Determining the impact of digitalization on the economic security of trade

The modern system of relations between countries is being transformed with the spread of digitalization. Accordingly, there is a need to study the practical aspects of digitalization of trade as a major component of international relations. Therefore, this study aims to determine the impact of digitalization processes on the performance and economic security of trade. The main directions for the development of digitalization in trade were determined and the influence of digital technologies on the economic security of trade entities (enterprises) was investigated. The main components of the economic security of trade enterprises were identified. The main difficulties in the development of the digital economy were highlighted. The main directions for the development of digitalization of trade enterprises were determined. The list of factors that most influence the formation of trade turnover was substantiated: income of the population, number of trade workers, inventories, producer price indices, digital technologies (telecommunications, data processing, etc.). Methods of economic statistics (statistical observation, dynamic and structural analysis) were used to test the hypothesis of the relationship between informatization and economic security of trade enterprises. Methods of correlation and regression analysis were used to study the strength of the relationship between the volume of turnover and the factors that determine it. Based on the modeling, a statistically significant relationship was identified between the indicators of the volume of information and related services and trade volumes, which confirms the dependence of the economic security of trade enterprises on digitalization. The proposal to supplement the already existing methodology for assessing the economic security of the trade enterprise with indicators reflecting the impact of digital technologies was justified. The results of the study can be useful for adapting strategies for the development of trade enterprises in the context of the global digital ecosystem.

High producer price inflation will persist into 2022

Headline INTERNATIONAL: High producer inflation will persist

The feasibility of Indonesian potato’s farming and its global competitiveness

Potato’s farming in Indonesia is thought to be profitable. However, its competitiveness in global production is questionable. The purpose of this study is to analyze the financial feasibility of potato’s farming in Indonesia and its competitiveness in global production. The data used were the results of National Farmers Panel (PATANAS) surveys in 2008, 2011 and 2017. The cost and benefit analysis were used to analyze the financial feasibility. In addition, productivity and producer price were used to measure its global competitiveness. The results showed that potato’s farming during the period of 2008 to 2017 was highly profitable. The R/C ratios were high and continued to increase. These results showed that potato’s farming in the study area is profitable and feasible to be done. In contrast, although potato’s farming in the study area is very profitable, it has no competitiveness in global production, due to the relatively low yield and high cost shown by producer price. The highest cost component was seed. Therefore, there should be a significant effort to find out the efficient use of seed, as well as to increase the capacity of farmers in producing good quality seeds efficiently. It is a challenge for breeding research to produce potato’s varieties with higher yields than currently exist in Indonesia. Another challenge is the research on the use of cut seed into pieces with minimum of two shoots per section.

Ways of improving tariff regulation efficiency

The system of tariff regulation in the Russian Federation has been experiencing improvements since the beginning of the transition period and up until today. The issues of tariff regulation are given particular attention to both in the Russian Federation and abroad. At the time, tariffs do not form subsequent to certain economic waves, but are in most cases described by an annual regulation cycle and a quite limited range of regulation with regard to the long-term horizon. The authors have analyzed average consumer prices (tariffs) for particular services along with producer price indices by types of economic activities and average annual producer prices for main energy resources in Russia over the last 20 years based upon the official statistical data. The authors conclude that it is necessary to introduce new ways of improving tariff regulation efficiency. Among the priority ways are the following: formation of an investment-worthy tariff and justification of the supporting tariff for crucial social projects; digital tariff modeling and etc. All these changes require methodological justification and further development of the variable supporting tariff theory in order to test new cyclic models of regulation matching the cyclic economy of the country.

Struktur, Perilaku, dan Kinerja Pasar Benih Jagung (Zea Mays L.) di Amerika Serikat, India, dan Indonesia

The growth of corn demand in the world has an impact on the lack of fulfillment in the world, so it needs some effort to increase the production through corn seed optimation. The three of corn production center in the world are United States of America, India, and Indonesia. The aim of this study are to analyze and compare the structure, conduct, and performance of corn seed market in United States of America, India, and Indonesia and also to analyze the suitable policy recommendation to improve Indonesian corn seed marketing efficiency. This research used literature review method to analyze the data. The results shows that the market structure of corn seed market in United States of America, India, and Indonesia is oligopoly. The market conduct of corn seed market in United States of America, India, and Indonesia are same, which is a merger and particular agreements practice among the seed companies. The most efficient market is India, with the value of producer price share 76.08%.

The impact of agricultural producer price on sustainable food security in Africa – a system GMM approach

Purpose. Given the efforts towards achieving the United Nations’ Sustainable Development Goals (SDGs) for food security by 2030, this study investigates the moderating impact of public investments in agriculture on the agricultural producer price – agricultural sustainability nexus in 40 African countries covering the period from 2000 till 2019. Methodology / approach. In this study we used multiple regression techniques to explore a dynamic panel data model based on the one-step system Generalized Method of Moments (System-GMM). Proposed by Arellano and Bover and further developed by Blundell and Bond, the System-GMM estimator was preferred over other techniques because of its efficiency in eliminating the simultaneous biases that are associated with regression model estimations. Specifically, the one-step System-GMM was preferred over the two-step System-GMM for our estimation due to the efficiency of its optimal weighting matrices. Results. The study discovered that although the interactions between public investments on agriculture and agricultural sustainability amplify the positive impact of a set of explanatory variables on agricultural producer price to an extent, the impact on food security in Africa is insignificant. The study also discovers that the net effects of a set of interactive terms on producer price in the developing countries in Africa are slightly lower than in the least-developed countries. The weighted average food security index for the period under study was abysmal 44.54%, indicating moderate food insecurity in Africa. Originality / scientific novelty. In the context of food security literature in Africa, this study is the first attempt at exploring the agricultural producer price – agricultural sustainability nexus based on the moderating impact of public investments on agriculture with the Global Food Security Index (GFSI), a composite food security model developed by the Economist Intelligence Unit (EIU). Among our study proposals it is a call for a detour from the current agricultural investment and producer price policies especially the current ‘one-size-fits-all’ regional frameworks which have proved to be less progressive and less transformative to more robust country/sector-specific frameworks that have the potential to better the fortunes of agriculture and improve food security. Practical value / implications. The current state of agricultural producer price in most African countries is ample proof that the role and importance of the producer price have been gravely diminished. Despite governments’ efforts towards improving food security, the evidence as presented in this study supports the fact that those efforts have not achieved much success. The study, which contains a number of recommendations, highlights agricultural producer price as a potentially important driver of agricultural sustainability and sustainable food security in Africa.