UNCTAD Data Research Articles

Port performance indicators construction based on the AIS-generated trajectory segmentation and classification

AbstractWith coverage of worldwide shipping routes and straightforward accessibility, vessels’ navigational data from AIS have emerged as a potential leading source of knowledge for maritime stakeholders. However, transforming the raw AIS messages into meaningful indicators requires comprehensive work that involves enrichment with multiple relevant data sources. In this study, a fain-grained technique to process AIS tracks for the purpose of constructing port performance indicators is proposed. The technique involves trajectory segmentation to separate the stopping and underway segments of AIS-generated trajectories and trajectory classification to identify moored and at-anchor vessels from the stopping segments. With the fusion of relevant information, the method estimates the port boundary and identifies the associated berthing and anchorage locations to estimate turnaround time and construct port connectivity indicators. AIS datasets recorded over eight months covering the waters of Indonesia, Malaysia, and Singapore, known as one of the world’s busiest shipping routes, are selected to evaluate the proposed method. The trajectory segmentation demonstrated 98–99% accuracy, while the classification achieved 95–97%. The estimation of the vessel turnaround time closely matched the UNCTAD data with an error rate of 2.9%. These results prove the proposed approach’s practicality in contributing to the real-world scenario.

HORIZONTAL MARKET INTEGRATION OF RUBBER AMONG SOME SELECTED MAJOR EXPORTING DEVELOPING COUNTRIES IN THE WORLD

The research determined the horizontal market integration among the spatial major exporters of rubber viz. Ivory Coast, Indonesia, Philippines and Thailand in the world. Time series data from the FAO and UNCTAD data repositories that covered 51 years period (1966-2017) were utilized. The data were analyzed using descriptive and inferential statistics such as the unit root test, Johansen co-integration test and, restricted vector autoregressive (VAR) test. The empirical evidence showed presence of passive horizontal integration among the spatially separated markets. Compliance with the WTO policies makes the market prices of Ivory Coast to have effective linkages with the prices of all the selected markets; as trade war affected the price relationships between the latter markets viz. Indonesia, Philippines and Thailand; all situated in Asia. The market prices of Philippines and Thailand were not autarkic, thus the most efficient, as they are stable in the long-run and have the capacity to absolve any shocks that causes disequilibrium to its long-run equilibrium from any of the short-run. In addition, the market prices of Philippines and Thailand were more efficient as their prices were formed within the system while that of Ivory Coast and Indonesia depend on exogenous effect. The market prices of Thailand wield significant influence in price determination of rubber among the selected markets as the latter markets were relative follower in the international market. It was established that rubber marketing is useful in the international sphere as all the selected market prices witnessed persistent volatility. A high product quality will makes the market prices of Ivory Coast, Philippines and Thailand to be remunerative while poor quality coupled with sharp practices of oligopolistic middlemen will affect the market prices of Indonesia. Thus, the need for an effective marketing network that will enhance integration and efficient price communication among these markets is recommended.

DP 0264 - Trade and Competition: Mark-Ups, Concentration, and International Orientation – Discussion and Empirical Tests for Brazilian Manufacturing Sectors

This paper discusses the relation between trade and competition, revising the literature and using indicators, build with Brazilian industrial survey (PIA/IBGE) and foreign trade (Comtrade) data. The premise is that the structure of domestic competition is explained by concentration indices, such as CR4 and HHI, which show positive correlation with profit margins of the Brazilian manufacturing sector. Other indicators exert negative effects on the dependent variable – the mark-up –, prices in excess to costs (PCM), among of which stand out import penetration and the export orientation of sectors. In addition to these, investment propensity (entry) and the labor factor wield negative effects on the dependent variable. The exercise is based on a recent literature relating mark-ups, market concentration and globalization processes (investment, trade) in the world economy. Our purpose is to extend these discussions and findings to the Brazilian case. Empirical results show relevant statistical significance of explanatory variables in different estimation methods (OLS, Fixed and Random Panel, GMM). Though there are empirical regularities, some methodological limitations suggest the application of instrumental variables, build with UNCTAD data. The fundamental goal is to indicate possible methodologies and discussions for evaluating trade and competition policies in the context of the Brazilian economy.

The influence of leading Asian transnational corporations on the economies of countries in the world

Transnational corporations (TNCs) are now the leading players in international business. They contributed to the world economy transformation into international production, ensured the development of scientific and technological progress in all its areas: technical level and product quality; production efficiency; improving forms of management, enterprise management. They operate through their subsidiaries and branches in many countries around the world according to a single research and production and financial strategy. Issues related to the investigation of multinational corporations in the world are discussed in this paper. The essence of TNCs as a manifestation and driving force of transnationalization of the world economy is highlighted. The paper notes the impact of the covid-2019 pandemic on the world's leading TNCs. Based on the Fortune Global 500 rating and UNCTAD data, the activities of leading Asian multinationals (China, Japan, South Korea) are analyzed. The factors that contributed to the emergence and growth of Chinese companies on the world stage are identified. The sectors in which China's leading companies are concentrated and their influence is studied. The activities of the largest TNCs in China are considered: State Grid Corporation of China, Three Gorges, China National Petroleum Corporation, Ping An, Industrial and Commercial Bank of China, ICBC and others. The total cost of Chinese FDI operations in the EU is analyzed. It is found that FDI in Ukraine is relatively small, but Chinese contractors are actively involved in the technical modernization of the Ukrainian metallurgical sector. The contribution of Japan to the global economy is investigated and the leading Japanese car manufacturers in the world by market capitalization in 2021 is identified. The activity of one of the largest TNCs in Japan – Toyota is considered. The «Korean» type of multinational corporations (cheboli) and the largest South Korean corporations in 2021 are analyzed according to the main financial indicators. While examining the activities of Asia's leading TNCs, it can be argued that today they have become an integral parts of international economic relations, but there is another side to their activities. That is why the analysis of negative and positive impact of leading Asian TNCs on the world is conducted.

Nexus between Economic Phenomena and Growth Rate of Fishery Sector in Nigeria

Time series data that spanned from 1981-2019 sourced from CBN, FAO, and UNCTAD data banks were used to determine the growth of fishery sector in Nigeria. The obtained data was analyzed using the two-step methodology of Engel and Granger, Granger causality, and the impulse response function. The result showed evidence of co-integration between fishery GDP growth rate and the economic phenomena. Also, the GDP growth rate of the sector is efficient as it established a long-run equilibrium but the slow pace at which it corrects the distortion in its equilibrium makes the state of the efficiency to be a weak one. Furthermore, the fishery’s GDP growth rate is affected by high inflationary trend, red-tapism, and poor credit utilization. Empirical evidences showed that unexpected local shocks on the economic phenomenon will have a transitory effect on FGDP growth rate, thus will die-out over time. It was observed that the effect of the internal mechanism on the growth rate is passive while the external system effect is active on the growth rate. Therefore, the study recommends the need for policy strengthening by the concerned stakeholders viz: tiding of inflationary trend, red-tapism, and ineffective credit utilization, thus enhancing the growth of the sector.

U.S. in the global FDI’ flows: repatriation of foreign earning by U.S. from EU members as the new global trend

Scientific investigation covers the questions of U.S.’ involvedness into the international economic relations and into the international trade of goods and services and international movement of FDI as well. The fact that USA is the larger importer and the second exporter of goods in the world (2018), and the largest exporter and importer of commercial services (2018), the biggest host economy of FDI, and the largest investor (till 2017) the investigation of the American investment cooperation is the rather important affair, that can show the tough dependence of U.S.’ economy of foreign countries investments flows and regimes. In accordance with UNCTAD data U.S. is holding the first place as the exporter of FDI during the long period till 2018, that showed the negative number of FDI outflow in 2018 as the result of tax reform’ implementation at the end of 2017. Implementation of open and tough foreign trade policy (the policy of protectionism) through the import tariffs increasing is aimed at trade deficit reduction, protection and support of the American producers, implementation of tax reform at the end of 2017, making come true the soundbites of D. Trump “Make America Great Again” and “America first”. The author analyzed investment cooperation of U.S. and EU, its dynamic, specialization, directions. The author came to conclusion that correlation of United States’ investment indicators with European Union showed an unequal evaluation of each Union’ member and determined the disproportion of understanding and examination of regional integration not as the complex subject of the global economy but as the set of different and independent subjects. Investigation of U.S.’ FDI export and import statistics gave the author opportunity to come the conclusion that there is the specific of U.S.’ investment outflow into the European Union countries reflected through the limited set of investment recipients. At the same time, implementation of the tax reforms at the end of 2017 could lead to the changing of global investment flows from low tax jurisdictions to USA, for example.

INTERNATIONAL TRADE IN ICT SERVICES: THE CASE OF UKRAINE

Background. Today, the information and communications technology (ICT) sector is one of the most dynamic sectors of the world economy. Since IT services are the second largest export sector in Ukraine, the study of the impact of international trade in ICT services on economic growth becomes relevant. Analysis of recent research and publications. Numerous papers have shown the positive impact of international trade in ICT goods and services on production volumes, employment and productivity of national economies. In particular, UNCTAD data show that the ICT services sector shows an increase in employment and international trade in all geographical regions and provides most of the added value in the ICT sector. The aim of the article is to study the impact of international trade in ICT services on the development of economies of different levels of development, taking into account national policies of ICT sector, and to develop recommendations for Ukrainian policy of ICT sector, taking into account the experience of analyzed countries. Materials and methods. The information base for the study was data from UNCTAD, OECD, Eurostat, and the State Statistics Service of Ukraine. Methods of statistical, structural, regression, comparative analysis are used. Results. Regression analysis was used to identify the relationship between GDP and the volume of exports and imports of ICT services in the analyzed countries. The results showed that in order to ensure economic development through trade in ICT services, countries need to pursue a stimulating policy, which includes measures in three main areas: support for innovation (R&D funding and startup ecosystems); education and training of ICT specialists; and support for investments in ICT services (through preferential taxation and grant schemes). Conclusion. In order to support the growth of the national IT industry, the Ukrainian government is proposed to legalize existing schemes of cooperation of IT companies with private individuals, to avoid additional regulation of the industry, and to develop schemes to financially support innovation in science and business.

National economy investmentattr activeness: a bibliographican alysis

Introduction. The problem of country investment attractiveness, and approaches to its evaluation have been thoroughly debated over few last decades. Attracting of foreign direct investment (FDI) that is dedicated to creation of new jobs and added value in Ukraine, is relevant since independence declaration in 1991 and until now. It is believed, Ukrainian economy has unlimited investment potential, and reasonable high level of investment attractiveness, based on its geographical location and existing natural resources. Apparently, based on open access data, Ukraine has one of the worst in Europe FDI and GDP dynamic. Thus, the fundamental studies considering concept of “country investment potential” is highly relevant due to current macroeconomic condition in Ukraine. Within this work, authors researched recent studies of investment attractiveness evaluation around the world, and assumed their common principles.purpose of the research is to review most recent publications around the world on country investment potential evaluation topic.Results.The authors researched current relevant publications in journals which are indexed by international research databases. The analysis has shown that vast majority of current studies are connected to emerging market economies such as China and India. Among those papers, the most common approach to evaluate country’s investment attractiveness was usage of statistical methods. It allows considering a reasonably significant number of independent variables. Based on UNCTAD data [1], emerging economies show the best dynamic data related to GDP growth, and FDI inflows and outflows within last decade. According to abovementioned, the authors focused the research related to developing countries.Prospects. The Future researches could be long-term promising within the direction of country investment potential evaluation, taking into consideration socio-cultural determinants of specific countries in relevant statistical models.

TNCs of Japan and ASEAN: current development trends, cooperation and competitive potential in the 21st century

The article analyzes modern investment strategies in the global markets of transnational corporations in Japan and South-East Asia. The author, based on offi cial UNCTAD data, comes to the conclusion that the volumes of total and foreign assets of corporations of these countries diff er — Japanese TNCs have hundreds of billions of dollars, while South Asian TNCs have tens of billions of dollars. However, this does not directly aff ect the geographical scope of their corporations — in both cases, the transnationalization of entrepreneurship has not only a regional but also a global scope. However, the scope of activities of TNCs in Japan and Southeast Asia is somewhat diff erent-historically, Japanese TNCs are most successfully developing in the segments of automotive, household appliances and electronics, while modern TNCs from Southeast Asia occupy niches in the restaurant business, food and beverage production, construction and real estate. It is revealed that business in Singapore and Malaysia has reached the largest scale of transnationalization in Southeast Asia, i.e. the transnationalization of entrepreneurship is developing very unevenly in the subregion.

DIRECTIONS OF INNOVATIVE DEVELOPMENT OF TRANSPORT LOGISTICS IN UKRAINE

Topicality. Technological innovations of the fourth industrial revolution have had a significant impact on the development of logistics and the organization of logistics and transportation throughout the world. These processes were also facilitated by the globalization of international trade, the transnationalization of large companies, and the growth of volumes of commodities’ production, which involves the unrestricted movement of resources and goods between countries and continents, which can only be realized under the presence of a strong and developed transport and logistics infrastructure. The growing role of transport and logistics services is confirmed by the UNCTAD data, according to which 63 % of the World's volume of investment stock belongs to the services sector, 23.4 % of which - to the transport and logistics services.The geo-strategic position of Ukraine allows it being a convenient place for transit transportation of cargoes and passengers between the countries of Europe, Asia and the Middle East. Four Crete transport corridors pass through Ukraine. The transit transposition of Ukraine is an absolute advantage of the country, which makes national market attractive for foreign investors and producers.World trends show, that recently in the sphere of transport logistics, new cargo delivery technologies and innovative approaches to transport infrastructure have emerged. That is why the relevance of the choice of the paper topic is related to the study of the impact of innovative technologies of the fourth industrial revolution on the development of transport logistics. There is a large number of ambitious projects that will be analyzed in this study. This will allow us formulating suggestions on the implementation of the most promising projects of transport logistics to implement them in Ukraine. They will be aimed at increasing the competitiveness of both logistics enterprises and the country as a whole.Aim and tasks. The purpose of the article is to study the impact of innovative technologies on the development of transport logistics in Ukraine and to formulate suggestions on the implementation of the most promising projects into the transport and logistics infrastructure of Ukraine.
 Research results. The article reveals the main meta-trends in the development of logistics for the nearest future, namely: 3D printing, IoT, UAV, autonomous transport and underground cargo delivery. The analysis of the logistics market showed, that in Ukraine over the past 10 years the development of logistics has showed a predominantly negative dynamics : almost no water transport (only 1 % of total freight turnover); due to the state of roads and restrictions on the traffic of large-sized transport, only recently road haulage has begun to show a positive dynamics, while rail transport is still the main type of cargo transportation in Ukraine. The project of a logistics infrastructure for underground cargo delivery for the Odessa region and Ukraine as a whole is suggested. Within the framework of this project, a possibility, the potential cost and the profit from the implementation of the underground cargo network in Ukraine have been analyzed. According to the analysis, at the expense of the profit from this project, the payback period will be 7 years, and only one year after the project implementation the profit is expected to increase by 51 %.
 Conclusion. Ukraine has an extremely favorable geopolitical location; several international transport corridors pass through the country, but at the moment the degree of the use of transport infrastructure in Ukraine is rather low. In recent years, the country has been active in supporting initiatives related to the development of international transport corridors, defining their creation and development as a priority direction in the development of the transport complex of Ukraine. According to the analysis, the attraction of investments for the introduction of modern transportation technologies will lead to a significant increase in the profit from freight transportation and will allow Ukraine to take the leading position in the market of logistics services in Europe.

La competencia entre Estados Unidos y China por el liderazgo mundial: Un panorama desde las inversiones extranjeras

This article proposes an approach of investment relations on a global scale. Two premises of dispute for global economic leadership are discussed: the interpenetration relations between the United States and China, and regulatory framework for FDI in both countries. Based on UNCTAD data, FDI flow and stock are analyzed. Results find American and Chinese-based companies as main competitors for global economic leadership. The article concludes summarizing the most important cases of FDI regulation in both countries by trying to curb foreign companies’ participation in strategic industries.

Intra-industry trade in ICT services in BRIC Countries (2005-2017)

Information and communication technology (ICT) services, a key contributor to the growth and development of the counties, has also been an important item of international trade (both import and export) of emerging economies, particularly the BRIC counties. This paper examines the trends and patterns of exports, imports and intra-industry trade (IIT) in the ICT services in BRIC countries for the period 2005-2017, which has been an area unexplored in the international trade literature. Our analysis, based on the UNCTAD data, revealed that India has been the major contributor of the ICT services exports from the BRIC countries throughout the study period, which was distantly followed by China, while the share of Brazil and Russia has been relatively negligible. However, the growth in the ICT service exports during the study period was highest in China and it was lowest in India. At the same time, China was not only the leading importer of the ICT services among the BRIC counties throughout 2005 – 2017, but the growth rate in the ICT service exports of this country was highest among the BRIC countries. The computed IIT index values indicated the prevalence of intra-industry trade in ICT services, albeit with different intensity, in all the four BRIC countries. Among the BRIC countries, the degree of IIT in the ICT services was highest in Russia followed by China and lowest in India during our study period. The diversity in the nature and quality of the emerging ICT services originated from different countries will lead to further growth of intra-industry trade in the ICT services in BRIC counties and other countries in the future.

Ocena pozycji walut kluczowych międzynarodowego systemu walutowego w latach 1990 – 2016 i perspektywy zmian

Celem artykułu jest analiza i ocena pozycji walut kluczowych jako czynnika determinującego zmiany w funkcjonowaniu międzynarodowego systemu walutowego. Metodyka obejmuje badania teoretyczne (analityczne studia literatury naukowej i raportów badawczych) oraz badania empiryczne (analiza danych statystycznych BIS, IMF, SWIFT, EBC, UNCTAD). Przeprowadzona analiza pozwala na stwierdzenie, że główną walutą międzynarodową pozostaje dolar, a utworzenie obszaru wspólnej waluty w UE nie doprowadziło do oczekiwanych zmian pozycji głównych walut i uzyskania przez euro pozycji drugiej waluty globalnej, konkurującej skutecznie z dolarem w pełnieniu funkcji pieniądza światowego. Ponadto, rosnący od lat potencjał gospodarczy i handlowy Chin oraz transformacja układu sił gospodarczych nie znajduje odzwierciedlenia w zmianie pozycji walut krajów rozwijających się w pełnieniu funkcji pieniądza światowego. Prezentowane scenariusze transformacji MSW nie dają jednoznacznej odpowiedzi co do zmian znaczenia walut kluczowych, ale wprowadzenie jednej globalnej waluty wydaje się być zbyt trudne w obecnych warunkach.

Global crisis and activities of multinational enterprises in new EU member states

Purpose – The purpose of this paper is to examine the potential impact of the 2008 economic crisis on foreign direct investment (FDI), especially in the new member states of the European Union. Particular attention is paid to the activities of subsidiaries of multinational enterprises (MNE), which can follow different scenarios as a response to the crisis, including a reorganisation of their production systems, and a reduction or closure of activities.Design/methodology/approach – The analysis is grounded on various streams of literature, including international business studies and research on transition. Evidence is derived from UNCTAD data, interviews and desk research. The method of descriptive analysis has been followed, combined with theoretical insights, conceptual discussions and case study evidence.Findings – While the full magnitude and consequences of the crisis are yet to be extensively analysed, the authors' preliminary findings suggest that the response of MNE subsidiaries to the crisis hing...

Welfare state attitudes and economic integration in the European Union, 1992–2002: a multilevel investigation across 24 countries

This study continues earlier research efforts that investigated the impact of the European Union (EU) on welfare states by examining the relationship between the welfare state attitudes of citizens and the economic dimension of European integration. Two waves from the European and World Values Study (EVS/WVS) are combined with UNCTAD data about EU trade. Multilevel analysis of this dataset including 67,346 individuals from the EU member states shows that there is a curvilinear relationship (a reversed U) between welfare state attitudes and economic integration in the EU.

Assessment of globalisation: a revisit

A comprehensive conceptual definition of globalisation is offered: 'the process by which the world's economy is transformed from a set of national and regional markets into one that operates without regard to national boundaries whatsoever'. A model of globalisation is discussed. Using 1997 UNCTAD data and a criterion of a firm attaining 50% on any two of three variables (foreign/total sales; foreign/total assets and foreign/total employment) to qualify as a 'global' corporation, it is found that half of the world's largest MNCs are 'global'. The 2006 UNCTAD data shows that 61 of the top non-financial transnational corporations qualify as 'global'. Empirically, it is seen that globalisation is increasing.

Capability development and the geographic destination of outbound FDI by developing country firms

This paper uses UNCTAD data to relate the destination of FDI from developing countries to their capability development. It expands the Investment Development Path (IDP) and the flying geese model to include the destination of outward FDI. Investments from developing into developed countries are predominantly in low and medium research-intensive (often considered 'sunset') industries where investors have established strengths in their home base. Developing countries play an active role in knowledge-intensive services in especially the developing world. Even though the developing-country knowledge-intensive firms are not global leaders, their intra-regional FDI enables capability development in emerging industries.

Tariff Rate Quota Implementation and Administration by Developing Countries

Tariff rate quota administration and implementation are empirically evaluated for the fourteen developing countries notifying the WTO of the use of TRQs. FAO trade data, UNCTAD data on applied tariffs and the WTO notifications permit us to assess underfill of quotas, discrimination among exporters, use of state trading as an implementation mechanism, and the extent of protection under these TRQs. Substantial liberalization was found, generally due to use of low MFN tariffs rather than through TRQs permitting greater market access. High tariff bindings and endogenous quotas allow these countries to pursue flexible trade regimes within their WTO commitments.

Latin America as a target of trade barriers erected by the major developed countries in 1983

According to an UNCTAD data set, nontariff barriers were applied by 14 major industrialized importers against 19 percent of Latin American exports. This is not an unusually high coverage ratio – Australia and New Zealand, and Japan faced substantially more frequent barriers. The effects of these barriers on Latin American exports are difficult to estimate. The estimates vary substantially depending on the method of estimation. One method estimates that Latin American exports to this group of 14 importers have been reduced by trade barriers by a total of 34 percent, varying from 5 percent for Mexico to 75 percent for Argentina.

The Corporate Stranglehold on Commodities Markets

The term "producer," like its counterpart "consumer," becomes trivialized when abstracted from the corporate forces which control, impinge upon, and inflect the growth and trajectories of both. While Malaysia is a country in which cocoa is produced, in much the same way as the Philippines is a country in which bananas are produced, in reality the bulk of these two commodities are produced for and marketed globally by three to six transnational corporations (TNCs). This pattern of ownership and control by TNCs has become the New International Economic Order for almost all primary and manufactured commodities on the global market since the early 1960s, as UNCTAD data so clearly demonstrate.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.