Pub Date : 2021-06-02DOI: 10.1080/08853908.2021.1929584
C. Nguyen, Nadia Doytch, Su Dinh Thanh, C. Schinckus
ABSTRACT This study examines the influence of institutions, the Internet, and mobile phone usage on African countries’ trade openness. Applying various estimations for a balanced panel of data for 47 African economies over the period of 2003 to 2017, our empirical analysis arrives at the following interesting conclusions. Improvement of the institutional framework has mixed impacts on the trade relationships of African countries within the continent. Notably, internet and mobile phone usage have greater impacts on trade openness in countries that have a better institutional framework.
{"title":"Do Institutions and Technologies Matter for Trade Openness? Empirical Evidence from African Countries","authors":"C. Nguyen, Nadia Doytch, Su Dinh Thanh, C. Schinckus","doi":"10.1080/08853908.2021.1929584","DOIUrl":"https://doi.org/10.1080/08853908.2021.1929584","url":null,"abstract":"ABSTRACT This study examines the influence of institutions, the Internet, and mobile phone usage on African countries’ trade openness. Applying various estimations for a balanced panel of data for 47 African economies over the period of 2003 to 2017, our empirical analysis arrives at the following interesting conclusions. Improvement of the institutional framework has mixed impacts on the trade relationships of African countries within the continent. Notably, internet and mobile phone usage have greater impacts on trade openness in countries that have a better institutional framework.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1929584","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41704236","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 : 2021-05-06DOI: 10.1080/08853908.2021.1885529
Sunanda Ghosh
ABSTRACT This article investigates how diversity in consumer tastes among potential customs union (CU) members influences delegation decisions between them in the context of CU formation. The model used involves a monopolist, situated in a nonmember country, which chooses the quality of a vertically differentiated good to supply to two potential CU members. Formation of a CU can be sustained only if the monopolist chooses to serve consumers with both low and high maximum willingness to pay in the potential CU members. Delegation decision in setting common external tariff depends on the degree of taste diversity and size of population in each member.
{"title":"Delegation in Customs Union under Taste Diversity","authors":"Sunanda Ghosh","doi":"10.1080/08853908.2021.1885529","DOIUrl":"https://doi.org/10.1080/08853908.2021.1885529","url":null,"abstract":"ABSTRACT This article investigates how diversity in consumer tastes among potential customs union (CU) members influences delegation decisions between them in the context of CU formation. The model used involves a monopolist, situated in a nonmember country, which chooses the quality of a vertically differentiated good to supply to two potential CU members. Formation of a CU can be sustained only if the monopolist chooses to serve consumers with both low and high maximum willingness to pay in the potential CU members. Delegation decision in setting common external tariff depends on the degree of taste diversity and size of population in each member.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1885529","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47520867","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 : 2021-05-04DOI: 10.1080/08853908.2020.1782287
L. Okafor
ABSTRACT This article estimates the effects of imported inputs, exporting, and two-way trade on productivity. This includes exploring the role of absorptive capacity in the underlying relationships using panel data from manufacturing firms in Ghana. The results show that the ability of firms that both export and import to enhance productivity contemporaneously in the short term depends critically on absorptive capacity as captured by the proportion of skilled workers. The ability of two-way traders to learn from prior exporting experience and assimilate R&D spillovers from prior use of imported inputs to enhance productivity in the short term depends on absorptive capacity.
{"title":"Exports, Imported Inputs, Two-way Trade, and Productivity: The Role of Absorptive Capacity","authors":"L. Okafor","doi":"10.1080/08853908.2020.1782287","DOIUrl":"https://doi.org/10.1080/08853908.2020.1782287","url":null,"abstract":"ABSTRACT This article estimates the effects of imported inputs, exporting, and two-way trade on productivity. This includes exploring the role of absorptive capacity in the underlying relationships using panel data from manufacturing firms in Ghana. The results show that the ability of firms that both export and import to enhance productivity contemporaneously in the short term depends critically on absorptive capacity as captured by the proportion of skilled workers. The ability of two-way traders to learn from prior exporting experience and assimilate R&D spillovers from prior use of imported inputs to enhance productivity in the short term depends on absorptive capacity.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2020.1782287","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45018385","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 : 2021-05-04DOI: 10.1080/08853908.2021.1890652
Pushpam Kumar, N. Sahu, Mohd Arshad Ansari
ABSTRACT This article highlights the per capita GDP of the exporter country and GDP of the importer country as major positive determinants of CSGs exports in India using the gravity model of trade. Besides, it is found that India has export potential in CSGs with Russia, Switzerland, Israel, Egypt, China, Mexico, Pakistan, Thailand, the Philippines, South Korea, France, Japan, Oman, Belgium, and Malaysia. The findings suggest that India can take advantage of climate variability by exporting CSGs to the world which will contribute to its economic growth and strengthen its adaptability potential to deal with the increasingly adverse effects of climate change.
{"title":"Export Potential of Climate Smart Goods in India: Evidence from the Poisson Pseudo Maximum Likelihood Estimator","authors":"Pushpam Kumar, N. Sahu, Mohd Arshad Ansari","doi":"10.1080/08853908.2021.1890652","DOIUrl":"https://doi.org/10.1080/08853908.2021.1890652","url":null,"abstract":"ABSTRACT This article highlights the per capita GDP of the exporter country and GDP of the importer country as major positive determinants of CSGs exports in India using the gravity model of trade. Besides, it is found that India has export potential in CSGs with Russia, Switzerland, Israel, Egypt, China, Mexico, Pakistan, Thailand, the Philippines, South Korea, France, Japan, Oman, Belgium, and Malaysia. The findings suggest that India can take advantage of climate variability by exporting CSGs to the world which will contribute to its economic growth and strengthen its adaptability potential to deal with the increasingly adverse effects of climate change.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1890652","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47217167","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 : 2021-05-04DOI: 10.1080/08853908.2021.1908686
G. Clarke
Dear Readers, Welcome to the third issue of The International Trade Journal (ITJ)’s thirtyfifth volume. The articles in this issue look at different aspects of exporting. They include studies looking at how manufacturing exports affect service export diversification, how export diversification affects growth, how importing and exporting affect firm productivity, and India’s exports of climate smart goods. The first article in this issue, by Sèna Kimm Gnangnon, looks at the relationship between manufacturing exports and service export diversification. The study finds that service exports are more diversified in countries where manufacturing exports make up a large share of merchandise exports. The effect is particularly large in less developed economies. The second article, by Sinesipho Siswana and Andrew Phiri, looks at the effect of export diversification on growth in Brazil, Russia, India, China, and South Africa. Using country-level data from 1995 to 2007, they find a negative long-run relationship between export diversification and growth in these countries. They did find some differences between countries with a positive cross-sectional relationship for China and India, but a negative relationship for Russia and South Africa. The third article, by Luke Emeka Okafor, looks at the ability of Ghanaian firms to improve their productivity by exporting and using imported inputs. The study finds that absorptive capacity, which is measured using skilled workers as a share of the workforce, affects firms’ ability to benefit from using imported inputs. For firms that import and export simultaneously, imported inputs improve productivity only when the firms have sufficient absorptive capacity. The final article in this issue, by Pushp Kumar, Naresh Chandra Sahu, and Mohd Arshad Ansari, looks at Indian exports of climate smart goods. The authors estimate a gravity model of India’s exports of these goods to 39 other countries. The authors then calculate the residuals and use them to assess the potential for greater exports to these countries. They identify 15 countries with the greatest potential, including seven countries in Asia.
{"title":"From the Editor","authors":"G. Clarke","doi":"10.1080/08853908.2021.1908686","DOIUrl":"https://doi.org/10.1080/08853908.2021.1908686","url":null,"abstract":"Dear Readers, Welcome to the third issue of The International Trade Journal (ITJ)’s thirtyfifth volume. The articles in this issue look at different aspects of exporting. They include studies looking at how manufacturing exports affect service export diversification, how export diversification affects growth, how importing and exporting affect firm productivity, and India’s exports of climate smart goods. The first article in this issue, by Sèna Kimm Gnangnon, looks at the relationship between manufacturing exports and service export diversification. The study finds that service exports are more diversified in countries where manufacturing exports make up a large share of merchandise exports. The effect is particularly large in less developed economies. The second article, by Sinesipho Siswana and Andrew Phiri, looks at the effect of export diversification on growth in Brazil, Russia, India, China, and South Africa. Using country-level data from 1995 to 2007, they find a negative long-run relationship between export diversification and growth in these countries. They did find some differences between countries with a positive cross-sectional relationship for China and India, but a negative relationship for Russia and South Africa. The third article, by Luke Emeka Okafor, looks at the ability of Ghanaian firms to improve their productivity by exporting and using imported inputs. The study finds that absorptive capacity, which is measured using skilled workers as a share of the workforce, affects firms’ ability to benefit from using imported inputs. For firms that import and export simultaneously, imported inputs improve productivity only when the firms have sufficient absorptive capacity. The final article in this issue, by Pushp Kumar, Naresh Chandra Sahu, and Mohd Arshad Ansari, looks at Indian exports of climate smart goods. The authors estimate a gravity model of India’s exports of these goods to 39 other countries. The authors then calculate the residuals and use them to assess the potential for greater exports to these countries. They identify 15 countries with the greatest potential, including seven countries in Asia.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1908686","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43017634","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 : 2021-04-13DOI: 10.1080/08853908.2021.1913263
Sarita D. Jackson
ABSTRACT Business-state relations literature on developing countries focuses on the characteristics of an industry to determine its influence on the state but pays minimal attention to the process associated with industry influence. This study finds that industry leverage varies within the agricultural sector because of each industry’s long-term relationship with the state, information capacity, and significance to the local economy, as in the case of some Dominican agricultural producers during the U.S.-Dominican agricultural trade negotiations.
{"title":"U.S.-Dominican Agricultural Trade Negotiations and Intra-sectoral Leverage","authors":"Sarita D. Jackson","doi":"10.1080/08853908.2021.1913263","DOIUrl":"https://doi.org/10.1080/08853908.2021.1913263","url":null,"abstract":"ABSTRACT Business-state relations literature on developing countries focuses on the characteristics of an industry to determine its influence on the state but pays minimal attention to the process associated with industry influence. This study finds that industry leverage varies within the agricultural sector because of each industry’s long-term relationship with the state, information capacity, and significance to the local economy, as in the case of some Dominican agricultural producers during the U.S.-Dominican agricultural trade negotiations.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1913263","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43446530","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 : 2021-04-08DOI: 10.1080/08853908.2021.1905115
H. Hamdi, A. Hakimi
ABSTRACT This article analyzes whether trade openness and foreign direct investment are driving factors for human development in the Middle East and North African region. We used data of 13 MENA countries over the period of 2002 to 2015. We employed the panel cointegration analysis and vector error correction model to test the short- and long-run relationships as well as the causality between the variables. Findings indicate that in the long run the coefficients of trade openness and foreign direct investment are statistically significant. However, in the short run, the results show that only foreign direct investment and domestic investment exert a significant impact on human development.
{"title":"Trade Openness, Foreign Direct Investment, and Human Development: A Panel Cointegration Analysis for MENA Countries","authors":"H. Hamdi, A. Hakimi","doi":"10.1080/08853908.2021.1905115","DOIUrl":"https://doi.org/10.1080/08853908.2021.1905115","url":null,"abstract":"ABSTRACT This article analyzes whether trade openness and foreign direct investment are driving factors for human development in the Middle East and North African region. We used data of 13 MENA countries over the period of 2002 to 2015. We employed the panel cointegration analysis and vector error correction model to test the short- and long-run relationships as well as the causality between the variables. Findings indicate that in the long run the coefficients of trade openness and foreign direct investment are statistically significant. However, in the short run, the results show that only foreign direct investment and domestic investment exert a significant impact on human development.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1905115","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42862116","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 : 2021-04-06DOI: 10.1080/08853908.2021.1907262
L. Pacheco, A. Matos
ABSTRACT This article studies whether export supporting activities developed by Portuguese diplomatic representations in the last decade have had any impact on Portugal’s international trade. It used data for 187 destination countries, for the period of 2008 to 2017, controlling for other determinants of trade through a gravity model. Complementing the econometric analysis of the macro data, a survey was applied to 238 Portuguese exporting firms. The results imply a less relevant role for embassies and consulates in export promotion and facilitation. These results highlight the necessity to change the way that national diplomatic representations interact with exporting firms, in particular SMEs.
{"title":"Foreign Presence and Export Performance: The Role of Portuguese Commercial Diplomacy","authors":"L. Pacheco, A. Matos","doi":"10.1080/08853908.2021.1907262","DOIUrl":"https://doi.org/10.1080/08853908.2021.1907262","url":null,"abstract":"ABSTRACT This article studies whether export supporting activities developed by Portuguese diplomatic representations in the last decade have had any impact on Portugal’s international trade. It used data for 187 destination countries, for the period of 2008 to 2017, controlling for other determinants of trade through a gravity model. Complementing the econometric analysis of the macro data, a survey was applied to 238 Portuguese exporting firms. The results imply a less relevant role for embassies and consulates in export promotion and facilitation. These results highlight the necessity to change the way that national diplomatic representations interact with exporting firms, in particular SMEs.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1907262","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43717288","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 : 2021-04-05DOI: 10.1080/08853908.2021.1909514
Rusty V. Karst, A. Johnson
ABSTRACT While the influence of national institutions is well-documented, we theorize and investigate how sub-national institutions affect localization of foreign direct investment into a sub-national geographic area. Specifically, we examine the effect of county-level political ideology and party majority affiliation in the United States on inward foreign direct investment through foreign-sourced greenfield start-ups in that county. As predicted, in examination of 2,978 counties (94.7% of all US counties), the dichotomous majority party affiliation (Republican versus Democrat) differentially influenced foreign-sourced greenfields. Significantly decreased levels of foreign-sourced greenfields were experienced in counties during a Republican majority relative to Democratic, all else being held equal.
{"title":"Sub-national Institutions and Inward Foreign Direct Investment: Effects of Political Party Pendulum Swings","authors":"Rusty V. Karst, A. Johnson","doi":"10.1080/08853908.2021.1909514","DOIUrl":"https://doi.org/10.1080/08853908.2021.1909514","url":null,"abstract":"ABSTRACT While the influence of national institutions is well-documented, we theorize and investigate how sub-national institutions affect localization of foreign direct investment into a sub-national geographic area. Specifically, we examine the effect of county-level political ideology and party majority affiliation in the United States on inward foreign direct investment through foreign-sourced greenfield start-ups in that county. As predicted, in examination of 2,978 counties (94.7% of all US counties), the dichotomous majority party affiliation (Republican versus Democrat) differentially influenced foreign-sourced greenfields. Significantly decreased levels of foreign-sourced greenfields were experienced in counties during a Republican majority relative to Democratic, all else being held equal.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1909514","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44943515","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 : 2021-04-02DOI: 10.1080/08853908.2021.1887781
David A. Riker
ABSTRACT We develop a model for ex-ante analysis of the economic effects of provisions of international trade agreements that protect and enforce intellectual property rights (IPR). The model focuses on the incentive compatibility of enforcement in the implementing country. Decisions to enforce IPR and the resulting effects of trade agreements on prices and the profits of IP originators depend on the price responsiveness of demand, market size, relative cost competitiveness of the IP owner, costs of enforcing IPR, regulatory price caps in the market, the political economy weight assigned to repatriated monopoly profits, and the costs and productivity of efforts to innovate.
{"title":"The Enforcement of IP-Protecting Trade Agreements: A Theory Incorporating Mechanism Design","authors":"David A. Riker","doi":"10.1080/08853908.2021.1887781","DOIUrl":"https://doi.org/10.1080/08853908.2021.1887781","url":null,"abstract":"ABSTRACT We develop a model for ex-ante analysis of the economic effects of provisions of international trade agreements that protect and enforce intellectual property rights (IPR). The model focuses on the incentive compatibility of enforcement in the implementing country. Decisions to enforce IPR and the resulting effects of trade agreements on prices and the profits of IP originators depend on the price responsiveness of demand, market size, relative cost competitiveness of the IP owner, costs of enforcing IPR, regulatory price caps in the market, the political economy weight assigned to repatriated monopoly profits, and the costs and productivity of efforts to innovate.","PeriodicalId":35638,"journal":{"name":"International Trade Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/08853908.2021.1887781","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"59714517","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}