Search

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.

The study analyses the role of RTAs in determining the export efficiency of India using a stochastic frontier version of the gravity model. We estimate the impact of select RTAs (bilateral, SAFTA, APTA, ASEAN, and MERCOSUR trade bloc) and the partner nation’s regulatory quality on India’s export efficiency throughout 2008–2018. The findings suggest that India has been substantially able to exploit exports efficiency to its trading partners under FTAs (ASEAN&SAFTA) and bilateral agreements compared to PTAs (MERCOSER&APTA); however, India’s exports are yet quite far from the potential frontier. Excluding APTA, all other agreements are statistically significant, implying that joining trade agreements augments India’s export efficiency. The study finds that the regulatory quality of importing nations bears a significant positive impact on India’s export efficiency. This highlights the importance of good institutions and better regulatory quality in realizing the potential level of exports with partner nations.

Domestic regional synergistic emission reduction is important in achieving national climate goals. This study constructed a game theory-based model for regional synergistic emission reduction, modified the Basic Climate Game using the exact-hat algebra method, and expanded the game model using a general spatial equilibrium model to incorporate cross-regional economic impacts generated by emission reduction actions through factors and product flows. The formation of regional comparative advantages in emission reductions and their impact on synergistic emission reductions were revealed through regional characteristics such as emission elasticity, sectoral structure, regional trade shares, and green total factor productivity. A form of synergy was then proposed that utilizes the comparative advantages of different regions, allowing for synergistic emission reductions across different income regions and engagement with regions that are still at the carbon-peaking stage in cooperation. Moreover, the model was created to be as close to the economic reality as possible to provide a trade, industry, and economic growth policy that complements emission-reduction policies.

This paper examines Croatian Regional Value Chains (RVCs). We use the value chain approach to study supply chains, examining data specifically for Croatia and its proximate trading partners in the European Union, as well as some other European countries. The value added in Croatian exports is statistically related to the value added in the exports of Croatian trading partners. We argue that Croatian RVCs are organized around regional production centers, with proximity to production capacity, raw materials, and customers as driving factors, and thus most of the value added originates in these RVCs. This paper emphasizes the advantages of representing trade through value added over traditional gross trade statistics and highlights the robustness of RVCs in Croatia to global shocks and transportation reliability issues. We conclude that despite its small absolute size, the Croatian economy is dynamically well-integrated into the EU RVCs, which is crucial for increasing business efficiency and competitiveness, notwithstanding the constraints of relatively low returns to scale. Overall, this study contributes to a better understanding of RVCs in Croatia and their potential benefits for Croatia in the global production organization.

Regional trade leads to carbon transfer, which in turn raises the issue of carbon inequality. However, less existing research has focused on carbon inequality within megaregions. Combining multi-regional input-output analysis, carbon Gini coefficients and carbon deviation coefficients, this paper presents a comprehensive analysis of carbon equity in inter-provincial trade in the Yangtze River Economic Belt (YEB) from the perspective of economic benefits and environmental pressure. The results show that: (1) Carbon emissions from the production and consumption sides of the 11 provinces in the YEB vary considerably. (2) Significant carbon inequality exists in the YEB region. This is manifested in the unequal relationship between the transfer of embodied carbon emissions and economic benefits, as well as the difference in carbon deviation coefficients. Based on the results of our research, this paper can help provide theoretical support and decision-making reference for implementing a differentiated carbon emission reduction responsibility mechanism and establishing a coordinated carbon emission reduction responsibility system.

In the South Asian countries, including Bangladesh, India, and Pakistan, the current energy scenario is considered non-sustainable due to diverse issues such as economic, environmental, geopolitical, technological options for energy exploitation, and negligible volume of regional energy trade. Though, within the region, India is leading a phase of energy transition and economic transformation through renewable energy development. The countries need to exhibit well in the development of their renewable sources following the rapid pace of renewable energies worldwide. This article offers an overview of the energy scenario, growth of renewable energies, evolution, and approach for energy policy by highlighting key challenges and barriers for the ecological energy mix of the countries. Importantly, the paper assesses the current energy mix in South Asia, highlighting the anomaly of its fossil fuel-based future outlook, its ambitions to move towards less environmental pollution, and sustainable energy mix through a strategic tool SWOT analysis; strengths, weaknesses, opportunities, and threats (SWOT). In particular, this study examines the government policies to expand the implementation of renewable sources with an insight into the existing regulatory structure of the energy sector. The presented research findings suggest that to achieve the ambitious target to reduce emission discharge by up to 30% by the year 2030 under Intended Nationally Determined Contributions (INDCs), the Governments of the three countries must take preemptive measures. It includes the stage-wise reduction of subsidies on fossil fuels, market integration within the region, and swift realization of the existing initiatives through strong political will, good governance, adoption of the latest technologies, and a pragmatic action plan, and energy cooperation across the region.

The article describes the potential free trade zones in Asia-Pacific: Trans-Pacific Partnership, Comprehensive Regional Economic Partnership, Free Trade Zone of Asia-Pacific. Literary sources used by the researchers allowed concluding that the efficiency of integration groups depends on participants’ composition and the level of their trade and economical development. The more heterogeneous trade union participants, the less effective its development. In this article economic proximity and trade interactions intensity are the main factors for choosing integration groups participants. The research goal is to assess the integration potential of mentioned free trade zones in Asia-Pacific. In order to achieve this goal the calculation of participating countries economic proximity and their trade interactions intensity is made by means of econometric and mathematical methods. As a result, Trans-Pacific Partnership which has already been cancelled because of Washington’s withdrawal turned out to be a free trade zone with the biggest integration potential. The results demonstrate the significant gap between the rest of the integration groups and the leader. It is likely to be explained either by incomplete level of integration cooperation for creating sufficient integration group providing positive trade and economical effects or by the absence of such forms of integration cooperation in Asia-Pacific, which let countries receive abovementioned effects. In addition the hypothetical zone of countries with the highest potential integration effects is identified within the premises considered in the article. It consists of 16 countries and demonstrates the highest level of economical proximity

A region can internationalise in various ways. The question is what type of internationalisation at regional level can be regarded as “smart” and what role should be played in it by foreign owned entities (FOEs)? The paper aims at identifying the role played by FOEs in NUTS-2 smart specialisations’ (SS’s) internationalisation through exports. With the use of a set of PCSE regressions, the paper depicts the role of FOEs in creating SS-compliant exports against the background of their influence on total regional exports. The obtained results proved the positive role of FOEs in regional exports per se and SS-compliant exports. Yet, FOEs differed substantially, as compared to indigenous entities, in terms of product/regional specialisation and technological advancement. The findings imply the importance of FOEs’ embeddedness in regions’ economies and possibility of their incorporation in creating or enhancing regional comparative advantages. The paper contributes by: (i) providing empirical verification of one of the aspects of SS strategy which is exports and establishing comprehensive insight into the evaluation of SS, (ii) depicting the role of FOEs in generating SS-compliant exports, (iii) proposing a set of measures to be used in the extended empirical evaluation of SS consequences in the sphere of exports.

Over the past decade, the Russian government has embarked on an ambitious program of economic development in the Russian Far East (RFE), envisioning the transformation of the region into a hub for trade with the Asia Pacific. This paper explores the extent of RFE’s trade integration with both key partners around the world and the rest of Russia. In particular, we calculate the region’s trade potential on the basis of mean predicted values from a gravity model using three samples that offer different perspectives. Actual trade flows are then evaluated relative to the potential and the resulting index is analyzed for various years and countries. Based on the findings of the paper, we can draw several conclusions. First, RFE exports to Northeast Asia have intensified over the period 2008–2017, allowing the region to surpass its potential, although there seems to be room to grow with respect to China. The Russian government could facilitate cross-border trade by further reducing non-tariff barriers and improving transnational infrastructure links. Second, the deepening integration with Northeast Asia has been achieved at the expense of trade links with the rest of Russia. This might appear worrisome, given the geostrategic importance of RFE for Russia. At the same time, it might simply reflect the fact that RFE’s natural resource exports are increasingly diverted to the Asia Pacific, which is more efficient than to ferry them to Western Russia, where they might end up being re-exported to Europe. Similarly, it might be more efficient for RFE to import from China than from more distant parts of Russia. Third, imports from Japan and Korea are far below potential, although these two countries can play a key role in promoting the economic development of RFE

Objective: The objective of this article is to evaluate the role of specialisation in the export success of counties (powiats) (LAU 1) in Poland between 2004 and 2015. Research Design & Methods: Using panel fixed-effects regressions with Driscoll and Kraay standard errors, the authors investigate the role of export specialisation and product concentration, as well as comparative advantages on the value of log exports per capita, controlling for other important export determinants. Findings: Estimations of the panel model bring the conclusion that specialisation in a positive way contributes to the value of exports per capita, assessed at county level. The robustness of the obtained results has been verified by the use of several concentration and specialisation measures, incl. HHI, Krugman specialisation index, weighted RCA and concentration ratio. Implications & Recommendations:Further research is recommended to capture the consequences of differentiation in the patterns of exports among counties in terms of agricultural vs. industrial goods as well as the low-tech vs. high-tech products. Similar research is recommended to be done at NUTS-2 level in order to inquire into the rationale of smart specialisation(s). Contribution & Value Added: The main contribution of the research is showing the lumpiness of Poland’s exports at county level in terms of product specialisation and concentration. The value added is depicting the positive role of specialisation for the exports success, understood as exports per capita.

Point data observations are often used to calibrate computable general equilibrium (CGE) models; however, results may be impacted by calibration of an Armington trade specification in a regional CGE (R-CGE) model. This paper calibrates an Armington trade specification with three differently estimated interregional trade data sets. It estimates interregional trade with one survey and two non-survey methods. The resulting three different trade data sets are each used to calibrate REMES, an R-CGE model for Norway. Two regional policy reforms are simulated with the three model versions to analyze the sensitivity of regional manufacturing sector output to trade data estimates. The results show that the trade data estimation method used for calibration significantly affects regional sector output results. Policy analysts and developers should be aware that calibrating an Armington trade specification with differently estimated interregional trade data may have a substantial influence on model results, and hence, on ex-ante and ex-post conclusions on policy impacts.

Import substitution is considered to be the most promising source of development of the Russian economy. However, the regional aspects of implementation remain at the periphery of research policy of import substitution. The aim of the work was to evaluate the capacity and efficiency of the instruments of regional industrial policy implementation in the context of import substitution through the example of the Novosibirsk region. This article presents the results of studies based on statistical analysis of the structure and dynamics of regional trade of the Novosibirsk region. It made an attempt to evaluate the possibility of the development of domestic production of analogues of imported products through the use of existing industrial capacities of the region. Based on the comparison of the results of analysis of foreign trade and regional industry opportunities the most perspective directions of development were identified. Review of Industrial Policy of the Novosibirsk region, based on the analysis of the current regulatory framework, revealed the inefficient and costly industry support tools currently in use. Based on these results possible solutions were suggested to correct the existing industrial policy and improve its efficiency.

Archeology points out that the city of Comalcalco developed mainly between 550 and 900 AD, during which the features that would identify its population were delineated. To learn about the social process that shaped this community, we analyze the objects the people made, used, exchanged and discarded, as well as the spaces they built. The review of its sources of raw materials, technology, mortuary customs, physical characteristics and conditions, allow us to investigate how the social relations and behavior patterns of its population were established and reinforced.

In some Latin American countries the exporting activity starts at a regional level, with producers only later venturing into more competitive markets. The implicit risk is that a country might never progress from the regional stage to a more global market. This article compares the experiences of Brazil, China and India. It is shown that Brazil relied on the regional market far more intensely than these Asian countries. There were clear gains accruing to China and India for having exploited more sophisticated markets from the very beginning of their export drive.

In some Latin American countries the exporting activity starts at a regional level, with producers only later venturing into more competitive markets. The implicit risk is that a country might never progress from the regional stage to a more global market. This article compares the experiences of Brazil, China and India. It is shown that Brazil relied on the regional market far more intensely than these Asian countries. There were clear gains accruing to China and India for having exploited more sophisticated markets from the very beginning of their export drive.

This study debates the roles of trade liberalization and regional economic cooperation for the sustainable economic growth of the Central Asian countries. An economic research paradigm was used to obtain a macro view from the perspectives of Kazakhstan and neighboring countries. In general, factors that enhance regional trade development and regional economic integration include improving business environment, increasing trade policy coordination, accelerating trade liberalization, and increasing economic cooperation. Selected policies and practical implications are identified, which facilitate enhancing free trade agreements and regional economic cooperation, coordinating WTO accession, and creating a systematic monitoring organization.

Grain is an important marketable commodity that is hampered by risk of interrelated dimensions, particularly in borderlands of West Africa. Assessing the extent of risk in borderlands can be valuable for policy-makers and likely to contribute to increased regional trade through effective management. Risk management along the grain supply chain was investigated. The methodology was qualitative using desk review of literature and field survey and interviews. While the survey revealed evidence of substantial volume of grain exchange, most of the traders indicated transportation, high taxes and low production of grain as the most important risk factors limiting trade. Production was found to be limited by low access to agricultural insurance, fertilizer, irrigation and credit. Although farmers had access to production information, market information was inadequate. While public grain reserve exists to manage price risk; the capacity was insignificant compared to the magnitude of grain trade in the region. The guaranteed minimum grain price was not collectively determined but by government and their contractors.

Since the North American Free Trade Agreement (NAFTA) came into force in 1994, U.S.-Mexico trade has soared. The regional structure of trade flows within Mexico however has been hardly documented. This paper offers an analysis of state-level U.S.-Mexico trade flows. We find that the regional structure of bi-national trade under NAFTA has remained quite stable. Border States, in particular Texas and the Northeastern Mexico states, have consistently played a large role in overall U.S.-Mexico trade; nonetheless some non-borders states have also weighed heavily in that relationship, especially Michigan and Central Mexico states. The regional features of trade we identify point to varied and multi-layered border and trans-border dynamics that go beyond a simple border effect. Furthermore, we find that economic integration in the Texas-Northeastern Mexico region has intensified significantly under NAFTA in terms of business cycle synchronization. Moreover the region has come to display a considerable level of economic interdependence, as evidenced by the relatively large share of Northeastern Mexico’s economic output linked to its trade with Texas. These bi-national, border region economic linkages present opportunities as well as challenges for both national economic policies and the management of the shared border.

Integration processes and globalization trends create new possibilities for enterprises. New economics alters the ways of „doing business” in the market. Interdependence of national economies is still deeper and includes different aspects of economic, political and social life. First of all, the paper identifies the areas and ways of the international business cooperation development among the Slovak Republic and Hungary - a business partner closed from geographical or business point of view. Consequently, we try to define the role of marketing in the global market space and distinguish the local, regional and global extend of business expansion. For further development will be necessary to search for possibilities how to compete at the global food market, what are the challenges for industries, marketing and business and how to decide on targeting for local versus regional or global market. We consider the export clusters as an important tool for regional business cooperation and expansion.