The India–EU FTA and Its Potential Impact on India’s Dairy Sector: A Quantitative Analysis

2021 ◽  
pp. 001573252110507
Author(s):  
Anwesha Basu
Keyword(s):  
Dairy Products ◽  
Trade Diversion ◽  
Jel Codes ◽  
Trade Bloc ◽  
Tariff Rates ◽  
Potential Impact ◽  
Set Up ◽  
The Cost ◽  
The Impact ◽  
The Eu

The present study attempts to quantify ex-ante the impact on trade flows, revenue and welfare of the India–EU FTA on India’s dairy sector. In light of the fact that the EU is the world’s largest exporter of dairy products and India’s dairy sector is highly protected, it is important to assess the potential impact that an FTA with EU can have on this sector. Using a partial equilibrium set-up, our simulation results reveal that the estimated increase in India’s imports of dairy products is mainly driven by trade creation rather than trade diversion, implying that the FTA does not promote inefficient dairy trade at the cost of other countries outside the trade bloc. We augment our analysis using the gravity model to estimate the potential increase in dairy sector imports due to trade liberalisation. PPML estimates suggest that a 10% decline in tariff rates leads to a 3.4% increase in the value of imports. While the estimated increase in dairy imports is significant, our analysis indicates that the increased value of imports, expressed as a fraction of India’s domestic output of dairy products, would still be less than 1%. JEL Codes: F13, F14, F17

Was India Right in Not Joining RCEP? A Cost–Benefit Analysis

2021 ◽  
pp. 097492842110477
Author(s):  
Monika Jain
Keyword(s):  
New Zealand ◽  
South Korea ◽  
Free Trade ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Asia Pacific ◽  
Trade Creation ◽  
Asean Countries ◽  
The Cost ◽  
The Impact

India dropped out of the Regional Comprehensive Economic Partnership (RCEP), which included the Association of Southeast Asian Nations (ASEAN) countries, China, South Korea, New Zealand, Japan and Australia, after negotiating for almost seven years in November 2018 on the grounds of national interest and also that free trade agreements (FTAs) did not amount to free trade and led to more trade diversion than trade creation. The cost and benefit of a regional agreement depend on the amount of trade creation with respect to trade diversion (Panagriya, 2000). This study tries to examine India’s concerns and at the same time, highlights the cost of not joining RCEP. India’s trade deficit with 11 out of the 15 RCEP nations has been a major cause of concern. Unfavourable trade balance, concerns about the impact on dairy sector, economic slowdown, past experience with FTA’s, China factor, data localisation, rules of origin, the experience of ASEAN countries with Sino-FTA have been some of the reasons behind India’s decision to opt-out of this mega multilateral agreement. Also, bilateral trade agreements with some RCEP countries such as Japan, Malaysia, Singapore, Thailand and South Korea were operational. A multilateral trade agreement with ASEAN countries was very much in place. So, trade between India and 12 of the RCEP member countries would not have changed much after India’s inclusion in RCEP. The impact of lower tariffs would have been evident for the remaining three countries: China, Australia and New Zealand. Furthermore, there was fear of a massive surge in imports of manufactures from China, dairy imports from Australia and New Zealand. This study also examines the long term impact of this decision and if India has missed out on becoming a part of the global value chain and gaining greater market access in the Asia Pacific region. India’s policy of import substitution and protectionism did not capitulate desired results in the past. Hence, a critical evaluation of India’s decision and some validation on her concerns and fears have been done.

scholarly journals FDI determinants in Europe and Chinese influence

2021 ◽  
Vol 16 (1) ◽  
pp. 21-37
Author(s):  
Alena Dorakh
Keyword(s):  
Trade Costs ◽  
The European Union ◽  
Western Balkans ◽  
Eu Member States ◽  
Eu Membership ◽  
Vertical Fdi ◽  
Belt And Road ◽  
The Cost ◽  
The Impact ◽  
The Eu

Despite recent concerns about the increasing influence of outside investors on the European Union (EU) and Western Balkans, the developed European countries are still a dominant source of foreign direct investment (FDI) in the region, confirming the benefits of EU membership. At the same time, fast-growing connectivity and lower trade costs in accession and neighboring countries determine the FDI growth from China, particularly via the Belt and Road Initiative (BRI). By applying panel data over 2000-2019 for 34 countries, which form 89% of all European FDI, we first examine FDI patterns around Europe, compare the EU, NMS, and Western Balkans; verify the importance of EU membership for FDI, caused reducing trade costs and improving connectivity. Thus, the new EU member states (NMS) and Western Balkans appear both as a home country and as a pre- entry destination to the EU. Then, we calculate trade costs indices for each selected country and partners over time and find that Europe and China are closely interconnected through trade and FDI. It means that stronger ties with China can be realized for the sample countries at the cost of easing relations with the EU. Finally, incorporating trade costs indices into the FDI model; we evaluate the impact of connectivity on FDI and estimate how BRI affected FDI in Europe. Additionally, we validate that the old framework of horizontal and vertical FDI not representative well and even new complex vertical or export-oriented FDI strategies are shifting today.

Logistics Cost Dynamics in International Business: A Causal Approach

2020 ◽  
Vol 55 (4) ◽  
pp. 478-495
Author(s):  
Ashutosh Kar ◽  
Pratyay Ranjan Datta
Keyword(s):  
International Business ◽  
Vital Role ◽  
Logistics Cost ◽  
Middle Income ◽  
Jel Codes ◽  
Middle Income Countries ◽  
The Usa ◽  
Causal Approach ◽  
The Cost ◽  
The Impact

The cost of logistics plays a vital role in the pricing of goods in international trade. Besides, the recent imposition of additional tariff by even upper-middle income countries such as the USA, China etc., has led to an increase in the total landed cost of goods. However, a seller has no option but to adapt to changing tariff requirements and can articulate only the logistics cost to a certain extent. This aspect requires an understanding of the logistics cost dynamics in international business. Since a higher volume of goods moves by marine transportation, this study focusses on the same. In this article, authors have attempted to establish a statistically significant relationship between prices and other factors like fuel, number of vessels, freight, and weight value ratio. The paper introduces a logistics-coefficient to indicate the extent of integration of logistics activities to keep the total-landed-cost (TLC) unchanged. Finally, the author proposes the system dynamics model to study the impact of changes in any one or some or all these factors on the price of the product. This model will enable the global firm to decide the entry and exit in the market. JEL Codes: F23

The Impossible Transplant of the EU Emissions Trading Scheme: The Challenge of Energy Market Regulation

2016 ◽  
Vol 6 (1) ◽  
pp. 59-85 ◽  
Author(s):  
Anatole Boute
Keyword(s):  
Emerging Economies ◽  
Emissions Trading ◽  
Energy Market ◽  
Market Regulation ◽  
The European Union ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Cost ◽  
The Impact ◽  
The Eu

AbstractFollowing the European Union (EU) experience, an increasing number of countries are establishing an Emissions Trading Scheme (ETS). The EU ETS often serves as a ‘model’ despite fundamental differences in the receiving environment. In the EU liberalized energy markets, carbon prices are intended to raise the cost of carbon-intensive energy and thereby stimulate cleaner alternatives. In contrast, many emerging economies continue to regulate energy investments and prices, which may insulate consumers and producers from the impact of an ETS. To avoid this risk, energy economists advocate EU-style energy market reforms as a prerequisite to the introduction of the ETS concept abroad. By focusing on the cases of China, Kazakhstan, and Russia, this article highlights the limits on the exportation of the EU liberalization model and argues that, instead of energy reform, the ETS must be reconceptualized as a mechanism that integrates the regulated energy market paradigm in emerging economies.

scholarly journals Economic-Engineering Modelling of the Buildings Sector to Study the Transition towards Deep Decarbonisation in the EU

Energies ◽  
2019 ◽  
Vol 12 (14) ◽  
pp. 2745 ◽  
Author(s):  
Fotiou ◽  
Vita ◽  
Capros
Keyword(s):  
Energy Efficiency ◽  
Electric Heating ◽  
Heat Pumps ◽  
Climatic Conditions ◽  
Mathematical Framework ◽  
The European Union ◽  
The Cost ◽  
The Impact ◽  
The Eu

The paper presents a newly developed economic-engineering model of the buildings sector and its implementation for all the European Union (EU) Member States (MS), designed to study in detail ambitious energy efficiency strategies and policies, in the context of deep decarbonisation in the long term. The model has been used to support the impact assessment study that accompanied the European Commission’s communication “A Clear Planet for All”, in November 2018. The model covers all EU countries with a fine resolution of building types, and represents agent decision-making in a complex and dynamic economic-engineering mathematical framework. Emphasis is given to behaviours driving the energy renovation of buildings and the ensuing choice of equipment for heating and cooling. The model represents several market and non-market policies that can influence energy decisions in buildings and promote deep energy renovation. Moreover, the paper presents key applications for supporting policies targeting ambitious reduction of energy consumption and carbon emissions in buildings across Europe. The results illustrate that the achievement of ambitious energy-efficiency targets in the long-term heavily depends on pursuing a fast and extensive renovation of existing buildings, at annual rates between 1.21% and 1.77% for the residential sector and between 0.92% to 1.35% for the services sector. In both cases, the renovation rates are far higher past trends. Strong policies aimed at removing non-market barriers are deemed necessary. Electrification constitutes a reasonable choice for deeply renovated buildings and, as a result, almost 50% of households chooses electric heating over gas heating in the long term. However, heat pumps need to exploit further their learning potential to be economical and implementable for the various climatic conditions in Europe. The results also show that the cost impacts are modest even if renovation and decarbonisation in buildings develop ambitiously in the EU. The reduced energy bills due to energy savings can almost offset the increasing capital expenditures. Fundraising difficulties and the cost of capital are, however, of concern.

scholarly journals EU Refugee Crisis Impact on the European Labor Market

2016 ◽  
Vol 22 (2) ◽  
pp. 233-238
Author(s):  
Cezar Braicu
Keyword(s):  
Labor Market ◽  
Refugee Crisis ◽  
Training Costs ◽  
Active Population ◽  
European System ◽  
Level Of Training ◽  
The Cost ◽  
The Impact ◽  
Level Training ◽  
The Eu

Abstract The advent and increasing wave of refugees arrived through various channels in Europe last year produce anxiety both in the EU leadership and in the management and organization of European states. Assessing the impact on the local labor market, on the human resources available and on the cost of insertion on the labor market in the EU it is difficult to quantify at present as long as it is not known what will be the final number of these refugees, the level of training them, and not the least the desire for integration into the European system of life and work. Prospects for reducing the number of active population in the EU in the coming years and increasing the lifetime rate require management organizations to carry out careful studies and to analyze and find solutions to integrate the active refugees in the domestic workforce, to assess the increased level training costs and integration in the local organizational culture and, not the least, the impact on the effectiveness of performed activities.

scholarly journals Unilateral Trade Preferences in the EU: An Empirical Assessment for the Case of Mozambican Exports

2012 ◽  
Vol 2012 ◽  
pp. 1-11
Author(s):  
Xavier Cirera ◽  
Andrea Alfieri
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Developed Countries ◽  
Product Lines ◽  
Export Prices ◽  
Export Margins ◽  
Potential Impact ◽  
Trade Preferences ◽  
The Impact ◽  
The Eu

Unilateral trade preferences are one of the most important instruments offered by developed countries to foster developing country exports. This paper analyzes the impact of unilateral trade preferences on developing countries by focusing on the experience of Mozambique. In this paper, we analyze whether unilateral preferences offered by the EU are “valuable” for Mozambican exporters based on the impact on preferential margins, utilization rates, and export prices. We use a detailed dataset with cif unit values at HS8-digits level covering the period 2000–2007. Our findings indicate that (i) for a large number of product lines, export margins are zero; (ii) utilization rates are generally high; however, (iii) this does not translate into a positive price margins captured by Mozambican exporters compared to MFN competitors. These findings cast doubts on the “value” of preferences and their potential impact on developing country exports.

scholarly journals Design and testing of a full-scale 2 MW tidal turbine blade

2020 ◽  
Author(s):  
Edward Fagan ◽  
Finlay Wallace ◽  
Yadong Jiang ◽  
Afrooz Kazemi ◽  
Jamie Goggins
Keyword(s):  
Web Design ◽  
Full Scale ◽  
Design Study ◽  
Composite Blade ◽  
Cost Of Energy ◽  
Access Programme ◽  
Tidal Turbine ◽  
Set Up ◽  
The Cost ◽  
The Impact

The Large Structures Research Group of MaREI, Orbital Marine Power Ltd and ÉireComposites Teo. have designed a full-scale blade for a next-generation 2 MW tidal turbine as part of the H2020 FloTEC project. The 8.5 m long blade will be tested under static load conditions through the H2020 MaRINET2 transnational access programme and fatigue conditions through the OCEAN ERA-NET SEABLADE project. This paper provides an overview of the initial design study which analysed the impact of using a single shear web or two shear webs in the design. The result of this design study led to optimisation of the laminates throughout the blade to reduce the cost of manufacture and, hence, the levelized cost of energy of the device. The finite element analyses were performed using the MaREI@NUI Galway composite blade design software BladeComp. From the results of the analyses a single web design was chosen for the blade. The present work also describes the set-up for the structural tests and an overview of the data acquisition and instrumentation requirements for full-scale static and fatigue blade testing.

scholarly journals The Peripatetic Nature of EU Corporate Tax Law

2019 ◽  
Vol 24 ◽  
pp. 1-60
Author(s):  
Christiana HJI Panayi
Keyword(s):  
Transfer Pricing ◽  
Tax Law ◽  
Tax Administration ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Base ◽  
Potential Impact ◽  
Set Up ◽  
The Eu

This article examines some aspects of the European Union’s corporate tax set-up which correspond to aspects of a country’s corporate tax regime. The overarching question is whether there is such a thing as EU corporate tax law. This article seeks to address this in the context of the following issues: the existence of a uniform tax base and tax rates; the existence of anti-abuse rules and a transfer pricing regime; and, finally, the existence of a common tax administration and its powers. The article questions whether the peripatetic development of EU corporate tax law is suitable for the EU or whether it undermines its long-term objectives. The potential impact of Brexit in the development of EU corporate tax law is also addressed.

scholarly journals Will Brexit Raise the Cost of Living?

2017 ◽  
Vol 242 ◽  
pp. R37-R50
Author(s):  
Stephen Clarke ◽  
Ilona Serwicka ◽  
L. Alan Winters
Keyword(s):  
Government Policy ◽  
Average Cost ◽  
Structural Characteristics ◽  
Single Parent ◽  
Cost Of Living ◽  
Consumer Prices ◽  
The Uk ◽  
The Cost ◽  
The Impact ◽  
The Eu

This paper considers two aspects of this question. First, Brexit has already induced a devaluation of sterling of around 14 per cent since June 2016, which has started to work through to consumer prices: between June 2016 and July 2017 consumer prices increased by around 2.5 per cent. Second, while it is not government policy, nor the desire of the UK public, that the outcome of negotiations is a ‘MFN Brexit’, this remains a distinct possibility. Thus we ask how the imposition of tariffs on imports from the EU will work through into consumer prices. Making very conservative assumptions, we conclude that ‘MFN Brexit’ will increase the average cost of living by around 1 per cent and increase it for 8 per cent of households by 2 per cent or more. We present results for different groups of households according to their employment and structural characteristics and show that the impact will generally be largest on unemployed, single parent and pensioner households.

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