Economic Rationale for Manifestations of Asymmetry in the Global Trading System

Tetiana Tananaiko, Olha Yatsenko, Olha Osypova, Vitalii Nitsenko, Tomas Baležentis and Dalia Streimikiene
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Tetiana Tananaiko: Permanent Mission of Ukraine to the United Nations Office and other International Organizations in Geneva, 1202 Geneva, Switzerland
Olha Yatsenko: International Trade and Marketing Department, Kyiv National Economic University Named after Vadym Hetman, 03057 Kyiv, Ukraine
Olha Osypova: Mathematical Modeling and Statistics Department, Kyiv National Economic University Named after Vadym Hetman, 03057 Kyiv, Ukraine
Vitalii Nitsenko: Entrepreneurship and Marketing Department, Ivano-Frankivsk National Technical Oil and Gas University, 76019 Ivano-Frankivsk, Ukraine
Dalia Streimikiene: Laboratory of Energy Systems Research, Lithuanian Energy Institute, 44403 Kaunas, Lithuania

Sustainability, 2023, vol. 15, issue 6, 1-49

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.

Keywords: global trading system; economic sustainability; analysis of variance; econometric analysis; regional trade agreements; level of customs rates; nontariff trade measures; economic development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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