Regional Trade Research Articles

Effectiveness of alternative dispute resolution in resolving investment disputes in developing countries: Analysis of ICSID cases in Indonesia and Nigeria

This article analyzes the impact of Alternative Dispute Resolution (ADR) on improving the investment environment in Indonesia. Indonesia seeks to enhance legal certainty and create a favorable climate for investors, both local and foreign, by incorporating Alternative Dispute Resolution (ADR) into its legal system. This will provide an efficient and non-judicial method for settling investment issues. This approach is further solidified by the state's adoption of the ICSID Convention via Law No. 5 of 1968, which provides a dependable arbitration mechanism for the resolution of disputes involving foreign investors and the state. The convergence of ADR principles and ICSID regulations not only corresponds to global benchmarks but also reflects the cultural ethos of "musyawarah mufakat" in Indonesia, which advocates for peaceful resolutions. Attracting investment, sustaining economic growth, and participating in regional and global trade frameworks are all dependent on these legal mechanisms being successful. There are far-reaching consequences for Indonesia's long-term economic development, and this research emphasizes the critical significance of legal frameworks in preserving investor trust.

Status and SWOT Analysis of the Internalization of Operations of S Electronics Company, Ltd.

S Electronics Company Ltd. demonstrated a well-defined management structure, agile organizational design, and a commitment to superior customer service, forming the foundation for its global expansion in markets like Vietnam, Thailand, and India. The company's diversified product portfolio, including cutting-edge connectors, strategically positioned it, supported by robust technological development and financial stability. A SWOT analysis highlighted its competitive edge while emphasizing the need to address weaknesses for successful internationalization. Opportunities for market expansion, technological advancements, and financial growth were identified, alongside threats in the global business landscape. Strategic planning leveraged SWOT analysis to enhance strengths, mitigate weaknesses, capitalize on opportunities, and counteract threats. Opportunities offered pathways for market expansion, technological prowess, and overall competitiveness. Threats related to trade policies, exchange rates, intellectual property, cultural disparities, and legal systems underscored international business complexities. Adherence to trade, intellectual property, tax, anti-monopoly, and labor regulations formed a strategic shield against risks, contributing to sustained growth. Prioritizing cultural intelligence ensured effective operations in diverse contexts and maximized global workforce productivity.

담배 제품의 간접광고 금지와 WTO 규정과의 일치성 검토

Purpose: This paper examines whether the ban on indirect tobacco advertising is a potential legal issue under the relevant WTO agreements and explores interpretative solutions. Research design, data, and methodology: In a strict sense, prohibiting brand extension and partnership can be judged as a violation of Articles 15.1 and 15.4 of the Intellectual Property Rights Agreement on Trademark Registration Obligations (hereinafter referred to as the TRIPS Agreement). On the other hand, with Article 20 of the TRIPS Agreement and Article III:4 of the GATT, this study reviewed many aspects of consistency with the provisions of the GATS and TBT agreements. Results: Particular attention should be paid to legal issues related to regional trade agreements (Mega-FTA and investment treaties) or the constitutions of individual countries (freedom of expression), including Korea, and additional legal foundations must be established. Conclusions: This paper finds that governments face fewer legal challenges based on WTO-related trade rules than legal challenges based on regional trade agreements or domestic constitutions. A review of the relevant international trade rules of the WTO does not appear to pose the greatest obstacle to member countries adopting a ban on product placement for tobacco products.

Pak-Saudi Relations & Maritime Cooperation

This paper explores the potential benefits of Pakistan’s relations with Saudi Arabia and consequent trade partnerships, investment prospects, technological advancements, and regional cooperation on the former’s economy. Saudi Arabia’s Vision 2030 has spurred significant investments in its maritime and logistics sectors. The paper argues that Pakistan, with key ports like Karachi and Gwadar, stands to benefit from strengthened maritime collaboration with Saudi Arabia. Increased trade partnerships, particularly with the Gulf Cooperation Council (GCC) countries, can be a major outcome, supported by improvements in port efficiency and logistics infrastructure. Moreover, there are opportunities for Pakistan to diversify its export portfolio, attract foreign investment, and adopt advanced technologies in the maritime sector. It suggests that collaborative efforts in port development, digital trade, and sustainable practices can bolster Pakistan’s maritime capabilities. Engaging in regional cooperation on maritime security, trade logistics, and environmental sustainability can further enhance bilateral relations and economic growth. Lastly, the paper outlines actionable strategies for Pakistan to leverage these opportunities, positioning itself as a pivotal player in regional maritime trade and logistics.

Application and Impact of the Provisions on Technology Transfer in the Regional Agreement

In the context of the lagging legislation of international technology transfer and the lack of unified regulation, the WTO cannot effectively use the dispute settlement mechanism to resolve the related contradictions arising from technology transfer. Signing regional trade agreements has gradually become the main means to regulate and promote technology transfer. However, the developing countries that rely on "market for technology" are often in a passive position, facing the difficulties of signing regional clauses caused by the technology transfer barriers of developed countries and the imperfect means of technology circulation and protection of developing countries, and urgently need to put forward their own countermeasures. In particular, China needs to innovate the domestic technology transfer system through the standard regional trade agreement rules to help our country maintain a good regional trade partnership. By clarifying the application conditions and effects of regional trade agreements, this paper proposes to improve the universality of regional trade agreements from the perspective of international formulation of uniform regulations.

Non-native flora changes in rural gardens of China: the role of tourism

Human cultivation facilitates the naturalization and subsequent invasion of non-native plant species through, for example, protection from predators or reducing environmental stochasticity. With the development of tourism, non-native plant species have been increasingly introduced into rural home gardens for landscape greening and amenity planting. However, few studies have examined non-native flora in rural home gardens, and in particular the importance of tourism in determining changes of garden non-native flora has not been scrutinized. In this study, we investigated non-native plant species in 135 home gardens across five rural tourism villages in tropical China. Attributes related to garden or household characteristics were also collected through interviews and questionnaires. A distance-based redundancy analysis was then performed to reveal the relationships between the non-native species composition and garden attributes. A total of 338 non-native plant species were recorded in the surveyed gardens. Among them, the majority (63%) were ornamentals, whereas 19% were for nutritional uses and 12% were spontaneous weeds. Gardening preference and distance to tourist attractions governed the non-native compositions, with gardens preferring cultural (ornamental) cultivation or gardens close to tourist attractions having more non-native species. These results highlight an increasing role of tourism in promoting non-native cultivation in rural gardens. Recommendations for species risk assessment, trade and supply regulation, and proper garden management are provided to help harness plant invasion along tourism development in rural China and other regions around the world.

Silk Roads, Trade and Territorial Expansion: Kingdom of Georgia in 11th-14th Centuries

Regional or international trade has always played a central role in the history of Georgia. Trade routes made it possible to establish close political, cultural and economic relations with neighboring as well as distant countries. The kingdom of Georgia’s territorial expansion towards Arran, Shirvan, and Armenia in the 11th-13th centuries was largely driven by economic and trade reasons, name-ly the desire to control the regional trade routes which criss-crossed Dvin, Barda, Ganja, Tbilisi, Ani, Trebizond, Ahlat, Tabriz and many other major cities along Georgia’s southern borders. The present article will also pay attention to the changes to the trade routes in the Caucasus region caused by the Mongols and how their invasions changed the kingdom of Georgia’s position in the regional commerce. By mid-13th century new major trade corridors connecting Asia with the Middle East and the Black Sea were geographically distanced from Georgia harming the latter’s geopolitical position in the region.

Constitutional Law-making by International Law: The Indigenization of Free Trade Agreements

Abstract New Zealand’s free trade agreements (FTAs) with the European Union and the United Kingdom break new ground by elevating Indigenous customary protocols to a vector in the regulation of international trade. While in the past the focus has been on securing policy space to protect Indigenous rights, this has shifted: Māori, the Indigenous people of Aotearoa New Zealand, have entered the trade arena, and with them their protocols and customs, as a means of enshrining participation rights for Māori, as a touchstone for international cooperation, as a benchmark for reviewing FTAs and as a method of addressing problems ranging from environmental degradation to unsustainable fisheries. Māori are not just another stakeholder; they have a seat at the table, and this article will canvass to what extent. Other countries with an Indigenous population will develop their own paths to better integrate Indigenous peoples in their foreign trade policies. New Zealand presents one notable example.

Impact analysis of digital trade on carbon emissions from the perspectives of supply and demand

Amidst the escalating challenge of global climate change, it is imperative to further explore whether digital trade, as an emerging element in the global development landscape, can reduce carbon emissions and achieve sustainable development. This study draws upon panel data encompassing 30 provinces and municipalities in China spanning the years 2013 to 2021. By establishing an index system to gauge regional digital trade development levels, the article examines the impact mechanism and spillover effects of digital trade on carbon reduction from both the supply (enterprises) and demand (residents) perspectives. The research results show that: (1) Digital trade can effectively promote regional carbon reduction, with a more pronounced effect in China's central and western regions and lower carbon emissions regions. (2) Digital trade can incentivize green innovation by enterprises and improve residents' consumption behavior, thereby reducing carbon emissions. (3) Digital trade has spillover effect on carbon emissions, and this “neighborhood effect” is greater than the “local effect”. Digital trade provides strong support for carbon reduction and sustainable development and also provides a strategic direction for government policy formulation.

Trade-induced carbon-economic inequality within China: Measurement, sources, and determinants

Carbon-economic inequality (CEI) occurs due to the unequal exchange between embodied CO2 emissions and value-added in interregional trade. How to reduce CEI has become an urgent task to realize the Sustainable Development Goals. In this study, we quantify the CEI in bilateral and regional trade in China using the embodied CO2 emission and value-added during 2012–2017. Then, we analyze the drivers of CEI changes using the multiplicative structural decomposition analysis. Finally, we measure national CEI using an extended Gini coefficient and further identify the sources of inequality using the Shapley decomposition approach. The results indicate that 1) inequalities in bilateral trade mainly occur between the three north regions (North, Northwest, and Northeast) and eastern coastal regions (Beijing–Tianjin, South coast, and Central coast), and the inequalities generally exhibit worsening trends during 2012–2017. In regional trade, the Northwest suffers the worst and widening inequalities, while the Southwest has obtained an expanded advantage. 2) the decomposition results show that coal efficiency and input structure disparities are the main factors that exacerbate CEI in bilateral trade between the three north and Beijing–Tianjin/South coast regions. Improved input structure is the leader in helping the Southwest reduce CEI in bilateral and regional trade. 3) the overall CEI continues to deteriorate, with the Gini coefficient increasing from 0.260 to 0.305 during 2012–2017, where regional gap and intra-regional inequality, coal-induced CO2 emission, and the electricity production industry are the leading causes. This exacerbated CEI calling for optimizing regional trade patterns and providing holistic solutions for sustainable development.

Informational lobbying and commercial diplomacy

AbstractWhat determines the content of bilateral diplomacy? I argue that the foreign policy issues prioritized by specific embassies are influenced by their diplomats' sources of information. For evidence, I study the proliferation of American Chambers of Commerce (AmChams)—private interest groups composed of US firms that are operating in specific host states—over the 20th and early 21st centuries. AmChams became key sources of information for US embassies, particularly on issues of relevance to the private sector (such as tax, trade, and investment regulations). Using novel text data from approximately 1500 oral history interviews with former diplomats, and leveraging the institutional structure of diplomatic rotation, I show that diplomats who were exposed to active AmCham branches paid significantly greater attention to commercial issues. These results identify a new avenue through which interest groups can influence foreign policy, help explain the proliferation of probusiness international agreements over the past several decades, and contribute to the growing literature on diplomacy in the international political economy.

The trade effect of regional trade agreements in the presence of duty drawbacks

AbstractBefore regional trade agreements (RTAs) come into force, some firms enjoy duty‐free imports using other tariff regimes such as a duty drawback (DD) regime. For such firms, the use of RTA tariff regimes will not provide additional benefits in terms of duty exemption. In this study, we examine the trade effects of RTAs in the presence of a DD regime. We theoretically demonstrate that firms that switch from a DD to an RTA regime will either increase or decrease their imports. Subsequently, we empirically analyse the effect of this switching on imports using firm‐level trade data from Thailand. The empirical results show that switching firms either increase or do not change their imports. Our data also suggest that this increase in imported inputs is used to produce goods for the domestic market, not the export market. We also reveal that relatively small‐sized firms tend to switch to the RTA regime, while relatively large‐sized firms continue importing under the DD regime even after the entry of RTAs into force. With these results, we discuss the implication for the magnitude of trade creation effects of RTAs under the presence of DD regimes.

Carbon emissions trading price forecasts by multi-perspective fusion

<p>The precise prediction of carbon emissions trading prices is the foundation for the stable and sustainable development of the carbon financial market. In recent years, influenced by a combination of factors such as the pandemic, trading regulations, and policies, carbon prices have exhibited strong random volatility and clear non-stationary characteristics. Traditional single-perspective prediction methods based on conventional statistical models are increasingly inadequate due to the homogenization of features and are struggling to adapt to China's regional carbon emissions trading market. Therefore, this paper proposes a multi-perspective fusion-based prediction method tailored to the Chinese market. It leverages carbon emissions trading information from key cities as relevant features to predict the price changes in individual cities. Inspired by the development of artificial intelligence, this paper implements various time series models based on deep neural networks. The effectiveness of the multi-perspective approach is validated through multiple metrics. It provides scientific decision-making tools for domestic carbon emissions trading investors, making a significant contribution to strengthening carbon market risk management and promoting the establishment and rational development of a unified carbon market in China.</p>

How interstate soft conflicts affect bilateral migration: Results from a structural gravity model

This study aims to empirically examine the impact of interstate soft conflicts on bilateral migration. Interstate soft conflicts that arise when diplomacy fails and a military operation seems too extreme may act as a policy tool and have a negative effect on bilateral relations. The empirical approach uses balanced panel data with annual observations and a theory-consistent structural gravity model of migration, augmented by a new measure of interstate soft conflict. The findings suggest that interstate soft conflicts have a lasting adverse effect on migration, regardless of the control for omitted variables (presence of regional trade agreements, various types of sanctions, the state acts, and militarized interstate disputes) and different model specifications. More specifically, these conflicts result in an average reduction of about 23.35% in bilateral migration. After accounting for the time delay in the effect and addressing reverse causality, the findings suggest that interstate soft conflicts may exert a prolonged (the effect disappears after three years) adverse impact on bilateral migration flows, causing a reduction of approximately 34.22%. Therefore, the study’s findings not only illuminate the complex relationship between soft conflicts and migration but also underscore their significant implications. These insights are valuable for policymakers and researchers, providing a solid foundation for informed decision-making and further exploring this complex issue.

Navigating stormy waters: a middle power perspective

Abstract Structural shifts in patterns of international production, trade, and investment have been spurred by the globalization of supply chains. Today, however, a range of factors, including wars and sanctions, the increasing divide between Western and Chinese approaches to the economy, the increasing links between economic security and national security, and between trade and environmental regulation, are contributing to the fragmentation of international economic frameworks and growing populist and protectionist sentiment. Competition for advantage through industrial subsidies and the setting of digital and environmental standards risks enshrining a less-than-global economic order. In many fields, however, multilateral cooperation, rulemaking, and enforcement in serving shared objectives, in various international organizations, multi-stakeholder forums, and by the private sector, continues to function well. In this ever-more complex international context, where clubs, coalitions, and informal networks among nations are increasingly prevalent, middle powers are wise to remain both agile and resolute in ensuring that national interests are advanced through smart diplomacy, encompassing working with like-minded in caucuses and informal settings that serve to build broader consensus, engaging business and other stakeholders at home and abroad in support. Canada’s experience and current efforts provide a constructive example for middle powers.

Impact of Anti-Dumping on Chinese Exports to Countries in ASEAN Plus 6

ABSTRACT Concerns about China’s excessive production capacity prompt a closer examination of Anti-dumping Duties (ADs) as a tool for managing trade imbalances. Within the ASEAN region, ASEAN plus 6 countries, especially India, are emerging as alternatives to China in global value chains. These countries import a broad range of products from China, including intermediate goods, making it vital to analyze the effects of ADs on these imports. Using the Poisson Pseudo-Maximum Likelihood (PPML) method, which effectively handles zero trade flows, heteroskedasticity, and endogeneity, this study explores the use of ADs beyond traditional major economies like the US and EU, focusing on their adoption by less economically developed countries. The findings show that ADs significantly curtail Chinese exports, potentially hindering stronger cooperation within ASEAN plus 6 and slowing regional trade dynamics. This research serves as a critical benchmark for assessing China’s strategic role in global economic leadership, viewed with reservations by several countries, including the US. It emphasizes the need to further explore China’s interaction with ASEAN plus 6 partner countries, particularly concerning trade remedy such as ADs and their impact on regional integration.

Import Ban Efficacy on Second-Hand Clothing in the Perspective of Regulatory and Sustainable Development Goals

The study aims to analyze ban import effectiveness on second hand clothing in Kuningan Regency. The study utilized research specifications, an empirical legal approach. The findings revealed that Article 47 paragraph (1) of the Trade Law and Regulation of the Minister of Trade Number 40 of 2022; Amendments to Regulation of the Minister of Trade Number 18 of 2021 ban the importing of used apparel. In addition, the regulation is outlined in Article 69 of law number 32 of 2009; environmental protection and waste management, in fact, are not implemented effectively in Kuningan Regency and Second-hand clothing is related to sustainable development goals number 12, namely ensuring sustainable consumption and production patterns. There are seven thrift shops in the vicinity, but they are disregarded by law enforcement, with no supervision at all. To summarize, Kuningan Regency's local administration lacks a stronger legislative framework for law enforcement. As a result, it is critical to create a Regional Regulation governing imported used garments, as well as to socialize with business actors and the community.

Do environmental provisions in regional trade agreements help to increase environmental innovation?

ABSTRACT Assessing the effectiveness of environmental provisions in regional trade agreements (RTAs) on environmental outcome is important. This paper calculates the RTA strength with environmental provisions and RTA strength without environmental provisions. Then we explore the effect of environmental provisions in RTAs on environmental innovation using panel data for 77 countries from 1995 to 2013. The empirical results show that the overall RTA intensity signed by a country has no significant impact on environmental innovation. However, there are some differences when considering the presence of environmental provisions. Specifically, the RTA intensity with environmental provisions has no significant effect on its environmental innovation. However, a significant negative relationship exists between RTA intensity without environmental provisions and environmental innovation. Our conclusion provides policy insights for policymakers considering incorporating environmental provisions into RTAs.

Do deep regional trade agreements facilitate international research collaboration?

ABSTRACT We examine whether regional trade agreements (RTAs) facilitate international research collaboration. First, using a two-country model of a continuum of oligopolistic industries with process research and development (R&D) investment and spillovers, we analyze whether trade liberalization through a trade agreement with shallow or deep economic integration increases the number of firms that collaborate. We then empirically investigate the effects of shallow and deep RTAs by employing data on patents with multiple inventors from different countries at the United States Patent and Trademark Office for 114 countries/regions over 1990–2015. We interpret co-inventions by inventors from different countries as evidence of international research collaboration. We find that both shallow and deep RTAs are positively associated with research collaboration among member countries, and that the effect of deep RTAs on international research collaboration is stronger than that of shallow RTAs under certain conditions.

A gravity model analysis of trade regulations on wood products exports: Evidence from Cameroon, Ghana, and the republic of Congo

The study assesses the impact of the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA) and the Lacey Act Amendment (LAA) on the export quantities of wood products from Cameroon, Ghana and the Republic of Congo using the panel gravity Poisson Pseudo Maximum Likelihood (PPML) technique. The results indicate that FLEGT VPA had a negative and significant impact on industrial roundwood export quantity from all three countries. Similarly, its effects on the export of sawnwood and wood-based panels are also negative, except for Cameroon. On the other hand, the impact of LAA appears to be mixed. These results are validated by applying an alternative Driscoll-Kraay robust standard error estimation method.