European Trade Research Articles

From Western India to Eastern Africa—the Rise of the Parsis in the 18th and 19th Centuries

Abstract The present paper examines the socio-economic conditions for the ascendancy of the Zoroastrian community in Western India between the 18th and 19th centuries. This study reinforces the well-established thesis on the role played by the Parsis in the development of capitalism in India. What distinguishes it from other narratives is the periodization of this development and the consideration of Parsi agency in the Western Indian Ocean region and East Africa, especially Mozambique. The cooperation of the Parsis with the European trade companies and private European traders as of the mid-17th century—most notably, their links to the English East India Company, which boosted the Zoroastrian communities of northwestern India—is investigated. I try to show how the Parsis, who had been predominantly peasants, farmers and artisans from the 10th to 17th centuries, increasingly embarked upon trade, moneylending, brokerage and production. Because of their accumulated wealth, their numbers as well as their influence augmented throughout the 18th and 19th centuries.

Metal Objects Were Much Desired: A Sixteenth-Century Shipwreck Cargo off the Coast of Esposende (Portugal) and the Importance of Studying Ship Cargos

During winter storms in 2014 and 2017, strong waves exposed hundreds of timbers and artefacts at the Belinho beach, in the North of Portugal. These ship remains were later discovered to belong to a 16th-century shipwreck, probably originating from Northern Europe. This paper aims to discuss the importance of cargo analysis through the study of the material culture associated with that site, consisting mainly of hundreds of pewter, brass, lead, iron, and stone artefacts. Most of these objects seem to have belonged to the ship’s cargo and are tied to a European trade system reflecting economic, cultural, and symbolic behaviours.

The effects of free trade agreements on the stock market: Evidence from Vietnam.

This study examines the effects of news events related to the European Union-Vietnam Free Trade Agreement (EVFTA) on the Vietnam stock market from 2010 to 2020. We calculate sectoral abnormal returns prior to, during, and after announcements and find that the Vietnamese stock market is susceptible to these events. We discovered that the announcement had a negative impact on the market, which might diminish the effectiveness of the Agreement. The findings show that more than half of Vietnam's sectors had an immediate reaction to EVFTA announcements, with fourteen reacting negatively and six responding positively. Two of the ten events did not have any immediate impact on these industries but all events resulted in either early or delayed reactions. We also find market scepticism and major changes in the deal led to the emergence of a diamond risk structure. We run multiple robustness tests to account for market integration and other factors that may affect stock returns. In addition, we explore potential sectoral systematic risk changes following these occurrences using different ARCH-type models. These additional tests confirm the robustness of our findings.

The demand for central clearing: To clear or not to clear, that is the question!

This paper empirically analyses whether post-global financial crisis regulatory reforms have created appropriate incentives to voluntarily centrally clear over-the-counter (OTC) derivative contracts. We use confidential European trade repository data on single-name sovereign credit default swap (CDS) transactions and show that both seller and buyer manage counterparty exposures and capital costs, strategically choosing to clear when the counterparty is riskier. The clearing incentives seem particularly responsive to seller credit risk, which is in line with the notion that counterparty credit risk (CCR) is asymmetric in CDS contracts. The riskiness of the underlying reference entity also impacts the decision to clear as it affects both CCR capital charges for OTC contracts and central counterparty clearing house (CCP) margins for cleared contracts. Lastly, we find evidence that when a transaction helps netting positions with the CCP and hence lower margins, the likelihood of clearing is higher.

Human–animal entanglements in the early medieval European slave trade: re‐reading the Raffelstetten customs regulations

Frankish customs regulations recorded in the tenth‐century ‘Inquest on the tolls of Raffelstetten’ have long formed a cornerstone of traditional arguments about slavery's role in the early medieval European economic revival. This paper experiments with the application of a more‐than‐human lens to the Raffelstetten record and other evidence to generate new insights into the intimate experience of enslavement and the interspecies networks of relations that shaped the slave trade and slave markets in early medieval Europe. Human and animal entanglements, as revealed in the Raffelstetten record, determined how enslaved people experienced capture, transport, and sale.

The COVID‐19 pandemic and European trade patterns: A sectoral analysis

AbstractThis article examines how the COVID‐19 pandemic affected European trade patterns. Specifically, dynamic panel data models are estimated over the period 2019M1–2021M12 to assess the effects on exports and imports of various sectors and products (selected on the basis of their trading volume or strategic importance) of the restrictions and of other policy measures adopted by national governments during the crisis. The results suggest that the impact of the COVID‐19 pandemic was heterogeneous across sectors and product types, both the initial drop and the subsequent rebound being different depending on sectoral characteristics and the degree of resilience. In particular, trade flows of durable products were more significantly affected by the pandemic compared to those of non‐durable ones.

The Calcutta Marwaris and the Swadeshi Movement: In the Context of Boycott and Swadeshi Politics (1905-1907)

At the dawn of the 20th century, an organized struggle against the partition of Bengal significantly influenced the trajectory of Indian politics. The Swadeshi movement engendered political extremism within the realm of Indian nationalism, leading a contingent of educated Bengalis to take up arms against British rule. In these circumstances, Bengali leaders adopted the policies of 'Boycott' and 'Swadeshi' to undermine British economic interests in Bengal. This paper seeks to explore the role played by the Marwari community of Calcutta in the anti-partition movement of 1905. During that era, the Marwaris were integral to the European trading system. They procured raw materials from various parts of the country for export and served as distributors of foreign products in the local market. Marwari traders were aligned with the British in the realm of commerce. Given this context, it is natural to question how the Marwari traders of Calcutta reacted to the boycott of foreign goods. What if we were to uncover, albeit sparingly, instances of Marwaris supporting the anti-partition boycott movement in history? This paper aims to address the following questions to comprehend the involvement of Calcutta's Marwaris in the 1905 Swadeshi Movement. Firstly, to what extent did the policy of boycotting foreign goods succeed within the Swadeshi movement? Secondly, what was the impact of the 'Boycott' and 'Swadeshi' policies on the Calcutta Marwaris? And thirdly, did the Calcutta Marwaris indeed participate in the Swadeshi Movement, and if so, what motivated their involvement? Most prevailing studies have dismissed the participation of the Marwari Community of Calcutta in the Swadeshi movement. This paper aims to uncover the answers to these questions and shed light on the extent of the Marwari community of Calcutta's involvement in the Swadeshi movement.

Towards a Just Circular Economy Transition: the Case of European Plastic Waste Trade to Vietnam for Recycling

Exporting waste for recycling to destinations without sound recycling capacity raises questions of fairness and sustainability. Due to insufficient recycling infrastructure in Europe to manage the growing generation of plastic waste, there has been an increase in waste trade for recycling in a complex global value chain, with the stated goal of achieving sound resource recovery. However, such trade poses increasing governance and sustainability challenges. The EU has implemented policies and systems for plastic waste management, including separate collection to prevent potential harm and promote resource reuse. Nevertheless, waste handling is often outsourced without transparency to countries with cheaper operating and labour costs, which can cause harm to individuals, societies, and the environment. Fifty per cent of the collected European plastic waste for recycling is shipped for recycling outside the EU without accountability. This Vietnamese case study of the EU plastic waste exports for recycling aims to increase our understanding of waste governance and its circularity, sustainability and justice implications. We adopt a multidisciplinary perspective to understand the challenges of the EU’s plastic waste export practices for the broader socio-ecological system. We propose a multidisciplinary framework as an ecocentric ethical guide for just and circular future waste shipment practices with strong consideration for the social and ecological dimensions. We hope that this research and its outcomes can provide insights for forthcoming policies, such as the United Nations treaty on plastic waste pollution.

Whose negative emissions? Exploring emergent perspectives on CDR from the EU's hard to abate and fossil industries

Net zero targets have rapidly become the guiding principle of climate policy, implying the use of carbon dioxide removal (CDR) to compensate for residual emissions. At the same time, the extent of (future) residual emissions and their distribution between economic sectors and activities has so far received little attention from a social science perspective. This constitutes a research gap as the distribution of residual emissions and corresponding amounts of required CDR is likely to become highly contested in the political economy of low-carbon transformation. Here, we investigate what function CDR performs from the perspective of sectors considered to account for a large proportion of future residual emissions (cement, steel, chemicals, and aviation) as well as the oil and gas industry in the EU. We also explore whether they claim residual emissions to be compensated for outside of the sector, whether they quantify these claims and how they justify them. Relying on interpretative and qualitative analysis, we use decarbonization or net zero roadmaps published by the major sector-level European trade associations as well as their statements and public consultation submissions in reaction to policy initiatives by the EU to mobilize CDR. Our findings indicate that while CDR technologies perform an important abstract function for reaching net zero in the roadmaps, the extent of residual emissions and responsibilities for delivering corresponding levels of negative emissions remain largely unspecified. This risks eliding pending distributional conflicts over residual emissions which may intersect with conflicts over diverging technological transition pathways advocated by the associations.

Philosophical reflections on Japan’s Sakoku policy: seventeenth-century English perspectives

ABSTRACT After the expulsion of the Portuguese from Japan in 1639, European trade with Japan was restricted to the Dutch. Doors were closed to other Western nations for the next 215 years. This isolationist policy of Japan’s is commonly known as ‘Sakoku’. This article considers how Sakoku was viewed and judged in the eyes of English thinkers in the seventeenth century working in the natural law tradition. However, such normative philosophical reflections and accounts are virtually unknown in this period. This article takes up Charles II’s letter written to the Japanese ruler in an effort to reopen trade with the Japanese in the 1670s, and draws attention and analyzes its appeal to natural law. While the natural law argument in Charles’s letter was commonplace and typically adduced in the context of criticizing trade-limiting policies, the article shows that it can also be seen as an acceptance of Japan’s Sakoku policy.

Heat Pump as an Emission Reduction Measure for Ships

Greenhouse gas regulations from the International Maritime Organization, such as the Carbon Intensity Indicator and the Energy Efficiency Existing Ship Index are drawing attention to the implementation of energy efficiency technologies in ships to lower emissions. Presently, more attention is paid to energy efficiency measures related to propulsion (e.g. speed management) and auxiliary energy use (e.g. onshore power). This study compares the environmental impact and cost of replacing heat pumps as an energy efficiency measure instead of oil-fired boilers for two case study vessels by comparing the life cycle impact of different strategies to fulfill the thermal load of vessels while at the port. In terms of life cycle emissions, the heat pump operated using onshore power has the potential to reduce global warming potential by 88% compared to an oil-fired boiler. This accounts for saving 3% and 8% of annual greenhouse gas emissions from entire ship operations, including emissions from engines for the respective case study ships. In addition, shifting to a heat pump avoids NOx and SOx emissions, which adversely affect air quality in the populated areas near the port. Cost results show that the heat pump has an overall higher cost of ownership for case study vessel 1 and a lower cost of ownership for case study vessel 2 compared to oil-fired boiler. Depending on the energy use of specific ships, heat pumps can be cost-competitive at existing carbon emission allowance prices (approximately 90€/tCO2) in the European emission trading system. For the assessed cases, with the emission trading scheme, the return on investment is less than six years and three years for case study vessels 1 and 2 respectively. The study also shows that operating a heat pump is more cost-effective than directly using electro-fuel in a boiler for thermal loads.

The European Union's Free Trade Agreement with New Zealand: Motivations and Implications

The European Union's Free Trade Agreement with New Zealand: Motivations and Implications

Analiza korelacji w stosunkach międzynarodowych na przykładzie wybranych aspektów stosunków polsko-niemieckich

Correlation analysis is one of the tools that can be used when examining the relationship between quantitative and qualitative variables in international relations. To carry it out, it is important to meet the necessary assumptions regarding a given correlation coefficient. Several of the most used coefficients are presented, broken down into quantitative, ordinal, and nominal variables. The aim of the study was to present the use of correlation analysis on the example of selected economic and non-economic aspects of Polish-German relations. Trade and the structures of the two countries’ European trade partners were shown to be strongly correlated using Spearman’s rank correlation coefficient. In turn, using the chi-square test of independence, it was also found that there is no statistically significant relationship between Germans residing in one of the former German states and maintaining contacts with Poland. A model for subjective analysis of relationships and influences was also proposed. Consequently, it is suggested that statistical methods should be used more frequently in the study of international relations as a complement to classical descriptive methods.

Reorientation of trade between the European Union and the Russian Federation under sanctions

The issue of the sustainability of the Russian economy, which is under unprecedential geopolitical pressure, is one of the main and most sensitive in the modern agenda of both Russian and foreign scientific research. The task of identifying the effects and effectiveness of trade restrictive measures faces scientists on both sides of the confrontation. Some need to demonstrate the achieved effect, others need to be convinced of adequate containment and overcoming. Solving this problem is accompanied by a search for new channels of foreign economic relations, both in trade and in the investment, which inevitably raises questions about the possibilities of reorienting Russian foreign trade, which for many years was focused on the EU as the main supplier of material and intangible resources. Since February 2022, the European Union has developed and introduced a significant number of large-scale trade restrictive measures. The purpose of this article is to analyze the impact of trade restrictions of EU member states on trade with Russia from the point of view of reorienting European trade flows to other countries in the context of circumventing sanctions and identifying product items for which trade substitution and reorientation to other markets is possible. To achieve this goal, a methodology has been developed and proposed for identifying those product items for which such substitution has not occurred and a certain dependence of European countries on Russian supplies still remains, which means that retaliatory restrictive measures can be applied to these items. The analysis made it possible to identify a significant change in trade flows from EU member countries, replacement of trade due to reorientation to other neutral countries, as well as groups of goods that currently could not be replaced.

탄소배출권 거래가 전남지역 산업 생산활동에 미치는 영향

When comparing South Korea's emission trading market on a global scale, such as in Europe, the United States, and China, South Korea possesses the hardware infrastructure required for the operation of an emission trading system. However, it appears to be lacking in the software aspect, including the implementation of various carbon reduction policies to complement the carbon emission trading system. The study empirically analyzes the impact of the carbon emission trading system on industries in Jeonnam. First, the carbon emission trading system does not seem to significantly constrain short-term production activities of businesses. Second, when examining the impact of carbon emission prices (KAU, EUA) on major industries in the Jeonnam region, carbon-related variables act as information intermediaries. It is evident that the chemical and steel industries in Jeonnam play the role of information recipients. Third, concerning the connectivity network with KAU as the central variable, it is apparent that the chemical and steel industries in Jeonnam receive more influence from KAU rather than influencing it. In the case of the connectivity network with EUA as the central variable, EUA plays the role of information recipients for the chemical and steel industries. This can be attributed to the participation of these industries in the European carbon emission trading market while exporting chemical and steel products to Europe, affecting EUA demand and prices. In the future, the impact of carbon emission reduction policies is likely to increase for domestic industries and companies in the Jeonnam region in the short term. To achieve regional and national carbon neutrality, policy measures tailored to the industrial structure characteristics of the Jeonnam region must be developed.

Supply Chain Interconnectedness in Times of Crises: A Gravity Model with DiD Analysis of COVID-19 Effects on Central and Eastern European Trade

This paper explores the impact of COVID-19-induced disruptions on supply chains, specifically focusing on the interconnectedness of supply chains and the transmission effects they cause. The gravity model framework, together with difference-in-differences analysis, is employed to analyze monthly trade patterns among Central and Eastern European (CEE) countries, Western European countries, and other trading partner countries. The model presented accounts for the country’s roles in global value chains (GVCs) by incorporating data related to exports, imports of intermediate and capital goods, and imports of final consumption goods. CEE countries have demonstrated a certain resilience during the COVID-19 pandemic. Yet, they were not immune to adverse consequences due to disrupted supply chains, primarily in the imports of intermediate and capital goods. We find that the countries that suffered from the COVID-19 pandemic the least demonstrated remarkable resilience against disrupted GVCs. The findings of our study enrich the literature on the effects of the COVID-19 pandemic, specifically for the CEE region, by providing a framework for understanding the pandemic’s impact on international trade. The results show that supply shock might be greater than demand shocks on production and trade dynamics. Furthermore, our results suggest that policymakers seek adaptability to changing supply and demand patterns, while enterprises should consider broader diversification both within the region and locally.

ECONOMIC TRENDS IN THE REGION OF SOUTHEAST EUROPE AND THE SPECIFICITY OF THE CEFTA AGREEMENT

<p><span style="font-size: 12.0pt; line-height: 107%; font-family: 'Times New Roman',serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Economic collaboration among Southeast European countries and the establishment of free trade with the European Union are seen as potential drivers for regional development. However, given the region's intricate political landscape and historical challenges, achieving these objectives faces hurdles stemming from political and historical complexities. In an effort to fortify regional ties, the European Union has provided support through mechanisms such as Bilateral Free Trade Agreements, Generalized Trade Preferences, and the Central European Free Trade Agreement (CEFTA) of 2006. Since the inception of the CEFTA agreement in 2006, the Free Trade Agreement has emerged as a pivotal catalyst in enhancing international trade in Southeastern Europe. It has played a crucial role in fostering economic integration, streamlining trade processes, boosting regional trade volumes, and establishing a cohesive economic zone that appeals to foreign direct investors and facilitates the mobility of professional service providers. Over the past fifteen years, intra-regional trade has experienced significant growth, accompanied by a rising proportion of trade occurring within the region. The liberalization of trade within CEFTA has not only stimulated market competition but has also spurred integration across various sectors and industries in the region. Furthermore, it has acted as a catalyst for foreign direct investment, both from external sources and within the region itself.</span></p>

Lives versus livelihoods in the middle ages: The impact of the plague on trade over 400 years

To what extent did outbreaks of bubonic plague disrupt trade? We estimate the impact of epidemics on trade between regional wheat markets over four centuries — from the Black Death in the 14th century, until the medieval form of the plague became extinct in the 17th century. Using a gravity model, we find that outbreaks had a statistically significant, but relatively modest, impact on local variations in wheat prices. The results provide quantitative evidence on the extent to which epidemics disrupted markets and trade in pre-industrial Europe.

Impact of the Primorsky International Transport Corridor on the hinterland competition between ports in Northeast China and Russian Far East

The Primorsky International Transport Corridor (PITC) is considered an important component for connecting the Eurasian Economic Union and the Belt and Road Initiative. However, its development will change the existing transportation and port networks among neighboring countries or regions, which could potentially lead to hinterland competition between regional ports. From the perspective of shippers' route selection for import and export goods, this paper examines the impact of the PITC on the hinterland competition between Russian Far East Ports and Northeast China Ports by establishing a generalized land-sea combined transportation cost model. Furthermore, using the method of scenario analysis, this paper predicts and analyzes the evolution of the hinterland of Russian Far East Ports and Northeast China Ports, and assesses the impact of PITC on port accessibility in Northeast China. It is found that the hinterland competition between Dalian port and Far East ports will intensify with the construction of PITC. If the PITC construction enters a mature stage and the Northern Sea Route is opened in the future, Far East ports will capture more than 60% of the foreign market in Northeast China and Europe trade. The port transshipment efficiency is a key factor affecting the performance of the PITC and port hinterland.

Economic Security and the Politics of Trade and Investment Policy in Europe

Facing recent global disruptions brought about by the COVID-19 pandemic, the war in Ukraine, climate change, and the race for raw materials and technology needed for the green transition, economic interdependence—not least unilateral dependence—has increasingly come to be seen as a security threat. In response, the EU has put resilience and strategic autonomy at the centre of its trade and investment agenda. The EU was long resistant to this geoeconomic turn, that is, the use of economic tools for geopolitical purposes in normal times. Since 2017, however, the EU has placed greater emphasis on identifying and mitigating the security vulnerabilities that accrue from open markets. This geoeconomic turn has culminated in the June 2023 release of the European Commission’s Economic Security Strategy, which aims to maximise the benefits of economic openness while minimising the risks from economic interdependence. The aim of this thematic issue is to analyse the foundations of this new European focus on economic security and, more specifically, on the increased use of geoeconomic instruments. Coming at this objective from a variety of disciplinary traditions, methodologies, and substantive focus, our contributors tackle, among others, the following questions: Why has the EU abandoned its reluctance to use geoeconomics and finally made the switch towards economic security? How does the EU’s approach compare with other major global players? And, what are the long-term implications of the EU’s economic security strategy for European integration, its relationship with partners and allies, and the global economic order?