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Showing 8 results for International Trade
Mahmoud Haerian Ardakani,
Volume 8, Issue 1 (4-2008)
Volume 8, Issue 1 (4-2008)
Abstract
ECO is one of the relatively successful regional trade associations over the world and Iran is also an active member since it has been founded. After collapse of the Soviet :union:, a group of new independent Moslem countries along with Afghanistan has joined the ECO. Since Russia and China have strong economy and located in the ECO member regoin, this study examines the effects of joining these two countries in the ECO. Based on the econometric estimates of gravity models, in the first model in which the common border among countries under study is not considered, the joining of Russia will increase the volume of trade among the countries compared to the current situation. In the second model in which the common border is considered, the greatest trade will be achived when both countries, Russia and China, join the ECO. Based on the findings of three different models, if Russia and China join individualy, the average increase in the capcity of trade among the ECO members will be 74.0, 67.4, and 42.1 percentage.
Volume 10, Issue 1 (4-2006)
Abstract
With the beginning of the third millennium and the passage of about 300 years since the Industrial Revolution, the scope of operation and competition in the business enterprises has increased to a global level. Automotive industry of Iran with more than 40 years of domestic operation and allocating 2.5%of GNP, 20% value added in Industrial Sector and 2.5% of total investment in the country has not yet achieved an outstanding position in the world markets. So to prevent unfavorable (but possible) challenges in the future, it seems necessary to assess the international competition potential of this industry according to a contingent strategic model. Reviewing the current international trade theories and internationalization models of firms indicates that most of these theories and models are developed based on fundamental assumptions governing the open market in developed countries. In addition, most of these models have evolved by the post studies on the large scale multinational corporations after their internationalization process. The most important point is that each of these theories and models studied the internationalization process from a specific level of analysis (firm, industry, country, international environment). So none of these models individually and completely can be generalized to address a suitable solution for those firms operating in developing countries and struggling to enter the international markets. The main purpose of this paper is proposing a contingent international market entry model for firms operating in developing countries (like Automotive Industry of Iran) through integrating the different points of view. The model contains four levels of analysis (firm, local industry structure, national competitive policies, and firms’ international relationship with global ones). It integrates and examines the role and effects of four interdependent variables (firm characteristics, local industry structure, national policies and firms’ international relationships) shaping the strategic capabilities and competencies, which are necessary for entering the international market (as the outcome /dependent variable). The model was examined in the Iranian Automotive Industry. It indicates how the international market entry competency of a firm in developing countries is affected by it’s core competencies, synergy of local industry structure, synergy of national competitive advantage, and collaborative advantage and complimentary effect originated from international relationship between the firm and the global market.
Shahriar Nessabian, Saleh Ghavidel, Mehdi Fathabadi,
Volume 11, Issue 3 (10-2011)
Volume 11, Issue 3 (10-2011)
Abstract
Using Haskel theory, in this paper the main factors of change in wage ratios of agricultural and non-agricultural labor force are explored. Theoretically, the wage gap between these two sectors is explained by the gap between price and the one between TFP of these two sectors. In recent years, the wage gap between the two sectors has been decreasing in Iran. The international trade model (Haskel model) has been used in this paper and the results reveal that the major factor contributing to wage gap is the price one. The TFP is considered insignificant for wage gap. Mainly, the reason for increasing agricultural product index price, compared to that of non-agricultural index price has been government protection of agricultural products during these years.
Volume 17, Issue 2 (9-2013)
Abstract
From a legal viewpoint, although the standby letter of credit is used in a form similar to the commercial letter of credit, but this type of letter of credit is issued in order to perform the obligation of underlying contract, not to exchange goods. Indeed, the standby letter of credit, like bank guarantee, supports the beneficiary when the obligation of underlying contract is not performed completely, whereas the commercial letter of credit acts as a mechanism to ensure the payment of price to the beneficiary. This article tries to explain the documentary and security characteristics of the standby letter of credit in order to determine: "Whether it has truly documentary feature like the commercial letter of credit?" and "whether it acts as an exceptional and secondary instrument of payment both in form and intent like guarantees? "
Volume 22, Issue 3 (11-2018)
Abstract
Free trade is a concept that has been attempted to formulate international documents with a definite and binding definition. International commercial documents are agreements that seek to establish multilateral relations at the global and regional level. The best multilateral international trade document is currently the WTO. The provisions of this organization as well as the provisions of GATT 1947is very important to recognition of the headquarters of international trade. The environment and its protection, although not specifically covered by an agreement In the WTO system But considering it as an important exception in free trade Which is evaluated in most of the paragraphs "b and e" of Article 20 of the GATT. In addition, the trade agreements of the World Trade Organization Including the TRIPS, Gats, the Agricultural Agreement, the Technical Barriers to Trade Agreement, Agreement on Health Measures and Plant Health have specific regulations for protecting the environment and non-renewable resources. In regional trademarks such as the EU, The NAFTA and Mercosur Regulations also support the environment and sustainable development are the main goals of the custodians of those documents. This article describes the status of the environment in Both global and regional commercial documents and analyzes The strengths and weaknesses of these documents in the direction of respect for excellence acting on environmental regulations and standards in trade.
Dr Hossein Asgharpur, Mr Saman Hatamrad, Mrs Zahra Mousavipour, Mr Mansour Heydari, Dr Jaafar Haghighat,
Volume 24, Issue 1 (3-2024)
Volume 24, Issue 1 (3-2024)
Abstract
Introduction
Iran's economy as an oil exporting country is highly dependent on intermediate and imported products. The volume of foreign trade plays a significant role in changes in economic growth and inflation rate. The trend of trade volume in Iran's economy indicates that various shocks have always been imposed on the economy. These shocks are significant from two perspectives. The first is that the size of the trade shocks was not the same, for example, in some cases, a positive shock was imposed on the economy due to the increase in oil revenues, while at other times, Iran's economy has experienced a negative shock due to various sanctions. The second important matter is that the intensity of trade shocks has been different in different time periods. Meanwhile, oil revenues have recorded significant figures between 2005 and 2013, but Iran has experienced a negative shock due to economic sanctions. Macroeconomics literature has indicated that the way of determining the exchange rate has an undeniable effect on the economy. The most important feature of the exchange rate in relation to trade openness and macroeconomic variables is the management of external shocks. Absorption of external shocks of flexible exchange regimes means that, when the real exchange rate or relative prices change with the external shock, automatic changes in the nominal exchange rate and flexible regimes make the necessary changes in the real exchange rate. Therefore, the effects of external shocks caused by the high volume of foreign trade can be reduced by a flexible exchange regime. In the system of flexible regimes, the negative shock causes the domestic demand and the sales of companies to decrease due to the increase in the exchange rate. In an open economy with a large number of producers, competitiveness increases and leads to the approximate compensation of the effect of the decrease in the domestic demand of the country. Therefore, in an open economy, flexible regimes absorb more shocks than fixed regimes. Conversely, in a closed economy where non-tradable goods dominate, fixed exchange rate regimes are better. Because they don't pay real depreciation rent. These concepts show that in relatively open countries, flexible regimes work better as a shock absorber and lead to better economic stability, and when the degree of trade volume is small, a fixed exchange regime leads to greater financial and economic stability. This study deals with the importance of the exchange rate channel in influencing the volume of foreign trade on Iran's economic growth and inflation.
Methodology
Iran's political and economic conditions have led to the imposition of several structural failures on the country's economy, and failure to pay attention to these conditions can lead to incorrect conclusions about Iran's economic facts. Therefore, due to changes in conditions, structural failures and cyclical changes in time series, it is better to use a model that can take these facts into account. TVP model can provide an estimate for each year by identifying the conditions of each period. The obtained coefficient, while specifying the positive and negative effects of the explanatory parameters on the dependent variable, also shows the intensity of the coefficients.
Results and Discussion
In this research, the role of exchange rate changes in influencing the volume of foreign trade on Iran's economic growth and inflation has been investigated. A TVP-VAR time series model is estimated for the period 1972-2021. The results show that with an increase in the volume of trade, if the exchange rate increases, the economic growth increases and the inflation rate decreases.
While with the increase in the volume of trade, if the suppression of the exchange rate is on the agenda, the inflation will increase sharply and the economic growth will decrease
Conclusion
According to the inverse effect of trade on inflation and the direct relationship between the exchange rate and inflation, it is recommended to expand the volume of foreign trade and control the exchange rate in order to curb the inflation rate. Also, with the knowledge of the positive role of the managed floating exchange regime in influencing trade on economic growth and the negative role of the suppressed exchange regime in influencing it, it is recommended to avoid the fixed exchange regime as much as possible.
Dr Mostafa Heidari Haratemeh,
Volume 24, Issue 3 (9-2024)
Volume 24, Issue 3 (9-2024)
Abstract
Introduction
In international trade network, countries are classified into different societies. These societies are formed based on commercial relations. Countries that are in the same society have close trade relations, while countries that are in different societies have much weaker trade relations, which shows that classification phenomenon has a meaningful effect on the field of international trade of resources. These societies also significantly promote free trade and improve commercial security and create favorable business conditions. For countries that rely heavily on foreign resources, establishing trade zones or joining a trade zone for their long-term development is of paramount importance. The division of societies in the trade network is based on geographical location or gross domestic product, not regional trade agreements. Some researchers have investigated the evolutionary characteristics of societies and analyzed the sustainability of international trade. In addition, some researchers argue that societies increase their commercial power by stabilizing the flow of resources in international trade, and their international position improves through cooperation with other countries. Several studies have provided a lot of knowledge about the society and the structural features of the international trade network, but few studies have dealt with the formation of trade areas and what promotes the formation of a trade area. The formation of trade communities/regions can be a strategy to reduce restrictions and increase trade interactions and its security through close communication between countries. Therefore, the current study can become more necessary in the situation where the current international business cooperation has become more and more important. Therefore, two main questions arise that need to be answered: 1) How are business areas formed, and 2) What factors influence the formation of business areas? Based on the studies, resource dependence theory and complex network theory can explain these questions well. Resource dependence theory states that if a firm is highly dependent on the target market, then it will be constrained by the actors in that market. Complex network theory is also a useful tool for systematically analyzing interactions between countries, especially when there are many countries involved and strong links between them exists. The purpose in fact was to investigate and recognize the influence of the resource dependence theory and the complex network theory in the formation of international trade areas in line with the integration of global economy.
Methodology
The data were extracted from the 22 countries active in international trade and based on the availability of the data of the official COMTRADE database of the United Nations in the period of 2011-2021. They account for the entire international trade. In order to analyze the data and estimate the models, negative binomial regression was used because when there are countable and discrete data as the response variable, simple linear regression is not a suitable fitting method. So, Poisson regression was applied, which is considered a method in "generalized linear models" where the probability function for the "response variable" is considered to be "Poisson distribution" and suitable for count data.
Findings
The trade partner factor has a positive effect on the formation of international trade communities, that is, when a country cooperates with a large number of trade partners or has a superior position in the international trade network, it is more likely that other countries will form the same pattern. Therefore, when a country considers itself dependent on the resources of other countries, the possibility of forming a similar society will increase. Finally, network position plays a positive role in moderating the relationship between resource dependence and international trade areas.
Discussion and Conclusion
Based on resource dependence and complex network theory, and analyzing the decisive factors affecting the accession process of a country to the same trade zones, the dependence of the country's imports on the external environment is an integral factor in joining a country to the same trade zones. In fact, in choosing partners for the formation of commercial zones, countries attach great importance to the ability to provide resources of commercial partners. On the other hand, position of the network plays a positive role in the formation of a business community. Countries with a higher network position can not only access resources or reach the target market faster, but also have more control over the flow of resources. Therefore, it is more likely that countries will establish closer trade relations with countries that have a higher network position in order to increase their economic power. The more central a country's network position is, the easier it is to choose to join larger trade areas with other countries. Also, according to the resource dependence theory, the more central a country's network position is, the more likely it is to join the same trade areas as other countries. Network and resource considerations both simultaneously play a role in the strategic choice of national trade. In the case of countries that have the same resource abundance, a country can choose to form the same society as countries that have a more central network position. Finally, due to the development of export markets for domestic products, countries are easily affected by the network position. This will enable them to choose other countries that are in a more central network position to form the same society, rather than trying to trade among them. Based on the economic freedom factor and the diversity of the importing country, countries that can strengthen resource trade, can reduce or manage their dependence on other countries. In addition, they can balance the inventory and production of global resources.
In international trade network, countries are classified into different societies. These societies are formed based on commercial relations. Countries that are in the same society have close trade relations, while countries that are in different societies have much weaker trade relations, which shows that classification phenomenon has a meaningful effect on the field of international trade of resources. These societies also significantly promote free trade and improve commercial security and create favorable business conditions. For countries that rely heavily on foreign resources, establishing trade zones or joining a trade zone for their long-term development is of paramount importance. The division of societies in the trade network is based on geographical location or gross domestic product, not regional trade agreements. Some researchers have investigated the evolutionary characteristics of societies and analyzed the sustainability of international trade. In addition, some researchers argue that societies increase their commercial power by stabilizing the flow of resources in international trade, and their international position improves through cooperation with other countries. Several studies have provided a lot of knowledge about the society and the structural features of the international trade network, but few studies have dealt with the formation of trade areas and what promotes the formation of a trade area. The formation of trade communities/regions can be a strategy to reduce restrictions and increase trade interactions and its security through close communication between countries. Therefore, the current study can become more necessary in the situation where the current international business cooperation has become more and more important. Therefore, two main questions arise that need to be answered: 1) How are business areas formed, and 2) What factors influence the formation of business areas? Based on the studies, resource dependence theory and complex network theory can explain these questions well. Resource dependence theory states that if a firm is highly dependent on the target market, then it will be constrained by the actors in that market. Complex network theory is also a useful tool for systematically analyzing interactions between countries, especially when there are many countries involved and strong links between them exists. The purpose in fact was to investigate and recognize the influence of the resource dependence theory and the complex network theory in the formation of international trade areas in line with the integration of global economy.
Methodology
The data were extracted from the 22 countries active in international trade and based on the availability of the data of the official COMTRADE database of the United Nations in the period of 2011-2021. They account for the entire international trade. In order to analyze the data and estimate the models, negative binomial regression was used because when there are countable and discrete data as the response variable, simple linear regression is not a suitable fitting method. So, Poisson regression was applied, which is considered a method in "generalized linear models" where the probability function for the "response variable" is considered to be "Poisson distribution" and suitable for count data.
Findings
The trade partner factor has a positive effect on the formation of international trade communities, that is, when a country cooperates with a large number of trade partners or has a superior position in the international trade network, it is more likely that other countries will form the same pattern. Therefore, when a country considers itself dependent on the resources of other countries, the possibility of forming a similar society will increase. Finally, network position plays a positive role in moderating the relationship between resource dependence and international trade areas.
Discussion and Conclusion
Based on resource dependence and complex network theory, and analyzing the decisive factors affecting the accession process of a country to the same trade zones, the dependence of the country's imports on the external environment is an integral factor in joining a country to the same trade zones. In fact, in choosing partners for the formation of commercial zones, countries attach great importance to the ability to provide resources of commercial partners. On the other hand, position of the network plays a positive role in the formation of a business community. Countries with a higher network position can not only access resources or reach the target market faster, but also have more control over the flow of resources. Therefore, it is more likely that countries will establish closer trade relations with countries that have a higher network position in order to increase their economic power. The more central a country's network position is, the easier it is to choose to join larger trade areas with other countries. Also, according to the resource dependence theory, the more central a country's network position is, the more likely it is to join the same trade areas as other countries. Network and resource considerations both simultaneously play a role in the strategic choice of national trade. In the case of countries that have the same resource abundance, a country can choose to form the same society as countries that have a more central network position. Finally, due to the development of export markets for domestic products, countries are easily affected by the network position. This will enable them to choose other countries that are in a more central network position to form the same society, rather than trying to trade among them. Based on the economic freedom factor and the diversity of the importing country, countries that can strengthen resource trade, can reduce or manage their dependence on other countries. In addition, they can balance the inventory and production of global resources.
Mr Mehrnoosh Patimar, Dr Zahra Zamani,
Volume 24, Issue 4 (12-2024)
Volume 24, Issue 4 (12-2024)
Abstract
Aim and Introduction
Trade is one of the most important factors for the economic progress of countries, which has become feasible with the globalization of business. In addition, the significant increase in energy consumption after the industrial revolution, aimed at improving the quality of human life, has led to increasing environmental degradation worldwide. Although economic growth is one of the main goals of countries, developed economies are more concerned about its environmental consequences. Unfortunately, it seems that developing countries often overlook environmental protection in their pursuit of desired economic growth.
Green technology is a form of technology that aims to minimize the environmental damage caused by energy consumption by increasing energy efficiency. Examples of this technology include renewable energy sources, energy efficiency measures, waste management, environmental monitoring systems, and electric vehicles, all of which contribute to significantly improving the quality of environment. Green technology and its positive consequences serve as a turning point for mitigating environmental damage and, most importantly, preventing further harm. It has proven to be highly effective and requires the collective efforts of all countries to achieve their economic goals while preserving and expanding their trade relationships, ultimately bringing their technological levels closer together.
Methodology
This research aims to investigate the technology gap and green technology and its effects on international trade between developed countries (Japan, South Korea, France, Germany, the United States, China) and developing countries (Iran, Turkey, Azerbaijan, Tajikistan, Pakistan, Kazakhstan, Kyrgyzstan, Uzbekistan). The study utilizes the gravity model and STATA software, analyzing the coefficients obtained from this model to examine how green technology development can have a positive impact on both environment and business. The data used in this analysis spans during 2008 - 2019 and is sourced from UNCTAD and WORLD BANK.
Findings
Based on the estimated results of this study, it has been determined that in developing countries, Gross Domestic Product (GDP) of the first country had a significant and positive impact on their trade. Therefore, a 1% increase in their GDP leads to an 0.84% increase in their trade. On the other hand, the impact of GDP for the second country is positive but not significant.
Furthermore, in developed countries, a positive and significant effect of Gross Domestic Product (GDP) on international trade is observed. A 1% increase in GDP for this group of countries leads to a 13.1% increase in trade for the first country and a 9.4% increase for the second country. Therefore, it can be concluded that an increase in production capacity creates greater capabilities for both groups of countries to enhance exports and trade.
The geographical distance has a significant negative impact on trade in both groups of selected countries. Therefore, a 1% increase in geographical distance leads to a 0.3% decrease in trade for developed countries and a 0.5% decrease in trade for developing countries. As a result, countries tend to prefer trading with their neighboring and geographically closer countries due to economic advantages, especially in transportation sector.
Technology gap has significant negative implications for developed countries and significant positive implications for developing countries. This means that with a one percent increase in technology gap between these countries, the trade of developing countries increases by 0.45 percent and the trade of developed countries decreases by 0.19 percent. Technology gap is considered a trade barrier in developed countries, while it is seen as an advantage in developing countries.
The impact of green technology is positive and significant in both selected groups of countries. One percent increase in green technology transformation results in a 0.91 percent and 1.91 percent increase in trade for developed and developing countries, respectively. This indicates that the adoption of green technology not only does not hinder international trade but can also strengthen trade relations in the green pathway.
Discussion and Conclusion
Transformation of green technology has had a significant and positive impact on trade for both groups of selected countries. This indicates that green technology has found a suitable position in advancing international trade for these countries.
Considering that green technology has a significant impact on development issues and the importance of preserving a clean and sustainable environment for future generations, as well as in line with the findings of this research, governments and societies should invest more in greener and more complex sectors. They should enhance their technical skills and develop the necessary technological infrastructure for the growth of green industries. Additionally, the international community should expand the support for emerging green industries in developing economies by strengthening global trade regulations, particularly through increased efforts by developing countries to acquire this technology.
According to the results obtained, the impact of technology gap on international trade among developing countries is positive and significant. This means that as the technology distance increases, bilateral trade between these countries also increases. Therefore, the mentioned countries, due to their lower level of technology, have a strong inclination to import technology and engage in trade with each other.
Based on the findings of this research, which identifies the technology gap as a stimulating and influential factor in increasing trade among these groups of countries, it is suggested to prioritize the advancement of technology for all countries. It is recommended to maintain a certain level of technology gap in developing countries while simultaneously pursuing alternative policies to harness its positive impact on trade
Trade is one of the most important factors for the economic progress of countries, which has become feasible with the globalization of business. In addition, the significant increase in energy consumption after the industrial revolution, aimed at improving the quality of human life, has led to increasing environmental degradation worldwide. Although economic growth is one of the main goals of countries, developed economies are more concerned about its environmental consequences. Unfortunately, it seems that developing countries often overlook environmental protection in their pursuit of desired economic growth.
Green technology is a form of technology that aims to minimize the environmental damage caused by energy consumption by increasing energy efficiency. Examples of this technology include renewable energy sources, energy efficiency measures, waste management, environmental monitoring systems, and electric vehicles, all of which contribute to significantly improving the quality of environment. Green technology and its positive consequences serve as a turning point for mitigating environmental damage and, most importantly, preventing further harm. It has proven to be highly effective and requires the collective efforts of all countries to achieve their economic goals while preserving and expanding their trade relationships, ultimately bringing their technological levels closer together.
Methodology
This research aims to investigate the technology gap and green technology and its effects on international trade between developed countries (Japan, South Korea, France, Germany, the United States, China) and developing countries (Iran, Turkey, Azerbaijan, Tajikistan, Pakistan, Kazakhstan, Kyrgyzstan, Uzbekistan). The study utilizes the gravity model and STATA software, analyzing the coefficients obtained from this model to examine how green technology development can have a positive impact on both environment and business. The data used in this analysis spans during 2008 - 2019 and is sourced from UNCTAD and WORLD BANK.
Findings
Based on the estimated results of this study, it has been determined that in developing countries, Gross Domestic Product (GDP) of the first country had a significant and positive impact on their trade. Therefore, a 1% increase in their GDP leads to an 0.84% increase in their trade. On the other hand, the impact of GDP for the second country is positive but not significant.
Furthermore, in developed countries, a positive and significant effect of Gross Domestic Product (GDP) on international trade is observed. A 1% increase in GDP for this group of countries leads to a 13.1% increase in trade for the first country and a 9.4% increase for the second country. Therefore, it can be concluded that an increase in production capacity creates greater capabilities for both groups of countries to enhance exports and trade.
The geographical distance has a significant negative impact on trade in both groups of selected countries. Therefore, a 1% increase in geographical distance leads to a 0.3% decrease in trade for developed countries and a 0.5% decrease in trade for developing countries. As a result, countries tend to prefer trading with their neighboring and geographically closer countries due to economic advantages, especially in transportation sector.
Technology gap has significant negative implications for developed countries and significant positive implications for developing countries. This means that with a one percent increase in technology gap between these countries, the trade of developing countries increases by 0.45 percent and the trade of developed countries decreases by 0.19 percent. Technology gap is considered a trade barrier in developed countries, while it is seen as an advantage in developing countries.
The impact of green technology is positive and significant in both selected groups of countries. One percent increase in green technology transformation results in a 0.91 percent and 1.91 percent increase in trade for developed and developing countries, respectively. This indicates that the adoption of green technology not only does not hinder international trade but can also strengthen trade relations in the green pathway.
Discussion and Conclusion
Transformation of green technology has had a significant and positive impact on trade for both groups of selected countries. This indicates that green technology has found a suitable position in advancing international trade for these countries.
Considering that green technology has a significant impact on development issues and the importance of preserving a clean and sustainable environment for future generations, as well as in line with the findings of this research, governments and societies should invest more in greener and more complex sectors. They should enhance their technical skills and develop the necessary technological infrastructure for the growth of green industries. Additionally, the international community should expand the support for emerging green industries in developing economies by strengthening global trade regulations, particularly through increased efforts by developing countries to acquire this technology.
According to the results obtained, the impact of technology gap on international trade among developing countries is positive and significant. This means that as the technology distance increases, bilateral trade between these countries also increases. Therefore, the mentioned countries, due to their lower level of technology, have a strong inclination to import technology and engage in trade with each other.
Based on the findings of this research, which identifies the technology gap as a stimulating and influential factor in increasing trade among these groups of countries, it is suggested to prioritize the advancement of technology for all countries. It is recommended to maintain a certain level of technology gap in developing countries while simultaneously pursuing alternative policies to harness its positive impact on trade
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