{"title":"Testing for the Bidirectional Relationship Between FDI in Services and Trade in Services: Evidence from Emerging Economies","authors":"P. Jithin, M. S. Babu","doi":"10.1177/00157325221095650","DOIUrl":"https://doi.org/10.1177/00157325221095650","url":null,"abstract":"We examine the two-way links between foreign direct investments (FDI) in services and trade in services for 26 emerging economies from 2003 to 2015 using sectoral and sectoral disaggregated FDI data. Within a multivariate framework, we use panel unit root tests, recently developed heterogeneous panel cointegration and panel vector error correction model (VECM). Our results confirmed the cointegrating relationship between trade in services, FDI in services, financial services FDI and nonfinancial services FDI. We find the existence of long-run unidirectional causality from trade in services to FDI in services. However, the disaggregated analysis shows a bidirectional link between nonfinancial services FDI and trade in services in the short run. Still, there is no causality between financial services FDI and trade in services both in the short run and long run. The result also shows the evidence of unidirectional causality running from trade in services to nonfinancial services FDI in the long run. It implies that sectoral decomposition matters in the FDI–trade nexus in emerging economies. JEL Codes: G20, F14, G20, F23","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"6 1","pages":"412 - 427"},"PeriodicalIF":1.3,"publicationDate":"2022-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78509636","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":"India’s Merchandise Exports to Asia: A Constant Market Share Analysis","authors":"Mohd Fayaz, S. Kaur","doi":"10.1177/00157325211072923","DOIUrl":"https://doi.org/10.1177/00157325211072923","url":null,"abstract":"The present study attempts to examine the structural changes in Indian merchandise exports to Asia during the period 1980–2016 by using Constant Market Share (CMS) analysis. The index values of the CMS analysis suggest that India has mostly maintained and strengthened its export market share primarily in resource-based and low tech/labour-intensive products. Major technology-intensive exports include organic chemicals and dyes and colouring materials to all its export destinations in Asia. The market effect result shows a positive impact on India’s export performance which suggests that India has diversified its exports to South Asia, Southeast Asia and West and Central Asia. However, market adaptation effect result shows negative impact in East Asian market which means that India is lacking in adapting the import structure of this market. JEL Codes: F1, F14, F43, L6, O53","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"139 1","pages":"178 - 197"},"PeriodicalIF":1.3,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76800218","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":"Book review: Pooja Lakhanpal, Jaydeep Mukherjee, Biswajit Nag and Divya Tuteja (Eds.), Trade, Investment and Economic Growth: Issues for India and Emerging Economies","authors":"Shipra Bhatia","doi":"10.1177/00157325221076219","DOIUrl":"https://doi.org/10.1177/00157325221076219","url":null,"abstract":"Pooja Lakhanpal, Jaydeep Mukherjee, Biswajit Nag and Divya Tuteja (Eds.), Trade, Investment and Economic Growth: Issues for India and Emerging Economies, Springer Nature Singapore, 2021, €119, 396 pp. (Hardcover). ISBN: 978-981-33-6972-6.","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"43 10","pages":"221 - 223"},"PeriodicalIF":1.3,"publicationDate":"2022-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72414789","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":"Revisiting the Gravity Model of Migration","authors":"Mohammad Azeem Khan, Z. Fatima, Sumbul Fatima","doi":"10.1177/00157325221088707","DOIUrl":"https://doi.org/10.1177/00157325221088707","url":null,"abstract":"The recent global migration pattern indicates the importance of the movement of people from developing countries to developed countries in search of better economic opportunities. The G20 report of ‘International Migration and Displacement Trends’ mentions India at the top of the list of highly educated emigrants in G20 countries. The current study addresses the endogeneity problem in the migration determinants and attempts to highlight the major regional and economic determinants of migration flow from India to major OECD countries using the Gravity model of migration. We apply the Prais–Winsten regression method to address the cross-sectional correlation, while we apply instrumental variable regression and Hausman–Taylor regression estimation techniques to deal with the endogeneity issue. The findings reveal that the population of India, distance, common official language and per capita income differential are the major determinants of migration from India. In the backdrop of our findings, in terms of per capita income differential, there is a need for an upward revision in the pay scale of the white-collar workers in the organised sector. JEL Codes: C23, F22, J11, J60","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"77 1","pages":"329 - 349"},"PeriodicalIF":1.3,"publicationDate":"2022-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91222636","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":"Non-linear Effect of Real Exchange Rate Variability with Macroeconomic Variable on Non-Petroleum Commodities of India– US Trade","authors":"Mohini Gupta, S. Varshney","doi":"10.1177/00157325221077004","DOIUrl":"https://doi.org/10.1177/00157325221077004","url":null,"abstract":"This article aims to explore the asymmetric influence of real exchange rate volatility on India–US trade commodity-wise. In this study, the assumption of symmetric relation is neglected and assessed on the asymmetric effect of real exchange rate volatility on 90 commodities distributed under 6 industries. This study verifies short-run and long-run asymmetry effects, the short-run effect in 21 Indian exporting commodities and 19 Indian importing commodities. However, the short-run effect lasting onto the long run in 16 exporting commodities and 27 importing commodities strongly supports the J-curve. Also, non-linear causality is witnessed in this study running from real exchange rate variability to export trade and import trade. The empirical analyses explain that commodities will benefit the export or import growth with the depreciation of exchange rate or discouraging with the appreciation of exchange rate. The findings of the study provide a view for policy making. JEL Codes: C22, F1, F14, F31, O19","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"75 9 1","pages":"289 - 328"},"PeriodicalIF":1.3,"publicationDate":"2022-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83433824","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":"Impact of FDI and Its Absorption Capacity on the National Innovation Ecosystems: Evidence from the Largest FDI Recipient Countries of the World","authors":"N. Haq","doi":"10.1177/00157325221077007","DOIUrl":"https://doi.org/10.1177/00157325221077007","url":null,"abstract":"Foreign direct investment (FDI) improves economic growth by stimulating native investment, facilitating technology transfers in the recipient country and increasing human capital development, thus playing a vital role in economic development. On the other hand, innovation is also considered one of the major drivers for the economic growth of a country. This study empirically investigates the impact of FDI and its absorption capacity on the national innovation system of the world’s top five largest FDI recipient countries for the period of 1990–2016. Using two-stage analysis (DEA and Tobit regression), we found that research and development expenditures, researchers in the host country and the number of patents, trademark and industrial design applications are positive drivers of the national innovation systems. Moreover, the FDI inflows positively impact the innovation efficiency in the host countries. However, the strength of this relationship depends on the availability of the absorption capacity of FDI in the host country. The result shows that the global financial crisis and inflation negatively impact the FDI inflows and innovation efficiency in the sample countries. It concludes that FDI inflows and the country’s strength of domestic absorption capacity are essential drivers for developing national innovation ecosystems. JEL Codes: F1, F4, G10, M21","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"35 1","pages":"259 - 288"},"PeriodicalIF":1.3,"publicationDate":"2022-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81742512","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 Role of Technology in Increasing Competitiveness: An Examination of the Indian Garment Clusters","authors":"Saon Ray, Smita Miglani","doi":"10.1177/00157325211073848","DOIUrl":"https://doi.org/10.1177/00157325211073848","url":null,"abstract":"In this article, we examine the Indian garment industry to examine the effect of clusters on the sales of this industry. The data has been collected through a primary survey in five garments clusters in India. The variable that is significant in explaining sales in most equations is technology proxied by imported machinery. It has been argued that inter-firm linkages and linkages between firms, service providers and institutions are crucial for competitiveness and this is best achieved through a cluster. Studies on clusters have shown that some clusters have been able to deepen their inter-firm division of labour, raise their competitiveness and break into international markets. The development of the cluster in India has followed the ‘top-down’ approach and the natural process through which linkages are developed are yet to occur in most clusters. JEL Codes: F14, L67, L23","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"16 1","pages":"408 - 428"},"PeriodicalIF":1.3,"publicationDate":"2022-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89537548","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":"Book review: Sheela Rai and Jane Winn (Eds.), Trade Facilitation and the WTO","authors":"D. Chakraborty","doi":"10.1177/00157325211053904","DOIUrl":"https://doi.org/10.1177/00157325211053904","url":null,"abstract":"Sheela Rai and Jane Winn (Eds.), Trade Facilitation and the WTO. Cambridge Scholars Publishing, 2019, GBP 61.99, 270 pp. (Hardback). ISBN 978-1-5275-3402-5.","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"43 1","pages":"114 - 116"},"PeriodicalIF":1.3,"publicationDate":"2022-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91344570","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 Determinants of Vietnam’s Information and Communication Technologies Exports to the European Union","authors":"Phan Thanh Hoan, Duong Thi Dieu My","doi":"10.1177/00157325211057977","DOIUrl":"https://doi.org/10.1177/00157325211057977","url":null,"abstract":"Vietnam is one of the top information and communication technologies (ICT) exporters globally, and the ICT products constitute nearly one-fifth of Vietnam’s total exports to the European Union (EU). This study empirically investigates the determinants of Vietnam’s ICT exports to the EU by applying the gravity model for trade with panel data from 2000 to 2019. Besides the traditional variables of the gravity model, we added gross capital formation, patent application and exchange rates as explanatory variables. The results show that among factors affecting Vietnam’s ICT export to the EU, market size, patent applications, and exchange rate are the most significant determinants. The article also suggests some policy implications for the development of ICT exports between the two parties. JEL Codes: F14, C2","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"118 1","pages":"148 - 159"},"PeriodicalIF":1.3,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77420555","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 Effect of COVID-19 Pandemic on the Global Supply Chain Operations: A System Dynamics Approach","authors":"M. H. Heidary","doi":"10.1177/00157325211060932","DOIUrl":"https://doi.org/10.1177/00157325211060932","url":null,"abstract":"Epidemic outbreaks are one of the important sources of the risk in the global supply chains. Before the COVID-19 pandemic, global industries that were unprepared for disruptions experienced a decline due to the pandemic. A global supply chain is a complex system set of dynamics that could be analyzed by the system dynamics approach. In this article, the impact of the recent pandemic on the global supply chain is simulated in different scenarios. A system dynamic model is developed to carry out the simulations. In order to consider the impact of the pandemic on the exogenous and endogenous variables, a force majeure factor is defined in the model. Global features considered in this article are the export and import operations, the exchange rate and the rate of tariff. In this article, a scenario analysis is performed to analyze two important factors of the global supply chain: force majeure factor and delivery delay. Results showed that improving the flexibility of production capacity is one of the important strategies that global supply chain managers should pursue. JEL Codes: F23, P45, C15, C63, E37, F17","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":"356 1","pages":"198 - 220"},"PeriodicalIF":1.3,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75727876","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}