scholarly journals The impact of global institutionalization within the WTO on foreign trade flows, the case of Ukraine

2019 ◽  
Keyword(s):  
Foreign Trade ◽  
Institutional Environment ◽  
Positive Impact ◽  
Trade Flows ◽  
Gravity Models ◽  
Institutional Framework ◽  
Institutional Variables ◽  
Global Competitiveness ◽  
Trade Area ◽  
The Impact

Since the establishment of the World Trade Organization (WTO) as the main institutionalizing force in the trade area more than 20 years ago, developing countries have sought to gain special recognition and treatment within the multilateral system in order to solve their structural and systemic problems.However, the impact of global institutionalization within the WTO on member-countries’ foreign trade remains debatable. The subject of research of the article is the impact of global institutionalization within the WTO on Ukraine’s foreign trade flows. The objective is to evaluate the impact the global institutionalization within the WTO has on the foreign trade of Ukraine and develop a roadmap for national institutional environment improvement. The main method used is gravity modelling.Heritage Foundation’s Index of Economic Freedom, World Economic Forum’s Index of Global Competitiveness and World Bank’s world gavernance indicators are used separately in constructed models as institutional variables. All the models also include dummy variables, which indicate WTO – or RTA-membership of two countries. The sample includes all the countries, which have been trade partners of Ukraine during last 20 years. The following results were obtained:6 gravity models areconstructed, which allowes to calculate the possible percentage of Ukraine’s exports increase due to the enhancement of Ukraine’s institutional variables to theaverage European level and develop a roadmap for national institutional framework improvement. Conclusions: the calculated percentage of increase proves that the global institutionalization within the WTO may have a a positive impact on Ukraine’s foreign trade flows, gravitaty modelling helps in determining how Ukraine’s national institutional framework can be improved.

The impact of the institutional environment on green consumption in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naman Sreen ◽  
Rambalak Yadav ◽  
Sushant Kumar ◽  
Mark Gleim
Keyword(s):  
Large Scale ◽  
Online Survey ◽  
Survey Methodology ◽  
Institutional Environment ◽  
Positive Impact ◽  
Theoretical Perspective ◽  
Institutional Framework ◽  
Content Type ◽  
Green Consumption ◽  
The Impact

Purpose This paper aims to develop an institutional framework to examine the role of governmental and social pressures on green product purchase intentions. Because of the increased focus on environmental issues in emerging markets, an examination of the institutional environment in India can provide unique insights into the drivers of green consumption. Design/methodology/approach A large-scale data collection is conducted via an online survey to test the validity of the theorized model. A survey methodology is used to collect responses from a sample of 400 consumers in India and analyzed via Smart PLS 3.0. Findings The findings suggest moral norms, injunctive and descriptive, have varying influences on consumers. Further, governmental influence, at least in India, may not have a positive impact one would expect. The results indicate the institutional framework developed in this research has a good predictive ability in green marketing settings and offers insights for businesses and policymakers to enhance consumers’ motivations to purchase green products. Originality/value From a theoretical perspective, this research is the first to examine the institutional environment on green consumption in India and provides unique insights into the influences of green consumption. The results suggest the institutional environment in India presents unique opportunities for practitioners and policymakers.

scholarly journals Evaluating the effect of various institutions on foreign trade of selected countries

2020 ◽  
Vol 6 (Extra-A) ◽  
pp. 277-288
Author(s):  
Rahman Mirzaeian ◽  
Kiomars Sohaili ◽  
Seyed Mohammad Bagher Najafi ◽  
Jamal Fathollahi
Keyword(s):  
Foreign Trade ◽  
Positive Impact ◽  
Annual Data ◽  
Durability Test ◽  
Institutional Variables ◽  
Panel Model ◽  
Different Types ◽  
Market Stabilization ◽  
And Control ◽  
The Impact

In this article, the effectiveness of various legal institutions, including market-creating institutions, market-regulating institutions, market-stabilizing institutions, and market-legitimizing institutions, the business has been accurately quantified based on scientific theories. To quantify the impact of institutional variables The required annual data related to these variables for the period 2014-2005 have been collected in selected countries. The data panel model has been used to estimate the effect of independent and control variables on the dependent variable of foreign trade. Before estimating the model, pre-estimation tests including the Durability test, etc., and F-Limer tests were performed to determine whether the model was integrated. The results of estimating the models regarding the effectiveness of different types of institutions show that; the impact of market regulators on trade in both groups of countries is positive and significant and the impact of market stabilization institutions on foreign trade has a positive impact only in the group of Asian countries, with the increase in the levels of this type of institutions, the share of trade in this group of countries increases.

Gravity Models of China's Bamboo and Rattan Products Exports: Applications to Trade Potential Analysis

2019 ◽  
Vol 69 (4) ◽  
pp. 337-344
Author(s):  
Li Huang ◽  
Ke Chen ◽  
Mi Zhou ◽  
Brendan Nuse
Keyword(s):  
Bilateral Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Flows ◽  
Gravity Models ◽  
Asia Pacific ◽  
Trading Partners ◽  
Significant Negative Impact ◽  
Trade Potential ◽  
Economic Size

Abstract Using export panel data for China and 24 bamboo and rattan trading partners from 2007 to 2017, this study simulates the export trade of Chinese bamboo and rattan products using a gravity model. Our results showed that economic size has a significant positive impact on the bilateral trade of bamboo and rattan products, while absolute distance between two major economic centers and population size have a significant negative impact. Furthermore, relevant Asia-Pacific Economic Cooperation (APEC) trade arrangements have an impact on bamboo and rattan product trade flows from China. Meanwhile, trade of bamboo and rattan between China and APEC countries such as South Korea, Canada, Russia, and Thailand shows much room for growth.

Financial development and agricultural performance in Nigeria: what role do institutions play?

2019 ◽  
Vol 80 (2) ◽  
pp. 231-254 ◽  
Author(s):  
Isiaka Akande Raifu ◽  
Alarudeen Aminu
Keyword(s):  
Financial Development ◽  
Agricultural Sector ◽  
Institutional Environment ◽  
Positive Impact ◽  
Principal Component ◽  
Annual Data ◽  
Institutional Variables ◽  
Content Type ◽  
Agricultural Performance

Purpose The centrality of agricultural sector to the economy, particularly in developing countries, has drawn the attention of researchers to critically examine different factors determining the performance of the sector. Given that massive investment is required to ensure maximum productivity in the sector, one of the factors identified is the issue of financing. However, financing agricultural sector in a poor institutional environment can be depressing. In the light of this, the purpose of this paper is to examine the nexus between financial development and agricultural performance in Nigeria with a view to investigating the role of institutions. Design/methodology/approach The study employed annual data spanning the period from 1981 to 2016. Three indicators of financial development and five institutional variables were used. Besides, for robust analysis, the study also computed an aggregate measure of financial development and institutions using principal component method. Autoregressive distributed lag method of estimation was used to examine the short-run and long-run effects of financial development on agricultural performance in Nigeria. Findings The findings showed that financial development has a positive impact on agricultural performance in Nigeria. However, this positive impact is being undermined by institutional variables. Originality/value To the best of the authors’ knowledge, this is the only study that examines the mediating role of institutional factors such as the rule of law, control of corruption, etc., in the financial development–agricultural performance nexus in Nigeria.

Academic Research and Canadian Manufacturing Productivity since the Formation of NAFTA

2007 ◽  
Vol 21 (2) ◽  
pp. 145-158
Author(s):  
James Brox
Keyword(s):  
Free Trade ◽  
Positive Impact ◽  
Academic Research ◽  
Free Trade Area ◽  
Variable Cost ◽  
Trade Area ◽  
The North ◽  
Canadian Manufacturing ◽  
Manufacturing Productivity ◽  
The Impact

Does academic research have a positive impact on productivity? To examine this question, the paper focuses on national Canadian manufacturing data, using a variable-cost CES-translog cost system. Changes in the elasticities calculated from the estimation results allow the study of the impact of the free-trade agreements on Canadian production and the effects of academic R&D expenditures. The principal finding is that academic research expenditures have had a positive effect on Canadian manufacturing productivity and that this effect of R&D expenditures has become stronger since the formation of the North American Free Trade Area (NAFTA).

scholarly journals An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

2014 ◽  
Vol 38 (1) ◽  
pp. 7-30
Author(s):  
Mariusz Próchniak
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Economic Freedom ◽  
Institutional Environment ◽  
Positive Impact ◽  
Policy Implications ◽  
Regression Equations ◽  
Solow Model ◽  
The Impact

Abstract This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute), the governance indicator (World Bank), the democracy index (Freedom House), and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom) has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

scholarly journals THE RESEARCH ON INTERFACE BETWEEN LITHUANIAN DIRECT INVESTMENT ABROAD AND FOREIGN TRADE FLOWS

2016 ◽  
Vol 14 (1) ◽  
pp. 136-151
Author(s):  
Anžela KOZLOVA ◽  
Algita MIEČINSKIENĖ
Keyword(s):  
Foreign Trade ◽  
Direct Investment ◽  
Developed Countries ◽  
Trade Flows ◽  
General Development ◽  
Causality Test ◽  
Import And Export ◽  
The Developed Countries ◽  
The Impact ◽  
Research Analysis

The scientific research results related to foreign trade and direct investment abroad (DIA) are discussed in the article. The relation of the direct investment abroad and foreign trade is still under the discussion as there is no clear answer whether foreign trade is supplemented or replaced by the direct investment abroad. Since 1997 the flows of the direct investment abroad increased greately in Lithuania. Consequently, it is important to define the link between the DIA and foreign trade considering each country separately. Direct investment abroad and trade links in Lithuania in 1997–2014 are analyzed in the article. The research analysis involves Lithuanian direct investments in the developed countries except some countries, such as Belorus, Russia and Ukraine. It is defined that there is a positive bilateral link between Lithuanian direct investment abroad and foreign trade. It is also observed the impact of general development of Lithuanian direct investment abroad (considering certain countries) on the countries economy itself – imports can exceed exports. Engle-Granger causality test is applied in the research paper for the purpose of defining the impact of the DIA on the import and export range.

scholarly journals Determinants of High-tech Export in CEE and CIS Countries

2021 ◽  
Vol 17 (2) ◽  
pp. 486-501
Author(s):  
Igor M. Drapkin ◽  
Anna A. Gainetdinova ◽  
Aksanat Zh. Panzabekova
Keyword(s):  
Foreign Trade ◽  
Transition Period ◽  
Positive Impact ◽  
Principal Component ◽  
Direct Foreign Investment ◽  
High Tech ◽  
Export Activity ◽  
Baltic Countries ◽  
Cis Countries ◽  
The Impact

Any government strives to stimulate export activity in high-tech sectors of its economy. Surprisingly, there are few empirical papers on the determinants of high-tech export to date. This study analyses the economies of Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) due to the differences they experienced in the transition period. To this end, we used the Balassa index, which is based on the concept of revealed comparative advantages. The research examines 73 groups of products from the automotive, chemical, mechanical engineering, electronics and electrical engineering industries in 27 countries from 1995 to 2018. Principal component analysis helped generate an indicator of comparative advantage of hightech industries for each country in each year. It is revealed that CEE countries, as well as the Baltic countries, have achieved significant success in the development of high-tech sectors of the economy, while the CIS countries have shown practically no progress in this direction. The article tests hypotheses on the impact of resources, foreign trade, macroeconomy and innovation on export activity in the country. The following factors stimulate the export growth in high-tech industries of the studied countries: level of wages and resource prices, openness of the economy to foreign trade; tax rate; unemployment rate; quality of human capital. We did not find empirical evidence of the positive impact of inflation, inflows of direct foreign investment, and the level of research and development (R&D) costs on the volume of high-tech export of the examined economies.

Terrorism and inbound tourism: Does immigration have a moderating effect?

2019 ◽  
Vol 26 (3) ◽  
pp. 500-518 ◽  
Author(s):  
Georges Harb ◽  
Charbel Bassil
Keyword(s):  
Positive Impact ◽  
Moderating Effect ◽  
Destination Country ◽  
Gravity Models ◽  
Adverse Impact ◽  
Moderation Effect ◽  
Inbound Tourism ◽  
The Impact ◽  
Tourism Flows

This article investigates the impact of terrorism on bilateral tourism flows within the Organization for Economic Co-operation and Development countries. It also examines the moderation effect of immigration in the destination country on the terrorism–tourism relationship. The results obtained from the estimated gravity models show that after reaching a certain threshold, terrorism negatively impacts tourist arrivals. This relation seems to be moderated by the share of immigrants in the country of destination: when the share of immigrants in a country is relatively high, the positive impact of immigration on tourist arrivals would counterbalance the adverse impact of terrorism on tourist arrivals.

scholarly journals Labor clauses in trade agreements: Hidden protectionism?

2021 ◽  
Author(s):  
Céline Carrère ◽  
Marcelo Olarreaga ◽  
Damian Raess
Keyword(s):  
Developing Countries ◽  
Bilateral Trade ◽  
Positive Impact ◽  
A Priori ◽  
Trade Agreements ◽  
Trade Flows ◽  
Middle Income ◽  
Positive Effects ◽  
Bilateral Trade Flows ◽  
The Impact

AbstractWe explore the impact of the introduction and design of labor clauses (LCs) in preferential trade agreements (PTAs) on bilateral trade flows over the period 1990–2014. While it is not a priori clear if the inclusion of LCs in PTAs will decrease or increase bilateral trade, we expect the direction of trade to matter, that is, we expect to observe the (negative or positive) impact of LCs in the South-North trade configuration. We also expect, in that configuration, stronger LCs to yield stronger (negative or positive) effects on bilateral trade flows. Using a novel dataset on the content of labor provisions in PTAs, we find in line with our first expectation that while the introduction of LCs has on average no impact on bilateral trade flows, it increases exports of low and middle-income countries with weaker labor standards in North–South trade agreements. Consistent with our second expectation, this positive impact is mostly driven by LCs with institutionalized cooperation provisions. In contrast, LCs with strong enforcement mechanisms do not have a statistically significant impact on exports of developing countries in North–South PTAs. The results are inconsistent with the ideas that LCs are set for protectionist reasons or have protectionist effects, casting doubt on the logic for the reluctance of many developing countries to include LCs in their trade agreements.

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