Pub Date : 2022-02-27DOI: 10.1080/08853908.2022.2045119
G. Clarke
Dear Readers, Welcome to the second issue of The International Trade Journal (ITJ)’s thirty-sixth volume. The articles in this issue focus on trade policy; the first two studying trade facilitation and the last two focusing on other policies. The first article looks at trade facilitation and foreign direct investment (FDI) in Africa. The second article also examines trade facilitation using a theoretical model. The third article presents a game theoretical model of customs unions. The final article studies the role that commercial diplomacy plays in encouraging trade. The first article in this issue, by Ridwan Lanre Ibrahim and Kazeem Bello Ajide, looks at whether improving trade facilitation could increase FDI into Africa. Using data from 26 sub-Saharan African countries, the authors find that reducing the time and cost of importing and exporting could increase FDI. They note that given that the cost of importing and exporting is particularly high in Africa, the benefits of improving trade facilitation through steps such as adopting electronic procedures or adopting the World Customs Organization’s single-window system could benefit the region greatly. The second article, by Nasreen Nawaz, also looks at trade facilitation. The study sets up a theoretical model with a foreign and a domestic producer, a middleman who sells the product to consumers, utility maximizing consumers, and a government that formulates the trade facilitation policy. Changes in trade facilitation policy affect the foreign producer’s costs and, therefore, imports. This pushes the market away from its equilibrium, where it remains until the price reaches its new equilibrium level. During the transition to the new equilibrium, there are efficiency losses. The article then derives the optimal trade facilitation policy to minimize the losses during the transition. The third article, by Sunandan Ghosh, looks at whether customs unions can form when consumers have different tastes for imported goods. Differences in taste diversity between countries in a customs union will make forming the union more complicated than forming a free-trade area because customs union members need to set common external tariffs. Ghosh sets up a model where a foreign monopolist chooses the quality of a single differentiated good to export to the customs union. Ghosh then shows that customs unions can form but will only do so when conditions related to taste diversity and relative
尊敬的读者:欢迎阅读《国际贸易杂志》(ITJ)第36卷第2期。这期的文章侧重于贸易政策;前两篇研究贸易便利化，后两篇关注其他政策。第一篇文章着眼于非洲的贸易便利化和外国直接投资(FDI)。第二篇文章也用理论模型考察了贸易便利化。第三篇文章提出了关税同盟的博弈论模型。最后研究了商业外交在促进贸易中的作用。本期的第一篇文章由Ridwan Lanre Ibrahim和Kazeem Bello Ajide撰写，探讨了改善贸易便利化是否可以增加进入非洲的外国直接投资。作者利用来自26个撒哈拉以南非洲国家的数据发现，减少进出口的时间和成本可以增加外国直接投资。他们指出，鉴于非洲的进出口成本特别高，通过采用电子程序或采用世界海关组织的单一窗口系统等步骤改善贸易便利化的好处可能会使该地区大大受益。纳瓦兹(Nasreen Nawaz)的第二篇文章也着眼于贸易便利化。本文建立了一个国内外生产商、一个向消费者销售产品的中间商、一个效用最大化的消费者、一个制定贸易便利化政策的政府的理论模型。贸易便利化政策的变化影响到外国生产商的成本，因此影响到进口。这使得市场远离均衡，直到价格达到新的均衡水平。在向新平衡过渡的过程中，存在效率损失。在此基础上推导出最优的贸易便利化政策，以最大限度地减少转型过程中的损失。第三篇文章由Sunandan Ghosh撰写，研究了当消费者对进口商品的口味不同时，是否可以形成关税同盟。关税同盟成员国之间品味多样性的差异将使组建关税同盟比组建自由贸易区更为复杂，因为关税同盟成员国需要设定共同的对外关税。Ghosh建立了一个模型，在这个模型中，外国垄断者选择一种差异化商品的质量出口到关税同盟。Ghosh随后表明，关税同盟可以形成，但只有在与口味多样性和相对性相关的条件下才会形成
{"title":"From the Editor","authors":"G. Clarke","doi":"10.1080/08853908.2022.2045119","DOIUrl":"https://doi.org/10.1080/08853908.2022.2045119","url":null,"abstract":"Dear Readers, Welcome to the second issue of The International Trade Journal (ITJ)’s thirty-sixth volume. The articles in this issue focus on trade policy; the first two studying trade facilitation and the last two focusing on other policies. The first article looks at trade facilitation and foreign direct investment (FDI) in Africa. The second article also examines trade facilitation using a theoretical model. The third article presents a game theoretical model of customs unions. The final article studies the role that commercial diplomacy plays in encouraging trade. The first article in this issue, by Ridwan Lanre Ibrahim and Kazeem Bello Ajide, looks at whether improving trade facilitation could increase FDI into Africa. Using data from 26 sub-Saharan African countries, the authors find that reducing the time and cost of importing and exporting could increase FDI. They note that given that the cost of importing and exporting is particularly high in Africa, the benefits of improving trade facilitation through steps such as adopting electronic procedures or adopting the World Customs Organization’s single-window system could benefit the region greatly. The second article, by Nasreen Nawaz, also looks at trade facilitation. The study sets up a theoretical model with a foreign and a domestic producer, a middleman who sells the product to consumers, utility maximizing consumers, and a government that formulates the trade facilitation policy. Changes in trade facilitation policy affect the foreign producer’s costs and, therefore, imports. This pushes the market away from its equilibrium, where it remains until the price reaches its new equilibrium level. During the transition to the new equilibrium, there are efficiency losses. The article then derives the optimal trade facilitation policy to minimize the losses during the transition. The third article, by Sunandan Ghosh, looks at whether customs unions can form when consumers have different tastes for imported goods. Differences in taste diversity between countries in a customs union will make forming the union more complicated than forming a free-trade area because customs union members need to set common external tariffs. Ghosh sets up a model where a foreign monopolist chooses the quality of a single differentiated good to export to the customs union. Ghosh then shows that customs unions can form but will only do so when conditions related to taste diversity and relative","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43311119","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 : 2022-02-21DOI: 10.1080/08853908.2022.2041508
Surendar Singh, Ram Singh
ABSTRACT The world economy is witnessing the rapid digitization of global production, trade, and consumption of goods and services, which is significantly impacting economic activities in both developing and least developed countries. In this article, we examine and review the evolving framework of the national e-commerce policy in India and map digital policies in the broader contours of the industrial policy framework. Findings of this article show that interventionist policies such as localization of data and restrictions on cross-border data flows are vital for building domestic digital infrastructure, firms, platforms, and capabilities.
{"title":"Economic Imperatives of Evolving National Digital Policy: A Call for a Modern Industrial Policy Framework in India","authors":"Surendar Singh, Ram Singh","doi":"10.1080/08853908.2022.2041508","DOIUrl":"https://doi.org/10.1080/08853908.2022.2041508","url":null,"abstract":"ABSTRACT The world economy is witnessing the rapid digitization of global production, trade, and consumption of goods and services, which is significantly impacting economic activities in both developing and least developed countries. In this article, we examine and review the evolving framework of the national e-commerce policy in India and map digital policies in the broader contours of the industrial policy framework. Findings of this article show that interventionist policies such as localization of data and restrictions on cross-border data flows are vital for building domestic digital infrastructure, firms, platforms, and capabilities.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46595149","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 : 2022-02-18DOI: 10.1080/08853908.2022.2041509
Kyle Van Rensselaer
ABSTRACT In theory, a country will impose tariff barriers to protect the domestic industries and firms that are less competitive relative to foreign imports. This study investigates whether revealed comparative advantage (RCA) is related to tariff protection in the three large North American economies. I find little evidence for the hypothesis that higher RCA values always correspond to lower tariff levels. The effects of RCA on tariffs are heterogeneous across sectors; consumer goods are likelier to see higher tariffs as RCA increases than agricultural or other goods. These results challenge the theory that export-competitive goods will necessarily receive less tariff protection.
{"title":"Protection for the Neediest? Comparative Advantage, Tariffs, and Political Economy Dynamics under NAFTA","authors":"Kyle Van Rensselaer","doi":"10.1080/08853908.2022.2041509","DOIUrl":"https://doi.org/10.1080/08853908.2022.2041509","url":null,"abstract":"ABSTRACT In theory, a country will impose tariff barriers to protect the domestic industries and firms that are less competitive relative to foreign imports. This study investigates whether revealed comparative advantage (RCA) is related to tariff protection in the three large North American economies. I find little evidence for the hypothesis that higher RCA values always correspond to lower tariff levels. The effects of RCA on tariffs are heterogeneous across sectors; consumer goods are likelier to see higher tariffs as RCA increases than agricultural or other goods. These results challenge the theory that export-competitive goods will necessarily receive less tariff protection.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48631523","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 : 2022-02-17DOI: 10.1080/08853908.2022.2030263
G. Clarke
Before the 2008–2009 Great Recession, Europe and North America enjoyed over 20 years of economic stability. Economists called this period the “Great Moderation.” Inflation was low and stable, interest rates fell, and the business cycle seemed muted, especially when compared with the volatile 1960s and 1970s. Even after the Great Recession, inflation and interest rates remained low. Although economists disagree about why these years were tranquil, many credit independent central banks. If wise central bankers are responsible, we could rely on them to keep inflation subdued and interest rates low through any approaching storms. If not, and the stability’s true causes change, inflation and interest rates might skyrocket. In their fascinating book, The Great Demographic Reversal: Aging Societies, Waning Inequality, and an Inflation Revival, Goodhart and Pradhan question the conventional wisdom about the recent macroeconomic stability. They argue favorable demographics, not wise central bankers, best explain this period’s stability. Further, they contend demographics will be less auspicious in the coming decades. They predict this reversal will mean growth slows, inflation rises, debt explodes, and nominal – and possibly real – interest rates climb. The authors argue two phenomena helped tame inflation and keep interest rates low during this period: China’s reentry into the global economy and the developed world’s falling dependency ratio. China’s reemergence, which started in 1978 when it created its first special economic zones and reformed agriculture, helped Europe and North America in two ways. First, it provided the world with many unskilled and semi-skilled workers. Although this harmed European and American manufacturing, Goodhart and Pradhan argue it also diminished workers’ negotiating power and lowered the natural rate of unemployment (NRU). This, in turn, moderated inflation. Second, China’s high savings rate – combined with a fixed exchange rate and financial repression – kept interest rates low as China invested its foreign currency reserves in United States (US) Treasuries and other foreign assets. The industrialized world’s declining dependency ratio – the ratio of the elderly and children to the working-age population – also restrained inflation and interest rates. Because women started having fewer children in the 1960s in the US and most other developed countries, the dependency ratio remained low until the early 2000s despite rising life expectancy. Goodhart and Pradhan argue the low dependency ratio subdued inflation and interest rates because workers save more than dependents. Further, the postwar baby-booms’ boost to the labor force also kept the NRU low.
{"title":"The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival","authors":"G. Clarke","doi":"10.1080/08853908.2022.2030263","DOIUrl":"https://doi.org/10.1080/08853908.2022.2030263","url":null,"abstract":"Before the 2008–2009 Great Recession, Europe and North America enjoyed over 20 years of economic stability. Economists called this period the “Great Moderation.” Inflation was low and stable, interest rates fell, and the business cycle seemed muted, especially when compared with the volatile 1960s and 1970s. Even after the Great Recession, inflation and interest rates remained low. Although economists disagree about why these years were tranquil, many credit independent central banks. If wise central bankers are responsible, we could rely on them to keep inflation subdued and interest rates low through any approaching storms. If not, and the stability’s true causes change, inflation and interest rates might skyrocket. In their fascinating book, The Great Demographic Reversal: Aging Societies, Waning Inequality, and an Inflation Revival, Goodhart and Pradhan question the conventional wisdom about the recent macroeconomic stability. They argue favorable demographics, not wise central bankers, best explain this period’s stability. Further, they contend demographics will be less auspicious in the coming decades. They predict this reversal will mean growth slows, inflation rises, debt explodes, and nominal – and possibly real – interest rates climb. The authors argue two phenomena helped tame inflation and keep interest rates low during this period: China’s reentry into the global economy and the developed world’s falling dependency ratio. China’s reemergence, which started in 1978 when it created its first special economic zones and reformed agriculture, helped Europe and North America in two ways. First, it provided the world with many unskilled and semi-skilled workers. Although this harmed European and American manufacturing, Goodhart and Pradhan argue it also diminished workers’ negotiating power and lowered the natural rate of unemployment (NRU). This, in turn, moderated inflation. Second, China’s high savings rate – combined with a fixed exchange rate and financial repression – kept interest rates low as China invested its foreign currency reserves in United States (US) Treasuries and other foreign assets. The industrialized world’s declining dependency ratio – the ratio of the elderly and children to the working-age population – also restrained inflation and interest rates. Because women started having fewer children in the 1960s in the US and most other developed countries, the dependency ratio remained low until the early 2000s despite rising life expectancy. Goodhart and Pradhan argue the low dependency ratio subdued inflation and interest rates because workers save more than dependents. Further, the postwar baby-booms’ boost to the labor force also kept the NRU low.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47549123","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 : 2022-02-10DOI: 10.1080/08853908.2022.2032487
Tanveer Ahmad Khan
ABSTRACT Employing a difference-in-differences estimation technique on firm and product level data on Indian textile and clothing exports to the US over 2000 to 2010, we find that MFA quota removal was associated with a rise in export revenues, sales, and total assets of constrained products relative to unconstrained products. We find that the rise in export revenue was due to the rise in export quantity rather than the rise in prices. We also find that trade liberalization in the textile sector was associated with a fall in the export value and prices of Indian products in the US market.
{"title":"Trade Restrictions, Competition, and Firm Behavior: India’s Experience in the US Market in the Post-MFA Era","authors":"Tanveer Ahmad Khan","doi":"10.1080/08853908.2022.2032487","DOIUrl":"https://doi.org/10.1080/08853908.2022.2032487","url":null,"abstract":"ABSTRACT Employing a difference-in-differences estimation technique on firm and product level data on Indian textile and clothing exports to the US over 2000 to 2010, we find that MFA quota removal was associated with a rise in export revenues, sales, and total assets of constrained products relative to unconstrained products. We find that the rise in export revenue was due to the rise in export quantity rather than the rise in prices. We also find that trade liberalization in the textile sector was associated with a fall in the export value and prices of Indian products in the US market.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41642100","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 : 2022-02-09DOI: 10.1080/08853908.2022.2036273
Luis Landazury, Elkyn Lugo Arias, Heidy Rico, Mario de la Puente, Diana Cifuentes
ABSTRACT This research article analyzed the Colombian palm oil sector business model to understand its competitive advantages in the markets where they operate. A Cronbach alpha and the analysis of variance (ANOVA) were applied in the independent variables organizational culture and innovation, innovation process, methodologies and tools, and partner ecosystems to determine if there were statistically significant differences between them. It was found that palm oil exporting companies do not have a formal innovation system. It is necessary to create procedures that potentiate the innovation system within it through the human capital that sustains it, given its training and experience capacities.
{"title":"Diagnosis and Proposal of a Management and Innovation Model in Palm Oil Exporting Companies: The Case of Colombia","authors":"Luis Landazury, Elkyn Lugo Arias, Heidy Rico, Mario de la Puente, Diana Cifuentes","doi":"10.1080/08853908.2022.2036273","DOIUrl":"https://doi.org/10.1080/08853908.2022.2036273","url":null,"abstract":"ABSTRACT This research article analyzed the Colombian palm oil sector business model to understand its competitive advantages in the markets where they operate. A Cronbach alpha and the analysis of variance (ANOVA) were applied in the independent variables organizational culture and innovation, innovation process, methodologies and tools, and partner ecosystems to determine if there were statistically significant differences between them. It was found that palm oil exporting companies do not have a formal innovation system. It is necessary to create procedures that potentiate the innovation system within it through the human capital that sustains it, given its training and experience capacities.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44134273","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: 10.1080/08853908.2021.2015488
Simon Abendin, Pingfang Duan, Etse Nkukpornu
ABSTRACT This article investigates the effect of digitalization on bilateral trade in the Economic Community of West African States (ECOWAS). We estimate the augmented gravity model to capture the effect of digitalization on bilateral trade using the POLS, GLS, and PPML estimators over 2000 to 2018. We find a significant positive effect of digitalization on bilateral trade for the ECOWAS region. The policy implication of this article is that bilateral trade in the region depends on digitalization. Therefore, economic agents’ efforts in the ECOWAS region should aim at policies that promote digitalization to enhance bilateral trade.
{"title":"Bilateral Trade in West Africa: Does Digitalization Matter?","authors":"Simon Abendin, Pingfang Duan, Etse Nkukpornu","doi":"10.1080/08853908.2021.2015488","DOIUrl":"https://doi.org/10.1080/08853908.2021.2015488","url":null,"abstract":"ABSTRACT This article investigates the effect of digitalization on bilateral trade in the Economic Community of West African States (ECOWAS). We estimate the augmented gravity model to capture the effect of digitalization on bilateral trade using the POLS, GLS, and PPML estimators over 2000 to 2018. We find a significant positive effect of digitalization on bilateral trade for the ECOWAS region. The policy implication of this article is that bilateral trade in the region depends on digitalization. Therefore, economic agents’ efforts in the ECOWAS region should aim at policies that promote digitalization to enhance bilateral trade.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48902282","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 : 2022-01-02DOI: 10.1080/08853908.2021.1999870
Mohammad N. Islam, Md Khokan Bepari, S. Nahar
ABSTRACT We examine the association between asset liquidity and trade credit. We expect that firms having more asset liquidity prefer to use less trade credit. Using international data of 69 countries, we find that firms having more asset liquidity prefer to use less trade credit. Our results are robust to a wide variety of fixed effects, using change regression, propensity score matching, excluding outliers, and using alternative measures of trade credit and asset liquidity.
{"title":"Asset Liquidity and Trade Credit: International Evidence","authors":"Mohammad N. Islam, Md Khokan Bepari, S. Nahar","doi":"10.1080/08853908.2021.1999870","DOIUrl":"https://doi.org/10.1080/08853908.2021.1999870","url":null,"abstract":"ABSTRACT We examine the association between asset liquidity and trade credit. We expect that firms having more asset liquidity prefer to use less trade credit. Using international data of 69 countries, we find that firms having more asset liquidity prefer to use less trade credit. Our results are robust to a wide variety of fixed effects, using change regression, propensity score matching, excluding outliers, and using alternative measures of trade credit and asset liquidity.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42713060","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 : 2021-12-29DOI: 10.1080/08853908.2021.2007180
Yash Parakh, Anwesha Aditya
ABSTRACT This article examines the determinants of trade agreements. Apart from the standard economic variables like market size, factor endowment difference, and distance, we incorporate socio-cultural and political factors like common language, colonial heritage, political regime, and bilateral relationships. We perform a qualitative comparative analysis, which gives joint causation. The panel probit regression for 163 countries during 2000 to 2014 reveals that countries joined trade agreements not merely for economic reasons but for political and socio-cultural reasons. Only colonial heritage acts as an opposing force. Detailed knowledge of the determinants of trade agreements can help to form successful bilateral trade relations.
{"title":"Analyzing the Determinants of Trade Agreements: A Cross Country Socio-Economic-Political Analysis","authors":"Yash Parakh, Anwesha Aditya","doi":"10.1080/08853908.2021.2007180","DOIUrl":"https://doi.org/10.1080/08853908.2021.2007180","url":null,"abstract":"ABSTRACT This article examines the determinants of trade agreements. Apart from the standard economic variables like market size, factor endowment difference, and distance, we incorporate socio-cultural and political factors like common language, colonial heritage, political regime, and bilateral relationships. We perform a qualitative comparative analysis, which gives joint causation. The panel probit regression for 163 countries during 2000 to 2014 reveals that countries joined trade agreements not merely for economic reasons but for political and socio-cultural reasons. Only colonial heritage acts as an opposing force. Detailed knowledge of the determinants of trade agreements can help to form successful bilateral trade relations.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46232839","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 : 2021-12-23DOI: 10.1080/08853908.2021.2003727
R. Hosein, Leera Boodram, G. Saridakis
ABSTRACT This article examines trade complementarity as a basis for the natural trading partner hypothesis from a sectoral view of trade for the petroleum-based economy of Trinidad and Tobago (T&T) over the period of 2000 to 2015. Gravity modeling and an Intercountries Trade Force (ITF) model are adopted to determine the nature of sectoral trade complementarities in T&T over time. The results shows that trade complementarity and manufacturing trade complementarity significantly contribute to trade for T&T, which is important when choosing trade partners. This provides incentives for manufacturing which can dampen the effect of the Dutch Disease.
{"title":"Trade Complementarity as a Basis for the Natural Trading Partner Hypothesis: A Panel Data Study for Trinidad and Tobago","authors":"R. Hosein, Leera Boodram, G. Saridakis","doi":"10.1080/08853908.2021.2003727","DOIUrl":"https://doi.org/10.1080/08853908.2021.2003727","url":null,"abstract":"ABSTRACT This article examines trade complementarity as a basis for the natural trading partner hypothesis from a sectoral view of trade for the petroleum-based economy of Trinidad and Tobago (T&T) over the period of 2000 to 2015. Gravity modeling and an Intercountries Trade Force (ITF) model are adopted to determine the nature of sectoral trade complementarities in T&T over time. The results shows that trade complementarity and manufacturing trade complementarity significantly contribute to trade for T&T, which is important when choosing trade partners. This provides incentives for manufacturing which can dampen the effect of the Dutch Disease.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47790080","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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