IDEAS home Printed from https://ideas.repec.org/a/bdz/laweco/v4y2025i10p8-14.html

International Risk Early-Warning System Construction and Application for International Pharmaceutical and Chemical Trade: An Empirical Analysis Based on Multi-Source Data Fusion and LSTM-PSO Algorithm

Author

Listed:
  • Die Wang

    (Wuhan Kudahui Trading Co., Ltd., Wuhan 430040, China)

Abstract

International pharmaceutical and chemical cross-border trade is characterized by high compliance requirements, significant market volatility, and long supply chain links. Small and medium-sized foreign trade enterprises (SMEs) generally face the pain points of unpredictable compliance risks, lagging market responses, and insufficient supply chain early warnings. To address these issues, this study focuses on four core risks: compliance, market, supply chain, and credit. A four-dimensional risk assessment framework comprising 23 indicators is constructed. By integrating multi-source data from policies, markets, and enterprises, and optimizing the key parameters of the Long Short-Term Memory (LSTM) network using the Particle Swarm Optimization (PSO) algorithm, an intelligent risk early-warning system based on the LSTM-PSO algorithm is established. An empirical analysis is conducted using the cross-border trade data of Wuhan Kuda Hui Trading Co., Ltd. from 2019 to 2024. The results show that the model achieves a high-risk event early warning accuracy rate of 92.3%, and the lead time for logistics delay risk early warning is extended to 168 hours. After the system is implemented, the incidence of high-risk events in the enterprise decreases from 15.6% to 4.8% (Benamor, W. D., 2022), and in 2024, a loss of 2.16 million yuan is avoided. Moreover, the relevant solutions have been promoted to 12 enterprises in the industry, with an average reduction in risk losses of 37.2%. The study confirms that the LSTM-PSO risk early-warning system can effectively enhance the risk prevention and control capabilities of SMEs in the pharmaceutical and chemical foreign trade sector and has significant practical application and industry promotion value.

Suggested Citation

  • Die Wang, 2025. "International Risk Early-Warning System Construction and Application for International Pharmaceutical and Chemical Trade: An Empirical Analysis Based on Multi-Source Data Fusion and LSTM-PSO Algorithm," Law and Economy, Paradigm Academic Press, vol. 4(10), pages 8-14, November.
  • Handle: RePEc:bdz:laweco:v:4:y:2025:i:10:p:8-14
    DOI: 10.63593/LE.2788-7049.2025.11.002
    as

    Download full text from publisher

    File URL: https://www.paradigmpress.org/le/article/view/1879/1724
    Download Restriction: no

    File URL: https://libkey.io/10.63593/LE.2788-7049.2025.11.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdz:laweco:v:4:y:2025:i:10:p:8-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Editorial Office (email available below). General contact details of provider: https://www.paradigmpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.