International Journal of Trade and Global Markets (8 papers in press)

Regular Issues

• Modelling of a regional industry specialisation: the impact of agglomeration economies on labour productivity  
  by Angi Skhvediani, Sergey Sosnovskikh, Tatiana Kudryavtseva, Stella Nalwanga 
  Abstract: Localisation economies are known to boost the regional economy and its growth potential. The emergence of these effects is due to localised knowledge flows, the closeness to markets, and the diversity of services and industries. Localisation economies have the potential to increase the productivity of firms. While many studies have been conducted at the industry or regional level, this paper adds to the existing literature by investigating the impact of agglomeration economies on labour productivity with the case of Russian regions during the period 20092018. Our findings suggest contradicting results toward existing studies. We have found a negative impact of externalities on labour productivity. This is due to the Russian business and economic peculiarities and institutional factors, such as disrupted territorial-industrial complexes, uncompetitive industries, under-developed infrastructure, and lack of state funding.
  Keywords: agglomeration effect; government; industrialisation; industrial cluster; innovation; investment; labour productivity; localisation economy; manufacturing sector; regional economy; Russia.
  DOI: 10.1504/IJTGM.2022.10047538
   
  
• The Impact of Investment on Environmental Quality: Evidence from Indonesian Provinces  
  by Irwan Trinugroho, Aldy Fariz Achsanta, Putra Pamungkas, Sajidan Sajidan 
  Abstract: The impact of foreign direct investment (FDI) on environmental degradation has been a main issue in the investment-environment nexus. FDI channeled to non-environmentally friendly industries most likely accelerate environmental degradation. We focus on investigating the effect of FDI on environmental degradation by examining FDI in Indonesia across provinces. To measure the severity of air pollution in each province, we use two proxies of environmental degradation: the Environmental Quality Index (EQI) and Air Quality Index (AQI). A panel data technique is applied to a panel of 34 provinces, resulting in 164 province-year observations employed in the empirical estimation. We also disentangle investment as the main explanatory variable, not only foreign but also domestic investment. Our results indicate that both domestic investment and FDI are positively associated with environmental degradation, implying that most of these investments are channeled into the sector with high negative externalities, resulting in a decline in environmental quality.
  Keywords: foreign direct investment; domestic investment; environmental quality index; air quality index; Indonesia.
  DOI: 10.1504/IJTGM.2023.10057716
   
  
• Digital Opportunity Assessment in International Markets  
  by Ilke Kardes, Joanne M. Tran, Manisha Mathur, Leisa R. Flynn, Michael T. Dugan 
  Abstract: This study examines external environmental factors (political/legal, socio-economic, and technological) most strongly associated with e-commerce sales in emerging vs. developed markets. This study uses longitudinal archival data and conducts a partial least squares-structural equation modeling to investigate the impact of environmental factors. The results indicate that technological factors, among others, are the most associated with e-commerce sales in both emerging and developed markets. There is no significant difference between the two country groups regarding the association of political/legal factors with e-commerce sales. Socio-economic factors are more highly associated with e-commerce sales in emerging markets than in developed countries. This study extends the previous literature by combining market opportunity analysis with the PEST framework to assess digital opportunities in international markets. Furthermore, the study uses partial least squares-structural equation modeling to compare developed countries with emerging markets.
  Keywords: E-commerce; emerging markets; developed markets; PEST analysis.
  DOI: 10.1504/IJTGM.2023.10059836
   
  

Special Issue on: XV International Conference Emerging Regions and Cities Development Policy and Governance in the Age of Uncertainty

• Economic contribution and social effects of youth volunteering in the early period of the Covid-19 pandemic. Case of a large Russian region  
  by Maria Pevnaya, Viola Larionova, Elizaveta Pevnaya 
  Abstract: The article analyzes the problem of youth volunteer participation in the early period of the pandemic. Based on the data of a sociological survey of young people in a large Russian region, the Sverdlovsk region, a descriptive characteristic is given to the volunteer youth community that took part in the #WeTogether event organized at the national level of the Russian Federation. The purpose of this article is to assess the economic contribution and highlight the social characteristics of young volunteers in the early period of the pandemic who worked in a large Russian region. To achieve this goal, this article describes the #WeTogether volunteer movement in the Sverdlovsk region, young volunteers and their key social characteristics. In accordance with the ILO methodology, the economic contribution to overcoming the difficulties of the pandemic of student youth who have joined the volunteer movement in conditions of social constraints and uncertainty is calculated.
  Keywords: youth volunteering; economic impact of volunteering; social participation; pandemic; youth.
  DOI: 10.1504/IJTGM.2023.10054352
   
  
• "Invisible" single-industry towns in Russia  
  by Irina Antonova, Veronika Sokolova, Irina Turgel, Aksanat Panzabekova 
  Abstract: This study discusses the phenomenon of “invisible” single-industry towns in Russia and their economic transformations in the light of the lock-in effects they are facing. The economy of a single-industry town is usually dominated by the so-called town-forming enterprise, even though the latter is often a branch or subdivision of the head enterprise located outside of the town. The study proposes an original way for reconstructing the data on revenues, fixed assets and wages which usually remain hidden in the reports of head enterprises. The resulting models indicate that such indicators as the residual activity of enterprises in single-industry towns and the number of these enterprises retain the “memory” of the town-forming enterprise. Such “memory” becomes a lock-in factor impeding single-industry towns’ economic transformation. The proposed models and the reconstructed data increase the visibility of the Russian single-industry towns on the map of economic activity.
  Keywords: single-industry town; invisible economic activity; revenues share; concentration; town-forming enterprise.
  DOI: 10.1504/IJTGM.2023.10054446
   
  
• Impact of Network Interaction on Quality of Higher Education in CIS Countries  
  by Svetlana Balashova, Svetlana Revinova 
  Abstract: Our study's objective is to define Network Interaction opportunities in increasing the quality of higher education, the social capital rise of the educational process participants in CIS countries, considering the increasing role of ICT. We made an in-deep study of the CIS Network University and define the opportunities and challenges of network interaction for each actor of the educational process (students, professors, departments, universities). We focused attention on the impact of network interaction on the social capital of students and professors. It is shown that the forced accelerated digitalization of the educational process caused by COVID19 more prominently demonstrated the benefits and challenges of network interaction. Digitalization reduces barriers to participation in the networked educational process for both the student and the professor. On the other hand, the digital divide between the CIS countries does not allow obtaining these advantages and complicates raising higher education quality via network interaction.
  Keywords: higher education; network interaction; digitalization; social capital; CIS countries; COVID-19 restrictions.
  DOI: 10.1504/IJTGM.2024.10056332
   
  
• Factors influencing the initiative budgeting development in Russian regions  
  by Valentina Derbeneva, Dmitry Gladyrev, Natalia Starodubets, Jacek Binda 
  Abstract: Initiative budgeting as a form of civil participation in the budget process is becoming an increasingly popular tool for involving the population in decision-making at the local level. The purpose of this study is to identify stimulating and discouraging factors affecting the initiative budgeting development in Russian regions. To assess the factors, the article uses a spatial approach to civil participation in budgetary issues in the categories of static and dynamic spaces. The study applies conventional linear econometric regression to assess the impact of external factors. As a result, it was revealed that the initiative budgeting development in the regions is largely determined by the level of democratism in the implementation procedures of initiative projects. The model results showed that the average salary in the region has a positive effect on the amount of budgetary allocations for initiative budgeting projects.
  Keywords: initiative budgeting; participatory budgeting; public participation; budget; e-government; e-participation; citizen participation; budget expenditures; efficiency of public administration; investment.
  DOI: 10.1504/IJTGM.2024.10060126
   
  
• Accounting aspects of measuring economic activity of countries and regions with GDP  
  by Wojciech Koziol, Oxana Cherkasova 
  Abstract: The article deals with the issue of measuring the economic activity of countries. The dominant measure of this is the GDP indicator. This indicator is subject to constant criticism due to the lack of proper interpretation, which is regularly encountered in practice, and the incomplete and often incorrect identification and valuation of the economic values. The aim of the article is to analyze the potential of accounting practice in improving the method of measuring GDP. Realizing the objective of the paper, a proposal was formulated to reform the GDP measurement system in order to base it on data from financial statements of every company and statistical reports of micro-enterprises that only conduct tax accounting. The suggested method of measuring GDP should be an income (cost) method due to its compatibility with the reporting data. The article presents a postulate to popularize the labor productivity index integrated with GDP, which can provide reliable and fully comparable information
  Keywords: GDP; GDP measurement; accounting; labor productivity; income (cost) method.
  DOI: 10.1504/IJTGM.2024.10061024