Search results

This study examines how bilateral international trade among mandatory International Financial Reporting Standards (IFRS) adopter countries moderates the relation between IFRS adoption and firms’ financial reporting quality.

The authors use data from 2007 to 2015 and focus on publicly listed firms from non-European Union countries that adopted IFRS on a mandatory basis.

The authors find that the interaction between mandatory IFRS adoption and a country’s bilateral trade with other countries using IFRS is negatively and significantly related to accruals-based earnings management, which is an inverse measure of financial reporting quality. This result is driven by firms in less developed countries. The improvement in accounting quality is for firms located in countries that both fully and partially adopt IFRS. The authors also find a significant and negative coefficient for the relation between real earnings management and the interaction between mandatory IFRS adoption and a country’s bilateral trade with other IFRS countries in the post-global financial crisis period.

Overall, the authors’ results are consistent with the notion that the mandatory adoption of IFRS creates a positive externality where firms improve their accounting quality because increased financial statement comparability means that foreign customers and suppliers can monitor the quality of earnings more easily.

This study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000 to 2016.

The input-output method apply to multiregional tables from Eora-26 to decompose the GHG emissions of the Brazilian and Chinese productive structure.

The data reveals that Chinese production and consumption emissions are associated with power generation and energy-intensive industries, a significant concern among national and international policymakers. For Brazil, the largest territorial emissions captured by the metrics come from services and traditional industry, which reveals room for improving energy efficiency. The analysis sought to emphasize how the productive structure and dynamics of international trade have repercussions on the environmental dimension, to promote arguments that guide the execution of a more sustainable, productive and commercial development strategy and offer inputs to advance discussions on the attribution of climate responsibility.

The metrics did not capture emissions related to land use and deforestation, which are representative of Brazilian emissions.

Comparative analysis of emissions embodied in traditional sectoral trade flows and GVC, on backward and forward sides, for developing countries with the main economic regions of the world.

This study aims to investigate the role of international price volatility and inventories on domestic market price dynamics in the case of agricultural commodities.

A structural model is employed to uncover relationships among commodity price, price volatility, inventories and convenience yield. Monthly producer price data along with annual data on trade, consumption, inventories and tariffs for 71 countries and 13 commodities covering 2010–2019 are assembled to estimate the model. With a first-stage Least Absolute Shrinkage and Selection Operator (LASSO) estimator to identify the best instrument set, a nonlinear approach is used to estimate the model.

Results show that international market information plays a critical role in domestic market price dynamics. International price volatility has a stronger effect on domestic prices than that of international inventories.

Current upheaval in commodity markets requires an understanding of how prices move together and inventories affect that movement. A country's internal price is not independent of the effects of global market events.

Although hypotheses exist that global market information (volatility and inventories) helps countries manage domestic commodity prices, there have been limited studies on this relationship, especially with a structured model and cross-country data.

The purpose of this paper is to describe and analyze the impacts that the recent proliferation of private and overlapping standards is having in the trade of agricultural products from developing countries.

In a first stage industry experts in the Chilean fresh fruit trading industry were interviewed to understand the perceived impact that private standards are imposing in the industry. These interviews allowed to identify the market case study, table grapes, the landscape of private standards and their prevalence in different countries. In a second stage, a gravity trade model for trade in table grapes was estimated, with a focus on the more stringent countries identified by experts in the first stage.

We show evidence that the proliferation of private standards required by large European retailers has diverted trade away from more stringent countries that require more certifications (and into less stringent European markets). We also show that the costs of these additional certifications have been shared by trading partners, via an increase in direct sales, as opposed to consignment (the traditional marketing mode), which is associated with higher prices.

The impacts of the recent proliferation of private and overlapping standards in international trade needs to be better understood both by the legal and economic literature. While the use of private standards has been growing since the 1990s, there is a recent trend of large European retailers imposing their own and overlapping standards that needs to be better understood to inform policy.

While there is a thin literature on the impact of private standards on trade, most of this has studied the effects of the now de facto mandatory GlobalGAP certification. However, there is a recent trend by large European retailers of demanding their own private certifications, together with other already existing overlapping private standards. This study describes and analyzes the impacts of this rather new trend.

Czechia's economic growth is substantially dependent on foreign trade. An independent monetary policy in a managed floating exchange rate regime gives a unique perspective on the effects of the exchange rate on foreign trade. This chapter evaluates the effects of exchange rate development on different sectors of Czechia's foreign trade. Using disaggregated data based on trading partner and product category, the period from 1999 to 2020 is analyzed. Czechia's 10 major trading partners are included in the estimation. The relationship between exchange rates and foreign trade is assessed through a Johansen cointegration approach and modified vector error correction model. The results of the Johansen cointegration test indicate that the majority of the aggregate bilateral trade balances are in a long-term relationship with Czechia's gross domestic product (GDP), foreign GDP and exchange rate movements. The J-curve is proved only in chemicals and related products traded with France, manufactured goods traded with Italy and Slovakia and mineral fuels and lubricants traded with the Netherlands.

This study aims to convey the understanding of the ecosystem – how “hundi” works on the border trade between Myanmar and northern Thailand, which is an informal transfer system and is widely used as an alternative banking system. Even though the role of hundi is unable to declare the sources of money under the standard settlement of formal banking system, a failure to operate of its official mechanism are carrying using hundi, as a financial platform across the border between Thailand and Myanmar. This study surveys the best practice mechanism for the regional and international cooperation.

This paper draws on relevant literature, open-source reporting, and interviews with more than 30 interviewees on the border between Thailand and Myanmar. Interviewees includes border-trader, money changer, money transfer operators, business leaders, hundi operators, immigrant labors, government officials and commercial banking staffs.

This study provides a unique insight of hundi system, which work as the alternative mode of formal banking. It is an informal fund transfer payment platform used on the border between Thailand and Myanmar in the past five decades. It insists that hundi plays a significant role in both substitution and complementary on the trade and payment across the border of Myanmar–Thailand. Even though confronting with the barriers of financing of terrorism (anti money laundering AML/combating the financing of terrorism CFT) risk, the competition with the expanding and modernizing formal banking sector, and the introduction of Fintech and mobile money services. In the short term, these are unlikely to eliminate the hundi system completely, but may instead push hundi operators towards adopting these networks and technologies in their own operations.

This paper will be a useful source for academics, development professionals, policymakers, law enforcement agencies and business actors who are seeking to understand Myanmar’s informal payment system, hundi.

This is the latest work for border trade payment or trade financing role of hundi which has hidden under the informal market of the border for several decades. It has few research of hundi on border trade and payment, particularly after the military coup in 2021 which made hundi return to be on the spotlight and simultaneous mechanism of border trade and payment ecosystem of Myanmar. This paper will be a useful source for academics, development professionals, policymakers, law enforcement agencies and business actors who are eager to understand Myanmar’s informal payment system, hundi, especially during the hardship.

In 2017, it was a challenge to assess the future of global trade. It was an open question whether the US financial crisis and the recession that it triggered would mark a turning point for the liberal post–World War II world order. If one looked toward Europe, China, Latin America, and Japan, there was a flurry of activity. New trade agreements were being completed and pursued. In Washington, DC, on the other hand, President Donald Trump seemed set on ripping apart and/or renegotiating any trade deal the United States was ever part of.

This case explores Trump's opinions and emerging policy stance on trade, bilateralism, and the global economy, among others. It also gives an overview of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) and asks whether the Trump presidency would constitute a major challenge to the WTO and what it stood for in 2017.

The present study provides evidence on export advantages of horticultural commodities based on competitiveness, trade balance and seasonality dimensions.

The study delineated horticultural commodities in terms of comparative advantage, examined temporal shifts in export advantages (mapping) and estimated seasonality. Product mapping was carried out using the Revealed Symmetric Comparative Advantage (RSCA) and Trade Balance Index (TBI). Seasonal advantages were examined through a graphical approach along with the objective tests, namely, modified QS-test (QS), Friedman-test (FT) and using a seasonal dummy.

Cucumbers/gherkins, onions, preserved vegetables, fresh grapes, shelled cashew nuts, guavas, mangoes, and spices emerged as the most favorable horticultural products. India has a strong seasonal advantage in dried onions, cucumber/gherkins, shelled cashew nut, dried capsicum, coriander, cumin, and turmeric. The untapped potential in horticulture can be addressed by handling the trade barriers effectively, particularly the sanitary and phytosanitary issues, affecting the exports. Proper policies must be enacted to facilitate the investment in advanced agricultural technologies and logistics to ensure the desired quality and cost effectiveness.

Commodity-specific studies on value chain analysis would provide valuable insights into the issues hindering exports and realizing the untapped export potential.

There is no holistic and recent study illustrating the horticulture export advantages covering a large number of commodities in the Indian context. The study would be helpful to the stakeholders for drawing useful policy implications.

Logistics sector is recognized as one of the core enablers of the economic development of a nation. However, inefficiency in logistics operations impedes the achievement of intended targets by increasing the cost of doing business. Also, it is difficult to improve the efficiency of a country’s logistics operations without a metric for evaluating and understanding logistics capabilities and efficiency. Therefore, the present study has developed In-country Logistics Performance Index (ILP Index) to propose a benchmarking tool to measure the in-country logistics competitiveness, particularly in the setting of emerging economies, i.e. India.

This study has developed a unified index using principal component analysis and quintile approach. In addition, the proposed index relies on several dimensions that are developed and illustrated using quantitative secondary panel data.

The findings of this study reveal that the quality of infrastructure, economy, and telecommunications are the three most important dimensions that may significantly support the growth of the transportation and logistics sector. The results reveal that Gujarat, Tamil Nadu, and Maharashtra are the top performers whereas, Bihar, Jharkhand, and Jammu and Kashmir scores the least due to the insufficient logistics infrastructure as compared to other Indian states.

Given the extensive focus on international-level logistics index (like World Bank’s LPI) in the existing literature, this study intends to develop in-country logistics index to evaluate the logistics capabilities at the regional and state level. In addition, unlike prior studies, this study utilizes quantitative secondary data to eliminate cognitive and opinion bias. Moreover, this benchmarking tool would assist decision-makers in idealizing standard practices toward sustainable logistics operations. Additionally, the ILP index could serve the international investors in crucial decision-making, as it provides valuable insights into a country’s logistics readiness, influencing their investment choices and trade preferences. Finally, the proposed approach is adaptable to measuring the overall performance of any other industry/economy.