Current Issue : April-June Volume : 2025 Issue Number : 2 Articles : 5 Articles
A model of Edgeworthian economies is studied, in which participants are randomly chosen at each period to exchange two goods to increase their utilities, as described by the Cobb– Douglas utility function. Participants can trade deviating from their bilateral equilibrium, provided that the market and the trade follow appropriate symmetry conditions. The article aims to study the convergence to equilibrium in a situation where individuals or small groups of participants trade in a market, and prices are determined by interactions between the participants rather than by demand and supply alone. A dynamic matching and bargaining game is considered, with statistical duality imposed on the market game, ensuring that each participant has a counterpart with opposite preferences. This guaranties that there is sufficient incentive for trade. It is shown that, in each period, the expected logarithm of the trading price in the Edgeworthian economy equals the expectedWalrasian price. This demonstrates that, under symmetry conditions, the trading price in the Edgeworthian economy is related to theWalrasian price, indicating convergence of the trading price in the Edgeworthian economy towards the Walrasian price. The study suggests that, under the right conditions, the decentralized trading model leads to price convergence similar to what would be expected in a more classicalWalrasian economy, where prices balance demand and supply....
Every economy’s prosperity is determined by the quantity of tax income it receives. Over the years, studies have demonstrated that inflows from foreign investments and openness to international trade are important contributors to a country’s tax income. Based on this assumption, this study seeks to examine the impact of foreign direct investment (FDI) and open trade on tax income in a number of sub-Saharan African nations. TheWorld Bank Development Indicators data on tax revenue, FDI, exports, imports, and exchange rates from 1990 to 2022 are used in the study. We also use the pooled mean group/panel autoregressive distributed lag approach to examine the data gathered for this inquiry. The results reveal that, in the long term, FDI has a significant negative impact on tax income; nevertheless, in the short run, Ghana’s tax revenue collection suffers while other nations profit from FDI. The results reveal that Nigeria’s exporting is detrimental to tax revenue collection, but South Africa’s export of goods and services is beneficial. However, imports and currency rates benefit Nigeria, Ghana, and South Africa in the near term. Thus, the research suggests improving tax rules and administration to prevent the movement of resources by foreign investors out of the host countries in order to avoid the imposition of huge tax burdens on their firms. Countries with low exports, such as Nigeria, are urged to enhance local manufacturing to meet international export standards in order to alleviate the continual negative balance of payments, which is primarily fixed by the adequate export of products and services....
Digital technology is profoundly altering the landscape of international trade. This study examines the evolution and new trends of international trade theory in the digital economy era. The research first reviews the development trajectory from comparative advantage theory to new trade theory, pointing out that traditional theories are insufficient in fully explaining digital trade phenomena. Subsequently, it analyzes the impact of the digital economy on international trade, including the reduction of transaction costs, the promotion of trade in services, and the reshaping of global value chains. The study finds that data flows, platform economies, and digital service trade have become new research foci, giving rise to a series of new theories. These theories emphasize the importance of data as a factor of production and the role of network effects in international competition. However, digital trade also brings new challenges, such as data privacy protection and the digital divide. In response to these challenges, the study proposes policy recommendations for building an inclusive digital trade system. Finally, it outlines future directions for international trade theory research, including frontier issues such as the impact of artificial intelligence on comparative advantage. This study provides a theoretical foundation for understanding and addressing the new patterns of international trade in the digital economy era....
Accelerating to formulate the new development pattern, in which the domestic cycle is the mainstay and the domestic and international cycles are mutually reinforcing, is the national-level strategy for China to achieve the first centenary goal, and then take advantage of the momentum to embark on a new journey to build a modern socialist country toward the second centenary goal. In addition, in the context of increasing domestic demand and deepening opening-up, the construction of the free trade zone (FTZ for short), as an important node connecting the international and domestic markets, will play an important role in promoting the formation of a new economic development pattern with “double cycle”. The main purpose of this paper is to study how China can realize the optimization and upgrading of economic structure and promote the sustainable development through the industrial economy reform of FTZ under the new pattern. According to the main results, we find that the main problems of the industrial economy of FTZs under the new double-cycle development pattern are inadequate planning and design, lack of endogenous impetus for reform and innovation, trade level to be upgraded, inadequate construction of project platforms, and insufficiently attractive business environment. In this regard, it is suggested that the FTZ should be led by digital reform to promote reforms in trade, transportation, capital, labor flow, and investment. At the same time, government should pay enough attention to the overlapping effect, accelerating the construction of the Belt and Road, and promoting the high-level integration of domestic and international markets. Through synergistic innovation, a new pattern of high-level opening-up and high-quality development will be formed....
The increase in executive shareholdings in listed companies serves as a significant form of insider trading and information disclosure, drawing attention from regulatory authorities and external investors. This paper selects executive shareholding increase events in the Shanghai and Shenzhen A-share markets from 2018 to 2022, and employs the event study method to assess their impact on stock prices based on the perspectives of existed shareholders and outside investors. The findings reveal that stock prices tend to decline before the shareholding increase, followed by a short-term rise afterward, indicating potential information leakage. The investors holding shares during the event may experience losses, while new investors might benefit. Further analysis shows that the impact is more pronounced in the Shenzhen stock market, particularly in 2018....
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