scholarly journals The long-run decline in the share of agricultural and food products in international trade: a gravity equation approach to its causes

2012 ◽  
Vol 44 (32) ◽  
pp. 4199-4210 ◽  
Author(s):  
Raú l Serrano ◽  
Vicente Pinilla
Keyword(s):  
International Trade ◽  
Food Products ◽  
Gravity Equation ◽  
Equation Approach ◽  
Long Run

scholarly journals A Reappraisal of the Prebisch-Singer Hypothesis Using Wavelets Analysis

2021 ◽  
Vol 14 (7) ◽  
pp. 319
Author(s):  
Hany Fahmy
Keyword(s):  
International Trade ◽  
Structural Breaks ◽  
Developing Economies ◽  
Commodity Prices ◽  
Commodity Price ◽  
Data Set ◽  
Price Series ◽  
Long Run ◽  
Starting Point ◽  
The Impact

The Prebisch-Singer (PS) hypothesis, which postulates the presence of a downward secular trend in the price of primary commodities relative to manufacturers, remains at the core of a continuing debate among international trade economists. The reason is that the results of testing the PS hypothesis depend on the starting point of the technical analysis, i.e., stationarity, nonlinearity, and the existence of structural breaks. The objective of this paper is to appraise the PS hypothesis in the short- and long-run by employing a novel multiresolution wavelets decomposition to a unique data set of commodity prices. The paper also seeks to assess the impact of the terms of trade (also known as Incoterms) on the test results. The analysis reveals that the PS hypothesis is not supported in the long run for the aggregate commodity price index and for most of the individual commodity price series forming it. Furthermore, in addition to the starting point of the analysis, the results show that the PS test depends on the term of trade classification of commodity prices. These findings are of particular significance to international trade regulators and policymakers of developing economies that depend mainly on primary commodities in their exports.

International Trade and Economic Performance in Tanzania: Further Evidence

2021 ◽  
pp. 1-17
Author(s):  
Ally A. L. Kilindo
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Economic Performance ◽  
Trade Restrictions ◽  
Correction Model ◽  
Spurious Regression ◽  
Long Run ◽  
Reform Period ◽  
Manufactured Goods

Abstract The study investigated the role of international trade in economic performance in Tanzania for the post reform period, from 1980 to 2018. International trade is measured by disaggregated imports and exports while economic performance is measured by GDP growth. Exports are disaggregated into manufactured goods and non-manufactured goods while imports are disaggregated into capital goods and intermediate goods. To obtain robust non-spurious regression results, Dickey-Fuller (D-F) and Phillips-Peron (PP) Unit Root tests were performed. Johansen Co-integration tests were employed to investigate long-run relationships between export, imports and economic growth. The Johansen test suggested a long-run relationship between international trade and its components and economic development. In addition, the Error Correction Model (ECM) results further supported a long-run relationship between international trade and economic growth in Tanzania. This calls for further opening of the economy and further liberalisation of trade restrictions.

Impact of Environmental Tax on Comparative Advantage of Food and Food Products: A Study of G20 Countries in Light of Environmentally Sensitive Goods

2021 ◽  
pp. 001946622110352
Author(s):  
Alisha Mahajan ◽  
Kakali Majumdar
Keyword(s):  
Comparative Advantage ◽  
Food Products ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Environmentally Sensitive ◽  
The Relationship

Many countries are under constant fear that environmental policies might negatively influence the international competitiveness of polluting industries. In this study, we aim to evaluate the relationship and impact of the environmental tax on comparative advantage of trade in food and food products industry, considered to be one of the highly environmentally sensitive industries. This study also investigates, whether this relationship differs among countries covered in G20, with the help of correlation analysis. We select panel autoregressive distributed lag approach for this study as it can analyse long-run as well as short-run association even when the variables are stationary at different orders of integration. Using panel data from G20 countries over the period of 21 years that is from 1994 to 2015, it is concluded that when we allow environmental taxes to interact with the revealed comparative advantage (RCA) of G20 nations, the overall impact of the environmental tax on the RCA is negative in the long period. It is therefore suggested that countries should follow Porter hypothesis to stimulate innovations resulting from strict environmental regulations that affect the environment in least possible manner. JEL Codes: C01, C23, C33, F18, O57, Q5

scholarly journals TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

2010 ◽  
Vol 11 (1) ◽  
pp. 112-130
Author(s):  
Salih Katircioglu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Small Island ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Island State ◽  
Northern Cyprus ◽  
Small Island State ◽  
Growth Hypothesis ◽  
Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

scholarly journals Structure and Determinants of Intra-Industry Trade in Agro -Food Sector of Bosnia and Herzegovina

2017 ◽  
Vol 3 (3) ◽  
pp. 154
Author(s):  
Vesna Mrdalj
Keyword(s):  
International Trade ◽  
Bosnia And Herzegovina ◽  
Transition Period ◽  
Final Analysis ◽  
Food Products ◽  
Food Sector ◽  
Industry Trade ◽  
Unit Value ◽  
Comparative Advantages ◽  
Well Data

This paper aims to contribute to a better understanding of the structure and determinants of intra –industry trade specialization in agro food sector of Bosnia and Herzegovina over the transition period. The empirical analysis based on calculation of the following indicators: Grubel – Lloyd index (GL), Revealed Comparative Advantages (RCA indicator) and Relative unit value (RUV indicator). In order to show the level of intra-industry trade specialisation and to examine comparative advantages at sectoral level, as well for individual product group, are calculated Grubel – Lloyd index and RCA indicator. RUV indicator is used for analysis of two components of total intra-industry trade (TIIT); horizontal intra – industry trade (HIIT) and vertical intra- industry trade (VIIT) of agro-food products in Bosnia and Hercegovina. The analysis and calculations of above mentioned indicators are conducted using the data about international trade of agro-food products in Bosnia and Hercegovina for period of time 2008-2015, as well data at 4 – digit level, classified according to HS (Harmonised System). The final analysis in this paper is finished through applying K - means cluster analysis. K - means method was used for identificiation of different clusters of agricultural and food commodity groups related to comparative advantages, level of specialization in intra – industry trade, as well as the ratio between unit value export and unit value import. The emprical results indicated that GL index for observed period at sectoral level is lower than 50 %. The values of RCA indicator for agro-food sector of Bosnia and Herzegovina in international trade and to important trade markets indicate lack of comaparative advantages. In the structure of intra – industry trade is dominated vertical specialization.

scholarly journals Are some taxes better for growth in Pakistan? A time series analysis

2018 ◽  
Vol 45 (10) ◽  
pp. 1439-1452 ◽  
Author(s):  
Kashif Munir ◽  
Maryam Sultan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
International Trade ◽  
Sales Tax ◽  
Tax Base ◽  
Content Type ◽  
Long Run ◽  
Indirect Taxes ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of taxes on economic growth in the long run as well as in the short run. Design/methodology/approach The study uses simple time series model, where real GDP is dependent variable and different forms of taxes are explanatory variables under ARDL framework from 1976 to 2014 at annual frequency for Pakistan. Findings Direct taxes have positive relation with economic growth in the long run. Sales tax, tax on international trade (tariffs) and other indirect taxes have positive impact on economic growth of Pakistan in the long run as well as in the short run. However, sales tax and other indirect taxes impact negatively on economic growth in the short run after one year because people realize decline in their real income. Practical implications Government should increase direct taxes by increasing tax base. Indirect taxes usually indicate negative impact after one and two years; therefore, government should decrease its reliance on indirect taxes. Government should promote tax awareness among the people which increase the tax morale of people and increase the tax base. Originality/value Taxes are disaggregated into direct and indirect taxes, while indirect taxes have been further disaggregated into excise duty, sales tax, surcharges, tax on international trade and other indirect taxes. This study provides useful insight for policy makers in designing taxes and their effect on growth.

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