Trade-related Policies Research Articles

Carbon dynamics: A holistic analysis of FDI, trade liberalization, urbanization, economic growth, and effects on CO2 emissions in South Asia

In recent years, South Asian nations have experienced robust economic growth, prompting concerns among policymakers about the sustainability of this growth due to rising pollution emissions. This study conducts an objective assessment of the impact of key variables, such as trade liberalization, economic growth, foreign direct investment inflows, and urbanization, on environmental outcomes across selected economies of South Asia from 1990 to 2022. To describe cross-sectional dependencies in the dataset, panel cointegration techniques are employed alongside cross-sectionally augmented autoregressive distributed lag (CS-ARDL) models. For added robustness, dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) techniques are utilized to investigate the long-term coalition among the variables. The study integrates first- and second-generation panel methods to improve the depth and reliability of the analysis by addressing methodological limitations. The pragmatic results reveal that trade liberalization, FDI inflows, economic growth, and urbanization increase CO2 emissions by 0.392%, 0.354%, 0.275%, and 0.429%, respectively. Dumitrescu and Hurlin (D–H) causality tests show a unidirectional causal link from trade liberalization to environmental degradation. Additionally, a bidirectional causal link is observed between environmental deterioration and both FDI inflows and urbanization in South Asian countries. To mitigate environmental impact, these nations should evaluate foreign investment conditions and enhance technology transfer from foreign enterprises. Furthermore, implementing trade-related policies to reduce CO2 emissions is imperative.

Mapping trade opportunities in Central and South Asia: an exploration through trade indices and metrics

Purpose This study aims to explore the possibilities for regional (intra and inter) trade between Central Asia and South Asia (CASA) by examining several frameworks that impact the economic integration of these regions. Design/methodology/approach The study uses five indices, specifically the export diversification index, export survival rates, export sophistication, revealed comparative advantage and intra-industry trade index in South and Central Asia, from 2005 to 2021. Findings The findings show a twofold increase in the potential trade value between the two regions compared to the actual level. The intra-regional trade in Central Asia accounts for less than 5% of trade with all countries, whereas the intra-regional trade in South Asia accounts for 1.5%, and the inter-regional trade accounts for between 0.2 and 4% of total trade to all destinations. The intensity of trade measurements shows that inter-regional trade flows are modest because they make up a relatively small percentage of the entire trade volume, which includes all destinations, ranging from 0.2 to 4 %. Research limitations/implications These findings have a significant impact on the successful implementation of trading-related measures, initiatives and institutional mechanisms for encouraging improved trade between and within both regions. Practical implications Export diversification initiatives aim to provide favourable outcomes for all parties involved, focusing on expanding the range of goods and services exchanged. CASA countries with higher diversification have shown more favourable outcomes than those relying on a restricted range of products. The authors expect policies promoting a broader array of exports to boost market shares, while maintaining a narrow focus may hinder new export prospects. In addition, regional value chains and policy initiatives promoting trade and investment could lead to increased value additions to exports, technological transfers and job creation. Social implications The study emphasises the significance of trade-related policies, programmes and institutional mechanisms in promoting trade between CASA. It emphasises the need for policies that support investment and trade, adopt new requirements of the Agreement on Trade Facilitation and promote diversity and latency. Originality/value Based on economic analysis, the study offers practical insights and strategies for businesses in the CASA regions. It also provides analytical tools for academics and decision makers, as well as policy and programme recommendations for government agencies, development partners, researchers and individuals interested in trade dynamics in these regions.

Framing Layoffs: Media Coverage, Blame Attribution, and Trade-Related Policy Responses

Framing Layoffs: Media Coverage, Blame Attribution, and Trade-Related Policy Responses

India’s trade related policies during Atal Bihari Vajpayee government

The open policy of a large country influences the global economy and trade. In this context, India's foreign policy attracts countries to boost their trade relations. India's economy is now the fifth largest in the world, accounting for almost 3% of the global GDP. Many government leaders are responsible for strengthening the Indian economy at the global level. In this regard, Atal Bihari Vajpayee, as Prime Minister of India, has majorly boosted India's economic engagement with the international community through various policies and initiatives. This study aims to emphasise Atal Bihari Vajpayee's contributions to foreign trade and policy. In this paper, we have focused on the major contribution of the Vajpayee government to global community and countries' foreign trade relations and policy. This paper relies on secondary data sources. In the methods, we have used descriptive statistics, trend lines, and tables which are based on time series data. This study asserts that Atal Bihari Vajpayee's time as Prime Minister had a substantial impact on the development of India's international trade strategies, emphasizing liberalization, infrastructure development, bilateral relations, and export promotion in order to enhance India's integration into the global economy.

Scientific Mapping of Gravity Model of International Trade Literature: A Bibliometric Analysis

The Gravity Model is the galloper of applied international trade literature. This model allows us to estimate trade-impacts of various trade related policies. Thousands of research studies have applied gravity models in their research works. The purpose of this paper is to look at bibliometric analysis of worldwide publication output based on a gravity model of international trade, as covered by Scopus from 1987 to 2021. The study analyses annual productivity, most productive source titles, prolific countries, eminent institutions, linguistic analysis and productivity of authors and their contribution in the subject area. According to the findings, Estimation of trade variables and projections are the most popular areas of subject specification, while in terms of literature gaps, estimation of economic integration, Extensive and Intensive Margin, and Logistics Performance Index receive less attention. 2019 was the most productive year for research on gravity models in international trade. In terms of contemporary research output, the United States, Germany, Spain, and China are the most productive countries; while as per citation analysis the United States, Germany, and the United Kingdom are the top three countries. The most prolific journals for publishing works in the subject of the gravity model of international trade are Journal of International Economics, American Economic Review, and Review of Economics and Statistics. The study attempts to portray the existing literature more comprehensively by showing research collaborations and bibliographic coupling. The findings of this study can be useful to conduct further studies in the future.

The Clothes (Un)Make the Man: How the Textile Quota Phase-out Wears-out the Planet

The textile sector is one of the most environmentally harmful industries in the world. From 1974-2004, trade in textiles was subject to quota-based restrictions that effectively limited global apparel production. Since these quotas were phased out in the early 2000s, global clothing production has roughly doubled. Despite this, there is currently no literature – legal or otherwise – assessing the environmental impacts of such a major change in global trade policy. This paper shows how the textile quota phase-out has enabled the ‘fast fashion’ phenomenon, and exacerbated the environmental consequences that accompany it. In addition, it assesses the legal viability of reintroducing some form of textile quotas under current international trade law. Based on this analysis, it concludes that reforms in trade-related policy and jurisprudence are urgently needed and ultimately inevitable.

Economic Growth, FDI, Trade Openness, and Inequality: Standing of Asian Economies

The main objective of this study is to identify the effect of foreign direct investment (FDI) and trade openness (TO) on income inequality in 25 Asian economies using panel data from 1991 to 2018. The effects of FDI and trade openness on income inequality in the Asian region has been examined by using the Kuznets curve hypothesis on the growth–inequality relationship and employing a random effects model, generalized least squares, and system GMM estimations. This study found that the effect of FDI and trade openness on inequality is positive as they enhance income inequality in the Asian region. It also found that the growth–inequality relationship is non-linear with an inverted U-shape, which indicates that growth increases inequality in Asian economies to a certain level; after that, an additional increase in per capita GDP decreases the income inequality. This study exposed that FDI and trade openness have increased inequalities in the Asian region, making it difficult to achieve the Sustainable Development Goal (SDG) 10 within the stipulated timeframe. Asian economies should therefore review investment- and trade-related policies to reap the benefits and to ensure equitable income distribution.

Neoliberal Environmentalism, Climate Interventionism and the Trade-Climate Nexus

Trade has become an increasingly core part and defining feature of our globalising world economy, and so by default has become integrally linked to climate change and action. Trade has not only rapidly expanded over recent decades but also driven contemporary economic development and growth, especially in countries where carbon and other greenhouse gas (GHG) emissions have too risen sharply. Increasing attention has consequently been afforded to the nexus between trade and climate change. Trade is now a key front for climate action. For some time, neoliberal environmentalism has been viewed as the dominant discourse on climate policy and other aspects of environmental governance. However, it has been very rarely applied to, or its relevance tested against the trade-climate nexus specifically. The paper presents a study on this relationship based on new original empirical research and the investigation of the following hypotheses or research questions. To what extent has neoliberal environmentalism thus far dominated mainstream international and global discourses on trade-linked efforts on climate action? What have been the principal features of neoliberal environmentalism within these discourses? Do the results of the study’s empirical research suggest the need to include other relevant analytical approaches to develop a better comprehension of how trade-climate nexus issues are being addressed? In addressing the above the paper develops an analytical framework comprises modelled normative elements of neoliberal environmentalism as well as relevant concepts of state-market relations. This frames the discursive evaluation of the study’s research that is based on a multi-stage, in-depth text analysis of 37 key publications produced by global economic institutions (GEIs) on the trade-climate nexus from 2007 to 2022. Market-based instruments (MBIs) were found to be by far the strongest normative element in this text corpus. This subsequently provided scope for exploring whether different forms of ‘climate interventionism’ were evident in the trade-climate nexus, and thus more nuanced and alternative understandings of the subject. The paper’s main contribution to the literature on this subject is to open up ideas and debate concerning how important aspects of neoliberal environmentalism overlap with, and can be better understood in the context of state-market relations. Evidence from this study’s research suggests that in the trade-climate nexus discourse there exists considerable space for states and international institutions to adopt, promote and innovate different forms of climate interventionism through various trade policy and governance actions. It is further argued that MBI-based trade related policies can only take us so far in climate action efforts. More ardent forms of state and other institutional interventions, from the local to the global-international levels, are required to ultimately achieve increasingly urgent climate goals.

A Review of Trade Policies and Measures Relevant to Trade in Plastics and Plastic Pollution

This article presents a first scholarly review of the trade policies and measures applied to trade in plastics, including those relevant to plastic pollution. It reviews existing tariff policies applied to plastics (section 1) and non-tariff measures applied to plastics (section 2). Section 3 provides a synopsis of environment-related trade measures relevant to plastic pollution. Analysis of the current state of play provides important insights that can inform both the United Nations ongoing discussions on intergovernmental cooperation to address plastic pollution and the dialogue underway at the WTO to identify how trade related policies could support the Sustainable Development Goals. Plastic pollution, trade measures, plastic trade, WTO, environment and trade

An assessment of trade policies related to COVID-19

Amidst the COVID-19 crisis, international trade was particularly important to guarantee the supply of medical and other goods. This article analyses COVID-19 trade-related policies found in the World Trade Organization (WTO) system from February to October 2020. We used the Database of WTO members’ notifications on COVID-19, including information on 198 notifications. It allows us to observe the trend of notifications, countries and products most affected, types of measures, and the adherence to the WTO’s guidelines. Our findings show two waves of notifications. In the first wave, countries acted unilaterally with little regard to multilateral tools. However, in the second wave, characterized by the predominance of trade-facilitating measures, a trend towards multilateral actions is observed through the establishment of “declarations”. Personal protective equipment (PPE) and medical supplies were the most affected products, but agricultural and food products have also been heavily affected.

Discuss the Selection of Research Variables in Applying Gravity Model to Analyze Factors Affecting Specific Sector

Gravity model is an important tool for researchers interested in the impact of trade-related policies. It provides a relatively accurate result for testing and evaluating the trade-impact of various policies. In recent years, the application of the model in research has become a trend in many countries around the world, including Vietnam. Though it is considered an attractive platform for international trade researchers, its use is not without potential pitfalls. The most important thing for the application of this model is the choice of exactly which model to estimate (Sherpherd, 2019). This paper aims to systematize the development process, analyze the nature of the model, and focus on analyzing its applicability in the study of trade flows for a specific sector. Based on that, it gives some comments and evaluation on the selection of research variables in a number of recent studies which apply this model in analyzing factors affecting exports of a specific sector in Vietnam. Finally, it draws some conclusions and recommendations for the application of this model in research. Keywords: Gravity model, Structural gravity model, Theoretical foundation, Nature DOI: 10.7176/EJBM/13-10-05 Publication date: May 31 st 2021

The Competitiveness of Indonesian Cashew Nuts in The Global Market

Indonesia is one of the best quality cashew nut producers and exporters with a 1.2% share in the global market. This is very far from being compared to Vietnam as the world's main exporter of cashew nut controlling 34.07% of the global export market. This study aims to determine the competitive and comparative advantages of cashew nuts from Indonesia and Vietnam in the international market at 2009-2018. The various differences between the two countries make the products produced and distributed vary in quality and quantity. Competitive advantage is analyzed using Porter's diamond theory which consists of four factors to see the competitive advantage of an industry/country. Meanwhile, to determine the comparative advantage of cashew nut trading activities, the Revealed Comparative Advantage (RCA) and Trade Specialization Index (ISP) were calculated. Based on the results of the analysis, it can be seen that Indonesia has an advantage in producing cashew nuts, but has not been able to process it optimally, such as Vietnam which applies special technology and standards in producing cashew nuts. The RCA calculation shows that Vietnam's cashew nut exports have much greater competitiveness than Indonesia, and the ISP calculation results show that both exporters are still importing to maintain the economy and ensure the availability of industrial raw materials in the global market. Trade-related policies need to be considered in order to increase export profits and benefit domestic business actors

Applying the Human Rights Framework to Economic Policy: Insights from an Impact Assessment of Services Trade Liberalisation in Mauritius

This article sets out the methodology and findings of a Human Rights Impact Assessment (HRIA) of the Trade in Services Agreement (TiSA) for Mauritius. It presents analysis of possible impacts of services trade liberalisation and deregulation on the right to water, on labour rights and on labour migration. By examining impacts of trade-related policies through the lens of human rights law, this article brings to the fore how an HRIA can strengthen trade policy-making, and how it can provide African negotiators and other stakeholders with legal and conceptual arguments to strengthen their positions in economic negotiating contexts that are often highly complex. The article is a contribution to the literature in that it provides insights into the underexplored area of human rights impacts of liberalisation of trade in services, and in that it illustrates through specific examples how the human rights analytical framework can be applied to services trade negotiations in other fora, and to economic policy more broadly.

WTO Reform Priorities Post-Covid-19

Although the WTO has fulfilled several key tasks it was set up to do – providing periodic reviews of members’ trade policies, resolving disputes, supporting negotiations – with the notable exceptions of the Trade Facilitation and Information Technology agreements, WTO members have not been able to negotiate new rules on “bread and butter” trade policies. The importance of doing so was illustrated by the COVID-19 pandemic which saw widespread uncoordinated recourse to trade policy instruments. This paper highlights four reforms that would bolster the effectiveness of the WTO as a forum for trade cooperation: (1) improving collection and reporting of information on trade-related policies; (2) supporting analysis-informed deliberation to establish a common understanding of the need and scope for cooperation in specific policy areas; (3) putting in place a stronger multilateral governance framework for plurilateral cooperation between groups of WTO members; and (4) re-establishing an effective dispute settlement system.

Industrial policy and automotive development: a comparative study of Thailand and Czechia

ABSTRACT This paper investigates the effectiveness of industrial policy, and the role of state capacity to implement it, by making a comparison of automotive development in Thailand and Czechia, the largest vehicle producers in Southeast Asia and Central and Eastern Europe, respectively. The development of the industry in both countries primarily relied on foreign investment, despite Czechia’s long earlier history of domestic automotive development. The countries, however, have used very different types of industrial policy. Thailand introduced a series of vertical (sector-specific) industrial policies, pursuing a proactive industrial development strategy with state intervention, continuing even under the restrictions on trade-related policy measures imposed by the WTO since 2000. In contrast, Czechia has employed mostly horizontal (non-sector-specific) industrial policies with less state intervention, influenced by the restrictions of the European Union. Although both countries achieved considerable output and export growth, Thailand has a deeper and more locally owned supply chain. Thailand’s imaginative use of de facto local content requirements in connection with its product champion policy is instructive.

Exploring the Trade (Policy) Narratives in Economic Elite Discourse

Trade liberalization during the neo-liberal era since the 1980s has been on the political agenda of many countries. However, in recent years and especially in the course of rising populist movements, protectionist measures seem to be gaining importance again. Nationalist economic policies challenge the overly positive view on economic integration and the reduction of trade barriers established by standard economic theory. In contrast to politicians, for quite a long time the great majority of economists explicitly publicly supported trade liberalization policies. In this paper, we show how trade and trade related policies are addressed and framed in professional economic discourses. Thus, we follow a mixed-method-approach and combine quantitative textual analysis with critical discourse analysis to highlight dominant narratives and imaginaries present in these debates. By analyzing more than 400 trade-related research articles published in high-impact economic journals we highlight three core trade narratives which constitute the elite economists trade discourse: First, “free trade cheer-leading” describes a clear link between the alleged lopsidedness of economists in favoring free trade (policies) in the public and academic debate. Second, “Ignorance in a world full of nails” relates to particular methodological and conceptual leanings in the profession, which seem to deepen the dominance of an overall positive evaluation of trade. And third, “success breeds exporting breeds success” postulates a positive causal relation between a firm’s economic performance and its export orientation. We conclude that the narrow perspective in economic elite debates prevents a more comprehensive understanding of the multifaceted challenges related to international integration.

Oilseeds sector in India: A trade policy perspective

The government had been intervening in the oilseed sector from time to time in the form of production, price and trade related policies to improve edible oils availability in India. In this paper, we analyse the impact of trade policy measures adopted by the government to improve domestic oilseeds production. A simultaneous equation simulation model was applied to find out the impact of recent import duty hike on palm oil on production and consumption of edible oils in India. The tariff hike will benefit the oilseeds growers through increase in the price of edible oils. The net impact in the economy will be negative due to the higher reduction in consumer surplus that may outweigh the increase in producer surplus and government revenue. The duty hike may yield short term benefit but improvement in yield, proper procurement and strengthening of edible oils processing industries are the keys for long term strategy for revival of the sector.

Digital trade in Latin America: mapping issues and approaches

PurposeIn Latin America, digital trade is still a marginal issue in the internet policy and governance debate, as well as in the trade regime. However, there are signs that this is beginning to change. This paper aims to discuss why this is changing and how, against the backdrop of the internet governance field.Design/methodology/approachThe research has used a mixed methods approach based on interviews and participant observation in one regional process, as well as an extensive literature review and document analysis.FindingsThere is a current scenario for expanding the digital trade agenda in the regional commercial blocs with the aim of rapidly incorporating them to a process of digitization that will be challenging their economic foundations. The tangibility of the impact of the expanding digital economy is much more prevalent than other internet governance debates, and these initiatives seem to be adopting a pragmatic approach, rather than questioning the existing rules that govern the trade and the internet regimes. There are significant challenges emerging from a fragmented institutional background for trade-related policy in the region and the digital single market might be one of the solutions. Finally, domestic coordination among competing laws regarding data protection and their enforcement without conflicting with cross border data flows will be a challenge to be addressed.Originality/valueThere is a lack of evidence-based research on the subject in the region. Many of the accounts stem from normative perspectives (many from scholars with legal backgrounds). This paper explores the connections between the internet governance regime and the emerging digital trade based on existing policies and processes.

In Search of an Effective Trade Policy for the Film Industry: Lessons from Korea

This article explores which trade-related policies are effective – that is both economically and culturally sound – to promote the film industry that has recently been highlighted more due to its prominent political, economic and cultural dimensions. By examining the trade-related policies of nine major countries for their film industries over the last forty years, several important findings are extracted which contribute towards a more pragmatic debate on ‘trade and culture’. First, regulatory barriers such as import or screen quotas should be avoided at all costs since they do not protect the domestic film industry. Second, tax relief schemes are unreliable because they tend to offer excessive support to attract foreign film producers. Third, as a choice to be considered, subsidies should be kept reasonable in size and focus on consistent goals. Fourth, well-designed trade agreements can contribute greatly to enhance film policies. Finally, once combined, these results explain to a large extent the remarkable success of the Korean film industry over the last two decades, which can be a good bench marker for countries that want to enhance their film industry and to promote their culture.

Dwarfed Giant: Impact of Trade and Related Policies on SMEs in the Nigerian Textile Industry

This study examines the impact of trade-related policies on SMEs fabric manufacturers operating in the Nigerian textile industry. The Nigerian textile industry was the third largest in Africa and the second largest employer of labour after the government. However, from the 1990s, the industry started experiencing some challenges often linked to trade liberalisation policy under the World Trade Organisation (WTO). This placed SMEs textile fabric manufacturing firms under immense pressure to attain long-term sustainability as the productivity and competitiveness of the domestic industry were being threatened by foreign/external competitors from international markets. In identifying and addressing the issues posed by trade policies as part of achieving the research objective, a qualitative mode of inquiry with a case study approach was employed. Semi-structured In-depth interviews were conducted with the managers of three formally registered SMEs fabric manufacturing firms in Lagos State, Nigeria. The findings were interpreted using thematic analysis. The findings indicate that the challenges faced by SMEs in the Nigerian textile industry are linked to the lack of supportive and measurable policy and regulatory frameworks to accompany the implementation of liberal policy in the country. These findings point to the fact that in order to revive and boost the productivity and competitiveness of SMEs in the Nigerian textile industry, and to reap the full benefits of international trade policy on liberalised markets, the government has to engage in restructuring the business environment through the implementation of effective and stable macroeconomic, trade-related infrastructural and institutional policies.