Foreign Trade Review

- Publisher:
- Sage Publications, Inc.
- Publication date:
- 2021-08-12
- ISBN:
- 0015-7325
Issue Number
- No. 58-2, May 2023
- No. 58-1, February 2023
- No. 57-4, November 2022
- No. 57-3, August 2022
- No. 57-2, May 2022
- No. 57-1, February 2022
- No. 56-4, November 2021
- No. 56-3, August 2021
- No. 56-2, May 2021
- No. 56-1, February 2021
- No. 55-4, November 2020
- No. 55-3, August 2020
- No. 55-2, May 2020
- No. 55-1, February 2020
- No. 54-4, November 2019
- No. 54-3, August 2019
- No. 54-2, May 2019
- No. 54-1, February 2019
- No. 53-4, November 2018
- No. 53-3, August 2018
Latest documents
- Ex-Ante Evaluation of India’s Trade Alliance with Indo-Pacific Region: A General Equilibrium Analysis
The study attempts to analyse the economy-wide impact of Indo-Pacific alliance between India and rest of the 45 participating members using computable general equilibrium (CGE) model. We introduce four simulation scenarios in the general equilibrium model. The first scenario is the one in which India bilaterally liberalises trade in terms of both tariffs liberalisation alone and then removal of tariffs and reduction of non-tariff barriers together with all the countries of Indo-Pacific region. The second scenario is when India bilaterally liberalises trade with all the Asian countries of the Indo-Pacific region. The third scenario is when India bilaterally liberalises trade with all the countries of the Indo-Pacific region but excludes China from the region because of the current geopolitical reasons. The fourth scenario is the one when free trade is considered among all the countries in the Indo-Pacific region. The Indo-Pacific alliance seems to go beyond strategic alliance with the 46 Indo-Pacific participating countries, wherein the members gain due to potential movement of capital and welfare and economic gains because of tariff and non-tariff liberalisation among the member countries. The article suggests the road map for maximum welfare gains for India, keeping strategic and economic engagements with other member countries and sub-regions. JEL Code: F15
- Book review: Sugata Marjit, Biswajit Mandal, and Noritsugu Nakanishi, Virtual Trade and Comparative Advantage: The Fourth Dimension
Sugata Marjit, Biswajit Mandal, and Noritsugu Nakanishi, Virtual Trade and Comparative Advantage: The Fourth Dimension, Singapore: Springer-Nature, 2020, Ä75.89, 207 pp.
- Ex-Ante Evaluation of India’s Trade Alliance with Indo-Pacific Region: A General Equilibrium Analysis
The study attempts to analyse the economy-wide impact of Indo-Pacific alliance between India and rest of the 45 participating members using computable general equilibrium (CGE) model. We introduce four simulation scenarios in the general equilibrium model. The first scenario is the one in which India bilaterally liberalises trade in terms of both tariffs liberalisation alone and then removal of tariffs and reduction of non-tariff barriers together with all the countries of Indo-Pacific region. The second scenario is when India bilaterally liberalises trade with all the Asian countries of the Indo-Pacific region. The third scenario is when India bilaterally liberalises trade with all the countries of the Indo-Pacific region but excludes China from the region because of the current geopolitical reasons. The fourth scenario is the one when free trade is considered among all the countries in the Indo-Pacific region. The Indo-Pacific alliance seems to go beyond strategic alliance with the 46 Indo-Pacific participating countries, wherein the members gain due to potential movement of capital and welfare and economic gains because of tariff and non-tariff liberalisation among the member countries. The article suggests the road map for maximum welfare gains for India, keeping strategic and economic engagements with other member countries and sub-regions. JEL Code: F15
- Russia-Ukraine War and WTO’s National Security Exception
The Russian invasion of Ukraine is one of the most flagrant violations of international law in recent times. The Russian action has received global condemnation with various countries imposing sanctions on Russia. This article argues that concerning imposing trade sanctions against Russia, countries can rely on the national security exception in the World Trade Organization (WTO). The relevant legal provision in this regard is Article XXI of the General Agreements on Tariffs and Trade (GATT). The article undertakes a doctrinal analysis of GATT’s Article XXI. This analysis is conducted in the light of two WTO disputes—the Russia: Transit case and the Saudi Arabia: Intellectual Property case—that have interpreted the national security exception. The article argues that while the national security exception given in GATT’s Article XXI is not self-judging, countries will enjoy deference in determining their essential security interests. The article then applies this doctrinal understanding to the current Russia–Ukraine war. The current situation will fall under Article XXI, and countries can impose trade-restricting measures against Russia (such as suspension of the most-favoured-nation treatment) following Article XXI of GATT. JEL Codes: F13, F19, F52, F51
- Book review: Sugata Marjit, Biswajit Mandal, and Noritsugu Nakanishi, Virtual Trade and Comparative Advantage: The Fourth Dimension
Sugata Marjit, Biswajit Mandal, and Noritsugu Nakanishi, Virtual Trade and Comparative Advantage: The Fourth Dimension, Singapore: Springer-Nature, 2020, Ä75.89, 207 pp.
- The J-Curve Effect in Services Trade: A Disaggregated Analysis
This article examines the relationship between the real exchange rate and the services trade balance in the UK using the quarterly data for the 2005Q1–2019Q4 period. We consider the aggregate as well as disaggregated trade across five services categories. We employ linear and non-linear autoregressive distributed lag (ARDL) models. The non-linear model, in particular, allows consideration of asymmetric response of the trade balance to depreciations as opposed to appreciations. The findings indicate little evidence of a long-term improvement in the trade balance following depreciation, and suggest the absence of J-curve effect. The effects of domestic, ‘rest of the world’ GDP and monetary base on the trade balance were respectively negative, positive and mixed. JEL Codes: F14, F31, C22
- Russia-Ukraine War and WTO’s National Security Exception
The Russian invasion of Ukraine is one of the most flagrant violations of international law in recent times. The Russian action has received global condemnation with various countries imposing sanctions on Russia. This article argues that concerning imposing trade sanctions against Russia, countries can rely on the national security exception in the World Trade Organization (WTO). The relevant legal provision in this regard is Article XXI of the General Agreements on Tariffs and Trade (GATT). The article undertakes a doctrinal analysis of GATT’s Article XXI. This analysis is conducted in the light of two WTO disputes—the Russia: Transit case and the Saudi Arabia: Intellectual Property case—that have interpreted the national security exception. The article argues that while the national security exception given in GATT’s Article XXI is not self-judging, countries will enjoy deference in determining their essential security interests. The article then applies this doctrinal understanding to the current Russia–Ukraine war. The current situation will fall under Article XXI, and countries can impose trade-restricting measures against Russia (such as suspension of the most-favoured-nation treatment) following Article XXI of GATT. JEL Codes: F13, F19, F52, F51
- Revisiting the Gravity Model of Migration
The recent global migration pattern indicates the importance of the movement of people from developing countries to developed countries in search of better economic opportunities. The G20 report of ‘International Migration and Displacement Trends’ mentions India at the top of the list of highly educated emigrants in G20 countries. The current study addresses the endogeneity problem in the migration determinants and attempts to highlight the major regional and economic determinants of migration flow from India to major OECD countries using the Gravity model of migration. We apply the Prais–Winsten regression method to address the cross-sectional correlation, while we apply instrumental variable regression and Hausman–Taylor regression estimation techniques to deal with the endogeneity issue. The findings reveal that the population of India, distance, common official language and per capita income differential are the major determinants of migration from India. In the backdrop of our findings, in terms of per capita income differential, there is a need for an upward revision in the pay scale of the white-collar workers in the organised sector. JEL Codes: C23, F22, J11, J60
- The J-Curve Effect in Services Trade: A Disaggregated Analysis
This article examines the relationship between the real exchange rate and the services trade balance in the UK using the quarterly data for the 2005Q1–2019Q4 period. We consider the aggregate as well as disaggregated trade across five services categories. We employ linear and non-linear autoregressive distributed lag (ARDL) models. The non-linear model, in particular, allows consideration of asymmetric response of the trade balance to depreciations as opposed to appreciations. The findings indicate little evidence of a long-term improvement in the trade balance following depreciation, and suggest the absence of J-curve effect. The effects of domestic, ‘rest of the world’ GDP and monetary base on the trade balance were respectively negative, positive and mixed. JEL Codes: F14, F31, C22
- Impact of FDI and Its Absorption Capacity on the National Innovation Ecosystems: Evidence from the Largest FDI Recipient Countries of the World
Foreign direct investment (FDI) improves economic growth by stimulating native investment, facilitating technology transfers in the recipient country and increasing human capital development, thus playing a vital role in economic development. On the other hand, innovation is also considered one of the major drivers for the economic growth of a country. This study empirically investigates the impact of FDI and its absorption capacity on the national innovation system of the world’s top five largest FDI recipient countries for the period of 1990–2016. Using two-stage analysis (DEA and Tobit regression), we found that research and development expenditures, researchers in the host country and the number of patents, trademark and industrial design applications are positive drivers of the national innovation systems. Moreover, the FDI inflows positively impact the innovation efficiency in the host countries. However, the strength of this relationship depends on the availability of the absorption capacity of FDI in the host country. The result shows that the global financial crisis and inflation negatively impact the FDI inflows and innovation efficiency in the sample countries. It concludes that FDI inflows and the country’s strength of domestic absorption capacity are essential drivers for developing national innovation ecosystems. JEL Codes: F1, F4, G10, M21
Featured documents
- Evaluating the Effect of Digital Transformation on Improvement of Service Trade in West Africa
Digital revolution is instrumental to the wave of globalisation and transformation of the global economy. But the pace of digital transformation and service trade is low in the West African region. This article investigates the effect of digital transformation on the development of service trade in ...
- The Effect of the European Union Customs Union on the Balance of Trade in Turkey
This article investigates the effect of the customs union between Turkey and the European Union on the balance of trade in Turkey. The framework for analysis is an extended trade gravity model onto which the impact of the customs union is applied. The gravity model of trade is estimated using...
- FDI: Hot or Cold Money? The Behaviour of Sectoral FDI Inflows and Outflows Over Periods of Growth Accelerations and Decelerations
The economic crisis caused by the COVID-19 pandemic invokes questions about a possible prolonged economic deceleration. In this article, we study the impact of output growth accelerations and decelerations, as per the definition of Arbache and Page (2007, More growth or fewer collapses? A new look...
- Impact of FDI and Its Absorption Capacity on the National Innovation Ecosystems: Evidence from the Largest FDI Recipient Countries of the World
Foreign direct investment (FDI) improves economic growth by stimulating native investment, facilitating technology transfers in the recipient country and increasing human capital development, thus playing a vital role in economic development. On the other hand, innovation is also considered one of...
- Index of Non-tariff Measures: A Study of the EU Textile and Garment Market
The post-WTO period has witnessed a rapid increase in growth of non-tariff measures (NTMs). As a result, quantification of NTMs has emerged as an important policy question. Quantification of NTMs is often challenging as these measures, in most cases, do not have direct numerical measurements. Hence,...
- Procedural Requirements of the South African Anti-Dumping Law and Practice Prior to Imposition of Anti-Dumping Duties: Are They Really WTO-inconsistent?
Dumping, which is a form of price discrimination or differential pricing of different units of the same good sold at different prices in different markets, remains a continuing problem for many countries. The World Trade Organisation (WTO) members resort to the imposition of anti-dumping duties or...
- Does Anti-dumping Enforcement Generate Threat?
The last two decades have witnessed that countries across the world are guided by the rules and regulations of multilateral trading institutions (for example, World Trade Organization [WTO], International Monetary Fund [IMF]) in order to promote free and fair trade through gradual reduction in...
- Impact of Non-Tariff Measures on Trade in Mauritius
Gains of international trade are largely based on the absence of trade restrictions among trading countries. The perceived advantage of a steady decrease in tariffs worldwide was unfortunately progressively replaced by non-tariff measures (NTMs) globally. The impact of these NTMs is, however, not...
- Russia-Ukraine War and WTO’s National Security Exception
The Russian invasion of Ukraine is one of the most flagrant violations of international law in recent times. The Russian action has received global condemnation with various countries imposing sanctions on Russia. This article argues that concerning imposing trade sanctions against Russia,...
- Book Review: Delphine Marie-Vivien, The Protection of Geographical Indications in India: A New Perspective on the French and European Experience