ARTICLE | doi:10.20944/preprints202012.0621.v1
Subject: Social Sciences, Accounting Keywords: Export; export; international trade; the flexibility of production; China; EU
Online: 24 December 2020 (13:18:41 CET)
The sudden and abrupt rise of COVID-19 became a challenge for the world economy. In this paper, we investigate the changes of a trend of mutual trade between the EU-15 countries and China during the demanding times of the COVID-19 crisis. We use monthly data for Chinese export to the EU (2018:01 – 2020:05) and import from the EU (2018:01 – 2020:07) relying on the data from open source Trademap. We employ descriptive statistics to analyze the trade. Overall, there is the obvious decline of 13-32 per cent in worldwide trade as predicted by the WTO. This affected China as the main trading partner of electronic devices and medical supplies. The trade between the EU and China has decreased, but the major change in demand brought the alteration in commodities structure and re-orientation of Chinese export production. In the first five months of 2020, we have witnessed strong engagement of the Chinese economy in new highly demanded production - mainly to articles strongly linked with healthcare and medical equipment. Thus, we have observed that the Chinese were very flexible in changing the structure of export which was triggered by COVID-19 crisis. This flexibility is worth further exploration.
ARTICLE | doi:10.20944/preprints202011.0288.v1
Subject: Keywords: Export product diversification; Services export diversification; Financial Openness; Developed and Developing countries.
Online: 9 November 2020 (23:22:34 CET)
This paper investigates empirically the effect of export diversification (i.e., both export product diversification and services export diversification) on financial openness, using a sample of 119 countries (including both developed and developing countries) over the period 1985-2014. Based on the Blundell and Bond's two-step system Generalized Methods of Moments, the analysis has revealed that both export product diversification and services export diversification influence positively financial openness. However, this outcome hides differentiated effects across countries in the full sample. Specially, countries with a very high real per capita income experience a positive effect of export concentration on financial openness, while for countries with a relatively lower per capita income, it is rather export diversification that drives positively financial openness. Interestingly, the effect of export diversification on financial openness depends on the size of external shocks that affect domestic economies, as well as countries' economic growth performance. Overall, these findings add to the empirical literature on the effect of international trade on financial openness by showing that both export product diversification and services export diversification matter for financial openness.
ARTICLE | doi:10.20944/preprints202106.0225.v1
Subject: Social Sciences, Accounting Keywords: Development Aid; Productive capacities; Export resilience; Developing countries
Online: 8 June 2021 (13:01:30 CEST)
The COVID-19 pandemic, like previous major crises, such as the 2008 financial crisis, has had a severe negative impact on international trade flows. International institutions are now exploring ways to help their member states recover from the health crisis, and foster the resilience of their economies to future crises. As far as trade is concerned, institutions that deal primarily with trade matters are making effort to help their member states foster the resilience of their trade performance to future shocks. In this context, the World Trade Organization (WTO), which is the only international organization that deals with the global rules of trade between nations, has organized a series of events since the onset of the COVID-19 pandemic. It has now planned to hold in September 2021 the 2021 WTO Public Forum whose theme is "Trade Beyond COVID-19: Building Resilience". The present paper aims to contribute to this debate by examining the effect of development aid, i.e., the so-called official development aid, in particular its Aid for Trade (AfT) component, on export resilience. The resilience of exports refers to the capacity of countries' aggregate exports to resist to shocks, whether environmental or external shocks. The core argument of the analysis is that development aid would affect export resilience through its effect on productive capacities. The analysis covers 93 developing countries over the period 2002-2018. The findings indicate that total development aid flows, including both AfT flows and NonAfT flows exert a positive effect on export resilience. Among AfT components, AfT for productive capacities appears to exert a higher positive effect on export resilience than AfT for economic infrastructure and AfT for trade policy and regulation. In addition, development aid (whatever the aid variable considered) exerts the highest positive effect on export resilience in countries (such as Least developed countries - LDCs) that have the lowest level of productive capacities. These findings highlight the need for donor-countries to supply higher development aid flows, in particular AfT flows to countries such as LDCs that have low levels of productive capacities.
ARTICLE | doi:10.20944/preprints202011.0676.v1
Subject: Social Sciences, Accounting Keywords: Aid for Trade; Export product diversification; Manufactured exports.
Online: 26 November 2020 (16:43:23 CET)
This article has explored whether Aid for Trade (AfT) flows that accrue to recipient-countries depend on the latter's level of export product concentration. The analysis covers a sample of 133 countries over the period 2002-2017. The findings indicate that least developed countries (LDCs) receive higher AfT flows when they experience a rise in the level of export product concentration, while NonLDCs enjoy higher AfT flows when they diversify export products. Interestingly, higher amounts of AfT accrue to countries that diversify their export product basket towards manufacturing products, although different result patterns appear for the components of manufactured exports.
ARTICLE | doi:10.20944/preprints202009.0603.v1
Subject: Social Sciences, Economics Keywords: Export Product diversification; Poverty; Non-resource tax revenue.
Online: 25 September 2020 (10:59:19 CEST)
The current paper has examined the effect of both export product diversification and poverty on non-resource tax revenue in developing countries. The analysis has used an unbalanced panel dataset of 111 countries over the period 1980-2014. Based on the Blundell and Bond two-step system Generalized Methods of Moments technique, the empirical analysis has shown interesting findings. Export product concentration and poverty influence negatively non-resource tax revenue over the full sample, but this effect varies across countries in the sample. Furthermore, the effect of export product diversification on non-resource tax revenue performance depends on the level of poverty. It appears that export product diversification influences positively non-resource tax revenue performance in countries that experience lower poverty rates. From a policy perspective, these findings show that policies in favour of diversifying export product baskets and reducing poverty would contribute to enhancing non-resource tax revenue performance in developing countries.
ARTICLE | doi:10.20944/preprints202205.0240.v1
Subject: Social Sciences, Economics Keywords: Credit constraints; Export; SMEs; Instrumental variable; Probit regression; Vietnam
Online: 18 May 2022 (10:35:32 CEST)
Export participation and restricted access to external formal credit are two factors attracting meticulous attention from researchers and policymakers, especially in developing countries. Exploring the interactive relationship of these factors in both the static and dynamic models is the purpose of this study. The study uses data sets from small and medium-sized manufacturing enterprises (SMEs) in Vietnam for the period 2009 - 2015. The instrumental variable approach is implemented to deal with the endogenous variable problem in the model. The results show an effect of credit constraint on the firms’ exporting status, and continuous exports are likely to reduce the limit of credit constraint.
ARTICLE | doi:10.20944/preprints202104.0684.v2
Subject: Social Sciences, Economics Keywords: GNI; GDP; GNIpc; International Economy; Export; Import; Circle; Model
Online: 4 May 2021 (14:23:16 CEST)
In the book “Everyhing Is A Circle: A New Model For Orbits Of Bodies In The Universe”, and further in the Article “Distance Between Two Circles in Any Number of Dimensions is a Vector Ellipse”, it has been mathematically demonstrated that “distance between points on any two different circles in any number of multiple dimensions” is equivalent to “distance of points on a vector ellipse from another fixed or moving point”. Using this mathematical methodology, a method is provided in this Article as a measure for the amount of interaction between two international economies, which are two countries or economic zones, by modelling each economy in terms of a “circle in four dimensions”. Based on this method, the proximity of the two economies at the end of each fiscal period, which is generally a fiscal year, is then measured by the distance between points at the end of the given period on the two circles in four dimensions, associated with these two economies in our model.
ARTICLE | doi:10.20944/preprints202011.0144.v1
Subject: Keywords: Poverty; Financial development; Education; Trade openness; Export product concentration
Online: 3 November 2020 (09:57:05 CET)
Numerous studies in the literature have investigated the effect of financial development on poverty, and tend to report a poverty reduction effect of financial development. The present paper considers the issue in the other way around, by examining the effect of poverty on financial development. In particular, it has investigated the financial development effect of poverty that passes through three main channels, including the education level, the level of trade openness, and the degree of export product concentration. The analysis is carried out using a sample of 97 developing countries over the period 1980-2017, and the two-step Generalized Methods of Moments (GMM). Results have shown that poverty genuinely affects financial development through these three channels. Specially, lower poverty rates induce greater financial development in countries that experience higher education levels. Similarly, a rise in poverty rates in the context of restrictive trade policies (that eventually result in lower levels of trade openness) undermines the development of the financial sector. Finally, higher poverty levels adversely affect financial development in countries that experience an increase in the level of export product concentration.
ARTICLE | doi:10.20944/preprints201706.0095.v1
Subject: Social Sciences, Finance Keywords: China；economic growth；export market；economic policy； potential drivers
Online: 20 June 2017 (11:18:07 CEST)
The purpose of this paper is to apply China’s economy growth prospects and its potential drivers of future. China's fast rise and its growth model have accelerated important existing structural trends in the global economy and made them decisive characteristics of the world economy. China's role in the world economy over the coming decades, an exercise which would not be possible without an investigation of the prospects for China's continued economic rise. On the one hand, China is a large export market for the United States. A lot of U.S. firms use China as the final destination of assembly in their global supply chain networks. China’s huge holdings of U.S. Treasury securities support the federal government finance its budget failures. However, some analysts contend that China consolidates a number of distortive economic policies such as protectionist industrial policies and an undervalued currency that undermine U.S. economic interests. They warn that efforts by the Chinese government to promote indigenous innovation, often through the use of subsidies and other distortive measures, could negatively affect many leading U.S. industries
ARTICLE | doi:10.20944/preprints201806.0253.v1
Subject: Social Sciences, Economics Keywords: Trade, competitiveness, export, index, assessment, method, data, revealed, comparative advantage, development, diversification, centralization
Online: 15 June 2018 (12:27:03 CEST)
The competitiveness of domestic products at the regional or global market is one of the cornerstones of a country’s internationalcompetitiveness. In this regard, the assessment and analysis of the competitiveness of a country’s international trade becomes an important issue. Thus, development and diversification of the export potential of the country is viewed as one of the most important directions of the international trade policy of the given country. Therefore, another important task is the specialization of the country in the most efficient and competitive segments of the economy. The above-mentioned circumstances embody the fact, that the role of quantitative assessment of potential competitive advantages is important, as it allows determining to what extent certain factors influence on the formation of export capacity in the country. The main objective of the study is to determine the role of export competitiveness in the process of competitive advantages formation of a country. This study mainly focuses on quantitative analysis based on the calculation of Balassa index, determining the extent to which a country has a comparative advantage in producing and exporting certain goods. The study presents the example of the Republic of Armenia, the study covers the period between 2002- 2016. Based on the index calculation, it can be determined whether the country has "revealed" comparative advantage or not. The practical significance of the study lies in the fact that its main findings and conclusions arising from it can be used in assessing the export competitiveness of not only Armenia, but also for other countries or groups of countries.The outcomes and implication of the research can be used to improve the competitiveness of goods and services in the global market.
ARTICLE | doi:10.20944/preprints201803.0201.v1
Subject: Arts & Humanities, Other Keywords: Finland; Nordic; cultural objects; manuscripts; research ethics; import regulation; export regulation; cultural heritage
Online: 23 March 2018 (15:32:08 CET)
In this article we shed light on the position of Finland in conversations on the movement of unprovenanced cultural objects, within the national, the Nordic and the global contexts. Finland’s geopolitical position, as a ‘hard border’ of the European Union neighbouring the Russian Federation, and its current legislative provisions which do not include import regulation, mean that nonetheless has the potential to be significant in understanding the movement of cultural property at transnational levels. In particular, we outline a recent initiative started at the University of Helsinki to kick-start a national debate on ethical working with cultural object and manuscripts. We analyse exploratory research on current awareness and opinion within Finland, and summarize our current work to produce robust research ethics to guide scholars working in Finland. Although Finland has a small population and is usually absent from international discussions on the illicit movement of cultural property (save a few exceptions), we argue that it is still possible — and important — to affect policy and attitudes concerning art crime, provenance, and the role of stakeholders such as decision-makers, traders and the academy.
ARTICLE | doi:10.20944/preprints202107.0049.v1
Subject: Social Sciences, Accounting Keywords: System Dynamics, Overseas Warehouse, Cross-border E-commerce, Logistics Service Quality, Healthcare Supplies Export
Online: 2 July 2021 (11:13:54 CEST)
The novel coronavirus pneumonia epidemic is still raging around the world. Therefore, during the period of a global pandemic, maintaining the normal circulation of medicine and health fields is the key to fight against the epidemic. This paper based on relevant data such as the export volume of cross-border e-commerce in Hangzhou, China from 2015 to 2019, the article uses system dynamics modeling to explore the impact of overseas warehouse services on cross-border e-commerce export transactions. Studies have shown that the introduction of overseas warehouses has significantly improved customer satisfaction and improved the quality of cross-border logistics services, which has a positive impact on cross-border e-commerce export transactions. Through sensitivity analysis, it can be seen that under the same conditions, the efficiency of customs clearance has the greatest impact on overseas warehouse services. Therefore, when allocating various investments in overseas warehouses, you can favor the customs clearance process to enhance the competitiveness of the cross-border e-commerce market and provide a feasible experience for healthcare supplies export from cross-border e-commerce.
ARTICLE | doi:10.20944/preprints202103.0427.v1
Subject: Social Sciences, Political Science Keywords: Switzerland; defence industry; defence policy; the Federal Office for Defence Procurement; RUAG; arms export
Online: 16 March 2021 (14:15:25 CET)
When we talk about the Defence Industry (DI), arms transfers, and military expenditures we mostly refer to data accumulated by the Stockholm International Peace Research Institute (SIPRI). In the SIPRI Top 20 list of largest exporters of major arms for 2019, small states hold consecutive positions: Israel takes 8th place, Switzerland is 13th, and Sweden, Norway, and Belarus place 15th, 17th, and 20th respectively. The author analyses the Swiss DI case due to several reasons; its place in SIPRI Top, its sharp rise of Swiss arms exports in the recent year, its Swiss neutrality strategy, the country’s multilingual society, and its all-government approach to the arms industry, though still contributing to the limited scholarly studies on contemporary Swiss DI. This paper aims to explore Swiss DI and its strategies, to identify the country’s defence and security policy influence towards DI, and to discuss the Swiss DI stance and future perspectives in the context of the global arms trade. At the same time, this paper also highlights Swiss DI successes and failures that could be of significant use to other small states aiming to develop or enhance their relevant DIs.
ARTICLE | doi:10.20944/preprints202002.0162.v1
Subject: Social Sciences, Economics Keywords: Special Economic Zones; Small Medium Enterprises; Joint Ventures; Export Lead Industrialization; Developing Economies; Industrial Clusters
Online: 13 February 2020 (10:10:33 CET)
Over the last three decades, special economic zones (SEZs) have given new impetus to the ever-growing export-oriented industrialization in developing countries. Where various economies have benefited from SEZs, many zones have ended up becoming enclaves with trifling advantage. The SEZs in Pakistan have experienced the same fate and failed to contribute to exports, employment and creating linkages with the domestic economy. Recently under China Pakistan Economic Corridor (CPEC), SEZs are proposed to be set up in Pakistan; with a hope to fuel the stuttering economy. However, it is pertinent to first understand the local context and device policies considering stakeholders' perspectives. This study aims to identify the factors for the successful implementation of SEZs derived from the regional context of Pakistan. In-depth interviews are conducted from most relevant stakeholders, who have been involved in the development of SEZs. The results pointed towards the removal of political influence over zones and government taking the lead role in deciding the types of industry to be invited in these zones. Each zone should have a clear vision of development based on its regional advantage. The zone promotions should be based on competitiveness rather than fiscal incentives. Joint ventures and PPP to be encouraged inside the zones for sustainable operations.
ARTICLE | doi:10.20944/preprints202011.0230.v1
Subject: Social Sciences, Accounting Keywords: Poverty; Foreign direct investment inflows; Human capital; Trade openness; Export product diversification; Economic growth; Labour productivity; Financial development; Infrastructure development.
Online: 6 November 2020 (09:03:02 CET)
The present paper investigates the effect of poverty on foreign direct investment (FDI) inflows in developing countries. It complements the important extant literature on the effect of FDI inflows on poverty by examining the issue the other way around. The analysis is conducted using a sample of 117 countries over the period 1980-2017, and the two-step system Generalized Methods of Moments (GMM) technique. It has relied on two indicators of poverty, namely poverty headcount ratio and poverty gap. Findings indicate that over the full sample, poverty influences negatively FDI inflows, including through its adverse effect on human capital (that is, both education and health). Unsurprisingly, low-income countries (considered as poorest countries in the full sample) experience a higher negative effect of poverty on FDI inflows than other countries. On another note, participation in international trade matters for the effect of poverty on FDI inflows. In fact, an increase in poverty levels results in lower FDI inflows in countries that experience low workers' productivity, a less developed financial sector, and a low level of infrastructure development. Furthermore, the effect of poverty on FDI inflows does not depend on the prevailing economic growth rate. Finally, the analysis has revealed the existence of a non-linear effect of poverty on FDI inflows for the poverty headcount indicator, but not for the poverty gap indicator. The non-linear effect of poverty headcount on FDI inflows is such that a rise in poverty headcount ratio results in lower FDI inflows, but an additional increase in poverty more than further discourages FDI inflows. The conclusion discusses the implications of these findings.
ARTICLE | doi:10.20944/preprints202110.0068.v2
Subject: Social Sciences, Business And Administrative Sciences Keywords: Cross-Border Electronic Commerce (CBEC); Export Marketing Strategy (EMS); International Dynamic Marketing Capability (IDMC); Dynamic Managerial Capability (DMC); Entrepreneuri-al Orientation; Networking Capability; Versatile Dynamic Capability
Online: 4 January 2022 (20:26:24 CET)
For better export marketing strategies (EMS), companies mobilize their internal resources, which are managerial commitment, firm experience, and product uniqueness. However, Small businesses with constrained resources cannot be well explained with this view. So, more research on how small business come up with EMS have been called for. To explain how resource-restricted firms which rely heavely on entrepreneur, this study adopted the concept of dynamic managerial capabilities (DMCs) and resource versatility to better explain small business exports. We analyzed small businesses in Mongolia with qualitative research methods, including interviews with entrepreneurs and support organizations, site visits, and group discussions. We suggest international dynamic marketing capabilities (IDMCs), which are entrepreneurial orientation, networking capability, and versatile dynamic capability for small business. Theoretical and managerial implications are discussed.
ARTICLE | doi:10.20944/preprints202108.0025.v1
Subject: Social Sciences, Marketing Keywords: Cross border electroniceletronic commerce(CBEC); Export Marketing Strategy(EMS); Marketing Mix; Micro, Small and Medium sized enterprise(MSMEs); Aid for Trade; Micro Entrepreneur
Online: 2 August 2021 (12:07:48 CEST)
Cross-border e-commerce is an opportunity for micro, small and medium sized enterprise (MSMEs) in developing countries. Based on a resource-based approach, this research studied how to support resource lacking enterprises with export marketing strategy. It dealt with actual business cases of Mongolian entrepreneurs trying to export Mongolian products to Korean market. Multiple source data including interviews, internal documents, and group discussions, were matched with theories to come up with strategies and validated by supporting organizations in Mongolia and Korea. The research suggests that MSMEs should rely on third party digital platforms rather than setting up their own. For product strtategy of the marketing mix, sellecting competitive product categories and supporting them adjusting to foreign markets and quality assurance is needed. For price strategy, loccally high priced products should use a price penetration strategy with a lower price compared to competing foreign products. For place strategy, supporting organizations should partner with exporters for collective delivery. For promotion strategy, they need to support the capacity of MSMEs enabling them to use digital marketing tools effectivly. These strategies were validated and adopted by supporting organizations in Monglia and Korea.
ARTICLE | doi:10.20944/preprints201901.0325.v1
Subject: Keywords: agriculture; grain and products of its processing; competitiveness; prices; production volumes; export; import; price competitiveness factor; integral indicator of competitiveness; Eurasian Economic Union (EAE); factor analysis; panel data models
Online: 31 January 2019 (09:23:42 CET)
This article discusses the outcomes of a quantitative analysis of the competitiveness of grain and its recycling in the countries-members of the Eurasian Economic Union (EEU) through econometric panel data models. The analysis is based on the data of public authorities’ statistics of the countries-members of the EEU, as well as the United Nations Comtrade Database which is a repository of official international trade statistics. The results of the analysis allow to assess the level of competitiveness of produced agro-food products in the countries-members of the EEU and determine the extent to which various factors affect it. The research conclusions can be used to develop and adjust the agreed with the agro-food policy in the EEU.