scholarly journals Effect of preferential trade agreements on China’s energy trade from Chinese and exporters’ perspectives

2018 ◽  
Vol 13 (6) ◽  
pp. 1776-1797 ◽  
Author(s):  
Philipp Galkin ◽  
Carlo Andrea Bollino ◽  
Tarek Atalla
Keyword(s):  
Gravity Model ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Trade Flows ◽  
Model Framework ◽  
Preferential Trade ◽  
Content Type ◽  
Energy Trade ◽  
Energy Products ◽  
Trade Gravity Model

Purpose China is a major energy import powerhouse, its trade deals have significant impact on international energy trade and global energy markets. The purpose of this paper is to explore the role of energy in China’s preferential trade agreements (PTAs) and their impact on Chinese imports of oil, gas and coal. Design/methodology/approach An extended trade gravity model framework is applied to explore the dynamics of China’s annualized energy import flows from the 22 economies that have PTAs with it for the period 1995–2015. Findings The effect of PTAs on trade patterns varies across the product groups and agreement clauses. The dominant factor affecting trade flows of coal, crude oil and oil products is the average tariff level. Its impact is less significant for gas imports, which are more affected by policy arrangements represented by a PTA variable. The depth and scope of a PTA do not affect Chinese energy imports patterns. Research limitations/implications This paper is focused on exploring the effect of China’s trade and foreign relations strategies on its energy imports through the prism of its PTAs. Estimating the direct impact of China’s initiatives in the areas of trade, investment, security, culture, etc., on its trade flows of energy products and other product groups using the methodological framework proposed in this study would contribute to better understanding of the issue. Practical implications The findings can assist both China and energy exporting countries that target Chinese market in better understanding the drivers of trade flows of energy products and design their PTA strategies accordingly. Originality/value This study applies the trade gravity model framework to assess the impact of specific components of preferential trade agreements – tariff reduction and depth and scope of agreement – on energy trade flows differentiated by product group.

Impact of preferential trade agreements (PTAs) on firms’ degree of internationalization

2014 ◽  
Vol 3 (1) ◽  
pp. 54-78
Author(s):  
Sulaman Hafeez Siddiqui ◽  
Muhammad Zafarullah ◽  
Muhammad Ijaz Latif ◽  
Ghulam Shabir
Keyword(s):  
Empirical Data ◽  
Mixed Methods Research ◽  
Inductive Reasoning ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Firm Level ◽  
Preferential Trade ◽  
Content Type ◽  
Internationalization Strategies ◽  
The Impact

Purpose – The purpose of this paper is to postulate the impact of preferential trade agreements (PTAs) on internationalization strategies of member countries’ firms. The study also aims to triangulate the proposed model using empirical data from PTA partner economies. Design/methodology/approach – The mixed methods research design is used for the purpose of inquiry as suggested by Creswell. The inductive reasoning based on critical literature review and grounded theory methodology is used to postulate the model. Explanatory strength of the model is triangulated using empirical longitudinal trade data of Pakistan with her bilateral PTA partners, i.e. Malaysia, Mauritius, Iran, Sri Lanka and China. Internationalization indices are adapted following the Ietto-Gillies and London (2009) and Petri (1994) to measure the intensity and geographical diversification dimensions of internationalization. Country-level trade statistics are used as a proxy of firm-level data to explain the international expansion of home firms resulting from PTAs. Findings – Empirical results confirm a strong and long-term impact of PTAs on the intensity and extensity dimensions of internationalization over post-agreement period in Pakistan and member economies. Gravity index depicts greater concentration of Pakistan's trade in FTA markets and thereby confirms the influence of PTAs on international market selection. Analysis at sectoral level depicts a contraction in services trade whereas expansion in the manufacturing firms’ export growth to member economies. Originality/value – The paper extends the theory of internationalization by identifying PTAs as exogenous variable influencing internationalization strategies of member countries’ firms in a developing South Asian context. Coupled with findings from empirical data, the study identifies PTAs as a new strategic trade policy tool available to policy makers for promoting and influencing the home firms’ internationalization strategies.

Reassessing North-South relations: the case of North-South preferential trade agreements

2016 ◽  
Vol 15 (1) ◽  
pp. 51-66 ◽  
Author(s):  
Davit Sahakyan
Keyword(s):  
Trade Agreements ◽  
Theoretical Framework ◽  
Preferential Trade Agreements ◽  
Second Order ◽  
Primary Data ◽  
Preferential Trade ◽  
Content Type ◽  
First Order ◽  
Trade Relations ◽  
Power Asymmetries

Purpose The purposes of this paper are to provide a new framework for the (re)assessment of North-South relations, with a specific focus on North-South preferential trade agreements (PTAs); advance a new mechanism of how first-order, i.e. Southern countries’ first, North-South PTAs can affect the outcomes of second-order, i.e. Southern countries’ subsequent, North-South PTA negotiations; and re-examine the effects of North-South power asymmetries on the outcomes of North-South PTA negotiations. Design/methodology/approach The paper focuses on how North-South power asymmetries affect the outcomes of North-South PTA negotiations. It introduces the concept of “first-order” and “second-order” North-South PTAs to show that the “order” of an agreement can be a crucial factor in PTA negotiations. The claims of the paper are also supported by primary data obtained through the author’s personal interviews with European Union and USA trade officials and policy-makers (see Appendix). Findings The paper advances a new theoretical framework that takes a longer-term view on North-South trade relations, whereby, against the backdrop of the proliferating PTAs, first-order North-South agreements can raise the bargaining powers of Southern countries during subsequent North-South PTA negotiations, with strong implications for both developed and developing countries. Research limitations/implications The paper is largely theoretical. A systematic empirical study of North-South PTAs will be required to validate or refute the theoretical framework advanced in this paper. Originality/value The paper introduces a new variable, namely the “order” of an agreement, which affects the logic of North-South PTA negotiations. Hence, the paper sets out a new theoretical framework that allows for a more accurate assessment of North-South power asymmetries and their effects on the outcomes of North-South PTA negotiations.

scholarly journals The impact of preferential trade agreements on bilateral trade: A structural gravity model analysis

PLoS ONE ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. e0249118
Author(s):  
Xing Yao ◽  
Yongzhong Zhang ◽  
Rizwana Yasmeen ◽  
Zhen Cai
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Market Access ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Trade Integration ◽  
Preferential Trade ◽  
Middle Income ◽  
Wide Range ◽  
The Impact

Trade agreements are thought to raise trade integration, but existing preferential trade agreements (PTAs) are insufficient in measuring market access of products. This study develops a product-based coverage index of PTAs using the World Trade Organization (WTO) preferential trade agreements and calculates bilateral trade measures using the EORA multi-regional input-output (MRIO) tables covering 189 countries worldwide over the period 1990–2015; the structural gravity model is employed to test how PTAs affect bilateral trade. Our findings show that countries sharing a common PTA could boost the trade volume compared to those without PTAs, supporting the trade creation effect. However, the trade promotion effect of the product-based coverage index of PTAs is significant only if the member countries are low-and middle-income countries. Further, the wide range of product liberalization brought by PTAs can promote global production networks by stimulating the trade of intermediate goods. Our results are important for understanding the market access effect of PTAs with the increasing development of trade integration and global value chains (GVCs).

scholarly journals Assessing the Effects of Logistics Performance on Energy Trade

Energies ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 191
Author(s):  
Aleksandra Katarzyna Górecka ◽  
Helga Pavlić Skender ◽  
Petra Adelajda Zaninović
Keyword(s):  
Gravity Model ◽  
Renewable Energy Sources ◽  
Trade Flows ◽  
Transport Infrastructure ◽  
Economic Sectors ◽  
Positive Effects ◽  
Energy Trade ◽  
Gas Products ◽  
Energy Products ◽  
The Eu

Logistics has become one of the most important economic sectors. It significantly affects the transport infrastructure and many other sectors that are crucial for the country’s development. It is the factor that also influences trade efficiency. However, the question arises if logistics performance is significant for the trade of critical goods which are energy raw products. The aim of the paper is primarily to investigate the EU energy trade flows in general and to estimate the effect of logistics performance on the international trade of energy raw products. The energy raw products are grouped into solid, liquid, and gaseous products, and separate estimates are made for their export and import. The analysis also differentiates between the trade flows, that is export and import within the EU and trade flows between EU member states and third countries. The empirical model is based on the theory of gravity model extended to include the six subcomponents of the Logistics Performance Index (LPI). The results present that: (1) the standard gravity model variables, such as GDPs of reporter and partner countries and contiguity, are successful in explaining the trade flows of solid and liquid raw energy but in case of gas products, are insignificant; (2) the results indicate that all logistics’ performance subcomponents are highly significant and show positive effects on the export of liquid energy products, while for the solid and gas products, it seems to be insignificant when the energy commodities are more complex and costly to transport and store, and therefore, contiguity, i.e., when countries share a common border, positively affects energy trade.; (3) the EU imports most liquid energy products, but is generally very dependent on energy imports. EU policymakers should strive to either make more use of domestic resources or switch more to renewable energy sources

Subsidies Regulation Beyond the WTO

2017 ◽  
Author(s):  
Leonardo Borlini
Keyword(s):  
Trade Policy ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Preferential Trade ◽  
Bilateral Agreements ◽  
Negative Function ◽  
Public Aid ◽  
The Eu

An increasingly important aspect of EU trade policy since the lifting of its self-imposed moratorium on preferential trade agreements (PTAs) has been the inclusion of WTO+ provisions on subsidies in bilateral agreements negotiated with a number of third countries. This article covers the main bilateral PTAs negotiated after the publication of the Commission’s Communication on ‘Global Europe’ in order to explore the implications of the different subsidy disciplines they set out. It also discusses the questions that arise when examining the legal discipline of public aid provided by such agreements, regarding not only the substantive appropriateness of standards and rules on compatibility, but also the procedural mechanisms designed to guarantee the implementation and the enforcement of such rules. It concludes that the most advanced among the EU PTAs are shaped as competition regulation and go beyond a mere negative function, ensuring that subsidies can contribute to fundamental public goals.

Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the United States

2006 ◽  
Vol 96 (3) ◽  
pp. 896-914 ◽  
Author(s):  
Nuno Limão
Keyword(s):  
United States ◽  
Trade Liberalization ◽  
Trade Agreements ◽  
The United States ◽  
Preferential Trade Agreements ◽  
Detailed Data ◽  
Preferential Trade ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
Tariff Reductions

Most countries are members of preferential trade agreements (PTAs). The effect of these agreements has attracted much interest and raised the question of whether PTAs promote or slow multilateral trade liberalization, i.e., whether they are a “building block” or “stumbling block” to multilateral liberalization. Despite this long-standing concern with PTAs and the lack of theoretical consensus, there is no systematic evidence on whether they are actually a stumbling block to multilateral liberalization. We use detailed data on U.S. multilateral tariffs to provide the first systematic evidence that the direct effect of PTAs was to generate a stumbling block to its MTL. We also provide evidence of reciprocity in multilateral tariff reductions.

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