The Impact of Foreign Trade on International Equity Investments During Global Financial Crisis and Great Lockdown Period

Countries more invest to their close trade partners and this relationship between trade and financial investments differs during the global crisis processes. This study analyzes the effect of commodity trade on bilateral equity investments and how this effect changed in the context of the 2008 Global Financial Crisis and the Great Lockdown with the gravity model. The gravity model has been estimated with the instrumental variable method to avoid the endogeneity between two flows. The results show that trade reduces equity investment. While this relationship did not change in the 2008 crisis, it is seen that the import increased the equity investments in the Covid-19 crisis.

The Covid-19 pandemic and European trade flows: Evidence from a dynamic panel model

This paper investigates the impact of the Covid-19 pandemic on trade flows in the case of the European countries. First, an ARDL dynamic panel model is estimated using the PMG method to analyse monthly data covering the most recent period (2019M1–2021M12);then, the GMM and PCSE approaches are applied to a much longer span of quarterly data (2000Q1–2021Q4), which also includes the Global Financial Crisis (GFC) of 2007–2009, in order to compare the trade impact of two different crises. The findings based on the monthly data provide clear evidence of the significant negative effects of the Covid-19 pandemic on both exports and imports in both the short and the long run, and also suggest that digitalisation was instrumental in mitigating the impact of the crisis and speeding up the recovery. The quarterly analysis over a longer time period indicates that both the GFC and the Covid-19 pandemic had negative effects on trade but of a different magnitude. The use of digital technology enabling remote work and e-commerce are again some of the factors likely explaining why international trade fell by less and also rebounded much more quickly during the Covid-19 pandemic compared to the GFC. © 2023 The Authors. International Journal of Finance & Economics published by John Wiley & Sons Ltd.

Systemic Changes in the Politicization of the International Trade Relations and the Decline of the Multilateral Trading System

This Article contributes to the discussion about the development of international trade regulation of state interventionism by situating the tensions that exist about the future design of subsidies and state enterprises treaty regulation in the broader context of current systemic challenges to the multilateral trading system. While recent studies have explored the issues of subsidies and state-owned enterprises (SOEs) as one of the most significant in impact among the contemporary challenges to the WTO, there is certainly scope to discuss further such a problem from the broader point of view of the crisis of the multilateral trading system, its systemic challenges and the concomitant increasing politicization of international trade relations. To this end, this Article analyzes the interactions between the lasting decline of the WTO, growing political interferences with international trade flows and the prospects of reforming multilateral trade rules to address its systemic challenges and manage/mitigate newly central problems of the 21st century such as the Covid-19 Pandemic, climate change and the greening of economic production and international trade. The Article argues that existing WTO rules are not adequate to address these challenges and problems. It concludes that, like in the GATT era, it is only the spirit of pragmatism that may provide chances to find alternatives to growing frustration with negotiating inaction and, hence, to reform the system. However, the question remains whether it is possible to find an approach to imagine, remodel and craft multilateral rules that are sensitive to different economic, political, and social choices and able to rebalance the position of all members, large and small, rich and poor.

COVID-19 Pandemic and Export: Evidence from Lithuania

In this paper I apply the gravity model to analyse structural changes of Lithuania's export during the first pandemic year. Lithuania was selected as a case of a small open economy with relatively high numbers of Covid-19 cases, on one hand, and a rather small decrease of its GDP growth in 2020, on the other. The research aims to fill the gap in the current literature by investigating heterogeneity in the goods export in terms of both product groups and export destinations*. I also analyse whether the importance of distance and other export determining factors changed during the pandemic year. Results suggest that Lithuania's export is resilient to economic shocks. Although the effects of Covid-19 were heterogeneous, the pandemic year had only a negligible impact on Lithuania's export structure. The influence of distance or other export determinants on Lithuania's export structure did not change during 2020.

You can smuggle but you can't hide: Sanction evasion during the Ukraine crisis: Zeitschrift für internationale Wirtshaftsbeziehungen

Whether one focuses on the rise of protectionism since the financial crisis of 2008, the active tariff policy introduced by the Trump administration, or China's recent trade restrictions on Australia for pushing for an independent investigation over the Covid-19 outbreak, trade measures have increasingly become an instrument of foreign and industrial policy rather than a multilateral effort to facilitate trade on a level playing field. [...]when the United States introduced punitive tariffs on China in 2018, U.S. Customs and Border Protection saw a nearly 50% rise in customs rulings related to the misclassification of goods, as firms tried to exploit the fact that early tariff rounds spared products similar to theirs.2 Similarly, when Russia introduced counter-sanctions on Western agricultural products in the wake of the Ukraine crisis, Russian newspapers reported on Belarusian seafood and tropical fruits appearing in local supermarkets, in clear cases of country-oforigin certificates being mislabeled to evade the import sanctions imposed on products from the European Union (Yeliseyeu, 2017). The incentives to evade trade barriers are particularly high for political sanctions, as they aim - in the form of goods sanctions - to economically impact the target economy and key decision makers by minimizing trade flows (Eaton and Engers, 1992;Kaempfer and Lowenberg, 1988), as opposed to import tariffs, which are mainly intended to extract rent and to support the implementing jurisdiction's industry. [...]a large string of the sanction literature addresses their effectiveness in the context of their (lack of) enforceability (Caruso, 2003;McLean and Whang, 2010;van Bergeijk and Biersteker, 2015). [...]I identify five different channels of sanction evasion and empirically analyze four of them, thus consolidating the various concepts of smuggling and evasion recorded in the literature.

The last frontier of globalization: Trade and foreign direct investment in healthcare.

Internationalizing far later than other sectors, healthcare has seen trade and foreign direct investment (FDI) grow in recent years. While part of the service economy, healthcare has unique features that distinguish it from other service sectors and imprint on its globalization and spillover patterns. In this paper, we review the trends in healthcare internationalization, its drivers, and the obstacles standing in the way. We outline the special characteristics of the healthcare sector and how they affect the positive and negative spillovers from trade and FDI for home and host-countries. Implications for international business theory, research, and policy are delineated.

S'internationalisant bien plus tard que d'autres secteurs, l'industrie de la santé voit croître le commerce et les investissements directs à l'étranger (FDI - Foreign Direct Investment) ces dernières années. Bien qu'il fasse partie de l'économie de services, le secteur de la santé possède des caractéristiques uniques qui le distinguent des autres secteurs des services et façonnent ses configurations de globalisation et d'externalité. Dans cet article, nous passons en revue les tendances de l'internationalisation du secteur de la santé, ses déterminants ainsi que les obstacles dressés sur le chemin. Nous spécifions les caractéristiques particulières de ce secteur et la manière dont ces caractéristiques influencent les externalités positives et négatives du commerce et des FDI pour les pays d'origine et d'accueil. Sont également précisées les implications pour la théorie, la recherche et la politique du commerce international.

Internacionalizándose mucho después que otros sectores, el sector salud ve crecer el comercio y la inversión extranjera directa (IED) en años recientes. Mientras que hace parte de la economía de servicio, el sector salud tiene características únicas que lo distinguen de otros sectores de servicio e imprimen una huella en sus patrones de globalización y de efectos. En este artículo, revisamos las tendencias en la internacionalización del sector salud, sus impulsores, y los obstáculos que se interponen en el camino. Subrayamos las características especiales del sector salud y cómo estas afectan los efectos positivos y negativos del comercio y la IED para los países de origen y anfitriones. Las implicaciones para la teoría, investigación y política de negocios internacionales son delineadas.

Internacionalizando muito mais tarde do que outros setores, a saúde vê o comércio e o investimento estrangeiro direto (FDI) crescendo nos últimos anos. Enquanto parte da economia de serviços, o setor de saúde tem características únicas que o distinguem de outros setores de serviços e se manifestam em seus padrões de globalização e efeitos secundários. Neste artigo, revisamos as tendências na internacionalização do setor de saúde, seus motivadores e os obstáculos que se colocam no caminho. Descrevemos as características especiais do setor de saúde e como elas afetam as repercussões positivas e negativas do comércio e FDI para países de origem e de acolhimento. Implicações para a teoria, pesquisa e políticas de negócios internacionais são delineadas.