Investigating the Effect of Diplomatic Representation on Trade

2021 ◽  
pp. 188-207
Author(s):  
Danijel Mlinaric ◽  
Hrvoje Josic ◽  
Cindy Thompson
Keyword(s):  
Fixed Effects ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Fe Model ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Policy Makers ◽  
Economic Diplomacy ◽  
Bilateral Trade Flows ◽  
The Impact

Economic diplomacy is an unavoidable tool for improving economic standards, and it needs to be an important instrument for policy makers in stimulating international trade and supporting domestic firms. This chapter analyses the impact of economic diplomacy on bilateral trade flows in Croatia in the period from 1992 to 2017. The authors use an applied gravity model of trade by employing fixed effects model (FE), random effects model (RE), and pseudo Poisson maximum likelihood (PPML) estimator. PPML estimator takes into count zero trade flows because estimating zero trade flows with OLS estimator could lead to several biases. The problem of dependence between diplomacy representatives was solved by constructing individual regressions using FE model and PPML estimator. The hypothesis of the chapter, which was tested, states that diplomatic representation has had positive and significant effects on bilateral trade flows (imports and exports) of Croatia. The results of the analysis have shown that the diplomatic representation via embassies and consulates is a relevant trade and trade-enhancing factor.

scholarly journals The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers

2020 ◽  
Vol 13 (9) ◽  
pp. 203
Author(s):  
Maria Cipollina ◽  
Federica Demaria
Keyword(s):  
Developing Countries ◽  
Bilateral Trade ◽  
Developed Countries ◽  
International Markets ◽  
Trade Flows ◽  
Preferential Trade ◽  
Trade Effect ◽  
Bilateral Trade Flows ◽  
The Developed Countries ◽  
The Impact

Nowadays, trade negotiations afford both liberalism- and protectionism-oriented policies. Indeed, in recent decades, the developed countries have been actively engaged in negotiating many preferential agreements to integrate developing countries (DCs) into world trade and encourage their economic growth, but many of these schemes contrast with the complex rules, often imposed on international markets, that still are an obstacle for exporters. Their presence and related costs reduce the importance of preferential trade agreements (PTAs) in increasing trade flows. This article attempts to assess the impact of preferential trade policies on trade flows controlling for different non-tariff barriers (NTBs), using a structural gravity model. The analysis uses disaggregated data, registered in the year 2017, on EU imports (defined at level HS-6 digit) from a large number of exporters (187 developed and developing countries) and also includes the intra-EU trade. Our results show robust and positive estimates for the impact of preferences on bilateral trade flows, however, higher non-tariff barriers are likely to play a role in reducing both the extensive margins of trade, and so tariff preferences alone are not sufficient to access international markets. The impact of NTBs on the intensive margin of trade is ambiguous; some measures may act as catalysts and therefore increase trade, and others may act as an additional cost of trade and thus hinder trade.

scholarly journals Effects of COVID-19 on trade flows: Measuring their impact through government policy responses

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258356
Author(s):  
Javier Barbero ◽  
Juan José de Lucio ◽  
Ernesto Rodríguez-Crespo
Keyword(s):  
Bilateral Trade ◽  
State Of The Art ◽  
Negative Impact ◽  
Trade Agreements ◽  
Trade Flows ◽  
Policy Responses ◽  
Negative Effect ◽  
Bilateral Trade Flows ◽  
Gravity Model Of Trade ◽  
The Impact

This paper examines the impact of COVID-19 on bilateral trade flows using a state-of-the-art gravity model of trade. Using the monthly trade data of 68 countries exporting across 222 destinations between January 2019 and October 2020, our results are threefold. First, we find a greater negative impact of COVID-19 on bilateral trade for those countries that were members of regional trade agreements before the pandemic. Second, we find that the impact of COVID-19 is negative and significant when we consider indicators related to governmental actions. Finally, this negative effect is more intense when exporter and importer country share identical income levels. In the latter case, the highest negative impact is found for exports between high-income countries.

scholarly journals INSTITUTIONS AND INTRA-REGIONAL TRADE IN CEFTA 2006: A GRAVITY APPROACH

2019 ◽  
Vol 1 (17) ◽  
pp. 11
Author(s):  
Łukasz Klimczak ◽  
Jelena Trivić
Keyword(s):  
Free Trade ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Flows ◽  
Positive Sign ◽  
Regional Trade ◽  
Bilateral Trade Flows ◽  
The Impact

The purpose of this paper is to identify factors that had an influence on bilateral trade flows among the CEFTA countries with special emphasize: 1) on the role of CEFTA agreement and its preceding network of bilateral free trade agreements, and 2) on the role of institutions in facilitating intra-regional trade. In order to assess the impact of these variables on trade, we employed an augmented gravity model based on panel data of the CEFTA countries in fifteen years period (2000-2014). The results of the research suggest that there was a positive and statistically significant role of the CEFTA agreement on trade between its parties but the influence of the preceding bilateral free trade agreements was even higher. Results also showed that institutions can play an important role as trade facilitators, but mainly in the importing country while in the exporting country only three of six variables showed to have a positive sign.

scholarly journals Impact of Full IFRS, Accounting Standards for SMES and Company Demographics on Firms’ Return on Asset and Return on Equity using Panel Data Regression

2019 ◽  
Vol 8 (6S) ◽  
pp. 589-601 ◽  
Keyword(s):  
Least Squares ◽  
Random Effects ◽  
Fixed Effects ◽  
Random Effect ◽  
Ordinary Least Squares ◽  
Lagrangian Multiplier ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Real Property ◽  
The Impact

Due to globalization, markets are becoming more interconnected as the companies are engaged in doing cross-border offerings. Currently, competitions are intensified because Domestic organizations discover themselves competing with each nearby opposite numbers and worldwide companies. But one component that hinders SMEs is the need for reliable and similar monetary data. According to Abarca (2014), adoption of a high-quality and consistent set of accounting requirements is critical so as for the businesses to remain competitive in ASEAN member states. This paper ambitions to answer the query, what modified into the extent of the impact of compliance with full IFRS and IFRS for SMEs on profitability of agencies belong to real property enterprise? This paper moreover sought to decide whether there may be a sizeable distinction among the groups’ compliance with the overall PFRS and the PFRS for SMEs and to determine whether or now not there is a massive distinction among the companies’ financial normal overall performance earlier than and after the adoption of the PFRS for SMEs.Paired T-test have become employed in case you need to determine whether there is a big distinction between the agencies’ compliance with the entire PFRS and the PFRS for SMEs and to decide whether or not there may be a big difference some of the groups’ monetary performance earlier than and after the adoption of the PFRS for SMEs. Using STATA, the great appropriate version for every economic ratio on the subject of degree of compliance emerge as determined on. First, take a look at parm command became used to find out which most of the Least Squares Dummy Variable Regression Modes (LSDV1, LSDV2, LSDV3) underneath the Fixed Effects Model is the ideal version. Afterwards, Hausman Fixed Random Test changed into used to pick out out which is more suitable amongst Fixed Effects Model and Random Effects Model. If Fixed Effects Model modified into the more appropriate one, the Wald’s test turn out to be used to determine the best version among Fixed Effects Model and Ordinary Least Squares Model. On the alternative hand, if Random Effects Model became the more suitable one, the Breusch and Pagan Lagrangian Multiplier Test for Random Effect have become used to decide the satisfactory version amongst Random Effects Model and Ordinary Least Squares. Moreover, if Ordinary Least Squares became the splendid model, it is going to be in addition tested to check for heteroscedasticity and multicollinearity. White’s test became used to check for heterescedasticity and Variance Inflation Factor have become used to test if multicollinearity is gift. The results display that the adoption of PFRS for SMEs stepped forward the compliance of Philippine real property SMEs. However, no vast alternate became said inside the financial average performance of those companies (as measured with the resource of cross back on assets and go back on equity). This was further supported by the results of the panel regression. This means that despite having a relatively

scholarly journals FORECASTING MONEY DEMAND WITH THE INCLUSION OF FINANCIAL INNOVATION FOR THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS: EVIDENCE FROM PANEL DATA ANALYSIS

2019 ◽  
Vol 1 (1) ◽  
pp. 59-74
Author(s):  
Payam Mohammad Aliha ◽  
Tamat Sarmidi ◽  
Fathin Faizah Said
Keyword(s):  
Time Series ◽  
Panel Data ◽  
Random Effects ◽  
Money Demand ◽  
Fixed Effects ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Demand For Money ◽  
Financial Innovations ◽  
The Impact

This paper investigates the impact of financial innovations on the demand for money using a dynamic panel data for 10 ASEAN member states from 2004 to 2012 and attempt to forecast the demand for money during 2013 – 2016 to compare between forecasting performance of the fixed effects model with that of random effects model and also to compare the forecasting accuracy of dynamic forecasting and static forecasting obtained from these two models. An autoregressive model by definition is when a value from a time series is regressed on previous values from that same time series. There are two types of forecasting namely dynamic forecast and static forecast. “Dynamic forecast will take previously forecasted values while static forecast will take actual values to make next step forecast. Panel effects models assist in controlling for unobserved heterogeneity when this heterogeneity is constant over time and correlated (fixed effects) or uncorrelated (random effects) with independent variables. Hausman test indicates that the random-effects model is appropriate. We use the conventional money demand that is enriched with the number of automated teller machines (ATM) to proxy for the effect of financial innovations on money demand. By comparing the magnitude of “Root Mean Squared Error” (RMSE) as a benchmark for the two forecasts (0.1164 for dynamic forecast versus 0.0635 for static forecast) we simply find out that static forecast is superior to dynamic forecast meaning that static forecast provides more accurate forecast compared to a dynamic forecast for the fixed-effects model. Therefore, we conclude the static forecast on the basis of the random-effects model provides the most accurate forecasting. The estimation result of the chosen random-effects regression also indicates the estimated coefficient of ATM is not significant meaning that ATM does not impact money demand in ASEAN countries.

The Economic Effectiveness of Diplomatic Representation: An Economic Analysis of its Contribution to Bilateral Trade

2011 ◽  
Vol 6 (1-2) ◽  
pp. 101-120 ◽  
Author(s):  
Peter A.G. van Bergeijk ◽  
Mina Yakop ◽  
Henri L.F. de Groot
Keyword(s):  
Bilateral Trade ◽  
Trade Flows ◽  
The Other ◽  
Data Set ◽  
Average Performance ◽  
Explanatory Variables ◽  
Economic Diplomacy ◽  
Trade Model ◽  
Bilateral Trade Flows ◽  
International Representation

AbstractThis article empirically investigates the contribution of different forms of diplomatic representation to the bilateral trade flows (both exports and imports) of a group of 63 countries. The authors report on the construction of a data set that covers 10,524 diplomatic representations. They use these representations as one of the explanatory variables in an applied trade model (the gravity model) for 3,730 bilateral trade flows in order to measure to what extent these representations are economically effective, in the sense that they are associated with larger trade flows. The authors distinguish different forms of international representation in the field of economic diplomacy (such as honorary and career consulates, embassies and embassy branches, and trade and other offices) and find positive and highly significant effects for embassies but mixed results for the other forms of representation. Finally, the authors provide a comparative perspective on the effectiveness of the 63 countries’ foreign services and classify the countries according to the average performance of their network of foreign representations.

EUROPEAN ACCESSION AND THE TRADE FACILITATION AGENDA

2010 ◽  
Vol 01 (02) ◽  
pp. 227-249 ◽  
Author(s):  
JOHN S. WILSON ◽  
XUBEI LUO ◽  
HARRY G. BROADMAN
Keyword(s):  
Bilateral Trade ◽  
Trade Flows ◽  
Institutional Capacity ◽  
Trade Facilitation ◽  
Economies In Transition ◽  
Port Efficiency ◽  
Bilateral Trade Flows ◽  
Development Levels ◽  
The Impact ◽  
The Eu

This paper examines the impact of improved trade facilitation measures and institutional capacity in a set of economies in transition Europe. Our results suggest that behind-the-border barriers play an important role in determining bilateral trade flows (controlling for the effects of tariffs, development levels, distance, and regional characteristics of exporters and importers, among other factors). For European Union (EU) members that joined the Union in 2004 and less developed and candidate members raising capacity in port efficiency and information technology infrastructures halfway to the EU-15 average, trade could expand by US$49 billion and US$62 billion respectively. In the context of the economic crisis and fragile recovery, as well as efforts to strengthen Europe integration, efforts to facilitate trade with investments to raise capacity in trade facilitation should be considered as part of policy steps going forward.

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.

scholarly journals The Impact of Trade Facilitation on Vietnam’s Trade Flows

2021 ◽  
Author(s):  
AISDL
Keyword(s):  
Bilateral Trade ◽  
Trade Flow ◽  
Economic Benefits ◽  
Global Market ◽  
Trade Flows ◽  
Border Crossing ◽  
Trade Facilitation ◽  
Cross Border ◽  
Bilateral Trade Flows ◽  
The Impact

In a globalized economy, countries actively participate in Free Trade Agreements (FTAs) to bring their advantageous products to the global market through cross-border transport to satisfy customers. Trade Facilitation (TF) has become key to address the difficulties faced by traders in cross-border transport. In the trend of global TF, Vietnam has always been committed to implement TF measures by simplify customs procedures and improving customs clearance efficiency at the border crossing in order to help traders reduce their trading costs. This paper mainly considers the impact of TF measures on Vietnam‘s trade flow under the effect of FTAs. Using the gravity model extended with quantitative measures of customs environment, regulatory environment, and service infrastructure, this paper estimates the impact of TF on bilateral trade flows with Vietnam. The results show that port and customs effects have positive impacts on Vietnam's trade flows. The results also show that these impacts are consistent despite the existence of FTAs. The implementation of TF measures always requires coordination of countries to produce the best results. Indeed, the increase in trade flows between countries will bring economic benefits. And when the reforms of TF are strictly implemented, reducing trade costs will increase trade volume. In a nutshell, TF has gradually become one of the important factors of economic growth.

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