Frontier Technology, Trade, FDI, and TFP in the Electrical and Electronic Industries: Exporting or Processing Trade?

Does “openness” determine “catching-up” of establishments to frontier technology and total factor productivity (TFP) in Malaysia's electrical and electronic (E&E) industries? We contribute to this debate by applying a new measurement of processing trade intensity. Utilizing stochastic frontier analysis and Levinsohn and Pertrin (LP) TFP, we investigate determinants of technical efficiency (TE) and TFP. The results show that processing trade intensity and not export intensity determines TE and TFP for the overall sample and subsample of foreign establishments. In the processing trade subsample, export intensity is negatively related to TE and unrelated to TFP, obtaining an unconventional result that exporters are inefficient and not associated with TFP. The results show that higher foreign ownership shares of establishments are negatively associated with LP TFP.

Trade Intensity, Fiscal Integration and Income Inequality in ECOWAS

This paper analyzes the income inequality effect of economic integration in ECOWAS by decomposing economic integration into two dimensions: trade and fiscal integration approximated respectively by trade intensity and fiscal convergence. For robustness purposes, we use different metrics for each dimension. We also consider the introduction in the region of growth and convergence pact in the analysis of fiscal integration effect on income inequality. The analysis covers the period 1990–2018. For the empirical evidence, the generalized method of moment is used. The results obtained are robust and reveal that improving regional economic integration has a reducing effect on income inequality. Taken individually, trade integration and fiscal integration contribute to reducing income inequality. However, taken together, the reducing effect of economic integration on income inequality is more pronounced. Besides, the results indicate that fiscal integration has more contributed to the reduction of income inequality since the introduction of the first fiscal convergence pact in the region in 2000 than before. For reducing income inequality, our analysis recommends to ECOWAS countries to take steps to remove barriers to regional trade on the one hand, and on the other hand, to converge together on the fiscal front.

Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications

This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.

INDIA’S BILATERAL TRADE WITH CHINA- EMPIRICAL STUDY BASED ON TRADE INTENSITY INDEX & TRADE RECIPROCITY INDEX

This paper is an attempt to examine and compare the bilateral relationship between India and China. It analyses the trends in trade and the major composition of commodities being traded between India and China during the period (2008-2017). Annual Growth Rate (AGR), Combined Annual Growth Rate (CAGR), Trade Intensity Index (TII), and Trade Reciprocity Index (TRI) have been used in order to analyse the bilateral trade between India and China. The present study reveals that India imports 3 to 4 times more than it exports to China whereas overall trade between India and China also increased over the years specially in the area of import as compare to India’s total trade to the world. However, the top ten commodities that have been dominating in India’s trade with China are: Ores, Cotton, Copper and articles, Organic chemicals, Electrical machinery & equipment, nuclear reactors, etc. Trade Intensity Index reveals there is serious unbalanced trade relationship between India and China from India’s point of view and India need to take productive steps for minimising unbalanced trade balance. Whereas, TRI index also reveals that India is stepping towards unbalanced trade with China as the import indices keep on increasing in comparison to export indices and therefore, balance of trade results unfavourable which requires India to rethink and revamp its export and import policy.

Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications

This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.

TRADE INTERACTIONS IN THE RUSSIAN FAR EAST: ASSESSMENT OF COMPARATIVE INTENSITY

In the long term, the regions of the Russian Far East traded more intensively with the domestic market than with foreign countries. The low values of trade intensity the Russian Far Eastern regions with NEA countries was compensated by low transport costs. This circumstance determined the export orientation of the Russian Far East in favor of nearby large foreign markets.

Testing the Role of Trade on Carbon Dioxide Emissions in Portugal

This article considers the relationship between trade intensity, energy consumption, income per capita, and carbon dioxide emissions from 1970–2016 for the Portuguese economy. Considering the arguments of monopolistic competition, the article tests the hypotheses of trade and energy consumption on climate change. We use the autoregressive distributed lag-ARDL model, quantile regression, and cointegration models such as fully modified ordinary least squares (FMOLS), canonical cointegration regression, and dynamic ordinary least squares (DOLS) as an econometric strategy. The econometric results have support with the literature review. The variables used in this research are integrated with the first differences, as indicated by the unit root test. The empirical study proves that trade intensity contributes to environmental improvements. However, energy consumption presents a positive impact on CO2 emissions. The econometric results also demonstrated that a sustainable environmental system exists in the long run.

China’s trade and economic relations with Algeria, Morocco, and Mauritania in the 21st century

The study analyzes the current level of China's trade and economic relations with Algeria, Morocco, and Mauritania. The research methods include comparative-historical and economic analysis with the use of trade intensity and trade complementarity indices. The author concluded that Algeria enjoys a leading position in terms of trade flows between the countries and investment from China. Morocco is in the second place in terms of trade turnover, while Mauritania has the smallest volume. The most diversified trade is between the PRC and Morocco, as there is not only the mineral sector (as in the case of the other two countries), but also the services and electronics sectors. Traditional areas of trade and economic cooperation in the field of mining have demonstrated a low level of trade complementarity for the China-Algeria, China-Mauritania pairs. The most promising industries, according to the results of the study, are China’s machinery, the service sector and agriculture. The intensity of trade flows was higher in the period 2010-2019 on the part of the PRC in the China-Algeria, China-Morocco pairs. The disparity in the intensity of trade progressed throughout the period for the China-Algeria pair, while the intensity remained the same for the China-Morocco pair. Mauritaniais the country with the highest trade intensity index with the PRC. Moreover, the intensity on the part of Mauritania was higher than on the part of the PRC throughout the entire period. The data obtained confirmed the importance of the region in China's foreign trade relations, a trend that may develop in the future.