Pub Date : 2022-02-03DOI: 10.1177/00157325211072922
Swathi. M, P. Sridharan
This article empirically explores the key drivers of export diversification in a large panel of 101 countries consisting of 43 high-income, 47 middle-income, and 11 low-income countries from 1995 to 2019. Considering the fractional nature of the dependent variable (Herfindahl-Hirschman Index), the estimates are obtained using the fractional logit technique with a set of potential determinants of export diversification for all country samples and three sub-samples. The results reveal that human capital accumulation, GDP per capita, population, trade openness, the share of manufactured output to GDP, and FDI are important determinants of export diversification. However, the share of agriculture to GDP and official exchange rate promotes export concentration. Contrary to our all-country estimation, GDP per capita and population act as deterrents to export diversification in low-income countries. In addition, the results show that the value-added in agriculture plays a dominant role in strengthening the export structure of high-income countries. Our findings suggest that policymakers should implement and reform policies targeting human capital accumulation, trade openness, investment, and value addition in the manufacturing sector for diversifying the export structure. JEL Codes: C33, F14, J24, O1
{"title":"Determinants of Export Diversification: Evidence from Fractional Logit Estimation Model","authors":"Swathi. M, P. Sridharan","doi":"10.1177/00157325211072922","DOIUrl":"https://doi.org/10.1177/00157325211072922","url":null,"abstract":"This article empirically explores the key drivers of export diversification in a large panel of 101 countries consisting of 43 high-income, 47 middle-income, and 11 low-income countries from 1995 to 2019. Considering the fractional nature of the dependent variable (Herfindahl-Hirschman Index), the estimates are obtained using the fractional logit technique with a set of potential determinants of export diversification for all country samples and three sub-samples. The results reveal that human capital accumulation, GDP per capita, population, trade openness, the share of manufactured output to GDP, and FDI are important determinants of export diversification. However, the share of agriculture to GDP and official exchange rate promotes export concentration. Contrary to our all-country estimation, GDP per capita and population act as deterrents to export diversification in low-income countries. In addition, the results show that the value-added in agriculture plays a dominant role in strengthening the export structure of high-income countries. Our findings suggest that policymakers should implement and reform policies targeting human capital accumulation, trade openness, investment, and value addition in the manufacturing sector for diversifying the export structure. JEL Codes: C33, F14, J24, O1","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90176680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-01DOI: 10.1177/00157325211053904
D. Chakraborty
Sheela Rai and Jane Winn (Eds.), Trade Facilitation and the WTO. Cambridge Scholars Publishing, 2019, GBP 61.99, 270 pp. (Hardback). ISBN 978-1-5275-3402-5.
{"title":"Book review: Sheela Rai and Jane Winn (Eds.), Trade Facilitation and the WTO","authors":"D. Chakraborty","doi":"10.1177/00157325211053904","DOIUrl":"https://doi.org/10.1177/00157325211053904","url":null,"abstract":"Sheela Rai and Jane Winn (Eds.), Trade Facilitation and the WTO. Cambridge Scholars Publishing, 2019, GBP 61.99, 270 pp. (Hardback). ISBN 978-1-5275-3402-5.","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91344570","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-24DOI: 10.1177/00157325211060934
Tonmoy Chatterjee, Soumyananda Dinda
This study argues that post-pandemic world may not necessarily follow the usual mechanism of trade. In fact, recent pandemic dragged down us to the trajectory of new normalcy. Economic behaviour under new normalcy has changed immensely following several distorted effects, namely preference distortion and information asymmetry. Such distortions change trade posture via gains from trade arguments under comparative advantage. Using the traditional Ricardian model with two countries, two goods and one factor, this study explores the effect of changes in consumer preferences on trade patterns based on comparative advantage and the significance of eliminating information uncertainty. To retain the pre-pandemic gains from such trade this study advocates for consideration of information cost associated with trade basket along with innovation. These results could be important for policymaking at least in post pandemic regime. Sensitivity analysis has also been constructed to capture the extent of changes in trade–autarky profit gaps. This study builds on the verge of economic crisis linking to pandemic and international trade. JEL Codes: C70, D81, F11, L15
{"title":"Preference Distortion, Information Cost and Comparative Advantage: A Theoretical Quest to Claim Trade Posture in Post-Pandemic Era","authors":"Tonmoy Chatterjee, Soumyananda Dinda","doi":"10.1177/00157325211060934","DOIUrl":"https://doi.org/10.1177/00157325211060934","url":null,"abstract":"This study argues that post-pandemic world may not necessarily follow the usual mechanism of trade. In fact, recent pandemic dragged down us to the trajectory of new normalcy. Economic behaviour under new normalcy has changed immensely following several distorted effects, namely preference distortion and information asymmetry. Such distortions change trade posture via gains from trade arguments under comparative advantage. Using the traditional Ricardian model with two countries, two goods and one factor, this study explores the effect of changes in consumer preferences on trade patterns based on comparative advantage and the significance of eliminating information uncertainty. To retain the pre-pandemic gains from such trade this study advocates for consideration of information cost associated with trade basket along with innovation. These results could be important for policymaking at least in post pandemic regime. Sensitivity analysis has also been constructed to capture the extent of changes in trade–autarky profit gaps. This study builds on the verge of economic crisis linking to pandemic and international trade. JEL Codes: C70, D81, F11, L15","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74444248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-14DOI: 10.1177/00157325211057977
Phan Thanh Hoan, Duong Thi Dieu My
Vietnam is one of the top information and communication technologies (ICT) exporters globally, and the ICT products constitute nearly one-fifth of Vietnam’s total exports to the European Union (EU). This study empirically investigates the determinants of Vietnam’s ICT exports to the EU by applying the gravity model for trade with panel data from 2000 to 2019. Besides the traditional variables of the gravity model, we added gross capital formation, patent application and exchange rates as explanatory variables. The results show that among factors affecting Vietnam’s ICT export to the EU, market size, patent applications, and exchange rate are the most significant determinants. The article also suggests some policy implications for the development of ICT exports between the two parties. JEL Codes: F14, C2
{"title":"The Determinants of Vietnam’s Information and Communication Technologies Exports to the European Union","authors":"Phan Thanh Hoan, Duong Thi Dieu My","doi":"10.1177/00157325211057977","DOIUrl":"https://doi.org/10.1177/00157325211057977","url":null,"abstract":"Vietnam is one of the top information and communication technologies (ICT) exporters globally, and the ICT products constitute nearly one-fifth of Vietnam’s total exports to the European Union (EU). This study empirically investigates the determinants of Vietnam’s ICT exports to the EU by applying the gravity model for trade with panel data from 2000 to 2019. Besides the traditional variables of the gravity model, we added gross capital formation, patent application and exchange rates as explanatory variables. The results show that among factors affecting Vietnam’s ICT export to the EU, market size, patent applications, and exchange rate are the most significant determinants. The article also suggests some policy implications for the development of ICT exports between the two parties. JEL Codes: F14, C2","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77420555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-14DOI: 10.1177/00157325211060932
M. H. Heidary
Epidemic outbreaks are one of the important sources of the risk in the global supply chains. Before the COVID-19 pandemic, global industries that were unprepared for disruptions experienced a decline due to the pandemic. A global supply chain is a complex system set of dynamics that could be analyzed by the system dynamics approach. In this article, the impact of the recent pandemic on the global supply chain is simulated in different scenarios. A system dynamic model is developed to carry out the simulations. In order to consider the impact of the pandemic on the exogenous and endogenous variables, a force majeure factor is defined in the model. Global features considered in this article are the export and import operations, the exchange rate and the rate of tariff. In this article, a scenario analysis is performed to analyze two important factors of the global supply chain: force majeure factor and delivery delay. Results showed that improving the flexibility of production capacity is one of the important strategies that global supply chain managers should pursue. JEL Codes: F23, P45, C15, C63, E37, F17
{"title":"The Effect of COVID-19 Pandemic on the Global Supply Chain Operations: A System Dynamics Approach","authors":"M. H. Heidary","doi":"10.1177/00157325211060932","DOIUrl":"https://doi.org/10.1177/00157325211060932","url":null,"abstract":"Epidemic outbreaks are one of the important sources of the risk in the global supply chains. Before the COVID-19 pandemic, global industries that were unprepared for disruptions experienced a decline due to the pandemic. A global supply chain is a complex system set of dynamics that could be analyzed by the system dynamics approach. In this article, the impact of the recent pandemic on the global supply chain is simulated in different scenarios. A system dynamic model is developed to carry out the simulations. In order to consider the impact of the pandemic on the exogenous and endogenous variables, a force majeure factor is defined in the model. Global features considered in this article are the export and import operations, the exchange rate and the rate of tariff. In this article, a scenario analysis is performed to analyze two important factors of the global supply chain: force majeure factor and delivery delay. Results showed that improving the flexibility of production capacity is one of the important strategies that global supply chain managers should pursue. JEL Codes: F23, P45, C15, C63, E37, F17","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75727876","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-12DOI: 10.1177/00157325211050448
Camila do Carmo Hermida, A. M. A. D. Santos, M. Bittencourt
This article aims to investigate whether the international fragmentation of production and the global value chains (hereafter GVCs) participation affects the economic growth for a set of 40 advanced and emerging economies. It considers four aspects related to the type of participation and position in GVCs captured by different value-added measures: (a) vertical specialisation index; (b) GVC participation index; (c) GVC position index in low-tech sectors; and (d) GVC position index in high-tech sectors. A panel autoregressive distributed lag (PARDL) model is pioneeringly employed to capture the long-term relationship between economic growth and our four measures for annual value-added data from 1995 to 2011, provided by the World Input–Output Tables (WIOT). The main long-run results indicate that (a) higher levels of international fragmentation of production and GVCs’ participation ensure higher GDP per capita growth rates; (b) the fragmentation and GVCs’ participation are more important to GDP growth than the gross exports as a percentage of GDP; (c) GVCs’ participation index, which considers both the ‘forward’ and ‘backward’ participation, is less important than the vertical specialisation, measured by the foreign intermediate imports; and (d the countries engaged in upstream positions in low-technology GVCs were positively and significantly benefitted in terms of growth. JEL Codes: F14, F43
{"title":"Does International Fragmentation of Production and Global Value Chains Participation Affect the Long-run Economic Growth?","authors":"Camila do Carmo Hermida, A. M. A. D. Santos, M. Bittencourt","doi":"10.1177/00157325211050448","DOIUrl":"https://doi.org/10.1177/00157325211050448","url":null,"abstract":"This article aims to investigate whether the international fragmentation of production and the global value chains (hereafter GVCs) participation affects the economic growth for a set of 40 advanced and emerging economies. It considers four aspects related to the type of participation and position in GVCs captured by different value-added measures: (a) vertical specialisation index; (b) GVC participation index; (c) GVC position index in low-tech sectors; and (d) GVC position index in high-tech sectors. A panel autoregressive distributed lag (PARDL) model is pioneeringly employed to capture the long-term relationship between economic growth and our four measures for annual value-added data from 1995 to 2011, provided by the World Input–Output Tables (WIOT). The main long-run results indicate that (a) higher levels of international fragmentation of production and GVCs’ participation ensure higher GDP per capita growth rates; (b) the fragmentation and GVCs’ participation are more important to GDP growth than the gross exports as a percentage of GDP; (c) GVCs’ participation index, which considers both the ‘forward’ and ‘backward’ participation, is less important than the vertical specialisation, measured by the foreign intermediate imports; and (d the countries engaged in upstream positions in low-technology GVCs were positively and significantly benefitted in terms of growth. JEL Codes: F14, F43","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2022-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78319653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-25DOI: 10.1177/00157325211047001
Semih Karacan, Özgen Korkmaz
Turkey was subjected to a number of financial shocks after the liberalisation movements in the 1980s. The most devastating of them was the consecutive political and financial crises in late 2000 and early 2001. The absence of political stability and depreciated Turkish Lira devastated the markets. The Turkish government immediately acted against the collapsed economic system and introduced a radical Economic Stability Programme under the supervision of Kemal Dervis¸. The programme has restructured the banking and financial system and improved economic discipline. In this study, we aim to investigate the impacts of the 2001 crisis and the structural changes on Turkish exports. To this end, we estimate a one-way gravity model, using panel data belonging to Turkish exports to 135 World Trade Organization (WTO) member countries, over the period between 1981 and 2015. The augmented model controls for the inter/intra-industry exports, competitiveness, trade agreements, trade unions and additional demographics. We utilised Poisson pseudo-maximum-likelihood (PPML) estimator to account for unobservable time-invariant effects, zero trade, possible heteroscedasticity, and cross-correlation. The results reveals that Turkey has become a free market economy after the liberalisation movements in the early 1980s, and its exports are determined by the same indicators that affect other similar economies; on the other hand, the 2001 crisis has an immediate positive effect on exports through weak Turkish Lira, but this effect turns to negative in the following year. In addition, we find that structural changes in the economic system has a significant effect on exports and help to mitigate the trade-distorting effects of the global financial crisis in 2008. JEL Codes: C33, F13, F14
{"title":"Turkish Exports Before and After the 2001 Financial Crisis: A Panel Gravity Model","authors":"Semih Karacan, Özgen Korkmaz","doi":"10.1177/00157325211047001","DOIUrl":"https://doi.org/10.1177/00157325211047001","url":null,"abstract":"Turkey was subjected to a number of financial shocks after the liberalisation movements in the 1980s. The most devastating of them was the consecutive political and financial crises in late 2000 and early 2001. The absence of political stability and depreciated Turkish Lira devastated the markets. The Turkish government immediately acted against the collapsed economic system and introduced a radical Economic Stability Programme under the supervision of Kemal Dervis¸. The programme has restructured the banking and financial system and improved economic discipline. In this study, we aim to investigate the impacts of the 2001 crisis and the structural changes on Turkish exports. To this end, we estimate a one-way gravity model, using panel data belonging to Turkish exports to 135 World Trade Organization (WTO) member countries, over the period between 1981 and 2015. The augmented model controls for the inter/intra-industry exports, competitiveness, trade agreements, trade unions and additional demographics. We utilised Poisson pseudo-maximum-likelihood (PPML) estimator to account for unobservable time-invariant effects, zero trade, possible heteroscedasticity, and cross-correlation. The results reveals that Turkey has become a free market economy after the liberalisation movements in the early 1980s, and its exports are determined by the same indicators that affect other similar economies; on the other hand, the 2001 crisis has an immediate positive effect on exports through weak Turkish Lira, but this effect turns to negative in the following year. In addition, we find that structural changes in the economic system has a significant effect on exports and help to mitigate the trade-distorting effects of the global financial crisis in 2008. JEL Codes: C33, F13, F14","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2021-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77819734","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-06DOI: 10.1177/00157325211050763
Anwesha Basu
The present study attempts to quantify ex-ante the impact on trade flows, revenue and welfare of the India–EU FTA on India’s dairy sector. In light of the fact that the EU is the world’s largest exporter of dairy products and India’s dairy sector is highly protected, it is important to assess the potential impact that an FTA with EU can have on this sector. Using a partial equilibrium set-up, our simulation results reveal that the estimated increase in India’s imports of dairy products is mainly driven by trade creation rather than trade diversion, implying that the FTA does not promote inefficient dairy trade at the cost of other countries outside the trade bloc. We augment our analysis using the gravity model to estimate the potential increase in dairy sector imports due to trade liberalisation. PPML estimates suggest that a 10% decline in tariff rates leads to a 3.4% increase in the value of imports. While the estimated increase in dairy imports is significant, our analysis indicates that the increased value of imports, expressed as a fraction of India’s domestic output of dairy products, would still be less than 1%. JEL Codes: F13, F14, F17
{"title":"The India–EU FTA and Its Potential Impact on India’s Dairy Sector: A Quantitative Analysis","authors":"Anwesha Basu","doi":"10.1177/00157325211050763","DOIUrl":"https://doi.org/10.1177/00157325211050763","url":null,"abstract":"The present study attempts to quantify ex-ante the impact on trade flows, revenue and welfare of the India–EU FTA on India’s dairy sector. In light of the fact that the EU is the world’s largest exporter of dairy products and India’s dairy sector is highly protected, it is important to assess the potential impact that an FTA with EU can have on this sector. Using a partial equilibrium set-up, our simulation results reveal that the estimated increase in India’s imports of dairy products is mainly driven by trade creation rather than trade diversion, implying that the FTA does not promote inefficient dairy trade at the cost of other countries outside the trade bloc. We augment our analysis using the gravity model to estimate the potential increase in dairy sector imports due to trade liberalisation. PPML estimates suggest that a 10% decline in tariff rates leads to a 3.4% increase in the value of imports. While the estimated increase in dairy imports is significant, our analysis indicates that the increased value of imports, expressed as a fraction of India’s domestic output of dairy products, would still be less than 1%. JEL Codes: F13, F14, F17","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2021-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87952763","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-13DOI: 10.1177/00157325211048018
Moumita Basu, Rilina Basu, Ranjanendra Narayan Nag
Given the unforeseen and uncertain circumstances during the pandemic, the role of government expenditure becomes extremely relevant in sustaining lives and livelihoods of the masses. This brings forth public sector deficit as a key issue of macroeconomic policy debate. This article aims at investigating the effects of an unanticipated adverse shock like COVID-19, on the real value of public debt, in a small open economy, consisting of traded and non-traded sectors, along with proposed management of such crisis with fiscal and monetary expansion. The results of policy-induced and exogenous shocks depend on the difference in the speeds of adjustments in real exchange rate, interest rate and real value of debt, and the associated multitudes of cross effects. While an unanticipated adverse shock like COVID-19 causes contraction of both traded and non-traded sectors and reduces consumption expenditure, investment expenditure and level of employment and real value of aggregate income in the short run, fiscal expansion causes higher real value of debt and lower real exchange rate. JEL Codes: E12, E62, H63
{"title":"A Dependent Economy Model of Employment, Real Exchange Rate and Debt Dynamics: Towards an Understanding of Pandemic Crisis","authors":"Moumita Basu, Rilina Basu, Ranjanendra Narayan Nag","doi":"10.1177/00157325211048018","DOIUrl":"https://doi.org/10.1177/00157325211048018","url":null,"abstract":"Given the unforeseen and uncertain circumstances during the pandemic, the role of government expenditure becomes extremely relevant in sustaining lives and livelihoods of the masses. This brings forth public sector deficit as a key issue of macroeconomic policy debate. This article aims at investigating the effects of an unanticipated adverse shock like COVID-19, on the real value of public debt, in a small open economy, consisting of traded and non-traded sectors, along with proposed management of such crisis with fiscal and monetary expansion. The results of policy-induced and exogenous shocks depend on the difference in the speeds of adjustments in real exchange rate, interest rate and real value of debt, and the associated multitudes of cross effects. While an unanticipated adverse shock like COVID-19 causes contraction of both traded and non-traded sectors and reduces consumption expenditure, investment expenditure and level of employment and real value of aggregate income in the short run, fiscal expansion causes higher real value of debt and lower real exchange rate. JEL Codes: E12, E62, H63","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2021-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74010100","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-13DOI: 10.1177/00157325211045471
Thanh Dinh Su, C. Nguyen
This study examines the catalytic role of trade openness in the relationships between human capital and public spending and total factor productivity (TFP) growth in 44 developing countries over the 1980–2014 period. Applying various estimation techniques to deal with autocorrelation, heteroscedasticity and cross-section dependence, the study finds that (a) the effect of human capital on TFP is nonlinear, (b) government consumption positively affects TFP but military spending is a negative factor and (c) trade openness significantly improves the positive influences of these factors on TFP. The results imply the important role of trade liberalisation in productivity evolution in developing countries. JEL Codes: F43, H52, O47
{"title":"Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness","authors":"Thanh Dinh Su, C. Nguyen","doi":"10.1177/00157325211045471","DOIUrl":"https://doi.org/10.1177/00157325211045471","url":null,"abstract":"This study examines the catalytic role of trade openness in the relationships between human capital and public spending and total factor productivity (TFP) growth in 44 developing countries over the 1980–2014 period. Applying various estimation techniques to deal with autocorrelation, heteroscedasticity and cross-section dependence, the study finds that (a) the effect of human capital on TFP is nonlinear, (b) government consumption positively affects TFP but military spending is a negative factor and (c) trade openness significantly improves the positive influences of these factors on TFP. The results imply the important role of trade liberalisation in productivity evolution in developing countries. JEL Codes: F43, H52, O47","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2021-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79384869","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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