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1 – 10 of 11Aaron Ecel, Godwin Mwesigye Ahimbisibwe, Dennis Nuwagaba, Mariah Nakintu Nankya and Shareen Nahurira
Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to…
Abstract
Purpose
Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to empirically examine intensity and utilisation of Uganda’s preferential market access.
Design/methodology/approach
Secondary data at the six-digit level of the harmonised system was sourced from the International Trade Centre’s and UN COMTRADE’s Trade Map database on trade flows to compute; trade intensity indices, Balsa’s revealed comparative advantage (RCA) indices and the existing potential trade. The time period was 2013–2022.
Findings
It is evident that Uganda is not taking full advantage of its preferential market access. The findings of the trade intensity analysis revealed that the strength of trade relations between Uganda and its preferential markets has been consistently weak in the period 2013–2022, while the intensity of trade relations with its FTA partners has been strong. The RCA results revealed that all Uganda’s agricultural exports to its preferential markets have a comparative advantage, with exports of roses reporting an exceptionally high RCA relative to other agricultural exports. The RCA results also show that the comparative advantage of Uganda’s coffee exports recovered after a significant fall in the period 2014–2022. The analysis of the existing potential for trade reveals a disproportionally low market share held by Uganda across all product lines, notably, only 2.3% of the US$29bn coffee imports in its preferential markets.
Research limitations/implications
One limitation of this study is that it primarily relied on quantitative data from the International Trade Centre and thus lacks an exhaustive understanding of the circumstances at the export firm level. Qualitative data, such as interviews with exporters and policymakers, could provide deeper insights into the specific challenges and opportunities faced by Ugandan businesses in these markets.
Practical implications
This paper highlights the need for additional trade facilitation measures to address preferential market access bottlenecks such as stringent rules of origin and call for an aggressive government intervention in enhancing the export readiness of SMEs in Uganda. In addition, the paper is informative to Uganda’s exporters regarding the existing and potential increase in their exports to international markets.
Originality/value
The strength of Uganda’s trade relations with its preferential markets is empirically examined in this paper and provides useful insights for enhancing utilisation of preferential market access by beneficiary countries.
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Masruri Muchtar, Ahmad Rodoni, Euis Amalia and Titi Dewi Warninda
This study aims to analyse the potential impacts of free trade agreement (FTA) between Indonesia and Organisation of Islamic Cooperation (OIC) countries by eliminating import…
Abstract
Purpose
This study aims to analyse the potential impacts of free trade agreement (FTA) between Indonesia and Organisation of Islamic Cooperation (OIC) countries by eliminating import tariffs in the halal food sector on welfare, gross domestic product (GDP) and trade balance. OIC countries as the second-largest organisation after the United Nations are the potential markets for the halal food industry.
Design/methodology/approach
This study used the Global Trade Analysis Project database version 10 by adopting a computable general equilibrium (CGE) model for two scenarios. The first scenario stated that Indonesia should conduct an FTA with ten potential OIC countries as export destination, while the second one stated that it should be conducted with all OIC countries.
Findings
Indonesia is predicted to get the highest increase in welfare by making an FTA with all OIC countries. Scenario 2 showed that Indonesia had much higher changes in real GDP with a positive change of 0.0018%. Even though it is projected to experience a surplus in the trade balance in both scenarios, Indonesia is predicted to experience a decline in exports for the particular halal food sector. The findings contribute some new insights to the existing literature, revealing an alignment between economic integration and the concept of international trade in Islam.
Research limitations/implications
The limitation of this study is the available data that cannot describe the population of all OIC countries. Only 31 countries out of a total of 56 OIC countries can be used in research. The scope of research is limited to analysing FTAs between Indonesia and OIC countries in the form of abolishing import tariffs and does not include non-tariff barrier issues such as halal certification.
Practical implications
The preferential trade agreement is considered relevant as Indonesia’s initial commitment to conduct a bilateral trade with ten selected OIC countries. The Indonesia Government, however, still needs to make several mitigation efforts in various sectors experiencing losses as a result of economic integration, such as by creating a more conducive business climate, supporting the sources of capital, facilitating bureaucratic affairs, as well as providing tax incentives.
Originality/value
This paper contributes to the literature by focusing on the critical aspects of the FTA’s impacts on halal food sectors by optimizing the reduction of import tariffs of OIC countries. Different from previous studies, this study applied a static CGE model to examine the impacts of FTA on macroeconomic indicators.
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Ibrahim Mathker Saleh Alotaibi, Mohammad Omar Mohammad Alhejaili, Doaa Mohamed Ibrahim Badran and Mahmoud Abdelgawwad Abdelhady
This paper aims to examine the extent to which these reforms address the limitations of Saudi Arabia’s previous investment framework. Long viewed as a hostile environment in which…
Abstract
Purpose
This paper aims to examine the extent to which these reforms address the limitations of Saudi Arabia’s previous investment framework. Long viewed as a hostile environment in which to do business, the Saudi Government has enacted a broad sweep of measures aimed at restoring investor confidence in central aspects of the country’s evolving private law framework.
Design/methodology/approach
This paper offers a timely assessment of the raft of foreign investment reforms, both legislative and regulatory, that have been introduced in Saudi Arabia over the last decade.
Findings
The paper will proceed by outlining the perceived failings of the old investment regime before going on to reforms.
Originality/value
It will consider the remaining obstacles to the flow of foreign investment in Saudi Arabia in the context of the dual forces that have historically defined the Kingdom’s ambivalent investment law regime.
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Brajesh Mishra, Avanish Kumar and Ishaan Mishra
The study explores the evolution of Indian domestic electronics manufacturing post-economic reforms and also investigates the lack of natural growth stages among Indian…
Abstract
Purpose
The study explores the evolution of Indian domestic electronics manufacturing post-economic reforms and also investigates the lack of natural growth stages among Indian start-up/SME electronics manufactures.
Design/methodology/approach
The theoretical framework is inspired by Dawar and Frost's survival strategy theory that local companies may follow to overcome competitive threats from MNCs. The study adopts a qualitative methodology, more precisely, a phenomenological approach to walking through policy/regulatory reforms amid market distortions, technological gaps and colonial mindset from the perspective of Indian domestic electronics manufacturers. The study has adopted Gioia method of data analysis to inductively suggest a few research propositions.
Findings
The phenomenological approach revealed eight essential structure (essence) narratives to explore the complex issue that plague the industry: make in India, made in India, preferential market access strategy, equitable market access strategy, blue ocean strategy, competitive positioning strategy, technical capability and importance of policy/regulatory arbitrage.
Practical implications
The situation of Indian electronics manufacturing units is comparable to the bonsai tree situation, where natural evolution in business stages does not exist; they are born and die as start-ups/MSMEs. The study advocates for equitable market access by removing market distortions. The long-term solution may lie in making available locally manufactured products as a dependable alternative to the imported products or produced locally by MNC OEMs in terms of cost, quality, technology, volume, after-sale service and integrated supply chain.
Originality/value
While the favorable FDI policies, digital India and make-in India initiatives have strengthened domestic electronics production, it is yet to significantly impact India's position in global trade, including manufacturing and exports.
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This chapter has briefly discussed the problems of defining development and underdevelopment, and Gustavo Esteva's opinion that ‘underdevelopment’ was invented. The Proposal for…
Abstract
This chapter has briefly discussed the problems of defining development and underdevelopment, and Gustavo Esteva's opinion that ‘underdevelopment’ was invented. The Proposal for Action of the First UN Development Decade (1960–70), Mr Robert S McNamara's view (President of the World Bank in the 1970s) on development, the Western World's Perception of Development, the |Nature of the UN Institution for Socio-Economic Development in Developing Countries, the role of International Trade and Development have been discussed in this chapter.
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Rizka Amalia Nugrahapsari, Abdul Muis Hasibuan and Tanti Novianti
This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers…
Abstract
Purpose
This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers and consumers.
Design/methodology/approach
The research used annual series data from 1991 to 2021 and employed inferential, simulation, and descriptive analyses. The two-stage least squares (2SLS) of 19 simultaneous equations were used to estimate parameters.
Findings
The results indicate that free trade policies and restrictions have influenced the citrus industry, leading to a reduction in Indonesian citrus imports, and increased consumer and producer prices. However, eliminating import tariff policies on citrus from China and import restrictions increased producer surplus while decreasing consumer surplus, government revenue, and total welfare. Therefore, trade policies should be combined with non-trade policies such as citrus region development policies and advancing cultivation technology.
Originality/value
This study provides empirical evidence for the Indonesian government to formulate effective citrus trade and development policies. It emphasizes the importance of carefully considering the impact of trade policy on the citrus industry and the need to implement non-trade policies such as citrus zone development policies and advancing cultivation technology to benefit both producers and consumers.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0148
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Md Rokibul Hasan and Debanjan Das
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Originality/value
This study contributed novelty and enrichment to the existing academic literature by identifying distinct apparel product categories that contribute to the industry's growth.
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Hasan Valiyan and Mohammadreza Abdoli
The purpose of this study is to investigate the effect of anarchist accounting (AA) on stakeholder relationship capability (SRC) in the context of Iranian capital market companies.
Abstract
Purpose
The purpose of this study is to investigate the effect of anarchist accounting (AA) on stakeholder relationship capability (SRC) in the context of Iranian capital market companies.
Design/methodology/approach
This study is based on a descriptive survey-correlation data collection method. As this study is on (AA) and (SRC) in Iran, the population of the study is made up of all financial managers and heads of the accounting department of capital market companies in Iran. Among 185 companies (Tehran Stock Exchange [TSE]), 100 companies were selected as samples which are all in the TSE. As suggested by Niles (2006), a minimum sample size of 10% of the population is generally acceptable. A questionnaire survey was adopted in obtaining primary data for this study. Thus, based on Cochran sampling techniques, 395 questionnaires were returned and became the basis of analysis. Also, partial least square was used to test the research hypothesis.
Findings
The statistical findings indicate the fit of the structural desirability of the factor load and according to the standardized coefficient (path coefficient), the dimensions of AA have a negative and significant effect on SRC, because the path coefficient is positive.
Originality/value
Theoretically, to the best of the authors’ knowledge, this study is the first research that tries to examine the stakeholder relationship capability through the link between social/political approaches with accounting procedures, an issue that has not been considered in any prior study. Also, conducting the present study in the conditions of social distrust in the Iranian capital market can be important, because the expansion of anarchist accounting helps to create a level of symmetry and equality in information disclosure and it can create value for shareholders.
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Ashjan Baokbah and Vikrant Shirodkar
Research on the political connections of multinational enterprises’ (MNEs’) subsidiaries in emerging host countries has been growing. The purpose of this paper is to integrate…
Abstract
Purpose
Research on the political connections of multinational enterprises’ (MNEs’) subsidiaries in emerging host countries has been growing. The purpose of this paper is to integrate institutional and resource dependence theories to argue that MNEs-subsidiaries are likely to develop fewer formal (i.e. board-level) political connections when operating in welfare-state monarchies as compared to in host countries with developmental-state democratic systems. Furthermore, this paper argues that MNE-subsidiaries develop formal political connections to a greater extent in industries where religion influences the development of products and services considerably. Finally, the extent of developing formal political connections varies by the scale of the MNEs’ investment (or subsidiary density) in the host market.
Design/methodology/approach
The paper tests its hypotheses on a sample of foreign-owned subsidiaries operating in Saudi Arabia and Egypt. The data was collected by combining information from Bureau Van Dijk’s Orbis database with company websites and other secondary sources. The final sample consisted of 156 observations – 70 MNEs-subsidiaries operating in Saudi Arabia, and 86 in Egypt.
Findings
The findings confirm that foreign subsidiaries are likely to develop fewer formal political connections in a welfare-state monarchy as compared to in a developmental-state democratic system. Furthermore, formal political connections are more significant in industries that are impacted by the influence of religion – such as the financial industry in Arab countries. Finally, the extent of using political connections varies by the scale of the MNEs’ investment in the host market – that is, with a greater scale of investment (or higher subsidiary density), formal political connections are greater.
Originality/value
The paper contributes theoretically by explaining that a combination of institutional heterogeneity and its associated resource dependence conditions between MNEs and host governments influence MNE-subsidiaries' political connections. The paper tests its hypotheses in an emerging Arab context, which is characterized by both autocratic and semi-democratic political settings, and which makes the integration of institutional and resource dependence theories useful in explaining how MNE-subsidiaries navigate local complexities in this region.
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