Search Results (82)

The present study investigates Vietnam’s economic structural transformation from 2007 to 2023, identifying key sectors contributing to output growth and poverty reduction. The study is situated within the broader context of industrialization and sustainable development in emerging economies. It employs structural decomposition analysis using Vietnam’s national input–output tables for the years 2007, 2011, 2015, 2019, and 2023. The analysis decomposes changes in total output into technical effects and final demand effects, allowing for an evaluation of the relative contributions of sectoral productivity and demand side factors. The findings of the study indicate that the manufacturing and services sectors have been the primary drivers of economic growth, with the electrical and optical equipment, food, beverages and tobacco, and basic metals sectors demonstrating particularly strong performance. The factor of final demand, which is derived from consumption, investment, and exports, has played a dominant role in driving output. Notably, export-led manufacturing has experienced significant benefits due to Vietnam’s engagement in free trade agreements. It is noteworthy that the agriculture sector demonstrated a period of recovery between 2019 and 2023, driven by an increase in final demand. This study underscores the pivotal function of sectoral adaptability, trade openness, and strategic policy in maintaining inclusive economic development. It is evident that the phenomenon under scrutiny is not only indicative of vulnerabilities and opportunities but also shaped by global shocks, for example, the coronavirus pandemic. Full article

The Free Trade Area (FTA) strategy and the participation of enterprises in global value chains (GVCs) are important aspects of China’s high-quality economic development stage. This study matches trade data from the China Customs Import and Export database with information from listed firms in the CSMAR database, calculating the firms’ GVC embeddedness and the depth of trade agreements at the firm level. On this basis, this research employs a gravity model with fixed effects to empirically analyze the impact and mechanism of the FTA strategy on the embedding of Chinese listed firms in GVCs, utilizing data from 2000 to 2006. The results demonstrate that the FTA strategy substantially enhances the embeddedness of Chinese listed enterprises in GVCs. The heterogeneity analysis indicates that state-owned enterprises, those located in the central and western regions, manufacturing firms, and high-tech industry enterprises derive greater advantages from the FTA strategy in terms of their embeddedness in GVCs. Moreover, the mechanism analysis indicates that the FTA strategy enhances the embeddedness of enterprises in GVCs by increasing their technological innovation levels. Additionally, the internal control costs of enterprises negatively moderate the impact of the FTA strategy on their embedding in GVCs, and a “substitution effect” exists between asset operating efficiency and the FTA strategy in promoting the GVC embedding of listed firms. These findings provide empirical evidence and policy recommendations for the Chinese government to enhance the FTA strategy and sustainably improve the embeddedness of Chinese listed enterprises in GVCs. Full article

The article aims to analyze the contemporary forms of territorial dispossession that stem from the energy transition, especially those related to free trade corridors and green grabbing in the context of Latin America. To do this, we describe the reconfigurations of contemporary capitalism for territorializing capital in the geopolitical context of Latin America. At the same time, we argue how the territories of Latin America became strategically relevant for the expanded reproduction of capital in contemporary times. We also shed light on the centrality of free trade agreements and the corridors of extractivist dispossession as a turning point in the expansion—relating to the spectrum of hegemonic and imperialist domination of capital—of legal state frameworks for regulating and justifying full access to the neo-extractivist exploitation of Global South territories. Finally, we show that the “energy transition” supports green grabbing—that is, a new model not just of land grabbing, but rather of comprehensive territorial grabbing, since it means the expropriation of subterranean, maritime, wind, solar, and land territory. Full article

Air cargo plays a pivotal role in the global economy by facilitating international trade. Air cargo companies must meticulously plan and price their limited capacity efficiently to gain a competitive advantage and enhance their profitability. To mitigate the risk of empty aircraft, companies can sell capacity through prior agreements or offer capacity for free sales to generate additional revenue. The intricate nature of the air cargo industry, coupled with the numerous variables that influence pricing within this sector, renders the dynamic determination of prices a complex and arduous undertaking. This study aims to dynamically determine the price for the free sales capacity. The proposed model addresses three critical issues in air cargo revenue management: capacity allocation, demand forecasting, and dynamic pricing. An integrated structure has been developed in which these three distinct issues are interconnected. In this study, CVaR and ANN models are used for capacity allocation, regression, and time series, and ANN models are used for demand forecasting, while the SARSA algorithm, one of the reinforcement learning algorithms, is used for dynamic pricing. The model is implemented using data from a prominent air cargo company, and the results are interpreted, and recommendations are made for future research. Full article

Predicting the evolution of financial data, if at all possible, would be very beneficial in revealing the ways in which different aspects of a global environment can impact local economies. We employ an iterative stochastic differential equation that accurately forecasts an economic time series’s next value by analysing its past. The input financial data are assumed to be consistent with an $\alpha$-stable Lévy motion. The computation of the scaling exponent and the value of $\alpha$, which characterises the type of the $\alpha$-stable Lévy motion, are crucial for the iterative scheme. These two indices can be determined at each iteration from the form of the structure function, for the computation of which we use the method of generalised moments. Their values are used for the creation of the corresponding $\alpha$-stable Lévy noise, which acts as a seed for the stochastic component. Furthermore, the drift and diffusion terms are calculated at each iteration. The proposed model is general, allowing the kind of stochastic process to vary from one iterative step to another, and its applicability is not restricted to financial data. As a case study, we consider Greece’s stock market general index over a period of five years, from September 2019 to September 2024, after the completion of bailout programmes. Greece’s economy changed from a restricted to a free market over the chosen era, and its stock market trading increments are likely to be describable by an $\alpha$-stable L’evy motion. We find that $\alpha =2$ and the scaling exponent H varies over time for every iterative step we perform. The forecasting points follow the same trend, are in good agreement with the actual data, and for most of the forecasts, the percentage error is less than 2%. Full article

The European Union has implemented various trade policies in the textile and clothing sector, a major global employment generator, over the past three decades. This paper investigates how these evolving policies have impacted the four largest exporters of textiles and clothing to the EU. A notable trend emerges: India’s share of the EU market has declined and China has stagnated, while Bangladesh and Vietnam have seen significant gains. Using an Augmented Gravity Model, the study examines whether this shift is a result of broader global market dynamics or specific consequences of the EU’s tariffs, non-tariff measures, and its preferential trade agreement—the Everything But Arms initiative—with Bangladesh. Drawing on New Trade Theory, the research explores the interplay between these policies and their differential impact on developed (China), developing (India and Vietnam), and least-developed (Bangladesh) countries. It highlights the strategic role of NTMs and questions whether the EU’s focus on supporting least-developed countries might unintentionally undermine trade fairness for other nations within the global textile and clothing market. The paper contributes to the ongoing policy debate on strengthening the India–EU trade relationship, particularly in the context of current discussions around the India–EU Free Trade Agreement. Full article

This research aims to inspect the application of Artificial Intelligence (AI) in product and service innovation from the perspective of the Hainan Free Trade Port (HFTP) and its relationship with corporate transformation, legal compliance, and regulatory oversight. Being critical to the fourth industrial revolution, digital business and international cooperation, technology propels enterprises across various industries to transition from traditional models to intelligent and service-oriented ones. It also elucidates the theoretical foundations of AI products, the digital economy, and service innovation. It can be used to analyzes the challenges enterprises face in the HFTP while implementing AI technology, including funding, technology, management, operations, corporate culture, and innovative concepts. Based on the proposed research methodology, three hypotheses can be formulated. Hypothesis 1 states that the HFTP could facilitate enterprise transformation by applying supportive policies. Hypothesis 2 state that domestic laws and international agreements are urgently needed due to the legal risks arising from artificial intelligence. Hypothesis 3 state that HFTP enterprises comply with these laws while systemically assuring, in theory, and practice, the legal risks of artificial intelligence and its implications for legal regulation, which is a significant aspect of research, addressing legal risks related to data privacy, security, and algorithmic bias with many strategies being proposed. This shows how AI technology can change businesses in the HFTP, demonstrating the application of AI technology in the transformation of enterprises in the HFTP and the various risks they may encounter, providing valuable references for other enterprises regarding the practical significance of AI product and service innovation in the HFTP, and emphasizing the importance of international cooperation and legal instruction. Full article

This research explores the interplay between innovation, economic systems, governance structures, and law, and how they interact with one another in the context of China and Ethiopia’s investments in the Digital Silk Road. The way cutting-edge methods related to governance and economic systems might help lower the risks involved in major infrastructure projects, like the Digital Silk Road, particularly in light of law and 5G developments, is investigated. China–Africa connections are to be strengthened, sustainable development is to be encouraged, and healthy economic progress is the goal of the partnership between Ethiopia and the Hainan Free Trade Port. The impact of these transnational investments on fair growth and sustainable development is assessed, while exploring the evolving agendas and procedures governing investments. This research draws attention to how the law and legal cooperation between Ethiopia and China may promote mutually advantageous outcomes, promote transparency and governance mechanisms, and lessen the likelihood of disputes. This research on the factors influencing the future of the Digital Silk Road and its consequences for long-term, sustainable economic growth, and business in the area, aims to provide valuable insights for policymakers, development professionals, and academics, and for the copromotion of China and Ethiopia in terms of digital investment. This research relates to the promotion of the African Continental Free Trade Area (AfCFTA), in terms of construction and economic development. It also examines how the DSR raises concerns about data security and privacy, cross-border transactions, technology transfer, and cyberterrorism, as well as encourages digital investment, such as through enhancing digital governance regulations, modernizing international investment agreements (IIAs), and bolstering global health, coordination, and cooperation; the article concludes by analyzing the implications for Africa. The findings show that such cooperation would support Africa’s digital transformation and sustainable development, while strengthening China–Africa cooperation. Full article

In recent years, trade protectionism and unilateralism have prevailed, and countries around the world have imposed restrictions on log exports. It has also become more difficult for China to import wood resources and export deep-processed wood forest products. Based on panel data from 2000 to 2019, this study uses social network analysis to measure the level of the Chinese wood forest product trade network, takes the Chinese free trade agreements (FTAs) as the natural experiment, and uses the multi-stage double-difference method to investigate the impact of the signed FTAs on China’s wood forest product trade. The study finds that the trade network of Chinese wood forest products is becoming increasingly complex, and the central position of China and the Association of Southeast Asian Nations (ASEAN) in the network is increasing year by year. The signing of FTAs has had a significant positive impact on the trade of wood forest products in China and a significant trade creation effect. This finding remains true after conducting the placebo test and propensity score-matched regression control. At the same time, the import of wood forest products in China will have a significant trade transfer effect due to the signing of FTAs, and this will not affect exports. Although FTAs show significant trade creation and trade transfer effects in China’s wood forest product trade, they also increase, to a certain extent, the mismatch of forest resources worldwide. Full article

The purpose of this study is to evaluate the economic interventions that took place during the initial stages of the pandemic in 2020 in the US, Mexico, and Canada. These countries share a free trade agreement that indicates their willingness to cooperate in economic terms with each other and that they should adopt similar economic policies due to both their shared agreements and proximity. However, the economic interventions adopted by two of the three countries were not considered by the other, which makes for an interesting comparison. Interrupted time series analysis is a quasi-quantitative method that has recently been used in evaluating policy during a specific time. This study is interested in focusing on the economic interventions that were put into practice in neighboring countries that have formed a free trade alliance named USMCA. The method of a systematic analysis of interrupted time series will be used as a basis for organizing the article to provide further validity to the study. Full article

The European Union (EU) and the Southern Common Market (Mercosur) free trade agreement (FTA) aims to increase regional trade and major integration between the regions; after decades of negotiations, in 2019, finalization of the agreement was reached. However, there are several blockages from both parties in the ratification process: whilst few EU members the criticize environmental and sustainability issues within the agreement, the Mercosur partners oppose the imposition of sustainability standards onto the region without adequate financial support. On this topic, the literature is still too poor to build a systematic literature review; thus, the present analysis follows a quasi-historical approach considering the major steps of the EU–Mercosur FTA looking both at the scientific and gray literature. The study underlines how environmental and sustainability issues are at the core of the European policies; thus, themes such as deforestation and pesticides could be a dealbreaker in the ratification of the agreement. For the EU, the FTA with Mercosur could mark a new step in the race towards it being a new “global standard” for sustainability and production. Full article

This paper underlines the significance of free trade agreements in attracting foreign direct investment and their impact on the operational capacities of local firms in host countries. It argues that free trade agreements do not only eliminate barriers to trade, but they also increase the size of the regional market and improve the business environment, making it more attractive to foreign direct investment, along with all the attributes and spillover effects associated with it. While determining the type of spillover effects of foreign direct investment associated with Oman’s trade agreements, this paper uses the Kruskal–Wallis H-test and 438 samples from companies surveyed between 1 August and 31 October 2023 to assess the impact of spillovers on the performance of the surveyed companies. The results reveal that technology transfer, knowledge transfer, labour productivity, product efficiency, capital investments, and job creation have positive effects on the firms’ operational capacities, with technology transfer having the highest impact (27%), followed by labour productivity and job creation (18%). The spillover effects are almost the same for company size and percentage of ownership. They also identified manufacturing and tourism as priority sectors and the availability of a skilled workforce as a major challenge. These findings make original contribution to the field as this is probably the first study to produce a firm-level analysis of spillover effects of foreign direct investment and trade agreements in the context of Oman and the wider Gulf region. The paper concludes with practical implications for policy makers when negotiating trade agreements and designing investment policies to optimize spillover effects on the performance of their domestic firms. Full article

The Mexican food system has suffered deep transformations due to multiple technological advances and political and free trade agreements, transiting from a food system for self-consumption to a system based on exports and imports that has resulted in excessive agricultural activity intensification, leading to environmental deterioration. Our species’ survival will depend on our capacity to manage systems, considering all ecosystems, especially the climate and food systems. International organizations insist that sustainable food systems could be a useful strategy to address malnutrition and hunger while respecting the environment. However, the food system in Mexico needs to be connected to the environmental, social, health, and food security dimensions. Sustainability in Mexico synthesizes the contradictions of agriculture and the Mexican diet, not only in its economic and productive dimensions but also in the social and environmental ones. Public policies in all sectors of the country must be interconnected and organized to guarantee the sustainability of a system that benefits the environment and population health while respecting the related economic and social elements. This review aims to offer a comprehensive understanding of the Mexican food system’s history and current situation and analyze proposals for its sustainability. Full article

The primary objective of this study is to examine the extent of financial integration between Latin American and US financial markets, particularly in light of recent efforts to foster integration through trade agreements. Spanning from 1 January 1990 to 31 December 2019, the sample focuses on major market indices and key sectors. Financial integration is quantified using a DCC multivariate GARCH model, incorporating a smooth transition model, structural breaks, and regression-based approaches. Results indicate increased comovement with the US for main market indices in Argentina, Chile, Colombia, Mexico, and Peru, while Brazil shows a decrease. Similar trends are observed in sectoral analyses. This study also reveals heightened correlation post-trade agreements. Structural break analysis highlights significant shifts in dynamic correlations for countries with US free trade agreements. These findings support the argument of increased financial integration, bearing significance for portfolio diversification and international policy formulation. Full article

Economic integration, which in today’s global trade is the fundamental component of linking economic ties between countries, is another important factor in the acceleration of economic growth. The provision of trade logistics services is essential to a nation’s economic success in international trade activities. It is essential for enterprises engaged in active international trade to achieve competitive advantages. The international trade and localised commercial activity, to a large extent, is dependent on the logistics and supply chain infrastructure and operational capacity. However, the area received little attention from the perspective of applied economics. The in-depth empirical studies on the impacts of logistics on trade efficiency are few and limited. The study aims to investigate the role of logistics and supply chains in international and national trade in a developing country. It uses secondary data for the analysis. The model and software used in the study are the gravity model and GTAP10a. The time horizon used spans 2014–2030. The results show that in order to enhance trading and commercial activities, a developing country should develop logistics and supply chain infrastructure, train people, and design a flexible logistics policy. Full article