Export Supply Research Articles

Retroactive Adjustment of Customs Value in the Export Supplies of Natural Gas

Retroactive Adjustment of Customs Value in the Export Supplies of Natural Gas

Agriculture trade restrictiveness in Canada: How important are the cross effects?

AbstractA trade restrictiveness index (TRI) aggregates an entire protection structure into a single uniform measure that is consistent with trade theory and reflects the extent of policy interventions on trade or welfare. Although there are several variants of a TRI, all approaches aggregate protective measures using weights that depend on import demand and export supply elasticities; some studies ignore cross‐price effects while others account for them. This study measures the degree of bias introduced by ignoring cross effects. It provides a practical approach to account for demand‐ and supply‐side cross‐price effects in a multi‐commodity TRI setting. This approach is illustrated with a case study of distortions in the Canadian crop and livestock sector. Domestic demand and supply cross effects are approximated using a “constant differences of elasticities of substitution” functional form. On average, over the period 1996–2016, we find that cross‐price effects do make a difference, and that including them makes the TRI 27% higher than an approach which ignores them. Furthermore, both TRI approaches produce indices that are higher and more variable than the OECD's percentage Producer Support Estimate (PSE) that measures policy transfers as a share of gross farm receipts. The fundamental differences between a TRI and PSE% is driven by market price support for milk.

The Impact of Trade Liberalization on Export Supply and Poverty in Guyana: Evidence From Cointegration Analysis

Using the cointegration and error correction methodologies, this article studies the impact of trade liberalization on the supply of exports and poverty in Guyana from the early 1980s to the mid-2010s. From the empirical results of this study, two important points emerge. The first point is that, for Guyana, trade liberalization has resulted in the expansion of the country’s supply of exports and the reduction in its poverty rate. The second point is that the impact of trade liberalization on export supply and poverty has been quite small. In addition, this study finds that the real effective exchange rate and the growth of the economy along with the growth of the agricultural sector were important drivers for expanding the country’s supply of exports and reducing its poverty rate over the period covered in this study.

Investigating the Effect of Economic Variables on Export of Iranian Traditional and Agricultural Goods

In this research, the effect of five macroeconomic variables of the exchange rate, gross domestic product, relative prices of agricultural commodities, agricultural capital, and money supply is investigated on the agricultural and traditional exports during 1986-2014. In the present study, we used the Vector Auto-Regressive (VAR) model and the Johansen method. The results show a positive and significant correlation between agricultural and traditional exports and variables of the exchange rate, relative prices, and money supply. However, there is a negative and significant relationship between agricultural capital and the dependent variable. Besides, there is a one-way causal relationship between the exchange rate and agricultural exports as well as the supply of money and agricultural exports. Finally, using the modified coefficient of Error-Correction Mechanism (ECM), we can infer that if an imbalance occurs in agricultural exports in any year, a quarter of imbalance will be restored in the next period. To determine the relationship between variables, in the long run, we used Johansson method to estimate the convergent vectors and apply constraints on cointegration relations. Based on the study results, we suggest that economic authorities should try to approximate the exchange rates and eliminate the gap between central bank exchange rate and free-market exchange rate. This method is the best way to stabilize the exchange rate, and consequently, export stability in the long run. To do this, the proper monetary and financial measures must be taken to direct liquidity toward production and boost the capital market.

Russian High-Technology Complex under Low Inflation and Government Support Limitation: The Condition, Capacity and Tendencies for Development

The article aims to reconstruct and analyze the development trends of the Russian high-tech complex in 2011–2017. The main goal is to assess the development potential of the high-tech complex in 2018–2020 taking into consideration the state defense order financing, export supplies of weapons and military equipment, as well as civil output of the defense and nuclear industries. The findings showed that until 2014 the growth rates of the defense complex approximately correspond to official data, whereas in 2016–2017 there was a turnaround as in some subsectors the real growth was significantly lower than expected. It enables us to predict that the preservation of the current economic policy in the field of defense and security may lead to a reduction in the high-tech complex output from 2020. Meanwhile, it appears that at the moment there are no macroeconomic limitations that would hinder the positive dynamics continuation of the high-tech complex development provided changes in economic policy.

Comparative Analysis between the Integrating Company model and the Export Consortium in Mexico

Globalization has forced entrepreneurs of all types of companies to orient their steps of commercial leadership, to search for new forms of internationalization in order to be at the forefront of business transcendence. In Mexico, about 98% are small and medium-sized companies who seek to consolidate their exportable offer through different forms of international commercial collaboration. These figures involve substantive benefits such as: fair trade, specialization and the consolidation of the exportable supply. This research will address the figures of Integrative Company and the Export Consortium to make a comparison between both forms of international business cooperation. This qualitative research with a grounded theory research design had an extensive review of the literature that was carried out. It is concluded that although both figures have similar characteristics, the Integrating Company model offers more fiscal support to microenterprises, while the Export Consortium focuses on the work of small and medium enterprises.

Effectiveness of Trade and Exchange Rate Policies on Exporting Garden Products: Evidences from Iran

The current research intends to study the effectiveness of trade and exchange rate policies on exporting garden products in Iran. For the policies on exchange rate, the instability of the exchange rate and the dummy variable of exchange rate unification were considered in relation to trade policies, trade diversion and economic openness. To do so, the short term and long term relation between the variables of the export supply logarithmic function was determined according to ARDL model and the error correction model. The data was collected from the international trade database, the statistics of the agriculture ministry and the central bank’s site for 1997-2015. The results showed that, for long term, such variables as trade diversion, exchange rate instability, economic openness, export value of the stone fruits during previous years and the dummy variable of exchange rate unification were positively influencing on exporting Iran’s stone fruits. The value of error correction factor was estimated as -0.42 which is significant and indicates a more highly increased adjustment for long term equilibrium. Also, when a shock or diversion from equilibrium occurs, 0.58 of the short term imbalances are adjusted to reach the long term equilibrium.

Estimation of the Export Supply Function for Iron-ore Exports from Goa

The objective of this paper is to check whether the coefficients in the supply equation i.e. the price elasticities are consistent with the economic theory for iron-ore exports from a regional economy, the State of Goa. Since the export prices are endogenous the Two Stage Least Squares (TSLS) technique is employed as the first step in order to identify the supply equation using all exogenous variables in the equation as instruments using the fixed effect model. Subsequently, an alternative methodology employing a Dynamic Ordinary Least Squares (DOLS) given by Stock and Watson (1993) is estimated for the panel data on firm-level exports. In particular the price elasticity of supply has become positive over time and increased significantly in the recent periods. Thus the results indicate that these firms are more likely to respond to price signals going forward.

Financial Development, Endogenous Dependence on External Financing, and Trade

Influential papers on how credit constraints affect international trade have shown a tendency to assume that asset tangibility and the share of external borrowing are exogenous industry characteristics that are time‐ and country‐invariant. In the finance literature, however, the share of external borrowing is viewed as endogenous and dependent on the amount of collateral that a firm can provide (and thus, implicitly, on its asset tangibility). Drawing from the finance literature, I hypothesize that there are supply‐side factors that exert substantial influences on the share of external financing. I test this new perspective with country‐ and industry‐specific measures of asset tangibility and external borrowing. I find that (i) the share of external borrowing increases in asset tangibility, and (ii) the sectoral rankings of asset tangibility and the share of external borrowing vary significantly across countries. Further, I develop a theoretical model to investigate the impact of financial development and asset tangibility on the demand and supply of external finance and exports. The model yields theoretical predictions that are consistent with, and provide intuition for, the above results. Both the model and my empirical results demonstrate that industries with more tangible assets export more from countries with high levels of financial development.

DYNAMICS, STRUCTURE AND DRIVERS OF FISH CATCH IN RUSSIAN FEDERATION (2005–2017)

The main trends in fisheries are considered by the fishery basins, including dynamics of annual catches and changes in their structure, both for inland and marine areas, on the data of fishery statistics for 2005–2017. The landing in the inland waters of Russian Federation is estimated as 8.4–10.0 % of the total national annual catch. Its mean annual volume for this period was 375.103 t; it grew on average in 2.2 % annually. This volume was landed mainly (85 %) in four inland basins: Volga-Caspian, Far Eastern, Azov-Black Sea, and West Siberian ones. About ⅓ of the volume was provided by cultivated fish, in particular in the Azov-Black Sea basin (87 % of the total freshwater catch) and Northern basin (69 %). Marine fishery produced 2990–4644 . 103 t, or 90.0–91.6 % of the total Russian catch. Its annual landing has increased by more than a half since 2005, with the average growth in 3.7 % annually. This volume was landed mainly within the exclusive economic zone (EEZ) of Russia — 74.7 %, the rest was landed in the neutral areas of the World Ocean (5.9 %) or in EEZ of foreign states (19.4 %). The main region of marine fishery is the Far-Eastern basin, which portion in the national catch increased in 13 years from 62.6 % to 68.7 %, whereas the portion of the Northern and Western basins decreased in 3.7 % (to 21.5 %) and 3.0 % (to 7.9 %), respectively. In the Far-Eastern basin almost whole catch was landed within EEZ of Russia (3149 . 103 t), though in the Northern and Western basins the catch was obtained mainly in EEZ of foreign states (on average 557 . 103 t and . 103 t, respectively) and beyond EEZ (116 . 103 t and 94 . 103 t, respectively). Influence of the export supplies on the fish supply to the domestic market of Russia is analyzed. The landings increase contributes to the export increasing, but other factors are likely to be the main drivers of the export growth. This information on quantitative structure of the national annual catch could be used in economical forecasts and for developing of programs and strategies for the fishery industry of Russia. Examples of its practical using for solving of some applied problems in the economics are presented.

The effect trade and exchange rate policies on the export of stone fruit in Iran

This study aims to investigate the effect of foreign exchange rate and trade policies on crop exports in Iran. Regarding foreign exchange policies, the exchange rate volatility index and the dummy variable of currency uniformity policy were considered, while economic openness index as well as the trade bias coefficient index was studied for business policies. Logarithmic model of export supply function based on the ARDL and error correction model were used to estimate long- and short-term relations between variables. The research data were collected from the websites of the International Trade Statistics Database and the Central Bank of Iran from 1997 to 2014. The results showed that variables of commercial deviation coefficient, real exchange rate, economic openness, domestic product price, stone fruits export value in previous years and the dummy variable of currency uniformity policy all had a positive effect, in the long term, on Iranian stone fruits export. The coefficient for error correction model equals -0.42, which is quite significant indicating a very high modulation pace to a long-term equilibrium. In addition, the results revealed that, in the event of shock and distortion in balance in each period, 0.58% of the short-term imbalance has been adjusted to achieve long-term equilibrium.JEL Classification: Q17, Q18, F13, F17, F39

Evaluación de la cadena de valor del cacao (Theobroma cacao l.) peruano

La investigación tuvo como objetivo principal determinar las deficiencias de la situación actual de la cadena de valor del cacao peruano, y plantear propuestas de mejora integrales en la misma, a través de los factores competitivos en cuestión. Para ello se utilizaron como herramientas: el análisis de la cadena de valor y el análisis del diamante competitivo de Porter. El análisis de la cadena de valor, permitió una “fotografía” completa de quienes han participado, de qué manera, con qué intereses, sus interrelaciones, visualizando las necesidades y potencialidades de los diferentes actores para el mejoramiento individual y en conjunto. En el análisis del diamante competitivo de Porter se interrelacionaron los componentes del sector del cacao. Las mejoras en la cadena de valor fueron: el resultado de la vinculación de la estrategia, la estructura y la rivalidad entre las compañías del sector, la condición de los factores, las condiciones de la demanda, y los sectores conexos y de apoyo o clúster, que son actividades ligadas entre las empresas que participan en un sector del cacao; todas fundamentales para alcanzar la ventaja competitiva; que van a reducir la brecha de los diferentes eslabones convertidos en factores competitivos, para dar lugar al desarrollo de capacidades y generar oferta exportable de cacao en diferentes nichos de mercado, que a la fecha está alrededor de 100 000 toneladas aproximadamente. Las operaciones de producción agrícola, pos cosecha y transformación requieren mejoras sustanciales para evitar costos de no calidad y la baja retribución del valor del cacao hacia el agricultor. De los problemas encontrados se derivan un conjunto de lineamientos estratégicos en el corto, mediano y largo plazo, proyectando para el futuro una cadena competitiva, como el posicionamiento por “diferenciación”, direccionada a producir cacao fino o de aroma, cacao orgánico e innovación en productos con cacao peruano.

Shelf life extension of vacuum packaged chilled beef in the Chinese supply chain. A feasibility study

Arbitrary microbiological limits or noticeable organoleptic decline are mainly used to define the shelf life of vacuum packaged chilled beef (VPCB). Excellent temperature control is critical to enable a long shelf life. The robustness of export supply chains was tested by sending Australian VPCB (striploins) to three Chinese destinations and a CONTROL (Brisbane, Australia) treatment (~−1 °C). Data loggers monitored temperature during storage and meat biochemistry (pH, color, weep), aerobic plate counts, lactic acid bacteria, total volatile basic nitrogen (TVB-N) and sensory changes were measured 84, 98, 120 and 140 days postslaughter. Temperature was generally well maintained and sensory scores were not indicative of spoilage. Microbial counts did not increase from 84 to 140 days, however TVB-N increased with time and was a better predictor of sensory attributes. TVB-N was below the limit of 15 mg/100 g in all CONTROL samples but most Chinese samples exceeded this value. This study demonstrated that extended shelf life is feasible with excellent temperature control.

Impacts of Chinese Investment on Economic Growth in Sub-Sahara Africa (2007-2017)

Foreign direct investment has taken a central position in promoting economic growth in the developing world and has been anticipated by different economic scholars to be playing a key role in accelerating growth in Sub-Sahara Africa countries. Over the past two decades, Chinese foreign direct investment in Sub-Sahara Africa has increased and Chinese present in the continent has brought optimism for future progress in economic and transformation. It is against this background that CFDI has appeared increasingly attractive to Sub-Sahara Africa countries facing declining domestic investment and higher costs of foreign borrowing. The governments of Sub-Sahara Africa, therefore, has been putting up incentives to ensure that foreign corporations are attracted to the country in an effort to increase the investments to the country and increase the level of economic growth. The objective of this study was to determine the impacts Chinese foreign direct investment on economic growth in Sub-Sahara Africa and observing at the contribution of Chinese Foreign Direct Investment flows in improving the export supply of the countries' post-liberalization period. The study is grounded on FDI flow data from China to individual countries in SSA over the period of 2007 to 2017 on 14 SSA countries. The time frame for this analysis is 11 years period for each country, based on the availability of data. Including all countries in SSA would have been beneficial for the study but the rest of the SSA countries were not considered for the analysis because we want to balance data, uniformity, and availability of data during the required period of time. The study employed secondary data from different sources mainly accessed from the Chinese national bureau of statistics, MOFCOM, World Bank’s, World Development Indicators (WDI) database and World Bank African Development Indicator database as well as other sources like United Nations Commodity Trade (UN Comtrade) database, United Nations Commission on Trade and Development (UNCTAD) database and from World Economic Outlook database (WEO). After controlling for other determinants of growth, the findings so far indicate that Chinese Foreign Direct Investment (CFDI) flow to Sub-Sahara Africa has a general positive and significant, which has a huge influence on economic growth. The results are in line with both the studies of Zhang (2001), Carkovic and Levine, (2002) and Borensztein et al. (1998) it seems plausible to argue that it is a certainty that Chinese FDI alone has a positive impact on growth. Chinese Investments have increased collective resource inflows into the host countries; this has/will improved capacity utilization, increased outputs and generated employment opportunities. The significance of private CFDI is that such investments are slightly risk-free to the SSA countries and bring with it the advantages of advanced technology, management practices, and assured markets. Based on the results achieved, we present the main conclusions and respective policy recommendations which, if addressed, will stimulate domestic investment in short and long runs, since the investors’ decisions are influenced to large extend by those similar factors. Our objective two is to elaborate and determine the contribution of CFDI flows into SSA countries in increasing the export supply of the countries post-trade liberalization era. Here we tried to see the effect of CFDI inflows on the increase in the export supply of SSA countries from the perspectives of the countries' characteristics in the post-trade liberalization period.

English

Worldwide, Mexico represents the first exporter of mango. However, in recent years mango exports have decreased by 29 points due to a change in the preference of the American market; hence, it is essential to diversify the supply of mangoes exports. Measurement of the net photosynthesis response and internal CO2 concentrations can provide data on important parameters of the physiology of a variety; these have been widely used in ecophysiological studies and allow the early evaluation of germplasm. The objective of the study is to do a physiological evaluation of 8 mango varieties (Nam Doc Mai, Rosigold, Mallika, Ivory, Alphonse, Neelum, Fairchild and Kesar) recently introduced to Mexico and 2 recently registered by INIFAP (Ataulfo “Diamante” and Ataulfo “Zafiro”), all with export potential. The work was carried out under 2 conditions (laboratory and greenhouse). For the photosynthesis registry, nursery plants approximately 18 months old were used (net photosynthesis, stomatal conductance, internal CO2 concentration and evapotranspiration, SPAD units and nutrients (NO3-, K+, Ca2+ y Na+). In both conditions (laboratory and nursery), it was found that the cultivars with the highest levels of the physiological variables, photosynthesis, concentration of chlorophyll and nutrients in the leaf were Fairchild, Mallika and Kesar. The cultivars such as Rosygold and Nam Doc Mai and Ivory, in contrast, those with the lowest levels were Ataulfo Zafiro, Ataulfo Diamante, Alphonse and Neelum. The evapotranspiration (Evap), net photosynthesis (PN) and concentration of Intercellular CO2 (Cint) kinetics were used to describe that all the cultivars presented a similar behavior and evidenced differences in the intensity of the same. Key words: Mangifera indica L., chlorophyll, photosynthesis, nutrients.

Service offshoring and firm employment

Major technological advances have recently spurred a new wave of offshoring in services, which used to be non-tradable. Should service workers in developed countries worry about their jobs? Trade theory has given a nuanced answer to this question, suggesting that efficiency gains from offshoring may counteract direct job losses, which leaves the predicted net effect ambiguous. This paper investigates the employment effects of service offshoring in a newly combined and exceptionally detailed panel dataset, covering almost the entire universe of German firms' service imports over the years 2001–2013. It exploits firm-specific export supply shocks by partner countries and service types as an instrumental variable to find that service offshoring has increased firm employment. In line with the canonical trade in tasks model, the employment gains are greater in firms with higher initial levels of service offshoring.

The Study of Effective Factors on Iran's Pharmaceutical Export Supply and Demand.

The importance of drug as a valuable export product in the global economy becomes clearer every day. Understanding the problems of exports and factors affecting it, can be an important step to keep Iran’s position in the world markets and further export development of this product. In this study, Iranian pharmaceutical exports’ supply and demand functions were calculated using co-integration and error correction techniques through time series quarterly data of 2000-2014 in order to identify the factors affecting pharmaceutical exports (short run and long run relationships among the variables) and price and income elasticities. The long run price elasticity of demand of -2.28 indicates that an increase in Iran’s export price relative to competitor′s export price will have a negative impact on pharmaceutical export volume. Also, the long run income elasticity of foreign demand for pharmaceutical exports of Iran is 1.11. That is an increase in income of foreign countries will have a positive impact on Iran’s pharmaceutical export. On the other hand, the long run price elasticity of export supply is 1.09, indicating that the supply of pharmaceutical export is sensitive to the relative price changes. In other words, an increase in export price relative to domestic price as well as an expansion of the pharmaceutical production capacity will increase its export supply. Being aware of the factors affecting the pharmaceutical exports can prepare the ground to develop the pharmaceutical industry and balance the supply and demand in the long run. Therefore, the results of this study can help Iran′s policymakers and managers to choose a clearer path for the pharmaceutical trade policies.

Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata

This paper uses unique Finnish firm-level micro data on service imports, work- force composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002-2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

МАРКЕТИНГ-МЕНЕДЖМЕНТ: ТЕОРИЯ И МЕТОДОЛОГИЯ РАЗРАБОТКИ ИМИДЖА И БРЕНДА ТЕРРИТОРИИ ПРИ ФОРМИРОВАНИИ ЦЕПЕЙ МЕЖФИРМЕННЫХ ВЗАИМОДЕЙСТВИЙ

The article appeals to the development of theoretical and metalogical basics for the development of the image and brand of territorial entities: countries, regions, federal districts, territories, regions, cities, etc. in solving problems of creating chains of inter-company interactions. The authors consider that the inclusion of organizations into the chains of added value, particularly while the organizing export supplies, could be more effective. To gain this, the territories where organizations are located, which claim to participate in such chains, should have an attractive image. The authors come up with the idea of developing of the image and brand of the territories on the basis of marketing management principles. They help producers to create consumer values for buyers that provide them with additional advantages in consumption. The article can be used to develop the specific methodological guidelines for solving the problems of territorial development in different regions.

Commercial realities of the proposed LNG import terminals on the east coast of Australia

Recent government intervention in the East Australian Gas Market (EAGM) may have temporarily settled short-term supply availability concerns; however, gas prices in the EAGM now inevitably trend with the spot LNG Netback Price. Notwithstanding, supply remains tight, due to lack of upstream investment from overhang of some state government policies restricting exploration and development, and the lack of investment stemming from the recent period of low oil prices. Save further government intervention to retrospectively reserve already contractually committed export supply from the three Queensland LNG export projects, there is no ‘quick fix’ solution to fully address market tightness in the short to medium term from indigenous sources of gas supply. The only real solution to ensure security of supply over a reasonable tenure is to import LNG into the EAGM. However, the clear commercial reality of gas supply sourced from an LNG import terminal is that it can only be supported by high gas prices, albeit also providing other market benefits such as peaking capacity and storage. Without a solution to the EAGM supply–demand issue, there will be demand destruction as industrial users and electricity power generators seek alternatives to gas supply or simply cease operations. Most indigenous gas supply alternatives to LNG imports stem from the northern states and may provide solutions over the longer term (e.g. Beetaloo Basin), but do not solve the immediate need for gas supply in the southern states by 2020/21. New supply from the north is in any event physically pipeline-constrained over this timeframe.