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This article investigates the dynamics of export diversification, economic complexity and economic growth cycles. By applying several econometric techniques for estimating a panel data set of 70 economies over the period from 1996 to 2014, the results have been threefold. First, there is Granger bi-directional causality between economic complexity and export diversification, while unidirectional Granger causality exists from economic complexity to economic growth cycles. Second, the result attained from the three-stage least squares estimate demonstrates that economic complexity and export diversification significantly impact each other. Notably, the effect of economic complexity is found to be negative on economic growth cycles, implying that the dynamics of economic complexity and export diversification generate a reduction in economic fluctuations. Third, by splitting the sample into two subsamples (i.e., 32 high-income economies and 38 low- and middle-income economies) and two sub-periods (i.e., 1994–2007 and 2008–2014), the results show that the positive dynamics between economic complexity and export diversification are consistent with income levels and time periods. However, the negative impact of economic complexity on economic growth cycles is statistically significant only for the group of high-income economies and during the 1996–2007 period. These findings are checked by several estimators and different proxies of export diversification, economic growth cycles and economic complexity.JEL: F13, F14, O19, E32

In recent years, trade in intermediate goods has increased manifold with the emergence of global value chains (GVCs). China has emerged as one of the leading countries in the whole GVC network; many countries, including the USA, are heavily dependent on China for the intermediates in the manufacturing sector. The outbreak of COVID-19 and the subsequent lockdowns in many countries, including China, have disrupted the supply in GVCs. This situation has led to the search for alternative markets for intermediates for the sustainable-production process. This study looks at how India can be an alternative avenue for the USA in place of China in the GVC network. It investigates the extent of participation of the countries under study in the GVCs and the gains resulting from it. The main focus of the research is to determine the emerging opportunities for India in GVCs, through correlating the USA industries which are vulnerable to disruption in GVCs as caused by China to those industries of India in which India enjoys a comparative advantage. The analysis reveals that in the ‘textiles, wearing apparel, leather and related products’ and ‘chemicals and non-metallic mineral products’ industries, India could be a replacement of China for the USA.JEL Codes:F10, F13, F15

After a run of adverse investor-state dispute settlements, India has recently denounced all its erstwhile investment treaties. New investment treaties need to be negotiated on the basis of a new Model Treaty that privilege state rights over investor rights. We study the impact of bilateral investment treaties on foreign direct investment (FDI) inflows into India before the denunciation with the intent of inferring the consequences of changing the system. Our work captures the effects of international investment agreements on FDI inflows specifically into India. We construct an empirical model drawing on the Gravity Model, and estimate parameters using generalised method of moments. The results show that while the individual signing of bilateral investment treaties does not influence the inflow of FDI, the effect of the cumulative bilateral investment treaties signed is statistically very significant—suggesting that the spill over effect of signing a series of bilateral investment treaties are important, signalling a regime of overall protection to investors. The importance of institutional variables in influencing FDI tells us that overall participation in a system governed by international investor agreements influenced the inflow of FDI positively and therefore recent policy changes should be viewed with caution.JEL Codes:F21, F23, F550, F63, K33, O19, C22, C29

Soumyen Sikdar, Ramesh Chandra Das and Rajib Bhattacharyya (Eds), Role of IT–ITES in Economic Development of Asia: Issues of Growth, Sustainability and Governance. Springer, 2020, pp. 329, Ä109.99 (Hardback), Ä79.99 (Paperback), ISBN 978-981-15-4205-3.

To achieve the goals of sustainable development, it is crucial to check the balance of increased level of international trade along with financial development, foreign direct investment (FDI), energy consumption, and institutional advancement with the quality of the environment. This study focuses on how these variables have caused environmental degradation in China. To achieve Goal 13 of the Sustainable Development Goals (SDGs), i.e. to increase the nation’s resilience to natural disasters and hazards related to climate change, to promote climate action and safeguard life as part of sustainable development, this involves the analysis of time-series data sets from 1975 to 2021 and the use of the dynamic version of ARDL (Autoregressive Distributed Lag) cointegration or simulation model. The results show that FDI is essential for lowering carbon dioxide (CO2) emissions over the long term, but financial development, the volume of international trade, and the level of energy use or consumption contribute to environmental deterioration. Moreover, China's environmental degradation is decreased by high institutional quality. To accomplish the SDGs and reduce environmental degradation, it is essential to take into account how these elements interact and to adopt a holistic strategy that includes regulations, policies, and education. On the basis of our trustworthy findings, suggestions are made to keep the sustainable development.