scholarly journals The influence of regional preferential trade agreements on international manufacturing trade in value-added: Based on the complex network method

PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0246250
Author(s):  
Bo Wang ◽  
Yue Pu ◽  
Shunli Li ◽  
Lin Xu
Keyword(s):  
Complex Network ◽  
Value Chain ◽  
Value Added ◽  
Trade Agreement ◽  
Asia Pacific ◽  
Trade Network ◽  
Preferential Trade ◽  
Trade Networks ◽  
Manufacturing Trade ◽  
Trade In Value Added

Based on a new trade accounting method—the trade in value-added accounting method—this paper constructs the international manufacturing trade in value-added networks and preferential trade agreement (PTA) networks and uses the complex network analysis method to explore the relations between PTA and international manufacturing trade in value-added from the perspective of the global value chain. The results are as follows: (1) Over the years, the international manufacturing trade in value-added networks and PTA networks has shown a significant clustering effect, and the size of networks has grown rapidly. (2) The TEX, DVA and FVA networks of the international manufacturing value added trade over the years can be divided into two societies in the Asia-Pacific region and the European region. This division just reflects the different modes of division of labor in the manufacturing value chain of the two major economic regions in the world. (3) QAP analysis shows that the influencing factors of the traditional gravity model can still explain the manufacturing trade network and its value-added trade network, while the influence of economic globalization, the enlargement of the EU and the internationalization strategy of enterprises, the PTA network and manufacturing value-added the relationship between trade networks changed from positive to negative in 2004.

Russia–ASEAN: Trade and Global Value Chains

2015 ◽  
pp. 25-39
Author(s):  
K. Muradov
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Trade Data ◽  
Traded Goods ◽  
Trade In Value Added

Traditional trade statistics that originate in customs records is inadequate to measure the complex interdependencies in today’s globalized economy, or what is known as the global value chains. The article focuses on Russia–ASEAN trade. The author applies innovative methods of measuring trade in value added terms in order to capture the unobserved bilateral linkages behind the officially recorded trade flows. First, customs and balance of payments sources of bilateral trade data are briefly reviewed. For user, there are at least two inherent problems in those data: the inconsistencies in “mirror” trade flows and the attribution of the origin of a traded product wholly to the exporting country. This results in large discrepancies between Russian and ASEAN “mirror” trade data and, arguably, their low importance as each other’s trade partners. Next, the author explores new data from inter-country input-output tables that necessarily reconcile bilateral differences and offer greater detail about the national and sectoral origin or destination of traded goods and services. Relevant data are derived from the OECD-WTO TiVA database and are rearranged to obtain various estimates of Russia–ASEAN trade in value added in 2009. The main finding is that sizable amount of the value added of Russian origin is embodied in third countries’ exports to ASEAN members and ASEAN members’ exports to third countries. As a result, the cumulative flow of Russia’s value added to ASEAN members is estimated to be 62% larger than the direct gross exports, whereas for China and South Korea it is, respectively, 21% and 23% smaller. The indirect, unobserved value added flows can be largely explained by the use of Russian energy resources, chemicals and metals as imported inputs in third countries (China, South Korea) and ASEAN members’ own production. The contribution of these inputs is then accumulated along the value chain. Finally, the most important sectoral value chains are visualized for readers’ convenience. So far, it’s apparent that Russia is linked to ASEAN countries through intricate production networks and indirectly contributes to their trade with third countries.

scholarly journals Trade Agreements and Services Value Chain: The Case of India and Thailand

2016 ◽  
Vol 3 (1) ◽  
pp. 11
Author(s):  
Tanu M. Goyal ◽  
Arpita Mukherjee
Keyword(s):  
Southeast Asia ◽  
Value Chain ◽  
Market Access ◽  
Value Added ◽  
Secondary Data ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Global Value Chain ◽  
Production Networks ◽  
South And Southeast Asia

Services sector is an important component of the world trade and production networks. With the opening up of world economy, the role of services in the global value chain and value added has expanded. Services liberalisation is becoming a crucial component of free trade agreements. This is particularly true for trade agreements between South and Southeast Asia. Given this background, the objective of this paper is to understand the scope of establishing services value chain between two countries in South and Southeast Asia - namely India and Thailand - by integrating the two markets through trade agreement. The analysis is based on secondary data, in-depth interviews with policy makers and stakeholders in India and Thailand and an examination of the existing trade agreements of the two countries. The paper found that the present level of integration between the two markets is low due to the existence of market access barriers and regulatory bottlenecks. The paper makes recommendation on how the two countries can reduce barriers to trade in services, thereby fostering greater integration and leveraging the development of a global value chain.

scholarly journals A Topological Analysis of Trade Distance: Evidence from the Gravity Model and Complex Flow Networks

2020 ◽  
Vol 12 (9) ◽  
pp. 3511
Author(s):  
Zongning Wu ◽  
Hongbo Cai ◽  
Ruining Zhao ◽  
Ying Fan ◽  
Zengru Di ◽  
...  
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Value Chain ◽  
Econometric Model ◽  
Proper Time ◽  
Topological Analysis ◽  
Trade Flow ◽  
Trade Network ◽  
Trade Networks ◽  
International Trade Network

As a classical trade model, the gravity model plays an important role in the trade policy-making process. However, the effect of physical distance fails to capture the effects of globalization and even ignores the multilateral resistance of trade. Here, we propose a general model describing the effective distance of trade according to multilateral trade paths information and the structure of the trade flow network. Quantifying effective trade distance aims to identify the hidden resistance information from trade networks data, and then describe trade barriers. The results show that flow distance, hybrid by multi-path constraint, and international trade network contribute to the forecasting of trade flows. Meanwhile, we also analyze the role of flow distance in international trade from two perspectives of network science and econometric model. At the econometric model level, flow distance can collapse to the predicting results of geographic distance in the proper time lagging variable, which can also reflect that flow distance contains geographical factors. At the international trade network level, community structure detection by flow distances and flow space embedding instructed that the formation of international trade networks is the tradeoff of international specialization in the trade value chain and geographical aggregation. The methodology and results can be generalized to the study of all kinds of product trade systems.

‘New-Age’ Preferential Trade Agreements and Global Value Chains: An Empirical Analysis

2021 ◽  
pp. 097215092110068
Author(s):  
Kalpana Tokas
Keyword(s):  
Fixed Effects ◽  
Value Added ◽  
Trade Agreements ◽  
New Age ◽  
Preferential Trade Agreements ◽  
Intermediate Goods ◽  
Data Set ◽  
Preferential Trade ◽  
The Impact ◽  
Trade In Value Added

This article analyses the impact of the ‘depth’ of new-age preferential trade agreements (PTAs) signed by nations on value-added trade as well as trade in final and intermediate goods carried out between them. This objective of this article goes beyond the black-boxing of a PTA through a dummy and aims to focus on the ‘depth’ of a PTA as measured by its provisions and content. For this purpose, we construct an intensive panel data set. The data set spans across 6 years (3-year intervals across 2000–2015) and is constructed on a dyadic (country pair) level for 61 countries and 110 PTAs across the world, using the Trade in Valued Added (TiVA) Database from Organisation for Economic Co-operation and Development (OECD) and Content of Deep Trade Agreements database from World Bank. Further, we construct two indices for measuring the ‘depth’ of the PTAs based on their content. Our study uses augmented gravity equation with three-way fixed effects, namely country pair, exporter time and importer time, for estimating the results. Our results indicate that the ‘depth’ of a PTA significantly affects trade in final goods, intermediate goods and value-added trade, and the impact is highest for trade in value added. We also observe that PTA with greater number of provisions has a higher impact on trade in final goods, intermediate goods as well as trade in value added.

Taiwan–ASEAN Trade Relations: Trade Structure and Trade in Value Added

China Report ◽  
2019 ◽  
Vol 55 (2) ◽  
pp. 102-124 ◽  
Author(s):  
Truong Quang Hoan ◽  
Dong Van Chung ◽  
Nguyen Huy Hoang
Keyword(s):  
Bilateral Trade ◽  
Value Added ◽  
Trade Agreement ◽  
Economic Benefits ◽  
Classification Systems ◽  
Production Networks ◽  
Trade Expansion ◽  
Trade Relations ◽  
Northeast Asian ◽  
Trade In Value Added

How has the Taiwan–Association of Southeast Asian Nations (ASEAN) trade evolved without having official diplomatic relations? Using several international commodity classification systems and trade pattern indices, we argue that despite political constraints, Taiwan–ASEAN trade has rapidly expanded with a significant concentration on manufacturing and intermediate goods, embodied with high-technological content. Also, by employing the Organisation of Economic Co-operation and Development’s (OECD) database on trade in value added (TiVA), we assess that Taiwan and ASEAN have become important partners in terms of trade in value addition. Nevertheless, Taiwan is seemingly lagging behind Northeast Asian economies in strengthening linkages with ASEAN over regional production networks and TiVA. This possibly results from the absence of a bilateral preferential trade agreement between Taiwan and ASEAN so far. Given the low possibility of reaching such an agreement in the near future, it is suggested that Taiwan and ASEAN should employ dynamic approaches to reap greater bilateral trade expansion and other economic benefits.

scholarly journals Structure Characteristics and Influencing Factors of Cross-Border Electricity Trade: A Complex Network Perspective

2021 ◽  
Vol 13 (11) ◽  
pp. 5797
Author(s):  
Yue Pu ◽  
Yunting Li ◽  
Yingzi Wang
Keyword(s):  
Complex Network ◽  
Industrial Structure ◽  
Structural Characteristics ◽  
Supply And Demand ◽  
Trade Network ◽  
Trade Networks ◽  
Cross Border ◽  
Electricity Trade ◽  
Border Trade ◽  
The Common

Electricity is one of the most widely used forms of energy. However, environmental pollution from electricity generation and the mismatch between electricity supply and demand have long been bothering economies across the world. Under this background, cross-border electricity trade provides a new direction for sustainable development. Based on the complex network approach, this paper aims to explore the structural characteristics and evolution of cross-border electricity trade networks and to figure out the factors influencing the formation of the network by using the more advanced network analysis method—ERGM. The results show that: (1) The scale of the electricity trade network is expanding, but there are still many economies not involved. (2) The centrality of the network shifts from west to east. The level of internal electricity interconnection is high in Europe, and Asian countries’ coordination role in cross-border electricity trade networks is enhanced. (3) Cross-border electricity trade helps to reduce CO2 emissions, achieve renewable energy transformation, and reduce power supply and demand mismatch. Large gaps in GDP, electricity prices, industrial structure, geographical distance and institutional distance between economies are not conducive to form the cross-border trade network, while the common language is on the contrary.

Innovation and Competitiveness in Mining Value Chains in Latin America

2021 ◽  
Author(s):  
Silvia Nenci ◽  
Francesco Quatraro
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Mining Sector ◽  
Scientific Publications ◽  
Related Services ◽  
The Past ◽  
Trade In Value Added

This paper provides an international overview of the mining global value chain (GVC) and its most recent transformations and trends, focusing on Argentina, Brazil, and Peru. The study uses international trade data and patent and scientific publications data. By using trade in value added, we first investigate the role of those countries in the international mining trade, and their specialization, participation, and position in the mining GVC for the period 2005-15. The analysis is carried out for both mining products and mining-related services, and also looks at the contribution of services to mining exports. Second, we analyze the evolution of innovative activity and the direction of technological change in the mining sector over the past 40 years by looking at patent applications, both internationally and with attention to the three target countries. We also provide an overview of, and some insights on, knowledge flow in the mining sector based on scientific production.

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