International Journal of Trade and Global Markets (7 papers in press)

Regular Issues

• Do institutions matter in global trade? Evidence from high-income countries and their spillover effects on Indonesia  
  by Muhammad Rizal Anggit Putra, Suryanto, Bhimo Rizky Samudro 
  Abstract: This study analyses the influence of institutions on trade openness in 16 high-income countries (HICs) that are Indonesias main trading partners, and their spillover effects on Indonesia using panel-error correction model (ECM) and Granger Causality test. The short-term estimation results show that corruption perception index (CPI), income per capita, foreign direct investment (FDI) outflow, and carbon emissions have a positive effect on trade openness, while military spending has a negative effect. The long-run analysis shows that government effectiveness, CPI, and military expenditure have a positive influence, while income per capita, FDI outflow, and carbon emissions have a negative impact on trade openness. Furthermore, the Granger causality test shows that the UAEs trade openness affects Indonesias gross domestic product (GDP), while China and Singapore influence its FDI inflows. Additionally, increased openness in several countries leads to higher carbon intensity in Indonesia. These results suggest that Indonesia and other developing countries should promote exports with a higher added value and greener production.
  Keywords: carbon emission; CPI; corruption perception index; FDI; foreign direct investment; HICs; high-income countries; military; trade openness.
  DOI: 10.1504/IJTGM.2025.10075100
   
  
• Stock liquidity and stock price crash risk  
  by Bambang Sutrisno, Irwan Trinugroho, Taufiq Arifin, Tastaftiyan Risfandy 
  Abstract: Weak governance and high levels of volatility are characteristics of developing markets. Analyzing stock price crash risk in these markets is crucial. We explore how stock liquidity impacts crash risk in Indonesia. Using 556 listed firms for 2011-2020 (3,937 observations), this study reveals that crash risk is positively influenced by stock liquidity. This result aligns with the short-termism theory that high stock liquidity strengthens short-term pressure on corporate management, especially when investors are short-term outcome-oriented. In this situation, managers are more motivated to maintain short-term performance even by hiding negative information, which raises crash risk. Our primary finding remains robust based on several robustness tests. Additionally, this study reveals that the stock liquidity-crash risk link is moderated by foreign ownership.
  Keywords: stock price crash risk; stock liquidity; foreign ownership; short-termism theory; bad news hoarding; emerging markets; Indonesia.
  DOI: 10.1504/IJTGM.2025.10075189
   
  
• Globalisation and urban-rural consumption disparity nexus in Pakistan: a provincial perspective  
  by Jabbar Ul-Haq, Asrorzoda Ubaidullo Sattor, Hubert Visas, Sadriddinov Manuchehr Islomiddinovich, Kainat Hameed 
  Abstract: In the current academic literature, it is rare to find a Pakistan specific study that explores regional disparity through the lens of globalisation. This paper examines the effects of Globalisation on regional disparity in consumption using micro-level data from Pakistan. As Consumption expenditure is regarded as a more direct and precise indicator of long-term earning ability than current income, it is used in this study as a measure of regional disparity. We investigate the regional variations in the effectiveness of trade policies that aim to reduce import tariffs. The results show that trade liberalisation and regional disparity in consumption are associated. In this country-specific study, globalisation widens the gap between urban-rural consumption expenditures. Regions more exposed to globalisation have higher levels of consumption inequality. Empirically lagged trade policy and regional disparity are also correlated. Our results are robust after incorporating other geographical control variables. The government should focus on a policy that reduces the urban-rural education gap, improves the skills by training rural migrant workers, and accelerates urbanisation policy to achieve a sustainable reduction in urban-rural disparities.
  Keywords: regional disparity; globalisation; regional analysis; urbanisation; educational disparity; family income; Pakistan.
  DOI: 10.1504/IJTGM.2025.10075405
   
  
• Mapping the trends and themes of global sourcing research using bibliometric analysis  
  by Shalini Singh 
  Abstract: Global sourcing is at its rampant stage and enabling companies to attain a competitive advantage. Noteworthy research developed in global sourcing reveals versatile trends and concepts. This paper aims to analyse relevant past research done in the global sourcing area. To identify the trends and themes of global sourcing research using bibliometric and content analysis. This technique has been applied using the Biblioshiny of Bibliometrix package of R Studio on the Scopus data of 825 papers published between the years 1981 to 2024. Results indicate the elaboration of bibliographic information and relevant content of the retrieved data. Results obtained from this study are visualised in the form of bibliographic coupling, cooccurrence, co-citation, collaboration, trends analysis, and thematic evolution. This study provides comprehensive knowledge of the research of global sourcing and provides significant implications for both researchers and practitioners. This study adds value by elaborating bibliographic data of global sourcing research.
  Keywords: sourcing; globalisation; bibliometric review; content analysis; thematic evaluation; trends analysis.
  DOI: 10.1504/IJTGM.2025.10075408
   
  

Special Issue on: SIBR 2024 Structural Changes in International Finance, Trade, and Entrepreneurship

• Dynamical linkages between volatility index and stock markets in ASEAN + 6 during economic uncertainty  
  by Surachai Chancharat, Pichakorn Sithigon 
  Abstract: This study examines the relationship between the volatility index (VIX) and stock market indices in the ASEAN + 6 countries from daily stock market data from January 2, 2017, to December 30, 2022. The study is divided into two periods: the years 2017 to 2019, considered a regular period, and the years 2020 to 2022, considered a period with the coronavirus pandemic (COVID-19). This study utilises the generalised autoregressive conditional heteroscedastic (GARCH) and the threshold GARCH (TGARCH) models. The results of the analysis indicated an inverse relationship between volatility indices and stock market indices in the ASEAN + 6 countries.
  Keywords: COVID-19; GARCH; generalised autoregressive conditional heteroscedastic; stock market; uncertainty; VIX; volatility index.
  DOI: 10.1504/IJTGM.2025.10073660
   
  
• Bitcoin as a safe haven for portfolio diversification  
  by Sarita Meekoh, Parichat Sinlapates 
  Abstract: Global events including the COVID-19 epidemic, the conflict of Russia-Ukraine, and the Israel-Palestine conflict directly affect the economy, increasing volatility. Diversifying risk across asset classes using safe-haven assets offer protection to investors during a financial uncertainty period. During economic uncertainty, investing in Bitcoin helps disperse risks across asset classes. Hence, this research aims to examine the capacity of Bitcoin to function as a safe-haven asset. The period of study is segmented into four distinct periods: pre-events affecting the economy, the COVID-19 epidemic, the conflict of Russia-Ukraine, and the Israel-Palestine conflict. The exponential generalised autoregressive conditionally heteroskedastic (EGARCH) approach is employed to analyse the correlation and volatility concerning other asset values. The analysis revealed a positive relationship between Bitcoin and gold, during the COVID-19 epidemic. Bitcoin could function as a safe-haven asset throughout these specific periods. In the Russia Ukraine conflict and the Israel-Palestine conflict, Bitcoin and gold did not exhibit a correlation.
  Keywords: Bitcoin; safe-haven; portfolio diversification; financial crisis; cryptocurrency; alternative investment.
  DOI: 10.1504/IJTGM.2025.10073892
   
  
• Firms adoption of robust internal compliance programs to navigate global trade in dual-use items  
  by Val-Thida Ramasoot, Sanong Ekgasit, Tatri Taiphapoon, Jakkrit Thavorn 
  Abstract: Global trade in dual-use items has increasingly widespread used, expanding in goods and technologies with civilian and military applications. An internal compliance program (ICP) is essential for traversing international export control regulation. This study applied a quantitative method to examine factors influencing ICP adoption and its impact on firm performance of ICP. The analysis, from 200 firms, employed confirmatory factor analysis (CFA) and structural equation modelling (SEM). The results show that external regulatory frameworks (ERF) had the strongest positive effect on ICP adoption, while supply chain influence (SCI) had a negative influence. The ICP adoption improved compliance and performance. The findings offer policymakers practical guidance for enhancing compliance and operational efficiency.
  Keywords: export control; internal compliance program; dual-use items; strategic trade control; corporate governance; regulatory frameworks; supply chain; CSR; ESG; international trade.
  DOI: 10.1504/IJTGM.2025.10075101