The Trade Effect of Trust: Evidence from Agricultural Trade between China and Its Partners

High trust is a booster of trade development, while low trust is a stumbling block. The trust between two countries (regions) will be beneficial to sustainable development for bilateral trade. To investigate the impact of trade partners’ trust on the scale of China’s agricultural export trade, we put trust into the analytical models of international trade, propose a research hypothesis based on the transaction cost economics theory, and construct an extended gravity model for empirical tests. The results show that the level of trust affects the scale of export trade by affecting the size of transaction costs. Higher trust produces trade creation effect, while lower trust produces trade barrier effect. The trade partner’s trust significantly affects the scale of China’s agricultural export trade, and the effect is heterogeneous at different percent quartiles. Even after controlling the endogeneity, the conclusion still holds. We suggest that, in the international trade of agricultural products, the government should constantly improve the quality of formal institution, attach importance to constructing of the informal institution of trust and enhance the social trust to facilitate the development of agricultural trade.

Trade Must Go On. The Tar Trade, Nordic Rivalry, and Cross-Imperial Commercial Diplomacy, 1675–79

The Scanian War fought between Sweden and Denmark (1675–1679) is an example of an armed conflict, which uncovers the clash between the commercial and political interests. This article analyses the dispute between the political allies, the Danish Crown and the Dutch States General considering the trade with Sweden. The Danish naval officials had captured and confiscated the cargoes of seven Dutch tar vessels, heading to Amsterdam from present-day Finland in 1677, which resulted in a major political dispute between Denmark and the Dutch Republic. By drawing upon the methodology of new diplomatic history, the article analyses the negotiations between the diplomatic actors involved in the disputes relating to the confiscation of the ships, all of whom represented the various powers involved in the Baltic export trade.

Shared Responsibility for Carbon Emission Based on Embodied Carbon Emission in China-US Trade

Traditional Production-Based Accounting (PBA) principle does not consider the embodied carbon emissions in export and import trade. A multiregional input-output (MRIO) model is constructed to estimate the embodied carbon dioxide emissions of 41 countries and regions worldwide, based on the PBA and shared responsibility approach in this paper. The results indicate that the embodied carbon emissions in 2018 in China's export trade were 1326.1 million tons higher than that of import trade. Through the empirical analysis of the embodied carbon emissions in China's import and export trade, it can be seen that China is a major producer of carbon emissions, not a consumer country, and has taken more carbon emissions responsibility for the world. And it is more reasonable and impartial to assign developed and developing country’s carbon emissions responsibility in the light of the shared responsibility method.

Economic Policy Uncertainty (EPU) and China's Export Fluctuation in the Post-pandemic Era: An Empirical Analysis based on the TVP-SV-VAR Model

In the COVID-19 pandemic, the bidirectional policy adopted by the governments to stimulate domestic economy and reinforce foreign trade control is making the trade environment abnormally complex. China is facing a new challenge in export trade growth. Based on the continuous monthly data from January 2002 to April 2021, this paper uses the time-varying TVP-SV-VAR model to study the impulse response of China's export trade to economic policy uncertainty (EPU). It is found that (1) on the whole, the shock of global EPU and China's EPU on China's export to the OBOR/RCEP member countries is time-varying, different, and structurally significant; (2) during the pandemic, EPU has a significant short-term negative shock on China's gross exports and export to OBOR/RCEP members, and this shock is especially big in the case of global EPU. In the post-pandemic era, China should strengthen pandemic control and economic risk monitoring, continue with execution of multilateral FTAs and create a sustainably stable export trade environment.

AN ANALYSIS ON THE GROWING INDIA AND ISRAEL RELATION AND WHY INDIA REQUIRES ISRAEL

India and Israel are the two oldest civilizations, India favours a multi-polar world where as Israel favours a uni-polar world , India did not recognition Israel as a state till 1950 and today it has been more than25 years of diplomatic ties with growing economic, defence and strategic relationship, since 1992 the diplomatic ties between India and Israel started, capitalism was the main reason why India initiated the relation ,though since 1992 there have ties on agriculture, water management, trade, cyber security, Space, India and Israel together have launched missiles , and today India is the largest export partner of Israel in defence supply.Both the countries also have similar ideological and culture , In India we find many Jews residing in different states. India and Israel have joint hands and are sharing intelligences to counter terrorism .India and Israel are emerging as powerful nations and Israel advancement in technology has provided massive benefits to India in different sectors and the most in defence . The defence ties of the two countries in Future will provide more and more provisions to India, however India NAM members at times freezes the relations between the two countries. Keywords: India, Israel, Defence, strategic partnership, missiles, export, trade, cyber security