Trade In Services Research Articles

Digital service trade and carbon total factor productivity: empirical evidence from cross-country panel data

Digital service trade and carbon total factor productivity: empirical evidence from cross-country panel data

Evolution and Motivation of the Value-Added Trade Pattern of Producer Services Based on a Complex Network

With the acceleration of the digital revolution and free trade, the producer services industry has become a new driving force for countries to enhance their global value chain (GVC). The further integration of GVCs has promoted the formation of a global value network covering a wider range of regions and industries. The way of establishing strong core capabilities and competitive advantages for a country’s producer services industry in the vast value network is of great practical significance for achieving industrial structure transformation and upgrading in an open economy. Therefore, based on the Asian Development Bank Multi-Regional Input–Output Database (ADB-MRIO) and the bilateral export value-added accounting method (WWZ), this study constructs a value network of producer services and analyzes its structural evolution and driving factors. The results show the following: (1) The domestic value-added (DVA) network and foreign value-added (FVA) networks of producer services trade exhibit dense characteristics in terms of trade depth. The DVA network has a small-world topological structure, while the FVA network does not have this feature most years. (2) Western countries, represented by the USA, Germany, and the UK, are located at the hub of the global value network, while China’s network status is rising and gradually occupying a core position not only in the Asian region but also in the world. The value chain of producer services shows a pattern of being led by developed countries and extending to developing countries. (3) The broader tendency of modularity is decreasing, indicating that the development process of the DVA and FVA networks is becoming globalized. The members of the community can not only achieve trade interdependence due to geographical proximity but also break through regional limitations and complement each other. (4) The network evolution process is driven by a variety of factors. Industrial and technological distances are conducive to the expansion of the global value flow in producer services. Geographical and linguistic proximity are the main influencing factors, while the role of institutional proximity tends to be weakened.

The service trade with AI and energy efficiency: Multiplier effect of the digital economy in a green city by using quantum computation based on QUBO modeling

This research examines the energy efficiency of city districts through the Malmquist–DEA model and investigates the spatial effects of the service trade and the digital economy on energy efficiency in urban green development. The study also delves into the specific context of the AI service trade to gain insights into and align with the emerging digital intelligence industry. The interplay of the service trade with the digital economy, alongside the AI service trade with innovation, significantly enhances urban energy efficiency and demonstrates positive externalities. Building on the empirical findings, this research employs cluster analysis to explore the green development of city districts and uses AI technology to program green communication and cooperation mechanisms across district clusters, employing quantum computation based on QUBO modeling. This study contributes to a deeper understanding of the cofunction of the service trade and the digital economy in terms of energy efficiency and aids in developing new quality productivities for green cities through quantum-based AI advancements. This research has clear implications for cutting-edge interdisciplinary applications of green AI technologies in social computing science.

Decision Making by Trade-In Programs in the E-Commerce Supply Chain, Considering Cash Rebate Strategies and Platform Services

As the consumer market becomes more saturated, the e-commerce supply chain (E-SC) has introduced the trade-in program in an attempt to drive consumption. This paper considers the strategy of the E-SC to provide cash rebates for consumers participating in the trade-in program and incorporates the e-commerce platform’s trade-in service efforts into the E-SC’s decision-making system. Depending on who provides the cash rebate, we construct four decision-making models of the E-SC, i.e., the no-cash-rebate model, the manufacturer model, the platform model, and the cooperative model, where both the manufacturer and the platform jointly provide the cash rebate. We show that the platform model reduces the trade-in service level, but the manufacturer model increases the trade-in service level. In addition, since the cash rebate increases operation costs, the sale price of products is inevitably improved. Furthermore, the platform model raises product demand, but the manufacturer model lowers product demand. The cooperative model proves effective in enhancing demand only when the manufacturer contributes a minor share of the cash rebate and the trade-in service is less efficient. Cash rebates can increase the E-SC’s profits, but the degree of this increase becomes smaller as the cash rebates increase. The manufacturer and the platform always want to exploit each other’s cash rebate strategies. Consumer surplus and social welfare are highest in the platform model and lowest in the manufacturer model. Taking into account the profits, consumer surplus, and social welfare, the platform model is the most conducive to E-SC system operations.

An Empirical Study on the Factors Influencing the International Competitiveness of Shanghai's Service Trade

An Empirical Study on the Factors Influencing the International Competitiveness of Shanghai's Service Trade

Analyzing the time-frequency impact of digital transformation on the improvement of service trade in Vietnam

This study investigates the dynamic influence of digitalization (DG), gross domestic product (GDP), population (PO), and broad money supply (M2) on service trade (ST) in Vietnam from 1996 to 2022 using wavelet analysis and spectral Granger causality models. The results indicate that there is a positive nexus between variables during the sample period. While the relationship between broad money supply, population, and service trade is significant across different times and frequencies, the cases of ST-DG and ST-GDP are weak and insignificant at low frequencies. Moreover, Granger causality tests reveal that there exist bidirectional associations between the selected indicators. These findings suggest that Vietnam should focus on investment to enhance digitalization and expand the broad money supply, which would improve the service trade, attract foreign direct investment, and strengthen ties with other economies.

Global Value Chain Spillovers and Economic Growth of SAARC Countries under the BRI Perspective

This study revisits the relationship between trade and growth, emphasizing the functions of the global value chain (GVC). This is a pioneer study to empirically evaluate the impact of GVC trade on the economic growth of the South Asian Association for Regional Cooperation (SAARC) nations from the perspective of the Belt and Road Initiative (BRI). The objective of this article is to analyze the potential contribution of BRI in the development of these countries backward, forward and sectoral-level GVC participation. We employed second-generation econometric techniques for this empirical analysis over the period 1990–2022. To ensure the robustness of the results of cross-sectional autoregressive distributed lag (CS-ARDL), we used the augmented mean group (AMG) and common correlated effects mean group (CCEMG) models. The results indicate that forward and backward GVC involvement increases economic growth for SAARC countries. On the contrary, due to improper implementation of domestic policies, economic environment and inadequate absorptive capacity, GVC participation comes with a negative impact on the economic growth of the sample countries. The sectoral GVC trade in manufacturing industries is linked to a favourable impact on growth, while sectoral GVC trade-in service shows a negative association with gross domestic product (GDP). The results of our analysis demonstrate that GVCs are a driver of economic growth. Countries can unlock potential gains by implementing policies that promote participation in GVCs and by strengthening domestic fundamentals through regional collaborations within the BRI.

Structural Change, Growth and the Increasing Service Trade in Low and Middle Income Countries

This paper explains the increasing service export in low and middle-income countries of the world and tries to relate it with structural change and pattern of growth. The authors have constructed a theoretical model to derive hypotheses and estimated empirical results from panel regressions based on data from 34 low and middle-income countries. The theoretical results show that productivity differences caused by endogenous technological innovations and human capital formation lead to a reallocation of resources and structural change. As a result, the relative prices of the goods change. This paper shows that the growing service export is the reflection of industrial backwardness due to lack of capital, technological innovation and infrastructure. The results of panel regression also reveal that service sector-led growth and investment in human capital formation have a significant effect on service export while expenditure on R & D is so low in such countries that it has no effect on per capita income, industrial growth and service export. As investment in human capital formation is high and R&D expenditure is low, the developing countries experience unbalanced growth with an increasing share of services in GDP and export.

Pengaruh Efikasi Diri dan Motivasi Usaha terhadap Keberhasilan Usaha pada Usaha Mikro Kecil Menengah (UMKM) di Wilayah Kecamatan Gunung Anyar Surabaya

This study aims to determine the effect of self-efficacy and business motivation on business success in micro, small, and medium enterprises (MSMEs) in the Gunung Anyar District of Surabaya. This comprehensive study was conducted on micro, small, and medium enterprises (MSMEs) in the Gunung Anyar District of Surabaya, utilizing various research methods, including observation, interviews, and the distribution of questionnaires to respondents as primary research data. The study population was micro, small, and medium enterprises (MSMEs). The population of MSMEs in the Gunung Anyar District of Surabaya recorded at the Surabaya City Cooperatives, Small and Medium Enterprises, and Trade Service is 318 MSME actors. The results of the study obtained were that partially, the variables of self-efficacy and business motivation had a significant effect on business success, and simultaneously or together, the variables of self-efficacy and business motivation had a significant effect on business success. No one has researched human resource management, self-efficacy, business motivation, and business success in micro, small, and medium enterprises in the Gunung Anyar District of Surabaya. Thus, this study is different from previous research studies.

Total reserves as a factor of the economic security of the state

The purpose of the article is to study the most important problems related to the dynamics of total reserves, key factors affecting their volume and structure, the content of state measures aimed at their accumulation and rational use in the context of ensuring the economic security of the state, justification of the most urgent measures, aimed at overcoming existing problems in this area. General scientific and special methods are used: description, comparison, analysis, grouping, synthesis, theoretical generalization, abstract-logical. The volume of total reserves of Ukraine as of April 1, 2024 guarantees financing for 5.8 months of future imports, which characterizes the value of this indicator as “optimal”. The NBU’s net currency sales (funds spent on maintaining the relative exchange rate stability of the hryvnia during the war) during January 2022 – March 2024 exceeded USD 59 billion, or about USD 2.2 billion per month on average, which is two-thirds revenues in favor of the government in the form of loans and grants received during this period. The main factors that led to the unprecedented spending of reserves to support the hryvnia exchange rate were a multiple increase in the deficit of foreign trade in goods and services, an increase in balances on foreign currency accounts of non-financial corporations (the unwillingness of enterprises to sell currency at the current exchange rate), a radical increase in the expenses of refugees abroad, which are accounted for in balance of payments as “travel” or “import of services”. The dynamics of the growth of funds in the foreign currency accounts of legal entities indicates the expediency of considering the possibility of returning to the practice of mandatory sale of part of the foreign currency earnings of exporting enterprises. The parameters of this regulation should become the subject of a professional discussion between the government and the National Bank. Analysis of the long-term dynamics of gold prices indicates the need for a gradual increase in the share of this banking metal in the structure of the country’s total reserves, taking into account the 8-fold increase in its value since 2000. The structure of the country’s total reserves in terms of currencies shows the absolute dominance of the US dollar in it (92 %), which in the medium term will require taking measures aimed at harmonizing the structure of reserves due to the increase in the weight of other currencies that are actively used in settlements with partner countries, primarily euros and Chinese yuan.

Legal Protection for Owners of Well-Known Trademarks Viewed from the Principle of Well-Known Marks

Legal protection for owners of well-known trademarks is a crucial topic in the context of increasingly competitive business environments. Well-known trademarks not only represent the quality of products but also reflect the reputation and image of a company. The principle regarding well-known marks plays an essential role in safeguarding such trademarks from any form of misuse and imitation, which can cause harm to both the trademark owner and consumers. This research aims to delve deeper into the legal protection afforded to owners of well-known trademarks. The methodology employed in this research is normative legal research, focusing on the exposition of concepts and doctrines within legal science. The findings of this study indicate that trademarks meeting the criteria for well-known status, as stipulated in positive law, are entitled to absolute legal protection. This means that if another party uses the same or imitates a well-known trademark, the trademark owner has the right to pursue legal action. In today’s business era, we frequently encounter many well-known trademarks, both domestic and foreign. Therefore, it is essential to secure these well-known trademarks to prevent potential misuse in the trade of goods and services. Such protection is not only beneficial for trademark owners but also for consumers.

Global services market: New realities

Subject. This article discusses the role of maritime transport services in ensuring world trade turnover. Objectives. The article aims to identify new factors, trends and prospects for the development of world trade in services in the context of technological and geopolitical transformations. Methods. For the study, we used statistical analysis and grouping. Results. The article finds that fundamental changes in the global services market are taking place under the influence of digitalization, the green agenda, and due to the transformation of the essence of the Service notion, which is characterized by immateriality and intangibility. The species structure and geography of the world services market have also changed. Conclusions. The transformation of the global services market, which is developing in line with the general objective processes caused by the Fourth Industrial Revolution, is being destructively influenced by geopolitical factors that disrupt global value chains and increase uncertainty. Understanding these processes will help business and government agencies better adapt their actions to the next normal.

Analysis of the Effect of Indonesia-Japan Economic Partnership Agreement (IJEPA) on the Trade in Service Sector in Indonesia

The Economic Partnership Agreement (EPA) is a trade agreement that aims to facilitate market access and considers aspects of economic cooperation and development initiatives between the two countries. The trade agreement between Indonesia and Japan is Indonesia's first bilateral trade agreement covering trade in goods, services, and investment, and entered into force in 2008. The development of the service sector is an important factor in supporting economic growth. This study uses panel data regression with the estimation method used by the gravity model with Difference in Difference (DiD) to see the impact of the IJEPA. The study results show that the interest variable is not significant to the dependent variable, illustrating that the existence of the IJEPA agreement is statistically unable to explain the relationship that occurs with the value of exports and imports of the Indonesian service sector. Implementing IJEPA in Indonesia still does not have an impact and has not provided benefits, especially for service trade.

Does the service trade network impact on technological complexity of exports?——New perspective based on social network approach

ABSTRACT In the context of the digital economy, digital service trade has gradually become a new driving force for the high-quality development of foreign trade in various countries. Based on the bilateral data of digital service trade between 56 countries from 2005 to 2021, this paper constructs the global digital service trade network through social network analysis method. Also, this study examines the impact of the network characteristics on its export technology complexity. According to our research findings, first, in terms of the overall characteristics, the number of participating countries in digital service trade is increasing, and the density is overall low but showing an upward trend. Second, in terms of individual characteristics, the ranking is relatively stable, developed countries such as Europe and the United States with higher centrality, connectedness and heterogeneity are the dominant players in the digital service trade. But the indicators of each characteristic are decreasing over time, verifying the fact that the global digital service trade has become more open and inclusive. Third, we examined that centrality, connectedness, and heterogeneity all contribute significantly to export technological complexity. Technological innovation is the main path of action. The results still hold after performing a series of robustness tests.

Innovative policy of WTO on trade in the global financial services market

The World Trade Organization (WTO) has been actively working to address the various challenges facing the global financial services market and is of great importance for the regulation of trade in general, including trade in financial services. This is done through the WTO’s guidance in the conclusion of trade agreements containing provisions on financial services, such as the General Agreement on Trade in Services (GATS). The main goal of the GATS is to create conditions for legalizing and regulating trade in financial services between member countries. It promotes the creation of a legal framework for trade in services, including financial services, and establishes principlesand procedures to be followed by market participants. In addition, the WTO facilitates the exchange of information and best practices between countries to promote innovative development of the financial sector (FSC), Trade Facilitation Agreement (TFA), and stimulates competition, which can foster innovation. However, specific policies on innovation in the financial sector are usually determined by national governments and regulators, and the WTO helps to create a general framework for their development. However, it should be noted that ongoing efforts are needed to address the remaining challenges and to promote a more efficient and accessible global financial services market. The article examines the key features of the regulatory framework for modern financial instruments in individual countries, as well as the mechanisms of WTO regulation of the global financial services market.

Article: Exploring Shortcomings in International Trade Law in Light of the Expansion of Artificial Intelligence

The objective of this paper is to explore the shortcomings in international trade law (ITL) in view of the expansion of Artificial Intelligence (AI), and to propose some recommendations. AI is contributing to the development of international trade while giving rise to other concerns, such as nontariffs measures. Addressing the legal challenges posed by the integration of AI into various facets of society, including international trade, is of major importance. In this context, this paper explores a number of provisions of the General Agreement on Tariffs and Trade (GATT) 1994, those of the General Agreement on Trade in Services (GATS), and ends with those of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Finally, the article proposes some recommendations to better take into account the concerns that AI may give rise to in the multilateral trading system. It highlights the need for close partnership between the World Trade Organization (WTO), the International Standardization Organization (ISO) and the International Electrotechnical Commission (IEC) to better maximize the benefits of AI while minimizing the risks in the context of international trade. Also, it highlights the importance of harmonizing regulations on the trade of AI products and AI-driven trading and the need for a change in legal design that goes beyond mere incremental adjustments.

Assessing economic resilience in aviation system disruptions based on CGE model

This study employs a Computable General Equilibrium (CGE) model to assess the economic resilience of Shanghai's aviation system disruption caused by Typhoon Lekima. The research integrates advanced modules for disaster shock and economic resilience, providing a comprehensive framework to evaluate economic resilience tactics and their effectiveness. Specially, the disaster shock module is designed to account for perturbations in both commodity flow and passenger flow, and the economic resilience module incorporates both inherent and adaptive resilience tactics. The results show the following. First, Typhoon Lekima significantly impacted Shanghai's aviation system, resulting in substantial GDP losses of 0.52 %, decreased government revenue by 0.29 %, and reduced total investment in the base scenario. Second, the implementation of resilience tactics, both inherent and adaptive, mitigated these losses. Inherent resilience reduced potential GDP losses by 0.29 % in the Shanghai region. Adaptive resilience tactics, such as flight rescheduling, flight diversion, and effective management processes, though initially suppressing GDP due to resource reallocation towards recovery efforts, ultimately enhanced the system's overall resilience. Third, traffic disruptions have a significant hindering effect on regional trade activities, especially in the regional output and value added. The industries most sensitive to traffic disruptions were transportation, storage, and postal service, and wholesale and retail trade. These findings provide valuable insights for policymakers and stakeholders in the aviation industry, highlighting the necessity of resilience tactics to mitigate the economic impacts of future disruptions.

Benefits and Vulnerabilities of the Free Trade Agreement for the EAEU Countries and China

Aim. Objective is to formulate the position of the EAEU in the negotiations on the free trade area with China.Tasks. We determine the potential results of the creation of the China-EAEU free trade area for each country.Methods. The indices of complementarity and trade intensity were calculated, and the benefits to society from the abolition of customs tariffs were calculated using a partial equilibrium trade-policy simulation.Results. The study of supply and demand for excavators showed that the total benefit of consumers (the construction industry) from the abolition of customs duties only slightly exceeds the losses of producers and the government. Based on the complementarity assessment, it was found that the free trade agreement is more beneficial for China than for the EAEU countries — the structure of China’s exports better corresponds to the structure of imports of the EAEU countries. It was revealed that the exports of the EAEU countries to China are not diversified, and the main export goods face minimal tariffs — 0% for crude oil from Russia and Kazakhstan, 3% for potash fertilizers from Belarus, 0% for ores and concentrates of precious metals from Kyrgyzstan, 0% for copper ores and concentrates from Armenia. The EAEU countries may be interested in further liberalization of trade with China due to the intention to export frozen fish, corn, wheat and rice (Russia), tobacco (Kyrgyzstan and Armenia), meat and dairy products (Belarus), and cognac (Armenia).Conclusions. Reduction of duties on the specified goods may be the subject of a preliminary temporary agreement. A free trade zone may be created by finalizing the existing Agreement on Trade and Economic Cooperation between the EAEU and its Member States and the PRC. It is recommended that, in addition to including provisions on the abolition of customs duties, sections on trade in services, investments, and movement of individuals be included.

Brexit and the Services Trade—A Longitudinal Analysis

This study investigates the impact of Brexit uncertainty on the UK's services sector trade from 2016 to 2019 revealing a statistically significant negative impact that varied across sectors and destinations. Using the OECD-WTO Balanced Trade in Services dataset and synthetic difference in differences methodology, the findings indicate an annual shortfall of US$23.7/£18.5 billion in UK services exports compared to a scenario where the UK remained in the EU, translating to a 5.65 percent reduction. The bilateral data suggests an 8.5 percent average decline, with larger exports to countries like Germany and the US being less affected than smaller bilateral exports. The UK bilateral exports to the EU declined by 6.21 percent, while Ireland’s exports expanded by 21.4 percent. The study highlights that small firms were disproportionately impacted, leading to a decline in trade openness and export activities. Methodological sensitivity is underscored, with various approaches estimating Brexit’s impact differently. Sectoral analysis shows significant declines in Travel, Insurance, Finance, Telecom, Business and Cultural Services. Ireland notably benefited post-Brexit, experiencing a 14.75 percent annual increase in services exports due to business relocations. The study emphasizes the critical yet underexplored consequences of economic disintegration on international trade in services, providing essential evidence for future UK-EU trade relations post-Brexit.

Analysis of the Competitiveness of Digital Service Trade Between China and RCEP Partner Countries

Abstract: Based on the digital service trade data from China and RCEP partner countries from 2008 to 2022, this study analyzes the current status of digital service trade, including export scale, structure, and policies. It calculates the international market share and trade competitiveness index, and provides an in-depth analysis of the overall competitiveness of digital service trade and the competitiveness levels by industry within RCEP countries. The study finds that while the international competitiveness of digital service trade between China and RCEP partner countries is relatively weak, the development speed is relatively fast. In response, China should increase efforts in digital infrastructure construction with RCEP partners, promote digital technology research and innovation; enhance digital security and privacy protection, and improve relevant laws and policies; reduce barriers to digital service trade, and increase the influence in formulating digital trade rules; strengthen political mutual trust among RCEP countries, and deepen cooperation in digital service trade.