The Link of Intra-Industry Trade with Foreign Direct Investments

2018 ◽  
Vol 56 (3) ◽  
pp. 357-368
Author(s):  
Vesna Petrović ◽  
Ivan Mirović
Keyword(s):  
International Trade ◽  
Capital Flows ◽  
Development Policy ◽  
Empirical Work ◽  
Foreign Direct Investments ◽  
Specific Time ◽  
Economic Relations ◽  
Industry Trade ◽  
Time Period ◽  
International Economic Relations

Abstract International trade quite often includes intra-industry trade (IIT) – definition classifies IIT as trading with similar goods or services belonging to the same industry; which are simultaneously imported and exported by a particular country during the specific time period, mainly on a yearly basis. On the other hand, foreign direct investments (FDI) directly influence international trade, and intra-industry trade, as well. According to the recent research during last decades a revival of interest in intra-industry trade has been noted; both on micro and macro level. The standard Grubel-Lloyd formula is still being used for empirical work. This however refers only to international trade, disregarding capital flows, and FDI. Given the overwhelming importance of the latter, this paper tries to research for relevant data in this regard. The objectives of the paper are to present fundamental theoretical framework linked to IIT, and more specifically to research a direct link that IIT and FDI form in contemporary international economic relations. In addition to presented theory related to the subjects of research, further observation includes analysis of empirical research and case studies. This enables the authors to draw conclusions and, therefore, suggest potential implications for development policy.

scholarly journals POLITICAL AND ECONOMIC CONTENT OF THE THEORY OF INTERNATIONAL TRADE

2021 ◽  
Vol 118 (5) ◽  
pp. 48-65
Author(s):  
ONYSHCHENKO Volodymyr
Keyword(s):  
International Economic ◽  
Political Economy ◽  
International Trade ◽  
Trade Policy ◽  
State Level ◽  
Trade Theory ◽  
Economic Relations ◽  
International Economic Relations ◽  
The Subject ◽  
The Impact

Background. Dynamic changes in international economic relations and trade for thorough analysis and forecasting require an adequate paradigm of international trade theory, which would take into account not only economic and political factors of its development, but also the diverse civilizational context of the world community, which determines mental, social and cultural features of the development of a country. Problem research state. Problems of political economy in international trade to some extent affect the research of P. Krugman, M. Obstfeld, J. Frieden, E. Helpman, P. S. Afontsev, A. Mazaraki, T. Melnyk, V. Panchenko, N. Reznikova and others. But the structure of its methodological discourse and the subject of its research remain unclear. The aim of the articleis to clarify the political and economic discourse of the theory of international trade. Materials and methods. The materials of the research were the works of domestic and foreign specialists. In the process of preparing the article, general scientific research methods were used: historical, logical analysis, synthesis and abstraction. Results. Political economy is a normative manifestation of economic theory, which is formed under the influence of socio-economic and political concepts, the formed goals of social development. The subject of political economy of international trade – economic and socio-political relations that determine and accompany international trade and determine the goals and content of trade policy of its subjects. It is proposed to expand the mechanism of formation of relative advantages and trade policy of the country by including factors that determine not only its economic potential and specialization, but also the risks that may be caused by political decisions. It is argued that the problem of «protectionism vs liberalism» in international trade at the state level will always exist. It turns out that the problem of justice in international economic relations and trade is determined by the civilizational content of the development of countries, in which human capital plays a crucial role. Conclusion. The paradigm of political economy in international trade should be based on an expanded interpretation of relative benefits by assessing the impact of economic, social and political institutionson them, the peculiarities of national trade policies.

The Jurisprudence of International Trade: The Disc Case in Gatt

1978 ◽  
Vol 72 (4) ◽  
pp. 747-781 ◽  
Author(s):  
John H. Jackson
Keyword(s):  
International Economic ◽  
International Trade ◽  
International Relations ◽  
Economic Relations ◽  
International Economic Relations

Law in the setting of international relations is a curious institution. Idealists proclaim it to be the potential savior of the planet; cynics thumb their noses at it and direct attention to the difficulty of enforcing its rules. Even in the more regularized setting of international economic relations there is considerable ambiguity and conflict as to the role which law or rules should play, and much worry that recent economic stresses are creating a breakdown in the compliance with those few rules that do exist. Such breakdown can, it is alleged, lead at worst to trends similar to corresponding breakdowns in the 1930’s, or at least to the loss of one otherwise effective implement of diplomacy (rulemaking). Why negotiate new treaty rules if there is little chance they will be observed?

Impact of Saudi's Membership in Global and Arab Economic Blocs on its Agricultural Foreign Trade

2021 ◽  
Vol 9 (4) ◽  
pp. 230-245
Author(s):  
Rehab Said Ibrahem ◽  
Eman Aish Al brahim
Keyword(s):  
Foreign Trade ◽  
Secondary Data ◽  
Economic Stability ◽  
Kingdom Of Saudi Arabia ◽  
Factors Affecting ◽  
Economic Relations ◽  
Agricultural Exports ◽  
Time Period ◽  
International Economic Relations ◽  
The Impact

In recent years, the world has witnessed many changes in international economic relations, and the global system has crystallized into major economic blocs aimed at strengthening the position of these blocs in the framework of global international trade and economic stability. Accordingly, the research aims to study the impact of the accession of the Kingdom of Saudi Arabia to the membership of some economic blocs on Saudi agricultural foreign trade during the time period (1995-2019). By depend on both descriptive and quantitative statistical analysis. To study the evolution of the value of agricultural exports and imports and the most important factors affecting each of them, used of some indicators of export competitiveness such as a measure of geographical and commodity concentration. Also used the simultaneous equations method to build an econometric model to analyze the structure of agricultural foreign trade and its estimation by Two-Stage least squares (2SLS) method, the paper predicts the future of Saudi agricultural foreign trade. The research relied on secondary data. The results of the study expect that the average per capita share of agricultural exports, imports and agricultural Balance Deficit will reach about 600, 3.600 and 2.900 thousand riyals, respectively, during the year 2026.

Economic and Social Council

1954 ◽  
Vol 8 (3) ◽  
pp. 360-372
Keyword(s):  
International Economic ◽  
New York ◽  
International Trade ◽  
Vice Presidents ◽  
Economic Relations ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Social Council ◽  
International Economic Relations

At its seventeenth session, held in New York from March 30 through April 30, 1954, the Economic and Social Council elected Juan Cooke (Argentina), president and Sir Douglas Copland (Australia) and Jiri Nosek (Czechoslovakia) first and second vice-presidents respectively. The Council approved an agenda of 24 items; three items on the provisional agenda were deferred to the eighteenth session: the organization and operation of the Council and its commissions, the election of members of the Council Committee on Non-Governmental Organizations, and the removal of obstacles to international trade and means of developing international economic relations.

scholarly journals CURRENT TRENDS IN THE STRUCTURE OF INTERNATIONAL TRADE IN VIEW OF THE BASIC THEORIES OF INTERNATIONAL TRADE

2021 ◽  
Author(s):  
Anastasiia Artyomova
Keyword(s):  
International Economic ◽  
International Trade ◽  
World Economy ◽  
Financial System ◽  
Present Stage ◽  
Economic Relations ◽  
Current Trends ◽  
International Economic Relations ◽  
The World ◽  
Factors Of Production

The article outlines the main trends in the structure of international trade at the present stage and indicates in general the reasons for such changes. International trade as the main form of international economic relations at the present stage of development mediates almost all types of international cooperation associated with the globalization of the world economy. Both the positive aspects of globalization, which allow the most active development of all forms of international economic relations, and the negative ones, which manifested themselves in the context of the global financial crises, were noted. The essence of the main theories of international trade development (such as the theory of absolute advantages, the theory of comparative advantages, the theory of the ratio of factors of production, Keynesian theory), which traces the relationship with the formation of the world economy. Based on the analysis of data from the International Monetary Fund, the following current trends are substantiated: first, the real economy is developing more slowly than the financial system; secondly, the interconnection of financial systems in connection with the processes of global integration of economic elements has increased, which increases the risk of a “chain reaction”; third, the financial system is becoming increasingly complex due to the variety of instruments and operations. We explain the main provisions of the theory of factors of production as explaining the main trends in the structure of international trade. First, a gradual decrease in the value of the marginal utility of each additional cost of factors of production is allowed. Secondly, the same structure of consumption, the same tastes and habits of the population, the same production conditions of producers, constant tariffs, transportation and other costs. All this, of course, in our subjective opinion, fits into the total system of globalization, international industrial cooperation and economic integration of countries, the consequences of which are the outlined trends in the structure of the international economy.

scholarly journals SITUATION AND PROSPECTS OF CUSTOMS POLICY AND AGENCY IN BULGARIA

2019 ◽  
Vol 17 (Suppl.1) ◽  
pp. 294-298
Author(s):  
Iskra Nencheva - Ivanova
Keyword(s):  
International Trade ◽  
Optimal Strategies ◽  
Trade Flows ◽  
External Trade ◽  
Trade Patterns ◽  
Economic Relations ◽  
Bilateral Relations ◽  
Global Trend ◽  
International Economic Relations ◽  
Speed Up

The intense and multilateral development of international trade requires that optimal strategies are introduced into customs practice to simplify and speed up the customs process. The alignment of international customs legislation and the consolidation of unified technologies to customs control is a global trend validating in favor of current customs administrations and contemporary international trade patterns. The development of this process requires the use of various forms of mediation between the trader and the customs authority. They appear to be an objective need of both sides in these relationships. The dynamics of the external trade flows presupposes that customs clearance takes place within regulated deadlines and at different geographic points, which of course necessitates a knowledge of at least two customs laws because the contemporary aspects of international economic relations have long gone beyond bilateral relations.

scholarly journals JAPAN IN INTERNATIONAL CAPITAL MOVEMENT

2016 ◽  
pp. 274-285
Author(s):  
S. M. Rebrey
Keyword(s):  
International Economic ◽  
Capital Flows ◽  
Direct Investment ◽  
International Capital Flows ◽  
Capital Movement ◽  
International Capital ◽  
Global Trends ◽  
Economic Relations ◽  
International Economic Relations ◽  
Analysis Of Dynamics

Japan, the largest net exporter of investment plays one of key roles in the in-ternational capital flows and has a serious impact on the global trends in this important dimension of international economic relations. Vast amounts of for-eign direct investment (FDI) outflow are important for the Japanese national economy as well, since Japanese overseas production in some areas reaches 40% and is an important part of its industrial potential. However, FDI inflow remains low, indicating an unbalanced participation of Japan in the international capital flows. Japan in international capital flows presents a field for complex numerous research. This article concentrates on analysis of dynamics and geographical structure of capital flows, reveal the trends, and estimate the effect of Abenomics.

scholarly journals International Economic Relations: Integration Associations and Ukraine in the Global System of International Trade

2021 ◽  
Vol 39 (7) ◽  
Author(s):  
Vitalina Babenko ◽  
Olga Poplavska ◽  
Mykola Tkach ◽  
Mykhailo Sidorov ◽  
Viktoria Ovchynnikova ◽  
...  
Keyword(s):  
International Economic ◽  
Cluster Analysis ◽  
International Trade ◽  
Functional Dependencies ◽  
International Integration ◽  
Global System ◽  
Homogeneous Groups ◽  
Economic Relations ◽  
International Economic Relations ◽  
The World

On the basis of cluster analysis, homogeneous groups of international integration associations of the world have been established and their structure has been determined. This made it possible to determine the objective position between the integration associations and Ukraine in the global system of international trade. The functional dependencies of development of the international integration are calculated, and the most informative factors are determined. The results of the research are the basis for analyzing the problems and prospects for the development of Ukraine's integration in the global system of international trade.  

scholarly journals For a political economy of financialization: theory and evidence

2017 ◽  
Vol 26 (spe) ◽  
pp. 829-856 ◽  
Author(s):  
José Carlos Braga ◽  
Giuliano Contento de Oliveira ◽  
Paulo José Whitaker Wolf ◽  
Alex Wilhans Antonio Palludeto ◽  
Simone Silva de Deos
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Flows ◽  
Central Banks ◽  
Financial Assets ◽  
Market Institutions ◽  
Economic Relations ◽  
Bretton Woods ◽  
International Economic Relations ◽  
The Relationship

Abstract The end of the Bretton Woods agreement led not only to changes in the international economic relations, but also in the very way in which capitalism functions. The liberalization of capital flows and deregulation and integration of financial markets under US leadership gave rise to a new systemic pattern of wealth, financialization, in which operations with financial assets received increased importance in the management of wealth by households and enterprises, and not only by banks and the other financial market institutions. Unlike most recent interpretations of this phenomenon, this one does not indicate a tendency of the system towards stagnation, but rather an increase in the instability that characterizes it, reinforcing the moments of expansion, contraction, as well as leading to crises. In fact, with the generalization and the dominance of finance, borrowing and spending decisions by enterprises and households are now increasingly responsible for current and expected fluctuations in the stock of wealth, which in turn are responsive to current and expected fluctuations in the prices of financial assets. This implies a transformation in the relationship between the state and the market, with central banks and national treasures becoming hostage to the need to prevent private losses and the perverse effects they may exercise over output, income and employment levels of the economy.

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