scholarly journals Relaxing the import proportionality assumption in multi-regional input-output modelling

2021 ◽  
Author(s):  
Simon Schulte ◽  
Arthur Jakobs ◽  
Stefan Pauliuk
Keyword(s):  
International Trade ◽  
Carbon Footprint ◽  
Coefficient Of Variation ◽  
Trade Balance ◽  
Bilateral Trade ◽  
Water Footprint ◽  
Final Demand ◽  
Trade Flows ◽  
Input Output ◽  
Environmental Footprints

Abstract In the absence of data on the destination industry of international trade flows most multi-regional input-output (MRIO) tables are based on the import proportionality assumption. Under this assumption imported commodities are proportionally distributed over the target sectors (individual industries and final demand categories) of an importing region. Here, we quantify the uncertainty arising from the import proportionality assumption on the four major environmental footprints of the different regions and industries represented in the MRIO database EXIOBASE. We randomise the global import flows by applying an algorithm that randomly assigns imported commodities block-wise to the target sectors of an importing region, while maintaining the trade balance. We find the variability of the national footprints in general below a coefficient of variation (CV) of 4\%, except for the material, water and land footprints of highly trade-dependent and small economies. At the industry level the variability is higher with 25\% of the footprints having a CV above 10\% (carbon footprint), and above 30\% (land, material and water footprint), respectively, with maximum CVs up to 394\%. We provide a list of the variability of the national and industry environmental footprints in the online SI so that MRIO scholars can check if a industry/region that is important in their study ranks high, so that either the database can be improved through adding more details on bilateral trade, or the uncertainty can be calculated and reported.

scholarly journals Relaxing the import proportionality assumption in multi-regional input–output modelling

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Simon Schulte ◽  
Arthur Jakobs ◽  
Stefan Pauliuk
Keyword(s):  
International Trade ◽  
Carbon Footprint ◽  
Coefficient Of Variation ◽  
Trade Balance ◽  
Bilateral Trade ◽  
Water Footprint ◽  
Final Demand ◽  
Trade Flows ◽  
Input Output ◽  
Environmental Footprints

AbstractIn the absence of data on the destination industry of international trade flows most multi-regional input–output (MRIO) tables are based on the import proportionality assumption. Under this assumption imported commodities are proportionally distributed over the target sectors (individual industries and final demand categories) of an importing region. Here, we quantify the uncertainty arising from the import proportionality assumption on the four major environmental footprints of the different regions and industries represented in the MRIO database EXIOBASE. We randomise the global import flows by applying an algorithm that randomly assigns imported commodities block-wise to the target sectors of an importing region, while maintaining the trade balance. We find the variability of the national footprints in general below a coefficient of variation (CV) of 4%, except for the material, water and land footprints of highly trade-dependent and small economies. At the industry level the variability is higher with 25% of the footprints having a CV above 10% (carbon footprint), and above 30% (land, material and water footprint), respectively, with maximum CVs up to 394%. We provide a list of the variability of the national and industry environmental footprints in the Additional files so that MRIO scholars can check if an industry/region that is important in their study ranks high, so that either the database can be improved through adding more details on bilateral trade, or the uncertainty can be calculated and reported.

scholarly journals International trade and endogenous standards: the case of GMO regulations

2012 ◽  
Vol 11 (3) ◽  
pp. 415-437 ◽  
Author(s):  
MAURO VIGANI ◽  
VALENTINA RAIMONDI ◽  
ALESSANDRO OLPER
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Bilateral Trade ◽  
Composite Index ◽  
Trade Flows ◽  
Agricultural Products ◽  
Approval Process ◽  
Bilateral Trade Flows ◽  
Gmo Regulation ◽  
Bilateral Differences

AbstractThis paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

A multi-region input-output model for optimizing virtual water trade flows in agricultural crop production

2018 ◽  
Vol 29 (1) ◽  
pp. 63-75 ◽  
Author(s):  
Kathleen B. Aviso ◽  
Sed Anderson K. Holaysan ◽  
Michael Angelo B. Promentilla ◽  
Krista Danielle S. Yu ◽  
Raymond R. Tan
Keyword(s):  
Climate Change ◽  
Water Scarcity ◽  
Crop Production ◽  
Water Footprint ◽  
Virtual Water ◽  
Trade Flows ◽  
Input Output ◽  
Virtual Water Trade ◽  
Content Type ◽  
Economic Productivity

Purpose The onset of climate change is expected to result in variations in weather patterns which can exacerbate water scarcity issues. This can potentially impact the economic productivity of nations as economic activities are highly dependent on water especially for agricultural countries. In response to this, the concepts of virtual water and water footprint have been introduced as metrics for measuring the water intensity of products, services and nations. Researchers have thus looked into virtual water trade flows as a potential strategy for alleviating water scarcity. The paper aims to discuss these issues. Design/methodology/approach Environmentally extended input-output models (IOMs) are often used to analyze interactions between economic and ecological systems. This work thus develops a multi-regional input-output model for optimizing virtual water trade between different geographic regions in consideration of local environmental resource constraints, product demands and economic productivity. Findings A case study on agriculture crop production and trade in different regions of the Philippines is utilized to demonstrate the capabilities of the model. The results show that the optimal strategy does not necessarily limit a water-scarce region to produce less water-intensive crops. Research limitations/implications The model uses an input-output framework whose fixed coefficients reflect a fixed technological state. As such, the model is best used for short-term projections, or projections for mature technological state (i.e. where no major gains in efficiency or yield can be foreseen). Practical implications The proposed modeling framework can be used in any geographic region (provided relevant statistical data are available for calibration) to provide decision support for optimal use of limited water resources. Originality/value The model proposed in this work has general applicability to the optimal planning of agro-industrial systems under water footprint constraints. This modeling approach will be particularly valuable in the future, as climate change causes changes in precipitation patterns and water availability.

scholarly journals Virtual water trade and water footprint of agricultural goods: the 1961–2016 CWASI database

2021 ◽  
Vol 13 (5) ◽  
pp. 2025-2051
Author(s):  
Stefania Tamea ◽  
Marta Tuninetti ◽  
Irene Soligno ◽  
Francesco Laio
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Water Footprint ◽  
Temporal Evolution ◽  
Virtual Water ◽  
Unit Weight ◽  
Local Production ◽  
Virtual Water Trade ◽  
Definition Of ◽  
Country Specific

Abstract. To support national and global assessments of water use in agriculture, we build a comprehensive database of country-specific water footprint and virtual water trade (VWT) data for 370 agricultural goods. The water footprint, indicating the water needed for the production of a good including rainwater and water from surface water and groundwater bodies, is expressed as a volume per unit weight of the good (or unit water footprint, uWF) and is here estimated at the country scale for every year in the period 1961–2016. The uWF is also differentiated, where possible, between production and supply, referring to local production and to a weighted mean of local production and import, respectively. The VWT data, representing the amount of water needed for the production of a good and virtually exchanged with the international trade, are provided for each commodity as bilateral trade matrices, between origin and destination countries, for every year in the period 1986–2016. The database, developed within the CWASI project, improves upon earlier datasets because it takes into account the annual variability of the uWF of crops, it accounts for both produced and imported goods in the definition of the supply-side uWF, and it traces goods across the international trade up to the origin of goods' production. The CWASI database is available on the Zenodo repository at https://doi.org/10.5281/zenodo.4606794 (Tamea et al., 2020), and it welcomes contributions and improvements from the research community to enable analyses specifically accounting for the temporal evolution of the uWF.

Alliances, Preferential Trading Arrangements, and International Trade

1997 ◽  
Vol 91 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Edward D. Mansfield ◽  
Rachel Bronson
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Major Power ◽  
Political Incentives ◽  
Bilateral Trade Flows ◽  
Quantitative Analyses ◽  
Preferential Trading ◽  
Preferential Trading Arrangements ◽  
Type Of Institution

We analyze the effects of alliances and preferential trading arrangements on bilateral trade flows. Both factors are likely to promote trade among members, but we argue that the interaction between them is central to explaining patterns of commerce. The combination of an alliance, which creates political incentives for participants to engage in trade, and a commercial institution, which liberalizes trade among members, is expected to provide a considerable impetus to commerce among parties to both. The results of our quantitative analyses support these arguments. Both alliances and preferential trading arrangements strongly affected trade from 1960 to 1990, and allies that included a major power conducted considerably more trade than their nonmajor-power counterparts. Moreover, the interaction between alliances and preferential trading arrangements is fundamental to explaining patterns of bilateral commerce: Parties to a common preferential trading arrangement and a common alliance engage in markedly greater trade than do members of either type of institution but not both.

scholarly journals Determining the economic impact of cryptocurrency adoption on international trade from a gravity model framework

2021 ◽  
Author(s):  
Eric R. Chen
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Global Economy ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Regression Analyses ◽  
Model Framework ◽  
Aggregated Data ◽  
Weak Institutions ◽  
Bilateral Trade Flows

As cryptocurrencies develop and circulate at greater rates, countries have appeared to consider the technology as an adoptable medium of exchange. By expanding the influence of cryptocurrencies through adoption, countries raise its impact on the global economy. This paper is the first to apply an augmented version of the gravity model to examine the effects of global cryptocurrency adoption on international trade. This empirical study involves aggregating datasets on U.S. bilateral trade flows, gravity variable statistics, and the adoption of cryptocurrencies. In application of the gravity model, regression analyses are used on the aggregated data to test the magnitude of cryptocurrencies’ impact on trade. Based on the overall findings, the variables for cryptocurrency adoption produce negative coefficients suggesting a negative correlation between the adoption of cryptocurrencies and international trade. The central tendency in the empirical evidence offers the interpretation that countries with weak institutions to promote trade are more likely to adopt cryptocurrencies resulting in a negative association between cryptocurrency adoption and trade.

scholarly journals ANALYSIS OF GEOGRAPHIC DISTANCE EFFECTS ON INTERNATIONAL TRADE FLOWS AS A PUBLIC POLICY: EVIDENCE FROM EAC AND NAFTA COUNTRIES.

2015 ◽  
Vol 10 (10) ◽  
pp. 2540-2549
Author(s):  
Laetitia Byukusenge ◽  
Song Wei ◽  
Delphine Tuyishime
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Bilateral Trade ◽  
Geographic Distance ◽  
Developed Countries ◽  
Trade Flows ◽  
Trade Barriers ◽  
Middle Income ◽  
Distance Effects ◽  
Bilateral Trade Flows

Previous studies have shown that the geographic distance is among the factors that can typically results in diminished trade flows between two or more countries. As the international trade is one among the public policies, the governments of countries have to take control policies about their imports and exports after signing some trade contracts or agreements of eliminating trade barriers between trade countries. This paper analyzes and compares how the geographic distance affects the international trade flows of developed and developing countries‟ economies and becomes the obstacle to the developing countries to achieve their objectives and goals in eliminating trade barriers between their trading partners. The gravity model with panel data sets for period of 2008 to 2011 are used to determine the geographic distance effects in those countries. The sample size is bilateral trade flows of eight developing countries with lower income of EAC and two developed countries and one developing country with middle income of NAFTA. The study discovers that the various factors influence the geographic distance effects on international trade flows of developed and developing countries in different ways. This paper recommends that the signed policies between countries should be observed, maintained and followed in order to achieve expected objectives.

scholarly journals Structure Decomposition Analysis of the Carbon Footprint Differences between Beijing and Tianjin

2013 ◽  
Vol 734-737 ◽  
pp. 1960-1963 ◽  
Author(s):  
Yan Wang ◽  
Hui Zhang ◽  
Tie Ying Wang
Keyword(s):  
Co2 Emissions ◽  
Carbon Footprint ◽  
Service System ◽  
Decomposition Analysis ◽  
Final Demand ◽  
Total Carbon ◽  
Input Output ◽  
Full Life Cycle ◽  
Structure Decomposition ◽  
Relationship Of

Carbon footprint is the total amount of CO2 emissions by particular product or service system in it full life cycle, or, it is the total amount of direct and indirect CO2 emissions by activity principals. There are significant differences of provincial total carbon footprint result from the different energy efficiency, final demand and input-output relationship of intermediate products. Based on the Structure Decomposition Analysis and input-output model, the differences of carbon footprint between Beijing and Tianjin are analyzed in this paper. The results show that the total carbon footprint is higher in Beijing than that in Tianjin. The effect of carbon emission intensity on carbon footprint in Beijing is lower than Tianjin by 0.008 billion tons CO2; according to the complicated relationship between industries in Beijing, there is 0.029 billion tons CO2 more the carbon footprint than Tianjin, The demand scale and structure is higher than Tianjin, So in the factors of final requirements on carbon footprint, the carbon footprint of Beijing is higher than Tianjin by 0.058 billion tons CO2.

scholarly journals Social Development and International Trade in Central Europe

Equilibrium ◽  
2012 ◽  
Vol 7 (2) ◽  
pp. 7-19
Author(s):  
Andrzej Cieślik ◽  
Jan Jakub Michałek ◽  
Jerzy Mycielski
Keyword(s):  
International Trade ◽  
Social Development ◽  
Bilateral Trade ◽  
Empirical Studies ◽  
Trade Flows ◽  
Development Indicators ◽  
Trading Partners ◽  
Bilateral Trade Flows ◽  
Standard Set ◽  
The Impact

In this paper we study the impact of social development on international trade in Central and Eastern Europe using the generalized gravity model. Many previous empirical studies which explored the determinants of trade flows, concentrated only on traditional gravity variables, such as the size of trading partners, factor abundance, technology differences or distance. In our study, in addition to the standard set of gravity variables, we examine the role of aggregate social development indicators such as Human Development Index and its components. Our results show that both aggregate and disaggregate measures of social development affect the volume of international trade flows. In particular, the education indexes seem to be positively related to bilateral trade flows.

scholarly journals A regional perspective on the spatial concentration in Romania’s international trade in 2011

2012 ◽  
Author(s):  
Ancuta Stangaciu
Keyword(s):  
International Trade ◽  
Trade Balance ◽  
Graphical Representation ◽  
Trade Flows ◽  
Point Of View ◽  
Spatial Concentration ◽  
Coverage Ratio ◽  
Development Region ◽  
Territorial Structure ◽  
Import Trade

In this study, I aimed at analyzing the territorial structure of the international trade in Romania in 2011 on the level of each development region. Starting from the values of the export and import trade flows pertaining to each region of Romania and using statistical methods of analysis, we processed the existing data in order to determine the distribution of foreign trade and to emphasize the regional poles of competitiveness from this point of view. Since other indexes, such as the trade balance or the import/export coverage ratio, are also marks of competitiveness and of the increase or decrease in the performance of a certain economy, we also calculated these indexes for each region of the country. In order to statistically substantiate the existence of a certain degree of spatial concentration of the Romanian international trade in different regions of the country, we resorted to the boxplot graphical representation and to the Gini square and the Gini index respectively.

Sign in / Sign up

Export Citation Format

Share Document