The Efficiency of Corporate Tax Incentives in Developing Countries Based on Foreign Direct Investments

During the last quarter century, a remarkable global growth was experienced in Foreign Direct Investment (FDI), especially the developing countries, considered FDIs as an important factor in overall economic development strategies. The developing countries aim to attract foreign capital to strengthen their local economy, increase market opportunities, and provide better services to the society. For this purpose, these nations implement various types of tax incentives. Although there are several studies on the effectiveness of tax incentives in FDI, the issue has not been tackled with respect to developing countries. The present study scrutinized the effectiveness of corporate tax incentives in developing countries based on FDI. In conclusion, it could be suggested that tax incentives may be effective in increasing FDI; however, in this group of countries with low level of investments and complex laws in taxation and other fields and could not cope with innovations, red tape and poor governance, it is also important to develop the organizational infrastructure for investments.

Preferential Trade Agreements of the Eurasian Economic Union

One of the trends in the development of modern trade relations is the increase in the number of concluded preferential trade agreements (PTA), which are considered to be a tool for reducing tariffs and, as a consequence, reducing the costs of entering the domestic market of the partner country. Although the Eurasian Economic Union (EAEU) has made only the first steps on the way towards its development. The EAEU has already managed to create a free trade zone with Vietnam, some agreements have been signed with Iran and China. Each of these agreements has its own specifics. The purpose of this chapter is to identify the economic feasibility and political significance of these preferential trade agreements for the countries of the EAEU and their external partners, as well as to determine the potential expansion of the network of preferential trade agreements of the EAEU.

An Analysis of Risk Transfer and Trust Nexus in International Trade With Reference to Turkish Data

International trade introduces a range of risks, which causes uncertainty over the timing of delivery and payment between exporters and importers. This chapter is a first attempt in dissecting Turkey's trade data in terms of risk allocation and trust between the parties involved. Breaking down Turkish export and import data for the years 2000 to 2018 according to methods of payment and use of currencies, the chapter first finds the risk is distributed unevenly between the exporter and the importer. Then findings are evaluated to open a new avenue of future research, constructed on the inquiry whether emerging economies like Turkey can establish trust in their trade with developed economies by using blockchain technology.

The Effect of the U.S.-China Trade War on Global Trade

If one country attacks another country's trade with taxes and quotas, it is defined as a trade war. It is aimed to protect the domestic market from competition. The U.S.-China trade war begun on March 1, 2018, and was centered on the customs duty of 25% for the imported steel and 10% for the imported aluminum. The protectionist measures against each other in both countries have increased day by day. However, the impact of these protectionist measures on global trade is not yet known. In this chapter, the effect of the U.S.-China trade war on global trade is analyzed. For this reason, the export data of the U.S. to China and the global export data yearly is compared. According to the results of the linear regression analysis, if the value of the goods export of the U.S. to China increase 1 unit, the value of global export of the goods increases to 58 units. While the trade wars decreased the goods export from the U.S. to China, it has decreased global goods exports too. In 2018, developments in global commodity exports and the U.S. goods exports to China were observed in the same direction.

Globalization in the Ottoman Empire

The purpose of this chapter is to examine how globalization has played a decisive role in the Ottoman Empire and how it created reform through international trade policies and institutions. The first part will examine the concept of globalization and the integration of the Ottoman Empire into the West, the fundamentals of the Ottomanmentality and the effects of globalization on the Ottoman Empire in the 19th century. The second part will examine how globalization played a decisive role in the Ottoman Empire, the 19th century Ottoman economy, Ottoman international trade, and Ottoman external loans. The third part examines the institutionalization and modernization of the Ottoman Empire, reforms in naval affairs during the reign of Abdul Hamid II, and the organization of the navy. The fourth part will examine the institutional relations in the Ottoman Empire after globalization. Institutions will be examined in terms of how they were restructured or how new ones were created to adapt to a new world order.

USA-China Trade Wars

This chapter analyzes the trade war between the United States of America and China. The United States of America and China are the two biggest trade leaders in the world. The United States supported China for its integration to world trade. The United States accused China of pursuing unfair trade policies. The United States increased tariffs against Chinese imports and China undertook retaliation measures against the United States' tariff increases. The two countries entered a period of a trade war and they started to implement protectionist policies on each other. These protectionist policies between the United States and China are seen as trade wars and could affect the world trade liberalization adversely. As they are trade partners too, it is better for both countries to end this war and to reach an agreement, because trade liberalization efforts could fail.

The Impact of Devaluation on Balance of Trade

The aim of this chapter is to investigate the short and long-run impact of devaluation of the trade balance of Ethiopia. Devaluation has been used as a measure to improve trade balance. The data was collected from the World Bank for the years 1990 to 2017 and analyzed by applying an Autoregressive Distributed Lag (ARDL) approach and an Error Correction Model (ECM). The empirical findings show that the long run Real Effective Exchange Rate (REER) significantly and negatively correlated with the trade balance. The error correction coefficient which shows the adjustment of disequilibrium in the subsequent year is also significant. The empirical result indicated that devaluation of the Birr can improve the trade balance of Ethiopia. However, in reality, the trade balance of Ethiopia is not improved through a consecutive Birr devaluation. This may be resulted from the non-responsiveness of import to devaluation of the Birr, shortage of import substitute domestic products and the dependency of exports on primary agriculture products.

Influence of Tariff Liberalization on Bilateral Trade

The study aims at evaluating and comparing trade effects of tariff liberalization on bilateral trade between Russian and its Asian trade partners: China, India, Thailand and Vietnam. The partial equilibrium model - the Software for Market Analysis and Restrictions on Trade (SMART) model - underlies the research methodology. The authors calculate the trade effects of 1% linear cut of customs duties imposed on key commodity groups of mutual import flows and identify elasticities of bilateral import of different commodity groups on customs duties. On the basis of a comparative analysis of the results obtained, the authors formulated a set of conclusions regarding the efficiency of tariff regulation of imports in different countries and industrial sectors, tracking the changes of the influence of tariff liberalization on the dynamics of import of various categories of goods (depending on the value added and technological effectiveness).

The United States' Interests in the Middle East During the Obama Administration

This chapter aims to analyze the US's foreign policy priorities toward Jordan in the communications of Obama, through the period from 2009 to 2017. It answers the questions: what were the US's priorities in Jordan during the Obama administration? And how Jordan was described by Obama's communications. This work is a creative one, it uses qualitative and quantitative to investigate Obama's activities toward Jordan. In order to classify the US interests in Jordan, we use Byman and Molle's classification of the US's foreign policy interests in the Middle East: counterterrorism, security of Israel, democratization, nuclear proliferation, and oil. This chapter finds that Obama's foreign strategy and approach had been driven by the maxim of ‘multilateral retrenchment', which designed to achieve the United States foreign commitments, reshape its standing among the world powers, and transfer burdens onto foreign partners. The United States of America under the Obama administration substantially depended on Jordan to solve many regional complex issues and crisis.

Trade Protectionism

The increased commercial protection of countries as a result of the Great Depression caused the effects of the global crisis to deepen and last longer. Many countries took short-term steps to minimize the negative social impacts of the crisis by implementing protectionism. However, the crisis was gradually deepened and exerted long-term impacts on macroeconomic variables. The international platform made several attempts to reduce protectionism. However, following the global economic crisis in 2007-2009, the barriers to international trade have increased in many countries, especially in the USA. In many countries, inward-looking protectionist economic policies have been increasingly preferred. Thus, the global impact of countries' adoption of protectionism in their international trade policies has begun to be discussed in terms of the pros and cons for partners. This study analyzes the pros and cons of international trade protectionism on the basis of the impact of trade on macroeconomic variables. The results show that not only protectionism but also free trade produces both winners and losers.