Trade In Goods Research Articles

The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis

Background Trade openness shows a positive impact on economic growth, supported by economic theory, and export diversification and economic complexity show a positive dynamic in trade openness in the world; however, a specificity is generated in South American countries. Therefore, the objective of the research is to analyse the macroeconomic determinants of trade openness in Latin American countries. Methods The research approach was quantitative and explanatory using panel data methodology from the databases of the World Bank, Harvard University and the Economic Commission for Latin America and the Caribbean for the period 2000-2020. Results The fixed effects panel data model showed that the variables that had a negative impact on trade openness were GDP, the economic complexity index and the logistic performance index, while the variables that had a positive impact were exports of high-tech products (a proxy for innovation), exports, imports, research and development expenditure and interregional trade in goods. Conclusions Therefore, during the analysis period of 2000-2020 in South America, based on the panel data analysis under fixed effects, a total of 8 countries had a negative impact on trade openness, and only the economies of Chile, French Guiana, and Brazil had a positive impact on trade openness; these economies are characterized by their better performance in the economic complexity index, their higher percentage of budget for research and development expenses, and their trade policies oriented towards the industrialization of their value-added products.

Exchange-rate regime and sectorial profitability in a small open economy: evidence from Argentina’s recent experience

This paper studies, both theoretically and empirically, tradable ( T ) and non-tradable ( N ) profit rates dynamics in a small, price-taker peripheral economy under foreign exchange controls and parallel exchange rates (ER). Using a state-space econometric representation of the Argentine economy for the period 2016–2023, we found evidence to support three main hypotheses derived from the theoretical models. First, an official exchange rate depreciation increases tradable goods profit rates but has no short-term effect on non-tradeable goods profitability. Second, the rise of the parallel exchange rate increases sector N ’s profit rate but has no effect on T ’s. Moreover, this effect depends on the magnitude of the ER gap in a positive, but non-linear way. Third and finally, over sufficient time, both profit rates tend to influence each other, through the action of competition. This means that, eventually, and increase (depreciation) in the official exchange rate exerts its influence on sector N ’s profit rate; while, if sufficiently persistent and big enough, a rise in the financial ER ends up affecting sector T ’s profit rate too.

Peculiarities of the criminalization of smuggling of goods and its importance for filling the state budget

Smuggling of goods is a complex and multifaceted phenomenon that has a significant impact on the economic and social situation in the country. The illegal movement of goods across the border not only undermines economic stability, but also poses a threat to national security, contributing to the development of the shadow economy and corruption. In the conditions of globalization and the growing integration of international markets, the issue of combating smuggling becomes especially urgent, because this phenomenon is becoming more and more large-scale and difficult for state control. Criminalization of the smuggling of goods is a key mechanism for countering this negative phenomenon, which involves the establishment of stricter liability for violations of customs rules. It should be noted that the effectiveness of the criminalization of customs offenses depends on a number of factors, including the presence of effective legislation capable of adequately responding to new challenges, the effectiveness of law enforcement agencies, as well as the level of international cooperation in this area, etc. However, given the specifics of the Ukrainian economy and the country’s geopolitical location, the smuggling of goods remains a serious problem that requires a deeper analysis and an effective solution. One of the key aspects of the fight against the smuggling of goods, which became one of the main reasons for its criminalization, is its impact on filling the state budget. Illegal trade in goods deprives the state of significant financial revenues that could be directed to the development of social programs, infrastructure projects and ensuring economic growth. The loss of these resources weakens the country’s economic potential, undermines trust in state institutions, and contributes to growing social tensions. The article examines the impact of smuggling on the state’s economy, emphasizing the negative consequences for filling the state budget. Examples of significant economic losses incurred by the state due to smuggling are considered, as well as the role of customs authorities in combating this phenomenon is highlighted. A set of measures is proposed to reduce the level of smuggling, including changes to legislation, increasing the effectiveness of customs control and strengthening international cooperation.

Транстихоокеанское партнерство и всестороннее региональное экономическое партнерство как международно-правовая модель экономической интеграции в Азиатско-Тихоокеанском регионе

The article explores international law aspects of the contemporary integration processes in the Asia-Pacific with a specific focus on such relatively new formationsas the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Based on the WTO law provisions with regard to the free trade areas for goods and services, both Partnerships significantly widen the scope of regulated inter-governmental relationships, which allows considering the TPP and the RCEP as a fundamentally new form of the regional trade agreements. Having a fixed number of participating states and a system of institution with their functions and competencies, the Partnerships do not represent inter-governmental organizations and are vested with no legal capacity or, especially, supranational powers. However, this does not undermine the trade and economic significance of the Partnerships while also making them an attractive model of the soft integration structure between the states having different level of economic development, located in different geographical regions and bound with their own integration obligations under bi- and multilateral (subregional) trade agreements. The founding agreements of the Partnerships are typical “WTO plus” arrangements combining the provisions on liberalization of trade in goods and services with the parties’ mutual obligations in the fields of investments, sustainable development, competition, administrative and legal cooperation. At the same time, applicability of parallel bi- and multilateral trade agreements between the Asia-Pacific states, including those within ASEAN, forms a complex multilayer regulation of foreign trade and entails a risk of legal uncertainty for economic operators.

Innovation and application of inter-provincial carbon emission transfer accounting model in China’s domestic production network

The New Development Paradigm will result in the significant development of domestic production networks and the accelerated growth of carbon transfers among provinces in China. However, the existing value chain or the trade of intermediate goods decomposition method cannot completely account for the carbon content of intermediate goods. So the paper developed a accounting model for inter-regional intermediate goods trade based on input-output model. The most significant advantage of this accounting model is that by further decomposing final output into three components—final consumption within the region, final consumption flowing to other regions, and final output flowing to other regions as intermediate goods that are not returned to the region—it achieves a more comprehensive decomposition of the value chain in comparison to the established models. This approach allows for the tracking of longer value chains and the accounting for intermediate goods inflows and outflows simultaneously. Furthermore, the accounting of trade in intermediate goods can be conducted for any number of countries, regions, and sectors within the input-output system, thereby providing a foundation for the comprehensive accounting of inter-regional carbon transfers within production networks. With the input-output tables and carbon emission inventories from the CEADs (the China Carbon Emissions Accounting Database), the paper has calculated the changes of the carbon transfer among provinces in the China’s domestic production network from 2012 to 2017 and find that the inter-provincial intermediate goods trade and carbon transfer among provinces is increasing significantly. Each province has a strong incentive to overuse the carbon embodied in the intermediate goods from others, but lacks the motivation to reduce their own carbon emission. In the inter-provincial transfer of the carbon content of intermediate goods in China’s domestic production network, the difference between the average value of the ratio of the carbon content of intermediate goods from other provinces used by each province and that supplied for use by other provinces to the ratio of the carbon content of intermediate goods produced by itself increased by 13.6% between 2012 and 2017. Only a few provinces are evolving towards a win-win between economic and environmental benefits, while most are still facing the evolutionary dilemma in choosing between economic and environmental benefits. In the future, we should comprehensively explore the cooperative governance of carbon emission reduction in the domestic production network, including establishing a national standard for calculating the carbon transfer in domestic production network, improving the carbon emission responsibility sharing mechanism and carbon emission reduction compensation systems.

A Study of Virtual Water Trade among G20 Countries from a Value-Added Trade Perspective

Abstract: From a value-added trade perspective, this study utilizes the world input–output tables and the water footprint data of each industry in each country in the Eora database to explore the virtual water resources of 19 countries (the G20 countries excluding the European Union) in 2016. We calculated nine value chain decompositions and the pattern of virtual water flows and then explored the implied virtual water use due to the trade of intermediate goods and final goods, and we also analyzed the unequal trade of virtual water and added value among countries. The results indicate the following. Firstly, in most countries, the largest portion of virtual water is attributed to exports of intermediate inputs that are produced in the source country and fully utilized by the direct import countries, followed by the foreign value-added component of intermediate goods, while the smallest share of virtual water is returned to the country. Secondly, in value-added trade, excluding the rest of the world (ROW), China, France, Italy, Japan, Mexico, South Korea, South Africa, Saudi Arabia, and Germany are net importers in the virtual water trade between G20 countries, and the USA is the largest net exporter of virtual water. Thirdly, intermediate product trade is the dominant form of implied virtual water trade among countries, which leads to a net flow ratio of implied virtual water of about 80% to 90%. Lastly, the Virtual Water Inequality Index shows that thirteen country combinations, including Brazil and Argentina, exhibit significant inequality, and most countries are in a relatively equal state. In addition, the virtual water and added value of the relatively economically developed regions benefit more from the virtual water trade. Therefore, it is crucial for countries to reduce their consumption of virtual water when trading intermediate products to develop high-value-added and low-water-consumption industries and to choose appropriate virtual water trade targets.

Asymmetry and Imbalance in Trade between East and West in the 1980s

An analysis of the development of East-West trade in the 1980s and earlier allows us to draw a conclusion about the imbalance in the importance of mutual economic relations at that time. This imbalance was multi-faceted and manifested itself in, e.g., imbalance in the structure of trade in goods, payment asymmetry, as well as various motives of OECD and Comecon countries when making decisions on mutual exchange. The imbalance in the commodity structure of the East-West mutual trade reflected the fact that complementary goods were exchanged instead of, as was the case in countries characterized by a modern exchange structure, substitute products. The complementary nature of East-West trade meant that the exports of the socialist countries to the markets of the Western countries encompassed, to a large extent, different commodity groups than the imports of the Comecon countries from this area. While exports from socialist countries consisted mainly of goods with a relatively low degree of processing, the exports of capitalist countries to their Eastern partners encompassed mainly finished products with a significant degree of processing and the involvement of modern technological thought.

Issues Relating to the Identification and Customs Examination of Internationally Traded Goods in Uzbekistan

The process of organising customs control of foreign trade operations in the context of an ongoing global pandemic and the urgent need to provide food is an important one. Here, we analyse the methodology of non-tariff regulation of foreign economic activity and the interaction between the authorised bodies of Uzbekistan state administrations in this process. The role and place of customs examination in the process of certification of foreign trade goods is explored, including the participation of customs experts from the Central Customs Laboratory. This paper outlines the issues involved in the overall customs clearance process as it relates to the identification of controlled goods, and identifies areas for improvement.

Tax Challenges Arising from Digitalization: Evaluating the Taxation Models Proposed by the European Commission and the OECD

The world has entered a period of deep transition with rapid and phenomenal development of innovations. The rise of the digital economy has dramatically changed the global business environment, creating new challenges for the tax system. Newspapers and magazines are being replaced by the Internet, and trade in material goods – by digital services. The digital economy eliminates the barriers of time, space and distance. The server where the transaction is processed, the location from which the goods or services are supplied and the place of supply of such goods or services are in different jurisdictions, therefore, the question “Where should the transaction be taxed?” is raised. Meanwhile, the digital economy opens up unprecedented opportunities to avoid taxes with the international tax rules which are still “stuck” in 20th-century business concepts, because the companies operating in the digital space do not need factories, stores or other permanent residences to develop their activities. This article aims to evaluate the efforts of the European Union and international standard-setting entities to find a solution for fair taxation of the digital economy. The first part of the article delves into the concept of the digital economy and its essential features with a special emphasis on the role of the digital service user which is unique and more complex than the role usually played by the customer. This part also analyses the differences between digital and traditional business. The second part of the study emphasizes the reasons that will lead to the necessity of taxation of the digital economy, discusses the digital services tax applied in certain countries of the European Union and highlights the weakness of the concept of digital establishment in double taxation agreements concluded by the countries. The final part explores the proposals submitted by the European Commission regarding the introduction of a common consolidated corporate tax base and the inclusion of the concept of virtual permanent establishment in the tax system in the context of the digital economy taxation model proposed by international organizations.

The Influence of E-Commerce, Motivation, and The Use of Accounting Information Systems in Decision-Making For Entrepreneurship in Accounting Students

In today's digital era, anyone can make buying and selling transactions easily. Buying and selling trade goods can now be done from young to old. Due to the access to conduct all-round transactions in terms of supply of goods, promotion, and finance is also easy. This is because the latest information technology makes it easy to transact efficiently and effectively. An example of current information technology that is developing is e-commerce. Apart from e-commerce, accounting information skills can encourage individuals to develop their businesses. However, the situation in Indonesia is that young people who are entrepreneurs are low. Therefore, this study aims to see whether the variables that have been determined such as E-Commerce, Motivation, and Financial Information Systems can influence decisions in entrepreneurship. The population in this study were accounting students at the Faculty of Economics and Business, Universitas Medan Area. The data used in this study is primary data by distributing questionnaires to respondents using a purposive sampling technique. The analysis used is multiple linear regression analysis. The results of this study are expected to be able to analyze more deeply the students' interest in entrepreneurship. The results of the study will also be presented through tables, figures, and graphs.

Global value chain participation, globalisation-Energy Nexus and sustainable development in ASEAN

Achieving net zero carbon emissions necessitates a systemic reorganization of global value chains, particularly in the ASEAN region, due to its growing role as a manufacturing hub. This study explores the interaction between global value chains (GVCs), globalization and sustainable development in ASEAN countries from 2014 to 2022. Using data from sources like the World Development Indicators, Human Development Index, Eora Global Value Chain Database, and others, the study employs a system-generalized method of moments to address endogeneity. The findings reveal that GVC participation significantly impacts sustainable development, with a 1 % increase in GVC involvement leading to a 0.11 % rise in sustainable development. Additionally, globalization metrics such as trade openness and merchandise trade, excluding foreign direct investment, also positively influence sustainable development. When combined with GVCs, these factors further enhance sustainable outcomes. The study also highlights the positive impact of trading in low-carbon goods on sustainable development. Based on these findings, the study recommends policies that promote sustainable production practices within GVCs, sustainable urban planning, good governance, and investment in green infrastructure. Additionally, increased investment in renewable energy technologies and infrastructure is essential to ensure equitable access to clean energy. Governments should prioritize transitioning to low-carbon energy sources to mitigate the negative effects of greenhouse gas emissions.

JAMINAN INDUSTRI HALAL DI NEGARA SINGAPURA DAN TAIWAN

Purpose: This study examines and compares the halal assurance processes in Indonesia, Taiwan, and Singapore. In addition, this study aims to assess the consequences of each system on the growth of the halal sector on a global and regional scale. Design/Methodology/Approach: This research utilises a comparative case study methodology with a qualitative approach. Through the investigation of official documents, data was collected. Regulations, certification requirements, and industry reports from each country were analyzed in the documents. Manufacturers, customers, and representatives from halal certification authorities were interviewed. To gain a first-hand understanding of the certification process and the application of regulations, field observations were also conducted. Findings: The findings show that Singapore, Taiwan, and Indonesia have different strategies for implementing halal assurance. Majlis Ugama Islam Singapura (MUIS) in Singapore operates a rigorous and globally renowned certification program. Taiwan concentrates on food and cosmetic products through the Taiwan Halal Integrity Development Association (THIDA). With the support of the world's largest Muslim community, Indonesia, the Halal Product Guarantee Agency (BPJPH), has established a comprehensive and integrated system. These different strategies affect the efficacy of halal products and consumer confidence in each country. Research Implications: The results of this study show how harmonization of international halal certification and standards can improve consumer confidence and increase international trade in halal goods. In addition, by incorporating best practices from other countries, policymakers and industry players can improve their halal assurance systems with the help of this study. This harmonization can guarantee more reliable halal products to Muslim consumers around the world and improve the global halal market position.

Labour market impacts of the China shock: Why the tide of Globalisation did not lift all boats

The 1990s and 2000s saw a dramatic expansion in global goods trade. China rapidly emerged as the world's leading exporter while manufacturing employment in many high-income countries plummeted. Guided by textbook models that assumed frictionless labour markets and balanced trade, economists long maintained the view that trade had only modest labour market impacts and was not an important contributor to rising inequalities in high-income countries. We review recent evidence on the impacts of rapidly rising import competition from China on a broad range of outcomes in high-income countries. Import competition led to employment and wage losses that were heavily concentrated among the employees of exposed industries and individuals residing in local labour markets where such industries clustered, while consumer gains from lower goods prices were much more evenly distributed in the population. The disruptive effects of trade were particularly salient in countries such as the United States and the United Kingdom where a rapid growth of imports did not coincide with a commensurate expansion of own exports. Local labour markets facing greater import competition also experienced deteriorations in terms of health outcomes, crime, and family structures, and they became more likely to support far right politicians. We discuss several policy options to support the losers from globalisation.

Model of the “Economic Cross” of the Digital Platform: Opportunities and Conditions for Interindustry Technological Convergence

The platform economy is an objective stage in the evolution of the digital economy, whose development is carried out under the influence of the trend of involving a large number of SMEs and individuals in economic relations as their direct participants. Unlike the pre-digital era, when operational commercial direct interaction between small participants in economic relations turned out to be impossible, communication technologies of the second decade of the 21st century have created favorable opportunities for the development of independent businesses of individuals and small professional teams. The process of commercialization of household resources is actively taking place in the form of the development of private blogs as platforms for commercial advertising and mutual trade of goods and services by individuals online, which creates a direct competitive threat to traditional trading companies. The current stage in the development of online participation of SMEs and individuals in commercial relations is the development of outsourcing relationships, within which part of the processes implemented by large businesses independently using hired personnel and their own infrastructure will be delegated to independent network structures on a competitive basis. At the same time, in proportion to the growing popularity of e-commerce, public demands for the security of such transactions are increasing, which is especially important in conditions of sanctions uncertainty and high risks of supply chain collapse. This circumstance determines the business request for systematization of the digital space and its centralization, the terminal stage of which is an inter-industry digital platform. The purpose of the scientific article is to develop a system of proposals for the formation of a national intersectoral outsourcing platform based on the “economic cross” model. A system of innovative solutions has been developed regarding the organization of economic interaction between subjects, the procedure for financing the activities of the platform by its participants, and the distribution of indirect industry income arising from the functioning of the platform.

Virtually borderless? Cultural proximity and international collaboration of developers

Are national borders an impediment to online collaboration in the knowledge economy? Unlike in goods trade, knowledge workers can collaborate fully virtually, such that border effects might be eliminated. Here we study collaboration patterns of some 144,000 European developers on the largest online code repository platform, GitHub. To assess the presence of border effects we deploy a gravity model that explains developers’ inter-regional collaboration networks. We find a sizable border effect of −16.4%, which is, however, five to six times smaller than in trade. The border effect is entirely explained by cultural factors such as common language, shared interests, and historical ties. The international border effect in Europe is significantly larger than the state border effect in the US, where cross-border cultural differences are much less pronounced, further strengthening our conjecture that culture is a main driver of the border effect in virtual collaboration.

Rules of Origin: Legislation in Force and Current Trends in Applying Rules of Origin in Ukraine

Ukraine is a country with rapidly changing legislation governing economic activity, the trade of goods and services taking into account an active position of Ukraine regarding integration processes into the world economy. One of the issues in this sphere is the determination of the country of origin of goods.The issue related to the determination of the country of origin of goods is very significant in international trade. The country of origin of goods is determined for applying tariff and non-tariff measures to regulate the regime for the import of goods into the customs territory and export of goods from such territory, as well as to ensure the accounting of goods in foreign trade statistics.In this article, the author analyses the main rules in Ukraine for the determination of the country of origin of goods and Ukrainian current trends in the application of rules of origin in Ukraine.

ECONOMIC PARTNERSHIP UKRAINE–EU: RETROSPECT AND CHALLENGES OF FURTHER ENHANCED COOPERATION

Ukraine has been a priority partner of the EU since the signing of the Association Agreement in 2014. It was the significant financial and economic support of the EU as a whole and, in particular, of individual EU member states that became a key tool for avoiding catastrophic consequences in the financial and economic system of our country at the beginning of a full-scale war and for the current financing of the state budget deficit. Today, the European Union's support for Ukraine is extremely significant, although it is accompanied by a number of problematic issues that require an in-depth study of certain aspects of economic partnership in terms of finding ways and directions to improve the use of the potential of bilateral economic relations with the European Union as a whole and with individual EU member states.The methodological basis of the study is based on general scientific and special methods of economic theory, in particular, methods of theoretical generalization and comparative analysis for a comprehensive consideration of the research issue, and statistical methods of analysis. In the course of the study, the statistical materials of the European Union and the Ministry of Finance of Ukraine on foreign trade in goods were used.Modern scientific views on the content and prospects of Ukraine's economic partnership with the EU are studied. The key stages of the development of Ukraine's economic partnership with the European Union are summarized and schematized, with details of the areas of sectoral cooperation. The main indicators of trade relations and their role in the economies of the studied countries are analyzed. The key obstacles to further deepening of the economic partnership are substantiated, the elimination of which should be the primary goal of our country on the way to European integration.The obtained results can serve for further study of trade relations and their role in the economies of the studied countries.

Analysis of The Effect of Credit and Financial Technology on Economic Growth in ASEAN-5

Located at the center of a dynamic economic region, ASEAN-5 countries provide opportunities for each country to improve the socio-economic conditions of its people through developing infrastructure, communication networks, human mobility, and trade in goods and services. Through the provision of credit facilities, the banking sector participates in stimulating investment and economic development. Technological developments in the financial industry and financial technology also influence economic growth. This research measures banking credit service instruments such as third-party funds, investment credit, working capital credit, and financial technology as the level of success in measuring economic growth. This research is quantitative, the analysis technique in this research uses panel data regression to see the influence of the dependent variable on the independent variable. The finding shows that third-party funds, investment credit, and working capital credit significantly affect economic growth. Meanwhile, financial technology does not have a significant effect on economic growth.

Structural changes in the foreign sector and its consequences for the economy of Ukraine

The paper defines the essence and role of the external sector in the development of the national economy. It has been studied that the main endogenous and exogenous factors affecting the state and structure of the external sector of the national economy are globalization, technological progress, foreign economic policy and economic integration. The impact of the war on the development of the external sector of Ukraine's economy is substantiated. In particular, the main consequences of the impact of the war on the external sector of Ukraine's economy are the disruption of trade, the insecurity of investments, and the instability of the national currency. It was analyzed that during the period 2020-2022, the deficit of foreign trade in goods and services of Ukraine increased significantly, by more than two times. This negative trend was due to a significant reduction in the export of Ukrainian goods caused by military actions, which led to a decrease in production and complications with logistics. On the other hand, the import of goods to Ukraine decreased slightly. An important aspect is that the share of raw materials in the export structure is constantly growing. Only in the period of 2021-2022, the share of raw products in the export structure increased by as much as 13.3%, which is of a threatening nature in general for the national security of Ukraine. The structure of imports almost did not change, but the volume of imports also decreased, although significantly less than exports. Such a reduction in imports, especially in 2022, is dictated by the contraction of Ukraine's economy, primarily the level of consumption. Since at least 3 million people left Ukraine during the war, inflation and devaluation of the national currency increased, and the economy was partially transferred to military lines. It has been established that a chronic deficit in the balance of goods and services can lead to the accumulation of external imbalances and negatively affect the stability of the country's economy. The analysis of the external debt structure of the Ukrainian economy reveals both challenges and opportunities. While the high level of external debt poses risks to economic stability, it also highlights the need for prudent fiscal management, structural reforms and investment in key sectors. By solving these challenges and using its strengths, Ukraine will be able to manage the dynamics of external debt and build a sustainable and growing economy.

The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis

Background Trade openness shows a positive impact on economic growth, supported by economic theory, and export diversification and economic complexity show a positive dynamic in trade openness in the world; however, a specificity is generated in South American countries. Therefore, the objective of the research is to analyse the macroeconomic determinants of trade openness in Latin American countries. Methods The research approach was quantitative and explanatory using panel data methodology from the databases of the World Bank, Harvard University and the Economic Commission for Latin America and the Caribbean for the period 2000-2020. Results The fixed effects panel data model showed that the variables that had a negative impact on trade openness were GDP, the economic complexity index and the logistic performance index, while the variables that had a positive impact were exports of high-tech products (a proxy for innovation), exports, imports, research and development expenditure and interregional trade in goods. Conclusions Therefore, during the analysis period of 2000-2020 in South America, based on the panel data analysis under fixed effects, a total of 8 countries had a negative impact on trade openness, and only the economies of Chile, French Guiana, and Brazil had a positive impact on trade openness; these economies are characterized by their better performance in the economic complexity index, their higher percentage of budget for research and development expenses, and their trade policies oriented towards the industrialization of their value-added products.