Trade Area Research Articles

Dampak Perdagangan Bebas AFTA Terhadap Transformasi Ekonomi Indonesia

Free trade plays a crucial role in global economic development, especially in the era of globalization, and the ASEAN Free Trade Area (AFTA) aims to create a single market within the ASEAN region through the liberalization of trade in goods. This study examines the impact of AFTA on Indonesia's economic transformation, including increased export and import volumes as well as regional economic integration, highlighting benefits such as the growth of exports in manufacturing, agriculture, and consumer goods, alongside strengthening domestic industries. However, free trade poses risks, such as competition from imported products that could pressure local producers. Using a qualitative approach through literature studies, the findings show a significant increase in export and import volumes following AFTA implementation, although regional development disparities remain a challenge. This study emphasizes the need for strategies to improve product quality, enhance infrastructure, and build sectoral synergy to ensure inclusive economic integration and drive Indonesia's overall economic progress.

ОСНОВНІ ІСТОРИЧНІ ПЕРІОДИ ФОРМУВАННЯ ТА ЇХ ВПЛИВ НА СУЧАСНИЙ РОЗВИТОК ВІДКРИТИХ ПУБЛІЧНИХ ПРОСТОРІВ МІСТ

With the emergence of the first settlements, people needed areas that would serve as a place for social activities. The gradual growth of these settlements led to an increase in the importance of these areas, with specialized areas for cultural buildings or trade. Over time, the urban structure became more complex, but streets and squares always remained the main formative elements. Technological development made changes in the development of cities and contrasted new concepts with the traditions of the past, subordinating design activities to the needs of modern transportation, technical, environmental and economic feasibility. Over a long period of time, the open public space of cities and its understanding have been changing in the perception of architects, and indeed the people for whom these spaces are intended. The worldview, functions, and interrelationships of individual components of the architectural environment have been transformed, and the understanding of the goals of space has also changed, which means that we should strive for such spaces. The article reviews, summarizes and systematizes the main historical periods of formation and their impact on the modern development of open public spaces in cities. The common features and characteristic features of the formation of open public spaces in cities at each of the main historical stages are identified. The importance of taking into account the relationship between human social needs and physical space is shown. The relationship between the formation of public spaces in Ukrainian cities and the main historical stages is presented. The analysis of the main historical periods made it possible to trace the attitude of people to the open public space of cities at different times, as well as to identify common and distinctive features, constant features and elements. It was found that the need for open public spaces was present at all historical stages, but their functional content changed. It can be traced that European architecture, the only difference is that the development of urban planning in Ukraine, similar to the European periods, occurred with a certain delay.

Governance and information technology for female labour force participation in the African Continental Free Trade Area

The motivation of the present study is to complement the extant literature by assessing the relevance of governance and information technology in how African trade affects female labour force participation. The study focuses on 48 African countries using data for the period 1996–2021. An adopted empirical strategy is the fixed effects regressions that are designed to address concerns for simultaneity and the unobserved heterogeneity. The fractional probit model based on the pooled Bernoulli quasi-maximum likelihood method is also employed. The following main findings are established. First, governance moderates intra-African trade to engender positive synergies on female labour force participation. The positive synergies are apparent from the overall quality of institutions, government effectiveness and the rule of law. Second, information technology does not significantly moderate intra-African trade to affect female labour force participation. The established findings from fixed effects regressions are robust to fractional probit model estimations. The findings are relevant in informing policy makers on how governance can be used to moderate the influence of African trade in promoting female labour force participation. Policy implications are discussed.

Towards sustainable freight transportation in Africa: Complementarity of the fuzzy Delphi and best-worst Methods

The focus on sustainable freight transportation (SFT) is crucial for a sustainable future, especially with the African Continental Free Trade Area agreement. However, comprehensive research on the environmental, social, and economic aspects of SFT in Africa is limited. This study integrates the Fuzzy Delphi Method (FDM) and Best-Worst Method (BWM) to evaluate 17 determinants of SFT in Africa, revealing greenhouse gas emissions, noise emissions, and accident risk as the most significant challenges. The findings and recommendations will guide professionals and policymakers to implement proactive measures to address challenges in the freight transportation market for a more sustainable future.

Environmental policies and green technologies: Impacts on energy sustainability in the African continental free trade area

This research focuses on environmental pollution, a significant concern today due to energy use. Improving ecological sustainability suggests a framework for sustainable energy behaviours. This paper reviews the advances in environmental policies and green technology in designing efficient energy systems, but some gaps remain. The variables considered in this research are analyzed through Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models to determine their effects on energy structures and the environment in 31 of the 55 countries within the AFCFTA. Some main results show that one percentage point improvement in environmental legislation leads to decreased ecological footprints by 9.11 % (DOLS) and 20.98 % (FMOLS). On the other hand, a one percent increase in green innovations reduces ecological footprints by 0.6 % (DOLS) and 1 % (FMOLS). Also, service imports reduce sustainability by decreasing it by 2.98 % (DOLS) and 1.47 % (FMOLS), while service exports improve sustainability by increasing it by 1.59 % (DOLS) and 1. 09 % (FMOLS). Thus, these results underscore the need to maintain and strengthen environmental legislation and encourage green investments, as well as the importance of green innovation environmental policies and renewable energy to enhance environmental quality.

The Liberating Effects of Nigeria to African Continental Free Trade Area: Synoptic Perspectives

The purpose of this study was to investigate theoretically the relationship between transformational leadership (the “Magnetic Manager) and organizational success. The transformational leadership and social exchange theories are the underpinning theories for this paper. The literature on the concept of transformational leadership, its forms, and organizational success was thoroughly reviewed. The paper found that a transformational leader is a critical success factor that can bring out changes in employees and the organization as a whole. The study concludes that there is a significant relationship between transformational leadership and organizational success. The study recommended that organisations celebrate successes. Transformational leaders should recognise and celebrate the successes of their followers. This helps to build morale and motivation, which can lead to success. Keywords: Transformational Leadership; Organizational Success; Charisma; Inspirational Motivation

Trade circumvention in free trade areas

Do Regional Trade Agreements (RTAs) incentivize non-member countries to engage in trade circumvention through member countries, and how much does this behavior contribute to increased trade among RTA members? This paper provides empirical evidence on the prevalence of illicit transshipment through RTAs and quantifies its contribution to trade growth in a case study of NAFTA. Using global trade data and guided by a discrete choice model of shipment methods, we estimate the causal impact of tariff differentials created by RTAs on illicit transshipment, inferred from trade discrepancies. Our results show that circumvention increases more for products with larger preferential margins after the establishment of an RTA, with re-exports serving as a key channel. We also find substantial heterogeneity in these effects. In the case of NAFTA, we find that trade circumvention contributed to 16.4% of the increase in U.S. imports from Mexico in 2018, when the U.S. returned to protectionist policies.

The Urgency of Free Trade Agreements (FTA) and Digital Platforms for MSMEs in Realizing a Sustainable Digital Economy

Free Trade Areas (FTAs) offer significant opportunities for Micro, Small and Medium Enterprises (MSMEs) by providing access to international markets without tariff barriers. However, MSMEs often face challenges such as limited understanding of FTA regulations and difficulties in accessing global markets. This article discusses the need to develop a global digital marketplace platform specifically designed for MSMEs with FTA integration to address these challenges. The study uses a qualitative approach, analyzing relevant journals and articles to identify the needs of MSMEs and how digital platforms can support them in maximizing the benefits of FTAs. The discussion aims to provide solutions to market access limitations and information barriers, contributing to the growth and innovation of MSMEs towards a more inclusive and sustainable digital economy.

A Proposed Coupling Framework of Biological Invasions: Quantifying the Management Prioritization in Mealybugs Invasion

ABSTRACTPrioritizing potential invasive alien species, introduction pathways, and likely places susceptible to biological invasions is collectively critical for developing the targeting of management strategies at pre‐border, border, and post‐border. A framework for prioritizing the invasion management that considered all these elements in combination is lacking, particularly in the context of potential coinvasion scenarios of multispecies. Here, for the first time, we have constructed a coupling framework of biological invasions to evaluate and prioritize multiple invasion risks of 35 invasive alien mealybugs (IAMs) that posed a significant threat to the agri‐horticultural crops in China. We found that the imported tropical fruits from free trade areas of the Association of Southeast Asian Nations to entry ports of southern China were the primary introduction pathway for IAMs, vectored on various fruit commodities. There was also a high probability for cointroductions of potential multi‐IAMs with a single imported tropical fruit. The potential distribution of such IAMs with dissimilar net relatedness were mainly located in southern China. These distributions, however, are likely to expand to the higher latitudes of northern China under future climate and land use/land cover changes. Temperature and anthropogenic factors were both independently and collectively determining factors for the diversity and distribution patterns of imported IAMs under near‐current climate conditions. Our findings highlight that these multiple components of global change have and will continue to facilitate the introduction and establishment risks of IAMs in southern China, as well as the spread risk into northern China. Additionally, our findings, for the first time, demonstrated management prioritization across the continuous invasion stages of 35 IAMs in China, and provide additional insights into the development of targeting of their biosecurity and management decisions.

Learning to use trade agreements

Meeting Rules of Origin (ROOs) in order to obtain lower tariffs in a Preferential Trading Area (PTA) is costly both in terms of production costs and fixed documentation costs. Using a model-based approach that corrects for endogeneity and a unique exporter-importer matched transaction-level customs dataset from Latin American countries, we show that preference usage patterns suggest that these fixed costs fall with exporters’ experience in preference utilization, particularly that in the same product and with the same partner, indicating both the existence and channel of learning. Exploiting a natural experiment, we also show that newly covered products have much more learning as might be expected.

Macroeconomic Policy Implications of African Continental Free Trade Area (AfCFTA) for Nigeri

This research analysed the macroeconomic policy implications of the African Continental Free Trade Area (AfCFTA) for Nigeria from 2019 to 2023. A quantitative study methodology was utilised, employing regression analysis to examine the association between AfCFTA and essential macroeconomic variables. The study's findings indicated that AfCFTA significantly enhanced Nigeria’s GDP and trade balance, implying that greater trade liberalisation might foster economic growth and elevate Nigeria’s foreign trade performance. The study revealed no significant correlation between AfCFTA and inflation, suggesting that inflation in Nigeria is predominantly affected by local factors, including fiscal and monetary policy, rather than external trade agreements. The regression model successfully passed essential diagnostic tests for multicollinearity, heteroskedasticity, and autocorrelation, hence affirming the dependability of the results. The study concludes that Nigeria can benefit from AfCFTA through economic growth and trade expansion; however, the country must implement suitable macroeconomic policies to tackle current challenges, including infrastructure deficits and industry preparedness, to fully leverage the agreement's potential. The study advocated for the enhancement of trade facilitation infrastructure, the support of export-oriented industries, the promotion of public-private partnerships, the maintenance of fiscal discipline to control inflation, and the improvement of the overall business environment to ensure Nigeria's competitiveness in the AfCFTA market. These strategies will empower Nigeria to optimise the advantages of AfCFTA while alleviating potential risks and challenges linked to heightened trade liberalisation.

Regional Arbitration Centres for Investor Protection

African integration is progressively strengthening regional ties and offering new economic opportunities. However, increased integration also portends increased conflict in the nature of trade disputes and civil matters generally. This article critically analyses the extant conflict resolution mechanisms under the Africa Continental Free Trade Area (AfCFTA) Protocol, noting its strengths and weaknesses. This article identifies the lack of a private dispute resolution mechanism under the protocol, suggesting that the current institutions may fail to provide the requisite judicial security for settling trade disputes in the continent, and thereby erode gains made in integration. The state of regional arbitration institutions and their suitability as an antidote to the looming crisis is pitched as a solution. The author concludes by offering a continental framework for implementing uniformity and security through a network of regional arbitration institutions.

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.

DAMPAK PEMBANGUNAN INFRASTRUKTUR TERHADAP PENINGKATAN AKTIVITAS PEREKONOMIAN PASAR SENTRAL KABUPATEN SUPIORI

The Central Market of the Supiori Regency is one of the economic centres in the Supiori Regency.However, in its development, it did not turn out as expected. The market was abandoned by the traders whopreferred to sell along the streets of Sorendiweri City, the capital of Supiori Regency. This has caused the mainroad in Sorendiweri City, which is used as a trading area, to be filled with scattered trash. Vehicle drivers passingthrough the location become uncomfortable and disturbed because the vendors occupy half the road to sell theirgoods. This research has two objectives, namely, first, to identify and analyze the factors causing traders to preferselling on the main road within the city of Sorendiweri rather than at the Central Market, and second, to identifyand analyze the local government's policy strategies in building new infrastructure to improve accessibility to theCentral Market. This research uses qualitative descriptive analysis to analyze the data.

Digitalization and Cyber Security Policies in Uzbekıstan's Institutions and Sectors in One Belt One Road Project

The diffusion of information and communication technologies (ICT) into a rapidly growing area of global trade has contributed significantly to the gains made by companies and governments. Increasing consumption at the international level and the desire for faster and more reliable delivery of goods have led to the emergence of new sectors. In this context, states, other government agencies, and the private sector have sought to enhance their bilateral relations and investments and establish strategic partnerships to develop new fast, and reliable trade networks. While actions and activities in cyberspace and digital spaces have provided significant convenience and opportunities, they have also led to significant security concerns. The purpose of this study is to examine and evaluate the contribution of the One Belt, One Road (OBOR) initiative to the digitalization of Uzbekistan and the policies pursued by Uzbekistan in this regard, and to investigate the effects of public and private sector institutional cooperation in the One Belt, One Road project. The content analysis method was applied, one of the qualitative research methods. The study was also strengthened with the SWOT analysis method. By comparing relevant documents and sources on the subject, the aim of the study was concluded. The studies carried out to increase Uzbekistan's cyber capacity, the importance of maintaining strong cyber security policies through technology transfer, the challenges and legal regulations, institutional and sectoral cooperation, and their effects are the problem statements within the outline of the purpose of the study.

Assessing the evolution and perspectives of developing the russian export in current terms: adoption of the 4P model

The study’s relevance is caused due to the Russian export experiences, which acts as a research subject. Goal is to reveal current peculiarities of Russian export. As methodical tool the model of marketing mix was applied, which includes product, price, place, promotion. The analysis has shown: the Russian economy, to promote its export in new terms, uses marketing with new characteristics. The bigger are become the share in it of agricultural and metallurgical products, the share of developing countries among buyers. Promoting the export is provided including through the free trade zones of the Eurasian economic union with the third countries, common trade and cooperation areas with them. State support for import substitution assists to create the production able to export. Scientific contribution of the research results consists in that they expand application of micro-economic marketing mix model on export of national economy as a whole. The results received make possible to study in complex and simultaneously in detail the strengths and weaknesses of export, including the volume and structure of export, price dynamics, currency and financial, transport, trade and diplomatic peculiarities of sale.

Impact of the Belt and Road Initiative on the United States’ textiles and clothing imports from Asian countries: Evaluating the significance of Chinese aid and ACFTA

This study analyzes how Chinese aid and the ASEAN-China Free Trade Area (ACFTA) within the Belt and Road Initiative (BRI) impact Asian countries’ textiles and clothing (T&C) exports to the United States (US). The BRI is viewed as a hub-and-spoke network, with China as the central hub providing resources to the spoke countries along the Belt and Road region. These resources are intended to improve trade infrastructure and attract export-oriented foreign direct investment in the T&C sector. Utilizing an extended gravity model with a panel dataset, the study examines the effects of Chinese aid and ACFTA on the US T&C imports from 16 Asian economies between 2008 and 2019. The findings, obtained through the application of the feasible generalized least squares method, indicate a positive impact of Chinese aid and ACFTA on T&C exports. Policymakers are advised to leverage the BRI to stimulate T&C sector growth for export purposes, thereby creating more value for all stakeholders.

Profit Analysis Financial and Marketing Snubnose Pompano (Trachinotus blochii ) In Indonesia: A Review

The Star Pomfret (Trachinotus blochii ), also known as Snubnose Pompano is a key species with potential as a leading fishery commodity in Indonesia. However, challenges lie ahead, particularly with the advent of the ASEAN Free Trade Area (AFTA), which demands increased efficiency to compete against the influx of pomfret from neighboring countries. Currently, most pomfret cultivation method faces several challenges, including harsh weather that complicates transportation, damages cages, and leads to high transport costs. T. blochii can be cultivated in low-salinity ponds (19-12 ppt). Economic analysis of T. blochii, shows a Net Present Value (NPV) of Rp. 2,894,229 with a sensitivity level of 24% from the base value. The Net Benefit-Cost (B/C) Ratio is 1.03, with a sensitivity level of 1.27%. In general, if the Net B/C Ratio is greater than 1, the business is considered viable or profitable. The Internal Rate of Return (IRR) is 49%, with a sensitivity level of 23%, and the Payback Period is 2 years and 8 days. These results indicate that the business of cultivating pomfret in cages is viable, as all four investment criteria meet the requirements.

Legal Certainty for Providing Preferential Tariffs in the ASEAN-China Free Trade Area (ACFTA) Agreement Based on Operational Certification Procedures (OCP) in Tax Court Decisions

The ASEAN-China Free Trade Area (ACFTA) is an agreement made by the member countries of ASEAN and the People's Republic of China with the aim of promoting a stable and harmonious economy through the free flow of goods. ACFTA also supports the idea that barriers to international trade, both tariff and non-tariff, should be reduced or even eliminated, which is known as preferential tariffs. The countries involved in the ACFTA agreement agree that the Rules of Origin (ROO) provisions are necessary to obtain preferential tariffs. ROO establishes three criteria: Origin Criteria, Consignment Criteria, and Procedural Criteria. (Procedural Criteria). The Procedural Criteria are regulated in the Operational Certification Procedures (OCP) in Appendix 1 of Attachment A of Annex 1 ROO. The OCP contains regulations regarding the time for submitting a Certificate of Origin (SKA) in order to obtain a preferential rate. There are parties that think about the implementation of OCP ACFTA in Indonesia, that further regulations on OCP cannot be made without an agreement from both sides to do so. Research conducted using a normative legal approach with data collection methods through literature study, concluded that there are still differences in the application of Operational Certification Procedures (OCP) in the imposition of preferential rates by customs officers and Tax Court judges in the region in resolving disputes regarding preferential tariff. Therefore, adjustments are needed in the legal products regarding the implementation of preferential tariff imposition, as well as an enhancement of legal understanding and reasoning in the Tax Court to provide legal certainty, justice, and benefits for all stakeholders. Keywords: ACFTA, Preferntial Tariff, OCP.

Artificial Intelligence in Finance: Applications and Implications

The definition and uses of Artificial Intelligence, often abbreviated as AI, has come a long way since its inception. This technology is rapidly changing some business operations in the areas of trading, identification of frauds, and customer service in particular, the modern finance sector, and this article highlights the importance of technology in these processes. Significant Applications of Artificial Intelligence in Finance: From Algorithmic Trading to Robo-Advisors. Explaining, the paper analyzes the current trends and practices in the industries, addressing the positive and negative aspects of AI in the finance sector, with respect to the visions of the future. One that relates to the socio-technical implications that include the use of such technology in finance and the associated risks of data breach, availability, and loss of control and trust in processes.