scholarly journals Liberalizing Foreign Trade in a Socialist Economy: The Problem of Negative Value Added

1993 ◽  
pp. 125-147 ◽  
Author(s):  
Ronald I. McKinnon
Keyword(s):  
Foreign Trade ◽  
Value Added ◽  
Socialist Economy

scholarly journals FOREIGN TRADE RELATIONS OF UKRAINE AND CHINA: CHALLENGES FOR THE NATIONAL ECONOMIC INTERESTS

2021 ◽  
Author(s):  
Yevhen Ivanov ◽  
Keyword(s):  
Foreign Trade ◽  
Consumer Goods ◽  
Bilateral Trade ◽  
Value Added ◽  
Developed Countries ◽  
Raw Material ◽  
Successful Implementation ◽  
Electrical Machinery ◽  
Association Agreement ◽  
The Eu

The article looks into key challenges for Ukrainian economy caused by foreign trade intensification with China in 2020 when Ukraine’s exports to PRC increased by 98 per cent. The dynamics and main structural shifts in the UA-CN trade are analyzed. The structure of bilateral trade flows between the parties by degree of processing and value added is explored. It is revealed that Ukraine’s exports to China consists predominantly from raw materials and products of primary processing: mineral products (iron ore), cereals (maize), sunflower oil and its residues, ferrous metals, etc. The imports from China to Ukraine consists mainly from electrical machinery, mechanical appliances, articles of apparel, chemical products, iron and steel, etc. Comparative analysis of the commodity structure of Ukraine’s exports to PRC and to the EU is conducted. The analysis shows that, despite dominance of traditional and low value added goods in Ukrainian overall exports, the share of sophisticated manufactured goods in exports to the EU is much larger than in exports to China. It is substantiated that trade with China largely determines the raw material orientation of Ukraine's international specialization, while exports to developed countries are characterized by a relatively higher share of intermediate and consumer goods. To increase the efficiency of Ukraine’s foreign trade, it is considered that the best option is to focus on reducing dependence on imports from China by developing domestic production of appropriate consumer goods and increasing export flows to developed countries. The expediency of Ukraine's refusal to participate in the New Silk Road project is argued in favor of using the benefits of nearshoring strategy, which opens the opportunity to replace Chinese consumer goods in the EU market with Ukrainian ones under the EU-UA association agreement. The article briefly surveys some cases of successful implementation of this strategy by Ukrainian business, in particular the launch of exports of household appliances (electro-thermic coffee and tea makers, electric razors, washing machines, electric heaters) to the EU.

Innovative and investment potential of the economic development of the EAEU

2021 ◽  
pp. 666-678
Author(s):  
Inna Nikolaevna Rykova ◽  
Roman Sergeevich Gubanov
Keyword(s):  
Economic Development ◽  
Foreign Trade ◽  
Rural Areas ◽  
Value Added ◽  
Retail Trade ◽  
Industrial Complex ◽  
Member States ◽  
Cross Border ◽  
Eurasian Economic Union ◽  
Economic Union

The article defines the innovative potential of the member countries of the Eurasian Economic Union (hereinafter — the EAEU, the Union), assesses the structural ratio of trade in agricultural products in the total food consumption of the EAEU. The internal investment potential of the EAEU countries is described. The article considers the mechanism of foreign direct investment as a tool for increasing the gross value added of goods during their cross-border movement in the member countries of the Eurasian Economic Union. The dynamics of retail trade turnover in the EAEU is presented. At the same time, in the global aspect, topical issues of the quality of investments in the agro-industrial complex are touched upon, since their volumes do not meet the needs of financial support. At the same time, the mechanism of accelerating the turnover of investment capital is analyzed through the prism of identifying and assessing the state of poverty in rural areas as a risk factor for the agro — food policy of the EAEU member states. At the same time, it is most important to increase the level of food independence of the EAEU member states, to ensure conditions for the growth of the number of new high — performance jobs. The issues of production and consumption of marketable products in the EAEU member states are studied, taking into account the dynamics of prices and the socio-economic situation in the foreign trade space. Based on the generalization of the experience of integration associations of the world economic system, the article concludes that it is necessary to introduce a comprehensive intellectual system into the value chain of commodity products created in the analyzed states. The authors systematize the priorities of the conceptual development of economic relations in the integration of foreign trade processes in the EAEU until 2030. In the system of assessing the mechanism of cross-border traffic through the EAEU, the authors focus on the issues of optimizing the speed of delivery of goods from the seller to the consumer and the modernization of the road transport and logistics infrastructure of the member states of the Union. Based on the analysis of the logistics efficiency index in foreign countries, the necessary conditions for achieving the key effects of the economic development of the EAEU until 2030 are proposed.

scholarly journals CUSTOMS VALUE CALCULATION PROBLEMS AMID FOREIGN TRADE ACCOUNTING, TAXATION HARMONIZATION AND USING INNOVATIVE TECHNOLOGIES

2020 ◽  
Vol 01 (01) ◽  
pp. 27-31
Author(s):  
Mykhailo Vasyliev ◽  
Keyword(s):  
Comparative Analysis ◽  
Foreign Trade ◽  
Value Added ◽  
Value Added Tax ◽  
Innovative Technologies ◽  
Current State

The article is dedicated to the research of customs value calculation problems amid foreign trade accounting and taxation harmonization current state. Comparative analysis of customs value and historical costs was made. Main differences, characterizing each of the categories for its characteristics, were revealed. Measures to help improve the process of customs value calculation were offered. Ways to improve current legislation to further foreign trade accounting and taxation harmonization were defined. We suggested to use innovative technologies for solving problem. Keywords: foreign trade, customs value, customs control, customs duties, historical costs, value added tax

Value-Added Agriculture for Central Asian Countries

2018 ◽  
pp. 135-154
Author(s):  
Khabibullo Pirmatov ◽  
Jana Galova ◽  
Elena Horska
Keyword(s):  
Foreign Trade ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Raw Materials ◽  
Value Added ◽  
Leather Industry ◽  
Economic Role ◽  
Central Asian ◽  
Central Asian Countries

The goal of this chapter is to analyze the socio-economic role of value-added agriculture (VAA) for Central Asian (CA) countries. The agricultural sector of the region provides raw materials for the food, textile, and leather industry. Cotton, wheat, rice, and fruit (fresh and dried) play an important role in the foreign trade of each CA country. These countries have unrealized potential for storing, freezing, processing, and packaging of the wide nomenclature of fruit, food production, and drinks with the organization of their further exports to perspective markets. Adding value to agricultural products lead to increasing the share of finished goods in export, supplying import-substituting products, improving infrastructure in rural areas, providing new jobs, and growing farmers' income. Based on the analysis, the authors recommend using value-added agriculture for the CA countries by attracting domestic and foreign investments to rural areas, establishing tax incentives, and allocating preferential credits for agribusiness.

scholarly journals Calculation and Decomposition Analysis of Embodied Energy and Embodied Carbon Emissions in China’s Foreign Trade Based on Value-Added Trade

2021 ◽  
Vol 25 (5) ◽  
pp. 521-529
Author(s):  
Zhong Han ◽  
Wenkai Wu ◽  
Yan Sun ◽  
Yun Shi ◽  
◽  
...  
Keyword(s):  
Energy Consumption ◽  
Foreign Trade ◽  
Carbon Emissions ◽  
Decomposition Analysis ◽  
Value Added ◽  
Embodied Energy ◽  
Input Output ◽  
Embodied Carbon ◽  
The World ◽  
Embodied Carbon Emissions

Under the new mode of labor division for global production, the method of calculating a country’s energy consumption and carbon emissions is based on a “production side” principle that disregards the embodied energy and carbon emissions caused by international trade. This method is unfair to China and other large, exporting countries. From the perspective of value-added trade, the multiregional input–output model based on the world input–output table and environmental account from the World Input–Output Database are used to measure the scale of China’s value-added trade; subsequently, the import and export net values of China’s foreigntraderelated embodied energy and carbon emissions are calculated. The results show that: (1) China’s value-added exports in 2009 amounted to US $1,045.37 billion, which constitutes 21% of China’s Gross Domestic Product (GDP) in that year. Nearly half of the value-added exports are to fulfill the final demand from North America and European Union countries; manufacturing and service are the main value-added export industries of China. (2) China has a relatively high unit coefficient for value-added energy consumption and carbon emissions, both representing a net export of embodied energy and embodied carbon emissions in foreign trade. In this regard, energy and mid-level technology manufacturing industries, such as coke, refined oil, and nuclear fuel processing, are the main exporters of embodied energy and embodied carbon.

scholarly journals Comparative advantages in Polish export to the European Union — food products vs selected groups of non-food products

2018 ◽  
Vol 9 (2) ◽  
pp. 287-308
Author(s):  
Iwona Szczepaniak
Keyword(s):  
European Union ◽  
Foreign Trade ◽  
Value Added ◽  
Food Products ◽  
The European Union ◽  
Food Sector ◽  
Eu Countries ◽  
Comparative Advantages ◽  
Research Period ◽  
The Eu

Research background: Globalisation and economic integration are the reasons for which the competitiveness of economic entities is analysed more and more often in the context of their relations with the international market. One of the ways to assess the competitiveness of the Polish food sector is an analysis of comparative (relative) advantages in the export of this sector’s products. Purpose of the article: The objective of this paper is to assess comparative advantages in Polish export of food products to the European Union against a background of selected groups of non-food products. Methods: The study used the B. Balassa’s revealed comparative advantage (RCA) index. The study is preceded by a brief review of foreign trade results. The source of data was the WITS-Comtrade commercial database. The analysis was carried out at the level of the HS sections (in commodity terms). The research period covered the years 2003–2015. Findings & Value added: In the years 2003–2015, export of food increased nearly six times and its import — more than 4.5 times. The major partners of Poland as regards trade in food were the EU countries. The food sector was one of few sectors of the economy with the positive trade balance. Polish export to the EU was characterised by a diversified level of comparative advantages. From among 20 HS sections, in 2015 Poland had comparative advantages in export to the EU countries for products from 10 sections (2 food and 8 non-food). Those products accounted for 11% and 70% of Polish export to the EU, respectively. The development of Polish foreign trade in food products during the Polish membership in the EU as well as fairly high comparative advantages in the export of these products to the EU indicate the competitiveness and significant importance of the Polish food sector for the national economy.

scholarly journals TURKEY’S FOREIGN TRADE AS A DRIVER OF ECONOMIC DEVELOPMENT

2016 ◽  
pp. 111-117
Author(s):  
N. R. Masumova
Keyword(s):  
Foreign Trade ◽  
Value Added ◽  
Economic Relations ◽  
Main Driver ◽  
Economic Trends ◽  
Pipeline Project ◽  
Balance Of Trade ◽  
Negative Balance ◽  
Russian Military ◽  
Liberalization Policy

Turkey now is a regional leader due to economic success story of the past decade, changes in the economy's structure and dynamic. Since 1980th foreign trade has become the main driver of the economic growth. Due to liberalization policy Turkey was able to overcome the system crisis. The negative economic trends had contributed to the political instability. That's why it will be interesting to highlight some aspects of Turkish foreign trade policy, which influence the value, geographical and product orientation of foreign trade. Negative balance of trade is the result of its oil import dependence. But the export of goods with more value added has the trend to growth - 30% of exports come to machineries and transport equipments. After the collapse of the USSR Turkish-Russian economic relationship was facing revival. Trade and investment cooperation was developing rapidly. But the conflict of interest during the war in Syria led to growing differences between Russia and Turkey. 24th of November 2015 became a turning point for the Russian-Turkish relations, when Turkish fighter jet F-16 shot down a Russian military jet along the Syrian border. This tragedy had serious consequences for the bilateral economic relations. Huge investment pipeline project "Turkish stream" is freezed, the work of intergovernmental authorities is stopped, certain agricultural goods originated from Turkey is banned to the territory of the Russian Federation. Russia also suspended the visa-free regime for Turkish citizens, all charter flights to Turkey are prohibited. Nevertheless economic sanctions inevitable affect both the Turkish and Russian economies, but Russia is still one of the main partners of Turkey.

scholarly journals Foreign trade relations between the Republic of Korea and the United States in the context of the development of integration processes

2020 ◽  
Vol 28 (4) ◽  
pp. 826-841
Author(s):  
Inna V. Andronova ◽  
Natalia V. Dyuzheva ◽  
Kirill A. Andronov
Keyword(s):  
South Korea ◽  
Foreign Trade ◽  
Free Trade ◽  
Trade Balance ◽  
Free Trade Agreement ◽  
Value Added ◽  
Trade Agreement ◽  
The United States ◽  
The Usa ◽  
Liberal Trade

The article examines the process of concluding, implementing and updating the Free Trade Agreement between the USA and South Korea, highlights the main problematic aspects of the functioning of the free trade area and the consequences for the bilateral trade of countries. The study found that South Korea benefited significantly from the negotiated liberal trade regime with the USA. The trade balance surplus of South Korea with the USA sharply increased - to a historic maximum of 25 billion dollars (in 2015), also South Korean exports of high-tech goods and high value-added goods increased significantly. For the USA, participation in the agreement led to an increase in the trade balance deficit and in the export of resources, agricultural goods and low value-added products. The observed consequences led to the use of a tough discriminatory policy by the USA, to the revision of the provisions of the Free trade agreement and to the military and political concessions from South Korea. As a result, the deficit of the US trade balance with South Korea decreased by 17.3% over the year, changes in the commodity structure of the countries' mutual trade are expected. The analysis proves the formation of a unified approach in US foreign trade policy towards partner countries within the framework of Free trade agreements, which lies in the mainstream of new protectionism and aimed at ensuring American geopolitical and economic interests.

Post-crisis India’s Merchandise Export Growth: What Has Changed?

2018 ◽  
Vol 66 (3-4) ◽  
pp. 270-293
Author(s):  
Anirudha Barik
Keyword(s):  
Foreign Trade ◽  
Manufacturing Sector ◽  
Value Added ◽  
Developed Countries ◽  
Product Diversification ◽  
Factor Endowments ◽  
Brics Countries ◽  
Directorate General ◽  
Jel Code ◽  
The Developed Countries

This article comprehensively examines the growth and pattern of India’s merchandise exports during and following the financial crisis period (2007–08 to 2016–17) using Directorate General of Commercial Intelligence and Statistics and United Nations Commodity Trade/World Integrated Trade Solution trade data. The entire analysis is based on leading trade indices and indicators and the results confirm that significant change in India’s trading structure is associated with the fast growth of foreign trade. The composition of exports has undergone changes overtime, bearing a strong influence of factor endowments and technology in favour of both human capital intensive and technology intensive sectors. The magnitude of product diversification shows that India’s export basket is poorly diversified but more diversified than BRICS countries except China. India’s export destinations showed a major shift from the developed countries market to the emerging markets in Asia and Africa. However, India holds more increased trade intensity with USA and Hong Kong. Dynamism in labour-intensive manufacturing sector is vital to promote India’s exports of agricultural value-added products and enable more competitive at the world. Also, the development of new markets should be viewed as part of a wider effort to enlarge the India’s foreign trade. JEL Code: F10, F14, F19

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