scholarly journals The Impact of Trade Deficit in Nepalese Economy

2022 ◽  
Vol 10 (1) ◽  
pp. 73-88
Author(s):  
Ashmita Dahal Chhetri
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Foreign Trade ◽  
Competitive Ability ◽  
Trade Deficit ◽  
Legal Framework ◽  
Export Ratio ◽  
Trading Partners ◽  
Policy Incentives ◽  
The Impact

The objective of this paper is to study and analyze the growth and direction of Nepalese foreign trade along with the causes and recommendations of trade deficit. Efforts have been made to sort out the principal sources of the trade deficit in Nepal. Landlockedness, political instability, lack of export diversification, devaluation of domestic currency, lack of resources, etc. are the major causes of the trade deficit in Nepal. Nepal, being not self-reliant on factors of production, consumer goods and capital goods, needs to import goods from abroad. On another hand, Nepal’s exports are heavily concentrated; both in terms of product and destination. Nepal’s major trading partners are India, China, U.A.E, etc. During the year 2019/20, Nepal exports goods worth RS. 97.71 Billion And import goods worth RS. 1196.80 billion Leading to a trade deficit of Rs.1099.09 Billion. Trade deficit is acting as negative catalyst in the economic growth and GDP of a country. Increased deficit has caused suppressed inflation. Import to export ratio is continuously increasing as demand is increasing and these demands could not be met by the domestic producers. During the year 2019/20, the contribution of trade on GDP of Nepal is 40.65%. No doubt, trade is an engine of economic growth. So, after analyzing barriers in the foreign trade, some of the steps to be taken are recommended which includes the development of competitive ability and enhancement of Human Resources, commodity and market diversification, formulation of strong legal framework and trade policy, incentives for the promotion of export and priority in the agricultural and hydropower sectors.

scholarly journals Foreign Trade Liberalisation and Economic Growth: The Case of the Republic of Srpska

ECONOMICS ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 99-108
Author(s):  
Goran Popović ◽  
Ognjen Erić ◽  
Srđa Popović
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Foreign Trade ◽  
Trade Deficit ◽  
Trade Liberalisation ◽  
Gdp Growth ◽  
Total Trade ◽  
The Republic ◽  
The Impact

Abstract This paper assesses the impact of trade liberalisation on the economic growth of the Republic of Srpska (RS). The aim of the research is to prove the hypothesis that trade liberalisation and export orientation positively impact on GDP growth. RS has characteristically small and open economies. The degree and character of the connections between the observed variables was determined by means of regression analysis. Regression analysis indicates that there is a positive connection between the total trade and GDP growth. Further, there is a marked positive correlation between export and GDP, that is, export growth contributes to GDP growth. Foreign trade deficit stands in a negative correlation with GDP. Lastly, regression analysis points to the connection between the Republic of Srpska economic growth and openness of its economy. However, uncontrolled opening and exposure to foreign competitiveness can also bring about problems which in certain circumstances lead to long-term macroeconomic instability.

Analysis on the Promotion Effect of Logistics Industry Development on China Tobacco Foreign Trade

2021 ◽  
Vol 7 (5) ◽  
pp. 1724-1735
Author(s):  
Liu Yue ◽  
Yang Gaofei
Keyword(s):  
Foreign Trade ◽  
Information Science ◽  
Tobacco Industry ◽  
Trade Deficit ◽  
Practical Significance ◽  
Logistics Industry ◽  
Demand And Supply ◽  
Logistics Market ◽  
International Transactions ◽  
The Impact

Objectives: The international logistics market is very broad and the system is also very large and complex. It depends on international information science and technology, and has high requirements for standardization. International logistics can realize trade between countries. Its development puts forward higher requirements, higher standards and higher development for international transactions, This paper focuses on the impact of the development of the logistics industry on China tobacco foreign trade in order to promote the development of international logistics and provide practical significance for the globalization of China tobacco foreign trade. In the research, the methods of literature review and case analysis are used to analyze theimpact of the international logistics industry on China tobacco foreign trade. The results show that international logistics is conducive to the adjustment of China tobacco foreign trade demand and supply, mobilizing the international consumption flow, improving the national GDP, and allowing the economic cooperation of various countries to make each country together and interdependent. Therefore, the research on international logistics is conducive to international cooperation and exchange.By studying the development of the logistics industry, this paper analyzes the promotion of China tobacco industry foreign trade, improves the impact of the global tobacco industry on China tobacco trade deficit, and provides practical significance for the globalization of China tobacco trade.

scholarly journals Czech foreign agricultural trade after joining the European Union

2009 ◽  
Vol 55 (No. 12) ◽  
pp. 583-595 ◽  
Author(s):  
V. Bašek ◽  
J. Kraus
Keyword(s):  
Foreign Trade ◽  
Agricultural Sector ◽  
Trade Deficit ◽  
Agricultural Trade ◽  
Customs Union ◽  
The European Union ◽  
Before And After ◽  
Trading Partners ◽  
Territorial Structure ◽  
The Eu

The objective of the paper is to assess how the Czech agricultural sector has withstood keen competition in the EU single market as measured by the basic indicators of foreign trade exchange. The impacts expressed by the indicators of active and/or adverse balance of trade were monitored for the post-accession period (the average of the years 2005–2007) in comparison with the pre-accession period (the average of the years 2001–2003). The assessment of the impacts of the accession to the EU is based on an analysis of the commodity and territorial structure of Czech agricultural foreign trade. The comparison of agricultural balance before and after the accession to the EU for our major trading partners shows that the active balance of the CR with Slovakia increased to 12.0 billion CZK per year; on the contrary, in relation to Poland, the trade deficit of 6.4 billion CZK per year was recorded while Germany strengthened its position in relation to the CR by an increase in the negative balance to 5.4 billion CZK and in relation to Austria, our adverse balance is maintained at the level of 1.1 to 1.2 billion CZK per year for a long time. After the accession to the EU, it was confirmed that the former EU 15 countries took a greater advantage of the customs union enlargement in the framework of the EU 27.

scholarly journals Trade Balance Effects on Economic Growth: Evidence from European Union Countries

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 54
Author(s):  
Deimante Blavasciunaite ◽  
Lina Garsviene ◽  
Kristina Matuzeviciute
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Trade Balance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Trade Deficit ◽  
Multivariate Regression Analysis ◽  
The European Union ◽  
Linear Effect ◽  
The Impact

A growing number of recent research analyse the trade balance impact on economic growth. However, ambiguous results of studies imply the need for the research as the deteriorating trade balance hinders economic growth. This research aims to investigate the impact of the trade balance on economic growth as well as to evaluate it during the periods of trade deficit. Our estimations are based on the European Union (EU) 28 countries panel data over the period of 1998–2018, using the OLS method of multivariate regression analysis with fixed effects and focusing on two strategies: (i) including all trade balance periods, and (ii) adding deficit dummy variable seeking to evaluate whether during deficit periods we can find different and significant effect on economic growth. Evaluating all trade balance periods, the obtained results indicate the negative and lagging impact of the trade balance on economic growth, and no significant differences of the impact were identified during the deficit periods. The deterioration of trade balance reduces average economic growth and from linear relationship evaluation, we can state that it does not matter whether it starts from trade deficit or surplus result. The results obtained may also obscure the possibility of a non-linear effect, which would suggest a stronger negative impact on economic growth when the trade balance deteriorates in the presence of a large trade deficit. When discussing directions for further research it would make sense to consider other factors, such as the size of the deficit and its permanence.

scholarly journals DETERMINANT MANAGEMENT OF COMPETITIVE DEVALUATION: THEORETICAL AND PRACTICAL ASPECTS

2021 ◽  
Vol 1 (36) ◽  
pp. 281-292
Author(s):  
V. Dergachova ◽  
M. Kravchenko ◽  
O. Vynogradova ◽  
V. Holiuk ◽  
K. Kuznietsova
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Foreign Currency ◽  
Raw Materials ◽  
Technological Development ◽  
Negative Consequences ◽  
Negative Effects ◽  
Risk Hedging ◽  
Trading Partners ◽  
Trade Share

The paper is devoted to the study of theoretical and practical aspects of determinant management of competitive devaluation, which are the essence of competitive devaluation, instruments of its implementation, as well as the positive and negative consequences of its impact on the economy of the country, which is implementing it and its trading partners. The authors have found that competitive devaluation is a deliberate devaluation of currency initiated (both officially and informally) by the central bank to reduce the value of exported goods, thereby facilitating domestic production, solving the unemployment problem, and reducing the balance of payments deficit. The article determines that the most significant impact of competitive devaluation takes place in the following sectors of the country’s economy: foreign trade, industrial, agricultural, financial and services. The study has found that the degree of effectiveness of competitive devaluation to stimulate economic growth of a country is determined by the following factors: structure of foreign trade, share of imported raw materials and components in the cost of goods, foreign trade barriers, growth rates of other countries’ economies, elasticity of demand for exported goods, use of fixed commodity contracts and risk hedging instruments, J-curve effect. The authors highlight the positive and negative consequences of competitive devaluation for the country implementing it and its trading partners. Expected positive results for the country which is devaluing its currency is an increase in exports and an increase in domestic demand, which should contribute to higher employment and economic growth. Among the negative effects of competitive devaluation are the following: a decrease of the purchasing power of the population, a rise of prices of imports and a decrease of their volumes, an increase of the inflation rate; more expensive repayment of foreign currency denominated debt; reduction of foreign investments; restriction of scientific and technological development and the outflow of professional labor.

scholarly journals Prospects and Challenges of Entrepreneurship Development in the Kurdistan Region of Iraq: An Overview

2019 ◽  
Vol 7 (2) ◽  
pp. 4-16 ◽  
Author(s):  
Zrar Mohsin Mohammadali ◽  
Sabir Sadiq Abdulkhaliq
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Human Resources ◽  
Industrial Development ◽  
Legal Framework ◽  
Spiritual Support ◽  
Kurdistan Region ◽  
Efficient Technology ◽  
Entrepreneurship Development ◽  
Entrepreneurial Activities

Abstract Entrepreneurship as a driver of innovation and economic growth plays a key role in economic development and the appearance of knowledge and innovation-based economies. The most important effects of entrepreneurship development are increasing innovation, upgrading technology, increasing employment, producing technical knowledge, and generating income distribution at the community level, which can lead to increased national wealth and economic growth. At the moment, global developments are made entrepreneurship so important, and organizations need more innovation and entrepreneurship than ever before to adapt to new circumstances. In fact, in relation to entrepreneurship as the most important factor in economic development, organizations can gain more market share. The objectives of this study are to examine and overview the prospects and challenges of entrepreneurship in Iraq’s Kurdistan region. In this regard, it can be said that with the human resources available and the valuable experiences available in the field of entrepreneurship around the world, it is necessary to plan for entrepreneurship development in the Kurdish Region of Iraq (KRI). It is revealed in this study Iraqi Kurdistan is determined can be one of the top entrepreneurial centers in the region with the scientific ability of specialists, and the potential of human resources, flexible structure and efficient technology. This paper recommended some strategies to reform and removing barriers to entrepreneurship development in the Kurdistan Region of Iraq by using factors such as entrepreneurship development and appropriate culture building, job training, setting up small business development centers, sponsoring entrepreneurs, establishing the legal framework for entrepreneurial activities, and providing spiritual support to entrepreneurs can lead to social, economic and industrial development and the declines of unemployment.

scholarly journals Assessing economic development through trade relations and educational markets integration (the case of Vietnam within ACFTA)

2020 ◽  
Vol 210 ◽  
pp. 13016
Author(s):  
Thinh Bui Tien ◽  
Hung Tran Van
Keyword(s):  
Trade Deficit ◽  
Trade Diversion ◽  
Trade Creation ◽  
Trade Relations ◽  
Full Effect ◽  
Trading Partners ◽  
Trade Center ◽  
Trade Partner ◽  
The Impact ◽  
Positive Effect

This paper applies the gravity model of trade with panel database to assess the impact of ACFTA on the export and import of ACFTA’s members from 2001 to 2018. The database was taken from World Bank Database, International Trade Center and CEPII Research and Expertise on The World Economy. The estimation results review that ACFTA has positive trade creation and trade diversion effect on the export of all ACFTA’s members including Vietnam, ACFTA does play a pivotal role in the intra – regional export and extra – regional export of Vietnam and other ACFTA’s members. Furthermore, within the scope of the paper, compared to other FTA of ASEAN, the magnitude of trade creation of ACFTA is considerably large. This is consistent with the fact that China is gradually becoming a fundamental trade partner with ASEAN and Vietnam in particular. Contrary to the positive effect of ACFTA on members’ export, the estimation results show that ACFTA is causing negative trade diversion effect on the import of ASEAN members within ACFTA including Vietnam. This is in line with the fact that ASEAN and Vietnam in particular have been running trade deficit with China since 2010 at the expense of import from other trading partners, and the trade deficit has been increasing since ACFTA came into full effect.

scholarly journals On the prospects for the ban and control of the export of timber

2021 ◽  
pp. 33-38
Author(s):  
Maria Gorbunova ◽  
Dmitriy Zelenov
Keyword(s):  
Foreign Trade ◽  
Russian Federation ◽  
Economic Effect ◽  
Legal Framework ◽  
Potential Risks ◽  
The Russian Federation ◽  
Foreign Trade Activity ◽  
And Control ◽  
The Impact ◽  
Round Timber

Based on the analysis of the legal framework, the official statistics of the Federal Customs Service of Russian Federation and world practice, the article discusses the issues of banning the export of round timber outside the Russia. The potential economic effect for individual regions and for the country as a whole as a result of such a ban is estimated, as well as the impact on the foreign trade activity of the Russian Federation. In addition, the potential risks associated with the ban on the export of round timber are assessed.

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