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Article
Publication date: 27 March 2020

Zihan Wang, Jing Shuai, Zhihui Leng, Chuanmin Shuai and Zhiyao Shi

Through empirical analysis of Sino-US solar photovoltaic (PV) trade, this paper aims to evaluate the complementarity of Sino-US solar PV trade by adopting trade combination degree…

Abstract

Purpose

Through empirical analysis of Sino-US solar photovoltaic (PV) trade, this paper aims to evaluate the complementarity of Sino-US solar PV trade by adopting trade combination degree (TCD) index, export similarity index (SI) and trade complementarity index (TCI). It also explores the role of trade disputes over Sino-US solar PV trade between China and the USA and important factors affecting the complementarity of the trade.

Design/methodology/approach

Based on the comparative advantage theory, this paper selects the TCD, export SI and TCI to evaluate the complementarity of Sino-US solar PV trade comprehensively. Among them, TCD and SI can directly reflect the degree of cooperation and competition of Sino-US solar PV trade. Finally, the authors further analyze the decisive factors affecting the complementarity of Sino-US PV trade by entropy weight method and multiple linear regression analysis on the influencing factors of TCI.

Findings

The solar PV trade between China and the USA still has a close relationship, and there is solar PV trade cooperation and competition between the two countries. The factors affecting the complementarity of Sino-US solar PV trade are mainly exchange rate levels rather than trade disputes between China and the USA. The solar PV trade policies of China and the USA will have a great negative impact on the global supply chain of solar PV products. The major solar PV products in China and the USA have a clear division in the global supply chain and still have a strong trade complementarity.

Originality/value

This paper conducts an empirical analysis of the Sino-US solar PV trade rather than a policy discussion. This research has important practical significance for the healthy and sustainable development of solar PV trade for both countries. It can also provide references to the current trade disputes between China and the USA in a broader sense.

Details

International Journal of Energy Sector Management, vol. 14 no. 5
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 15 May 2009

Bernadette Andreosso‐O'Callaghan

Economic structural complementarity between country A and country B, or the way the two countries specialize in different industries is a useful tool for the analysis of the…

1821

Abstract

Purpose

Economic structural complementarity between country A and country B, or the way the two countries specialize in different industries is a useful tool for the analysis of the likely impact of trade liberalization. Although implicit in earlier work on economic integration, this concept has been overshadowed subsequently, probably because of the “econometrization” of the studies on trade liberalization. This paper aims to discuss first the relevance of the concept of structural complementarity between two economies in the context of regional integration. Second, since the EU and Korea are on the verge of signing a free trade agreement (FTA), it aims to show that measuring economic structural complementarity in the case of these two countries is all the more desirable.

Design/methodology/approach

The paper applies a number of indices such as the trade complementarity index and the Kreinin‐Finger similarity of export index to the manufacturing sector.

Findings

On the whole the EU and Korea are structurally complementary, implying large potential gains from the FTA. However, the existence of two critical industries, namely road vehicles and electrical machinery are revealed.

Practical implications

The FTA poses some sectoral challenges to the industries, in particular for the EU, and it calls for appropriate strategies in these areas.

Originality/value

This article both clarifies and measures economic structural complementarity, a concept connected with, but not reduced to that of competitiveness. By using several indicators, the present study shows that the manufacturing sectors of the EU and of Korea are on the whole complementary.

Details

Journal of Economic Studies, vol. 36 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 30 January 2004

Sang-yirl Nam

World trade has been increasing rapidly and much faster than world output. This study analyzes the trade structures of major dynamic East Asian countries as well as regional…

Abstract

World trade has been increasing rapidly and much faster than world output. This study analyzes the trade structures of major dynamic East Asian countries as well as regional subgroups such as ASEAN members and Northeast Asian countries. Emphasis will be on the complementarities that would enhance integration among them through international trade. In addition, potential trade levels for each combination of East Asian countries are estimated by applying the gravity model of trade to the trade flows of21 APEC members, as a reference group. It is estimated to have significant potentiality by regional subgroup, ASEAN or Northeast Asia, and not between the two regional subgroups. However, the potential integration between East Asian countries in different regional subgroups is more significant by considering complementarities in trade compared with the results from the basic gravity model. To enhance economic cooperation between East Asian countries, expanding relationships such as inter-industry trade in natural resources trade and industrial goods between the regional subgroups needs to occur. They should also utilize complementary relationships from intra-industry trade in industrial goods such as electric and electronic equipment, related parts and accessories. And they should focus on the implementation of trade facilitation measures based on global standards.

Details

Journal of International Logistics and Trade, vol. 1 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 27 July 2012

Assem Reda Abu Hatab, Nada Abdelhamed Shoumann and Huo Xuexi

Bilateral trade between Egypt and China has expanded substantially in recent years. Few studies however have focused on the understanding of this trade relationship. The purpose…

2154

Abstract

Purpose

Bilateral trade between Egypt and China has expanded substantially in recent years. Few studies however have focused on the understanding of this trade relationship. The purpose of this paper is to fill a void in the literature by examining and understanding the two countries' trade pattern.

Design/methodology/approach

In order to achieve the objectives of the paper, and in the light of the pool of literature and availability of data, the authors relied on qualitative methods to analyze the composition of trade between Egypt and China. In addition, the authors employed trade intensity index, intra‐industry trade index, and examined the trade complementarity to capture the dynamics and perspectives of bilateral trade between the two countries.

Findings

Results show low values in Egypt's trade intensity index, implying that Egyptian trade with China is less than it should be. The low values of the intra‐industry trade index suggest smaller trade between the two countries' firms in the same industry. The study clearly shows that there are few areas where there is an overlap in the two countries' comparative advantage. The trade complementarity analysis tends to suggest that the complementarity for China to export to Egypt is increasing, while that for Egypt to export to China is declining.

Originality/value

Given the lack of research that examines and compares trade between the two countries, the paper provides an in‐depth understanding of the patterns of trade between them and the driving forces behind such dynamics, which is pertinent to best capture the opportunities presented by the Chinese market. Also, the findings can be used to draw policy implications for promoting future trade and cooperation between Egypt and China.

Details

Journal of Economic Studies, vol. 39 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 30 April 2014

Tran Nhuan Kien and Yoon Heo

This paper aims at examining the dynamic patterns and traits of bilateral trade between Korea and Vietnam. The major findings of this paper can be summarized as follows. First…

Abstract

This paper aims at examining the dynamic patterns and traits of bilateral trade between Korea and Vietnam. The major findings of this paper can be summarized as follows. First, the structure of trade between Korea and Vietnam conforms to each country’s factor proportion. Second, the structure of Korea’s imports from Vietnam did not change over the last two decades. In other words, Vietnam has failed to climb up the industrial ladder. Third, the degree of intra-industry trade between Korea and Vietnam has been low and unstable. Fourth, the trade pattern between Korea and Vietnam has been complementary not competitive in nature. Korea-Vietnam FTA will open a new horizon for the deeper vertical integration of the two.

Details

Journal of International Logistics and Trade, vol. 12 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 3 August 2010

Ananda Jayawickrama and Shandre M. Thangavelu

The purpose of this paper is to examine the trade linkages and degree of export competitiveness between Singapore, China and India.

3193

Abstract

Purpose

The purpose of this paper is to examine the trade linkages and degree of export competitiveness between Singapore, China and India.

Design/methodology/approach

Balassa's export performance index and the dynamic RCA index was adopted, as suggested by Kreinin and Plummer to identify the revealed comparative advantage (RCA) of the above countries in industrial products by SITC 1‐ and 2‐digit levels. The Spearman's rank correlation coefficient is used to identify the degree of complementarity between RCA indices.

Findings

Given the abundant resources, China and India have comparative advantage in a broad range of manufactured goods as compared to Singapore. From the disaggregated analysis at 2‐digit level, the paper finds that the Singapore and China exports are complements, although the degree of complementarity has being declining over time. Meanwhile, Singapore and India exports are found to be stronger complements and stable over time. The results also show that China and India exports are strong substitutes. The paper also finds that the export specialization of China and India has experienced significant changes and shifting to new export products over time.

Originality/value

Given the recent trade agreements between China and Singapore and India and Singapore, it is important to examine the trade linkages (complementarity/substitutability of trade) between these countries. The paper highlights the importance of China and India in complementing countries such as Singapore as it climbs the technological ladder to maintain its competitiveness in the world market.

Details

Journal of Economic Studies, vol. 37 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 15 June 2012

Mohammad Masudur Rahman and Chanwahn Kim

The purpose of this paper is to explore the trade and investment potential under the ambit of sub‐regional cooperation comprising the four contiguous countries of Bangladesh…

4354

Abstract

Purpose

The purpose of this paper is to explore the trade and investment potential under the ambit of sub‐regional cooperation comprising the four contiguous countries of Bangladesh, China, India and Myanmar (BCIM).

Design/methodology/approach

The study addressed both intra‐regional and intra‐industrial trade, applying a dynamic gravity model of bilateral trade flows by product group of BEC's 1‐digit product classification, to set a panel data for the period of 1992‐2009.

Findings

The analysis reveals that higher trade transaction costs and tariff between each pair of countries reduce the trade flow. One of the major findings of the paper is that a large part of BCIM's trade has remained unrealized and the trade transaction cost is one of the major trading barriers prohibiting the growth of BCIM intra‐regional trade. The paper concludes that liberalization of non‐policy barriers will spur BCIM's trade, particularly in a time of ongoing global economic and financial crisis.

Practical implications

The study reinforces that improvement in infrastructure that leads to less trade transportation costs should be a necessary step in order to realize BCIM's trade potential. The paper concludes that liberalization of non‐policy barriers will spur BCIM's trade and economic cooperation, particularly in time of ongoing global economic and financial crisis.

Originality/value

This paper is the first‐ever attempt to estimate the trade potential of BCIM countries using dynamic gravity model.

Details

Journal of International Trade Law and Policy, vol. 11 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 21 June 2022

Neha Jain and Sandeep Kumar

The purpose of the paper is to explore the economic repercussions of potential India–USA free trade agreement (FTA) on the trade of agricultural commodities at HS 2-digit level.

Abstract

Purpose

The purpose of the paper is to explore the economic repercussions of potential India–USA free trade agreement (FTA) on the trade of agricultural commodities at HS 2-digit level.

Design/methodology/approach

The analysis is undertaken by assuming tariff reduction in a phased manner using the World Integrated Trade Solutions (WITS)-SMART partial equilibrium model to identify the trade creation and trade diversion effects.

Findings

Overall results show that both the trading partners gain from the proposed FTA. Trade creation dominates over trade diversion in India's analysis.

Practical implications

An FTA between India and the USA could be an essential step toward more liberal trade regimes and provide enormous economic benefits to both countries. Government of both the countries should support deeper integration. This will create more job opportunities and generate prosperity in both economies.

Originality/value

There are numerous studies conducted on evaluating the impact of FTAs ratified between countries. But there are limited studies which evaluate the impact of the proposed India–USA FTA on the economies of both trading partners specifically on the agriculture sector.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 29 November 2018

Javeria Maryam, Umer Jeelanie Banday and Ashok Mittal

In the recent international scenario, the rise of emerging economies, in particular, Brazil, Russia, India, China and South Africa (BRICS) has gained ample of attention. The…

Abstract

Purpose

In the recent international scenario, the rise of emerging economies, in particular, Brazil, Russia, India, China and South Africa (BRICS) has gained ample of attention. The global trade flows of the BRICS countries have significantly increased during the last one-and-a-half decade. The purpose of this paper is to examine the intra-BRICS and BRICS–EU trade flows.

Design/methodology/approach

To study the intensity of trade among BRICS countries and with EU, the Trade Intensity Index is employed for the period 2001–2015. Balassa’s revealed comparative advantage (RCA) index is computed for the assessment of comparative advantages of exports by BRICS countries in the year 2015 in the global markets. A comparative analysis of export similarity is done for India and other BRICS countries in EU.

Findings

The findings of trade intensity showed large bilateral trade flows among BRICS member. Russia has emerged as the main trading partner with EU in BRICS. For the year 2015, the comparative study of RCA at HS-two digits and HS-four digits classification highlights marginal structural changes in the export composition of these countries. The analysis revealed that Brazil and Russia have comparative advantages in natural resource-based products, while India and China possessed comparative advantages in manufactured and processed products. The export similarity index shows the presence of competition between India and China in EU.

Practical implications

This paper highlights the need for closer cooperation to promote intra-BRICS trade and to make structural transformations in the basket of trading products by them to have trade benefits at large.

Originality/value

Numerous studies are available on bilateral trade of BRICS members. However, limited studies are available to get a holistic view of intra-BRICS trade. This paper is an attempt to examine the BRICS countries trade profile both at global levels and within the group.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 6 June 2016

Zheng-Xin Wang and Hong-Tao Zhu

Since the construction of China-ASEAN Free Trade Area (CAFTA) launched in 2002, the bilateral trade increased rapidly. The purpose of this paper is to test the competition and…

Abstract

Purpose

Since the construction of China-ASEAN Free Trade Area (CAFTA) launched in 2002, the bilateral trade increased rapidly. The purpose of this paper is to test the competition and cooperation in trade relationships between China and the main trading partners (Singapore, Malaysia and Thailand (SMT)) from ASEAN in international trade under CAFTA.

Design/methodology/approach

Grey Lotka-Volterra competition models are established for testing the trade relationships between China and SMT, respectively, based on the data of import and export from 2003 to 2014. To improve modeling accuracy, the interpolated coefficients for dynamic background value are introduced into the grey Lotka-Volterra model. The optimal parameters are solved through minimizing the mean absolute percentage error and the constraint of parameter relationships. Besides, eigenvalues of the Jacobian matrix are adopted to carry out the stability of equilibrium points of the trade relationships.

Findings

As the beneficiary party, China has mutual benefit and win-win trade relationship with Singapore, while it has predator-prey trade relationships with Malaysia and Thailand. The future exports from SMT to China will stabilize at 462.31, 598.13 and 447.03 billion dollars, respectively. The future exports from China to SMT will stabilize at 637.16, 943.71 and 827.52 billion dollars, respectively.

Practical implications

This study can be regarded as an important reference for China and its trading partners from ASEAN. The modeling results can help the decision makers to formulate appropriate international trade strategies to gain and maintain competitive advantages.

Originality/value

A new approach to testing the trade relationships is proposed based on grey Lotka-Volterra competition model. The study also proposed a dynamic optimization method for the background value of grey Lotka-Volterra model.

Details

Kybernetes, vol. 45 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

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