Search Results (30)

In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade growth. However, this extensive growth pattern has not only led to environmental pollution domestically but has also encountered hurdles from international green trade barriers. Finance, as a key driver of stable economic growth, plays a pivotal role in achieving high-quality trade development. Against this backdrop, the Chinese government has introduced the green credit interest subsidies policy. This policy aims to coordinate government financial resources and guide capital toward green production, alleviating financing constraints and fostering the upgrading of export product quality. Utilizing data from the World Bank, China Customs statistics, and provincial panels from 2011 to 2020, this study employs a multi-period difference-in-differences (DID) model to examine the causal impact of the green credit subsidies policy on efforts to upgrade the export quality of green products across China’s regions. The benchmark regression results indicate that the green credit interest subsidies policy has significantly improved the export quality of green products across China’s manufacturing industries. Heterogeneity analysis shows that this policy has had a more pronounced positive impact on green product quality in industries with quality-based competition strategies, in regions with well-coordinated local finance and financial policies, as well as in countries that have concluded environmental clauses with China. Mechanism analysis reveals that, on the export side, the policy enhances green product quality by easing financing constraints, increasing green credit, boosting productivity, and upgrading industrial structures. On the import side, the policy promotes green product quality by expanding the scale, variety, and quality of green intermediate goods. This research offers valuable insights for developing countries aiming to establish export-oriented green transformation and upgrading strategies. Full article

Climate change, especially extreme weather events, has significantly heightened the vulnerability of fisheries production supply chains. This study firstly investigates the input-driven climate risks through intermediate goods trade and their indirect impacts on China’s fisheries sector and constructs the Climate Risk-Trade-Production Model (CRTPM). Key findings include: (1) The input-driven climate risk indicator for China’s fisheries sector has increased over the period 1995–2020, with Brazil, Canada, the United States, Japan, South Korea, and Russia as major contributors. (2) From 1995 to 2020, rising climate risk index in Brazil and Canada negatively affected China’s fisheries output, with a 1% increase in climate risk index resulting in production declines of 0.173% and 0.367%, respectively. (3) In contrast, a reduction in the climate risk index in the United States and Japan lowered intermediate goods prices, boosting China’s output by 0.934% and 0.172%, respectively, for every 1% decrease in the climate risk index. (4) Climate risk index in South Korea and Russia, while initially increasing, eventually stabilized, having minimal impact on China’s fisheries production. It is the importance of monitoring extreme weather events to mitigate the economic vulnerabilities of China’s fisheries. Full article

Maritime transport carries over 80% of global trade by volume and remains the most energy-efficient mode for long-distance goods movement. However, the sector contributes approximately 3% of global Greenhouse Gas (GHG) emissions, a share that could rise to 17% by 2050 without effective regulation. In response, the International Maritime Organization (IMO) has introduced initial and short-term measures to enhance energy efficiency and reduce emissions. In 2023, IMO Strategy expanded on these efforts with medium-term measures, including Market-Based Mechanisms (MBMs) such as a GHG levy, a feebate system, and fuel intensity regulations combined with carbon pricing. This study evaluates the economic and environmental impacts of these measures using an integrated computational simulation model that combines Ocean Engineering and Economics. Our results indicate that all proposed measures support the IMO’s intermediate emission reduction targets through 2035, cutting absolute emissions by more than 50%. However, economic impacts vary significantly across regions, with most of Africa, Asia, and South America experiencing the greatest adverse effects on GDP and trade. Among the measures, the GHG levy exerts the strongest pressure on economic activity and food prices, while a revised fuel intensity mechanism imposes lower costs, particularly in the short term. Revenue redistribution mitigates GDP losses but does so unevenly across regions. By leveraging a general equilibrium model (GTAP) to capture indirect effects often overlooked in prior studies, this analysis provides a comprehensive comparison of policy impacts. The findings underscore the need for equitable and pragmatic decarbonization strategies in the maritime sector, contributing to ongoing IMO policy discussions. Full article

While the core objective of the Paris Agreement is to limit the increase in global average temperature (GAT) to 2 °C in the 21st century and to work towards limiting it to 1.5 °C, globalization and the configuration of production processes around global value chains (GVCs) have emerged as key factors explaining the recent evolution of environmental and economic indicators. In this context, this paper takes trade-implied carbon emissions as the entry point of the problem, uses MRIO to calculate the production-side and consumption-side carbon emissions, measures the forward and backward production lengths of GVCs according to the WWYZ method, and then constructs an econometric regression model to empirically analyze the environmental effects of GVC embeddedness. The results of the study show that, firstly, the forward and backward production length of GVCs is positively correlated with the production-side and consumption-side carbon emissions. Forward production length has a greater impact on carbon emissions on the production side, and backward production length has a greater impact on carbon emissions on the consumption side. Secondly, compared with developed countries, the length of forward and backward production has a more pronounced positive impact on carbon emissions in developing countries. Thirdly, as the global production chain continues to extend, the scale effect, structural effect, technological effect, and environmental regulation effect will all contribute to carbon emissions. Accordingly, countries or regions should continuously optimize production layout and processes to reduce the length of the production chain, realize lean manufacturing through automation and intelligence, and then move up the global value chain to play a role in carbon emission reduction through structural upgrading, technological progress, and environmental regulation. Full article

From a value-added trade perspective, this study utilizes the world input–output tables and the water footprint data of each industry in each country in the Eora database to explore the virtual water resources of 19 countries (the G20 countries excluding the European Union) in 2016. We calculated nine value chain decompositions and the pattern of virtual water flows and then explored the implied virtual water use due to the trade of intermediate goods and final goods, and we also analyzed the unequal trade of virtual water and added value among countries. The results indicate the following. Firstly, in most countries, the largest portion of virtual water is attributed to exports of intermediate inputs that are produced in the source country and fully utilized by the direct import countries, followed by the foreign value-added component of intermediate goods, while the smallest share of virtual water is returned to the country. Secondly, in value-added trade, excluding the rest of the world (ROW), China, France, Italy, Japan, Mexico, South Korea, South Africa, Saudi Arabia, and Germany are net importers in the virtual water trade between G20 countries, and the USA is the largest net exporter of virtual water. Thirdly, intermediate product trade is the dominant form of implied virtual water trade among countries, which leads to a net flow ratio of implied virtual water of about 80% to 90%. Lastly, the Virtual Water Inequality Index shows that thirteen country combinations, including Brazil and Argentina, exhibit significant inequality, and most countries are in a relatively equal state. In addition, the virtual water and added value of the relatively economically developed regions benefit more from the virtual water trade. Therefore, it is crucial for countries to reduce their consumption of virtual water when trading intermediate products to develop high-value-added and low-water-consumption industries and to choose appropriate virtual water trade targets. Full article

An ambitious per capita GDP target has been envisioned by the Chinese government since 2020 to project its sustainable economic growth rate by 2035. Can China fully achieve its goal? This is a question worth investigating. By inserting relevant TABLO modules of the final goods trade, the intermediate goods trade, and factor-strengthening technology spillovers, along with technology absorption thresholds effects of the global value chain, this study builds a global recursive dynamic computational general equilibrium (CGE) model on the basis of GTAP-RD. This approach enables us to consider total factor productivity (TFP) development through the “dual circulation” system, which was pointed out by the Chinese government as the only way for further growth. We simulate China’s technological progress under eight scenarios and use the latest GTAP Version 11 production and trade data (released in April 2023) for 141 countries and regions. The main conclusions are as follows: (1) If China maintains its trade opening policy, the 2035 vision goal can be achieved, with external circulation being more important than internal circulation. (2) The economic growth impacts of external and internal circulation function relatively independently. FDI offers a somewhat stronger synergistic effect on intermediate goods trade compared to final goods trade and consumption. (3) We find that the Regional Comprehensive Economic Partnership is the most important strategic partner for China. (4) FDI is not an effective way to lift the productive services sector’s TFP, and it is more realistic for China to open up the productive services market more widely. (5) China–US decoupling has an enormous global impact, and the United States is always the country that loses the most, with Europe being the group of countries that benefits when there is a large increase in TFP in the US. This study is entirely original in terms of its model structure, simulations, scenarios, and shocks. It aims to fill the gap of extending the application of the CGE model to specific issues, thereby making contributions and supplements to the three theories discussed in the article too. The limitation of this paper lies in the CGE linear description feature, which is concise and elegant and has the characteristics of extrapolation and long-term absorption of disturbances. However, it tends to overlook the randomness, non-convergence, and significant structural disturbances that may occur in future reality. Full article

Trade liberalization has enabled China to become a global manufacturing hub. However, an increasing focus on pollutant emissions has accompanied China’s rapid economic growth. This paper uses the Annual Survey of Industrial Firms and the Annual Energy Survey of Industrial Firms from 1998 to 2007 to identify the effects of trade liberalization in final goods and intermediate goods on pollutant emissions of Chinese manufacturing enterprises. The difference-in-difference method is used to analyze the data, with China’s accession to the World Trade Organization serving as an exogenous policy shock that brought trade liberalization. The paper’s findings indicate the following: (1) Trade liberalization has reduced the tariffs on final goods, which has led to a notable reduction in the intensity of pollutant emissions from Chinese manufacturing firms. (2) Trade liberalization in intermediate goods, meanwhile, has led to a significant increase in the pollutant emission intensity of manufacturing firms. However, the emission reduction effect observed in final goods is more pronounced. (3) The difference-in-difference-in-difference method was used to examine the heterogeneity of the pollutant emission effect of trade liberalization across manufacturing firms. Our analysis revealed that trade liberalization has significantly enhanced the pollutant emission intensity of state-owned enterprises while exhibiting no significant effect on foreign invested enterprises. Furthermore, trade liberalization has intensified pollutant emissions among exporting firms. Full article

(1) Background: The definition of value addition is based on the process or processes which are used to transform, physically, the initial raw material into the final food or non-food article. Diversification can enhance the possibility of increased gains. The aim of this work is to give a reliable description of value addition when speaking of coconut-based beverages among all possible derivatives. (2) Methods: A systematic review in which the main papers on the argument have been critically examined and discussed. (3) Results: Processing degree is a consequence of consumers’ requests. Three different drivers for value addition have been considered: packaging, durability, and size options; sensorial features; and sustainability. The results of this investigation have highlighted the added value of several products because of recyclable packaging materials, intermediate- or long-durability expectations, different available sizes, and good or excellent sensorial performances. (4) Conclusions: There are different value-added coconut-based beverages with interesting perspectives. On the other hand, sustainability and eco-friendly policies may be a problem for those products that are produced similarly to non-coconut-based beverages. The opportunity presented by certified organic and/or fair-trade products could help the coconuts industry in the near future. More research is still needed on this topic. Full article

This paper explores the impact of COVID-19-induced disruptions on supply chains, specifically focusing on the interconnectedness of supply chains and the transmission effects they cause. The gravity model framework, together with difference-in-differences analysis, is employed to analyze monthly trade patterns among Central and Eastern European (CEE) countries, Western European countries, and other trading partner countries. The model presented accounts for the country’s roles in global value chains (GVCs) by incorporating data related to exports, imports of intermediate and capital goods, and imports of final consumption goods. CEE countries have demonstrated a certain resilience during the COVID-19 pandemic. Yet, they were not immune to adverse consequences due to disrupted supply chains, primarily in the imports of intermediate and capital goods. We find that the countries that suffered from the COVID-19 pandemic the least demonstrated remarkable resilience against disrupted GVCs. The findings of our study enrich the literature on the effects of the COVID-19 pandemic, specifically for the CEE region, by providing a framework for understanding the pandemic’s impact on international trade. The results show that supply shock might be greater than demand shocks on production and trade dynamics. Furthermore, our results suggest that policymakers seek adaptability to changing supply and demand patterns, while enterprises should consider broader diversification both within the region and locally. Full article

This paper identifies the importance of reducing fixed costs for establishing industrial zones as part of an agglomeration policy. China’s economic growth has been driven by the agglomeration of manufacturing firms via industrial zones that attract foreign direct investment. This investment enables the export of products by importing intermediate capital goods. According to the new trade theory of spatial economics, the number of firms in an agglomeration is inversely proportional to the fixed costs. The main accelerator of agglomeration after the master switch is the formation of segments that reduce firms’ fixed costs. Via a factor analysis of manufacturing agglomeration segments in sequencing economics, this paper finds that “leased” industrial zones are accelerator segments in the formation process of manufacturing agglomerations. Full article

In contrast to the past, the trade behavior of countries has become increasingly intricate, encompassing domestic trade rooted in local markets, traditional trade centered on final exports, and value chain trade reliant on intermediate goods. To tailor their strategies to their unique circumstances, nations judiciously allocate their economic focal points across these three trade modalities, engendering distinct national development models. By discerning the varying emphases placed by countries on these three trade modes, this paper employs clustering techniques to extract and analyze divergent national development models. Additionally, this paper assesses countries’ performance in various trade activities and introduces a new indicator, Total Trade Ability ($TTA$), to examine the impact of these models on the economy. With our approach, one can easily distinguish how different countries develop their economies. Our findings indicate a strong correlation between economic growth and $TTA$. In general, countries with higher $TTA$ tend to exhibit higher economic growth. Full article

Low productivity and quality of employment have always been a big problem in Indonesia, caused by the lack and mismatch of skills in the workforce. Labor productivity (LP) describes the company’s ability to produce something. This can be determined by added value or output. Several factors influence LP, such as education, age, and training. The concept of global value chains (GVCs) has become an integral part of economic activity, and trade within global production networks has grown more rapidly than conventional trade in final goods. GVCs have both positive and negative impacts on employment opportunities. The automotive industry is categorised as one of the ten primary priority industries in the Indonesian manufacturing sector. This research analyses the impact of LP on GVC integration in the Indonesian automotive industry. The data used in this research comes from the World Input–Output Database (WIOD) and the Central Statistics Agency (BPS) from 1995 to 2014. The variables used include the number of workers, added value, real wages, and GVC, which were calculated by the author using the Inter-Country Input–Output (ICIO) approach. Using ICIO analysis, the following matrix should be constructed to determine involvement in GVCs. This research shows that LP in the Indonesian automotive industry has a positive trend, and the GVC position in the Indonesian automotive industry has a positive trend line. The domestic value chain increased from 4% to 33%. This improves the ability to produce higher value-added and intermediate export goods. LP increases the domestic value chain in the Indonesian automotive industry, leading to global value chain integration. Thus, LP goes hand in hand with integrating GVCs. Full article

Russia and the EU represent two economic blocs with high-value bilateral trade, especially in several specific sectors. The Russia–Ukraine war has facilitated the escalation of protectionism against Russia, and the EU and Western partners have introduced a set of sanctions on the import of goods from Russia, but also on EU exports to Russia. This analysis aims to research in detail the characteristics of the global value chains (GVCs) of the EU and Russia, focusing on their interconnections. Russia is a resource-rich country whose exports are mainly based on resources and resource-related products. Therefore, forward participation in global value chains dominates, being 4.5 times higher than backward participation. In the EU and its member states, backward participation dominates, implying a high level of dependence of the production process in the EU on import of intermediates (i.e., production inputs) from abroad. The analysis indicates a high share of value added from Russia in the sector “mining and quarrying, energy producing products” in the EU final demand where almost one-fifth of foreign value added pertains to products from Russia. On the other hand, the sectors of electrical equipment, pharmaceuticals, chemical products and construction in Russia rely on value added imported from the EU. Full article

Globalization has led to a rapid increase in the international trade of intermediate goods, which plays a vital role in economic growth. This study investigates whether trade openness facilitates output growth by improving access to intermediate inputs. In particular, it has been examined whether industrial sectors with higher intermediate input diversity grow relatively faster in countries that are more open to trade. Through the adoption of the difference-in-differences approach, we find strong evidence that this is indeed the case based on a large cross-country sample. The empirical estimation indicates that industries more diversified in intermediate inputs will grow by 2.6 percentage points faster in more outward-oriented countries. Furthermore, our results are robust to various specification checks and are unlikely to be driven by omitted variables, outliers, or reverse causality. By identifying the mechanism through which trade openness facilitates output growth, our study highlights the additional gains from trade liberalization that may be undermined by increased protectionism, especially for industrial sectors that rely on diversified intermediate inputs. Full article

Symsagittifera roscoffensis is an intertidal Acoel flatworm that forms a symbiotic relationship with the alga Tetraselmis convolutae. Members of the genus Tetraselmis are known to have a high nutritional value and have been widely used to enrich intermediate prey for fish within the aquaculture industry; therefore, S. roscoffensis could be a good candidate as a trophic shortcut to deliver algal nutrition to fish. In this study, we investigated the likelihood of five ornamental tropical freshwater and six ornamental marine fishes to consume this worm, either as live feed or in freeze-dried form. We also tested the ability of S. roscoffensis to form a symbiotic relationship with alternative algal species, analysing the nutritional profile of S. roscoffensis when grown in different media. All the experimental fish consumed live worms to some degree, with the exception of one species (Meiacanthus grammistes); the response time to the worms ranged from 1.1–68.6 s for freshwater ornamental species to 1–24 s for marine ornamental species, and in most cases, this was comparable to or shorter than their response time to the reference diet Artemia. The fishes showed no negative effects after consuming the worms. We obtained similar results with freeze-dried worms in terms of the number of worms eaten, response time, and feeding time. Symsagittifera roscoffensis was able to form a symbiotic relationship with all the tested algal species of the genus Tetraselmis, but not with members of other genera. Worms grown in nutrient media (f/2 and f/4) had significantly higher contents of protein, pigments, and total and polyunsaturated fatty acids, including eicosapentaenoic acid (20:5n − 3) and α-linolenic acid (18:3n − 3), than those grown in seawater. These results show that S. roscoffensis was acceptable to many ornamental fish species, delivering key algal ingredients that are beneficial to fish health; hence, it is a promising alternative to conventional fish feeds for the ornamental pet trade. Full article