Patterns of external insertion in global value chains: a comparative analysis between Brazil and China

ABSTRACT The international trade literature has shown the benefits of the international fragmentation of production for developing countries. However, there are considerations about the hierarchy and control in Global Value Chains (GVCs). Thus, this research aims to evaluate the Brazilian and Chinese international insertion in GVCs by proposing an index about technological sophistication in exports (qtech) by technological intensity for 2005-2015. The results pointed out that the integration in GVCs and technological sophistication have been directed towards technological clusters in which Brazil has revealed comparative advantages, while China has been moving towards technological clusters with dynamic comparative advantages.

Differences in Distance and Spatial Effects on Cross-Border E-Commerce and International Trade

Distance and space are important factors affecting international trade, but they have different effects on cross-border e-commerce (CBE) due to the creation of the Internet. This study utilizes spatial autocorrelation, the multi-dimension gravity model and the Spatial Durbin model to conduct an comparative analysis of international trade and CBE within one-belt one-road (BR) countries. Our study obtained several key findings. Firstly, the spatial autocorrelation effect which exists in international trade does not exist in CBE. Secondly, the geographical distance effect of CBE is not significant, which is different from that of international trade. Thirdly, CBE is affected by GDP, culture, policy and institution distances which is not entirely consistent with international trade. Finally, the Spatial Durbin model shows that the spillover effect of CBE and international trade are both significant in the inverse distance weight matrix. These findings provide not only important theoretical contributions but also a practical guide for Government policy makers of the BR and CBE.

The influences of cultural values on the cultural product trade: evidence from China, Japan and Korea

Purpose International trade flows of cultural goods have grown noticeably in the past few decades and the development of cultural products trade has been an important issue in the international business field. Therefore, this study aims to explore how per capita gross domestic product, distance, culture, Internet penetration and other factors affect the trade of cultural products. Design/methodology/approach The paper focuses on the international trade in cultural goods of China, Japan and Korea with other countries. To analyze the essential reason, the study has applied the classical gravity model along with variables, which mainly represent global connectedness to investigate which variables have the most impact on trade in cultural products. Findings The result shows that in terms of China, cultural similarity boosts the volume of trade volume with other countries, however, for South Korea and Japan, cultural similarity does not have a significant impact. On top of cultural similarity, individual cultural value dimension differences between countries show mixed results for each country and their directions of trade. Global connectedness, on the other hand, is not congruent with the general expectations of previous studies. Research limitations implications Due to the limited time for data collection, the research was done with a relatively small country list with a limited number of cultural good items. Second, the Kogut and Singh index is one of the most popular measures based on cultural dimension deviation. It is based on the Euclidean calculation method used by most scholars but some scholars believe that the Euclidean method has some shortcomings. Third, the authors do not actively promote robust testing after regression analysis this work would be carried out in the future. Finally, using the four basic cultural dimensions proposed by Hofstede in 1980 may be another limitation. Practical implications First, the authors should further promote the establishment of the China-Japan-South Korea Free Trade Area. The three countries should formulate special policies to favor the trade of cultural products and support the development of the cultural industry. Additionally, the three sides should also set up a joint research center to explore the issue of improving the international competitiveness of cultural products trade and find common solutions. And the three countries should further open their doors within the reasonable range, relax the restrictions on tourism and trade visas. Originality/value The analysis provides some different results as the previous papers. Distance variables show positive effect on trade which defines that long distance between countries do no matter on trade in cultural goods. Moreover, the variables of tourism receipt shows that global connectedness positively effects on trade. The cultural variables of the KS composite index show opposite result with the conventional logic which advocates that cultural dissimilarity enhances trade in cultural goods.

Trade-based money laundering: development of the «red flags» system

The OECD and the FATF highlight the problem of money laundering via international trade with a view to disguising illicit gains and moving value through the use of trade transactions. For example, inaccurate invoices may be used, which, according to the Global Financial Integrity estimates, resulted in $0,9 trillion to $1,7 trillion losses in 148 countries in 2006–2015. In Russia, the authorities attempt to reduce the risks of money laundering within the framework of international trade through the use of currency regulation, while foreign countries are using a risk-based approach by developing the “red flags” systems that allow financial intelligence agencies, customs and other state bodies as well as subjects of financial market (through which the payments for export-import transactions are made) and the companies participating in international trade themselves to determine whether a transaction entails risks of money laundering. In addition, internal and international inter-agency exchange of information related to money laundering in international trade, including trade and financial data, is being developed.