ROLE OF CUSTOMS DUTY REGULATION IN THE DEVELOPMENT OF THE FOOD MARKET

The main purpose of the article is to determine the role of customs duty regulation in the development of the food market. In recent years, as in other post-Soviet countries, effective measures are being taken to improve the customs duty policy in the Azerbaijan Republic. The article shows that the implementation of customs tariff protection of the national economy plays an important role in the formation of foreign trade strategy of each country. International experience shows that the United States of America, the European Union and Japan, the most important participants in the world market of agriculture and food products, are implementing important measures to regulate the domestic market through customs tariffs. The article identifies the problems arising in the development of the food market; offers and recommendations for their elimination are presented.

Incentive based regulation of water supply under tariffs limitation

The article browses methods of natural monopolies tariff regulation, applied in Russian Federation and foreign countries for the case of water supply. Three principles for natural monopolies tariff regulation are identified: compromise, compensatory, and Incentive based regulation. One of the Incentive based regulation methods — Yardstick Cost Method — has an advantage of regulated entities labor saving within the tariff protection. The other benefit of the method is the feasibility to grade providers from most to least economic performance and to regulate the economic performance improvement for ineffective providers specifically. Benchmarking of publicly available water supply costs data turned up that the costs of physical resources, amortization and rentals depend on specific conditions of enterprise. Therefore, the water supply costs exclusive of resource cost, amortization and rentals seems to be good as an outcome variable for Yardstick Cost Method. We calculated a formula of approximate functional relationship among three contributors and water supply costs exclusive of resource cost and amortization. The yardstick water supply costs were determined by target performance method applying the formula. Although the formula needs an upgrade, our calculations demonstrate a feasibility of Yardstick Cost Method practice for tariff regulation of Russian water suppliers.

EXPORT-IMPORT POTENTIAL OF THE MOTOR BOAT MARKET OF UKRAINE

Background. The economic crisis caused by the COVID-19 pandemic has revea­led most popular products in the global market among consumers, in particular those for spending leisure time alone. Among them, surprisingly, motor boats were found. In Ukraine, increasing the production of certain types of watercraft may be a chance to save the entire shipbuilding industry. The aim of the article is to analyse the state and the structure of the world and domes­tic markets of motor boats in order to establish possible directions for the development of the export potential of Ukraine. Materials and methods. The methods of logical analysis and generalization of scientific literature, statistical data on the export and import of goods were used; the tools of market analysis of the International Trade Centre (ITC) were applied. Results. The state of the motor boats world market is analysed according to im­port data. The main consumers of these motor boats and trends of theirs changes in 2005–2019 were studied. The data on the motor boats import to Ukraine is provided. The count­ries-exporters of motor boats are considered and their future potential is determined. The data on the motor boats export from Ukraine is given. The level of tariff protection by diffe­rent countries of the world in relation to motor boats from Ukraine is assessed. Conclusion. When planning a strategy for the development of motor boats ex­port, Ukrainian enterprises should take into account that most of the importing countries of motor boats do not impose tariff protection in relation to Ukraine, and where it is pre­sent at a sufficiently high level, there is no significant consumption of motor boats. For the development of a trade partnership in the direction of exporting motor boats, Ukraine should choose the Cayman Islands, the Netherlands, Malta, the United States of America, the British Virgin Islands, France, Gibraltar, Spain, Canada and the Seychelles –the largest consumers of motor boats. Ukraine needs to pay special attention to the Netherlands, Italy and Germany – countries that will hold the leading exporters position of motor boats for a long time. Cooperation with manufacturers of these countries in the global supply chain of motor boats to the world market could be very useful not only for motor boat manufacturers, but also for manufacturers of individual parts and accessoriesfor motor boats.

8. The Common Agricultural Policy

This chapter examines the processes that make up the European Union’s common agricultural policy (CAP), with particular emphasis on how the Community method functions in agriculture and how it upheld for decades the walls of fortress CAP. Today’s CAP bears little resemblance to the system of the 1960s, except for comparatively high tariff protection. The controversial device of price support has largely been replaced by direct payments to producers. The chapter first provides an overview of the origins of CAP before discussing two variants of the Community method in agriculture: hegemonic intergovernmentalism and competitive intergovernmentalism. It argues that the challenge for CAP regulators today is not to prevent a hypothetical comeback to the price-support system or generalized market intervention, but to prevent the fragmentation of the single market through a muddled implementation of greening and the consolidation of uneven regimes of support among member states.

The asymmetric effects of 20 years of tariff reforms on Egyptian workers

After more than two decades of trade liberalization, faced with deep structural problems which were exacerbated by the 2008 financial crisis and culminated in the 2011 Spring Revolution and government change, in 2016 Egypt started to protect some sectors from foreign competition. This paper assesses how tariff reforms during the 1998–2018 period affected the Egyptian labour market by focusing on real wages and job stability (i.e. having a permanent position). The empirical analysis is carried out on worker-level data from the available four waves of Egyptian Labour Market Panel Survey (ELMPS), including the recently released 2018 wave. We find that higher tariff protection tends to worsen labour market conditions, both lowering real wages and decreasing the probability of finding a stable job. Furthermore, tariff changes show remarkable asymmetries. There is a negative and significant correlation between tariffs increases and real wages, while the positive impact of tariff reductions turns out to be negligible and insignificant. Our findings support the view that in Egypt protectionism hampered working conditions, contributing to inequality, while liberalizations did not improve nor deteriorate them.

Explaining World Wine Exports in the First Wave of Globalization, 1848–1938

The objective of this article is to analyze the determinants of world wine exports in the first globalization, taking into account the principal exporting countries and using an extended version of the gravity model. The article distinguishes between ordinary- and high-quality wines. Our econometric results show that wine exports were not affected by the increase in the size of the markets of consuming countries, since in most of them wine was an alcoholic beverage consumed by a very small minority of the population. The harvests of the producing countries, particularly in preceding years, significantly and positively affected their exports. Conversely, the harvests of importers hurt exports as there was a home bias in consumption due to cultural, price, or tariff protection reasons. In the interwar period, the wine trade was severely affected by a series of shocks such as WWI, the Soviet revolution, the Prohibition, and the 1930s depression. As was the case with trade as a whole, the fall in transaction costs, favored exports, at least those of lower-priced and lower-quality wine. However, the liberalization of trade had a lesser impact on wine than on other products. (JEL Classifications: F14, N50, Q13, Q17)

THE POLICY OF ECONOMIC NATIONALISM: FROM ORIGINS TO NEW VARIATIONS OF ECONOMIC PATRIOTISM

The purpose of the paper is to analyse the fundamental principles of the policy of economic nationalism and economic patriotism, its origins, intentions and mechanisms of implementation. The analysis of selected theories allowed for outlining the most essential characteristics, along with identifying the ones laying the fundament for economic nationalism. The main purposes of the policy of economic nationalism and economic patriotism have a similarity: in spite of the common adjective “economic”, they have always gone beyond the boundaries of economic regulation, being a response on “political order” of the time. 21 century offers a lot of evidence to confirm the above thesis. Elements of the economic nationalism in the economic patriotism policy have been demanded by state power officials as a kind of response on the awareness of market failure in striking a new balance in the conditions of the imbalanced global economy, with the growing competition and the shrinking global trade. Methodology. There is a need to reconsider the origins of economic nationalism by making an analysis of the concepts of nationalism, represented by four paradigms: modernism, primordialism, constructivism and perennialism. Results. Use of the term “economic patriotism”, contrary to “economic nationalism” or “neo-mercantilism”, gives vivid evidence of different sources for patriotic intervention in the economy. While the instruments of conservative economic patriotism include classical protectionist measures (in full conformity with the ideology of economic nationalism) aimed at domestic protection for further expansion, and the capacities of protective regionalism are used (when it is pursued by regional associations that have a supranational regulatory body), liberal economic patriotism is implemented by the use of neo-protectionism instruments that are not confined to regulation of foreign trade, but focused on stimulation of economic activities by the use of capacities of internal demand and stimuli to supranational industry (which should not be confused with the industrial sector). Practical implications. The analysis of the essential meaning of the concepts of “economic nationalism” and “economic patriotism” by many classification criteria enables to argue that these categories have a high potential of solidarity. The analysis gives grounds for practical conclusion that economic nationalism meant to form a powerful state that sets up economic priorities and pursues the respective economic policy. According to economic nationalism, the market cannot be self-regulated; moreover, because powerful economies “regulate” the global market for their own advantage, a national state needs to correct market relations. Value/originality. Therefore, economic nationalism can be understood not only in its essential meaning but in its political context as well. Independence as a political goal needs to be distinguished from self-sufficiency as a by-product of policy focused on other objectives. Thus, tariff protection for some industries, introduced to hide political intentions to cut high competitive imports from a country of their origin, will enhance the country’ independence in a direct way. But autarchy is not a direct goal of the tariff protection policy. We determined that liberal economic patriotism is a response to deformation of the classical credo of liberalism “laissez-faire”.