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Book part
Publication date: 9 March 2021

Asim K. Karmakar and Sebak K. Jana

Trade war among the nations dates back mainly to the nineteenth century. Some of the trade wars may be cited as (i) The First and Second Opium War Empire between 1839 and…

Abstract

Trade war among the nations dates back mainly to the nineteenth century. Some of the trade wars may be cited as (i) The First and Second Opium War Empire between 1839 and 1842; (ii) The Smoot-Hawley Tariff Act, 1930 signed by US President Herbert Hoover; (iii) Chicken wars in the early 1960s; (iv) The US–Japan automobile trade war in the 1980s; (v) 1985 Pasta War between America under the Regan Administration of United States and Europe; (vi) The Banana wars. However, trade becomes more intense in the present century with the increase of the economic trade instruments. Under the Obama Administration, currency war and tariff war both became strong between the United States and China with intense effect over the globe. After the Obama regime, came Donald John Trump with a number of controversial (aggressive) trade protectionism plans saying thereby “China’s accession to the World Trade Organization has enabled the greatest jobs theft in history” and “Trillions of our dollars and millions of our jobs flowed overseas as a result.” Even during the COVID-19 period in the 2020s, threats and counter-threats have been on the ascend. It is in this backdrop the present chapter mainly traces the history of trade wars in the twenty-first century, touching upon the nineteenth and twentieth century trade battles.

Book part
Publication date: 30 March 2022

Irina N. Belova, Elena A. Egorycheva and Filipp D. Belov

The chapter deals with China-Pakistan economic relations under China-Pakistan economic corridor (CPEC), which is considered to be a flagship corridor under the Chinese…

Abstract

The chapter deals with China-Pakistan economic relations under China-Pakistan economic corridor (CPEC), which is considered to be a flagship corridor under the Chinese ‘The Belt and Road Initiative’ (BRI), also known as ‘One Belt One Road’ or ‘New Silk Road’. COVID-19 pandemic has dramatically changed the composition of the world economy. Now BRI has become even more important for China's economic strategy to sustain its long-term growth. The authors investigate CPEC to be Beijing's most ambitious project so far and mark, that despite possible concerns and challenges, CPEC will succeed. The authors identify the advantages and benefits that both Pakistan and China will gain. Further promoting of ‘westward’ strategy, which facilitates the economic and social development of Western China, boost in the export of capital, technology, production capacity is considered to give a new impulse of Chinese economic development. Rise in industrial potential, stimulating socio-economic development, improvement of population well-being, as well as maintenance of internal stability are among Pakistan's benefits from CPEC.

The chapter identifies the short- and long-term effects of the COVID-19 on implementing CPEC, as well.

Details

Current Problems of the World Economy and International Trade
Type: Book
ISBN: 978-1-80262-090-0

Keywords

Book part
Publication date: 9 March 2021

Rajib Bhattacharyya

Of late, the issue which has attracted the highest attention in the global scenario is the US–China trade relation, in particular the tariff war. The biggest nations in…

Abstract

Of late, the issue which has attracted the highest attention in the global scenario is the US–China trade relation, in particular the tariff war. The biggest nations in the world are in war with each other in matters related to trade since 2018. In the first quarter, the United States imposed a tariff which affected many countries like Canada, the EU, Mexico, the Russian Federation, Turkey, and, in developing Asia, India and the People’s Republic of China. This has resulted in a significant dampening of global output growth and growth in emerging nations of Asia. The present chapter seeks to investigate into the historical evidences of trade wars between the United States and China, major reasons responsible for this conflict and tries to figure out the impact of this conflict on fundamental macro variables using secondary time-series data primarily on selected Asian economies including India. The author uses the multiple regression technique to find to what extent changes in the independent variables are responsible in explaining the changes in the dependent variable for both China and the United States. The empirical results clearly show that in the case of China and the United States, an increase in weighted tariff rates (WTR) will lead to a significant decrease in the trade GDP ratio (TGR), whereas in the case of both these countries, Purchasing Power Parity GNI (PPPGNI) is positively and significantly associated in determining TGR. In the case of India, a decrease in WTR is expected to lead to a rise in TGR and it is significant. In case of Vietnam, PPPGNI is significant, but not WTR. In the case of Singapore, neither of the two independent variables is significant.

Book part
Publication date: 9 March 2021

Asim K. Karmakar and Sovik Mukherjee

Of late, the ongoing trade war between the two most powerful economies of the world – United States and China – has placed both the countries on a horrid front, breaking…

Abstract

Of late, the ongoing trade war between the two most powerful economies of the world – United States and China – has placed both the countries on a horrid front, breaking the world’s most important bilateral relationship of the twenty-first century. Their failure to reach a concrete agreement on mutual benefit on matters related to growing hefty amount of China’s current account surplus of balance of payments (BoP) and endangering United States to create jobs on its side, China’s use of illegal and unfair methods to acquire rights on intellectual property and US technology at an effectively discounted price; and also the concern that China by hook or by crook seeks to weaken the US economy has made matters worse. It is in this context the chapter analyzes the trade tensions between them and the context under which it came to the fore and with what outcomes. The analysis recommends interventions of the global leaders to mitigate the issues for the betterment of the world economy.

Details

Global Tariff War: Economic, Political and Social Implications
Type: Book
ISBN: 978-1-80071-314-7

Keywords

Open Access
Article
Publication date: 9 October 2020

Dao Dinh Nguyen

The paper aims to estimate the factors affecting Vietnam's export in rice and coffee, the two most important agricultural products, especially in exploring the role of…

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Abstract

Purpose

The paper aims to estimate the factors affecting Vietnam's export in rice and coffee, the two most important agricultural products, especially in exploring the role of “behind-the-border” constraints.

Design/methodology/approach

The paper applies the stochastic frontier gravity model, which models the aggregate effect of “behind-the-border” factors for Vietnam's export in rice and coffee.

Findings

The paper finds that the impact of “behind-the-border” constraints is statistically significant, suggesting that Vietnam's exports in rice and coffee may be prevented from reaching their export potential by such factors. Moreover, technical efficiency and potential export suggest that Vietnam has a lot of potential to increase its exports in rice and coffee with its major trading partners. The Association of Southeast Asian Nations group continues to be the major market of Vietnamese rice and coffee. Vietnam can also take advantage of the opportunity to export these commodities to the European Union (EU) (not including the UK), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership, especially in coffee to the EU.

Research limitations/implications

The study cannot identify specific “behind-the-border” factors due to the limitation of data availability.

Originality/value

Many existing studies suggest that export in agricultural products of Vietnam, especially in rice, is significantly affected by natural factors and “explicit beyond-the-border” constraints. They ignore the impact of “behind-the-border” constraints in Vietnam and its trading partners. My study proved the significant impact of such constraints. Therefore, Vietnam needs more policies to remove the “behind-the-border” constraints to promote export in rice and coffee.

Details

Journal of Asian Business and Economic Studies, vol. 29 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 22 July 2020

Alfredo A. Romero and Jeffrey A. Edwards

Injections of foreign direct investment (FDI) are often followed by injections of foreign culture which may not be well received among the local population. If this is the…

Abstract

Purpose

Injections of foreign direct investment (FDI) are often followed by injections of foreign culture which may not be well received among the local population. If this is the case, culture may impede any positive externalities from FDI. On the other hand, if the people of the host country embrace injections of FDI, this may lead to boosts in not only short-run factors of production but also longer-term technological spillovers. We measure what role cultural make-up of a country plays on the effect of FDI on growth in GDP.

Design/methodology/approach

Using values system data from the World Values Survey (WVS), and socioeconomic data from the World Bank, we estimate and plot the marginal effect of FDI on growth as a function of a country's values system for a panel of 73 countries over a span of three decades.

Findings

We find that the marginal effect of FDI on growth in GDP differs across varying degrees of cultural values, even after adjusting for level of development. In other words, our analysis indicates that a country's cultural norms do indeed affect foreign investment's impact on economic growth.

Originality/value

To date there is no research that systematically assesses the effect that cultural make-up has on the marginal effect of FDI on growth. We go beyond the use of isolated cultural variables by using data on cultural dimensions that account for most of the observed cultural differences between countries. We believe our findings will work as a launchpad for more novel ways to capture country heterogeneity in growth research.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2019-0549.

Details

International Journal of Social Economics, vol. 47 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 July 2015

Alamedin Bannaga

The paper aims to investigate the relationship between trade liberalization and technology absorption in a less developing country context. The objective is to empirically…

Abstract

Purpose

The paper aims to investigate the relationship between trade liberalization and technology absorption in a less developing country context. The objective is to empirically test the relationship between these two variables. This analysis was conducted in Sub-Saharan African economies.

Design/methodology/approach

A panel regression of 20 countries in Sub-Saharan Africa was estimated based on a model that takes into account both trade policy and non-policy factors affecting technology absorption.

Findings

A positive and significant relationship was found between trade liberalization and technology absorption. This relationship is valid across a variety of model specifications, technology absorption proxies and estimation techniques. Moreover, non-policy factors such as geographical spillover play significant role in technology absorption.

Originality/value

The paper examines the link between the trade liberalization and the technology absorption in Sub-Saharan Africa. The analysis is empirical in nature and builds on panel estimations. The novelty of the paper comes from the topic investigated and the focus on a region which has not attracted much attention in the literature.

Details

International Journal of Development Issues, vol. 14 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 8 October 2018

Muhammad Ali Nasir and Jamie Morgan

The purpose of this paper is to explore the period of uncertainty created by the referendum. The focus is the UK real effective exchange rate (REER). The authors set out…

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Abstract

Purpose

The purpose of this paper is to explore the period of uncertainty created by the referendum. The focus is the UK real effective exchange rate (REER). The authors set out to measure the additional impact of the uncertainty surrounding the referendum. The authors distinguish this from the longer trend value of Sterling.

Design/methodology/approach

The study applies a reduced form exchange rate model, first introduced by Edwards (1994), and makes use of Bank of England daily data for the period November 2015–July 2016.

Findings

The results indicate a sharp depreciation of Sterling with reference to its long-term trend. The authors set out some of the possible context which may account for fluctuations during the referendum campaigning period. This can be distinguished from other longer-term factors likely to be previously responsible for trend depreciation, and also from the further sharp depreciation effects triggered by the referendum outcome. The principal finding is that during the week of the referendum, up to the declaration of the result, exchange rate depreciation deviated from the long-run trend by approximately 3.5 per cent, but the actual immediate effect on the exchange rate was an 8 per cent depreciation. Over the period from the announcement of the referendum, the exchange rate fluctuated markedly around its trend and one can also identify a larger effect based on the “wrong-footing” of markets at the point when the outcome was announced.

Research limitations/implications

The research has important implications, as one might further infer that this marks a step change in attitudes to Sterling as Brexit became a real issue rather than a notional concern. One can thus consider the exchange rate as both symptom of and indicator for determinations of the underlying economic strength or weakness of the economy. In essence, it has acted as a litmus test.

Practical implications

The research has important practical implications in understanding the dynamics of the exchange rate market and the role of uncertainty in its dynamics.

Social implications

The study has important social implications as the changes to exchange rates are a perennial cause for concern. Exchange rates sit as one among many problems for the contemporary UK economy. Brexit has resulted in a significant subsequent depreciation of Sterling. Inter alia, though the immediate effect of Brexit on growth was muted due to unexpected sustained consumer spending, throughout the latter half of 2016 and the first two quarters of 2017, business investment slowed, the rate of deficit reduction slowed (but without any concomitant meaningfully rise in government investment in infrastructure, etc.) and both main measures of inflation began to rise.

Originality/value

The study contributes to the existing body of knowledge by exploring the period of uncertainty created by the referendum and its implications for the UK REER. The study differentiates and reflects on the weakness of Sterling due to the weak external position of UK’s economy and the further role played by the uncertainty surrounding Brexit. In this sense, it important contribution to theory as well as practice.

Details

Journal of Economic Studies, vol. 45 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 6 November 2018

Zhijie Guan, Yan Xu, Hong Jiang and Guogang Jiang

The purpose of this paper is to analyze raw materials, labor, capital, demand, related industries, strategies and policies influencing international competitiveness of…

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Abstract

Purpose

The purpose of this paper is to analyze raw materials, labor, capital, demand, related industries, strategies and policies influencing international competitiveness of Chinese textile and clothing industry.

Design/methodology/approach

The analysis is conducted using “Diamond Model”, in which raw materials, labor, capital, demand, related industries, strategies and policies are included as explanatory variables, and the impacts of international competitiveness on market share (MS), trade competitiveness(TC) and revealed comparative advantage(RCA) are examined based on the estimated coefficients of these variables.

Findings

These factors have different effects on TC, MS and RCA. While their effects on TC and MS are similar in sign even though their degree of significance differs, their effects on RCA are opposite to TC and MS except for capital. Raw materials and capital have negative effects on TC and MS, while the other factors have positive ones. Raw materials have positive effects on RCA, but all other factors have negative ones.

Practical/implications

The results from this study imply that it is necessary to increase investment in fixed assets of Chinese textile and clothing industry, speed up the pace of upgrading equipment, improve the level of industrialization, while strengthening the supply of textile raw materials, and lowering raw material prices, thereby reducing the cost of textile and clothing enterprises.

Originality/value

To the best of the authors’ knowledge, this is the first empirical research made using econometric model about the impact of the main factors of trade competitiveness in Chinese textile and clothing industry based on the “Diamond Model”.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 12 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 21 November 2016

Gülferah Çorapçıoğlu

The purpose of this paper is to ensure the preservation and sustainability of traditional water mills in Turkey with their original function and to allow these water mills…

Abstract

Purpose

The purpose of this paper is to ensure the preservation and sustainability of traditional water mills in Turkey with their original function and to allow these water mills to become heritage for future generations.

Design/methodology/approach

The study is the original examination of one sample water mill to be conserved, that is chosen from 11 water mills that were determined after the investigation of water mills in of Antalya, in Mediterranean Region. A preliminary study was first performed using the external observation method on 11 horizontal wheel water mills. The water mills to be accorded the highest priority with regards to conservation were selected based on their characteristics. Restoration techniques were then proposed to ensure the sustainability of the traditional production systems while retaining their original function.

Findings

The decision of water mill with the highest priority of conservation is based on the analysis of “structural damage,” “all seasons accessibility” and “supporting environmental factors.” This water mill was used primarily for grain production and is located on the Doyran River in Antalya. Current circumstance of the sample mill is analyzed, restoration techniques for the purpose of conservation and creation of recreational sites and that enable the presentation of traditional production methods are suggested.

Social implications

This paper includes implications for the contribution to the region’s cultural identity by developing the region’s infrastructure for cultural and ecological tourism and by ensuring the continuation of traditional production methods and craftsmanship.

Originality/value

This paper brings a new approach to the identification of water mills and the decision of the water mills to be conserved as a result of field studies.

Details

Journal of Cultural Heritage Management and Sustainable Development, vol. 6 no. 3
Type: Research Article
ISSN: 2044-1266

Keywords

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