Throughout this book, present study aimed to create interest and guide the readers about achievement of trade liberalization among developing countries. It is also aimed to analyze, how developing countries can enhance their intra-regional trade based on Regional Trade Agreements (RTAs), and up to what extend a dynamic approach (i.e. Pattern of comparative advantage) can be fruitful in identification of sectors/products having export potential among concern economies. Accordingly, our finding revealed that trade performance can be improve due to formation of RTAs (i.e. Preferential or Free trade agreements), and Balassa’s (1965) Index can be considered as an appropriate tool for the identification of products/sectors of concern country having a vast trade potential. In this study, empirically results on relationship between exports and economy growth also support the theory of endogenous growth. Therefore, our findings facilitate the regulatory authorities of less developed countries to give special attention on adoption of combine approach and removing of technology gap, in order to improve economic growth and best use of RTAs.
This study examines the postulation that trade liberalization (regional integration) policies of LDCs normally undermine their presumed impact. The study is based on the experience of EAC trade agreement. It adopts the extended gravity model, to analyze the impact of this regional integration on food item. The model includes 168 countries and is estimated with panel data over the period 1988 – 1996. The Poisson estimation method took into account unobserved trade data characteristics of the bilateral trade relations. The results show that regional trade integration increased exports, normally at the expense of imports and welfare of non-members, and these exports were more reflective of food exports growth. The same has not been true for intra-bloc exports of food although the sector experienced an increase in exports resulting from the implementation of a trade agreement. The intra-bloc results are consistent with the structural rigidities of the exporting EAC Countries.
As the multilateral trade talks have stalled, bilateral and regional free trade agreements have proliferated. This book surveys the most important recent agreements and provides an overview of the law being created in these areas.
The Regional Trade Agreement (RTA) offers a meaningful exemption to the MFN principle in the WTO system. It is thus worthy analysing the existing RTA provisions and WTO rules on specific issues for designing a new framework of RTA by understanding the co-related functions of the RTAs and their connections with the WTO agreements. This approach is very crucial for reducing the number of disputes between the RTA parties when deciding trade remedy. In particular, the three Northeast Asian countries, China, Japan, and Korea (CJK), have a scheme for an FTA, the so-called CJK FTA, and they also can use this method in the procedure of designing articles on trade remedy measures. This book discusses about the legal points of provisions on trade remedies in the RTAs, such as for the possible CJK FTA. It further reviews the potential legal issues of RTAs and discusses the structure of provisions as part of the CJK FTA.
Despite the fact that SAARC countries have been relentlessly striving to enhance economic cooperation and boost intra-regional trade through various trade agreements, analysts argue that this objective has remained elusive for a long time. This study, therefore, recounts the findings after testing the effects of bilateral trade agreements on trade flows of SAARC countries using gravity models. Also, with GTAP model, it shows the welfare implications resulting from preferential tariffs and free trade agreements among not only SAARC countries per se, but also by aggregating with other countries and regions, including China, Japan, South Korea, the United States and the EU. The lessons from this study is expected to provide insights on untapped trade potential and significant complementarities that exist within the SAARC region, which might explain why intra-SAARC trade is low, and how regional integration and economic cooperation among SAARC countries could be further deepened. The analysis should also stimulate policymakers to devise appropriate measures to promote intra- as well as inter-regional trade.
In the world of rapidly growing global liberalization, the issue of the relationship between international trade and economic growth has become increasingly important. While the benefits of trade creation are widely recognized among economists and policy makers alike, the growing proliferation of regional trade agreements (RTAs) has led to a debate on the impacts of RTAs on their member countries. As far as Ukraine is concerned, two main options of regional economic integration are on the agenda: the establishment of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU and the participation in the recently formed Customs Union between Russia, Belarus and Kazakhstan (CU RBK). While it is possible for a country to participate in several regional trade agreements at the same time, Ukraine appears to be in a unique situation where a full membership in CU RBK is incompatible with the free trade regime of the DCFTA. Although entry into both RTAs would be the best solution, Ukraine’s current situation forces the country to make a strategic choice of which partner to ally with. The objective of this work is to provide a holistic analysis of both RTAs and their potential impact on the economy of Ukraine in terms of economic growth and other related aspects.
Revision with unchanged content. Do variations in institutional design influence the inward flows of foreign direct investment (FDI)? The application of distinctions in the creation of organizations to FDI has been limited. Variations in RTA economic scope and independence gives foreign investors comparable signals as to the extent to which developing governments will apply liberal economic reforms as well as the ability of external agencies to enforce these reforms and protect investments. Conversely, stringent and strongly independent RTAs may actually prove to be inhibiting to foreign investment in developed countries by restricting the previously successful economic actions. I apply a data set of FDI inflows for both developing and developed nations from 1970 to 2003. Controlling for alternative explanations and concerns of endogeneity, I find that elevated levels of both RTA economic scope and independence produce superior inflows of FDI into developing nations, while more independent RTAs actually reduce inward FDI movement into developed nations. This book is addressed to professionals in political science and toward research in the sub-fields of international organization.
This book focuses on the analysis and assessment of competitiveness within the Uruguayan broiler industry in a MERCOSUR context. Porter’s (1990) ‘national diamond’ was selected as the appropriate framework for analysis. This research reveals that the unique characteristics of the Uruguayan broiler industry are successfully accommodated within the selected framework. However, some modifications of the model are required to fully explain the progress of this industry. This study opted for an industry-level case study research strategy that is operationalized through in-depth personal interviews with owner directors and managers in six of the seven possible organizations within Uruguay. This is augmented by further data collection through sources in government and market relevant bodies in order to generate information on the national context. These findings were used to elaborate policy recommendations out of the collected data that would help Uruguayan broiler firms to compete with international broiler firms in a regional economic block (MERCOSUR) without barriers.
It is widely held that trade positively affects the growth of nations. Several institutions exist to deal with trade between nations. Of such institutions, regional trade agreements (RTAs) have witnessed the most dramatic increase since the early 1990s. Governments have been relentless in entering into RTAs; some belong to two or more. The amount of resources spent creating and managing these RTAs is substantial, which begs the question: “Do the benefits of intraregional trade justify its preferential advancement over extra-regional trade?” This book attempts to shed light on this question. Rather than a general analysis of the pros and cons of RTAs, an approach most prevalent in literature, this book looks at the economic argument of favoring intraregional trade in RTAs. It analyzes the impact on growth of the two trade patterns using a fixed effects regression model, which treats the sample countries as a group, while recognizing the unobserved time invariant factors in each country that may influence growth. The analysis should help shed light on the efficacy of advancing RTAs and should be useful to students of trade and growth, policy analysts and policy makers.
Geographical indications are today considered major intellectual assets in relation to a variety of goods. They are seen not only as a tool for protecting consumer’s interests but also as a legal and economic tool for the development of rural areas and the preservation of cultural heritage. The importance that geographical indications have gained over the last few decades is reflected in their inclusion as protectable subject matter under the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in 1994 and in subsequent bilateral and regional trade agreements as well as the immense interest in the current negotiations in the context of the Doha Round of Multilateral Trade Negotiations.
This study reviews literature on regional economic integration. it Pays attention to both traditional and modern theory of regional economic integration ,the effects of regional economic integration as well as stages .It assesses existing empirical findings on effects of regional economic integration to support the analytical methods used in this study. At the same time, the study mainly focus on assessing trade effects of regional economic integration at sectoral level taking SADC as case study . In this regard, this study looks at theoretical justifications for using gravity model to analyze trade creation and diversion effects of forming regional blocs in Africa. Accordingly, empirical studies on regional economic integration process in Africa show sluggish progress and there by limited level of intra trade. Particularly, the empirical results show that the intra -SADC trade is growing in fuel and minerals, and heavy manufacturing sectors while it displays a declining trend in agricultural and light manufacturing sectors.
The processes of economic reform (Doi moi) beginning in 1986 and of deeper integration commencing in 1995 were the major changes, within which, Vietnam’s international trade regime was re-shaped. After an initially hesitant start in the late 1980’s, the efforts of liberalization have been accelerated since 1995 as the result of Vietnam’s intensified integration into the regional and world economy with its tightening schedule for bilateral and multilateral commitments. Those institutional changes were of strategic importance in the past and will promote a new stage of development in the future. Although being implemented in a cautious and gradual fashion, trade liberalization undertaken by the government of Vietnam up to date could be regarded as successful. The success story of Vietnam in terms of progressive liberalization of trade, spectacular growth and impressive reduction in poverty incidence during the last 20 years could provide a good example of how liberalization of trade regime can be translated into trade expansion, economic growth and poverty reduction.
While trade liberalization is expected to boost economic welfare, the reverse is true in Cameroon and most LDCs countries. To explore the possible effects of trade liberalization on poverty alleviation in Cameroon, this study examines key indicators of poverty. Parallel to Multilateral WTO negotiation’s, which have temporally come to a halt, a large number of bilateral and regional trade agreements have been signed, or are under negotiation.. The purpose of this study is to present a broad view of recent events in this area of trade liberalization or regionalization and the South –South Trade with special emphasis on agreements covering developing countries in general and LDCs in particular. Is Cameroon Trade the answer to alleviating poverty?
This book analyses the rules governing regional trade agreements in six key areas - market access, technical barriers to trade, contingent protection, investment, services and competition policy. The analysis provides new insights into the interplay between regional and multilateral trade rules.
International trade has become increasingly regionalized over the last several decades. As the regional trading blocs emerged, a substantial portion of international trade became subject to Regional Economic Integration Projects (REIPs). It is estimated that more than two-thirds of world trade today is accounted for by the REIPs. This book evaluates the experiences of some REIPs and aims at providing insights on the lessons to be taken from their experiences. Turkey is a rising star of the greater Middle East region. It has been going through a radical economic and political transformation process since early 1980s. “Zero-problem with neighbors” vision in international relations and economic policy reforms combined with political and economic stability in the 2000s contributed to the emergence of Turkey as a focus of attention. OIC and Turkey are in search of greater openness and cooperation in recent years. Regional integration and Turkey would be a valuable guide for analysts, academics, researchers, students as well as policy makers of the developing countries'' seeking to rip of the benefits of REIPs.