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Since 1960s it has been realized that the bilateral trade at international level cannot be explained solely by the classical and neoclassical models of trade based on inter-industry trade. There is an existence of export and import within the same industry among the trading partners. Intra-industry trade (IIT) for products and product groups has been empirically observed by several studies. However, there is not much literature available on IIT in services. So also, from country perspective many studies are based on IIT for advanced countries. There is not much empirical evidence available for IIT among the emerging economies. The study aims to analyze the IIT in tourism services for five major emerging economies constituting BRICS – Brazil, Russia, India, China, and South Africa. The group constitutes 41% of world population with 24% of world GDP and 16% share in world trade. The study used both static and dynamic approaches to measure the IIT between India and other BRICS nations between 2018 and 2020. To empirically estimate the IIT, the study employs Grubel and Lloyd index and Brülhart index (MIIT). The study reveals that India had a very high level of intra-tourism trade with Brazil and South Africa. While with China and Russian Federation it was moderate. Results denote a correlation between the theory of international trade and tourism. There is two-way trade in BRICS tourism flows.

This paper aims to examine the impact of intra-industry trade on business cycle synchronization within the Economic Community of West African States (ECOWAS). ECOWAS region is characterized by limited intracommunity trade and a low level of foreign direct investment.

First, this research uses the two-digit level harmonized system classification to measure intra-industry trade, which is straightforward to interpret and compute, making it suitable for countries with low trade intensity. Second, it uses the system generalized method of moments (system-GMM) to examine the dynamic relationship between variables and address endogeneity concerns.

The results obtained from the system-GMM estimation reveal a positive and significant correlation between intra-industry trade intensity and business cycle synchronization, as well as an inhibiting effect of economic freedom on the relationship between intra-industry trade and business cycle synchronization. These results highlight the need to implement policies aimed at reducing tariff barriers, improving financial integration and intensifying production.

This research analyze the link between intra-industry trade and business cycle synchronization within the ECOWAS. It also analyze the role of economic freedom on the link between intra-industry trade and business cycle synchronization.

The concept of the “global production network” (GPN) has emerged as a framework for analyzing the intricate connections between a dominant or pivotal firm and its suppliers across various countries. ¹ The expansion of GPNs signifies that trade encompasses not only the final products but also the parts and components (P&C) involved in their production. The reduction of tariff barriers and advancements in transportation and communication technology have facilitated the fragmentation of production processes across different countries. This has led to a significant transformation in the nature and structure of global trade. This chapter aims to synthesize and present this literature. By identifying the key drivers, determinants, and consequences of fragmentation trade through a literature-based approach, this study aids in assessing the opportunities and challenges those lagging countries, like India, encounter in terms of increased participation in GPNs.

On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) officially came into force. It was implemented in six ASEAN countries and four non-ASEAN countries (China, Japan, New Zealand, and Australia) as the world's largest free trade agreement (FTA) and the first direct free trade area agreement between China and Japan, indicating that the agreement to develop China–Japan FTA relations has borne brand new results. It will be the first time China signs an FTA with the world's top 10 economies. In the context of global de-internationalization, unilateralism, and trade protectionism, as well as the adoption and implementation of various restrictions on international trade by some countries to strengthen their capacity to protect the market economy, the RCEP is an important activity for the major economies in the Asian region to actively seek change in the face of the crisis. Under the RCEP, China and Japan have reached agreements on bilateral trade in commodities, trade in services, and rules of origin, all of which will jointly promote trade between China and Japan. Analyzing the current trade situation between China and Japan, this chapter discusses the impact that the entry into force of the RCEP may have on bilateral trade between China and Japan. Moreover, this chapter provides suggestions for further developing Sino–Japan trade for reference.

The liberalization initiative commenced in India from 1991 onwards, replacing the four-decade long import substitution policy. The primary objective was to enhance the role of foreign and private investment, in line with the newly embraced outward-oriented growth model. The government had undertaken several policy initiatives since then, especially to strengthen the manufacturing sector which plays an important role in the economic development of any country. The current study evaluates the effects of the liberalization policy in India on industrial outcomes. Recent studies have found that when firm heterogeneity is present in trade models, reforms will lead to a decrease in the number of firms and a rise in their average size (Melitz, 2003). A dataset of 24 manufacturing industries had been used in the current study. We test empirically whether liberalization had led to a rise in the average size of establishments as stated in the literature. We also attempt to analyze the magnitude of trade costs in terms of the impact of reforms on wages and prices. The empirical analysis based on the difference-in-difference (DID) estimation method shows that on average, trade reforms do not lead to an increase in the real wages and average size of establishments. In addition, prices appear to increase in the long run due to liberalization, with potential ramifications.

This study aims to analyze the export competitiveness of Bangladesh's apparel industry by identifying the specific product categories that help sustain its export comparative advantage.

Compound annual growth rate (CAGR) and market share (MS) are calculated between 2011 and 2020 at the two- and four-digit level apparel product categories within the harmonized system (HS) to analyze the industry’s growth and export dominance. Trade competitiveness (TC) at the four-digit level, revealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) at the two-, four- and six-digit-level apparel product categories are computed for the same 10-year period to investigate the industry’s export competitiveness. Major export destinations of the top 5 exporting product categories are identified to understand the factors facilitating the industry’s growth. A non-parametric Spearman rank correlation analysis evaluated the association between the RCA and NRCA indices.

Among the 34 product categories at the four-digit level, 29 consistently demonstrated an export comparative advantage, as did 34 out of 217 six-digit level sub-categories. In contrast, 12 sub-categories at the six-digit level consistently exhibited a comparative disadvantage in Bangladesh's export competitiveness. Furthermore, the TC measure identified 28 categories at the four-digit level with a robust comparative advantage. 30 categories displayed a positive CAGR, and Bangladesh asserted significant market dominance over 26 product categories at the four-digit level.

This study's implications are significant for various stakeholders in Bangladesh and other apparel-exporting industries, encompassing government entities, industry officials, policymakers, investors, researchers and students. Nevertheless, limitations arise from the study's reliance on RCA and NRCA as competitiveness indicators, particularly its adoption of a macro-level approach for measurement without exploring a micro-level perspective. This constitutes a notable constraint in the study's analytical framework.

This study contributed novelty and enrichment to the existing academic literature by identifying distinct apparel product categories that contribute to the industry's growth.

Using different trade indices spanning 2018–2021, this chapter investigates Afghanistan's current patterns, prospects and barriers for intra- and inter-regional trade perspectives, emphasising the different pathways by which Afghanistan trades with Central Asian economies. The empirical findings demonstrate that the anticipated significance of trade between Afghanistan and Central Asia is double compared to the existing levels of trade. Furthermore, the analysis encompasses the categorisation of sectors based on the intensity of usage of production factors like resource, labour and technology. The analysis further elaborates on Afghanistan's trade potential with Central Asia and vice versa by highlighting the comparative advantage, diversification, complementarity and similarity in trade. The findings suggest that larger economies are rated higher than smaller ones as size and development level are essential factors in regional trade development. The most effective channels of regional trade development are price competitiveness measures, intra-industry trade and trade complementarities. These findings have a substantial influence on the development of different trade policy efforts to stimulate investment and trade within and among the two regions.

This conceptual paper aims to develop a theoretical framework for carbon trading in the built environment through theories to expand current knowledge on components of carbon trading systems.

This theoretical framework was developed and supported with existing theories and past empirical literature from built environment, economics and finance. Underlying theories used in the framework were selected due to their significance and applicability to carbon trading projects. Hypotheses set in the study summarise the propositions developed from the theories and past empirical literature.

The framework reveals four major components of carbon trading for the built environment. Six hypotheses were further proposed to unravel the resultant influence of their interactions on each component in the trading system.

This paper sought to undertake a theoretical review of classical theories and past studies on carbon trading. Even though a systematic review was undertaken, the constructs in the theoretical framework may not be exhaustive.

This study contributes and advances the body of knowledge on the components that comprise the mechanism of how carbon trading operates in the built environment. Theoretically, the framework developed serves as a multi-dimensional guide on the operations of carbon trading in the built environment.

The theoretical framework developed endeavours to consolidate multi-faceted theories from varying disciplines on the components that comprise carbon trading in the built environment.

This study investigates the trade potential of Afghanistan with the South Asian Association for Regional Cooperation (SAARC) and European Union (EU) by employing an augmented gravity model approach. The model used the latest Economic and Social Commission for Asia and the Pacific (ESCAP) dataset with the base year 2016, covering data from 2015 to 2021. The results of the study satiate that out of the chosen 15 countries of the EU, the magnitude of Afghanistan's trade potential is high with three EU countries (Germany, France and Spain), whereas in the case of SAARC, Afghanistan's trade potential is the highest with Pakistan, followed by India and Bangladesh. Results show that simple average tariff imposition and partner countries' GDP positively impact Afghanistan's trade value.

In contrast, simple average tariff imposition bilaterally harms the trade volume of the reporting country. Statistically, a 1% tariff rate change decreases Afghanistan's total trade by 0.3%. Moreover, a 1% increase in the GDP of the partner countries will increase Afghanistan's total trade by 0.5%. Furthermore, common language, landlocked and distance significantly impact Afghanistan's total trade. The results suggest that Afghanistan needs to explore the ways and means to improve its trade relations with the countries further and improve its market share. The study proposed that Afghanistan should use trade as an economic development tool to flourish in the region and capture the markets to realise its maximum trade potential. This research recommends that South Asian and EU countries revise the tariff rates and other non-tariff barriers to boost trade and connectivity for a better trade future.