Andrea Gatto , Carlo Drago , Demetrio Panarello , Luigi Aldieri
{"title":"Energy transition in China: Assessing progress in sustainable development and resilience directions","authors":"Andrea Gatto , Carlo Drago , Demetrio Panarello , Luigi Aldieri","doi":"10.1016/j.inteco.2023.08.001","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.08.001","url":null,"abstract":"<div><p>China is often referred to as a global benchmark for the energy transition. Regarding energy sustainability, China's strategies and policies might be viewed as either highly innovative or detrimental. Considering the Chinese economy, population, consumption, and pollution rates, the country's energy transition decisions are deemed major determinants for the present and future global energy sustainability, resilience and related conditions. This paper aims to provide a measure and definition of these phenomena to characterize selected aspects, highlighting China's global and regional status. To this end, an interval-based composite indicator assessment is reviewed, indicating that China holds a mid-tier status in terms of energy sustainability relative to global standards. Therefore, energy security standards serve as the foundation for China's transition path to ensuring a clean, renewable and sustainable energy supply and resilience in the future conditional to universal and democratic energy justice achievement.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"176 ","pages":"Article 100450"},"PeriodicalIF":0.0,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50178844","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of exchange rates on Turkish imports and exports","authors":"Willem Thorbecke , Ahmet Sengonul","doi":"10.1016/j.inteco.2023.04.003","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.04.003","url":null,"abstract":"<div><p>The Turkish lira has depreciated by 200% between 2012 and 2022. We investigate how exchange rates affect Turkish imports and exports. Nonlinear autoregressive distributed lag results indicate that appreciations during appreciation episodes increase imports and exports but exchange rate changes during depreciation periods frequently do not affect trade. These responses are inconsistent with the predictions of the imperfect substitutes model and the dominant currency pricing model. Rather, they are consistent with models where firms need to import inputs in order to export and where appreciations ease credit constraints that firms face when they must borrow in foreign currencies to purchase inputs.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 231-249"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196355","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The case of financial and banking integration of Central, Eastern and South Eastern European countries: A gravity model approach","authors":"Léonore Raguideau-Hannotin","doi":"10.1016/j.inteco.2022.12.002","DOIUrl":"https://doi.org/10.1016/j.inteco.2022.12.002","url":null,"abstract":"<div><p>The motivation of this article is to better understand the determinants of international banking integration of non-Euro CESEE EU Members. One stylized fact for these economies is the building up of external financial vulnerabilities since the beginning of the transition period, with a large weight of cross-border banking, particularly with the European Union. In relation with the literature on the impact of gross financial flows on financial stability, we therefore estimate the long-term historical, geographical and cultural determinants of cross-border banking claims with a bilateral financial gravity model. We then analyze the impact of domestic (pull), foreign (push) and global factors using the gravity framework. Our results first show that cross-border banking in these economies is significantly driven by geographical proximity and common historical links, particularly with EU Member States. Second, we find that banking sector health variables are more significant as push factors, while structural banking system variables are more significant as pull factors. These results provide evidence in favor of an impact of European banking systems on financial liabilities in this region, in relation with the very high level of EU ownership of banking assets. Finally, US global liquidity factor matters more than exchange rate stability, which points towards policy dilemma effect in the region.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 91-111"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Leticia Blázquez, Carmen Díaz-Mora, Belén González-Díaz
{"title":"Hubs of embodied business services in a GVC world","authors":"Leticia Blázquez, Carmen Díaz-Mora, Belén González-Díaz","doi":"10.1016/j.inteco.2023.02.004","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.02.004","url":null,"abstract":"<div><p>This paper explores the phenomenon of functional upgrading in Global Value Chains (GVCs) by applying empirical techniques of Social Network Analysis and graph theory to data from the TiVA database for the period from 1995 to 2018. Specifically, we focus on two (from less to more complex) stages of GVC participation: the global supply of manufacturing inputs and the global supply of business services to be embodied in other countries’ exports. We identify which countries are the leading specialized global providers in each stage, analysing their evolutions over time and the relationship between both progressions. It highlights the trajectory of China that has increased its role as a hub in both stages to reach top positions. Using a dynamic panel data model, we find that the role of a country as a specialized global supplier of manufacturing inputs is associate with becoming a prominent global supplier of embodied business services, suggesting a path to functional upgrading in GVCs.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 28-43"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How does globalization affect educational attainment? Evidence from China","authors":"Maggie Y. Liu","doi":"10.1016/j.inteco.2023.03.003","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.03.003","url":null,"abstract":"<div><p>I examine the effect of China’s integration into the world economy on high school education in Chinese prefectures between 1991 and 2005. I focus on the reduction in trade policy uncertainty faced by Chinese exporters in the U.S., and use Bartik-style local treatment measures in a difference-in-differences empirical framework. I find increases in high school education were attenuated in prefectures facing larger reductions in U.S. tariff uncertainty on unskilled-labor intensive goods — this result is driven by an increased opportunity cost of schooling due to the arrival of low-skill jobs upon the elimination of trade policy uncertainty with the U.S.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 138-159"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196358","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Assessing the role of globalization for universal electricity access","authors":"Issidor Noumba , Stéphane Mbiankeu Nguea","doi":"10.1016/j.inteco.2023.03.008","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.03.008","url":null,"abstract":"<div><p>Using the electricity access rate to measure progress towards the Sustainable Development Goal target for universal access to electricity by 2030, about 580 Millions African people lack electricity access. However, globalization offers technological innovation, financial resources and international cooperation opportunities to achieve universal electricity access. This paper investigates whether increasing globalization levels can help achieve the goal of expanding access to electricity services in Africa. The analysis is based on panel data of 36 African countries over the 2000–2017 period and system GMM for empirical estimations. Our findings indicate that economic, social, and political globalization matters for increasing access to electricity. We also find that economic globalization reduces disparities in access to electricity. Further decomposing of economic globalization indicates that financial globalization, FDI and trade openness increase access to electricity. Furthermore, while financial globalization and FDI widen disparities in access to electricity, trade openness negatively affects disparities. The results also indicate that economic growth is one of the important channels through which globalization enhances electricity access. Finally, we carry out sub-regional analyses and find that these patterns are robust across Sub-Saharan African countries.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 180-195"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The strategic proximity-concentration trade-off with multiproduct multinational firms","authors":"Gaetano Alfredo Minerva","doi":"10.1016/j.inteco.2023.03.007","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.03.007","url":null,"abstract":"<div><p>I study the proximity-concentration trade-off faced by two multiproduct multinational companies (MNCs) that operate in two countries under horizontal product differentiation. In this context, characterized by two-way trade and foreign direct investment, the trade-off regulates the domestic stock of investment (concentration) against the foreign stock (proximity) in a way that is centred around the exploitation of large market shares and market power. I show that MNCs follow pricing-to-market that mirrors the proximity-concentration trade-off, and I characterize how market shares, prices, and markups react to changes in investment and trade frictions. Endogenous variables turn out to be closely interrelated across markets and firms.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 198-220"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marina Diakonova, Corinna Ghirelli, Luis Molina, Javier J. Pérez
{"title":"The economic impact of conflict-related and policy uncertainty shocks: The case of Russia","authors":"Marina Diakonova, Corinna Ghirelli, Luis Molina, Javier J. Pérez","doi":"10.1016/j.inteco.2023.03.002","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.03.002","url":null,"abstract":"<div><p>We show that policy uncertainty and conflict-related shocks impact the dynamics of economic activity (GDP) in Russia. We use alternative indicators of “conflict”, referring to specific aspects of this general concept: geopolitical risk, social unrest, outbreaks of political violence, and escalations into internal armed conflict. For policy uncertainty we employ the workhorse economic policy uncertainty (EPU) indicator. We use two distinct but complementary empirical approaches. The first is based on a time series mixed-frequency forecasting model: we show that the indicators provide useful information for forecasting GDP in the short run, even when controlling for a comprehensive set of standard high-frequency macro-financial variables. The second approach is a SVAR model. We show that negative shocks to the selected indicators yield economic slowdown, with a persistent drop in GDP growth and a short-lived but large increase in country risk.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 69-90"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196353","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Institutional Quality and Financial Development in Resource-Rich Countries: A Nonlinear Panel Data Approach","authors":"David Dosso","doi":"10.1016/j.inteco.2023.03.005","DOIUrl":"https://doi.org/10.1016/j.inteco.2023.03.005","url":null,"abstract":"<div><p>This paper deals with financial development in resource-rich countries with a look at the effect of institutional quality. Using a panel data of 100 countries over the period 1996–2017, we show that natural resources could affect financial development differently according to threshold levels of institutional quality. By estimating a nonlinear panel model with endogenous threshold variable, we find that even if the impact of natural resources on financial development is always negative, the improvement of institutional quality drastically reduces this negative impact by almost 78%, 86% or 96% according to the initial level of institutional quality of the country.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"174 ","pages":"Pages 113-137"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50196365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}