Tariff Rates Research Articles

Entropy model for determining the necessary information in the diagnostics of maritime transportation

The main problem of diagnostics and management of traffic flows under conditions of uncertainty of the impact of the external environment is to obtain the required amount of high-quality information, since in the case of its small values the accuracy of forecasts decreases, and in the case of its redundancy the possibility of its use is hampered. The information-entropy model, which is the substantiation of diagnostics and the required amount of input information in the context of environmental fluctuations is presented in this paper. On the example of studying maritime transportation under conditions of variable conjuncture, the consequences of pandemic and military interventions and other manifestations of environmental impact, the entropy of different values of a priori and a posteriori information is estimated. The main factors of the merchant marine fleet development are the volume of international shipping, the annual growth rate of the merchant fleet, the average age of the fleet, and tariff rates in container transportation. The main trends in the modern development of the world’s maritime fleet are identified. The algorithm for determining the required amount of information with regard to uncertainty is constructed. The experimental verification is carried out taking into account the dynamics of the main indicators of the world merchant fleet. It is shown that entropy is a quantitative measure of input information for managing and diagnosing transport processes under conditions of uncertainty.

Impact of Selected Factors on International Trade of Bangladesh: An Empirical Analysis

International trade is a vital driver of economic development for nations worldwide, and Bangladesh, as a developing country in South Asia, strategically utilizes trade as a key element in its economic growth agenda. This paper examines the impact of internal factors on Bangladesh's international trade, employing Ordinary Least Squares (OLS) regression analysis to analyze data spanning from 2000 to 2022. The study focuses on factors such as GDP, inflation, real interest rates, unemployment rates, government expenditure, population growth, remittance inflows, government expenditure in education, macroeconomic management, and tariff rates. The results reveal a strong statistical significance between the predictors and Bangladesh's international trade volume. Notably, personal remittances, government expenditure in education, and macroeconomic management index exhibit significant influence on international trade. The findings provide valuable insights for policymakers and stakeholders to enhance Bangladesh's trade performance, contributing to its sustainable economic development.

Tariff Rate Uncertainty and the Structure of Supply Chains

Tariff Rate Uncertainty and the Structure of Supply Chains

The impacts of openness and global value chains on the performance of Turkish sectors

Regarding the dynamics of the contemporary world economy, success in a domestic economy cannot be achieved without effective integration policies for goods/services and capital flows. To evaluate this proposition, we utilize many openness measures for two periods, 1995-2009 and 2000-2014, for the Turkish sectors. The empirical findings suggest that domestic value added in export is a major driver of sectoral value added. While import and backward linkages appear to be stimulators for total factor productivity (TFP) in manufacturing industries, they have no significant impact on sectoral value added. Trade barriers in the form of tariff rates, which primarily stemmed from manufacturing industries, have a considerable detrimental impact on Turkish sectoral performance. Higher tariffs not only make it more difficult for Turkish businesses to enter overseas markets but also raise the costs for importers. The initial impact of this protection is inexorably exacerbated by global value chains (GVCs), with negative consequences felt in nearly every economy. Given the increased backward GVC involvement of some manufacturing industries, such as machinery and equipment, Turkish sectors should be prepared for external shocks by diversifying importer origins, stocking up, and boosting transparency in their operations. Overall, designing and implementing trade policies to effectively integrate into the GVCs is an important task for Turkey.

The United States' Challenge(s) to Canada's Dairy Import Tariff Rate Quotas: What is All the Fuss About?

The United States' Challenge(s) to Canada's Dairy Import Tariff Rate Quotas: What is All the Fuss About?

Analysis of the Impact of Exchange Rate on Price Level in Nigeria

The study focus on Analysis of the Impact of Exchange Rate on Price Level in Nigeria from 1988 to 2016 with variables as Inflation, exchange rate, tariff rate, import and interest rate. The research employed the Dynamic Ordinary Least Square (DOLS) regression method with the pre-test of Augmented Dickey Fuller (ADF) unit root test. The regression result showed a negative and insignificant relationship between exchange rate and inflation, tariff rate was negative and significant in relationship with inflation, while import was positively and insignificantly related to inflation, interest rate was having a positive but not significant relationship with inflation. We recommend that moderate or realistic tariff rate be negotiated among trading partners. Also local production of goods for export that will counter the negative impact of import to avoid imported inflation and strict monitoring of the activity of CBN and commercial banks in exchange rate dealing to avoid unnecessary and unproductive use of dollars.

Методические основы оценки эффективности организации внутрихозяй-ственных и межхозяйственных отношений в сельском хозяйстве

The methodological basis of the study of internal and inter-economic production and economic rela-tions in agriculture has been studied. You are the cooperative essence of such relationships, which is currently developing on the basis of digitalization of management. Trends in the development of in-tra-farm and inter-farm production and economic relations were noted, among which were revealed: a disproportionate decrease in the number of employees in crop production and animal husbandry, direct costs per employee, a decrease in the tariff part of wages, a discrepancy between the size of the minimum wage and the value of the tariff rate of the first category, interest of farms in the develop-ment of inter-farm production cooperation, a decrease in the profitability of sales from work and ser-vices on inter-farm production cooperation. The influence of factors on the profitability of sales from the work performed and the services provided for inter-economic cooperation was revealed. Recom-mendations have been made on the development of crop production and animal husbandry in the re-gion.

IMPACT OF RCEP ON TRADE BALANCE AND INDONESIA’S POTENTIAL EXPORT

The signing of RCEP has captured global attention for the new mega trade deals. Expected to open wider market potential and access, yet the previous trade agreements between ASEAN and its five partners raise whether RCEP can increase trade between partners. This study employed partial equilibrium using SMART Simulator to analyze the impact of RCEP on members, and identifying potential export for Indonesia. The data used is trade value between RCEP signers in 2019 and conducted two scenarios. First, one hundred percent tariff liberalization was conducted and the second simulation was conducted with consideration of sensitive list and tariff rate quotas in schedule of tariff commitments of each member. This study indentified potential Indonesian export commodities using spatial analysis and descriptive analysis in order to map each province’s potential, enhance export activities and increase the utilization rate of trade facilities. The results of this study concluded that ASEAN relatively gained lower compared to ASEAN partner countries. Australia would be the top gainer. RCEP slightly might increase the value of exports, imports and trade balance for Indonesia but the low utilization of trade facilities needs the government's attention to encourage business actors to increase productivity and reach a wider market.

Phillips curve in Canada: a tale of wage bargaining and tariff rate

Phillips curve in Canada: a tale of wage bargaining and tariff rate

THE ECOLOGICAL COMPONENT OF THE DEVELOPMENT OF THE ENTERPRISES OF THE WATER-SEWAGE MANAGEMENTS

In modern conditions, in order to ensure their own independence, enterprises of any industry are forced to constantly monitor and increase the socio-ecologo-economic efficiency of their activities. With particular acuteness, this issue is faced by communal enterprises of the water-sewage management, which is connected both with the specificity of the form of ownership and with the external regulation of activity as a subject of natural monopolies. The main purpose of the activity of the basic typical representative of the industry – is to provide services water supply and drainage, as well as the transportation of drinking water and wastewater, their treatment at the city's treatment facilities. The work examines the problem of researching the directions of development of enterprises water-sewage management, in particular the ecological component of their activity, related to the operation of treatment facilities and equipment in the process of water supply and drainage. Is analyzed the structure of the main cost elements that make up the basis of the production cost of water drainage services. The researching dynamics of historical changes in the most significant elements of expenses (which include energy-intensive elements): electricity and fuel and lubricants. Are separately examines the dynamics of historical changes in the cost of environmental costs, i.e. reagents used in the process of water purification and disinfection. A significant increase in the cost of certain elements serves as a basis for increasing tariff rates for services water supply and drainage. Measures are proposed to improve the water purification process and reduce the cost of water drainage services of the enterprise water-sewage management. Improving the quality of services water supply and drainage, in relation to drinking water and wastewater treatment, the use of the latest more efficient technologies and equipment solve ecological tasks, the efficiency of which depends not only on the improvement of the city, but also on the normal life of the population and the safe operation of industrial enterprises.

Techno-economic assessment of fuel cell-based power backup system as an alternative to diesel generators in Nepal: A case study for hospital applications

A fuel cell-based combined heat and power (CHP) system holds significant potential to be a viable alternative to conventional diesel generators for providing backup power during disruptions. The system generates power with only water as a byproduct, thus promoting environmental sustainability through reduction in greenhouse gas emissions. This study provides a comprehensive techno-economic assessment for replacement of 488 kW diesel generator that powers a hospital in Nepal during power disruption. The counter power capacity of fuel cell is 500 kW. The scope of hydrogen generation has been considered both on-site and off-site. The economic analysis performed for the on-site hydrogen production resulted in a net present value of USD 42,717 with a corresponding internal rate of return of 8.40 % and a payback period of around 10 years, making it an economically viable option. The uncertainty and sensitivity analysis revealed the electricity tariff rate as the most significant cost factor. For off-site hydrogen production, the proposed system is economically feasible if the hydrogen can be purchased below 3.5 USD/kg.

An Empirical Investigation of the Determinants of Protectionism: A Case of Pakistan

Pakistan is among the most protectionist economies of the world and highly protective trade regimes thus calls for an investigation of the determinants of this protectionism. The current study intends to examine the macroeconomic determinants of protectionism in the case of Pakistan employing the Granger Causality test and Impulse Response Function covering a time period from 1988- 2018. The results of the Granger Causality test reveal that unemployment & GDP Granger cause the tariff rate and there exists a unidirectional relationship between these two variables with the tariff rate. Contrary to this, the tariff rate is granger caused by the trade balance. Terms of the trade is found to have a bidirectional association with the tariff rate, while there is no evidence of a causal relationship between the tariff rate and inflation. The results of Impulse Response functions reveal that an increase in unemployment and a higher TOT, both are found to be positively associated with an increased level of protectionism. However, a higher level of GDP or economic growth leads to reduce the protectionism thereby reducing the tariff rate. The results of the study are quite pertinent in identifying the core factors inducing a high level of protectionism in Pakistan

<b>Impacts of Macroeconomic Variables on Foreign Exchange Rate of SAARC Member Countries</b>

Exchange rate (EXR) stability is crucial for especially the developing economies. This study examines the macroeconomic variables which affect EXR in member countries of South Asian Association for Regional Cooperation (SAARC). To do the analyses, data from 1981 to 2019 was relied upon. To estimate the long-run coefficients, Fully Modified Ordinary Least Square (FMOLS) is incorporated. The outcomes of FMOLS exhibit that the variables such as trade, inflation, GDP, total debt services, trade openness, and tariff rate are inversely related to EXR while broad money is found to affect the EXR in positive. As a policy prospect, The Central Bank (CB) is needed to follow tight monetary policy to curtail liquidity of money in economy. It is recommended that CB to discourage government project financing that is to cause increase in money supply but to initiate trend line to facilitate GDP growth, trade, and imposition of tariff to curtail rising EXR.

Dairy trade liberalization and child stunting: Evidence from low- and middle-income countries

Despite the well-studied nutritional benefits of dairy for child linear growth, dairy is less consumed in low- and middle-income countries (LMICs) where the prevalence of child stunting is high. Previous studies have suggested the cost of dairy as a potential barrier to increased dairy consumption in these countries. Surprisingly, little research on the association between dairy consumption and child stunting in LMICs focuses on the role of trade policies, particularly the liberalization of dairy trade. To explore this, we use representative cross-country individual data on child stunting from 2006 to 2020 and link it with country-level dairy trade data. We find that a 10% decline in dairy tariff rates reduces the risk of stunting by 7.78%. Our results are robust to a subsample analysis excluding countries which joined the WTO after 2000 and to an alternative clustering method. As a falsification test, our results show child stunting is not linked with tariffs for coffee and tea. Heterogeneity analysis indicates the associations are more pronounced for boys, children aged 3–5, and children from households with lower socioeconomic status. Although we did not find significant rural–urban differences, the associations are indeed stronger for households without cattle and for countries in Western Africa, South East Asia and Europe and Central Asia. Mechanism analysis suggests that dairy tariffs are positively correlated with milk prices, while they are negatively associated with dairy import values. Lower dairy tariffs are also found to be linked with higher probability of child dairy consumption. Our findings highlight the importance of removing tariff barriers in reducing the cost of dairy and promoting dairy consumption in LMICs. This study has implications for repurposing dairy trade policies in creating nutrition-sensitive agriculture.

Trade Liberalization, IMF Conditionality, and Policy Substitution in Developing Countries

AbstractSubstantial tariff reductions and increased usage of non‐tariff measures (NTMs) have been key dynamics of global trade policy in recent decades. We use highly disaggregated data on applied most favored nation tariffs, NTMs, and trade to investigate how International Monetary Fund (IMF) conditionality as a form of external pressure to reduce tariffs contributed to this dynamic in developing countries. Our results show that structural adjustment programs (SAPs) effectively lowered tariffs without increasing the usage of NTMs. A typical three‐year program containing tariff conditionality decreased tariff rates in the range of 2.0 to 3.8 percentage points in total. Furthermore, IMF programs reduced NTM initializations significantly. We also show that tariff conditionality was more effective in initiating tariff cuts for countries without previous greater globalization efforts than being a “catalyst” for ongoing liberalization efforts.

How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?

Carbon lock-in poses a significant challenge in developing countries such as India and China. To mitigate this issue, these countries can leverage mandatory carbon emission reduction mandates imposed by multinational firms (MNFs) on their domestic manufacturers, thereby spurring the latter's investment in carbon emission reduction. However, facing eco-conscious customers, MNFs might opt to source from carbon-neutral overseas manufacturers even at high import tariff costs. We therefore explore how a local government can adjust the tariff rate and/or the domestic manufacturer's carbon emission reduction efficiency to induce an MNF local sourcing. Our findings indicate that even if the MNF has sourced locally, the overall emissions can be effectively reduced only when the domestic manufacturer's efficiency in reducing carbon emissions surpasses a unique threshold. Regarding social welfare, our results demonstrate a hump-shaped relationship with import tariff rates when an overseas sourcing strategy is adopted. We identify a triple-win situation where the MNF's local sourcing harmonizes the MNF's profit-maximization goal, the local government's environment protection goal, and the social welfare maximization goal. This paper sheds light on the value of MNFs’ sustainability requirements and local sourcing strategy in curbing emissions and tackling the pervasive issue of carbon lock-in that plagues many developing countries.

Bi-objective optimal active and reactive power flow management in grid-connected AC/DC hybrid microgrids using metaheuristic–PSO

Abstract In the context of evolving energy needs and environmental concerns, efficient management of distributed energy resources within microgrids has gained prominence. This paper addresses the optimization of power flow management in a hybrid AC/DC microgrid through an energy management system driven by particle swarm optimization. Unlike traditional approaches that focus solely on active power distribution, our energy management system optimizes both active and reactive power allocation among sources. By leveraging 24-hour-ahead forecasting data encompassing load predictions, tariff rates and weather conditions, our strategy ensures an economically and environmentally optimized microgrid operation. Our proposed energy management system has dual objectives: minimizing costs and reducing greenhouse gas emissions. Through optimized operation of polluting sources and efficient utilization of the energy storage system, our approach achieved significant cost savings of ~15% compared with the genetic algorithm counterpart. This was largely attributed to the streamlined operation of the gas turbine system, which reduced fuel consumption and associated expenses. Moreover, particle swarm optimization maintained the efficiency of the gas turbine by operating at ~80% of its nominal power, effectively lowering greenhouse gas emissions. The effectiveness of our proposed strategy is validated through simulations conducted using the MATLAB® software environment.

Evaluation of generation cost-based feed-in tariff rate for wind energy in Myanmar

Feed-in Tariff (FiT) policy is proven to be an effective mechanism for enabling and accelerating the growth of wind energy industry. The determination of remuneration level in designing FiT system is a critical component that governs the extent of success for adoption of the policy. This study conducts a generation cost-based approach, applying the Net Present Value method, to determine the baseline FiT rate for the case of onshore wind energy in Myanmar. The analysis result indicates that USD 0.1453/kWh is required as a baseline rate to attract the energy producers for investing in Myanmar wind energy sector at the weighted average cost of capital of 11.25%, with debt-to-equity ratio of 70%. The sensitivity analysis is carried out to minimize the uncertainties associated with parameterization. It is found that baseline FiT rate is very sensitive to initial investment cost, and capacity factor whereas it is less sensitive to operation and maintenance cost. It is also found that lower cost of debts and higher debt-to-equity ratios could result in lower FiT values.

Briefly Noted

On September 5, 2023, the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership Panel (CPTPP Panel or the Panel) issued its first decision. The case was initiated in May 2022 by New Zealand which claimed that Canada's system for the administration of its tariff rate quotas on dairy projects is inconsistent with Canada's obligations under the Partnership Agreement. After consultations with Canada failed, New Zealand requested that a panel under Article 28.7 of the Agreement be established to examine the issue. There was a dispute about the role to be played by a prior decision of the US-Mexico-Canada Agreement (USMCA) Panel on similar issues. New Zealand felt that the USMCA Panel decision was “highly pertinent” because of the similarities between relevant provisions in the two agreements, but Canada disagreed, arguing that not only is the USMCA decision irrelevant but that its interpretation of the relevant provisions was incorrect. Australia, which intervened as a third party participant, agreed with New Zealand, pointing to the need to ensure consistent decisions concerning what it deemed were identical provisions in the two agreements. Japan, another third party participant, suggested that the panel ensure that its decision was made in reliance on Articles 31 and 32 of the Vienna Convention on the Law of Treaties (concerning rules of interpretation).

Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus

Abstract It is well known that the protectionist view for tariff protection can be justified if the tariff induced international technology licensing benefits the consumers. We show that this view may not hold true if the domestic firm lobbies for tariff protection. If lobbying determines tariff following the “tariff-function formation” approach, lobbying reduces consumer surplus by reducing the incentive for licensing. However, if lobbying determines tariff following the “political contribution” approach, lobbying increases the incentive for licensing but creates an ambiguous effect on consumer surplus. Hence, whether the protectionist view for tariff protection can be justified under international technology licensing depends on the way the tariff rates are determined.