Journal articles: 'Macroeconomics of international trade'

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Bergin, Paul R., and Fabio Ghironi. "International trade and macroeconomics: Introduction." International Review of Economics & Finance 26 (April 2013): 1–3. http://dx.doi.org/10.1016/j.iref.2012.08.004.

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Al Mustofa, Muhammad Ubaidillah, Imron Mawardi, Tika Widiastuti, and Dewie Saktia Ardiantono. "MACROECONOMY IMPACTS ON INTERNATIONAL TRADE BETWEEN INDONESIA AND ISLAMIC COUNTRIES." Jurnal Ekonomi dan Bisnis Islam (Journal of Islamic Economics and Business) 6, no. 1 (June 30, 2020): 134. http://dx.doi.org/10.20473/jebis.v6i1.14138.

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As one of the members of the Organisation of Islamic Corporation (OIC), Indonesia has excellent trade prospects. Therefore, this study has a purpose to examine the impact of macroeconomics factors on trade between Indonesia and intra-OIC countries. The variables of macroeconomics in this study consist of country risks, inflation, exchange rate, oil price, and economic growth. Quantitative is the right method for this study, applying Ordinary Least Square (OLS) regression with the help of EViews. The data used for the analysis is a time horizon with annual frequency from 1986 to 2016. Furthermore, finding shows that almost all variables of macroeconomics play an insignificant role in determining the trade between Indonesia and Islamic countries. However, the oil price is the only variable to show its contribution towards trade between Indonesia and intra-OIC countries. The results indicate that macroeconomic variables do not contribute to the key decisions for conducting trade internationally. Political factors and bilateral treaties become better variables to explain Indonesia's trade with other Islamic countries.

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Coeurdacier, Nicolas, and Hélène Rey. "Home Bias in Open Economy Financial Macroeconomics." Journal of Economic Literature 51, no. 1 (March 1, 2013): 63–115. http://dx.doi.org/10.1257/jel.51.1.63.

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Home bias is a perennial feature of international capital markets. We review various explanations of this puzzling phenomenon highlighting recent developments in macroeconomic modeling that incorporate international portfolio choices in standard two-country general equilibrium models. We refer to this new literature as Open Economy Financial Macroeconomics. We focus on three broad classes of explanations: (i) hedging motives in frictionless financial markets (real exchange rate and nontradable income risk), (ii) asset trade costs in international financial markets (such as transaction costs or differences in tax treatments between national and foreign assets), and (iii) informational frictions and behavioral biases. Recent theories call for new portfolio facts beyond equity home bias. We present new evidence on cross-border asset holdings across different types of assets: equities, bonds and bank lending and new micro data on institutional holdings of equity at the fund level. These data should inform macroeconomic modeling of the open economy and a growing literature of models of delegated investment. (JEL E13, F41, G11, G12, G15)

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Bussière, Matthieu, Jean Imbs, Robert Kollmann, and Romain Rancière. "The Financial Crisis: Lessons for International Macroeconomics." American Economic Journal: Macroeconomics 5, no. 3 (July 1, 2013): 75–84. http://dx.doi.org/10.1257/mac.5.3.75.

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This article introduces a special section of the American Economic Journal: Macroeconomics, containing five papers presented during a conference in Paris in October 2011. The aim of the conference was to derive lessons from the financial crisis, for research on international macroeconomics and for policy. The article opens with a summary of the key mechanisms at play during the crisis. The question of the crisis transmission across borders is addressed, with a focus on international trade and financial institutions. Recent advances in the analysis of sovereign default risk are also discussed. The article concludes with a discussion of policy responses to the crisis. (JEL E32, E44, F14, G01, G21, G28)

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Bordo, Michael, and Harold James. "The trade-offs between macroeconomics, political economy and international relations." Financial History Review 26, no. 3 (July 10, 2019): 247–66. http://dx.doi.org/10.1017/s096856501900012x.

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This article explains the problem of adjustment to the challenges of globalization in terms of the logic underpinning four distinct policy constraints, or trilemmas, and their interrelationship, and in particular the disturbances that arise from capital flows. The analysis of a policy trilemma was developed first as a diagnosis of exchange rate problems (the incompatibility of free capital flows with monetary policy autonomy and a fixed exchange rate regime); but the approach can be extended. The second trilemma we describe is the incompatibility between financial stability, capital mobility and national policy choice over exchange rates. The third example extends the analysis to politics, and looks at the strains in reconciling democratic politics with monetary autonomy and capital movements. Finally, we examine the security aspect and look at the interactions of democracy with capital flows and international order. The trilemmas, in short, depict the way that domestic monetary, financial, economic and political systems are interconnected with the international order, or the impossible policy choices at the heart of globalization. Frequently, the trilemmas conjure up countervailing anti-globalization tendencies and trends.

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Cimoli, Mario, Giovanni Dosi, and Joseph Stiglitz. "The Rationale for Industrial and Innovation Policy." Revista do Serviço Público 66 (November 18, 2015): 55–68. http://dx.doi.org/10.21874/rsp.v66i0.1277.

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The evolution of industries in the last two centuries in all countries has been closely supported by a wide range of public policies addressing the patterns of capital accumulation, trade rules, the organisation of markets, innovative efforts and the process of knowledge creation and diffusion. Specific institutions have been created supporting such developments and have played a key role in economic growth. The protection of infant industries, the definition of trade and intellectual property regimes, the distribution of rents and the coherence with macroeconomic policies are key elements of such policies. The current challenges of industrial and innovation policies are discusses in the light of recent experiences in emerging countries.Keywords: secondary sector, public policy, industrial policy, market/commercialpolicy, industrialization, international trade, intellectual property, macroeconomics

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Basorudin, Muhammad, Harwin Dwi, Hartini Sri, Gantjang Amannullah, and Hamid Rachmadani. "The vulnerable financial issue: Capital flight in Indonesia." European Journal of Applied Economics 18, no. 1 (2021): 89–105. http://dx.doi.org/10.5937/ejae18-26921.

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Indonesia is a developing country with a high demand for capital from both domestic and international sources. However, international capital flows are needed the most. For non-Western countries, especially Indonesia, capital flight is an unfavourable financial problem. This research aims to summarise capital flight from Indonesia and analyse the impact of macroeconomic and non-macroeconomic determinants through capital flight. Macroeconomic determinants include budget deficits, economic growth, inflation rates, and exchange rates. Nonmacroeconomic determinants are the degree of trade openness, interest rate differences, and dummy ratings. The data comes from the Bank of Indonesia, OECD, Moody's, and BPS-Statistics Indonesia. The coverage of this research is the Indonesian quarter from 2010 to 2018. This period complies with the latest procedures of the sixth edition of the Balance of Payments Manual (BPM 6). In this research, the measurement of the capital flight is the World Bank's residual method, trade misinvoicing method, and combined method. This research finds that, compared with other economics, non-macroeconomics is the most influential determinant of capital flight from Indonesia.

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Costabile, Lilia. "Istitutions for Social Well-Being: alcune risposte." QA Rivista dell'Associazione Rossi-Doria, no. 3 (August 2009): 103–11. http://dx.doi.org/10.3280/qu2009-003005.

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- Answering the round table participants, the author illustrates the project of this book and its main findings. While the book implies a focus on social policy, the contributors have brought to it their expertise not only in welfare economics but also in macroeconomic and monetary policy. This article outlines how social policy relates to these economic issues, and adopts an international political economy approach both in explaining hierarchies among countries, and in calling into question the "efficiency/equality trade off" as a useful instrument in comparing the economic performance of Europe and the US. Finally, the article discusses the issue of a possible convergence between the social models of Europe towards those of the best performing countries.EconLit Classification: D600, E120, F300, F400, F500Keywords: Welfare Economic, Growth, Globalization, Open Economy Macroeconomics, European Monetary UnionParole chiave: Welfare state, Crescita, Globalizzazione, Macroeconomia delle economie aperte, Unione monetaria europea

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Chadziq, Achmad Lubabul. "Perdagangan Internasional (Studi Komparasi Perdagangan Internasional Konvensional dan Islam)." AKADEMIKA 10, no. 2 (December 30, 2016): 160–72. http://dx.doi.org/10.30736/akademika.v10i2.16.

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Abstract: The people welfare of a country is not only dependent on individuals making trade transactions abroad, but on the macro level, the government alsohas a greater contribution to promote and prosper the people of its country, one of which is through international trade or popularly known as exports and imports. International trade is part of macroeconomics that specifically discusses the relationship between a country and another country in allocatingresources or production factors available in each country. The existence of international economic and trade relations is very useful in order to achieve theprosperity of the world community. Efforts to increase efficiency in the utilization of world production factors as a whole are the targets of international economic and trade activities.

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Drozd, Lukasz A., and Jaromir B. Nosal. "Understanding International Prices: Customers as Capital." American Economic Review 102, no. 1 (February 1, 2012): 364–95. http://dx.doi.org/10.1257/aer.102.1.364.

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The article develops a new theory of pricing to market driven by dynamic frictions of building market shares. Our key innovation is a capital theoretic model of marketing in which relations with customers are valuable. We discipline the introduced friction using data on differences between short-run and long-run price elasticity of international trade flows. We show that the model accounts for several pricing “puzzles” of international macroeconomics. (JEL E13, F14, F31, F41, F44, M31)

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Balsic, Smiljana. "Macroeconomic aspects of international trade." Ekonomija: teorija i praksa 7, no. 1 (2014): 53–68. http://dx.doi.org/10.5937/etp1401053b.

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Ntshwe, Ipeleng, and Rufaro Garidzirai. "Exploring the Influence of Commodity Prices, Real Exchange Rate and Trade Openness on Economic Performance in an Emerging Country." International Journal of Financial Research 12, no. 5 (August 16, 2021): 80. http://dx.doi.org/10.5430/ijfr.v12n5p80.

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Do commodity prices, real exchange rate and trade openness influence economic growth in South Africa? This question is fundamental to academic research since it forms the basis of macroeconomic policies. Therefore, the comprehension of such a relationship is vital which has ushered this study into investigating the effect of real exchange rate, commodity prices and trade openness on economic growth in South Africa from 1984-2019. The purpose of this study is to contribute to the diverse literature on macroeconomics and international trade in the continent and the rest of the world. To achieve this, the Johansen cointegration method and Vector Error Correction Model were employed. The Johansen cointegration method confirmed the existence of a long-run relationship among the variables. Commodity prices and trade openness positively influenced economic growth while real exchange rate inversely influenced economic growth. The Vector Error Correction Model also confirmed that the disequilibrium in the model can be corrected in 1 year 9 months. The study`s findings suggest a methodical monetary policy synthesis that controls both the commodity price stability and exchange rate that spurs economic growth.

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Jusufi, Gent, Lura Rexhepi Mahmutaj, Gentina Jusufi, and Nora Jusufi. "Kosovo’s International Trade: Balance of Trade." European Journal of Economics and Business Studies 3, no. 1 (December 30, 2015): 58. http://dx.doi.org/10.26417/ejes.v3i1.p58-69.

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Purpose – The purpose of this paper is to present a review of literature on the composition of exports and imports during 2005-2011 in Kosovo and key findings from secondary research on the reasons for the high trade deficit which affects economic development within this country. Design/Methodology/Approach – This paper presents secondary data related to background of the international trade and its increasing importance throughout the years because globalization. Then it is followed by characteristics of Kosovo’s trade environment, its domination of imports from 2005 to 2011 and its comparison with EU and non EU countries. Findings – The results of this paper illustrates that Kosovo is facing a major problem with its negative balance of trade, suffering with excessive volume of imported goods and insufficient exported goods. Kosovo’s trade marked an increase of its exports with annual average growth rate of 36%, on the other hand imports marked an increase with annual average growth rate of 13%, while the share of exports and imports of GDP was relatively 60% by the year of 2011. The reasons of poor export performance are mainly based on social, political, and economical issues that Kosovo is confronting. Nevertheless, government took important macroeconomic steps, as well as developed comprehensive process to review, shift the political and economic policies, to sustain the countries balance of trade in long term.

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Thoenissen, Christoph. "EXCHANGE RATE DYNAMICS, ASSET MARKET STRUCTURE, AND THE ROLE OF THE TRADE ELASTICITY." Macroeconomic Dynamics 15, no. 1 (April 7, 2010): 119–43. http://dx.doi.org/10.1017/s1365100509991039.

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A canonical flexible-price international real–business cycle model with incomplete financial markets can address the exchange rate–volatility puzzle, the exchange rate–persistence puzzle, and the consumption real–exchange rate anomaly, as well as the quantity anomaly. Crucial for the success of the model is the choice of the elasticity of substitution between home and foreign produced goods. The paper shows that the range of this parameter that allows the model to address these international macroeconomics anomalies is very narrow. Furthermore, the paper highlights an anomalous relationship between real–exchange rate persistence and the elasticity of substitution between home- and foreign-produced goods.

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Hill, Matt, Katerina Hill, Lorenzo Preve, and Virginia Sarria-Allende. "International evidence on the determinants of trade credit provision." Managerial Finance 45, no. 4 (April 8, 2019): 484–98. http://dx.doi.org/10.1108/mf-07-2018-0295.

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PurposeThe purpose of this paper is to examine whether the level of financial credit available in a country influences the level of trade credit provided to customers.Design/methodology/approachThe authors examine the association between the supply of trade credit and the availability of country-level private financial credit using multivariate regression models that account for country-level heterogeneity, macroeconomic conditions and firm-specific characteristics. The data set is a pooled sample of publicly traded firms incorporated in 66 countries.FindingsSupporting the re-distributional view of trade credit, robust results suggest that suppliers incorporated in countries with increased access to financial credit provide increased trade credit to their customers. Further results indicate significant differences in trade credit usage across geographical regions. Consistent with existing research using samples of US firms, the use of trade credit is correlated with firm-level measures of financial constraints and product market dynamics.Originality/valueThe authors provide one of the first studies to examine differences in trade credit extension across a large number of countries.

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Pham, Thi Hong Van, and Thi Mai Thom Do. "Macroeconomics and development of seaport. Case of Vietnam." Review of Business and Economics Studies 8, no. 2 (March 1, 2021): 19–25. http://dx.doi.org/10.26794/2308-944x-2020-8-2-19-25.

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Seaport industry plays an important role in local and national economic development. The development of the seaport industry creates a competitive advantage, promotes international trade and speeds up the integration process of nations, especially in developing countries. Many studies have noted the importance of seaports to economic development. Economic development is also one of the crucial factors in seaport development. Economic growth will promote domestic production and improve investment efficiency. The development of import and export activities directly affects the supply of goods and the scale of operations of seaports; the increasing in industrial-agricultural output will increase the volume of goods, thereby promoting the seaport industry. This research analyses the relationship between economic growth, export-import operations, industry & agriculture to cargo through ports based on statistical data for the period 2000–2019. This study selects the case of Vietnam, a developing economy with a long coastline along with the country, and its shipping capacity ranked 4th in the ASEAN region.

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Okenna, Nwabueze Prince, and Babatunde Moses Adesanya. "International Trade and the Economies of Developing Countries." American International Journal of Multidisciplinary Scientific Research 6, no. 2 (September 4, 2020): 31–39. http://dx.doi.org/10.46281/aijmsr.v6i2.747.

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The economic significance and benefits of foreign trade also known as international trade to the economies of developing countries cannot be overemphasized. Its role and contributions to the gross domestic earnings, employment generation, economic development, and poverty reduction in these underdeveloped countries such as Nigeria, Ghana, Benin Republic, and others have been too glaring especially in agrarian economies with fertile arable land.The main aim of this paper was to examine in-depth the contributions and relationship between international trade and the economic development of developing African countries. Furthermore, this paper recommended stringent macroeconomic policies that when formulated would encourage and increase the multiplier effect of these (foreign) trades. Part of these policies is targeted towards exchange rates, tariffs, import and export duties, subsidies, and actions that promote international trade.The research further concluded that internationaltradeis a key macroeconomic driver that must be encouraged in developing African countries as its multiplier effects have the potentials of driving the needed development goals of these nations. And for this to be achieved, these nations (developing countries) must formulate workable localized macroeconomic policies that suit and drive their interest as against borrowed economic policies from the developed European and Asian nations. Some of the recommendations proffered include adoption of friendly and pro-active export promotion policies, availability of grants, aids, subsidies, and loans, mechanization of the agrarian sector, adoption of flexible exchange rate, etc.This study made use of time series secondary data obtained from the World Development Indicators (WDI) and the United Nations Conference on Trade and Development (UNCTAD) of developing African countries for a period between 2000 and 2019. A forecast of 15 years was also initiated using these data to provide a long-term insight into the benefits of these trading activities on the GDP of developing countries.

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Berdell, John. "Retrospectives: An Early Supply-Side–Demand-Side Controversy: Petty, Law, Cantillon." Journal of Economic Perspectives 24, no. 4 (November 1, 2010): 207–17. http://dx.doi.org/10.1257/jep.24.4.207.

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Early modern Europe in the late seventeenth and early eighteenth centuries witnessed an unprecedented increase in the rate of economic growth, and governments entertained a wide range of proposals aimed at developing and harnessing foreign trade and emerging financial markets. In his magisterial survey of foreign trade doctrine titled Studies in the Theory of International Trade (1936), Jacob Viner pointed out that enlightened authors of that time were often nonbullionist mercantilists: they favored export promotion and import reduction not on the grounds that it would lead to an accumulation of gold, but on the grounds that it would increase trade and employment. My focus here is on how some key economists of this time period—William Petty, John Law, and Richard Cantillon—adumbrated disputes between supply-side and demand-side macroeconomics that have continued to the present day.

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Johnson, Ronald. "Terms of Trade Shifts and International Macroeconomic Fundamentals." Review of Black Political Economy 21, no. 3 (March 1993): 73–85. http://dx.doi.org/10.1007/bf02701706.

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This paper focuses on the relationship between developing-country terms of trade and underlying economic fundamentals in the industrial economies. The focus is limited to the terms of trade of the five developing-country regions (Africa, Asia, Europe, the Middle East, and the Western Hemisphere). The analysis is based on a version of the arbitrage pricing model, which is used extensively in the literature on capital market analysis. This model links developing-country terms of trade to indicators of international macroeconomic fundamentals. In this model the terms of trade are characterized as the price of a hedge portfolio consisting of a long position in exports and a short position in imports. The primary finding is that there does not appear to be an important link between developing-country terms of trade and underlying fundamentals in the industrial countries.

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Gökmen, Aytaç, and Dilek Temiz Dinç. "International Parity Conditions and the Possible Impact on the International Business Operations." International Journal of Sustainable Economies Management 5, no. 2 (April 2016): 1–13. http://dx.doi.org/10.4018/ijsem.2016040101.

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There is not only one currency and an exact predictable parity for each currency in the globe. This makes the accomplishment of international business and trade operations complicated owing to the fact that the mandatory usage of strong currencies in international trade. However, business cycles, alternating macroeconomic variables, political conditions and government interventions impact on the value of currencies and international parity conditions. Turkey is at the convergence of Eurasia and serves as a trade route among many regions. It also derives a considerable part of its GDP from international trade operations. However, the variations in the international trade volume, foreign exchange operations and international parity conditions impact on the economic and commercial potential sweepingly. Thus, the objective of this paper is to review the international business and trade potential of the Republic of Turkey with respect to foreign exchange and international parity conditions depending on credible national and international publications.

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Ghironi, F., and M. J. Melitz. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms." Quarterly Journal of Economics 120, no. 3 (August 1, 2005): 865–915. http://dx.doi.org/10.1093/qje/120.3.865.

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Ghironi, Fabio, and Marc J. Melitz. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms*." Quarterly Journal of Economics 120, no. 3 (August 2005): 865–915. http://dx.doi.org/10.1162/003355305774268246.

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Mann, Catherine L. "Supply Chain Logistics, Trade Facilitation and International Trade: A Macroeconomic Policy View." Journal of Supply Chain Management 48, no. 3 (July 2012): 7–14. http://dx.doi.org/10.1111/j.1745-493x.2012.03270.x.

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Gnangnon, Sèna Kimm. "Multilateral Trade Liberalization, Export Share in the International Trade Market and Aid for Trade." Journal of International Commerce, Economics and Policy 08, no. 03 (October 2017): 1750014. http://dx.doi.org/10.1142/s1793993317500144.

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This paper adds to the existing literature on the macroeconomic determinants of Aid for Trade (AfT). It investigates the impact of both multilateral trade policy liberalization and the export share of AfT-recipient countries in global trade market on the AfT amounts that accrue to these countries. Using a panel dataset comprising 133 AfT-recipient-countries, over the period 1995–2015, the empirical analysis shows that both the impact of multilateral trade policy liberalization and of the recipient countries’ export share in the world trade market on AfT depend on recipient-countries’ level of development as well as on their domestic trade policy. Additionally, in the context of multilateral trade liberalization, donors tend to reward recipient-countries’ effort to secure a higher export share in the international trade market.

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Klemperer, P. "Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade." Review of Economic Studies 62, no. 4 (October 1, 1995): 515–39. http://dx.doi.org/10.2307/2298075.

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Adams, Russell, Tom Coyle, Clara Downey, and Marvin Lovett. "Macroeconomic impact on trade show goals." Journal of Business & Industrial Marketing 32, no. 5 (June 5, 2017): 710–21. http://dx.doi.org/10.1108/jbim-10-2015-0186.

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Purpose This paper aims to determine what impact an economic recession and recovery had on the selling and non-selling activities of trade show attendees and the subsequent marketing tactic changes. Design/methodology/approach Samples were collected from an international trade show during the recession (2009) and during the recovery (2013). The responses were analyzed using ANOVA and structural equation modeling to establish significant changes in activities between the periods and to provide a factor model. Findings Direct selling goals do not change during economic conditions. Intangible priorities increase during recessions. Research limitations/implications The trade show is limited to one location; therefore, is not a representative sample. Questionnaire design issues did not allow the linking of survey respondents to specific companies; therefore, is not a true longitudinal study. Practical implications Companies should focus on prospecting, enhancing corporate image and morale, testing and introducing new products and gathering intelligence during economic downturns. Conversely, companies should focus on sales and servicing clients during economic recovery. Originality/value This is the first research to study the macroeconomic impact on marketing tactics over multiple periods in an international setting. Several accepted selling and non-selling instrument goals are measured in an international context. A new model for structuring trade show goals is developed.

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Cacciatore, Matteo. "International trade and macroeconomic dynamics with labor market frictions." Journal of International Economics 93, no. 1 (May 2014): 17–30. http://dx.doi.org/10.1016/j.jinteco.2014.01.008.

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REZNIKOVA, NATALIIA, Volodymyr PANCHENKO, and Oksana IVASHCHENKO. "FROM THE SYNTHESIS OF ECONOMIC THEORIES TO POLITICAL CONSENSUS: MONETARY AND FISCAL DILEMMAS OF MACROECONOMIC STABILIZATION IN THE CONTEXT OF THE CORONAVIRUS CRISIS." Economy of Ukraine 2021, no. 4 (April 24, 2021): 3–29. http://dx.doi.org/10.15407/economyukr.2021.04.003.

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An analysis of government programs for macroeconomic stabilization of selected countries is made to establish their compliance with scientific approaches that determine the political choice in favor of the use of monetary and/or fiscal instruments for stimulation of economic activity based on the revision of the substantive provisions of neoclassical synthesis and the new macroeconomic consensus to highlight the peculiarities of interpretation of macroeconomic processes, the nature of cyclical fluctuations and ways to level and adjust them. It is established that the most popular in the political sphere are the conclusions of the new neoclassical synthesis (New Consensus in Macroeconomics), which combines the new Keynesian approach and the real business cycle approach, however, they are also adjusted in any form, depending on the priority of the government. (the desire to achieve full employment; price stabilization; economic growth and balance of payments; efficient use of limited resources), provide mostly short-term planning horizon, which complicates the exit from the “vicious circle” of economic policy, when its dynamic development becomes hostage to the need for constant adaptation in accordance with the changing conditions, which it itself by its own adjustment causes. It was found that in the situation of the Coronavirus crisis the issues of combating the simultaneous shocks of supply and demand, and unemployment in particular, are recognized as a priority and sought to be addressed through a combination of monetary and fiscal policy tools, including regulatory competition by neoprotectionism. defined by us as a set of principles, tools and methods of regulatory policy in international trade, international capital movements and foreign investment, as well as international monetary, financial and credit relations, the imperative of which is to stimulate socio-economic development and economic growth by creating conditions for increasing the economic activity of all economic entities.

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M. Muhammad, Risa S. Pertiwi, S. Herianingrum, Muhammad U. A. Mustofa,. "Studi Empiris Government Effectiveness dan Trade Openness terhadap Perdagangan Internasional." Jurnal Ekonomi 24, no. 3 (January 7, 2020): 350. http://dx.doi.org/10.24912/je.v24i3.598.

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This study aims to examine the impact of macroeconomic factors such as Inflation, Exchange Rates, Total Labor Force, Technology, Worldwide Government and Trade Openness on International Trade in 10 Islamic countries as the main actors of international trade Intra-OKI from 2005 to 2018. Quantitative research This applies the Panel Data Regression method to the Fixed Effect Model. Research analysis techniques use the EViews 10. software program. Empirical results show that inflation and total labor force, government effectiveness and trade openness have a significant positive effect to Intra-OKI international trade. This means that the better the quality of worldwide government and trade openness in a country will increase the country's international trade activities. In addition, exchange rates and technology do not have a significant effect in Intra-OKI international trade.

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Walter, Jason, Jungho Baek, and Won W. Koo. "International trade and macroeconomic dynamics: The case of U.S. bilateral trade with G-7 countries." Research in Economics 66, no. 4 (December 2012): 398–405. http://dx.doi.org/10.1016/j.rie.2012.06.003.

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Abe, Taro. "International Competition, Debt, and Uneven Development in a North-South Macroeconomic Model." Pakistan Development Review 46, no. 3 (September 1, 2007): 267–83. http://dx.doi.org/10.30541/v46i3pp.267-283.

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This paper examines whether the intensification of international competition widens the gap between developing and developed economies. The intensification of international competition with an influential trade union in the North is known to lower the North’s markup rate. This paper is unique because it points out that the intensification of international competition can widen the North-South gap when the Southern debt is taken into consideration. It also shows that the egalitarian policy in the North as influenced by trade unions is compatible with its international policy: relief of interest payments.

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Chirwa, Themba G., and Nicholas M. Odhiambo. "Macroeconomic Determinants of Economic Growth: A Review of International Literature." South East European Journal of Economics and Business 11, no. 2 (December 1, 2016): 33–47. http://dx.doi.org/10.1515/jeb-2016-0009.

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AbstractThe paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

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Abe, Taro. "International Competition, Debt, and Uneven Development in a North-South Macroeconomic Model." Pakistan Development Review 47, no. 3 (September 1, 2008): 267–83. http://dx.doi.org/10.30541/v47i3pp.267-283.

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This paper examines whether the intensification of international competition widens the gap between developing and developed economies. The intensification of international competition with an influential trade union in the North is known to lower the North’s markup rate. This paper is unique because it points out that the intensification of international competition can widen the North-South gap when the Southern debt is taken into consideration. It also shows that the egalitarian policy in the North as influenced by trade unions is compatible with its international policy: relief of interest payments. JEL classification: F19, O19 Keywords: North-South, Uneven Development, Debt

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Yoshimine, Koichi, and Thomas P. Barbiero. "Trade in Capital Goods and International Co-movements of Macroeconomic Variables." Open Economies Review 20, no. 1 (May 23, 2007): 113–22. http://dx.doi.org/10.1007/s11079-007-9053-5.

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Ozekhome, Hassan. "International Trade Costs and Trade Flows: Evidence from the West African Monetary Zone (WAMZ)." Finance & Economics Review 2, no. 1 (May 22, 2020): 63–76. http://dx.doi.org/10.38157/finance-economics-review.v2i1.80.

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Purpose: The study examines the effect of international trade costs on trade flows in the West African Monetary Zone (WAMZ), a sub-regional economic bloc within the Economic Community of West African States (ECOWAS). Method: Six member countries of the WAMZ, based on data availability, are examined using panel data estimation technique and the Fully Modified Ordinary Least squares (FMOLS), which is employed to test for the robustness of results, for the sample period of 2006-2018. Results: The study finds a negative and significant effect of international trade costs on trade flows in the WAMZ sub-region. Time to trade is also found to be negatively and significantly related to trade. Exchange rate, financial development (measured by commercial banks' credit to the private sector), and real GDP growth rate (a measure of growth in annual national income/economic size) have a positive and significant impact on trade in the sub-region. The study further finds evidence that the ease of doing business is positively related to trade in the sub-region, but the impact is weak. Implications: In the light of the empirical findings, the study recommends that policy measures and strategies to reduce international trade costs and time to trade through simplified and harmonized trade procedures be implemented in the sub-region. Policies to encourage domestic investment (i.e increase capital stock) and rapid development of the financial sector should also be implemented. These should be supported with sound and stable macroeconomic exchange rate management policies, in order to enhance trade and integration in the sub-region.

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Bong, Angkeara, and Gamini Premaratne. "Regional Integration and Economic Growth in Southeast Asia." Global Business Review 19, no. 6 (September 28, 2018): 1403–15. http://dx.doi.org/10.1177/0972150918794568.

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Southeast Asia has experienced an economic growth since the 1980s. This growth triggered by reforms to increasing global and regional integration has been remarkable. This article aims to examine whether regional integration promotes economic growth in Southeast Asia. It further investigates whether the economic and social factors affect economic growth. The panel data were collected over 43 years (1970–2013) in Southeast Asia. We employ a cross-country growth model using a generalized method of moments in the dynamic panel framework to empirically examine the impact of regional integration on economic growth. Our results found that regional integration had a significant effect on economic growth. More specifically, our empirical results suggest that, in order to enhance regional integration and economic growth in the region, public institutions should work towards eliminating corruption and stabilizing macroeconomics and political stability while promoting international trade among member countries. This article sheds light on the key determinants of economic growth and policy formulations to achieve higher economic growth in Southeast Asia.

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Das, Koushik, and Pinaki Chakraborti. "International Trade, Environment and Market Imperfection: A Computable General Equilibrium Analysis for India." South Asian Journal of Macroeconomics and Public Finance 1, no. 2 (December 2012): 157–90. http://dx.doi.org/10.1177/2277978712473397.

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The purpose of this article is to understand general equilibrium impacts of international trade and globalization on social welfare and environmental emission caused on account of energy consumption by industries and households. We applied Computable General Equilibrium (CGE) modelling as the relevant methodology following Shoven and Whalley (1984). By constructing an energy/environmental Social Accounting Matrix (SAM), this article attempts to measure the effects of trade liberalization on different macroeconomic variables, energy consumption and green house gas (GHG) emission. We simulate various trade related policies like import liberalization, foreign capital inflow and use of energy saving technologies under both perfect and monopolistic competition.

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Niranjan R. "Financial Integrational Effects on Macroeconomic Instability in India." Margin: The Journal of Applied Economic Research 11, no. 2 (April 4, 2017): 143–66. http://dx.doi.org/10.1177/0973801016687879.

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The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32

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Li, Chenggang, and Yong Gan. "Trade Conflicts and China's Macroeconomic Fluctuations ---An Empirical Analysis Based on Vector Autoregression Model." ITM Web of Conferences 25 (2019): 01007. http://dx.doi.org/10.1051/itmconf/20192501007.

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This paper uses the data from November 2016 to June 2018 to construct a VAR model to empirically analyze the impact of trade wars on the Chinese economy since the trade friction between China and the United States. The empirical results show that the trade conflict between China and the United States will have short-term effects on financial institution loans, net export fluctuations, capital markets, short-term international capital flows, and the RMB exchange rate. After the impact of the trade war, the Chinese economy will have a spontaneous adjustment function, which will cause a certain positive and negative change in economic changes. But over time, the impact of Sino-US trade conflicts on financial institution loans, net export volatility, asset prices, short-term international capital flows, and the RMB exchange rate has gradually weakened until the gradual convergence to the zero axis and the effect disappears.

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Mah, Jai S. "Comparison between Antidumping and Countervailing Duties: The Case of the United States International Trade Commission, 1995-1999." International Studies Review 5, no. 1 (September 28, 2004): 13–25. http://dx.doi.org/10.1163/2667078x-00501002.

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This study compares the determinants of antidumping duties with those of countervailing duties using data for the U.S. ITC under the World Trade Organization system. The empirical evidences show that the commissioners are responsive to changes in trade balances and unemployment rate. Their decisions in case of antidumping duties are revealed to be less responsive to changes in macroeconomic variables than those relating to countervailing duties. The Democrat Commissioners are revealed to be more responsive to macroeconomic variables than the Republican Commissioners in the case of countervailing duties-related decisions.

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Webb, Michael C. "International economic structures, government interests, and international coordination of macroeconomic adjustment policies." International Organization 45, no. 3 (1991): 309–42. http://dx.doi.org/10.1017/s0020818300033129.

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Analysts have commonly argued that there has been a decline in international coordination of the kinds of policies that governments can use to manage the international payments imbalances that emerge when different governments pursue different macroeconomic policies. The decline typically has been attributed to a posited decline in American hegemony. In contrast, this article argues that international coordination of macroeconomic adjustment policies (trade and capital controls, exchange rate policies, balance-of-payments financing, and monetary and fiscal policies) was at least as extensive for much of the 1980s as it had been in the 1960s. There was, however, a shift away from coordination of balance-of-payments financing and other policies that have limited direct consequences for domestic economic and political conditions and a concurrent shift toward coordination of monetary and fiscal policies that are critically important for domestic politics and economics. This change is best explained as a consequence of changes in the structure of the international economy. Most important, international capital market integration encouraged governments to coordinate monetary and fiscal policies because balance-of-payments financing and exchange rate coordination alone are insufficient to manage the enormous payments imbalances that emerge when capital is able to flow internationally in search of higher interest rates and appreciating currencies.

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Shah Zainal Abidin, Irwan, Muhammad Haseeb, Lee Wen Chiat, and Md Rabiul Islam. "Determinants of Malaysia – BRICS trade linkages: gravity model approach." Investment Management and Financial Innovations 13, no. 2 (July 14, 2016): 389–98. http://dx.doi.org/10.21511/imfi.13(2-2).2016.14.

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The main objective of this study is to explore the long-run and short-run relationship between trade and other macroeconomic variables of Malaysian and the BRICS countries. To test relationship between trade and other macroeconomic variables, the empirical investigation will be conducted based on the dynamic ordinary least square (DOLS) and fully modify ordinary least square (FMOLS) model for the period 1980-2015. Results of both DOLS and FMOLS show that out of all the variables included in the model distance between Malaysia and BRICS countries and corruption of both side have negative affect on bilateral trade between them. Whereas, GDP, GDP per capita and trade to GDP ratio are positively contribute in the bilateral trade. However, inflation and exchange rate of Malaysia and BRCIS countries have no effect on the bilateral trade between Malaysia and BRICS countries. The findings suggest that economic strengthening as the basis for increase in trade between Malaysia and BRICS members. Investment appears to be complementary to the trading relations in the Malaysia-BRICS case. The social capital also plays role in supporting the trade

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Lurnk, Joke. "A World Accounting Framework: Trade and Financial Flows between Developing Countdes and the Rest of the World." Pakistan Development Review 31, no. 4II (December 1, 1992): 655–65. http://dx.doi.org/10.30541/v31i4iipp.655-665.

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The patterns of trade and fmancial flows between different parts of the world economy have changed dramatically over the last two decades. These changes have been accompanied by large increases in discrepancies in macroeconomic statistics. Published data sources on global macroeconomic aggregates may be highly misleading because of their lack of consistency. A first necessary step towards the analysis of changes in the patterns of international trade and finance is therefore to develop a consistent global accounting framework in which international finance can be placed in relationship to international trade and domestic accumulation: this framework we call the World Accounting Matrix (WAM). The W AM is based on the concept that related variables - international trade, fmancial flows and stocks, and domestic saving and investments - should be presented in one framework that explicitly takes the relationships between the variables into account. It is an integrated data system centred around accumulation balances. It presents aggregates in matrix format, for groups of countries. The purpose of the W AM is (i) to bring data from various data sources together in one framework in order to make better use of existing statistics, (ii) to check for consistency and to disentangle discrepancies both within and between data sources and to make adjustments for the discrepancies, (iii) to provide an analytical framework for the analysis of the effects of different types of international capital flows and external shocks on economic growth and stability in developing countries and the role of international capital flows in the process of global adjustment.

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Nourzad, Farrokh. "Macroeconomic and Sectoral Effects of International Trade: A Vector Error-Correction Study." Atlantic Economic Journal 33, no. 1 (March 2005): 43–54. http://dx.doi.org/10.1007/s11293-005-1644-1.

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Taufiqqurrachman, Fahrizal, and Rossanto Dwi Handoyo. "ANALISIS DAMPAK IC-CEPA TERHADAP PEREKONOMIAN INDONESIA." Buletin Ilmiah Litbang Perdagangan 15, no. 1 (July 15, 2021): 27–50. http://dx.doi.org/10.30908/bilp.v15i1.439.

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Abstrak Perkembangan perdagangan Indonesia akan semakin bervariasi hal ini dapat dilihat dari kebijakan kementerian perdagangan yang memfokuskan untuk menjalin kerja sama perdagangan internasional dengan beberapa negara diluar negara maju. Salah satunya perdagangan bilateral Indonesia Chile dalam kerangka IC-CEPA. Penelitian ini menggunakan metode analisis Model CGE Multiregional. Model yang digunakan sudah tersusun dalam Aplikasi GTAP versi 9 Lisensi Kementerian Perdagangan yang difokuskan pada sektoral dan makro ekonomi Indonesia. Hasil olah data GTAP menunjukkan bahwa sektor yang berorientasi ekspor di Indonesia seperti textile, oil seeds, paper product and publishing, motor vehicle and parts, machinery and equipments dan electronic equipment menunjukkan hasil yang positif setelah dilakukan simulasi (shock) penurunan tarif sebesar 80 - 40 dan 0% (full liberalization). Hasil analisis menunjukkan bahwa sektor yang berorientasi pada ekspor mengalami peningkatan. Pada kondisi makroekonomi kesepakataan liberalisasi pada IC-CEPA mampu mempengaruhi kesejahteraan yang terus meningkat. Oleh karena itu, diperlukan adanya integrasi yang solid antara pemerintah dan para pelaku usaha yang bergerak di bidang sektor ekspor Indonesia dengan memberikan kebijakan yang mampu mengoptimalkan kuantitas dan menjaga kualitas sektor tersebut dalam bersaing di pasar Chile. Kata kunci: IC-CEPA, GTAP, Sektoral, Makroekonomi Abstract The Indonesia's trade development is increasingly varied, shown by the ministry of trade’s policy which focuses more on establishing international trade cooperation with countries outside developed countries. One of them is bilateral trade between Indonesia and Chile in the framework of IC-CEPA. The research uses analysis method of the Multiregional CGE Model. The model used has been arranged in the GTAP Application version 9 of the Ministry of Trade License which focused on the sectoral and macroeconomics of Indonesia. The results of the analysis show that Indonesia’s export-oriented sectors such as textiles, oil seeds, paper products and publishing, motor vehicles and parts, machinery and equipment and electronic equipment positively impacted by tariff reduction of 80 - 40 and 0 percent (full liberalization). The analysis shows that the export-oriented sector increased. The agreement on liberalization of IC-CEPA is able to influence welfare increasing. Therefore, it is necessary to have a solid integration between the government and business players engaged in Indonesian export commodities by providing policies that are able to optimize the quantity and maintain the quality of the sector in competing in the Chilean market. Keywords: IC-CEPA, GTAP, Sectoral, Macroeconomics JEL Classifications: F13, F18, F62

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Devereux, Michael B., and Changhua Yu. "International Financial Integration and Crisis Contagion." Review of Economic Studies 87, no. 3 (October 9, 2019): 1174–212. http://dx.doi.org/10.1093/restud/rdz054.

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Abstract International financial integration helps to diversify risk but also may spread crises across countries. We provide a quantitative analysis of this trade-off in a two-country general equilibrium model with collateral-constrained borrowing using a global solution method. Borrowing constraints bind occasionally, depending upon the state of the economy and levels of inherited debt. We examine different degrees of international financial integration, moving from financial autarky, to bond and equity market integration. Financial integration leads to a significant increase in global leverage, substantially escalates the probability of crises for any one country, and dramatically increases the degree of “contagion” across countries. Outside of crises, the impact of financial integration on macroeconomic aggregates is relatively small. But the impact of a crisis with integrated international financial markets is much less severe than that under financial market autarky. Thus, a trade-off emerges between the probability of crises and the severity of crises. Using a large cross-country database of financial crises in developing and developed economies over a forty-year period, we find evidence in support of the model.

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Ryzhyuk. "International trade as a factor of ensuring positive dynamics of export of ukraine." Problems of Innovation and Investment Development, no. 23 (April 10, 2020): 12–26. http://dx.doi.org/10.33813/2224-1213.23.2020.2.

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The subject of the research is a set of institutions and mechanisms of a system of effective foreign trade activity in the world and in Ukraine in the conditions of crisis and state regulation. The goal of writing this article is to develop prac- tical, scientific, and methodological recommendations to improve the efficiency of foreign trade of Ukraine. The methodology of the work is a system-structural and comparative research (to understand the logic of the functioning of international institutions regulating trade in the world); monographic analysis (when studying the problems of improving the model of international specialization of the Ukrai nian economy); statistical and economic analysis (in assessing the status and pros- pects of export-import operations of the Ukrainian economy). Results of work–it was revealed that the modern model of international specialization of the Ukrai- nian economy is unpromising and unstable to crisis phenomena. It is proposed to systematically increase the manufacturability and innovativeness of domestic ex- porters, which will contribute to sustainability and competitiveness in foreign markets, even during times of crisis. In addition, it is necessary to introduce an updated state macroeconomic and financial investment policy in Ukraine to reduce the impact of crisis in the economy and improve the export-import balance of trade. Conclusions–a targeted policy is needed to support the export activity of Ukrai- nian enterprises and focus on innovation and finding new markets. In this context, a combination of macroeconomic and financial-investment state support for export promotion is necessary; as well as the introduction of tax and customs instruments for export support, trade facilitation and regulatory requirements to reduce the transaction costs of exporters, the intensification of technical assistance and fi- nancial support for exports, the development and institutionalization of mechanisms for information, legal and methodological support for exporters.

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Tahir, Muhammad, SAF Hasnu, and Mario Ruiz Estrada. "Macroeconomic determinants of trade openness: empirical investigation of SAARC region." Journal of Asia Business Studies 12, no. 2 (May 8, 2018): 151–61. http://dx.doi.org/10.1108/jabs-12-2015-0207.

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Purpose Trade openness plays a significant role in the growth process of countries. The purpose of this paper is to examine the impact of macroeconomic determinants on the trade openness of countries. Design/methodology/approach The study focuses on the South Asian Association for Regional Cooperation (SAARC) member countries and the data used were from 1971 to 2011. Panel data econometrics techniques and two stages least square method (TSLS) are used to carry out empirical analysis and robustness testing. Findings The main finding of the paper is that macroeconomic determinants such as investment both in physical and human capital and per capita gross domestic product (GDP) positively affect trade openness. Further, the size of labour force and currency exchange rate has also impacted trade openness negatively and significantly. Practical implications It implies that efficient macroeconomic management matters for higher trade openness. The sampled developing countries are suggested to pay favourable attention to macroeconomic variables if they want to grow in the long run through outward-oriented policies. Originality/value This paper is an original contribution in the context of SAARC countries by focusing on the relationship between macroeconomic determinants and trade openness.

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Y. Ye, Fred. "An Economic Analysis of Efficiency and Equality Combining Epistemological True with Axiological Good Through Microeconomics to Macroeconomics." International Journal of Economics and Financial Research, no. 67 (July 15, 2020): 159–69. http://dx.doi.org/10.32861/ijefr.67.159.169.

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Applying the Arrow-Debreu-Mundell-Fleming model as an economic standard model, with combining axiological framework and epistemological model, it is proposed to analyze economic policies with using a synthetic model, where interest, exchange and tax rates are integrated together. Except normal monetary and fiscal policies mainly via interest and tax rates, there are feasible ways to utilize modified strategies via exchange and tax rates. When ones need to simulate national local market, ones can raise the exchange rate. Otherwise, when ones need to promote international global trade, ones may lower the exchange rate. It is found that tax reduction is good policy when tax rate is higher than normal and that tax increase is good social policy when tax rate is lower than normal, during economic depression. Also it is revealed that tax reduction is good social policy when tax rate is lower than normal, and that tax increase is good policy when tax rate is higher than normal, during economic overheat. While economic system seeks efficiency and social system pursues equality, common interest modifications with elastic exchange and tax rates could be applied for balancing efficiency and equality.

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Abbas, Shujaat, and Abdul Waheed. "Pakistan’s Global Trade Potential: A Gravity Model Approach." Global Business Review 20, no. 6 (July 31, 2019): 1361–71. http://dx.doi.org/10.1177/0972150919848936.

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The international trade of Pakistan is highly concentrated on a few goods and markets. This study investigates macroeconomic behaviour of trade flow and explores potential trade markets for Pakistan using an augmented gravity model on a large panel of 47 cross-sections from 1980 to 2013. The result of standard gravity variables shows consistent findings with statistically significant t-statistics, whereas augmented variables reveal that relative price has a positive impact with lower price elasticity. The result of binary variables shows that Pakistan’s trade is more with countries having the same language, whereas lower trade is observed with bordering countries. The result of South Asian Free Trade Agreement (SAFTA) revealed ineffectiveness of regional integration on the creation of trade for Pakistan, whereas, bilateral free trade agreements (BFTAs) have created considerable trade. The finding of trade potential revealed exhausted potential with major trading partners and there is a need for greater trade diversification from exhausted to potential countries. It has higher untapped potential with Nepal, Iraq, India, Philippines and Jordan, respectively, in Asia, whereas European countries have the highest potential. The results concluded that Pakistan can diversify its trade from exhausted to potential countries through individual BFTAs and multilateral free trade agreements. South Asian countries should address their disputes and revisit SAFTA aiming to improve regional trade and growth.

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Journal articles on the topic 'Macroeconomics of international trade'

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