Bilateral trade trends and patterns of Bosnia and Herzegovina: Case of trade with Turkey

A country's trade pattern reflects its supply (export) and demand (import) specialization indicating national performance and competitiveness in the foreign as well as in the domestic market. By applying two different concepts of trade specialization (one based on traditional trade theories of comparative advantages and the other based on modern trade theories), complemented with the analysis of export-import flows and relations, the paper aims to identify characteristics of the position of Bosnia and Herzegovina (B&H) in its bilateral trade. The paper investigates trends, patterns and variations in the trade of B&H with Turkey during the eleven-year time frame (2009-2019), with special regard to identifying industries with revealed comparative advantages and industries with dominancy of IIT. The analysis employs different indicators such as indices of export composition, sectoral diversification/concentration, IIT intensity and structure, quality of exports and imports based on relative unit values and classification of industries by technological intensity. The research results indicated an unfavourable position of B&H in trade with Turkey, with no prominent changes in the observed period. The trade deficit is constantly present, with low export-import coverage and a declining export trend. The analysis revealed a higher level of export product concentration primarily on low value added products, and comparative advantages of B&H in fewer industries, mainly resource-based or medium-technologically intensive. Trade with Turkey is extremely inter-industry trade, viewed both at an aggregate and industrial level, also pointing to B&H's low competitiveness in analyzed trade relations.

The drivers of Italian exports and product market entry: 1862–1913

Between its unification and WWI, Italy’s changing export composition echoed its economic transformation. In this paper, I decompose Italian export growth in its margins and then analyze the determinants of Italian exports and product market entry (and exit). To do so, I use two different databases (aggregate and product-level bilateral trade data) and methodologies (gravity and logit models). Besides confirming some well-known empirical and historical facts for the Italian case (gravity variables hold; trade follows a Heckscher–Olhin pattern), the regression results offer a new perspective on two distinctive features of its history: trade policy and emigration. These two factors are positively associated with Italian exports and product market entry. These findings also have additional implications for the role of emigration on the course of the Italian economy: accounting for the trade channel, its overall effect may be larger than previously thought.

Kekuatan Pasar (Market Power) dan Pangsa Ekspor Produk Ban (HS4011) Indonesia dan Negara Pesaing di Malaysia dan Filipina

The exporters of Indonesian and Thailand tire products have the same capability in price mark-ups in the Malaysian market. The price mark-up capability of tire exporters from Indonesia, Thailand and China is greater than the domestic tire industry in the Philippines. However, China has a greater share of tire exports in the Malaysian and Philippine markets and is likely related to China's ability to be able to increase the export composition of various types of tires. Indonesia needs to encourage the domestic tire industry to increase the production capacity of various types of tires through investment and relocation of the tire industry to Indonesia amid the downward trend in China's manufacturing industry. Need to develop tire products for the types of trucks, buses, tractors and heavy equipment that are often used in the construction, agriculture, mining and cargo transportation ports to enlarge market share in Malaysia and the Philippines because Indonesia has competitiveness from the aspect of raw materials. The potential export of various types of tires in the two export destination countries is a challenge to increase the number of exports of Indonesian tire products.

Cultural traits and productive transformation: Colombia in international perspective

Drawing from the consideration of cultural values as an explanatory factor of economic development, this article correlates the cultural traits reported by Hofstede’s Cultural Dimension model with the results in terms of industrialization for Colombia and selected cultural clusters. By contrasting industrialization-oriented policy choices with the evolution of export composition and industrial competitiveness indicators, we conclude that guided by a short-term, materialistic, nepotistic, and intolerant to uncertainty orientation, Colombian economic authorities and elites have helped in the prolongation of an underdeveloped industrial structure by favoring closed groups through extractive institutions, while Asia, instead of adopting ‘western values’, has drawn upon a long-term orientation to implement risky but sound, coordinated, and convergent social and economic policies in order to industrialize.

Export Composition and Long-run Economic Growth Impact: A Cointegration Analysis for ASEAN ‘Latecomer’ Economies

Export expansion can be a significant engine of economic growth for developing economies. The size of the growth effect of exports depends not only on volume but also on the sectoral composition of exports. By explicitly considering the sectoral export composition, this article examines over a 31-year period the long-run growth impact of exports in four transition and emerging economies of the Association of Southeast Asian Nations (ASEAN), namely Cambodia, Laos, Myanmar and Vietnam. More specifically, for each country, a long-run equilibrium analysis within a cointegration framework is conducted for three broad sectors (agriculture, mining/natural resources and manufacturing) as well as for 22 manufacturing industries during 1987–2017. The results indicate that there has been sizeable export expansion (especially in Vietnam), but export composition differs substantially across economies, which has an effect on the overall growth impact of the country’s exports. Clear evidence of export-led growth is found only for some sectors. Countries that rely heavily on primary goods have experienced relatively lower export-led growth. Export restructuring in manufacturing industries is associated with a larger long-run growth effect for a country’s exports. Our findings suggest that policies encouraging diversification away from traditional export sectors would be expected to lead to higher long-run growth effects of exports. Furthermore, our analysis implies a steady strengthening of export dynamism in ASEAN ‘latecomer’ economies and their rising significance in the global trade system. JEL Classification: F14, F43, F63, O11, O47

Export composition and economic growth: evidence from South Asian countries

Purpose The purpose of this paper is to analyze the impact of export composition (diversification or specialization) on economic growth of South Asian countries, while export diversification is further categorized into horizontal and vertical export diversification. Design/methodology/approach The study uses Cobb-Douglas production function, in which export is augmented in the production function. To analyze the non-linear relationship (inverted U- or U-shape) with economic growth, square term of exports Herfindahl index, horizontal, and vertical export diversification are introduced in the model. Panel data of four countries of South Asia, i.e. Bangladesh, India, Pakistan and Sri Lanka is utilized from 1990 to 2013 at annual frequency under fixed effect model. Findings Exports Herfindahl index represented inverted U-shape relationship with economic growth. An increase in export diversification lead to higher economic growth initially, however, after the threshold level, export specialization have positive impact on economic growth. Horizontal export diversification is not beneficial for economic growth initially, however, after the threshold level, introducing new sector increases economic growth in South Asian countries. Vertical export diversification has insignificant and U-shaped relationship with economic growth. Practical implications Education and skill formation are essential components for creativity and innovation, therefore attention must be paid toward labor training and education. Government must encourage the exporters to increase diversification in their export portfolio as well as provide incentives and technical assistance for research and development in the manufacturing sector. Originality/value This study contributes by analyzing the non-linear relationship between export composition, i.e. diversification (horizontal and vertical) or specialization and economic growth in South Asian countries. The study is useful to boost the potential level of exports on sustainable economic growth of South Asian countries. This study provides the essential evidence, information and better understanding to key stakeholders of exports.