scholarly journals Global Production Networks, New Trade Technologies and the Challenge for International Institutions

2020 ◽  
Vol 55 (1) ◽  
pp. 21-41
Author(s):  
Richard Pomfret
Keyword(s):  
International Trade ◽  
New Technologies ◽  
Value Added ◽  
Information And Communications Technology ◽  
Policy Implications ◽  
Production Networks ◽  
Global Production Networks ◽  
Goods And Services ◽  
International Transactions ◽  
The Impact

In the twenty-first century, production processes and international trade in goods and services are being revolutionized by developments in information and communications technology. For many products, global production networks have rendered the label Made in Country X meaningless. With an increasing number of services, both for end-users and as inputs, being provided online, it becomes increasingly difficult to locate where value-added is being produced. This article seeks to document the impact of new technologies on international trade and to analyse the policy implications at the national and global level. A turning point is identified in the mid-1990s; up to 1995 there is no statistically significant relationship between internet usage and trade, but after 1997 the relationship is statistically significant. Use of the internet reduced trade costs, increased the size of trade flows and permitted greater fragmentation along global value chains. It also created opportunities for new international transactions, for example, based on ‘big data’. The article concludes with analysis of attempts to reach WTO agreements with respect to e-commerce and digitalization and of alternative fora in which these issues are being addressed, and relates the outcomes to the phenomenon of mega-regionalism. JEL Codes: F02, F68, 038

Asian Trade and Supply Chain Linkages

2021 ◽  
pp. 395-410
Author(s):  
Dan Ciuriak ◽  
Philip Calvert
Keyword(s):  
International Trade ◽  
Supply Chains ◽  
Economic Integration ◽  
Emergency Preparedness ◽  
Medical Equipment ◽  
Production Networks ◽  
Global Production Networks ◽  
System P ◽  
The Impact

This chapter begins with an overview of the impact of the Covid-19 pandemic on economies of Asia generally, before turning to its impact on supply chains specifically, using the medical equipment sector as a case study to illustrate the practical complexities. It then considers the pandemic’s implications for the multilateral trade system and its impact on Asian economic integration and regionalism. The pandemic has motivated attempts to increase robustness of supply chains through diversification away from excessive dependence on China and into Southeast and South Asia, in an incremental rather than revolutionary way; no wholesale departure from manufacturing in China is anticipated. For most countries, the most efficient response is to continue to rely on international trade and global production networks, while addressing the strategic concerns through improved emergency-preparedness stockpiles. The increased pressure for reshoring, however, is part of a larger disaffection with globalization and the erosion of the rules-based international trade system.

scholarly journals INTERNATIONAL TRADE IN ICT SERVICES: THE CASE OF UKRAINE

2020 ◽  
Vol 113 (6) ◽  
pp. 107-122
Author(s):  
KRASNIKOVA Nataliya ◽  
DZYAD Olena ◽  
HRECHYN Kyrylo
Keyword(s):  
International Trade ◽  
Positive Impact ◽  
Information And Communications Technology ◽  
Added Value ◽  
It Services ◽  
Export Sector ◽  
Goods And Services ◽  
Support For Innovation ◽  
Geographical Regions ◽  
The Impact

Background. Today, the information and communications technology (ICT) sector is one of the most dynamic sectors of the world economy. Since IT services are the second largest export sector in Ukraine, the study of the impact of international trade in ICT services on economic growth becomes relevant. Analysis of recent research and publications. Numerous papers have shown the positive impact of international trade in ICT goods and services on production volumes, employment and productivity of national economies. In particular, UNCTAD data show that the ICT services sector shows an increase in employment and international trade in all geographical regions and provides most of the added value in the ICT sector. The aim of the article is to study the impact of international trade in ICT services on the development of economies of different levels of development, taking into account national policies of ICT sector, and to develop recommendations for Ukrainian policy of ICT sector, taking into account the experience of analyzed countries. Materials and methods. The information base for the study was data from UNCTAD, OECD, Eurostat, and the State Statistics Service of Ukraine. Methods of statistical, structural, regression, comparative analysis are used. Results. Regression analysis was used to identify the relationship between GDP and the volume of exports and imports of ICT services in the analyzed countries. The results showed that in order to ensure economic development through trade in ICT services, countries need to pursue a stimulating policy, which includes measures in three main areas: support for innovation (R&D funding and startup ecosystems); education and training of ICT specialists; and support for investments in ICT services (through preferential taxation and grant schemes). Conclusion. In order to support the growth of the national IT industry, the Ukrainian government is proposed to legalize existing schemes of cooperation of IT companies with private individuals, to avoid additional regulation of the industry, and to develop schemes to financially support innovation in science and business.

scholarly journals The relationship between exchange rates and international trade: a literature review

2013 ◽  
Vol 12 (3) ◽  
pp. 577-605 ◽  
Author(s):  
MARC AUBOIN ◽  
MICHELE RUTA
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Small Firms ◽  
Exchange Rate Volatility ◽  
Production Networks ◽  
Global Production Networks ◽  
Long Run ◽  
The Impact ◽  
The Relationship

AbstractThis paper surveys a wide body of economic literature on the relationship between exchange rates and trade. Specifically, two main issues are investigated: the impact of exchange rate volatility and of currency misalignments on international trade flows. On average, exchange rate volatility has a negative (even if not large) impact on trade. The extent of this effect depends on a number of factors, including the existence of hedging instruments, the structure of production (e.g. the prevalence of small firms), and the degree of economic integration across countries. The second issue involves exchange rate misalignments, which are predicted to have short-run effects in models with price rigidities. However, the exact impact depends on a number of features, such as the pricing strategy of firms engaging in international trade and the importance of global production networks. Trade effects of currency misalignments are predicted to disappear in the long-run, unless an economy is characterized by other relevant distortions. Empirical results broadly confirm these theoretical predictions.

TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ

2014 ◽  
Vol 1 (2) ◽  
pp. 187
Author(s):  
Serdar KUZU
Keyword(s):  
Business Performance ◽  
Transfer Pricing ◽  
Tax Law ◽  
Economic Activities ◽  
Tax System ◽  
Goods And Services ◽  
Tax Legislation ◽  
International Transactions ◽  
The Cost ◽  
The Impact

The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals Pakistan’s Experience with the Pakistan–China FTA: Lessons for CPEC

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 1-24 ◽  
Author(s):  
Theresa Theresa ◽  
Nida Jamil ◽  
Azam Chaudhry
Keyword(s):  
Free Trade Agreement ◽  
Market Access ◽  
Value Added ◽  
Trade Agreement ◽  
Policy Implications ◽  
Firm Level ◽  
Trade Data ◽  
Chinese Markets ◽  
The Impact ◽  
Tariff Reductions

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

scholarly journals The importance of evaluation of economic determinants in public procurement processes in Slovakia in 2010–2016

2017 ◽  
Vol 8 (3) ◽  
Author(s):  
Andrea Tkacova ◽  
Beata Gavurova ◽  
Jakub Danko ◽  
Martin Cepel
Keyword(s):  
Negative Impact ◽  
Public Procurement ◽  
Value Added ◽  
Supply Side ◽  
Economic Determinants ◽  
Goods And Services ◽  
Limit Orders ◽  
Survey Sample ◽  
The Impact

Research background: Public procurement is designed to efficiently spend public sector financial resources. This should lead to savings in public funds. Domestic and foreign studies point to the fact that sufficient competition on the supply side is the condition for achieving those savings. Slovakia currently belongs to a group of countries with low competition on the supply side of the tender. Every year, about 10,000 tenders will be made in Slovakia for 5 billion Eur. However, contracting authorities have difficulty with establishing the estimated contract value and defining non-discriminatory criteria. On the other hand, contractors lack the expertise to prepare tenders, specifications are often tailored to specific bidders or products, and the price criterion has a negative impact on the quality of the goods and services purchased. Purpose of the article: The aim of the study was to investigate the impact of selected efficiency determinants on savings in public procurement in Slovakia in 2010–2016. The number of bids, the subcontractor's participation, the narrower competition and the impact of the narrower competition and the expected price on the number of bids have been examined. Methods: The survey sample consisted of 800 randomly selected public procurement con-tracts from different sectors in 2010–2016. The contracts were split on the basis of the median estimate of the above-limit (409 contracts) and below-limit (391 contracts) contracts; the divestment value was the estimated price of 400,000 Euro (without the tax). Findings & Value added: The number of offers positively influences the creation of savings in public procurement, an average of 5-6%. The impact of a narrow competition was significant, which led to a decrease in savings of 3-4% compared to the open competition if the sample was 800 contracts and over 400,000 Euro (without the tax). For below-limit orders, this determinant was shown to be statistically insignificant. The size of the contract did not affect the number of successful candidates. Also, the negative impact of narrower competition on the number of tenders was demonstrated. These findings are in line with the presented research studies. In the future, we plan to perform sectoral analyses to verify the validity of the hypotheses under review based on the results of our research.

scholarly journals Chemical industry and value-added trade – A comparative study on Hungary and Poland

2019 ◽  
Vol 69 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Pawel Folfas ◽  
Beáta Udvari
Keyword(s):  
Economic Policy ◽  
World Economy ◽  
New Products ◽  
Value Added ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Global Production Networks ◽  
The World ◽  
Chemical Products

Nowadays, global production networks (GPN) and global value chains (GVC) play an important role in the world economy intensifying the trade and production networks and resulting in products having value-added in different countries. The analysis of how many intermediate products a country imports in order to produce a product and of how many products a country exports to another country in order to produce new products draws the attention to value-added trade. In the present study, we compare the Hungarian and Polish value-added trade of chemicals and chemical products. We use the OECD-WTO data of value-added trade, which is based on an input-output table. By calculating numerous indices, we reveal that the domestic value-added of chemicals and chemical products in the two countries was relatively low and should be increased by adequate economic policy.

Global Production Networks and (Distributional) Regional Development: The Cinnamon Industry in Karandeniya and Matale, Sri Lanka

2020 ◽  
Vol 15 (2) ◽  
pp. 209-237
Author(s):  
Eunyeong Song ◽  
Douglas R. Gress ◽  
Edo Andriesse
Keyword(s):  
Sri Lanka ◽  
Regional Development ◽  
Structural Changes ◽  
Value Added ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Exporting Firms ◽  
Global Production Network ◽  
Developmental Dynamics

The purpose of this article is to examine the multi-spatial and developmental dynamics of the cinnamon industry in Sri Lanka, the largest exporter in the world by value added. This contribution compares Karandeniya, a major traditional cultivating hub, and Matale, a region new to cinnamon cultivation, deploying a Global Production Network (GPN) framework inclusive of regional development considerations. Analyses, based on input from 23 semi-structured, in-depth interviews, examine the potential for all stakeholders to acquire equity or ‘how’ captured value influences the region ‘and’ individual actors over the course of development. Fieldwork reveals four upstream actors in the cinnamon industry, namely—farmers, peelers, collectors and exporting firms. Results indicate that the cinnamon boom led to strategic decoupling with the exporting firms in Colombo and subsequent strategic recoupling with other actors. The primary contribution of the research rests in the interpretation of resulting structural changes in each region from a bifurcated view of regional development. Based on regional economic growth, Karandeniya appears to be more successful. However, considering the extent of value distribution within the region, Matale is on a more inclusive trajectory vis-à-vis cinnamon exports. Based on these results, three implications for GPN theory and related development policy are suggested.

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