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1 – 6 of 6In a supply-constrained region like Asia, promoting exports has always been a challenge particularly at a time when Asia’s trade has been severely affected by lack of external…
Abstract
In a supply-constrained region like Asia, promoting exports has always been a challenge particularly at a time when Asia’s trade has been severely affected by lack of external demand. This paper argues that price barriers have taken a new shape during the global financial crisis period which may generate differential impacts on trade flows as we proceed toward recovery. The size and shape of price barriers would be higher if NTBs, applied by the countries during the crisis period, were counted. One of the conclusions of this paper is that ‘price’ barrier is still more important than ‘non-price’ barrier in enhancing Asia’s trade and integration. The higher the price barrier between countries in a pair, the less they trade. In other words, a 10 percent increase in the ad-valorem price (transport and tariff) lowered trade by 6 percent. Tariff and transport costs, each considered separately, also influence the trade flow in the same direction, to more or less the same extent. There are indications of huge domestic infrastructure bottlenecks in countries in Asia. Based on direct and indirect evidence related to trade barriers, this paper concludes that complementary trade policies focusing on price and non-price barriers have immense importance in enhancing international trade and integration in the post-crisis period.
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Hag-Min Kim, Ping Li and Yea Rim Lee
This study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an…
Abstract
Purpose
This study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.
Design/methodology/approach
Various measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.
Findings
Deglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.
Research limitations/implications
This study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.
Originality/value
This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.
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Vietnam has been actively integrated into a multilateral trading system based on its accession to the WTO and the implementation of a series of ASEAN+1 FTAs. Now Vietnam is…
Abstract
Vietnam has been actively integrated into a multilateral trading system based on its accession to the WTO and the implementation of a series of ASEAN+1 FTAs. Now Vietnam is negotiating to be a member of the Trans-Pacific Partnership (TPP) agreement, which is a region-wide FTA in the Asia-Pacific region, and a total of 21 working groups have been negotiating 29 chapters of the TPP. This paper tries to assess major issues of Vietnam’s joining the TPP, and to draw policy implications such as initiatives for Vietnam’s acceleration of its renovation and economic restructuring programs; and domestic measures for facilitating FTA implementation by firms and enhancing the country's implementation capacity.
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Anthony Moni Olyanga, Isaac M.B. Shinyekwa, Muhammed Ngoma, Isaac Nabeta Nkote, Timothy Esemu and Moses Kamya
The purpose of this paper is to examine the influence of innovation indicators: Internet usage, patent rights, innovation in exporting countries and innovation in the importing…
Abstract
Purpose
The purpose of this paper is to examine the influence of innovation indicators: Internet usage, patent rights, innovation in exporting countries and innovation in the importing country on the export competitiveness of firms in the East African Community (EAC).
Design/methodology/approach
The study adopted the structural gravity model and the Poisson Pseudo Maximum Likelihood a nonlinear estimation method that was applied in STATA on balanced panel data from 2007 to 2018. Data were obtained from World Bank International Trade Center and World Bank development indicators.
Findings
Results show that innovation in the importing country, innovation in the exporting country and patent rights of exports are positive and significant predictors of export competitiveness in developing countries. While Internet usage is an insignificant predictor in the EAC.
Research limitations/implications
There is a need to examine the complicated nature of the EAC economy to further this study's findings.
Practical implications
Exporting countries need to take deeper reforms as regards structural transformation to enable firms to integrate into the Global Value Chains (GVCs) to enable them to increase their productivity by reviewing the existing policies to match the changes in the market.
Originality/value
This study explains the complex dynamic interactions of technological innovation indicators in the EAC using quantitative data and that this interaction has an effect on the export competitiveness in import-oriented countries with less harmonization in their trade policies.
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We study here the effects of FTA on demand, consumer surplus, dealer profit, and tariff revenue depending on the degree of substitution between two goods and import competition…
Abstract
We study here the effects of FTA on demand, consumer surplus, dealer profit, and tariff revenue depending on the degree of substitution between two goods and import competition structure in a two country’s static model. We consider monopolist dealer, and perfect competition in imports market. The base model is with a positive tariff and we compare the equilibrium with a zero tariff under FTA. The rankings in the consumer utility are such that it is i) the highest under perfect competition with FTA or without FTA, ii) second highest under monopoly with FTA, and iii) the lowest under monopoly without FTA.
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Anthony Moni Olyanga, Isaac M.B. Shinyekwa, Muhammed Ngoma, Isaac Nabeta Nkote, Timothy Esemu and Moses Kamya
The purpose of this paper is to examine the influence of export logistics components: shipment arrangements, timely delivery, customs quality, trade infrastructure, and tracking…
Abstract
Purpose
The purpose of this paper is to examine the influence of export logistics components: shipment arrangements, timely delivery, customs quality, trade infrastructure, and tracking and tracing on export competitiveness of firms in the East African Community (EAC).
Design/methodology/approach
The study adopted the Structural Gravity Model and the Poisson pseudo-maximum likelihood (PPML). PPML a nonlinear estimation method was applied in STATA on a balanced panel data for the period of 2007–2018. Data were obtained from World Bank International Trade Centre (ITC), World Bank Logistics Performance Index (LPI) and World Bank development indicators.
Findings
Results show that timely delivery and tracking and tracing of exports are positive and significant predictors of export competitiveness in EAC countries. Conversely, shipment arrangements, customs quality and trade infrastructure have no influence on export competitiveness.
Research limitations/implications
The results of this study show that export logistics components of shipment arrangements, customs quality and trade infrastructure do not matter at the present in improving export competitiveness in the EAC. There is a need to examine the intricate nature of the EAC economy to further this study's findings.
Practical implications
The EAC partner states should embrace deep integration by removing the behind the border trade barriers in addition to other trade restrictions, to create a common economic space among member states. This will further shrink the delivery time and the tracking and tracing of exports hence improving the competitiveness of EAC exports within the region and outside. Also, common and harmonized trade policies and regulations should be implemented through mutual recognition agreements where countries agree to recognize one another's conformity assessments.
Originality/value
This study explains the complex dynamic interactions of export logistics factors in the EAC using quantitative data and that this interaction has an effect on the export competitiveness in import-dominated countries with less harmonization in their trade policies.
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