The Terms of Trade as a Tax on Agriculture: Hungary's Trade with Austria, 1883–1913

1972 ◽  
Vol 32 (1) ◽  
pp. 298-315 ◽  
Author(s):  
Scott M. Eddie
Keyword(s):  
Manufacturing Industry ◽  
Agricultural Sector ◽  
Import Substitution ◽  
World Market ◽  
Industrial Sector ◽  
Terms Of Trade ◽  
National Accounts ◽  
Underdeveloped Countries ◽  
The World ◽  
The Cost

Protection of a domestic manufacturing industry to encourage its expansion through import substitution is equivalent (in the absence of equal protection for agriculture) to a “tax” on agriculture to support the development of the industrial sector. To call this policy of biasing the intersectoral terms of trade to favor industry a typical strategy of underdeveloped countries would be, if anything, to understate its universality. The arguments for and against such a strategy are well known, and an approximation of the benefits to the industrial sector can be gleaned from the national accounts of many countries. What remains hidden in the accounts, however, is the cost to the agricultural sector as a result of its being forced to trade at less favorable terms of trade than those provided by the world market. The purpose of this paper is to work out a simple methodology for measuring this cost and then to attempt an estimate of the cost in a particular case.

Are export earnings from India’s bilateral intra-industry trade with the US and China robust enough?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sagnik Bagchi ◽  
Surajit Bhattacharyya
Keyword(s):  
Current Account ◽  
Manufacturing Industry ◽  
Current Account Deficit ◽  
Export Price ◽  
World Market ◽  
Export Share ◽  
Content Type ◽  
Persistent Problem ◽  
Industry Trade ◽  
The World

Purpose This paper aims to explore whether India’s export basket in the bilateral intra-industry trade (IIT) with two of its top trading partners characterize robust export earnings or not. This is pertinent for two reasons. First, India has a persistent problem of current account deficit for over decades now. Second, whether India’s export diversification strategy by participating in global value chains to improve export share in the world market led to the problem of the fallacy of composition. Design/methodology/approach This study considers bilateral trade data between India-USA and India-China at the HS-6 digit level over the period 1990–2018. The magnitude of total IIT is computed using the Grubel and Lloyd (1971) index. This paper then uses the unit value dispersion criterion to disentangle the magnitude of total IIT into horizontal and vertical IIT. Through a stepwise econometric exercise, this paper explores the attributes of exported goods in the IIT basket in terms of the directions of ToT, export share and export-price elasticity. Findings Across the two country pairs, the major contributors to the upsurge in IIT are five manufacturing industry groups of chemical, plastics and rubber, textiles, base metals and machinery and mechanical appliances. Across the industry groups, the dominant form of IIT has been low vertical IIT. Most of the industry groups do not characterize robust export earnings as the commodity groups have an elastic demand and an increasing trend of Terms of Trade (ToT). The exceptions are the industry groups of chemicals and textiles in India-China and India-USA, respectively. Research limitations/implications The concern of slim export earnings in most industry groups offers scepticism in maintaining the sustainability of the current account. The problem of the fallacy of composition also cannot be ruled out given the dominance of low vertical IIT. This study argues that these industry groups need to engage in labour market reforms and require access to easy credit to achieve competitiveness in the world market. Originality/value The analysis performed in this paper attempts to integrate the Prebisch-Singer hypothesis in the context of IIT. Empirical evidence to such an issue is not profound.

FRUIT AND BERRIES WORLD PRODUCTION AND INTERNATIONAL TRADE

2020 ◽  
Vol 10 (8) ◽  
pp. 1445-1464
Author(s):  
R.R. Mukhametzyanov ◽  
◽  
E.V. Britik ◽  
Keyword(s):  
International Trade ◽  
Large Scale ◽  
Import Substitution ◽  
World Market ◽  
Climatic Conditions ◽  
Global Rating ◽  
Production Volume ◽  
Food And Agriculture ◽  
Food And Agriculture Organization ◽  
The World

Horticulture is an important branch of agriculture with particular importance in some countries of the world. The production of fruits, berries and nuts is an important part of forming a high-grade food supply for the population in many countries, including the developing ones. Basing on the statistical data from the Food and Agriculture Organization of the United Nations (UN), the authors examined the change in the production volume of these products in the world as a whole for 1961-2018, as well as for the period 1992-2018 in some countries - twenty largest producers in 2018; and a number of trends were identified. In particular, it was noted that in 2018 the global gross harvest of fruits and berries increased by 4.34 times compared to 1961, while that of nuts - by 7.04 times. A deeper analysis in the context of states, which are the main producers of fruits, berries and nuts, carried out for 1922-2018, indicates that there is a change in the positions of these countries in the corresponding world ranking. The quantitative and qualitative changes we observe inevitably have a significant impact both on the volume of the world market in terms of production, and, consequently, the supply of fruit and berry products, and on the parameters of international trade in fruits, berries and nuts. Due to the fact that the Russian Federation is not among the countries - largest producers of fruit and berry products (in 2018 it was the 31st in the global rating for fruits and berries, and the 52nd for nuts), it occupies a very significant position in the world on its imports, especially on some of them. In connection with the policy of import substitution, deployed in response to sanctions from a number of Western states, some positive changes are also observed in the Russian gardening industry. However, imports in the resources of fruits and berries still amounted to 53.6% in 2018. Naturally, many types of fruit and berry products are economically inexpedient to cultivate on an industrial scale in the natural and climatic conditions of our country, but it is necessary to carry out scientifically grounded and systematic work to increase the production of relatively traditional for Russia fruit and berry plants in the large-scale commodity sector.

How Economic Dependency Was Created Through the WTO: A Case Study of South Korea

2017 ◽  
Vol 33 (4) ◽  
pp. 469-487 ◽  
Author(s):  
Ka Yi Fung
Keyword(s):  
South Korea ◽  
Free Trade ◽  
Agricultural Sector ◽  
Developed Countries ◽  
World Market ◽  
Production Costs ◽  
The European Union ◽  
Economic Dependency ◽  
The World

Adapting the framework of dependency theory, the article asks how the economic dependency of less developed countries (LDCs) on developed countries (DCs) is created through free trade. This article uses South Korea’s entry into the World Trade Organization (WTO) as a case study to illustrate this economic dependency creation process. Based on second-hand data from existing studies, the European Union, and the WTO, this article finds: (i) due to limited farmland size and high production costs, South Korean agricultural products cannot win a seat in the world market; (ii) the local agricultural sector was destroyed in South Korea because small farmers cannot earn a living by farming; and (iii) since the local agricultural sector cannot support the food demand in South Korea, South Korea now has to import a large amount of food. This article concludes that free trade actually destroys the local agricultural industry and the food security of South Korea, and consequently makes South Korea have to rely heavily on DCs for food import.

scholarly journals Impact of agricultural supports on competitiveness of agricultural products

2020 ◽  
Vol 66 (No. 6) ◽  
pp. 286-295
Author(s):  
Hasan Arisoy
Keyword(s):  
Competitive Advantage ◽  
Agricultural Sector ◽  
Vector Autoregression ◽  
Terms Of Trade ◽  
Agricultural Products ◽  
Var Model ◽  
Political Variable ◽  
The World ◽  
The Impact ◽  
Over Time

The agricultural sector is being supported in Turkey, as well as in the world. The issue of competitiveness is observed in agriculture, despite supports. This study aims at investigating the impact of agricultural supports in Turkey on competitiveness of agricultural products. Vector autoregression (VAR) model has been adopted in the study. The internal terms of trade (TOT), percentage producer support estimate (PSE), and the producer nominal protection coefficient (NPC) variables have been included in the model. The internal terms of trade in Turkey have developed over time against the benefit of agricultural sector. PSE has had a significant impact on TOT. Therefore, the use of PSE as a political variable has been concluded as a significant. Means of support must be discussed in Turkey more than the amount of supports. In particular, supports that will provide farmers with competitive advantage and boost up product farmyard prices will be more efficient and beneficial for farmers.

scholarly journals The Solar Explosion

2020 ◽  
Vol 142 (10) ◽  
pp. 38-43
Author(s):  
Amiyo K. Basu
Keyword(s):  
Power System ◽  
Industrial Policy ◽  
World Market ◽  
The World ◽  
Cost Of Production ◽  
The Cost

Abstract There were two breakthroughs that led to a veritable revolution in photovoltaic prices. The commonly told story is that China started manufacturing lower-quality panels and dumped them on the world market at prices near (or even below) the cost of production. The truth is more complicated. Chinese manufacturing at scale played a part, but so did German industrial policy and a focus on improving the complete power system, not just the PV cells.

scholarly journals MECHANISMS FOR ENSURING THE COMPETITIVENESS OF BUSINESS STRUCTURES IN THE AGRICULTURAL SECTOR

THE BULLETIN ◽  
2020 ◽  
Vol 6 (388) ◽  
pp. 154-161
Author(s):  
Kokenova A.T., ◽  
◽  
Sadykbekova A.A., ◽  
Statsenko O.A., ◽  
Orazova B.B., ◽  
...  
Keyword(s):  
Economic Development ◽  
Production Management ◽  
Production Efficiency ◽  
Agricultural Sector ◽  
Raw Materials ◽  
World Market ◽  
Industrial Complex ◽  
The World ◽  
Innovative Potential ◽  
High Level

Neither the development of the world economy nor the availability of raw materials can guarantee the stability of economic development and a high level of social welfare. Now Kazakhstan faces the task of accelerated development of national economy sectors that give a multiplicative effect (the share of agricultural products in the country's GDP should grow 5 times by 2050), including the agro-industrial complex of Kazakhstan has a great potential to become a new driver of economic development. Therefore, the agro-industrial complex of Kazakhstan needs sustainable development of export-oriented agricultural production that is competitive on the world market. Despite the solution of many theoretical and applied problems reflected in the works of these authors, a General approach to the classification of organizational reserves for improving the efficiency of production of scientific-intensive products is not currently formed, and the issues of forming a mezzanine for identifying and using, and evaluating the level of production efficiency require further improvement. The purpose of the research is to develop theoretical, scientific, methodological and practical provisions for the formation of a production management system of innovative potential based on improving the competitiveness of the agricultural industry, aimed at ensuring food security in Kazakhstan. The article shows that the innovative type of economic development requires the development of a competitive innovative potential product, the implementation of the principles of continuous improvement, the search and use of the organization of production for its effective production. The necessity of forming mechanisms for identifying and using organizational reserves to increase the efficiency of production of innovative potential products is also determined. This opened up the possibility of creating and developing conditions conducive to the mobilization of domestic reserves.

scholarly journals Power Window

2011 ◽  
Vol 133 (04) ◽  
pp. 48-48
Author(s):  
Jeffrey Winters
Keyword(s):  
The United States ◽  
World Market ◽  
Identity Crisis ◽  
Retail Price ◽  
Raw Material ◽  
Energy Identity ◽  
Consumption Growth ◽  
The World ◽  
The Cost ◽  
Consumption Curve

This article analyzes the energy identity crisis in some oil-producing countries. It highlights that the retail price for gasoline in countries such as Libya, Saudi Arabia, Bahrain, and Yemen was at or below the cost on the world market of the petroleum needed to produce it. However, Egypt went from an exporter of more than 300,000 barrels of oil a day in 1999 to a net importer beginning in 2009. And as a consequence, the prices for gasoline in Egypt went from below the raw material cost in 2006 to being comparable to those in the United States. Tunisia shifted from an exporter to an importer in 2000. Thanks to strong consumption growth, Bahrain has also seen its exports plummet from more than 30,000 barrels a day in the 1990s to around 3500 today. The Saudi consumption curve is climbing at about 4% per year, and unless the country can raise production above 11 million barrels a day, its exports will disappear by 2050.

scholarly journals Self-Automated Agriculture System using IoT

2020 ◽  
Vol 8 (6) ◽  
pp. 758-762
Keyword(s):  
Agricultural Sector ◽  
Smart Device ◽  
Raspberry Pi ◽  
Rapid Population Growth ◽  
Time Data ◽  
Agriculture Sector ◽  
The World ◽  
Smart Control ◽  
The Cost ◽  
Moisture Sensing

The world populationsupposed to reach 9.8 billion by 2050 and is difficult of feed such population . So for feeding the entire population the agriculture sector should be embed with IOT and farmers also should adopt this technology [1]. It is essential to increase the productivity of farming and agricultural process with the help of technologies like IoT.IoT can make farming easier by reducing the cost by decreasing the intervention of farmers in this field through automation. This paper aim is to develop a self- autonomous agriculture system works by connecting physical devices and systems to the internet. IoT is a very promising technology to drive the agricultural sector, it is the backbone for sustainable development mainly in developing countriesthat are experiencing rapid population growth like China, India etc, stressed natural resources, agricultural productivity reduction due to climate change. Hence the paper aims at making the agriculture smart using IoT technologies. The projects include a GPS based robot to perform tasks like weeding, spraying, moisture sensing, bird scaring, keeping vigilance, etc. This project requires smart irrigation with smart control and best decision making based on accurate real time data. Thisincludes crop management, waste management, warehouse management, theft control etc. Controlling of all the operations will be through a remote smart device like phone or computer connected to Internet and the operations will be performed by using sensors, Wi-Fi or ZigBee modules, cellular, LoRa,camera and actuators with micro-controller and raspberry pi [2]

scholarly journals Advantages of chinese production in the context of globalization

2021 ◽  
Vol 16 (3) ◽  
pp. 21-31
Author(s):  
W. Yuanlong ◽  
W. Xizhe
Keyword(s):  
Manufacturing Industry ◽  
Science And Technology ◽  
Large Population ◽  
World Market ◽  
Excess Capacity ◽  
Industrial Products ◽  
Industrial Market ◽  
The World ◽  
Chinese Industry

A large number of exports of cheap industrial products completed the initial accumulation of capital in China, but this manufacturing industry, which has not mastered the basic technologies, is very fragile. With the development of science and technology, the economy of various countries is gradually globalizing. China is currently the second largest economy in the world, and due to its large population, this also makes China a huge sales market, but due to the large amount of excess capacity, China’s excess industrial market cannot be digested by its own country. In addition to the modernization of China’s manufacturing industry, it is inevitable that Chinese industry will simultaneously enter the world market. China’s manufacturing industry will face difficulties, but at the same time it has its own unique advantages.

scholarly journals Import substitution strategies in the global economy: lessons for Russia

2019 ◽  
Vol 80 (4) ◽  
pp. 398-402
Author(s):  
A. Sh. Subhonberdiev ◽  
A. N. Shevchenko
Keyword(s):  
Latin American ◽  
National Economy ◽  
Global Economy ◽  
Structural Changes ◽  
Import Substitution ◽  
World Market ◽  
Domestic Market ◽  
Point Of View ◽  
Industrial Countries ◽  
The World

The world experience of implementation of import substitution strategy is being studied; reveals the essence of the main models; Identify those aspects that will prove useful in modern Russian conditions. The development of import-substituting industries according to the intra-oriented strategy is carried out in order to develop exclusively the domestic market of the country. From the point of view of the national economy, this strategy leads to the preservation of the backlog, primarily in the field of technological and scientific-technical cooperation and prevents the emergence of industries in the economy-locomotives that can ensure the world level of progress. The use of this model of import substitution has become a determining trend in the development of the so-called new industrial countries (NIS).The intra-oriented strategy of import substitution plays a stimulating role in creating a diversified national economy, expanding the production of important goods on its own. The conceptual basis for the implementation of this strategy was the theory of the peripheral economy, developed by a group of Latin American scientists headed by the Executive Secretary of the UN Economic Commission. According to this concept, the demand for products. The use of the designated model of import substitution has become a trend of development of the so-called new industrial countries of Latin America. Another option for the implementation of import substitution policy can be a strategy of foreign-oriented import substitution, which is characterized by the achievement of structural changes in the economy through the replacement of imported components and parts in export products. Implementation of import-substituting policy, according to this model, involves the development of production of national goods on a sufficiently large domestic market, followed by their promotion on the world market.

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