The purpose of this paper is to identify the emergence of indirect trade flows prompted by the export interaction of the world’s economies. Using data on exports from the United Nations Conference on Trade and Development (UNCTAD) for the period 2016–2021, we construct an international trade network which is analyzed through the “forgotten effects theory” that identifies tuples of countries with an origin, intermediary countries, and a destination. This approach intends to spotlight something beyond the analysis of the direct trade network by the identification of second and third-order paths. The analysis using both network analyses, as well as the forgotten effect approaches, which show that the international trade network presents a hub-and-spoke behavior in contrast to most extant research finding a core-periphery structure. The structure is then comprised of three almost separated trade networks and a hub country that bridges commerce between those networks. The contribution of this article is to move the analysis forward from other works that utilize trade networks, including those of econometric nature—such as the ones based on gravity models—by incorporating indirect relationships between countries, which could provide distinctive and novel insights into the study of economic networks.
Jurisprudential developments on the purpose of WTO suspension of obligations J A I M E T I J M E S 'If you don't know what you want, you end up with a lot you don't'. Chuck Palahniuk, Fight ClubAbstract: This article examines World Trade Organization (WTO) jurisprudence on the question as to if the purpose of suspending concessions or other obligations is to induce compliance, to rebalance concessions, or both. WTO jurisprudence on this issue can be systematized into three steps. First, inducing compliance is the general purpose of suspension as complaining parties have the right to request the authorization to suspend concessions or other obligations as long as they meet the requirements spelled out in the WTO Dispute Settlement Understanding. The second step relates to the level of suspension. In general, WTO jurisprudence has accorded a higher hierarchy to the purpose of rebalancing concessions or other obligations, with some exceptions made regarding disputes on prohibited subsidies and diachronically variable suspension levels. As a third step, WTO jurisprudence has bestowed complaining Members freedom concerning the suspension's content, so as to induce the defending party to comply. Keeping these three steps in mind will hopefully make understanding WTO jurisprudence on suspension of concessions or other obligations easier.
PurposeThrough the Belt and Road Initiative (BRI), China has built bilateral relations with Latin American states. The purpose of this article is to explore the potential for using the Pacific Alliance (PA) as a negotiating frame as regards the Belt and Road Initiative.Design/methodology/approachWe use a descriptive and analytical methodology to recapitulate and analyze the factual and normative background of Latin American economic integration during the last three decades, a process that so far has culminated in the Pacific Alliance (PA) and an emphasis on the Asia–Pacific region.FindingsWe contend that the PA has been a learning process in terms of economic cooperation. In addition, it is a Latin American economic integration project that emphasizes its focus on the Asia–Pacific region. Considering the nature of BRI projects, as well as Latin American states’ and China’s interests, we contend that it would be beneficial if Chile, Colombia, Mexico, and Peru, the members of the PA, and China channeled their BRI relations through the PA. Thus, the PA should be China’s negotiating partner.Originality/valueSo far, the Belt and Road Initiative (BRI) in Latin America has been built upon bilateral relations. This article explores the possibility of developing the BRI through the Pacific Alliance (PA).
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