MEASURING MONGOLIA’S GAINS FROM TRADE AND INCREASED INTEGRATION IN THE WORLD ECONOMY

2019 ◽  
Vol 19 (04) ◽  
pp. 1950021
Author(s):  
ENKHMAA BATTOGTVOR ◽  
CRAIG PARSONS
Keyword(s):  
World Economy ◽  
Bilateral Trade ◽  
Transitional Economies ◽  
Trade Costs ◽  
Trade Cost ◽  
Welfare Impact ◽  
Economic Association ◽  
The World ◽  
Trade Partners ◽  
Tariff Equivalent

Following the gains from variety literature ( Broda and Weinstein , 2006 ), we estimate the welfare impact of the dramatic increase in imported varieties growth in Mongolia and find it to be considerably larger than that found in previous studies of other transitional economies. Our results show that from 1988 to 2015, the gains from variety were equal to 22 percent of Mongolia’s GDP, or 0.8 percent annually. As such, this paper measures the gains of one of the most profound trade liberalizations in modern history. Also, by calculating Novy measures of trade costs, we find that the tariff-equivalent trade costs between any of its trade partners fell dramatically since the dissolution of and Mongolia’s exit from the Soviet-led CMEA (Council of Mutual Economic Association). Our calculations suggest that the costs between Mongolia and China, now its biggest trading partner, fell from 114% to 63%. For reference, this is twice the decline of the post-NAFTA US-Mexico trade costs. Other bilateral trade cost declines (e.g. with Germany) were even greater.

COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS – PACIFIC PARTNERSHIP (TPP – 11): PAST, PRESENT AND FUTURE?

2019 ◽  
pp. 5-18
Author(s):  
Vladimir Yu. Salamatov ◽  
Nataliia M. Galkina
Keyword(s):  
World Economy ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Regional Trade ◽  
Trade Relations ◽  
Global Trend ◽  
The World ◽  
The Common ◽  
Partnership Agreement

The article considers the global trend towards regional trade agreements (RTA). The authors note that in addition to the common bilateral RTAs, countries conclude multilateral regional trade agreements. In particular, the article examines changes in the world economy, which occur under the influence of the mega-regional trade agreements (MRTA) formation. An example of the MRTA is the Trans-Pacific Partnership Agreement (TPP) and its possible impact onRussiais discussed in the present article. The authors discuss the stages of TPP development, its goals, provisions, innovations and prospects. The article analyses an example of a country’s withdrawal from an agreement, its’ consequences and possible impact on the country itself and other signatory countries to the agreement. The article points out the differences between TPP and TPP-11. Inparticular, the article discusses the possible impact of the TPP-11 onRussia. Trade relations betweenRussiaand TPP-11 signatory countries are considered, and key markets among TPP-11 countries are identified. The article highlights the importance ofRussia's rapid response to the possible consequences of the TPP-11, including the possible conclusion of bilateral trade agreements between the EAEU, whereRussiais a member, and potential partners from TPP-11 countries.

United States and Its Challenge to Multilateralism in the Global Economy

2018 ◽  
Vol 74 (4) ◽  
pp. 402-419
Author(s):  
Krishnakumar S.
Keyword(s):  
United States ◽  
Global Economy ◽  
World Economy ◽  
Foreign Exchange Market ◽  
Bilateral Trade ◽  
Developing Economies ◽  
The United States ◽  
The Us ◽  
The World ◽  
Merchandise Trade

With Donald Trump as President of United States, multilateralism in the world economy is facing an unprecedented challenge. The international economic institutions that have evolved since the fifties are increasingly under the risk of being undermined. With the growing assertion of the emerging and developing economies in the international fora, United States is increasingly sceptical of its ability to maneuvre such institutions to suit its own purpose. This is particularly true with respect to WTO, based on “one country one vote” system. The tariff rate hikes initiated by the leader country in the recent past pose a serious challenge to the multilateral trading system. The paper tries to undertake a critical overview of the US pre-occupation of targeting economies on the basis of the bilateral merchandise trade surpluses of countries, through the trade legislations like Omnibus Act and Trade Facilitation Act. These legislations not only ignore the growing share of the United States in the growing invisibles trade in the world economy, but also read too much into the bilateral trade surpluses of economies with United States and the intervention done by them in the foreign exchange market.

Japan's Resource Imports

1991 ◽  
Vol 513 (1) ◽  
pp. 76-89 ◽  
Author(s):  
KAZUO SATO
Keyword(s):  
World Economy ◽  
Bilateral Trade ◽  
Poor Country ◽  
The United States ◽  
Supply Shocks ◽  
Economy Running ◽  
Resource Poor Country ◽  
Bilateral Trade Balance ◽  
The World ◽  
Trade Frictions

As a resource-poor country, Japan depends much on imports of resource goods—foods, fuels, and crude materials—to keep its economy running. This dependence has increased over time, making Japan vulnerable to supply shocks. At the same time, demand shocks emanating from its domestic economy have come to exert a greater influence on the world economy. Because Japan exports almost wholly manufactured goods and imports largely resource goods, its bilateral trade balance ends up with a surplus with industrial economies and a deficit with primary-producing countries even when Japan's trade is globally balanced. This trade structure gives rise to trade frictions, especially with the United States. Unless the structure is altered fundamentally, Japan will find it increasingly difficult to fit itself into the world economy.

scholarly journals ECONOMIC SHOCKS ON PARTNERS’ TRADE; AFRICA AND ASEAN ON CHINA

2021 ◽  
pp. 11-24
Author(s):  
Emmanuel Yamoah Cobbold ◽  
Dan Owusu
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Shocks ◽  
Macroeconomic Shocks ◽  
The World ◽  
Per Capita ◽  
The Impact ◽  
Trade Partners

This research studies the impact of macroeconomic shocks from African and the Association of Southeast Asian Nations (ASEAN) on China’s bilateral trade with them. Data on (GDP) per capita, FDI, inflation, unemployment rates, and trade openness (TO) of China’s African and ASEAN partners were sourced from the World Bank whilst imports and exports data were from the world integrated trade solutions (WITS). It uses the gravity model as a basis and the panel corrected standard errors (PCSE) as well as multivariate regression estimators. The findings reveal that per capita of China’s partners have a strong positive impact on trade with them. Trade openness is reported to increase China’s imports but reduce exports to these partners. Further, an increase in FDI inflows to China’s trade partners leads to an increase in both imports and exports of China. KEYWORDS: Economic shocks, international trade, China, Africa, ASEAN, gravity model

International Business in Transitional and Emerging Economies: A Perspective of Latvia, Lithuania and Estonia with India

2018 ◽  
Vol 7 (2) ◽  
pp. 144-155
Author(s):  
Som Sekhar Bhattacharyya ◽  
Andrejs Cˇ irjevskis ◽  
Tatjana Põlajeva
Keyword(s):  
International Business ◽  
Emerging Economies ◽  
World Economy ◽  
Secondary Data ◽  
Transitional Economies ◽  
Global Market ◽  
Indian Market ◽  
Baltic Countries ◽  
The World ◽  
Secondary Data Sources

Baltic countries, namely, Latvia, Lithuania and Estonia, the former Soviet states, are making a mark in the world economy. Like India, Baltic countries are contesting with other emerging economies to gain a share of the global market. Given this context, it is insightful to study how emerging economy firms are faring in transitional economies. The case, based upon secondary data sources, helps to comprehend the nature and extent of two-way international business between Latvia, Lithuania and Estonia with Indian firms and Indian market.

scholarly journals Strategic Investment in an International Infrastructure Capital: Nonlinear Equilibrium Paths in a Dynamic Game between Two Symmetric Countries

Mathematics ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 63
Author(s):  
Akihiko Yanase ◽  
Ngo Van Long
Keyword(s):  
World Economy ◽  
Dynamic Equilibrium ◽  
Public Investment ◽  
Dynamic Game ◽  
Threshold Level ◽  
Trade Costs ◽  
Trade Patterns ◽  
The World ◽  
National Welfare ◽  
Over Time

This paper develops a two-country model of intra-industry trade with trade costs that can be reduced by public investment in an international infrastructure capital, the stock of which accumulates over time. Depending on the trade costs and international distribution of manufacturing firms, equilibrium patterns of trade are determined, and national welfare in each country is affected by these trade patterns. Taking into account the relationship between trade costs and national welfare, the governments carry out a dynamic game of public investment. We show that the dynamic equilibrium of the policy game may exhibit history dependency; if the initial stock of international infrastructure is smaller (larger) than a threshold level, the infrastructure stock decreases (increases) over time, and the world economy will end up in autarky (two way free trade) in the long run. We also show that international cooperation is beneficial in the sense that it may enable the world economy to escape from a “low development trap”.

scholarly journals MULTILATERALISM OR BILATERALISM: THE EU TRADE POLICY IN AN AGE OF THE WTO CRISIS

Ekonomika ◽  
2013 ◽  
Vol 92 (3) ◽  
pp. 7-23
Author(s):  
Anna Wróbel
Keyword(s):  
Trade Policy ◽  
World Trade ◽  
World Economy ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
World Trade Organisation ◽  
The United States ◽  
Trade Relations ◽  
The World ◽  
The Eu

Abstract. The aim of the study is to analyze the EU trade policy in the age of the World Trade Organization (WTO) crisis. In addition to the WTO membership and a number of international agreements within this organisation, the EU is a party to many bilateral trade agreements and negotiating further. It is the side effect of the protracted negotiations in the WTO under the Doha Development Round. The paper discusses the process of proliferation of bilateral trade agreements in the world economy and its importance for the EU. The article is divided into three parts. Part One identifies the determinants of the WTO crisis. Part Two discusses the process of proliferation of bilateral trade agreements in the world economy. Part Three analyzes the EU trade policy and the system of the EU preferential trade agreements. It also examines trade relations of the EU with the Republic of Korea, India, and the United States of America as an illustration of the new EU trade strategy.Key words: bilateralism, European Union, common commercial policy, World Trade Organisation

scholarly journals Quantitative dynamics of intra-BRICS trade

2020 ◽  
Vol 4 (1) ◽  
pp. 6-23
Author(s):  
Mohd Nayyer Rahman ◽  
Zeenat Fatima ◽  
Nida Rahman
Keyword(s):  
Gravity Model ◽  
World Economy ◽  
Positive Impact ◽  
Trade Flows ◽  
Market Size ◽  
Trade Relations ◽  
Brics Countries ◽  
The World ◽  
Economic Ties ◽  
Trade Partners

The study uses an augmented gravity model to analyse intra-BRICS trade flows and the potential for establishing economic cooperation. It examines trade relations between BRICS with the help of the gravity model of international trade. Panel data from 2000 to 2017 were reviewed for bloc analysis of 20 trade partners. The analysis of the intra-BRICS trade flows is based on the Heckscher-Ohlin model. The results obtained confirm that the intra-BRICS trade relations have a sound positive impact on economic performance in these countries. Market size and economic index have a beneficial effect on the intra-BRICS trade flows. Market size is very elastic to trade, while trade tariffs and taxes within BRICS are manageable. Hence, the intra-BRICS trade has the potential to create strong economic ties within the member countries, and cooperation between the BRICS countries can have a significant influence on the globalisation of the world economy.

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