This paper aims to estimate the impact of ICT and technological development of countries on supply chain trade. As proxy measures of supply chain trade, the author applies domestic value added ...(DVAFX) included in gross-foreign exports, and foreign-value added included in domestic exports (FVA) from the Eora MRIO database while constructing the ICT variable by using confirmatory factor analysis. Furthermore, as a proxy variable for the country’s technological development, the author applies the economic complexity index developed by Harvard’s Growth Lab, conducting her analysis based on the structural gravity model estimated with the Poisson Pseudo-Maximum Likelihood Estimator (PPML). Together with the standard gravity regressors, the model includes the bilateral position of countries in the supply chain. Our panel dataset covers the 2000-2019 period, including 130 world countries. To control for the potential source of endogeneity, the model includes reporter and partner country fixed effects, yearly fixed effects, and country-pair fixed effects. The results confirm a statistically significant relationship between the country’s technological development and supply-chain trade. Technological development enables a country to produce more complex, higher value-added products and thus to be more upstream positioned in the supply chain. The more upstream the country is in the supply chain, the higher the domestic value added is included in its exports.
The current empirical literature shows that logistics plays a vital role in increasing the total volume of international trade. However, there is scarce literature on the impact of logistics ...performance on global value chain trade. Therefore, the objective of this paper is to investigate the effect of logistics performance on global value chain trade, measured by the value-added exports. The empirical specification of this paper is based on the structural gravity model of international trade. The analysis is based on biennial panel data on bilateral trade flows for the EU-15, CEE, and the Western Balkans and covers the period from 2010 to 2018. The model is estimated with a Poisson Pseudo Maximum Likelihood Estimator. The results show that logistics performance appears to have significant positive effects on global value chain trade and that the logistics performance of the partner country plays a more critical role than the logistics performance of the reporting country. Institutional quality matters greatly for global value chain trade. Individual differences in the observed variables were found between selected groups of countries. The need to improve logistics performance and invest in knowledge and technology will help countries improve in value chains, along with adequate institutional support.
Even though trade tariffs have generally fallen since the GATT agreement, non-tariff trade barriers still exist and show an upward trend. An important type of non-tariff trade barrier is logistics ...service related to the transport of goods to foreign markets. Efficient logistics is of great importance for small and open economies such as the Central and Eastern European EU member countries that became EU members in 2004 or later and are in the process of economic convergence with the old EU member countries, mostly through trade. On the other hand, logistics is important for old EU member countries because it influences competitiveness in global supply chains. The aim of this paper is to examine the homogeneity of the two blocks of EU countries in terms of logistics performance, i.e. to examine the impact of logistics performance on the international bilateral trade of the EU15 and CEMS with the rest of the world in the period 2010-2018. We develop and estimate a structural gravity model with Poisson pseudo-maximum probability estimator, using the LPI and its sub-indices as the main independent variables of interest. Our results show that differences in LPI values have heterogenous impact on bilateral trade, especially when considering trade in different classes of goods and different groups of country pairs.
Logistics has become one of the most important economic sectors. It significantly affects the transport infrastructure and many other sectors that are crucial for the country’s development. It is the ...factor that also influences trade efficiency. However, the question arises if logistics performance is significant for the trade of critical goods which are energy raw products. The aim of the paper is primarily to investigate the EU energy trade flows in general and to estimate the effect of logistics performance on the international trade of energy raw products. The energy raw products are grouped into solid, liquid, and gaseous products, and separate estimates are made for their export and import. The analysis also differentiates between the trade flows, that is export and import within the EU and trade flows between EU member states and third countries. The empirical model is based on the theory of gravity model extended to include the six subcomponents of the Logistics Performance Index (LPI). The results present that: (1) the standard gravity model variables, such as GDPs of reporter and partner countries and contiguity, are successful in explaining the trade flows of solid and liquid raw energy but in case of gas products, are insignificant; (2) the results indicate that all logistics’ performance subcomponents are highly significant and show positive effects on the export of liquid energy products, while for the solid and gas products, it seems to be insignificant when the energy commodities are more complex and costly to transport and store, and therefore, contiguity, i.e., when countries share a common border, positively affects energy trade; (3) the EU imports most liquid energy products, but is generally very dependent on energy imports. EU policymakers should strive to either make more use of domestic resources or switch more to renewable energy sources.
Cilj ovog rada je procijeniti učinke pojedinih determinanti na trgovinu dodanom vrijednošću DV, te analizirati postoje li i u kojoj mjeri razlike izmeðu starih (EU- 15) i novih (CEE) zemalja članica. ...Kao varijabla trgovine DV koristi se domaća dodana vrijednost (DVAFX) sadržana u stranom bruto izvozu. Analiza se temelji na strukturnom gravitacijskom modelu, a provedena je za razdoblje od 2000. do 2019. godine na uzorku od 130 zemalja. U analizi su uključene varijable pozicija u globalnom lancu vrijednosti, tehnološki razvoj, razvoj informacijske i komunikacijske tehnologije te učinkovitost institucija i granica. Kako bi se riješio problem efekta trećih zemalja, te potencijalni problem endogenosti, u model su uključeni godišnji fiksni učinci, fiksni učinci trgovinskih parova i fiksni učinci zemalja izvoznica i uvoznica. Kao glavni procjenitelj koristi se Poissonov procjenitelj pseudo maksimalne vjerodostojnosti (PPML), dok se kao test robusnosti modela koristi dinamička panela analiza s GMM procjeniteljem. Rezultati analize pokazuju kako su učinkovitost institucija i granica, tehnološki razvoj i pozicija u lancu opskrbe značajne za DVAFX te da su učinci tehnološkog razvoja i pozicije u lancu opskrbe još veći za zemlje CEE u usporedbi s EU-15.
Information and communication technology (ICT) is considered a significant factor in economic growth and development. Over the past two decades, scholars have studied the impact of ICT on economic ...growth, but there has been little research that has addressed the impact of ICT on human development, which is considered one of the fundamental factors of economic development. This could be especially important from the perspective of developing countries, which can develop faster through the implementation of ICT. Thus, the aim of this paper is to investigate the effects of ICT use on human development, distinguishing effects among high, upper-middle, lower-middle and low-income countries following the World Bank classification 2020. Our sample includes 130 countries in the period from 2007 to 2019. The empirical analysis is based on dynamic panel data regression analysis. We use Generalized Method of Moments (GMM) as an estimator, i.e., two-step system GMM. The results primarily support the dynamic behaviour of human development. The results of the analysis also show that ICT has highly significant positive effects on human development in lower-middle-income and low-income countries, while the effects do not appear to be significant in high- and middle-income countries. This research serves as an argument for the need to invest in ICT and its implementation in low-income countries; however, it also suggests that the story is not one-sided and that there are possible negative effects of ICT use on human development. From the perspective of economic policy, the results can be a guideline for the implementation and use of ICT in developing countries, which could lead to economic growth and development and thus better quality of life. On the other hand, policymakers in developed countries cannot rely on ICT alone; they should also consider other technological innovations that could ensure a better quality of life.
This study aims to assess the impact of information and communication technology (ICT) on human development (measured with the human development index – HDI). The authors have analyzed the countries ...with different development levels in order to identify the possible differences in these impacts when observing the level of income (development of the country). The paper uses a static panel data regression analysis, while a fixed-effects estimator (FE) is used for estimation. To address the possible endogeneity problem caused by reverse causality, we also perform a dynamic panel data regression using the Generalized Methods of Moments (GMM) estimator. The results support our hypothesis and show that ICT use and tertiary education positively affect human development, although the results vary by estimator. While in the case of the FE estimator, the effects are significant and positive across all observed countries, the results with the GMM estimators show a significant impact of ICT only in the case of upper-middle-income countries. However, it also implies that the lagged value of the HDI has significant and positive effects on the observed HDI. For economic policy, the results pinpoint the importance of ICT as a relevant instrument that can positively influence people’s lives directly or indirectly.
Trade Logistics – the Gravity Model Approach Host, Alen; Pavlić Skender, Helga; Zaninović, Petra Adelajda
Zbornik radova Ekonomskog fakulteta u Rijeci,
01/2019, Volume:
37, Issue:
1
Journal Article
Peer reviewed
Open access
Over the past decade, a number of papers attempt to capture the decisive impact of trade facilitation on international trade. Since the emergence of trade liberalization and tarrif reduction, trade ...facilitation analysis has been put in the spotlight. Trade facilitation is defined as all measures that reduce trade costs other than lowering tariffs. Therefore, the aim of this paper is to empirically examine the impact of trade facilitation from the logistics perspective on international trade distinguishing between low, middle and high income importing countries. We used the augmented gravity model to estimate this relationship across 150 countries within the period 2007-2016. The Logistic Performance Index (LPI) created by the World Bank is used as a proxy variable for trade facilitation. The results of our analysis show that all used variables are significant and show the expected signs correspondingly to our hypotheses, suggesting that trade will increase with trade facilitation. The results also lead to the conclusion that exporter logistics performance seems to be more important than importer logistics performance. This paper supports the World Bank trade facilitation initiatives to assure lower trade costs as they serve as a barrier to enjoying the benefits of increased trade.
Coastal line maritime passenger transport in the Republic of Croatia, as well as in other EU member states, is regulated through various regulations and legislation, which in turn result in numerous ...national laws and regulations that affect its development, all of which is legally binding for shippers. Scheduled maritime passenger transport is an extremely important form of transport for the Republic of Croatia since it is the only form of connection with the mainland for many islands. This paper analyses economic policy measures that affect the organization and implementation of coastal line maritime passenger transport. The paper also investigates the demand fluctuation for maritime passenger transport services. The aid measures provided by the state to individual sectors is also analysed, as well as aid for the provision of services of general economic interest. The aim of this paper is to assess the amount of aid granted to maritime transport and its importance, especially in coastal line maritime passenger transport. The paper also explains the importance of establishing the Coastal Liner Services Agency as a regulatory body of the Republic of Croatia, and it further analyses the subsidy amounts granted to shippers in the period from 2014 to 2020.
The emergence of logistics distribution centers has in the past few decades become a mass phenomenon that has emerged as a result of global economic processes. As part of logistics networks, ...logistics distribution centers are the key link between production and the market, i.e. end users, and function as nodes that facilitate international business activities. For this reason, the aim of this paper is to analyze the characteristics of logistics distribution centers on the example of logistics distribution centers of the selected Western and Central European Union countries and examine the prospects for the development of logistics distribution centers in Croatia. The research results indicate that the Republic of Croatia is less competitive in comparison with Western and Central European countries, although it has a number of logistics distribution centers due to insufficient utilization and renewal of transport infrastructure. Logistics distribution centers are an important center of logistics networks, and the countries will have to devote more attention to their development to attract foreign investment and achieve economic development, because their significance will continue to grow in the future.
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