Trade Fairs as an Export Marketing and Research Strategy: Results from a Study of Korean Advanced Machinery Firms

Manufacturers pursuing information on potential customers in distant, dynamic markets confront myriad obstacles. To address this, many firms attend international trade fairs in order to market their products, to meet with prospective customers, and to tap into buzz related to potential international opportunities. In many ways, moreover, such exhibitions can serve as short‐term agglomerations of same‐industry activity, particularly important for producer–user interface geared towards innovation. The goal of this paper is to explore how Korean machine tool manufacturers utilise a major global trade show in Seoul to minimise the difficulties associated with accessing a global customer base, inclusive of their activity at this show geared towards innovation. Evidence from firm‐level surveys and interviews suggest that the amount of importance placed on trade fair attendance as part of a firm's internationalisation strategies is related to export growth. Additionally, a new insight generated is that firms that participate in trade shows as part of their innovation process also demonstrate higher rates of export intensity. Finally, we may be witnessing newly discovered, technology‐driven, symbiotic relationships between online portal sites, vendors, and potential customers at these trade fairs, where virtual services are nonetheless augmented by a need for a continued onsite presence at these exhibitions.     

A Geospatial Analysis of China's Exports, 1991-2008

Three Taiwan-based economists employ a range of exploratory spatial data analysis tools (e.g., Moran's I and LISA statistics) to investigate trends in the growth of China's exports over the period 1991-2008. A particular focus is on the detection of spatial correlations between China and 40 export destination countries in major world regions. Emphasis in the paper on the key years of 1991, 2001, 2006, and 2008 has enabled the authors to analyze the impacts on China's trade of such major events as the country's accession to the World Trade Organization and the global economic crisis of 2008-2009. The results of the spatial analysis reveal the continuing importance of the U.S. and Asian countries in China's export trade (despite changes in the character of trade relations) and identify the spatial outliers (e.g., in Latin America) that may serve as the basis for new export markets for China in the future.     

Brexit or Bremain: what future for the UK's European diplomatic strategy?

A major public debate on the costs and benefits of the United Kingdom's membership of the European Union is presently under way. The outcome of the referendum on 23 June 2016 will be a pivotal moment in determining whether the EU has a future as a component of the UK's European diplomatic strategy or whether there is a major recalibration of how the UK relates to Europe and more widely of its role within international relations. Since accession to the European Economic Community the UK has evolved an uncodified, multipronged European diplomatic strategy. This has involved the UK seeking to reinforce its approach of shaping the security of the continent, preserving a leading diplomatic role for the UK in managing the international relations of Europe, and to maximize British trade and investment opportunities through a broadening and deepening of Europe as an economically liberal part of the global political economy. Since accession the UK's European diplomatic strategy has also been to use membership of the EU to facilitate the enhancement of its international influence, primarily as a vehicle for leveraging and amplifying broader national foreign and security policy objectives. The strategy has been consistent irrespective of which party has formed the government in the UK. Increasing domestic political difficulties with the process of European integration have now directly impacted on this European strategy with a referendum commitment. Whether a vote for a Brexit or a Bremain, the UK will be confronted with challenges for its future European strategy.     

The Ins and Outs of Iranian Industrial Resilience under Sanctions

This paper draws on export data from four of Iran’s key trade partners—the European Union, China, the United Arab Emirates (UAE), and Turkey—to examine the robust and positive correlations between the export of parts and machinery to Iran and Iran’s industrial output, as measured by production index data published by the Central Bank of Iran for industrial enterprises with over 100 employees. The period of analysis is 2000 to 2017. It may seem intuitive that the output of Iranian manufacturers depends on the ability of companies to source intermediate goods such as parts and machinery. However, the imposition of sanctions on Iran is shown to have temporarily decoupled the relationship between European industrial exports to Iran and the Iranian industrial production index—the index remained stable even as European exports fell. An analysis of trade data for the other three trade partners included in this study quantitatively substantiates reports noting that in order to sustain the industrial production index, Iran engaged in processes that can be collectively described as “import reflection.” This entails substituting European intermediate inputs with Chinese inputs while also circumventing sanctions pressures on trade by sourcing European inputs via re‐export from the UAE and Turkey. These processes were fundamental to Iran’s economic resilience in the face of multilateral sanctions and have played a central role in Iran’s defense of its industrialized economy and particularly its non‐oil exports as the administration of US President Donald Trump pursues a new unilateral campaign of “maximum pressure” sanctions.     

Economic integration and the diversification of regional exports: evidence from the Canadian-U.S. Free Trade Agreement

We investigate the impact of Canada–U.S. trade integrationon the degree of export diversification of the Canadian regions.Trade integration is captured through the decrease of trade-weightedtariffs that were boosted by implementation of the Canadian–U.S.Free Trade Agreement. We found strong evidence to support integration'slong-run impact on the patterns of absolute exports diversification.Significantly, this new finding remains robust to the exclusionof the primary sectors and to the potential presence of unitroot in the data. Our results lead us to support a positivelong-run relationship between trade integration and export diversification.     

Between Kant and Machiavelli: EU foreign policy priorities in the 2010s

The entry into force of the Lisbon Treaty invites and enables Europe to develop elements of a common foreign policy. Europe should resist the tendency of listing all issues calling for attention, and be aware that it will have to address three agendas, not just one. The first agenda is the Kantian one of universal causes. While it remains essential to European identity, it presents Europe with limited opportunities for success in the 2010s as could be seen at the 2009 Climate Summit in Copenhagen. The ‘Alliance’ agenda remains essential on the security front and would benefit from a transatlantic effort at rejuvenation on the economic one. Last but not least, the ‘Machiavellian’ agenda reflects what most countries would define as their ‘normal’ foreign policy. It calls for Europe to influence key aspects of the world order in the absence of universal causes or common values. While Europe's ‘Machiavellian’ experience is limited to trade policy, developing a capacity to address this third agenda in a manner that places its common interests first and reinforces its identity will be Europe's central foreign policy challenge in the 2010s. A key part of the Machiavellian agenda presently revolves around relations with Ukraine, Turkey and the Russian Federation, three countries essential to Europe's energy security that are unlikely to change their foreign policy stance faced with EU soft power. Stressing that foreign policy is about ‘us’ and ‘them’, the article looks at what could be a genuine European foreign policy vis‐à‐vis each of these interdependent countries, beginning with energy and a more self‐interested approach to enlargement. The European public space is political in nature, as majority voting and mutual recognition imply that citizens accept ‘foreigners’ as legitimate legislators. At a time when the European integration process has become more hesitant and the political dimension of European integration tends to be derided or assumed away, admitting Turkey or Ukraine as members would change Europe more than it would change these countries. Foreign policy cannot be reduced to making Europe itself the prize of the relationship. What objectives Europe sets for itself in its dealing with Ukraine, Turkey and Russia will test whether it is ready for a fully‐fledged foreign policy or whether the invocation of ‘Europe’ is merely a convenient instrument for entities other than ‘Europe’.     

Can Russia Compete in the Global Economy?

A noted British economist and analyst of current developments in Russia investigates that country's competitiveness in global merchandise export markets by seeking to determine its trade specialization and comparative advantage in a global context. In search of consistent trends, the author compares Russia's scores in 2000 on the Balassa Index of Revealed Comparative Advantage with those of 2004, and also for that year with a selected list of international competitors (Brazil, India, China, Turkey, and the United States) as well. He then discusses recent (through June 2006) government efforts to stimulate export growth in sectors currently underrepresented in Russia's trade profile and assesses prospects for improvement in the balance of Russia's export profile. Journal of Economic Literature, Classification Numbers: E20, F14, F40. 7 tables, 20 references, 1 appendix.     

Acknowledging economic realities. The CMEA policy change vis-à-vis the European Community, 1970–3

In the early 1970s, the economic consequences of European Community (EC) policies forced the Council for Mutual Economic Assistance (CMEA) to devise its trade policy vis-à-vis the outside world. With the implementation of its Common Commercial Policy, the EC was about to change the rules and conduct of its foreign trade. The East–West trade boom that took off in the 1960s had created significant commercial links, and substantial dependencies, across the Iron Curtain. The smaller members of the CMEA began to advocate an opening up towards the EC due to their fears of worsening trade prospects caused by the new EC policies. After reconsideration of its allies' commercial needs, the Soviet leadership was pressured to change its mind in favour of a common approach vis-à-vis the EC. This article follows the debate within the CMEA Executive Committee on the socialist countries' dependency on the Western market and on the advisability of opening up to the global market. It relies on official CMEA documents as well as Soviet and German Democratic Republic (GDR) policy-making documents. This article analyses the process of socialist integration in connection with the simultaneous developments taking place in their Western European counterparts, and thereby fills a gap in the historiography of Europe in the Cold War.     

Restructuring Intra-urban Space during China's Transition. Jian Feng

An American geographer whose research focuses on Europe reports on changes in geographical patterns and trends in merchandise export trade after the dismantling of political- economic divisions prevailing during the Cold War and their replacement by European political and economic integration as well as globalization. Analysis and comparison of international trade data for the years 1960 and 2010 reveal a dramatic expansion in the role of Germany and China in European merchandise trade, accompanied by a decline in the importance of the United States and United Kingdom. The author also demonstrates how some countries such as the Netherlands have expanded their exports to a broader range of European countries, whereas others appear to be consolidating their roles as leaders of regional trade blocs (e.g., Italy in Southeastern Europe).     

Trade Liberalization and Export Performance in Bolivia

One of the anticipated gains from the trade liberalization policies adopted by many Latin American countries in recent years is improved export performance. In this article, the arguments on which this expectation is based are reviewed and the impact of trade liberalization on Bolivian manufactured exports analysed. The conclusion is that improved export performance is largely the result of a more realistic and more stable real exchange rate after 1985, while the trade policy reforms have had little impact. Certain deficiencies of Bolivia's export performance, such as the increased emphasis on primary and semi-processed products, and the lack of diversification in terms of both products and markets, are also noted.     

Towards the Baghdad Pact: South Asia and Middle East Defence in the Gold War, 19477ndash;1955

This article illustrates US policy on European integration and the European Economic Community (EEC) by focusing on the General Agreement on Tarriff and Trade (GATT) Kennedy Round negotiations (1963–7). However underestimated in the history of international relations, GATT provides in fact an outstanding framework for analysing the foreign policy of its members. Whilst analyses of the Round per se already exist, no scholar thus far has focused on US policy towards European integration. Moreover, no previous author has utilised the European archives and has examined the stances of the EEC. This article shows that US support for European integration, which both Kennedy and Johnson followed at the behest of the ‘Europeanists’ in their respective administrations, conditioned the bargaining position of the United States in Geneva. The US negotiators tried to enhance US trade interests while at the same time attempting to encourage European regional integration. In so doing, the United States played a role in the strengthening of European regional integration by favouring the unity of the area. Moreover, contrary to previous accounts, this article shows that US negotiators were able to direct and move forward a complicated negotiation, showing Washington's leadership. The article concludes by showing that the Kennedy Round ended a period of about twenty years during which the United States acted to promote the unity of Western Europe. At the end of the 1960s, with the worsening of the US economic conditions, the tension in transatlantic relations over monetary and security issues, and the strength that the EEC demonstrated during the Kennedy Round, ‘the Europeanists’ were no longer able to prevail with their line in the internal discussions. This change became apparent when the Nixon administration shifted to a more detached and ambiguous policy towards European integration.     

Greece in the future enlarged European Union

Abstract

For Greece, to be part of the European Communities/European Union, it has always been a constant challenge to the country's international position. Sixteen years of EC membership have had a remarkable political, diplomatic, socio-economic and cultural effect on the country's internal domain. Indeed, EC membership has contributed to the consolidation of democratic internal processes, it has influenced the administrative capacity of the state, it has affected the external political orientation of the country's foreign policy objectives, it has benefited the economy from substantial financial community transfers and it has brought the Greek culture closer to the other western European cultures. Seen from a more critical perspective, BC membership has also produced severe shock effects, as the Greek economy has been increasingly exposed to European trade and the subsequent single market and it keeps on breeding social tensions in the process of economic and monetary integration.     

European Union External Trade Policy: Multilevel Principal–Agent Relationships

This article examines the potential political influences on European Union (EU) external trade policymaking. Given the EU's volume of international trade and its extensive involvement in bilateral and multilateral trade arrangements, a better understanding of how the EU makes external trade policy is increasingly important. It is an extremely complex process—involving the EU public, the 25 member states' parliaments and governments, and the institutions of the EU, including the Council of Ministers, the European Parliament, and the European Commission. It is a system of multilevel governance with overlapping jurisdictions with numerous potential access points for societal interests to influence European external trade policy. In this article, we evaluate the probable political channels that societal interests could use to influence EU external trade policy. We employ the principal–agent (P–A) framework to examine five of the more important P–A relationships that are likely to influence EU external trade policymaking. We conclude that EU policymaking as it pertains to external trade is quite insulated from general public pressures. The primary institutions involved in external trade policymaking are the EU Council of Ministers and the Commission—both of which are largely insulated from the public. Future empirical work should focus on this relationship between the Council of Ministers and the Commission.     

A Geographical Product Differentiation Model of Trade Competition in Third Markets

Product differentiation trade models have been developed in order to account for some contemporary patterns of international trade that are inexplicable under the theory of comparative advantage. This paper presents the case for the geographical differentiation of products. A generalized geographical product differentiation model of trade competition in industrial third markets is outlined within a discrete choice framework. The model treats product price and quality, as determined by country of origin, as distinct variables in export competition. An indirect empirical test of the model's validity, using the cases of export competition between the United States and the Federal Republic of Germany and the United States and Japan, indicates that the generalized model is worthwhile in its ability to account for successful trade competition.     

Joseph Retinger's conception of and contribution to the early process of European integration

The origins of the European Union are especially connected to its so-called founding fathers. One of them was Polish politician Joseph Retinger, who represented a functionalist point of view. This article aims to throw light on Retinger's contribution to uniting the Old Continent. The method applied in this article is a comparative analysis of Retinger's ideas with the early phases of integration. Many significant initiatives taken with a view to the future integration of Europe, such as the founding of the European League for Economic Co-operation (1946), the Congress of Europe held in The Hague (1948), the founding of the European Movement (1948), or the establishment of the Council of Europe (1949) to give just a few examples can all be associated with Retinger's activity. The author concludes that the importance of Retinger's European activities (concerning the early period after the Second World War) were so huge that he should be ranked among the pioneers of the modern European Union.     

Chile's Export Diversification since 1960: A Free Market Miracle or Mirage?

Conventional wisdom has proclaimed Chile's recent economic development a ‘free market miracle’. In an examination of Chile's export diversification experience, this article departs from that view. By analysing the dynamics underlying the emergence of the salmon, fruit, forestry and wine sectors in Chile's export basket since the 1960s, the study sheds light on the crucial role of industrial policy in the process of capability accumulation that shapes new industries. The article undertakes a qualitative historical analysis of the scope and nature of policy interventions in each of the four sectors and conducts a quantitative policy evaluation using the difference‐in‐difference method. It finds that public institutions are essential in overcoming market failures inhibiting the emergence of new industries. Specifically, it shows that the government has a key role to play as a catalyst of human capital accumulation, as a venture capitalist, in trade promotion, and in ensuring ‘national’ sector reputation through a strong regulatory and quality control role. By elaborating on the dynamic process of structural transformation and capability accumulation, this article contributes to theoretical debates on the role of vertical policies in the emergence of new competitive sectors, and debates relating to static versus dynamic approaches to comparative advantage.     

Russia's European policy under Medvedev: how sustainable is a new compromise?

This article argues that Dmitry Medvedev's term in office, despite the continuity in Russia's foreign policy objectives, brought about a certain change in Russia's relations with the European Union and the countries of the Common Neighbourhood. The western perceptions of Russia as a resurgent power able to use energy as leverage vis‐à‐vis the EU were challenged by the global economic crisis, the emergence of a buyer's market in Europe's gas trade, Russia's inability to start internal reforms, and the growing gap in the development of Russia on the one hand and China on the other. As a result, the balance of self‐confidence shifted in the still essentially stagnant EU–Russian relationship. As before, Moscow is ready to use all available opportunities to tighten its grip on the post‐Soviet space, but it is less keen to go into an open conflict when important interests of EU member states may be affected. The realization is slowly emerging also inside Russia that it is less able either to intimidate or attract European actors, even though it can still appeal to their so‐called ‘pragmatic interests’, both transparent and non‐transparent. At the same time, whereas the new modus operandi may be suboptimal from the point of view of those in the country who would want Russia's policy to be aimed at the restoration of global power status, it is the one that the Kremlin can live with—also after the expected return of Vladimir Putin as Russia's president. Under the current scheme, the West—and the EU in particular—does little to challenge Russia's internal order and leaves it enough space to conduct its chosen course in the former Soviet Union.     

Regional Specialization and Industrial Concentration Patterns in the Turkish Manufacturing Industry: An Assessment for the 1980–2000 Period1

Previous studies on geographical distribution of economic activity in Turkey demonstrate that firms are localized in major metropolitan areas as well as a set of emerging regions. The aim of the paper is to complement the findings of the studies on regional and industrial concentration in Turkey's manufacturing industry by exploring whether regional specialization and industrial concentration patterns changed during the 1980–2000 period. The paper further aims to explore the driving forces of industrial concentration in Turkey's manufacturing industry, particularly during Turkey's economic integration process that started with trade liberalization after 1980 and further developed with the Customs Union in 1996. Regional specialization and industrial concentration are measured by GINI indices Turkey's NUTS-2 regions at the four-digit level for the years between 1980 and 2000. To investigate which variables determine industry concentration, systematic relation between the characteristics of the industry and industrial concentration is tested. Following the method proposed by Paluzie, Pons and Tirado, a panel regression equation is estimated, where the dependent variable is the Gini concentration index and the independent variables are the variables that represent the characteristics of the sectors that follow the predictions of classical trade theory, new trade theory and new economic geography. The major finding of the study is that during 1980–2000, Turkey's regions became more specialized and industry became more concentrated. Increases in the average values of regional specialization and industrial concentration support the prediction developed by Krugman hypothesis that regions become more specialized and industries become more concentrated with economic integration. In exploring the driving forces of industrial concentration, the findings demonstrate that firms tend to cluster in regions where there are economies of scale.     

How China Navigated the Dilemma of Trade Liberalization and Government Revenues

Many economists believe that in the long run, the aggregate performance of open economies is better than that of closed ones, and that open policies contribute significantly to economic development. At the same time, many political scientists and policy makers fear that, in the short run, one of the steps towards openness — trade liberalization — may harm government revenues. However, in the 1990s, China successfully navigated the dilemma of trade liberalization and government revenues. In this period, China decreased tariff and non‐tariff barriers for WTO accession, but has achieved dramatically increased tariff revenues since 1999. This study explores how China implemented trade liberalization and simultaneously increased tariff revenues in the 1990s. It demonstrates that a series of institutional arrangements, including a reform of Criminal Law, rigorous anti‐smuggling activities and a de facto tax imposed on the export sector, successfully curbed smuggling activities through the processing trade, and made foreign‐invested manufacturing enterprises the major contributors to the stability of customs revenue. China's case shows that a prosperous, export‐oriented and foreign‐invested manufacturing sector could potentially provide a developing country with a source of customs revenue.