The Impact of Terms of Trade on the Export Structure of Manufactured Products in Different Economic Developing Status

2021 ◽  
Vol 1 (1) ◽  
pp. 59-67
Author(s):  
Kai-Ting Huang ◽  
Keyword(s):  
Time Series ◽  
Terms Of Trade ◽  
Development Status ◽  
Structural Time Series ◽  
Export Structure ◽  
Primary Products ◽  
Long Run ◽  
Deterministic Trend ◽  
Manufactured Products ◽  
The Impact

The Prebisch-Singer Hypothesis states that in structural time series analysis, the terms of trade between primary products and manufacturers have a negative deterministic trend. Many researchers argued that the deterioration in trade is the type of country in which the products are exported, regardless of whether the types of products exported by such countries are primary or manufactured products. This paper employs a development-differentiated model to analyze the correlation between various terms of trade and the export proportion of manufactured products on different economies of development status. In the long run, stable co-integration relations exist between terms of trade and the export proportion of manufactured products for development status. Furthermore, the increased proportion of manufactured products exports is the Granger casualty for the worse terms of trade for several economies of development status. The results demonstrated that changing the terms of trade is significantly influenced by structured changes in the export proportion of manufactured products for the development status of economies.

A Note on the Structure of Pakistan's Foreign Trade (Notes & Comments)

1969 ◽  
Vol 9 (2) ◽  
pp. 212-223 ◽  
Author(s):  
Joseph J. Stern
Keyword(s):  
Developing Countries ◽  
Foreign Exchange ◽  
Terms Of Trade ◽  
Relative Price ◽  
Primary Commodity ◽  
Primary Products ◽  
Long Run ◽  
Short Run ◽  
High Degree ◽  
The Impact

Developing countries generally are not only concerned with the level of their export earnings but also with the commodity and geographic composition of exports, and, to a lesser extent, of imports. Concern over a high degree of commo¬dity structure in exports is usually based on its presumed association with adverse price movements. A more diversified export commodity structure will reduce the impact on the overall level of foreign-exchange earnings from price fluctuations in any particular commodity. While concentration on a few commodities need not be identified with being a primary commodity exporter, for many developing countries a high degree of commodity concentration is often correlated with the exports of primary commodities [6 ; 9]. The familiar terms-of-trade argument, the belief that the relative price of primary commodity exports will fall, over the long run, as compared to the price of industrial goods imports, provides a second rationale for seeking a diversification in the composition of exports. Even in the short run the prices of most primary products in interna¬tional trade vary more sharply from year to year than those of most industrial products thus providing an additional incentive for decreasing commodity con¬centration [5].

scholarly journals Regional Investigation for Economies of Development Status on Changes in Export Structure of Deterioration Terms of Trade

2021 ◽  
Vol 2 (1) ◽  
pp. 1-8
Author(s):  
Grant G. L. Yang
Keyword(s):  
Regression Models ◽  
Raw Materials ◽  
Rapid Development ◽  
Terms Of Trade ◽  
Development Status ◽  
Export Structure ◽  
Export Ratio ◽  
Deterministic Trend ◽  
Alternative Economies ◽  
Manufactured Goods

The theory of Deterioration Terms of Trade states that the terms of trade between primary commodities and manufactures have a negative deterministic trend. However, the terms of trade for primary commodities have improved significantly because of higher prices of raw materials and natural resources due to the rapid development of some emerging developing countries. Literatures argued that the deterioration in terms of trade is the type of country in which the goods are exported rather than the types of goods exported by such countries are primary or manufactured goods. This paper employs regression models of alternative economies to analyze the correlation between terms of trade and manufactured goods export ratio. Results demonstrated that the Prebisch-Singer Hypothesis holds for all the economies except the developed ones, and the ITTs are worsened by increases in the proportion of manufactured goods for all the economies.

scholarly journals Political Stability and its Impact on Economic Growth of Pakistan (1988-2018): A Time Series Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. 273-282
Author(s):  
Majid Hussain Phul ◽  
Muhammad Saleem Rahpoto ◽  
Ghulam Muhammad Mangnejo
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Time Series Data ◽  
Political Stability ◽  
Series Data ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Positive Effect

This research paper empirically investigates the outcome of Political stability on economic growth (EG) of Pakistan for the period of 1988 to 2018. Political stability (PS), gross fixed capital formation (GFCF), total labor force (TLF) and Inflation (INF) are important explanatory variables. Whereas for model selection GDPr is used as the dependent variable. To check the stationary of time series data Augmented Dickey Fuller (ADF) unit root (UR) test has been used,  and whereas to find out the long run relationship among variables, OLS method has been used. The analysis the impact of PS on EG (EG) in the short run, VAR model has been used. The outcomes show that all the variables (PS, GFCF, TLF and INF) have a significantly positive effect on the EG of Pakistan in the long run period. But the effect of PS on GDP is smaller. Further, in this research we are trying to see the short run relationship between GDP and other explanatory variables. The outcomes show that PS does not have such effect on GDP in the short run analysis. While GFCF, TLF and INF have significantly positive effect on GDP of Pakistan in the short run period.

scholarly journals Impact of Crude Prices on Retail Prices – A Time Series Analysis

2019 ◽  
Vol 8 (2S7) ◽  
pp. 606-612
Keyword(s):  
Time Series ◽  
Time Series Analysis ◽  
Crude Oil ◽  
Energy Demand ◽  
Multivariate Time Series ◽  
Secondary Data ◽  
Series Analysis ◽  
Long Run ◽  
The Uk ◽  
The Impact

The UK has emerged as one of the largest producers of petroleum in the world. A significant amount of petroleum is used for fulfilling the energy demand within the country. However, the country witnessed a different trend from 2015. This is mainly due to the increase in imports of petroleum in order to meet domestic needs. To this, there is a need to identify the impact of changes exist in petrol and crude oil prices in the UK. In this context, the researcher has undertaken primary research to derive conclusions which are case specific and can comply with the research aim. The study used secondary data for the year 2015-2018 and conducted multivariate time series analysis. A series of tests including unit root, ARIMA, and co-integration tests were used to derive the results. The study found that there was an asymmetric relationship between the movements of prices of crude oil with respect to retail fuel prices in the long run. However, the study is not without limitations which are represented at the end of the study following with its future scope

scholarly journals Are some taxes better for growth in Pakistan? A time series analysis

2018 ◽  
Vol 45 (10) ◽  
pp. 1439-1452 ◽  
Author(s):  
Kashif Munir ◽  
Maryam Sultan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
International Trade ◽  
Sales Tax ◽  
Tax Base ◽  
Content Type ◽  
Long Run ◽  
Indirect Taxes ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of taxes on economic growth in the long run as well as in the short run. Design/methodology/approach The study uses simple time series model, where real GDP is dependent variable and different forms of taxes are explanatory variables under ARDL framework from 1976 to 2014 at annual frequency for Pakistan. Findings Direct taxes have positive relation with economic growth in the long run. Sales tax, tax on international trade (tariffs) and other indirect taxes have positive impact on economic growth of Pakistan in the long run as well as in the short run. However, sales tax and other indirect taxes impact negatively on economic growth in the short run after one year because people realize decline in their real income. Practical implications Government should increase direct taxes by increasing tax base. Indirect taxes usually indicate negative impact after one and two years; therefore, government should decrease its reliance on indirect taxes. Government should promote tax awareness among the people which increase the tax morale of people and increase the tax base. Originality/value Taxes are disaggregated into direct and indirect taxes, while indirect taxes have been further disaggregated into excise duty, sales tax, surcharges, tax on international trade and other indirect taxes. This study provides useful insight for policy makers in designing taxes and their effect on growth.

Risk Aversion and Unemployment in an Open Economy

2000 ◽  
Vol 49 (2) ◽  
Author(s):  
Pia Weiß
Keyword(s):  
Risk Aversion ◽  
Open Economy ◽  
Small Open Economy ◽  
Risk Behaviour ◽  
Terms Of Trade ◽  
Individual Risk ◽  
Risk Averse ◽  
Search Frictions ◽  
Long Run ◽  
The Impact

AbstractThe paper analyses the impact which risk aversion has on a small open economy characterised by search frictions on the labour market. It is shown that the long-run qualitative effects caused by a terms-of-trade shock are independent of individual risk behaviour. As far as quantitative aspects are concerned risk aversion always leads to higher equilibrium employment; however the increase in unemployment due to a price shock is the higher the more risk-averse individuals are.

scholarly journals Does Foreign Direct Investment More Important Than Domestic Direct Investment for Export Structure? Evidence from Indonesia

2021 ◽  
Author(s):  
Ariyo DP Irhamna ◽  
Ely Nurhayati ◽  
Adinda Putri Safira ◽  
Galuh Indra Wijaya
Keyword(s):  
Time Series ◽  
Foreign Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Export Structure ◽  
The Impact ◽  
Export Product

Abstract Scholars have long studied the spillover of FDI on trade. However, there has been limited study which spesifically investigate the impact of FDI on the export structure in a developing country. Does FDI more important than domestic investment for export structure? To examine the question, we test the impact of FDI and DDI on the export structure in time series framework, utilizing data on FDI inflows to Indonesia and export data based on product stage over 1992–2017. The export structure is analyzed based on three categories, namely primary product, intermediate product, and final product. Our results show that domestic investment has a negative impact on the primary export product, while foreign investment has a positive impact on the final export product. The result highlights the importance of domestic and foreign investment in export upgrading.

scholarly journals Predicting drought using Bayesian structural time series model

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Sophia Wang ◽  
Connor Lee ◽  
XL Pang
Keyword(s):  
Time Series ◽  
Well Being ◽  
The United States ◽  
Fire Season ◽  
Series Data ◽  
Percentage Error ◽  
Structural Time Series ◽  
Structural Time ◽  
Model Training ◽  
The Impact

The western U.S. has been experiencing a mega-scale drought since 2000. By killing trees and drying out forests, the drought triggers widespread wildfire activities. In the 2020 California fire season alone, more than 10.3 million acres of land were burned and over 10000 structures were damaged. The estimated cost is over $12 billion. Drought also devastates agriculture and drains the social and emotional well-being of impacted communities.  This work aims at predicting the occurrence and severity of drought, and thus helping mitigate drought related adversaries. A machine learning based framework was developed, including time series data collection, model training, forecast and visualization. The data source is from the National Drought Monitor center with FIPS (Federal Information Processing Standards) geographic identification codes. For model training and forecasting, a Bayesian structural time series (BSTS) based statistical model was employed for a time-series forecasting of drought spatially and temporally. In the model, a time-series component captures the general trend and seasonal patterns in the data; a regression component captures the impact of the drought in measurements such as severity of drought, temperature, etc. The statistical measure, Mean Absolute Percentage Error, was used as the model accuracy metric. The last 10 years of drought data up to 2020-09-01 was used for model training and validation. Back-testing was implemented to validate the model . Afterwards, the drought forecast was generated for the upcoming 3 weeks of the United States based on the unit of county level. 2-D heat maps were also integrated for visual reference.   

Environmental Pollution, Income Inequality, and Household Energy Consumption: Evidence from the United Kingdom

2019 ◽  
Vol 10 (02) ◽  
pp. 1950008 ◽  
Author(s):  
Sudeshna Ghosh
Keyword(s):  
Time Series ◽  
United Kingdom ◽  
Energy Consumption ◽  
Income Inequality ◽  
Household Energy ◽  
Household Energy Consumption ◽  
Household Level ◽  
The United Kingdom ◽  
Long Run ◽  
The Impact

This study explored the impact of income inequality, household energy consumption, government expenditure, and investment on carbon dioxide emissions at the household level over the period 1970–2015 in the United Kingdom. The study applied Clemente–Montanes–Reyes unit root test to identify structural break in the time series. Further, the cointegrating relationship of the time series observations was explored by applying the autoregressive distributed lag model (ARDL) (linear) bounds test approach along with the nonlinear ARDL for making fruitful comparisons in the long-run relationship among the variables. The paper used Bayer–Hanck combined cointegration method for robustness test in the cointegrating methods. In addition, the causality analysis was explored using the Toda–Yamato (1995) method of Granger causality. The results confirmed the existence of cointegration among the variables.The estimated NARDL results show that in the long run the negative asymmetric impact of the income inequality is stronger than the positive impact. The paper concludes that there is an urgent need to reduce income inequality in the United Kingdom to improve equitable consumption of energy at the household level. Last the causality test shows that there exists unidirectional causality from inequality transmission to carbon emissions.

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