Economic Rationale for Manifestations of Asymmetry in the Global Trading System
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Date
2023
Authors
Tananaiko, Tetiana
Тананайко, Тетяна С.
Yatsenko, Olha
Яценко, Ольга Миколаївна
Яценко, Ольга Николаевна
Osypova, Olha
Осипова, Ольга Ігорівна
Осипова, Ольга Игоревна
Nitsenko, Vitalii
Ніценко, Віталій С.
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
The interconnected global trading system has proved to be both vulnerable and resistant to
crises, despite its asymmetries. The global trading system is constantly changing under the influence
of such factors as the digitalization of economic processes and the growing number of nontariff
measures to regulate trade volumes, including trade protection measures introduced by countries
in order to ensure national economic interests etc. This article analyzes the impact of the tariff and
nontariff instruments of export and import regulation on the asymmetries of the global trading system
across countries and separate customs territories, depending on their presence in geographical regions
or groups of countries associated with different levels of economic development. In order to quantify
the possible asymmetries in the global trading system, analysis of variance and regression analysis
are applied to explain the variance in the volume of global trade. The regression models for the
dependence of export volumes on a number of trade indicators are fitted for developed, developing,
and least-developed countries alongside the global trading system as a whole. The research showed
that asymmetries of the global trading system exist on the global, regional and bilateral levels. In
this research, two types of asymmetries are discussed: asymmetry directly and indirectly linked to
international trade processes. To ensure economic development, the global trading system must
be modernized so as to reduce the asymmetry. Accordingly, in order to increase effectiveness of
the World Trade Organization, suggestions are proposed in regards to reconsidering trade-dispute
settling, improving the monitoring of members’ obligations, increasing negotiation process efficiency
and defining criteria for categorizing members according to their economic development.
Description
Keywords
global trading system, economic sustainability, analysis of variance, econometric analysis, regional trade agreements, level of customs rates, nontariff trade measures, economic development
Citation
Economic Rationale for Manifestations of Asymmetry in the Global Trading System [Electronic resource] / Tetiana Tananaiko, Olha Yatsenko, Olha Osypova [et al.] // Sustainability. – Electronic text data. – 2023. – № 15, 5316. – Title from screen. – Mode of access: https://www.mdpi.com/2071-1050/15/6/5316. 2071-1050 MDPI