Standard International Trade Classification Research Articles

The Metabolic Transition in Japan

Summary The notion of a (socio-) metabolic transition has been used todescribe fundamental changes in socioeconomic energy andmaterial use during industrialization. During the last century,Japandevelopedfromalargelyagrarianeconomytooneoftheworld’s leading industrial nations. It is one of the few industrialcountries that has experienced prolonged dematerializationand recently has adopted a rigorous resource policy. This arti-cle investigates changes in Japan’s metabolism during industri-alization on the basis of a material flow account for the periodfrom 1878 to 2005. It presents annual data for material ex-traction, trade, and domestic consumption by major materialgroup and explores the relations among population growth,economic development, and material (and energy) use. Dur-ing the observed period, the size of Japan’s metabolism grewby a factor of 40, and the share of mineral and fossil materialsin domestic material consumption (DMC) grew to more than90%. Much of the growth in the Japanese metabolism wasbased on imported materials and occurred in only 20 yearsafter World War II (WWII), when Japan rapidly built up largestocks of built infrastructure, developed heavy industry, andadopted patterns of mass production and consumption. Thesurge in material use came to an abrupt halt with the firstoil crisis, however. Material use stabilized, and the economyeventually began to dematerialize. Although gross domesticproduct (GDP) grew much faster than material use, improve-mentsinmaterialintensityarearelativelyrecentphenomenon.Japanemergesasarolemodelforthemetabolictransitionbutis also exceptional in many ways.www.wileyonlinelibrary.com/journal/jie

Trade restriction indices and US trade policy

The proper way to measure differences in trade protection across countries and economic sectors has been a vexing problem for economists studying international trade. Based on research by Anderson and Neary (2005) and Kee et al. (KNO) (2009), this article proposes the use of Trade Restriction Indices (TRIs) when studying US trade policy. TRIs can potentially solve several problems related to measuring the restrictiveness of trade policy. To this end, this article creates a data set of TRIs for US imports by sector at several different levels of aggregation using the Harmonized Tariff Schedule (HS), the North American Industry Classification System (NAICS) and the Standard International Trade Classification industry coding systems.

China's technological capability and Northeast Asian integration in electronics industry, 1974‐2000

PurposeThis study investigates the evolutionary pattern of China's electronics industry and China's industrial integration into the Northeast Asian region from a historical perspective. The purpose is to shed some light on the catch‐up path of China's technological capabilities using some empirical evidence covering the period of 1974‐2000.Design/methodology/approachMarket share and the Finger‐Kreinin similarity index (FKSI) are used as measures to trace the path of catch‐up from both quantitative and structural perspectives and evidence is provided at the sectoral level. The Standard International Trade Classification (SITC) classification systems is adopted and FKSI values are derived from international trade data at both four‐digit SITC and sectoral levels.FindingsFirst, the take‐off points toward rapid progress of China's technological capability in different sectors happened not concurrently but in a sequentially manner. Second, as to structural evolution, the process of China's integration into the world market and the Northeast Asian region started in 1978 and the extent of integration has become higher and higher ever since. Until late 1990s, gaps between China and Japan and between China and Korea have been successfully narrowed in terms of comprehensiveness of export structure in electronics.Originality/valueThe period of 1974‐2000 saw the tremendous transition in China from a centralized and planned system into a market‐driven economy. It also saw several noteworthy shifts of China's industrial policy in order to build up its innovative capacity and to catch‐up with Japan and Korea. Unlike many other studies that deeply root in macroeconomic approach, this study traces the evolution of China's performance at the sectoral level by focusing on electronics industry. The findings of this paper are explained in terms of national industrial policy, location effects, and low‐cost sourcing.

Konkurencyjność eksportu krajów Unii Europejskiej

Geopolitical and economic changes in European Union modify import/export directions as well as commodity structure of foreign trade. Due to the fact, the competitiveness evaluation of EU-country economics in international trade turnovers can be interesting. The aim of the article is to analyze the export attractiveness of EU-countries using Revealed Comparative Advantage Index (RCA). A research attempt was made, how the export competitiveness reflects in an export specializing level of countries by Standard International Trade Classification (SITC). Calculations were based on reports' data of the International Labour Organisation via data base of the British Company Euromonitor: Global Market Information Database (GMID).

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REGIONAL INTEGRATION AND INTRA-INDUSTRY TRADE IN MANUFACTURES BETWEEN THAILAND AND OTHER APEC COUNTRIES

This article investigates the impact of regional integration on intra-industry trade in manufactures between Thailand and other APEC countries. The study uses pooled cross-sectional and time-series data spanning the period 1980–1999 at a 3-digit Standard International Trade Classification (SITC) level. After accounting for trade imbalance and following Thailand's entry into APEC, intra-industry trade in manufactures between Thailand and countries in Oceania and America decreased, while trade with other Asian countries grew marginally. Results indicate that, in the post APEC era, trade openness stimulated increased intra-industry trade levels with countries in Northeast and Southeast Asia, but decreased trade with countries in America.

The effects of exchange rate variability on Malaysia's disaggregated electrical exports

PurposeThis paper aims to examine the influence of exchange rate variability on the demand for Malaysia's top five electrical exports as classified by Standard International Trade Classification (SITC) product groups.Design/methodology/approachThe autoregressive distributed lag (ARDL) modelling approach to co‐integration is employed in order to estimate the influence of exchange rate variability on export demand.FindingsThe empirical results indicate that foreign income and prices are important determinants of export demand for all of the five electrical exports, in both the long run and the short run, over the sample period 1990‐2001. More interestingly, this paper supports the view that exchange rate variability has an adverse effect on Malaysia's electrical exports.Research limitations/implicationsOne limitation of the study is the appropriateness of the ARDL modelling approach to examine the influence of exchange rate variability (which is stationary, I(0)) on trade behaviour such as export demand behaviour.Practical implicationsThis paper is important to policymakers for the design of both exchange rate and trade policies in order to promote export growth, which could lead to Malaysia's transition towards high‐technology industrialisation.Originality/valueThis paper examines the influence of exchange rate variability on the demand for Malaysia's top five electrical exports as classified by SITC product groups, information which is not available in the existing literature.

Exchange Rate Transmission into Industry-Level Export Prices: A Tale of Two Policy Regimes in India

In the 1990s, India initiated extensive policy reforms that included the adoption of a flexible exchange rate regime and an acceleration of trade liberalization. This paper analyzes the impact of the policy reforms on exchange rate pass-through into export prices using sectoral panel data (at the two-digit Standard International Trade Classification level) for the pre-reform (1980–90) and post-reform (1991–2001) periods. Several econometric tests revealed the existence of a structural break in pass-through into export prices around 1991. The panel results suggest that the number of industries exhibiting incomplete pass-through increased in the 1990s relative to the 1980s, reflecting a higher degree of pricing power by these firms as export prices react to exchange rate changes in more sectors, after having controlled for the effect of product shares, marginal cost variations, and a macroeconomic policy index. These changes in pass-through behavior may be partly attributable to the elimination of currency and trade controls, which increased competition among firms and fostered a concern with market share gains in the 1990s, over an attempt to make profits as a result of depreciation in the 1980s.

Shifts in Pattern of Specialization: Case Studies of India and China

This paper examines shifts in pattern of specialization of China’s and India’s exported groups of products defined in the three-digit Standard International Trade Classification (SITC) Revision 2. This paper applies Revealed Symmetric Comparative Advantages (RSCA) index and Spearman’s rank correlation. Some conclusions are withdrawn. First, on average the comparative advantages of both China and India increase, except in the case of China for the period of 1998-2003. Second, China’s pattern of comparative advantage changes more dynamically than that of India. Third, the China’s and India’s patterns of comparative advantage show different trends (divergent/more complementary).

Intra-Industry Specialization in Textiles and Apparel

This paper examines changes in intra-industry specialization indicators over the 1992-2004 period to assess potential for structural adjustment problems that may arise in U.S. textile and apparel products with growth in trade. Separate analyses are conducted for U.S. bilateral trade with China, Mexico, and DR-CAFTA members. Seven of the sixteen three-digit Standard International Trade Classification (SITC) product groups are expected to experience significant structural adjustment problems. With the exception of one group, all fall within the apparel and clothing (SITC 84) category. Results suggest substantial increases in U.S. imports from China are influencing these findings.

Comment on “International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications”

Comment on “International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications”

Analyzing the Competitiveness of Indonesian Agricultural Commodities Under WTO Commitments

This paper provides an ex post analysis of the competitiveness of Indonesian agricultural commodities during the implementation of the WTO commitments. Using the COMTRADE databases according to the Standard International Trade Classification revision 2 (SITC rev 2) that was published by World Bank, the study revealed that Indonesia's exports to world market in 1985-1990 and 1990-1995 period consisted mainly of coffee, tea, cocoa, spices, and manufacturing products (SITC 07). They are classified as Declining Stars, respectively. These commodities continue to decline under WTO commitments (1995-2000 periods) and therefore the section qualifies as a Retreat. Similarly, Section 03 (fish, crustaceans and mollusks and preparations thereof) was classified as Rising Stars in the first period (1985-1990) and Declining Stars in the second period (1990-1995). Other commodities such as miscellaneous edible products and preparation (SITC 09) also changed from Rising Stars in the first period and the second period into Retreats, followed by those of SITC 05 (vegetables and fruit) which was classified from Declining Stars to Retreat. Under WTO commitments (1995-2000), there are no items in that could be classified as a Rising Star. All commodities were classified as Declining Stars (SITC 00, 02, 04 and 09) and Retreats (SITC 01, 03, 05, 06, 07 and 08). Thus, most of agricultural commodities classified as Stagnant Commodities, even in the third period in which commodities that were classified as Dynamic Commodities were zero. These indicated that Indonesian agricultural commodities have decreased in terms of its competitiveness under WTO commitments. Thus, government should provide strong support to facilitate the development of agricultural sector. Indonesia may consider some facilitation role for the government such as the establishment and improvement of facilities and developing mechanism for attracting domestic and foreign investments in agricultural sector. In addition, government should improve the competitiveness of agricultural export industries with high potentials for market expansion through the development of agricultural processing technology.

Production disintegration and integration of Central Europe into global markets

Central Europe, which includes countries that either already joined the EU or are to accede the EU in the near future, offers an interesting case to examine network trade. The accession process has been crucial to the emergence of conditions friendly to production fragmentation, i.e., well-functioning services blocs indispensable to linking production blocs and duty-free access to a Single Market. Has Central Europe become part of production and distribution networks? In order to examine this trade, we develop an eclectic approach. Using the Standard International Trade Classification, Rev. 2, we identify parts and final products falling into three networks (automotive, information technology and furniture) and calculate various indices assessing the extent to which trade is two-way and involves processing and assembly operations. The analysis provides strong empirical support to the conclusion that Central Europe has become integrated into global, mostly EU-based networks of production and distribution. Network-related trade has experienced a very strong growth and undergone three important changes: processing and increased specialization in production of parts have increasingly replaced simple assembly operations; the CEEC-10 network firms, operating through mostly EU-based networks of production and distribution, have begun expanding beyond EU markets; and by 1999 CEEC-10 has moved from the status of a net importer to that of a net exporter of network products and parts. But not all countries have moved at the same pace. The largest recipients of FDI in the 1990s–Hungary, the Czech Republic and most recently Slovakia–have also experienced the fastest growth in network trade.

Trade Effects of the East African Community: Do we Need a Transitional Fund?

The paper evaluates the economic necessity and political incentives of a transitional fund for the East African Community (EAC). The fund has been proposed to encounter trade imbalances which may arise due to the intended customs union in East Africa. Using a disaggregated approach at the two-digit level of the Standard International Trade Classification, the paper assesses the overall impact of the EAC on trade flows. Moreover, the commodities that will be particularly affected by the customs union are identified. The results show that considerable trade effects cannot be expected, except for a very narrow range of products. The need for a transitional fund becomes less urgent from this perspective.

How important is the processed food in intra‐industry trade? The Australian experience

Most studies of intra‐industry trade (IIT) in manufacturing exclude the processed food sub‐sector (standard international trade classification (SITC) subgroups 0‐1) from their analysis on the grounds that trade in this category is predominantly determined by the availability of natural resources in the country in question. However, this can produce misleading results, because the processed food industry is also subject to scale economies and product differentiation that determine IIT. Econometric investigations support most theoretical hypotheses, especially when the model of IIT is tested using the broad manufacturing data that include both the manufacturing commodity (SITC subgroups 5‐8) and processed food (SITC subgroups 0‐1). Results suggest that product differentiation and scale economies contribute positively to IIT, while trade protection discourages IIT.

Food trade balances and unit values: What can they reveal about price competition?

AbstractPrice competition is a fundamental assumption in modeling trade. Empirical applications often use unit values as proxies for price. This is a problem if unit values cannot explain trade flows consistent with the price competition assumption. The paper determines whether this condition exists in food product trade. Trade balances by product are used to indicate successful competition in trade. Export and import unit values are used to determine if competition is dominated by price or nonprice competition. Trade flows are then categorized in four ways: successful price competition, unsuccessful price competition, successful nonprice competition, and unsuccessful nonprice competition. This categorization is applied to 372 food products using the Standard International Trade Classification. Nearly 40% of U.S. food exports could be characterized as dominated by nonprice competition. In those instances, we contend that unit values are not valid proxies for price, thereby limiting their usefulness in traditional import demand estimation and trade policy simulation models. © 2002 Wiley Periodicals, Inc.

Perdagangan Intra – Industri Indonesia Di Pasar Dunia

Based on the empirical studies on intra-industry trade, Greenaway and Milner (1989) classified intra-industry trade in three categories: country-specific, industry-specific, and policy-based. This research will be focused for testing industry-specific hypothesis of intra-industry trade in Indonesia. By some reasons of intra-industry trade (IIT), product differentiation as the most important variable (Balassa, 1967; Grubel and Llyod, 1975). Descriptive analysis and econometric model were applied in this study to obtain a general conclusion about intra-industry trade in Indonesia and what the variables influence it. This analysis will be applied on the group of export product in manufacturing industries based on Standard International Trade Classification (SITC) and International Standard Industrial Classification (ISIC) in year 1980, 1985, 1990, 1995, 1996 and 1997. So, by the analysis that was applied in this research could be obtained some conclusions. First, the intensity of intra-industry trade in Indonesia is still low. This study shows that only 12 industries of 23 industries based on ISIC have an IIT more than 40 percent in 1980 - 1997. Secondly, the growth of IIT index and value shows the increasing trend. This condition indicates that Indonesia has a positive chance to more expansive in the future. Third, there are only 30 commodities (18,99 per cent) of 158 commodities that have a high IIT index in period 1980 – 1997. Forth, econometric analysis to intra-industry trade in Indonesia by industry-specific approach obtain the conclusion that product differentiation, scale economies in industry and market structure competitiveness in industry influences the intra-industry trade. Keywords: intra-industry trade, industry-specific, product differentiation

SHIFTING EXPORT SPECIALIZATION AND THE COMPETITIVENESS OF THE MALAYSIAN MANUFACTURING: Trends and Analysis

This study provides an in-depth analysis of shifting export specialization at the Standard International Trade Classification (SITC) three-digit product category level and links this analysis to Malaysian export potential. The research uses the revealed comparative advantage framework to analyze the extent of export competition between Malaysia and other Association of Southeast Asian Nations (ASEAN) economies. It argues that the degree of competition among ASEAN countries will intensify with the implementation of the ASEAN Free Trade Area (AFTA) and the emergence of other low-cost producers in the region. It aims to explore how AFTA will in uence Malaysian manufacturing. In the presence of growing trade liberalization, competitive pressures, and the changing structure of world demand, this study calls for a reassessment of the factors that in uence Malaysia's export competitiveness. * * * * *

SHIFTING EXPORT SPECIALIZATION AND THE COMPETITIVENESS OF THE MALAYSIAN MANUFACTURING: Trends and Analysis

This study provides an in-depth analysis of shifting export specialization at the Standard International Trade Classification (SITC) three-digit product category level and links this analysis to Malaysian export potential. The research uses the revealed comparative advantage framework to analyze the extent of export competition between Malaysia and other Association of Southeast Asian Nations (ASEAN) economies. It argues that the degree of competition among ASEAN countries will intensify with the implementation of the ASEAN Free Trade Area (AFTA) and the emergence of other low-cost producers in the region. It aims to explore how AFTA will in uence Malaysian manufacturing. In the presence of growing trade liberalization, competitive pressures, and the changing structure of world demand, this study calls for a reassessment of the factors that in uence Malaysia's export competitiveness. * * * * *

Do Stringent Environmental Regulations Reduce the International Competitiveness of Environmentally Sensitive Goods? A Global Perspective

In this paper I examine whether stringent environmental standards reduce the international competitiveness of environmentally sensitive industries using a comprehensive dataset of trade flows of environmentally sensitive goods (ESGs) disaggregated at the four-digit level of the Standard International Trade Classification. The data relate 1965–95 and cover 34 countries, accounting for nearly 80% of world exports of ESGs in 1995. I find that export performance of ESGs for most countries remained unchanged between the 1960s and 1990s, despite the introduction of stringent environmental standards in most developed countries in the 1970s and 1980s.