likely to be excluded from markets by technical measures. This paper uses highly disaggregated US data on agricultural, mining and manufacturing imports to examine the impact of technical regulations on trade patterns. Using instrumental variables estimation to correct for the potential endogeneity of technical regulations, the analysis suggests that technical regulations substantially impinge on poor countries' exports: their weaker capacities to satisfy technical regulations lead them to specialize away from industries with heavier regulatory burdens.

Product specialization in international trade: A further investigation

In an influential paper, Schott [Schott. Peter K. (2004). “Across-product versus within-product specialization in international trade.” Quarterly Journal of Economics, 119 (2): 647–678] makes two empirical observations about U.S. imports. (1) The United States is increasingly sourcing the same product (however narrowly defined) from both developed and developing countries. That is, ‘across-product specialization’ has been decreasing. (2) The unit values of these multiple-sourced products are positively and significantly correlated with the capital and skill abundance of exporters and with the capital–labor ratios used by exporters. That is, endowments-driven ‘within-product specialization’ has been increasing. We show that both these observations extend to the imports of Brazil, India and Japan. However, our main finding is that observation (1) is largely driven by two factors. First, China is the dominant low-wage exporter of multiple-sourced products. Second, the most developed countries remain the primary exporters of multiple-sourced products. The U.S. case is the most extreme of our four importers: When China is deleted from the U.S. import data there is no trend in across-product specialization and rich exporters are increasing their trade share of multiple-sourced products. Since deleting China has no theoretical justification, these results must be viewed not as a contradiction of Schott's work but as a way of deepening our understanding of his empirical results.

Comparative Advantage Patterns and Domestic Determinants in Emerging Countries: An Analysis With a Focus on Technology

During the last two decades a number of emerging economies have become deeply engaged in technology-intensive production. This has been reflected in a shift in their international trade specialization from labor-intensive towards capital-intensive goods and in rapid productivity gains across all manufacturing activities. The paper draws on a sample of sixteen emerging countries to investigate the linkages between the pattern of revealed comparative advantages (RCAs), captured by a modified version of the Lafay index of international trade specialization, and the competitiveness structure of the domestic manufacturing sector, measured by a set of industry and country-specific variables. Positive and large RCAs are found to be associated with low unit labor costs in both low-technology (labor-intensive) and medium-or-high tech sectors; on the other hand, domestic accumulation of physical capital is associated with positive and large RCAs in medium-or-high tech sectors. The international disadvantage (negative RCAs) in technology-intensive production tends to increase for countries with low human capital, whereas it diminishes for countries that have large domestic markets and import technology through foreign capital goods.

The changing pattern of foreign trade specialization in Indian manufacturing

This paper examines the pattern of international trade specialization in Indian manufacturing since the mid-1980s by using data on trade flows. Low-technology sectors still dominate the categories for which India exhibits the largest degree of trade specialization. By contrast, high-technology sectors are prevalent among the categories for which India is import-dependent. Significantly, India has experienced an improvement in the degree of specialization in some of the most dynamic sectors of world trade.

The changing pattern of foreign trade specialization in Indian manufacturing

This paper examines the pattern of international trade specialization in Indian manufacturing since the mid-1980s by using data on trade flows. Low-technology sectors still dominate the categories for which India exhibits the largest degree of trade specialization. By contrast, high-technology sectors are prevalent among the categories for which India is import-dependent. Significantly, India has experienced an improvement in the degree of specialization in some of the most dynamic sectors of world trade.