Standard International Trade Classification Research Articles

The Universe of Germany’s Foreign Trade Prior to World War I

Abstract We present a new disaggregated dataset on Germany’s exports and imports from 1880 to 1913. The data covers trade in both quantity and value at the product level. It thus comprises the universe of the data in terms of products and trade partners, at annual frequency. To ensure comparability over time and to data from other countries, the historical product categories are re-classified according to the Standard International Trade Classification (SITC, Rev. 2 and Rev. 4). Moreover, we integrate Hamburg and Bremen into the German trade statistics – two important port cities, which were not covered by the major German trade records until 1888. We describe the new data in terms of five stylized facts and make suggestions for its use in research.

China’s agricultural trade networks and its influencing factors

ABSTRACT This study employs the Standard International Trade Classification (SITC rev.3) to categorize agricultural products and examines the overall and each type of agricultural trade networks in China. It utilizes Social Network Analysis and the Quadratic Assignment Procedure to explore pattern changes and identify influencing factors. The findings indicate that between 2000 and 2019, China’s agricultural trade networks experienced expansion in scale and density, with China positioned at the network’s centre. However, challenges exist, such as insufficient control and over-reliance on specific trading partners. Key factors influencing the networks include the business environment (BUE), regional trade agreements (RTA), and government governance capacity (GOC). Differences in BUE and GOC are negatively associated with the development of trade networks, while RTAs are positively associated with trade network connectivity. Economic and demographic differences are also positively associated with the closeness of trade networks. Based on these findings, policy recommendations are proposed to address the identified issues.

Veto powers and access capabilities in the design of preferential trade agreements

Studies of domestic political actors’ influence on the design of preferential trade agreements (PTAs) have focused on veto players as obstacles to policy change, assuming their roles as access points or channels for economic interests. Access point and veto player theories predict that multiple access points lead to a protectionist bias and that numerous veto players have a constraining influence over PTAs. This study argues that after the veto player and access point theories are combined, the effect of variation in the number of veto players and access points on the institutional features of PTAs depends on the types of exporters (endowment-based or intra-industry exporters) with whom said political actors interact. Quantitative tests show that as the value of intra-industry exports rises, veto players and access points have a less constraining effect on the scope and autonomy of PTAs. This study employed a novel dataset to approximate the values of intra-industry and endowment-based exports of 256 Standard International Trade Classification (SITC) products manufactured by 500 trading partners. The findings highlight the importance of considering the broader influence of political actors and economic interests on PTA design.

Poland–USA sectoral trade balances: regime shifts and the nonlinear impact of currency fluctuations

PurposeThe Polish economy has undergone major challenges and changes over the past few decades. The country's trade flows, in particular, have become more firmly tied to the country’s Western neighbors as they have grown in volume. This study examines Poland's trade balances in ten Standard International Trade Classification (SITC) sectors versus the United States of America, first testing for and isolating structural breaks in each time series. These breaks are then included in a set of the cointegration models to examine their macroeconomic determinants.Design/methodology/approachLinear and nonlinear and nonlinear autoregressive distributed lag models, both with and without dummies corresponding to structural breaks, are estimated.FindingsOne key finding is that incorporating these breaks reduces the significance of the real exchange rate in the model, supporting the hypothesis that this variable already incorporates important information. It also results in weaker evidence for cointegration of all variables in certain sectors.Research limitations/implicationsThis study looks only at one pair of countries, without any third-country effects.Originality/valueAn important country pair's trade relations is examined; in addition, the real exchange rate is shown to incorporate economic information that results in structural changes in the economy. The paper extends the existing literature by conducting an analysis of Poland's trade balances with the USA, which have not been studied in such a context so far. A strong point is a broad methodology that lets compare the results the authors obtained with different kinds of models, both linear and nonlinear ones, with and without structural breaks.

Impact of Export Diversification on Economic Growth in Sub-Saharan Africa (SSA)

This study investigated the impact of export diversification on the economic growth of countries in Sub-Saharan African (SSA). Trade Data are gathered from the World Integrated Trade Solution (WITS), and UN Comtrade database, using a 6-digit level range of the Standard International Trade Classification (SITC) and the Harmonised System (HS) for the Countries. Export diversification Indices data are proxies from the Herfindahl Hirschman Index (HHI) which represents the level of export product diversification for all forty-eight (48) SSA Countries between 1995 and 2020. The Panel Autoregressive Distributed Lagged Model (P-ARDL) was applied in the study. Other analysis including correlation analysis, multicollinearity, and Unit Root tests were used to achieve the objective of the study. The findings showed that export diversification has not really benefitted the SSA Countries; also, exporting raw materials and other primary products does not benefit the region, and therefore, the countries should continue leveraging on the potential of diversifying their exports and exploring sectors such as the manufacturing to attain more economic gains. To achieve export gains, oil/minerals products should be exported as finished products, not as raw materials, especially, from those nations that are resources endowed. These raw materials should be best used domestically to aid production into finished/refined products for subsequent exports.

COMPETITIVENESS OF THE POLISH AGRI-FOOD PRODUCTS IN THE EXPORT TO THE WORLD MARKET

The aim of the article is to assess the competitiveness of the Polish agri-food products in exports to the world market in 2018-2022. The study analysed the value, rate of change, structure and main directions of exports and imports of agri-food products (excluding beverages). Three quantitative indicators characterising export competitiveness were also used: market share, import export coverage and intra-industry trade. The source of the data was the United Nations database UN COMTRADE. The Standard International Trade Classification (SITC Rev 3) at the two-digit level was used. The time scope of the research covered the years 2018-2022. The research shows that in the analysed period, there was a clear increase in the value of food exports from Poland, which resulted in an improved market share and promotion in the ranking of global food exporters. Germany was the largest trading partner. A decrease in the importance of the UK and Russia in exports and an increase in the importance of Ukraine in food imports were observed. The meat and meat products department was characterised by the highest export competitiveness on the world market.

The International Trade of Non-Euro CEE Countries During the Period 2014-2021. A Multiparameter Analysis

On their development path the Central and Eastern European (CEE) countries partially overcame the gap to the developed countries by means of the external trade, acquiring the needed goods and services and satisfying the foreign demand for their products which otherwise was lacking on their territory or seizing an opportunity. In the current paper the authors aim at analysing the evolution of the trade flows of the countries they thought to be the most similar in this aspect, which are the ones belonging to the non-euro area of the European Union (EU) during the period 2014-2021. The research used the Eurostat database, the products being classified after the Standard International Trade Classification (SITC) main categories in order to find out the sectors with the largest contribution to the total surplus or deficit. Moreover, there were identified the main partners of every analysed country and calculated the evolution of respective trade balances at the start and the end of the selected period of time. The authors findings reveal an increasing dependency on exports to Germany, imports from China, decreasing imports of mineral fuels from Russia and also important similarities and differences in the group. The novelty of the manuscript resides in comparing the most profitable sectors during the analysed period and identifying the partners’ contribution to the surplus or the deficit. The current research might be extended with a more in-depth level of multinational enterprises and also in the case of services.

Trap of Race to the Bottom? Evidence from Pollution Intensive Products Trade in India and China

This article compares China and India, the two biggest emerging market economies in the world, with respect to their trade in pollution-intensive industries and tries to discuss the policy environment supporting such growth. The analysis is carried out for 13 categories of pollution-intensive products based on the Standard International Trade Classification Revision 3 classification. Our analysis reveals significant growth in trade in these products in both countries, with a higher intra-industry trade and a significant correlation with environmental stringency. Between the two, India seems to be enjoying a better comparative advantage. Findings suggest a need for adopting cleaner production processes and a cautious approach towards industrial promotion.

THE MODEL OF ASSESSMENT OF GOODS EXPORTS OF UKRAINE TO THE WORLD INTEGRATION ASSOCIATIONS

Foreign trade is an important factor of economic growth and development of open economies. At the same time, the analysis of the state of foreign trade operations is becoming methodologically more complex due to the increase in the number of indicators used and the appearance of new ones. They allow not only to examine the effectiveness of the state trade policy, the set of goods and trade partners, but also to get an idea of the structure of the economy, the level of its development and competitiveness, as well as to assess the quality of the export and import baskets from the point of view of economic growth prospects. Therefore, it is advisable to use models of commodity export valuation, which determines the relevance of the chosen topic. The subject of the study is the methods and models of commodity export evaluation. The purpose of the article is the formation of a model for the evaluation of Ukraine's commodity exports to the integration associations of the world and its approval. Methodology. The theoretical and methodological basis of the conducted research is the dialectical method of cognition, the principles of system analysis and synthesis, statistical processing of information. The methods of structural dynamics were used for the analysis of statistical indicators of commodity exports for 2016-2020; the method of constant market share – for the evaluation of changes in commodity exports of Ukraine for the period under consideration; the method of scientific abstraction is used for the generalization of the obtained results and the formation of conclusions; the graphic method – for the visual presentation of the obtained research results. Results. The article proposes a model for assessing Ukraine's commodity exports to the world integration associations, the main component of which is the constant market share method (CMS analysis). This model is easy to use and allows a qualitative assessment of changes in Ukraine's commodity exports. Approval of the model and assessment of changes in commodity exports of Ukraine was carried out on the international statistical database UNCTADstat for 2016-2020. The data are aggregated into groups according to the Standard International Trade Classification (SITC). The following trading partners have been selected for the CMS analysis: EU-27, ASEAN+3, CIS and REST OF THE WORLD. The obtained results make it possible to assess the state of Ukraine's commodity exports and the level of its competitiveness in foreign markets. Practical implications. The practical implications are related to the possibility of using the proposed model for the evaluation of commodity exports, using various options for the classification of goods and integration associations – partners of the exporting country. Value / originality. The originality lies in the development of a model for the assessment of Ukraine's commodity exports to the world integration associations based on the Constant Market Share (CMS) method, which allows to determine to what extent exports change with the growth of the competitiveness of the goods of the exporting country.

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.

Implemetasi algoritma fletcher-reeves dalam menganalisa nilai ekspor menurut golongan sitc

Indonesia has a lot of natural resources, so Indonesia uses them by conducting trade activities between countries. Export is a movement to sell or send goods from within the country to abroad. Conjugateigradient Fletcher-Reeves Algorithm According to some references, it is an appropriate development technique compared to the backpropagation strategy because this strategy can speed up the preparation time to arrive at the minimum convergence value. Furthermore, this research shows whether the algorithm performs well and can provide productive assembly results when used to solve problems because the value corresponds to the Standard International Trade Classification (SITC) class. The prediction models used are 5-10-1, 5-15-1, 5-20-1, 5-25-1 and 5-30-1. MSE of 0.00287273, the minimum among the other four models. The model can be used because it produces a fast combination and a fairly short period

Türkiye Otomotiv Sektöründe Endüstri İçi Ticareti Etkileyen Faktörler Üzerine Ekonometrik Bir Analiz

Purpose: It is to empirically examine the factors affecting intra-industry trade in the automotive sector between Turkey and 24 OECD member trade partners. Design/Methodology: The determinants of intra-industry trade were tested with panel data analysis in the automotive sector. As a result of the test carried out to determine the model, regression analysis was performed with the Driscoll-Kraay standard error estimation method. Findings: The variables market size, development level, and trade openness have a positive impact on intra-industrial trade, while the variables market size difference, income inequality, and geographical distance have a reverse impact on intra-industry trade. Limitations: Export and import data for 2003–2019 are used in international trade figures in the 3-digit Standard International Trade Classification, SITC Revision-3. Originality/Value: Empirical application on the factors affecting intra-industry trade in the Turkish automotive sector is considered to be important and different in terms of subject.

Analisis Nilai Impor Menurut Golongan Standard International Trade Classification (SITC) di Indonesia Tahun 2010-2021

This study aims to see the Development of Import Values According to the Standard International Trade Classification (SITC) in Indonesia in 2010-2021 which has an average of 4.56% with an average import value of 166,890 (Million US$) where the value of The highest import growth occurred in 2011 at 30.79% with the import value increasing by 177,436 (Million US$) when compared to 2010 at 135,663 (Million US$) while the lowest import growth value occurred in 2015 at -19 ,91% with the value of imports decreased by 142,695 (Million US$) when compared to the previous year 2014 of 178,179 (US$ million). Contribution of Imported Product Value According to the Standard International Trade Classification (SITC) in Indonesia in 2010- 2021 it was found that the contribution of imported food products and live animals was 8.71% for Beverages and Tobacco by 0.45% for Foodstuffs. raw materials, not to be eaten by 5.27% for pelican fuel, polishing materials and other related materials by 18.24% for fats and animal and vegetable oils by 0.11% for chemicals by 13 ,93% for factory-made goods broken down by material by 15.99% for Machinery and transportation equipment by 32.07% for various types of factory-made goods by 4.67% and for goods transactions not broken down by 0.57 %.

Analysing the Flow of Intra-Industry Trade in the Central African Monetary Community

This paper empirically examines the flow of Central African Economic and Monetary Community (CEMAC) intra-industry trade at different sectors and product categories using the Standard International Trade Classification (SITC). An augmented gravity model of trade was adopted to analyse changes in the different sectors and product categories from 1995 to 2015; this is the time span for which consistent and useable time series data is available for CEMAC. A time fixed effects variable and within estimator were included to control for unpredictable changes in exogenous factors and capture the heterogeneity of the sample over time. The results showed that prior to the formation of the CEMAC customs union, the growth in intra-industry trade had been higher than that of the CEMAC customs union with the exception of very few sectors and that since the establishment of the customs union in 1994, IIT trade has remained low and only Cameroon has witnessed an increase in trade with member states, especially in food and live animals. The results also showed that only mineral fuels exports had been significant and positive for Chad and Equatorial Guinea.

Related or Unrelated Variety and Economic Growth of South Asian Countries

Recent literature on knowledge spillovers argues that diversified economic structures are more conducive to knowledge spillovers than specialized structures: a concept that is generally known as Jacobian Externalities. It further argues that diversification can be further decomposed into two forms, that is, related variety (RV) and unrelated variety (UV). RV is the diversification of production in related or similar products, whereas UV is the diversification of production in unrelated or dissimilar products. Most of the existing research on RV and UV is on advanced economies, and research on developing countries, particularly in the South Asian region that mostly produces agricultural and textile products, is scarce. Therefore, this study examines the relationship between RV and UV with economic growth in six South Asian countries using secondary data from 1995 to 2019. Since products at two-digit Standard International Trade Classification are unrelated to each other, UV is calculated at the two-digit level and RV is calculated at the five-digit level because of the similarity among sectors. Using fixed-effects regressions on the standard growth model, our findings suggest that related specialization is beneficial for economic growth in South Asian countries, and UV has a positive relationship with growth only when government effectiveness is high. Our results show that South Asian countries should produce selected products under the broad product classification to benefit from economies of scale instead of diversifying their product portfolio by producing similar products.

Analisis Nilai Ekspor Impor Menurut Standard International Trade Classification (SITC) di Provinsi Sumatera Barat Menggunakan Analisis Profil

Export is the activity of selling goods and services produced domestically to foreign countries. Meanwhile, import is the activity of purchasing goods and services made abroad into the country. If the value of exports and imports experiences instability, the country's economy will also experience instability which will have an impact on the country's income. For this reason, it is necessary to describe the comparison of the value of exports and imports in the province of West Sumatra according to the Standard International Trade Classification (SITC) using profile analysis. This research aims to determine the class of goods according to the Standard International Trade Classification (SITC) which is optimal using profile analysis. In the profile analysis, a comparison of the average value of exports and imports is carried out using the parallelism test, the overlap test and the level test and continued testing for each variable. The results of the tests that have been carried out are that the item code 4 (vegetable and animal oil/fat) is optimal.keyword : Export, import, SITC, Profile Analysis

An Analysis of Intra-Industry Trade with Some Selected European Union Countries in the Turkish Manufacturing Industry

This study aims to analyse intra-industry trade in the manufacturing industry sector with the EU countries, where Turkey has the most trade. The period of the study is 2000-2020. The countries examined are Germany, France, Netherlands, Italy, Spain, Poland, Belgium-Luxembourg, Sweden, Romania, Bulgaria, Greece, the Czech Republic, Portugal, Austria, Ireland, Denmark, and the UK. In the analysis, the Grubel Lloyd index was used, which is one of the widely applied static measurement methods in the literature. The study discusses intra-industry trade of manufacturing industry products according to the 3rd revision of the Standard International Trade Classification. According to the analysis results, when Turkey’s foreign trade is evaluated on a sectoral basis, it has been observed that high intra-industry trade is realized in product groups with low added value. Another result obtained is that intra-industry trade with the UK, Germany, France, Poland, Bulgaria and Romania reached high values. Keywords: Intra-industry Trade, Manufacturing Industry, Grubel Lloyd Index JEL: B17, F0, F5, F11, F14

Pemanfaatan Algoritma Fletcher-Reeves untuk Penentuan Model Prediksi Harga Nilai Ekspor Menurut Golongan SITC

Conjugate gradient Fletcher-Reeves algorithm, according to some literature, is an optimization method that is suitable when juxtaposed with the backpropagation method because this method can speed up the training time to achieve a minimum convergence value. Therefore, this study aims to prove whether the algorithm has good performance and can provide efficient convergence results when used to solve prediction problems in the case of export values ​​according to the Standard International Trade Classification (SITC) class. The results of this study are a predictive model that can be used and developed to make predictions in seeing the development of the export value of the SITC class based on the US Dollar currency. The research data was taken from the website of the Central Statistics Agency for 2010-2020. Prediction models that will be analyzed using the Fletcher-Reeves algorithm include 5-20-1, 5-25-1, and 5-30-1, with the activation functions of tansig and logsig. Based on the analysis carried out through excel calculations from the training and testing process using the Matlab-2011b application, the results obtained that the 5-25-1 network model is the best model with a performance value or Mean Square Error 0.00287273 compared to the other four models. So it can be concluded that the Fletcher-Reeves algorithm is proven to produce faster convergence; it can be seen from the epoch generated from each model that it is not too large and the time required is relatively short

The panopticon of Germany’s foreign trade, 1880–1913: New facts on the first globalization

Abstract We present and analyze the panopticon of Germany’s foreign trade, with new data on all products, all trade partners, quantities, and values, at annual frequency, 1880–1913. Historical product categories are reclassified according to the Standard International Trade Classification (SITC) to ensure comparability over time and across countries. Germany became increasingly specialized in manufacturing, in line with theories of comparative advantage. However, most trade growth occurred along the extensive margin, and 20–25 percent of trade was intra-industry trade, at five-digit SITC. Both facts suggest substantial within-sector heterogeneity. We discuss why this matters for our understanding of the first globalization.

The Importance of Fruit and Vegetables in the External Trade of the Republic of Serbia

Abstract The main goal of the research is to consider and compare the importance of fruits and vegetables in external trade in goods of the Republic of Serbia. According to the Standard International Trade Classification (SITC), “Vegetables and Fruit” is a division that is dominant in Serbian exports of agricultural and food products, and it is necessary to investigate its competitiveness. The key tools used in the analysis are the coverage of imports by exports, then the Contribution to the Trade Balance (CTB) index, as well as the analysis of unit values of exports and imports, in order to compare and evaluate the structure of external trade in fruits and vegetables. The results show that fruit, according to all indicators, has a significantly higher competitiveness compared to vegetables, as well as a higher importance in external trade of goods. This knowledge can serve the creators of agricultural policy to favour the production and exports of fruit products because they can radically improve the structure of total exports, especially when it comes to processed products. Since this is a perennial plantation, the results cannot be expected in a shorter period of time. The previous research has not specifically considered the importance of this segment of agri-food exports and its internal competitiveness (having in mind the applied indicators), which is the main benefit of the study within this paper.