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Begin New Search Topic Economics Content Type Policy Brief Publication Year within 10 Years

31. Impacts of New International Tax System on Multinational Firms’ FDI

Author:
Sangjun Yea
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In this study, I present a theoretical model to quantitatively assess the economics impact of Pillar 1 and Pillar 2, especially focusing on the changes in the FDI patterns of multinational enterprises (MNEs). Pillar 1 offsets the incentives of MNEs' profits-shifting for tax-planning purposes, thereby reducing the inbound FDI into the countries with low corporate income tax rates. Pillar 2 burdens MNEs with 'top-up' taxes attributed from the subsidiaries in low tax countries. As the profits after tax (PAT) of MNEs shrink at the global level, innovation and R&D investment for new products will decrease, and as a result, global FDI flows will hamper.
Topic:
Economics, Foreign Direct Investment, Multinational Corporations, and Tax Systems
Political Geography:
Global Focus

32. Regional Perspectives on the Indo-Pacific Economic Framework

Author:
Matthew Goodman and Aidan Arasasingham
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The proposed Indo-Pacific Economic Framework (IPEF) is the Biden administration’s answer to questions about the United States’ economic commitment to the vital Indo-Pacific region. For this initiative to succeed, it must address concerns among regional partners about the framework’s form, function, benefits, inclusivity, and durability. Based on conversations with representatives from over a dozen regional governments, this brief summarizes Indo-Pacific perspectives on the IPEF.
Topic:
Economics, International Trade and Finance, Regional Cooperation, and Regionalism
Political Geography:
North America, United States of America, and Indo-Pacific

33. Beyond 2025: The Future of the African Growth and Opportunity Act

Author:
Daniel F. Runde and Sundar R. Ramanujam
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Over the past two decades, the United States has provided assistance and support for sub-Saharan Africa’s efforts to transform its economic and trade relationships, centered around the African Growth and Opportunity Act (AGOA). First enacted into law on May 18, 2000, AGOA was designed to significantly enhance designated sub-Saharan African countries’ market access to the United States by providing duty-free treatment for specific import categories. The legislation’s primary goal was to promote economic growth through good governance and free markets. To qualify and remain eligible for AGOA, countries were expected to demonstrate progress toward market liberalization and to improve the rule of law, human rights protections, and core labor standards. More than 20 years later, AGOA continues to provide preferential treatment to 44 countries in the region, spanning over 6,500 tariff lines. Since May 2000, AGOA has been amended four times, mostly to clarify preferential treatment terms, technical standards, and sunset deadlines. The act was initially designed to be valid for eight years, expiring at the end of September 2007. In July 2004, however, President George W. Bush signed the AGOA Acceleration Act, extending it to 2015. Toward the end of his second term, in June 2015 President Barack Obama extended its validity by signing the Trade Preferences Extension Act, under which AGOA is set to expire in 2025. The global political and economic landscape has changed profoundly since AGOA was enacted in 2000, even before the Covid-19 pandemic created new disruptions and accelerated several ongoing changes. The mobile telephony revolution has created new opportunities for millions to participate in the digital sphere, use mobile banking and payments systems, and receive commercial, educational, and medical services via the internet. Even as the sub-Saharan African region’s middle class continues to grow, it is also set to experience a youth population boom in the next three decades—which, under the right conditions, could pay a demographic dividend and avert a social crisis. Meanwhile, the United States has also entered an era of great-power competition with China. With China’s influence in sub-Saharan Africa rising significantly, this competition is also playing out through the region’s political and economic institutions. Considering these opportunities and challenges, leaders in Washington (and their constituents across the United States) ought to look at Africa as a prospect for deepening commercial partnerships, not as a continent that needs to be “saved” through foreign assistance. Accordingly, the United States can consider one of the three following scenarios in response to AGOA’s current expiration timeline
Topic:
Development, Economics, International Cooperation, and International Trade and Finance
Political Geography:
Africa

34. Unfair Trade or Unfair Protection? The Evolution and Abuse of Section 301

Author:
Scott Lincicome, Inu Manak, and Alfredo Carrillo Obregon
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Section 301 of the Trade Act of 1974 gives the U.S. trade representative (USTR) broad authority to investigate “unfair” foreign trade policies allegedly harming American companies and to impose tariffs or other trade restrictions to achieve the removal of those policies. The statute was a common tool of U.S. trade policy from the 1980s to the 1990s, authorizing the USTR to conduct almost 100 different investigations during that period. Since the World Trade Organization (WTO) was established in 1995, however, the USTR has used Section 301 infrequently and almost exclusively to initiate or implement WTO dispute settlement actions—actions that, per WTO rules, were supposed to supplant the kinds of unilateral trade actions once applied under the law. The Trump administration departed from this long‐​standing U.S. practice and took advantage of Section 301’s flaws to circumvent the WTO and enact unilateral tariffs against multiple U.S. trading partners, imposing significant economic and geopolitical costs along the way. This paper examines the Trump administration’s actions in historical context, evaluates how the law was stretched beyond its intended purpose in direct contravention of the United States’ WTO obligations, and offers practical reforms to prevent future abuse.
Topic:
Economics, Legislation, Trade, Protectionism, and WTO
Political Geography:
North America and United States of America

35. The State of the Creator Economy – Assessing the economic, societal, and cultural impact of YouTube in the US in 2021

Author:
Oxford Economics
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Oxford Economics
Abstract:
This study presents an updated assessment of YouTube’s contribution to US GDP and employment, and its broader impact on society and culture.
Topic:
Economics, Mass Media, Employment, Social Media, and YouTube
Political Geography:
North America and United States of America

36. Economic Equidistance is Not an Option: Germany and the US-Chinese Geo-Economic Conflict

Author:
Markus Jaeger
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Intensifying US-Chinese rivalry will increase pressure on Germany to support a more hawkish US geo-economic policy. The new ­German government should give Washington support in as far as US policies seek to create an economic level playing field vis-à-vis China. Given its dependence on international trade and investment, Germany should seek to resist a broader politicization of inter­national economic relations.
Topic:
Economics, International Trade and Finance, Geopolitics, and Rivalry
Political Geography:
China, Germany, and United States of America

37. Japan's "Economic Security" Measures

Author:
Didi Kirsten Tatlow and Afra Herr
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Japan and Germany face an acute dilemma. China, a key trading partner for both nations, uses political warfare and economic statecraft to advance its interests. Like Germany, Japan has a strong SME economy and auto industry, and has dependencies on China. Yet Japan faces more risk due to its geographical proximity to China and territorial disputes. As global tensions grow, Japan is responding robustly by building economic security. Germany, together with the EU and other like-minded partners, should do the same.
Topic:
Security, Economics, Politics, and Trade
Political Geography:
Japan, China, Asia, and Germany

38. Promoting the Euro – Countering Secondary Sanctions: Germany Should Push to Complete Monetary Union

Author:
Markus Jaeger
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
US-Chinese rivalry will increasingly play out in the geo-economic realm. The use of secondary sanctions – especially secondary dollar sanctions – negatively affects German economic interests. The new German government should therefore intensify efforts to promote the euro as an international currency coequal to the dollar in addition to lending its qualified support to EU anti-coercion policies.
Topic:
Economics, Sanctions, European Union, Rivalry, and Geoeconomics
Political Geography:
China, Asia, and United States of America

39. Early warning: How Iraq can adapt to climate change

Author:
Nussaibah Younis
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Iraq is at high risk of suffering the worst effects of the climate crisis, including soaring temperatures and acute water scarcity. As land suitable for farming shrinks and rural jobs disappear, ordinary Iraqis are moving to cities in search of work. This increases pressure on services, pushes up food prices, and exacerbates social tensions, leading to protests and even violence. Iraq’s weak internal governance prevents it from improving water management, managing inter-provincial and inter-tribal conflict, and attracting investment and expertise to create new green-economy jobs and adapt to the changing climate. Public awareness of climate risks is growing, but too few political leaders prioritise the issue. Iraq has long struggled to reach agreement on water issues with upstream states Turkey and Iran, which are building dams that affect supply to Iraq; they also believe that Iraq manages water badly. Similar issues complicate relations between Baghdad and the Kurdistan region. Iraqis and Europeans should work together to improve Iraq’s poor governance and consider measures such as establishing an ‘early warning’ system about potential conflict arising from climate effects.
Topic:
Climate Change, Economics, Politics, and Governance
Political Geography:
Iraq, Europe, and Middle East

40. Survive and thrive: A European plan to support Ukraine in the long war against Russia

Author:
Piotr Buras, Marie Dumoulin, Gustav Gressel, and Jeremy Shapiro
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Russia’s war on Ukraine is likely to last many years, even if the violence may subside at times. To sustain Ukraine during this conflict, Europeans should draw up a four-part ‘long-war plan’. This plan would comprise military assistance to Ukraine in the form of a ‘security compact’; security assurances that respond to scenarios of Russian escalation; economic support, giving Ukraine access to the EU’s single market; and help to secure Ukraine’s energy supply. Besides its practical impact, this plan will signal Europeans’ commitment to assisting Ukraine, showing Kyiv, Moscow, and the wider global community that the EU is in it for the long haul. The long-war plan will also provide clarity to anxious publics in member states. Together, these proposals would protect Ukraine’s sovereignty and territorial integrity and help create the long-term conditions for a resolution to the war – if and when a more constructive attitude emerges in the Kremlin.
Topic:
Security, Economics, Conflict, Military, Energy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine