International trade in developing economies

2021 ◽  
pp. 4-21
Keyword(s):  
International Trade ◽  
Developing Economies

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.

POSSIBILITIES OF REALIZATION OF SERVICE SECTOR POTENTIAL IN THE GLOBAL ECONOMY

2021 ◽  
Author(s):  
Oksana Melnichuk
Keyword(s):  
International Trade ◽  
Gross Domestic Product ◽  
Global Economy ◽  
World Economy ◽  
Service Sector ◽  
Developing Economies ◽  
Domestic Product ◽  
Trade In Services ◽  
Services Sector ◽  
The World

The relevance of the study is due to the growing role of services in the world economy. Trade in services has become the dominant driver of economic growth and development in both developed and developing economies. Since the 1980s, data suggest that there is a stronger relationship between trade in services and gross domestic product (GDP) than in the case of commodity growth and GDP. It is noted that the quality of policies, regulations and institutional frameworks is a key factor in determining the effectiveness of services. As services are increasingly subject to liberalization through multilateral and regional trade agreements, it is important that countries develop harmonized approaches to internal regulation and trade liberalization in the services sector. The article identifies the features and characteristics of the service sector as a factor of multifaceted development and growth. The dynamics of international trade in services by geographical structure and types of development of countries is studied on the basis of statistical data of international organizations, taking into account the impact of the pandemic. It is noted that international trade in services is becoming an increasingly important part of global commerce. The problematic aspects of the activity of small business entities to enter foreign markets of services are considered. The issue of urgency of digital economy development for the sphere of services and contribution to world markets is outlined. Opening up the services sector has the potential to bring great benefits and deserves more attention. Further prospects for the realization of entrepreneurial potential in a comprehensive global economy are outlined. It is noted that services are an important part of the world economy, generating more than two-thirds of world gross domestic product (GDP), attracting more than three-quarters of foreign direct investment in developed economies, and creating most of new jobs worldwide. Establishing effective coordination mechanisms between trade negotiators, policymakers and regulators will be an important tool for the development of the global economy.

scholarly journals Peak of SO2 Emissions Embodied in International Trade: Patterns, Drivers and Implications

2021 ◽  
Vol 13 (23) ◽  
pp. 13351
Author(s):  
Bin Wang ◽  
Dechun Huang ◽  
Chuanhao Fan ◽  
Zhencheng Xing
Keyword(s):  
International Trade ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Decomposition Analysis ◽  
Energy Structure ◽  
So2 Emissions ◽  
Trade Patterns ◽  
Developed Economies ◽  
Production And Consumption

International trade links countries consuming goods and services to those where products and related SO2 pollution are produced, thereby affecting national mitigation responsibilities. This study combined accounting and decomposition techniques to investigate the patterns and drivers of SO2 emissions embodied in international trade from 1995 to 2015 and quantified the contribution of each country or region on the production and consumption sides. The global embodied emissions increased at an accelerated rate before the global financial crisis and peaked at 51.3 Mt in 2008, followed by a fluctuating decline from 2008 to 2015. Spatially, the transfers of SO2 emissions tended to flow from developed countries to less developed ones, but the trend has weakened after the financial crisis. Our decomposition analysis suggests that the energy and production system transitions and the slowdown in international trade jointly accounted for the peak and decline in emissions. Our contribution analysis indicates that developing economies have contributed to decreased emissions due to their recent efforts in production technology upgrading, energy efficiency improvement and energy structure optimization. The influence of developed economies on emissions decreased due to their reduced dependency on imports. Targeted policy methods are provided from the production and consumption perspectives for developing and developed economies, respectively.

Endogenous thresholds for the determinants of FDI inflows: evidence from the MENA countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatma Taşdemir
Keyword(s):  
International Trade ◽  
Financial Development ◽  
Natural Resource ◽  
Developing Economies ◽  
Emerging Market ◽  
Push Factors ◽  
Fdi Inflows ◽  
Content Type ◽  
Financial Depth ◽  
Determinants Of Fdi

PurposeThis paper investigates the main drivers of foreign direct investment (FDI) inflows for a balanced panel of 11 Middle East and North Africa (MENA) economies over the 1995–2017 annual period. The author postulates that the impacts of the main pull (growth) and push (global financial conditions, GFC) factors may not be invariant to endogenously estimated thresholds for structural domestic conditions (SDCs) including trade and capital account openness, financial development, human capital (HC) and natural resource endowments.Design/methodology/approachThe author investigates whether the main SDC provide endogenous thresholds for the impacts of basic pull and push factors on FDI inflows for the MENA sample by employing panel fixed effects threshold procedure of Hansen (1999). As a robustness check, the author also present the results of the dynamic panel data two-step system generalized method of moments (GMM) estimation, which explicitly consider the potential endogeneity of SDC along with main pull factor for the evolution of FDI inflows.FindingsGrowth, GFC and SDC are important drivers of FDI inflows. The impacts of SDC tend to be higher in countries with higher financial depth, openness to international trade and finance and lower natural resource and HC endowments. The sensitivities of FDI inflows to GFC are substantially higher in the countries which are more open to international trade and capital flows and higher levels of financial depth. FDI inflows are found to be pro-cyclical and this pro-cyclicality tends to be much higher for the episodes exceeding the SDC thresholds.Practical implicationsImproving SDC including higher openness to international trade and finance and financial development may be effective in encouraging FDI inflows. The findings support an argument that, better SDC are crucially important not only for attracting FDI but also achieving the growth benefits of FDI inflows. Therefore, improving SDC appears to be an important growth-oriented policy agenda for emerging market and developing economies (EMDEs) including MENA.Originality/valueThe impacts of the main push and pull factors on FDI (and capital) inflows may be nonlinear. The literature often tackles the nonlinearity issue either by some interaction specifications or imposing exogenous thresholds. The literature, however, is yet to comprehensively investigate whether the main SDC provide endogenous thresholds for the impacts of basic pull and push factors. The author aims to contribute to the literature by estimating endogenous SDC threshold levels for the impacts of the main determinants of FDI flows for MENA.

scholarly journals Trade Liberalization: Is It Desirable for All Developing Economies?: A Literature Review

2019 ◽  
Vol 10 (3) ◽  
pp. 199
Author(s):  
Mehmet Huseyin Bilgin
Keyword(s):  
Economic Theory ◽  
Developing Countries ◽  
International Trade ◽  
Literature Review ◽  
Trade Liberalization ◽  
Free Trade ◽  
Developing Economies ◽  
Good For

Economic theory says all countries benefit from free international trade. However, does this belief tell the whole story? Can all countries indeed benefit from free trade? For instance, is it any good for developing countries? In the literature, there are many studies and some of them present ideas against free trade. In this paper, we strive to provide a brief of the literature on developing economies.

International Trade in Cotton Textiles and the Developing Countries: Problems -mid Prospects. Report by the UNCTAD Secretariat. New York: United Nations. 1974.

1974 ◽  
Vol 13 (3) ◽  
pp. 361-362 ◽  
Author(s):  
A. R. Kemal
Keyword(s):  
New York ◽  
Developing Countries ◽  
International Trade ◽  
United Nations ◽  
Foreign Exchange ◽  
Comparative Advantage ◽  
Developing Economies ◽  
Developed Countries ◽  
Cotton Textiles ◽  
The Developed Countries

Foreign exchange is one of the major constraints to the growth of the -developing economies. However, demand for primary commodities—main exports of the developing economies—is inelastic. Moreover, the developed countries have put restrictions on imports, from developing countries, of manu¬factured products in which the latter have comparative advantage, e.g., cotton textiles. The Report under review studies the problems of exports from the developing countries in considerable details.

scholarly journals Developing economies and the Asia-Pacific economic cooperation forum-APEC: intrabloc trade and attraction of foreign direct investment from region

2008 ◽  
Vol 13 (24) ◽  
pp. 81-112
Author(s):  
Christian Rodríguez ◽  
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Developing Economies ◽  
Economic Cooperation ◽  
Asia Pacific ◽  
Asia Pacific Economic Cooperation ◽  
The Creation ◽  
Economic Bloc ◽  
Fdi Attraction

Since one of the main goals of the APEC is to facilitate the international trade and investments among its members, it is said that taking over APEC presidency (as Peru in 2008), will contribute to foster trade and attract investments from member economies. But, is there any pattern which allows quantifying the benefi ts resulting from this kind of commitment? After evaluating the trade statistics of APEC developing economies ever since the creation of the Forum in 1989, it can be inferred that presiding APEC does not guarantee an increase in its trade with the rest of APEC economies. Right after hosting the summit, its imports grow higher compared with its exports, but there is not any conclusive information on the growth of foreign direct investment (FDI). Nevertheless, even though the growth of trade and FDI attraction from APEC other member economies does not rely exclusively on taking over the Forum’s Presidency, this commitment is a unique opportunity to promote trade with the planet’s most important economic bloc.

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