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Begin New Search Topic International Political Economy Political Geography Europe Content Type Working Paper Publication Year within 25 Years

1. Challenges to Transatlantic Digital Infrastructure: An EU Perspective

Author:
Anselm Küsters, André Wolf, and Eleonora Poli
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Recent disruptions in the Baltic Sea and elsewhere highlight the integral role of digital and physical conduits such as gas pipelines, telecommunications cables and undersea data cables in maintaining European connectivity and security. Overall, the EU’s responses to emerging challenges to its digital sovereignty, particularly from China and Russia, aim to enhance the security and resilience of its digital landscape, from the Global Gateway Strategy to the Gaia-X project. However, the complexity of the submarine cable infrastructure requires a broader and more holistic assessment of the opportunities and obstacles to ensuring the uninterrupted flow of information across borders. Ultimately, a concerted transatlantic effort is needed to strengthen the backbone of Europe’s digital infrastructure against both man-made and natural adversities, thereby securing a future where sovereignty and resilience are paramount for both the EU and the US.
Topic:
International Political Economy, Politics, Infrastructure, European Union, Institutions, Transatlantic Relations, and Digital Policy
Political Geography:
Europe

2. Chips: EU’s Ambition in a Transatlantic Technology Bridge

Author:
Nicola Bilotta
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are vital building blocks of digital technologies. In line with its aspiration for strategic autonomy, the EU has recognised vulnerabilities in its chip supply chain, which heavily relies on foreign firms. The intricate relationship between economic security and open trade underlies the EU’s quest to bolster its domestic capacity while enhancing connections with key global partners. Despite the challenges of finding a policy balance, fostering transatlantic cooperation in the semiconductor domains remains a key ambition. To cultivate a more balanced and effective partnership with the US, the EU should capitalise on its comparative advantages to amplify and fortify its strategic positioning in the global supply chain.
Topic:
International Political Economy, Science and Technology, Governance, European Union, Transatlantic Relations, and Industry
Political Geography:
Europe

3. Trade Liberalization along the Firm Size Distribution: The Case of the EU-South Korea FTA

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have gained from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.
Topic:
Economics, International Political Economy, Treaties and Agreements, Tariffs, and Trade
Political Geography:
Europe, South Korea, and European Union

4. Risk Shocks and Divergence between the Euro Area and the US in the aftermath of the Great Recession

Author:
Thomas Brand and Fabien Tripier
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
Highly synchronized during the Great Recession of 2008-2009, the Euro area and the US have diverged in the period that followed. To explain this divergence, we provide a structural interpretation of these episodes through the estimation for both economies of a business cycle model with financial frictions and risk shocks, measured as the volatility of idiosyncratic uncertainty in the financial sector. Our results show that risk shocks have stimulated US growth in the aftermath of the Great Recession and have been the main driver of the double-dip recession in the Euro area. They play a positive role in the Euro area only after 2015. Risk shocks therefore seem well suited to account for the consequences of the sovereign debt crisis in Europe and the subsequent positive effects of unconventional monetary policies, notably the ECB’s Asset Purchase Programme (APP).
Topic:
Debt, Economics, International Political Economy, Global Recession, Finance, Europe Union, Economic Growth, and Risk
Political Geography:
United States, Europe, and Global Focus

5. Firm Profits and Government Activity: An Empirical Investigation

Author:
Petar Jolakoski, Branimir Jovanovic, Joana Madjoska, Viktor Stojkoski, and Dragan Tevdovski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
If firm profits rise to a level far above than what would have been earned in a competitive economy, this might give the firms market power, which might in turn influence the activity of the government. In this paper, we perform a detailed empirical study on the potential effects of firm profits and markups on government size and effectiveness. Using data on 30 European countries for a period of 17 years and an instrumental variables approach, we find that there exists a robust relationship between firm gains and the activity of the state, in the sense that higher firm profits reduce government size and effectiveness. Even in a group of developed countries, such as the European countries, firm power may affect state activity.
Topic:
Development, Economics, Government, International Political Economy, and Profit
Political Geography:
Europe and Global Focus

6. Interrelationships between Human Capital, Migration and Labour Markets in the Western Balkans: An Econometric Investigation

Author:
Michael Landesmann and Isilda Mara
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The South-North migration corridor, i.e. migration flows to the EU from Africa, the Middle East and EU neighbouring countries in the East, have overtaken the East-West migration corridor, i.e. migration flows from Central and East European countries to the EU15 and the European Free Trade Association (EFTA). This is likely to dominate migration flows into the EU+EFTA over the coming decades. This paper applies a gravity modelling approach to analyse patterns and drivers of the South-North migration corridor over the period 1995-2020 and explores bilateral mobility patterns from 75 sending countries in Africa, the Middle East and other EU neighbours to the EU28 and EFTA countries. The study finds that income gaps, diverging demographic trends, institutional and governance features and persisting political instability, but also higher climate risks in the neighbouring regions of the EU, are fuelling migration flows along the South-North corridor and will most likely continue to do so.
Topic:
Economics, International Political Economy, Migration, Labor Issues, European Union, Human Capital, and Labor Market
Political Geography:
Europe

7. Wealth and Shifting Demand Pressures on the Price Level in England After the Black Death

Author:
Anthony Edo and Jacques Melitz
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
The scale of the rise in personal wealth following the Black Death calls the life-cycle hypothesis of consumption into consideration. This paper shows for the first time that the wealth effect of the Black Death on the price level continued in England for generations, up to 1450. Indeed, in absence of consideration of the wealth effect, other influences on the price level do not even appear in the econometric analysis. The separate roles of coinage, population, trade, wages and annual number of days worked for wages all also receive attention and new results follow for adjustment in the labor market.
Topic:
Economics, International Political Economy, Infectious Diseases, Population, Trade, and Labor Market
Political Geography:
Europe and England

8. COVID-Induced Sovereign Risk in the Euro Area: When Did the ECB Stop the Contagion?

Author:
Aymeric Ortmans and Fabien Tripier
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper studies how the announcement of the ECB’s monetary policies stopped the spread of the COVID-19 pandemic to the European sovereign debt market. We show that up to March 9, the occurrence of new cases in euro area countries had a sizeable and persistent effect on 10-year sovereign bond spreads relative to Germany: 10 new confirmed cases per million people were accompanied by an immediate spread increase of 0.03 percentage points (ppt) that lasted 5 days, for a total increase of 0.35 ppt. For periods afterwards,the effect falls to near zero and is not significant. We interpret this change as an indicator of the success of the ECB’s March 12 press conference, despite the “we are not here to close spreads” controversy. Our results hold for the stock market, providing further evidence of the effectiveness of the ECB’s March 12 announcements in stopping the financial turmoil. A counterfactual analysis shows that without the shift in the sensitivity of sovereign bond markets to COVID-19, spreads would have surged to 4.2% in France, 12.5% in Spain, and 19.5% in Italy by March 18, when the ECB’s Pandemic Emergency Purchase Programme was finally announced.
Topic:
Debt, Economics, International Political Economy, Markets, Central Bank, COVID-19, and Banking
Political Geography:
Europe

9. The Investment Screening Regulation and its screening ground "security or public order": how the WTO law understanding undermines the Regulation's objectives

Author:
Jens Velten
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
The EU adopted Regulation 2019/452 (Regulation) as part of a more robust Common commercial policy to strengthen and defend its interests in a shifting global order. More concretely, the Regulation has two objectives: protecting domestic assets from harmful foreign investor interests, and equipping the EU with leverage to achieve more favourable treatment of EU investors abroad. Therefore, the Regulation provides Member States with an option to adopt foreign direct investment (FDI) screening mechanisms on the grounds of “security or public order”. However, the Regulation misses its objectives. The Regulation’s vague screening ground “security or public order” must be interpreted in accordance with WTO law. A detailed analysis finds that the relevant WTO notions of essential security interests and public order are rather narrow. The Regulation’s screening ground “security or public order” therefore only allows the screening of a few, high-profile cases of FDI. Such a narrow scope undermines the Regulation’s objectives.
Topic:
International Political Economy, International Trade and Finance, Foreign Direct Investment, and WTO
Political Geography:
Europe and European Union

10. On the Economic Effects of a Reallocation of EU Cohesion Policy Expenditures

Author:
Stefan Jestl and Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the economic effects of a reallocation of Cohesion Policy expenditures across EU countries. We evaluate a shift from stronger (i.e. older) Member States to less-developed EU economies (i.e. CEE countries) and vice versa. On top of that, we also assess the effects of a general reduction in the Cohesion Policy budget. For evaluation, we construct a demand-driven macroeconomic model which spans country models of 21 EU economies and is calibrated based on empirical data for the period 1995-2018. Our results suggest that a shift of Cohesion Policy funds to more (less) developed countries would result in a higher (lower) overall economic performance. However, the reallocation would affect economic outcomes in EU economies unevenly. In addition to direct effects on demand and production, it is pivotal to take into account indirect effects via trade as well. As a result, Cohesion Policy seems to be confronted with a trade-off between long-run convergence and short-run economic performance.
Topic:
Economics, International Political Economy, European Union, Economic Growth, Investment, and Economic Cooperation
Political Geography:
Europe and European Union

11. Estimating Demand Spillovers of EU Cohesion Policy Using European Regional Input-Output Tables

Author:
Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper develops a simple method to consistently break down world input-output tables to regional input-output tables. They are used to estimate Cohesion Policy-induced demand spillovers in the EU, covering the years 2007-2018. Results indicate that Cohesion spillovers from less developed regions to other regions exceed 40% of their initial EU support in some cases. In addition, spillovers from the more developed regions are equivalent to 24% of their initial EU support. This shows that the existing trade and investment linkages across the EU regions are strong and not only run from less developed to more developed regions but also vice versa. Our results are good news for the net paying regions in the EU. Taking into account capacity growth effects, Cohesion Policy spillovers might well be a multiple of the pure demand spillovers estimated in this paper. Thus, for net paying regions, Cohesion Policy is not only an act of European solidarity but also a rational long-run economic growth policy.
Topic:
Economics, International Political Economy, International Trade and Finance, European Union, Investment, and Economic Cooperation
Political Geography:
Europe

12. The Effects of the EU Cohesion Policy on Regional Economic Growth: Using Structural Equation Modelling for Impact Assessment

Author:
Stefan Jestl, Ambre Maucorps, and Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the effects of the EU Cohesion Policy (CP) on the economic growth of 276 European NUTS-2 regions between 2008 and 2016. Using a structural equation model (SEM) consisting of both a measurement component (with two latent variables) and a structural component, we estimate the impact of CP funding on the growth of GDP per capita across EU regions. The estimation also enables us to predict changes in the growth of GDP per capita based on a scenario of CP funding reallocation between member states. Overcoming the limitations of traditional linear regression, SEM modelling proves to be a promising method for impact evaluation, also allowing for the inclusion of indirect causal paths and feedback loops to depict, for example, cross-border economic spillover effects.
Topic:
Economics, International Political Economy, European Union, Economic Growth, Investment, and Economic Cooperation
Political Geography:
Europe

13. Greater than the Sum of its Parts?: How does Austria Profit from a Widening Network of EU Free Trade Agreements?

Author:
Julia Grübler and Oliver Reiter
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Political debates and economic analyses often focus on single free trade agreements and their potential economic effects on participating trading partners. This study contributes to the literature by shedding light on the significance of trade agreements in the context of countries’ positions in worldwide trade agreement networks, by combining network theory with gravity trade modelling. We illustrate, both numerically and graphically, the evolution of the global web of trade agreements in general, and the network of the European Union specifically, accounting for the geographical and temporal change in the depth of agreements implemented. Gravity estimations for the period 1995-2017 distinguish the direct bilateral effects of trade agreements from indirect effects attributable to the scope of trade networks and countries’ positions therein.
Topic:
Economics, International Political Economy, International Trade and Finance, Treaties and Agreements, Profit, and Models
Political Geography:
Europe and Austria

14. Does Asymmetric Nonlinear Approach Explain the Relationship Between Exchange Rate and Trade of Iran?

Author:
Mahdi Ghodsi, Mohammad Sharif Karimi, and Robert Stehrer
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Until 2012, the Central Bank of Iran (CBI) used its policy rate to stabilise the rial’s exchange rate and, given a persistent current-account surplus, had accumulated sizeable currency reserves. In 2012, however, international sanctions against Iran intensified and the value of the rial halved against the US dollar. Since then Iran has followed a dual interest rate policy, with both a market rate and an official rate applied by the CBI to major imports. In recent years, as sanctions have cut access to foreign reserves, the gap between the two rates has widened substantially. Given these important changes in the exchange rate regime, this paper investigates the impact of the real exchange rate on the trade balance in Iran over the period 1997-2017. For this purpose, an asymmetric model is used, as the speed of the effects of changes in the exchange rate can be asymmetric. The results of the nonlinear autoregressive distributed lag model (NARDL) indicate that this is indeed the case. Results are generally consistent with the Marshall-Lerner condition: an exchange rate depreciation improves the trade balance, whereas an appreciation worsens it. However, the trade balance reacts more strongly in the short run to depreciations of the rial than to appreciations. Although the government could easily improve the trade balance in the short run through currency depreciation, policymakers should in the longer run promote non-oil exports to reduce dependency on oil and to diversify the economy.
Topic:
Economics, International Political Economy, International Trade and Finance, Exchange Rate Policy, Central Bank, and Models
Political Geography:
Europe and Iran

15. Refugees’ Integration into the Austrian Labour Market: Dynamics of Occupational Mobility and Job-Skills Mismatch

Author:
Mahdi Ghodsi and Robert Stehrer
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Eight multilateral rounds of negotiations under the General Agreement on Tariffs and Trade (GATT) and international agreements under the World Trade Organisation (WTO) have contributed significantly to the reduction of tariffs among WTO members. However, over the years legitimate reasons for the imposition of non-tariff measures (NTMs) within regulations have triggered their extensive use. Among these measures, technical barriers to trade (TBTs) and sanitary and phytosanitary (SPS) measures allow countries to impose restrictions on the import of low-quality products suspected of harming domestic consumers’ health, plant life or the environment. Such trade policy instruments may lead to higher standards in the import market, in addition to improving market efficiency through information requirements such as mandatory labelling. This paper analyses two types of regulative and standard-like NTMs – TBTs and SPS measures – and the quality improvement of traded products that is driven by their imposition, which might be a general underlying motive for the adoption of such regulations. Based on a model framework involving both the supply and the demand side of trade and using four types of measures of these NTMs, this paper assesses the impact of TBTs and SPS measures on the quality of traded products. A dummy variable measuring the existence of these NTMs and a count variable indicating their stringency are used in the analysis. Moreover, two other variables indicate flows of NTMs imposed in each year and stocks of these NTMs accumulated over years. The results indicate that TBTs and SPS measures do indeed imply a higher quality of traded products, which is also consistent with the model when NTMs enter as a specific trade cost. Stringent TBTs with more regulations imposed in each year (i.e. flows of count TBTs) have the largest impact on the quality of traded products. However, for SPS measures only the existence of a regulation (i.e. the dummy variable on flows of SPS measures) on a traded product has the strongest impact on its quality.
Topic:
Economics, International Political Economy, International Trade and Finance, WTO, Non-Tariff Measures, and GATT
Political Geography:
Europe and Global Focus

16. Extreme weather events and economic activity: The case of low water levels on the Rhine river

Author:
Martin Ademmer, Nils Jannsen, and Saskia Mösle
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In this paper, we exploit exogenous variation in navigability of the Rhine river to analyze the impact of weather-related supply shocks on economic activity in Germany. Our analysis shows that low water levels lead to transportation disruptions that cause a significant and economically meaningful decrease of economic activity. In a month with 30 days of low water, industrial production in Germany declines by about 1 percent, ceteris paribus. Our analysis highlights the importance of extreme weather events for business cycle analysis and contributes to gauging the costs of extreme weather events in advanced economies. Furthermore, we provide a specific example for an idiosyncratic supply shock to a small sector that amplifies to an economically meaningful effect at the macroeconomic level.
Topic:
International Political Economy, Economic Growth, Macroeconomics, Supply Chains, and Weather
Political Geography:
Europe and Germany

17. Skills in African Labor Markets and Implications for Migration to Europe

Author:
Andreas Backhaus
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper assesses the potential for skilled labor migration from sub-Saharan Africa to Europe. It utilizes representative surveys from Ghana and Kenya to shed light on the quality and distribution of skills in the labor markets of these countries. Skills in both countries are found to be unevenly distributed, with significant parts of the labor force being essentially unskilled. Similarly designed surveys from France, Germany, and the UK further allow comparing skills and formal education between the African and the European countries. On average, the labor force in the sub-Saharan African countries is less skilled and less educated than the European labor force. Importantly, even at the same levels of formal education, workers in Ghana and Kenya are substantially less skilled than workers in Europe. The paper further considers a number of hypothetical scenarios for skilled labor migration from the African to the European countries. It is demonstrated that the European countries would have to recruit workers from the very top end of the African skill distribution to match European demands for skills. In turn, the average worker from the African labor markets would fit only into the low end of the European skill distribution where employment rates are low. Hence, more regular and skilled labor migration from African countries will unlikely be a remedy for skill shortages in Europe unless migrants are positively selected on their skills. In that case, however, additional opportunities for skilled labor migration would risk a brain drain from African countries that could harm economic development there. Improving the quality of education in sub-Saharan Africa on a broad scale remains indispensable for mutually beneficial migration between Africa and Europe.
Topic:
International Political Economy, Migration, Labor Issues, Migrant Workers, and Skilled Labor
Political Geography:
Kenya, Africa, Europe, Ghana, and Sub-Saharan Africa

18. From the EMS to the EMU and...to China

Author:
Joseph Halevi
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The paper highlights the position of German authorities, showing that they were quite lucid about the fundamental weaknesses inherent in a process that separated monetary from fiscal policies by giving priority to the centralization of the former. Instead of repeating the well known critiques levelled against the EMU – for which readers are referred to the unsurpassed treatment by Stiglitz, the essay highlights the splintering of Europe in the way in which it has unfolded during the 1990s and in the first decade of the present millennium. In particular the early economic and political origins of the terminal crisis of Italy are located between the late 1980s and the 1990s. France is shown to belong increasingly to the so-called European periphery by virtue of a weakening industrial structure and persistent balance of payments deficits. The paper argues that France regains its central role by political means and through its weight as an active nuclear military power centered on maintaining its imperial interests and posture especially in Africa. The first decade of the present millennium is portrayed as the period in which a distinct German economic area had been formed in the midst of Europe with a strong drive to the east with an increasingly powerful gravitational pull towards the People’s Republic of China.
Topic:
Economics, International Political Economy, Political Economy, History, and Macroeconomics
Political Geography:
Africa, China, Europe, Asia, Germany, and Global Focus

19. Migration and Post-Conflict Reconstruction: The Effect of Returning Refugees on Export Performance in the Former Yugoslavia

Author:
Dany Bahar, Hillel Rapoport, Cem Özgüzel, and Andreas Hauptmann
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
During the early 1990s Germany offered temporary protection to over 600,000 Yugoslavian refugees fleeing war. By 2000, many had been repatriated. We exploit this natural experiment to investigate the role of migrants in post-conflict reconstruction in the former Yugoslavia, using exports as outcome. Using confidential social security data to capture intensity of refugee workers to German industries –and exogenous allocation rules for asylum seekers within Germany as instrument– we find an elasticity of exports to return migration between 0.08 to 0.24. Our results are stronger in knowledge-intensive industries and for workers in occupations intensive in analytical and managerial skills.
Topic:
Conflict Resolution, Economics, International Political Economy, Migration, Refugee Issues, Refugees, and Exports
Political Geography:
Europe, Yugoslavia, and Germany

20. The Primary Cause of European Inflation in 1500-1700: Precious Metals or Population? The English Evidence

Author:
Anthony Edo and Jacques Melitz
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
We perform the first econometric test to date of the influences of inflows of precious metals and population growth on the “Great Inflation” in Europe following the discovery of the New World. The English evidence strongly supports the near-equivalent importance of both influences. For 1500-1700, silver is the only relevant precious metal in the estimates. The study controls for urbanization, government spending, mortality crises and climatic changes. The series for inflows of the precious metals into Europe from America and European mining are newly constructed based on the secondary sources.
Topic:
Economics, Government, International Political Economy, Urbanization, and Inflation
Political Geography:
Europe and England

21. Sectoral reallocations, Real estate shocks, and productivity divergence in Europe

Author:
Fabien Tripier, Jérôme Héricourt, and Thomas Grjebine
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper investigates the role of sectoral reallocations in the divergence of productivity in Europe, based on a database for 33 sectors and 14 countries between 1995 and 2015. Using the contribution of sectoral productivity growth to Total Factor Productivity (TFP) at the country level, we highlight that variations in the relative size of sectors - less productive sectors growing relatively to more productive ones - have been at the origin of variable productivity losses in main European countries. Parallel to this divergence, European countries experienced heterogeneous real estate price dynamics, which took the form, in some economies, of massive boom-bust cycles. We investigate real estate shocks as a potential source of sectoral reallocations through a collateral mechanism. These shocks turn out to be a strong driver of productivity divergence between European countries.
Topic:
Economics, International Political Economy, Real Estate, and Productivity
Political Geography:
Europe

22. Exchange rate pass-through to import prices: Accounting for changes in the Eurozone trade structure

Author:
Valérie Mignon and Antonia Lopez-Villavicencio
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper assesses whether the emergence of new trading partners (i.e., China and Eastern Europe) as suppliers reduces the exchange rate pass-through (ERPT) in Eurozone countries which differ regarding their external exposure. Using bilateral data on import prices at the two-digit sector level, we find that (i) pass-through is complete in many cases, (ii) ERPT from China is higher than from the United States, and (iii) there is no compelling evidence of a generalized link between ERPT and the increasing integration of some emerging markets in European imports. We also show that the launch of the single currency has not provoked a sufficient change in the part of trade exposed to exchange rate fluctuations and, therefore, has not affected the pass-through. Overall, the trend of liberalization in new players' markets has not altered the competitive environment such as to induce exporters of other countries to absorb exchange rate depreciations.
Topic:
Economics, International Political Economy, International Trade and Finance, Exchange Rate Policy, Eurozone, Trade, and Imports
Political Geography:
China, Europe, and Eastern Europe

23. Heterogeneity within the Euro Area: New Insights into an Old Story

Author:
Virginie Coudert, Cécile Couharde, Carl Grekou, and Valérie Mignon
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
We assess cross-country heterogeneity within the eurozone and its evolution over time by measuring the distances between the equilibrium exchange rates’ paths of member countries. These equilibrium paths are derived from the minimization of currency misalignments, by matching real exchange rates with their economic fundamentals. Using cluster and factor analyses, we identify two distinct groups of countries in the run-up to the European Monetary Union (EMU), Greece being clearly an outlier at that time. Comparing the results with more recent periods, we find evidence of rising dissimilarities between these two sets of countries, as well as within the groups themselves. Overall, our findings illustrate the building-up of macroeconomic imbalances within the eurozone before the 2008 crisis and the fragmentation between its member countries that followed.
Topic:
Economics, International Political Economy, Monetary Policy, and European Monetary Union
Political Geography:
Europe

24. The EU Self-Surplus Puzzle: An Indication of VAT Fraud?

Author:
Martin T. Braml and Gabriel Felbermayr
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The world runs a trade surplus with itself: Exporters report larger values of exports than what importers report as imports. This is a logically impossible but well known empirical fact. Less well known, in recent years, more than 80 percent of the global surplus is a trade surplus that the EU has with itself. In this paper, we show that this self-surplus of the EU amounts to a striking 307 billion Euro in 2018. It persists in goods, services, and secondary income accounts. It also exists within the Euro Area, and is strongest between neighboring countries. Around the 2004 Eastern Enlargement the EU’s self-surplus quadrupled. Balance of payments data from the United Kingdom appear highly distorted. We argue that the phenomenon is not only due to measurement error. Rather, a large fraction of the EU’s self-surplus puzzle seems related to fraud in value added tax. The loss in tax income could amount to as much as 64 billion Euro per year.
Topic:
International Political Economy, European Union, Trade, and Trade Policy
Political Geography:
Europe

25. State contingent debt as insurance for euro-area sovereigns

Author:
Maria Demertzis and Stavros Zenios
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Since the financial crisis, EU countries' economies have recovered to the point that they are exiting their adjustment programmes. Institutional stability mechanisms have been improved at the European level, with the promotion of the banking union and the establishment of a European Monetary Fund, for instance. However, the authors argue that such crisis contingencies should include markets in their risk-sharing, which would require better coordination with institutions.
Topic:
International Political Economy
Political Geography:
Europe

26. Institutional investors and home bias in Europe’s Capital Markets Union

Author:
Zsolt Darvas and Dirk Schoenmaker
Publication Date:
03-2017
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Integrated capital markets facilitate risk sharing across countries. Lower home bias in financial investments is an indicator of risk sharing. We highlight that existing indicators of equity home bias in the literature suffer from incomplete coverage because they consider only listed equities. We also consider unlisted equites and show that equity home bias is much higher than previous studies perceived. We also analyse home bias in debt securities holdings, and euro-area bias. We conclude that European Union membership may foster financial integration and reduce information barriers, which sometimes limit cross-country diversification. We calculate home bias indicators for the aggregate of the euro area as if the euro area was a single country and report remarkable similarity between the euro area and the United States in terms of equity home bias, while there is a higher level of debt home bias in the United States than in the euro area as a whole. We develop a new pension fund foreign investment restrictions index to control for the impact of prudential regulations on the ability of institutional investors to diversify geographically across borders. Our panel regression estimates for 25 advanced and emerging countries in 2001-14 provide strong support for the hypothesis that the larger the assets managed by institutional investors (defined as pension funds, insurance companies and investment funds), the smaller the home bias and thereby the greater the scope for risk sharing.
Topic:
International Political Economy, International Trade and Finance, Economic structure, and Europe Union
Political Geography:
Europe

27. Fundamental uncertainty and unconventional monetary policy: an info-gap approach

Author:
Yakov Ben-Haim, Maria Demertzis, and Jan Willem Van Den End
Publication Date:
02-2017
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper applies the info-gap approach to the unconventional monetary policy of the Eurosystem and so takes into account the fundamental uncertainty on inflation shocks and the transmission mechanism. The outcomes show that a more demanding monetary strategy, in terms of lower tolerance for output and inflation gaps, entails less robustness against uncertainty, particularly if financial variables are taken into account. Augmenting the Taylor rule with a financial variable leads to a smaller loss of robustness than taking into account the effect of financial imbalances on the economy. However, in some situations, the augmented model is more robust than the baseline model. A conclusion from our framework is that including financial imbalances in the monetary policy objective does not necessarily increase policy robustness, and may even decrease it
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Europe

28. Aphrodite's Gift: Can Cypriot Gas Power a New Dialogue?

Publication Date:
04-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Eastern Mediterranean tensions have risen since late 2011, when Greek Cypriots unilaterally began drilling in their rich offshore hydrocarbon reserves and Turkey responded with tough criticism and threatening naval manoeuvres. Contested maritime boundaries and exploration of natural gas deposits off the divided island are the sources of the current dispute, but tensions also result from the slow-down of UN-mediated Cyprus reunification talks. A paradigm shift is needed. The gas can drive the communities further apart and increase discords, or it can provide an opportunity for officials from all sides, including Turkey, to sit down and reach agreements on the exploitation and transportation of this new find.
Topic:
Conflict Resolution, NATO, Energy Policy, International Political Economy, Natural Resources, and Territorial Disputes
Political Geography:
Europe and Turkey

29. World Trade 1970-2010: Globalisation, Regionalisation and Reallocation

Author:
Arne Melchior
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Using data for more than 200 countries, split into nine regions, we study world trade in goods during 1970-2010. The largest changes are the declining relative importance of Western Europe, and the increasing role for Asia. The intra-regional trade of Asia grew particularly fast; from 4 to 16% of world trade. Due to growing intra-regional trade in Europe and Asia, world trade became more intra-regional until 1995. Manufacturing trade is more regionalised, whereas commodity trade is more globalised. After 1995, extra-regional trade flows grew faster so there was “globalisation” with trade travelling longer distances and a rising share for commodities. From 2000, smaller trade regions such as Africa and Latin America have increased their shares of world trade; reversing the trend over the 30 preceding years.
Topic:
Globalization, International Political Economy, International Trade and Finance, Markets, Regional Cooperation, and International Affairs
Political Geography:
Europe, Asia, and Western Europe

30. Brazil and the Transatlantic Community in the Wake of the Global Crisis

Author:
Thomas J Trebat
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Institute for Latin American and Iberian Studies at Columbia University
Abstract:
As the great global crisis eases its grasp, it is a time to reconsider relations between Brazil and the North, especially the United States and the European Union. While the world economy is still reeling, it is very possible that a new and more productive period in Brazil's relations with the US and Europe is possible. This positive outcome derives from numerous factors, most especially Brazil's “peaceful rise” to a more prominent global role and the arrival of the Obama administration whose promise of a new beginning in U.S. foreign policy has been greeted with such evident enthusiasm in Latin America.
Topic:
International Relations, Foreign Policy, Development, Economics, International Political Economy, and Financial Crisis
Political Geography:
United States, Europe, Brazil, and Latin America

31. The Transatlantic Economy 2009

Author:
Daniel S. Hamilton and Joseph P. Quinlan
Publication Date:
01-2009
Content Type:
Working Paper
Institution:
Center for Transatlantic Relations
Abstract:
After a five-year boom in prosperity, the transatlantic economy has fallen into what could be perhaps its deepest recession since World War II. Although the U.S. was the epicenter of the financial crisis, many European banks have exposure to U.S. subprime loans and embraced the risky lending practices of their American counterparts. The financial crisis and attendant recession underscore the deep integration of the transatlantic economy. Notions of “decoupling” are mistaken and are likely to lead to serious policy errors. Never before have Europeans and Americans had a greater stake in each other's economic success. Each has a substantial interest in the other's ability to weather current difficulties and to emerge in sound shape from the crisis.
Topic:
International Relations, Economics, Globalization, International Political Economy, and International Trade and Finance
Political Geography:
United States and Europe

32. Difference within Similarity: Transatlantic Relations as a 'Community of Neighbours'

Author:
Pertti Joenniemi
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The contribution focuses on the unfolding and tensions within the transatlantic relationship and it pursues, in particular, the question how the bonds of association between Europe and America are best comprehended and accounted for. In trying to break some new ground for theorization it argues that the Realist, Liberal and Constructivist accounts have so far come up short in terms of providing up-to-date and broadly acceptable answers. With the dominant theories focusing largely on either external enmity or internal homogeneity, difference internal to the relationship has too easily been conceptualized as destabilizing and seen as representing a rupture. In contrast, the paper assert s that while elements of enmity and homogeneity are important, communities such as the Atlantic one are also critically brought together by their internal differences. It then aims, in view of the difference-based dynamics at play and foundational for the Atlantic communality, to complement an d provide a corrective to the more established theorization of that togetherness.
Topic:
International Relations, Foreign Policy, International Political Economy, and Bilateral Relations
Political Geography:
United States, America, and Europe

33. The value of power, the power of values: a call for an EU Grand Strategy

Author:
Sven Biscop (ed.)
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
In its 2003 European Security Strategy (ESS), the EU has a grand strategy, embracing all instruments and resources at the disposal of the Union and the Member States, but a partial one. The ESS tells us how to do things – in a preventive, holistic and multilateral way – but it is much vaguer on what to do: what are the concrete objectives and priorities of the EU as a global actor?
Topic:
Economics, Emerging Markets, International Political Economy, International Trade and Finance, and Regional Cooperation
Political Geography:
Europe

34. The Trade and Climate Change, Joint Agenda

Author:
Thomas L Brewer
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Climate change, international trade, investment and technology transfer are all issues that have intersected in diverse institutional contexts and at several levels of governmental activity to form a new joint agenda. The purpose of this paper is to advance understanding of this joint agenda by identifying the specific issues that have emerged, the policies that have been adopted, especially in the EU and US, and the options that are available for further policy-making.
Topic:
Climate Change, International Cooperation, International Political Economy, and International Trade and Finance
Political Geography:
United States and Europe

35. The Struggle for a Civilised Wider European Order

Author:
Michael Emerson
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Europe's two crises – the Georgia-Russia war of August and the ongoing global financial and economic crisis – point to huge challenges for the organisation and policies of the European Union. The present paper concentrates on the risks that the crises represent for one of the EU's prim e objective, to achieve a civilized wider European order. At least the current episodes show that with leadership the EU can act fast in both diplomacy and finance. But the next question is how to follow through, beyond a passing moment of an effective six-month presidency of the EU. This is the subject of the present note, which advocates a comprehensive upgrading of the EU's policies in the wider European area, and contributes ideas for the revision of the European Security Strategy currently being prepared. The aim would be to strengthen EU policies towards South-East Europe, East Europe and Central Asia, and defuse the current confrontation between a normative Europe and an aggressive Russian realpolitik; better still Russia might, after reflecting on what the two crises mean for its fundamental interests, conclude that the time had come for a more genuinely cooperative understanding with the EU.
Topic:
International Political Economy
Political Geography:
Russia, Europe, Central Asia, Asia, and Georgia

36. The europeanization of Europe : the transfer of norms to Europe, in Europe and from Europe

Author:
Trine Flockhart
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Europeanization is a concept predominantly concerned with the domestic impact of the EU whilst less concerned with its historical foundations and wider geographical reach. By forwarding a Historical Sociological conceptualization of Europeanization it is revealed that the concept suffers from fundamental problems relating to historical and geographical scope, to uncertainty about which causal relationships to explain, and that it is based on implicit but unsustainable assumptions. This article challenges the assumption that Europeanization is based on ideas endogenous to Europe and is an activity preserved for Europeans. It suggests that 'Europeanization' can be conceptualized as several social processes involving different agents, structures, processes and conceptions of 'self' and 'other', and that Europeans have been more on the receiving end of ideational diffusion than promoters of a European norm set. By employing a Historical Sociological perspective it is revealed that before Europeans could 'Europeanize' either in or from Europe, they not only had to develop a European identity through a process of ideational diffusion to Europe, but the idea set which is today regarded as 'European' was diffused from the United States and stands in complete contrast to ideas previously also regarded as European.
Topic:
Civil Society and International Political Economy
Political Geography:
Europe

37. Reunifying Cyprus: The Best Chance Yet

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
A new peace process in Cyprus offers the best opportunity in decades to solve the intractable division of the island. The turnabout is largely due to the surprise election of Demetris Christofias to the Greek Cypriot presidency. He, together with his Turkish Cypriot counterpart, Mehmet Ali Talat, are demonstrating political will to make the current UN-mediated talks succeed. Key players like Turkey are being constructive. The outside world, particularly the UN and European Union (EU), needs to fully engage in support of a comprehensive settlement that will improve Cypriot security and prosperity, free Turkey to continue its movement into Europe and overcome a problem that is increasingly damaging to EU policy in the region and beyond.
Topic:
Conflict Resolution, Diplomacy, International Political Economy, and United Nations
Political Geography:
Europe and United Nations

38. Georgia and Russia: Clashing over Abkhazia

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
With the dispute between Georgia and Russia in a new, dangerously confrontational phase, the risk of war in the South Caucasus is growing. Concerned by NATO's plans for further extension to former Soviet republics and Kosovo's unilateral but Western-orchestrated independence, Russia has stepped up manipulation of the South Ossetia and Abkhazia conflicts. Georgia remains determined to restore its territorial integrity, and hawks in Tbilisi are seriously considering a military option. Both sides need to recognise the risks in current policies, cool their rhetoric and cease military preparations. Russia should cease undermining its peacekeeper and mediator roles and be open to a change of negotiating formats. Georgia should adopt a new approach to the Abkhaz, encouraging their links to the outside world to lessen dependence on Russia and emphasising incremental con­­fidence building to establish the mutual trust needed for successful negotiations. The U.S. and European Union (EU) should be firm and united in cautioning both Moscow and Tbilisi against military adventures.
Topic:
International Relations, NATO, and International Political Economy
Political Geography:
Russia, Europe, Asia, Soviet Union, Kosovo, Georgia, and Tbilisi

39. How to Achieve a Better Budget for the European Union?

Author:
Daniel Gros
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
In recent decades the EU has widened and deepened to such an extent that it now deals in almost all areas of policy-making. Its budget, however, has barely changed over this period. It thus needs to be radically reformed if it is to reflect the priorities of an expanding and deepening Union. Over 40% of spending still supports agriculture, a declining sector; spending for research and innovation, recognised as the main driving force of productivity growth, is too low, and there is no room in the budget for the new public goods of domestic and external security that the public demands. However, the budget is determined through an inter-governmental negotiation in which no entity defends the over-arching European interest since all countries (rationally) care only about their 'net balance'.
Topic:
Government and International Political Economy
Political Geography:
Europe

40. EC Visa Facilitation and Readmission Agreements: Implementing a New EU Security Approach in the Neighbourhood

Author:
Imke Kruse and Florian Trauner
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
With the Eastern Enlargement successfully completed, the EU is searching for a proper balance between internal security and external stabilisation that is acceptable to all sides. This paper focuses on an EU foreign policy instrument that is a case in point for this struggle: EC visa facilitation and readmission agreements. By looking at the EU's strategy on visa facilitation and readmission, this paper aims to offer a first systematic analysis of the objectives, substance and political implications of these agreements. The analysis considers the instrument of EC visa facilitation and readmission agreements as a means to implement a new EU security approach in the neighbourhood. In offering more relaxed travel conditions in exchange for the signing of an EC readmission agreement and reforming domestic justice and home affairs, the EU has found a new way to press for reforms in neighbouring countries while addressing a major source of discontent in these countries. The analysis concludes with the broader implications of these agreements and argues that even if the facilitated travel opportunities are beneficial for the citizens of the target countries, the positive achievements are undermined by the Schengen enlargement, which makes the new member states tie up their borders to those of their neighbours.
Topic:
Security, Foreign Policy, International Political Economy, and Regional Cooperation
Political Geography:
Europe and Eastern Europe

41. Is European democracy promotion on the wane?

Author:
Richard Youngs
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU routinely asserts that the promotion of democracy and human rights is central to its international identity. However, while in some places the EU has a relatively strong record as a supporter of democratic values, it is failing to respond effectively to the emergence of a vastly more challenging environment for democracy promotion. This paper reveals serious limits across three strands of democracy policy – the magnitude of incentives offered in return for democratic change, the degree of critical pressure exerted for democratic reform and the scale of European democracy funding. Even where the EU is building on the initiatives it has pursued for the last two decades, the paper demonstrates that these policies fail to measure up to the challenges posed by the new international context.
Topic:
Democratization, Human Rights, and International Political Economy
Political Geography:
Europe and Eastern Europe

42. The United States:A normative power?

Author:
Daniel S. Hamilton
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
To what degree may the US be considered a normative power? The US foreign policy mainstream tends to reflect a varying blend of normative and hegemonic approaches. The US has been and continues to be simultaneously a guardian of international norms; a norm entrepreneur challenging prevailing norms as insufficient; a norm externaliser when it tries to advance norms for others that it is reluctant to apply to itself; and a norm blocker when it comes to issues that may threaten its position, or that exacerbate divisions among conflicting currents of American domestic thought. On balance (and despite exceptions), the US has sought to manage this normative-hegemonic interplay by accepting some limits on its power in exchange for greater legitimacy and acceptance of its leadership by others. The unresolved question today is whether the US and other key players are prepared to stick with this bargain. Closer examination of the US case also raises a considerable number of questions about the notion of the EU as a 'normative power'.
Topic:
International Relations, Foreign Policy, Defense Policy, International Law, International Organization, and International Political Economy
Political Geography:
Africa, United States, and Europe

43. Mobility of Labor and Services across the Baltic Sea after EU Enlargement: Trends and Consequences

Author:
Jon Erik Dølvik
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The enlargement of the EU / EEA area on 1 May 2004 to comprise 28 countries – including eight Central and Eastern European countries, in 2007 followed by Bulgaria and Romania – was a milestone. The subsequent opening of the markets for labor and services between countries with gaps in wages and living conditions comparable to those along the U.S./Mexican border has no modern precedent, prompting new patterns of competition, migration and adjustment in national labor market regimes. This paper reviews developments in labor migration after enlargement and the implications for the labor markets in the Baltic states and Poland, which have accounted for a predominant share of the intra- EU / EEA migration flows since 2004. Besides the UK and Ireland, where almost one million EU 8 citizens had registered in 2007, the booming Nordic economies have become important destinations, having granted more than 250,000 permits and seen sizeable additional flows of service providers and self-employed from the Baltic states and Poland. In the sending countries, rising demand for labor has, alongside strong outmigration – especially among young and well-educated groups – engendered falling unemployment, soaring wage growth, and made shortages of skills and labor an obstacle to further economic recovery. Yet, while better paid temporary work abroad may weaken the incentives for employment, mobility and training in the home country, aging will lead to shrinking working-age populations in the coming years. Unless the Baltic states and Poland can entice a larger share of the population to work in their home countries – and/or can attract substantial labor migration from third countries – the declining work force may easily entail economic stagnation and reinforce the outflow of human resources. These countries are thereby facing a critical juncture in their economic and social development. In the recipient Nordic countries, the growing labor and service mobility, low cost production, and competition for labor in Europe, as well as emerging lines of division in the labor markets, have, on the other hand, raised new questions as to how the principles of free movement and the egalitarian Nordic models can be made reconcilable in the open European markets.
Topic:
International Political Economy and Markets
Political Geography:
United States, United Kingdom, Europe, Eastern Europe, Poland, Bulgaria, Romania, and Ireland

44. Der kollektive "Buddenbrooks-Effekt"

Author:
Christoph Deutschmann
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper views the current financial crisis in light of long-term structural socioeconomic changes in advanced industrial societies. In Western Europe, the United States and Japan, the period of economic prosperity after the Second World War led to a remarkable accumulation of wealth among the middle class that had surprisingly little effect on the substantial fortunes of the wealthiest upper class. This affluence gave rise to pension and investment funds emerging as a new type of collective actor in global financial markets, while the economy was marked by increasing instability, declining growth rates and financial crises. The paper tries to clarify the interconnections between these phenomena using the framework of a multilevel analysis that culminates in a model I call the “collective Buddenbrooks effect” (“Buddenbrooks” being a family saga by Thomas Mann): Structural upward social mobility will lead to an increasing imbalance in capital markets, since the volume of financial assets looking for profitable investment will rise as the social reservoir of solvent debtors and promising investment opportunities decline. Advanced industrial economies are thus characterized by a bias towards capital export and excessive financial liquidity, with the well-known consequences of low economic growth rates and the danger of speculative bubbles on global capital markets. The middle class that originally benefitted from postwar prosperity is negatively affected, too. I argue that the current crisis cannot be understood sufficiently without taking this structural socioeconomic background into account.
Topic:
Economics, International Political Economy, International Trade and Finance, Political Economy, and Political Theory
Political Geography:
United States, Japan, and Europe

45. An interview with General James L. Jones, USMC, Retired, Supreme Allied Commander Europe (SACEUR), 2003-2006

Author:
David S. Yost
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
NATO Defense College
Abstract:
The greatest achievements include the Alliance's enlargement from 19 to 26 allies and the progress made in fulfilling the vision of the [November 2002] Prague Summit for the transformation of NATO's military posture. The vision includes the creation of the NATO Response Force and the establishment of Allied Command Transformation. Thanks to Prague, since 2003 the Alliance has had two strategic commands; one for operations — Allied Command Operations located in Mons, Belgium — and one for transformation, Allied Command Transformation, in Norfolk, Virginia. The Alliance has also established three operational level commands. This new command structure involved a major headquarters realignment and significant manpower downsizing, plus the disestablishment of numerous headquarters.
Topic:
NATO, International Organization, and International Political Economy
Political Geography:
Europe, Belgium, Virginia, and Norfolk

46. Russia vs Georgia: The Fallout - Europe Report N°195

Publication Date:
08-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The Russia-Georgia conflict has transformed the contemporary geopolitical world, with large consequences for peace and security in Europe and beyond. Moscow's initial moves into South Ossetia as large-scale violence broke out there on 7-8 August were in part a response to a disastrous miscalculation by a Georgian leadership that was impatient with gradual confidence building and a Russian-dominated negotiations process. But Russia's disproportionate counter-attack, with movement of large forces into Abkhazia and deep into Georgia, accompanied by the widespread destruction of economic infrastructure, damage to the economy and disruption of communications and movement between different regions of the country, constitutes a dramatic shift in Russian-Western relations. It has undermined regional stability and security; threatened energy corridors that are vital for Europe; made claims with respect to ethnic Russians and other minorities that could be used to destabilise other parts of the former Soviet Union, with Ukraine a potential target; and shown disregard for international law.
Topic:
NATO, International Political Economy, and War
Political Geography:
Russia, United States, Europe, Ukraine, Asia, Soviet Union, Moscow, Georgia, South Ossetia, and Abkhazia

47. The External Dimension of EU Justice and Home Affairs: Tools, Processes, Outcomes

Author:
Thierry Balzacq
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This working document offers a conceptual framework for understanding the processes underpinning the external dimension of EU Justice and Home Affairs (ED-JHA). Practically, it defines how the export of JHA principles and norms inform the geopolitical ambitions of the EU, i.e. the use of space for political purposes, or the control and management of people, objects and movement. The author begins by investigating how the ENP reconfigures the ED-JHA, and then goes on to discuss various conceptual stances on governance, specifically institutionalism, constructivism, and policy instruments. To conclude he traces the evolution of this external dimension, emphasising, whenever possible, its continuities and bifurcations. Overall, the aim is to ascertain the extent to which conceptual designs clarify or advance our knowledge of the contents and rationales of the ED-JHA.
Topic:
Government and International Political Economy
Political Geography:
Europe

48. European Banks in the Developing World

Author:
Jan Toporowski
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper looks at the recent expansion of European banks in the developing countries. It argues that no specific European influence is apparent in emerging markets, other than a declining financial interest in former colonies. Actual developments in emerging markets are determined by domestic factors, financial liberalisation, and capital account liberalisation. The sole exception is provided by monetary unions of France and Portugal with former colonies. These highlight the drying up of local money markets as local banking becomes a branch activity of global banks. This is a paradoxical result, since financial liberalisation is usually supposed to result in financial development. It also suggests financial liberalisation may not be the best way of supporting the under-banked small and medium enterprise sector in developing countries.
Topic:
Development, Economics, and International Political Economy
Political Geography:
Europe

49. Contemporary Chinese Views of Europe

Author:
Karine Lisbonne-de Vergeron
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
Chatham House
Abstract:
Undoubtedly, the Chinese currently think of Europe, and of the European Union, primarily in economic terms. Since 2004, the EU has been China's first trading partner, accounting for 15% of its overall external trade in 2006, with a bilateral increase of 25% from 2005. Overall, bilateral trade between China and the EU has increased more than sixty-fold since 1978 to reach nearly €255 billion in 2006. In return, China is the EU's second largest trading partner, after the United States, and in 2006 became the largest source of EU imports, amounting to approximately €192 billion, or 14.4% of the total, a 21% increase from 2005. Over the same period, EU exports to China increased by 23% to approximately €63 billion.
Topic:
Civil Society, International Political Economy, and International Trade and Finance
Political Geography:
United States, China, Europe, and Asia

50. Problems of Democratic Control in European Security and Defense Politics – a View from Peace and Conflict Research

Author:
Wolfgang Wagner
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Since EU members have agreed to establish integrated military forces and to decide jointly on their deployment in European institutions, the EU's “democratic deficit” is no longer confined to issues of common market governance but also includes foreign, security and defense politics. Drawing on recent debates in peace and conflict research, I will argue that a democratic deficit in European security and defense politics is not only worrying for its own sake but also because a growing body of literature regards the democratic control of security and defense politics as the best guarantee to maintain peaceful and cooperative relations with other states.
Topic:
Security, International Organization, International Political Economy, and International Security
Political Geography:
Europe

51. Innovation and Adaptability in a Digital Era: How Wealthy Nations Stay Wealthy

Author:
Tobias Schulze-Cleven, Bartholemew C. Watson, and John Zysman
Publication Date:
05-2007
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
The challenge for the advanced countries is to stay wealthy in a rapidly evolving and ever more competitive global economy. As a new digital era emerges and the mechanisms of value creation – i.e. the engines of productivity and growth – change in volatile marketplaces, wealthy nations have to find new ways to adapt. Particularly in Europe, successful adjustment has often been posed as a choice between social protection and market flexibility. In this paper, we recast this all too common framing and emphasize instead that competitive advantage for the advanced countries may be built through appropriate social policy. Upon clarifying the character of competition in the emerging digital era, we argue that the long-standing strong social protection systems particularly in many European countries could be leveraged to these countries' unique advantage in the emerging digital era. With such benefits as promoting social peace and assisting people in meeting new labour market demands, social protection systems have an important role to play in helping societies reorganize existing economic structures in support of successful adaptation to new competitive conditions.
Topic:
Economics, Globalization, International Political Economy, and Science and Technology
Political Geography:
Europe

52. Fifteen Proposal for Italy's European Policy

Author:
Ettore Greco, Tommaso Padoa-Schioppa, and Stefano Silvestri
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Despite the important achievements of the past years (the Euro, enlargement, the drafting of the Constitutional Treaty, interventions in the Balkans and the growing diplomatic role in the Middle East), Europe is at a standstill and experiencing scepticism which, combined with prolonged economic stagnation, could deteriorate into a serious crisis. In this difficult situation, Italy could suffer particularly negative consequences. At the same time, however, it could – as in the past – play a prominent role in providing the Union with new dynamism.
Topic:
Development, International Cooperation, and International Political Economy
Political Geography:
Europe and Italy

53. Human Security on Foreign Policy Agendas. Changes, Concepts and Cases, INEF-Report 80

Author:
Tobias Debiel and Sascha Werthes
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
When the United Nations Development Programme (UNDP) published its 1994 report, nobody expected that the human security concept outlined within it would attract so much attention from politicians and academics alike. This is all the more astonishing as the concept has provoked a lot of criticism ever since its first appearance due to its excoriated analytical ambiguity and its disputed political appropriateness.
Topic:
Security, Defense Policy, Human Rights, International Political Economy, and United Nations
Political Geography:
United States, Japan, Europe, and Asia

54. Contemporary Indian Views of Europe

Author:
Karine Lisbonne-de Vergeron
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
Chatham House
Abstract:
India was one of the first countries to establish a diplomatic relationship with the European Union (EU), with a visit of several European-based Indian diplomats to the then EEC in 1961. However, the first summit between India and the EU – held in Lisbon in June 2000 – marks the true start of serious bilateral relations. Until then, exchanges had been primarily defined by the accord signed in 1994, which barely took matters beyond general trade points. Lisbon saw the issuance of a Joint Declaration and the signature of the EU–India Civil Aviation Cooperation Agreement, extended until the end of 2006. This wider agenda has expanded over the past five years. Particular progress was made on mutual recognition of regulations at the Hague Summit on 8 November 2004, culminating in the approval of a plan mapping out the so-called 'strategic partnership' in the course of the summit under the British presidency, in Delhi, on 7 September 2005. This consisted of a political declaration and a joint action strategy, advocating reinforced collaboration in a number of fields, including a 'dialogue on democracy', a commitment to 'multilateralism', security issues, cultural exchanges, enhanced cooperation in education within the framework of the Erasmus Mundus programme for higher education, an 'economic policy dialogue', and the encouragement of business-to-business relations. The EU further acknowledged India's role since 2004 in addressing crisis situations in its neighbourhood, especially in Pakistan and Sri Lanka.
Topic:
Security and International Political Economy
Political Geography:
Europe, India, Asia, and Sri Lanka

55. The Relevance of Norms and Values in the EU´s Russia Policy

Author:
Hiski Haukkala
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
For the European Union, the link between norms, values and foreign policy seems to be an obvious one. For example, the new constitutional treaty spells out the set of values on which the Union's external action is based on: democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity, and respect for the principles of the United Nations Charter and international law. In the treaty, the development of relations with third parties is made conditional upon sharing and upholding them.
Topic:
Foreign Policy, Human Rights, International Political Economy, and United Nations
Political Geography:
Russia, Europe, and Asia

56. International transport corridors at the conjunction of geography and politics in Russia

Author:
Katri Pynnöniemi
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
An international transport corridor can be understood as a layout of possible practices that are designed to reinforce proximity rather than remoteness and to create a sense of presence instead of absence. It is, in other words, a perfect example to show how by 'circulating traces' power makes itself felt in space, not as a flow but as an immanent affair that is in constant flux.
Topic:
International Political Economy and Politics
Political Geography:
Russia, Europe, and Asia

57. Endogenous OCA Theory: Using the Gravity Model to Test Mundell's Intuition

Author:
Hubert P. Janicki, Thierry Warin, and Phanindra Wunnava
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This paper presents an empirical assessment of the endogenous optimum currency area theory. This study relies on the original intuition developed by Mundell in 1973. The gravity model is used to empirically assess the effectiveness of the convergence criteria by examining location specific advantages that guide multinational investment within the European Union. A fixed effects model based on a panel data of foreign direct investment (FDI) flows within the EU-15 shows that horizontal investment promotes the diffusion of the production process across the national border. Specifically, the examined Maastricht criteria suggest convergence in interest rate, government fiscal policy, and debt play a significant role in attracting multinational investment.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Europe

58. Inter-organisational relations as a factor shaping the EU's external identity

Author:
Hanna Ojanen
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Among the EU research community, the general consensus of opinion is that the Union is an actor in international relations, and that it wields some kind of power over its member states, in some cases even over outsiders, at least in its near abroad, be that power structural (Rynning 2003) or normative (Manners 2002). What is debated, however, is the nature of the Union's identity. Typically, the debate often centres around the EU's external profile being that of a 'civilian power' versus a military one, or something in between.
Topic:
NATO, International Organization, and International Political Economy
Political Geography:
Europe

59. A Hole in the Wall? Dimensionalism and the EU's "New Neighbourhood Policy"

Author:
Hiski Haukkala
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The successive rounds of enlargements are a factor shaping the European Union. The previous enlargements have all resulted in the broadening of the EU's agenda, changes in the institutions and decision-making, as well as shaping the way in which the world external to the Union has perceived the European integration and its different manifestations, be they institutions or policies. There is dialectic at work, where the “shadow of enlargement” forces the European Union and its member states to adapt its own dynamic to meet the changing circumstances. This adaptation – together with the growing geographic exposure to new neighbours and regions – in turn create an opening and a demand for further enlargements, which then start the dialectic anew.
Topic:
International Organization and International Political Economy
Political Geography:
Europe

60. Political Disaffection and Democratization: History in New Democracies

Author:
Mariano Torcal
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper focuses on the analysis of political disaffection. After discussing and defining this notion, the article shows that disaffection affects more widely, though not exclusively, third-wave democracies. The close link between levels of disaffection and the history of democratization in each country explains its higher incidence among new democracies. For this very reason, political disaffection could also run high among more established democracies. However, regardless of its incidence in each particular country, political disaffection reveals a distinctive nature in new democracies because of the absence of a democratic past in many of these cases. Thus, disaffection constitutes a key element to explain the lower propensity of citizens of new democracies to participate in every dimension of political activity.
Topic:
International Relations, Government, International Political Economy, and Politics
Political Geography:
Europe

61. EU Enlargement: Costs, Benefits, and Strategies for Central and Eastern European Countries

Author:
Marian L. Tupy
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
The accession of eight Central and Eastern European countries (CEECs) to the European Union in 2004 will bring some important benefits. The new members will gain from reduced barriers to trade and investment. By 2010, the movement of labor will also be freed. But accession to the EU is neither a necessary nor a sufficient condition for economic growth. The combined effects of market access and economic liberalization, not EU membership, optimize economic growth.
Topic:
Emerging Markets and International Political Economy
Political Geography:
Europe and Eastern Europe

62. The Dog that Would Never Bite? The Past and Future of the Stability and Growth Pact

Author:
Martin Heipertz and Amy Verdun
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper analyses the underlying reasons for the creation of the Stability and Growth Pact (SGP) and its subsequent development in recent years. The paper examines the economic and political factors behind it, including the role of economic ideas, experts, politicians, institutional arrangements in the Maastricht Treaty, domestic politics, and the exceptional position of Germany in the realm of monetary integration in the EU. It concludes that a set of commonly held beliefs together with a corresponding power-political constellation explain the creation of the SGP.
Topic:
International Political Economy, International Trade and Finance, and Treaties and Agreements
Political Geography:
Europe and Germany

63. Development Cycles, Political Regimes and International Migration

Author:
Andrés Solimano
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
At the turn of the twentieth century, a large number of Europeans, mostly from Italy and Spain, left their homelands and headed to the distant shores of Argentina in response to the good economic opportunities, fertile land and hopes for a better future that were to be found there. At the time, Argentina was one of the most vibrant world economies. Between 1870 and 1930, around seven million people migrated from Europe to Argentina, although nearly three million returned at some different point during those years. Also foreign capital responded to the opportunities offered by Argentina, and British financial institutions funded an important part of the construction of national infrastructure needed to support growth. In contrast, European migration to Argentina virtually stopped in the 1950s, and in the next 30 years or so the country become a net exporter of professionals who were fleeing economic decline, poor opportunities and authoritarian regimes. Moreover, during this period, financial capital steadily left Argentina looking for safer places. Nowadays, and in contrary to the flow of people a century ago, Argentineans are leaving in large numbers to Spain, Italy and other destinations. Emigration this time is associated with the collapse of the country's currency experiment of the 1990s which left a legacy of massive output decline, high unemployment, financial crisis and lost hopes.
Topic:
Development, Emerging Markets, International Political Economy, Migration, and Poverty
Political Geography:
Europe, Argentina, Spain, and Italy

64. Fiscal Policy in the New Open Economy Macroeconomics and Prospects for Fiscal Policy, Coordination

Author:
Leonor Coutinho
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper reviews the analysis of fiscal policy in the new open economy macro-economics literature, in view of increasing interest in the question of transmission and coordination of policies across countries, stirred by developments in this literature and by the formation of the euro area. The analysis focuses on two main points: (i) the identification of welfare spillover effects to third countries; and (ii) the assessments made so far of the potential gains from pursuing non-cooperative and cooperative fiscal stabilisation policies. Regarding welfare spillovers, some additional results are derived to examine whether the exchange rate regime (flexible or fixed) matters for the size of these spillovers, and whether the type of policy pursued (balanced-budget or debt-financed) matters. Fixed exchange rates only seem to postpone the costs from the short to the long run, but the type of policy is crucial in determining the welfare impact of fiscal expansions. With respect to policy coordination, attention is drawn to the need to reflect on a potential role for fiscal policy as a stabilisation tool, and on possible interactions between fiscal and monetary policy.
Topic:
Economics and International Political Economy
Political Geography:
Europe

65. Hard and soft economic policy coordination under EMU: problems, paradoxes and prospects

Author:
Iain Begg
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Although the launch of the euro went better than many expected, sluggish growth, persistent unemployment and growing disenchantment with key elements of the economic governance system have led to demands for change, especially in policy coordination. This paper examines the criticisms of economic policy in the EU and the mechanisms through which it is coordinated, and considers how the EMU policy system might be reformed. It points to problems and paradoxes in the way economic governance operates, notably those surrounding its ability to deliver a coherent policy mix that brings together monetary fiscal and supply-side policies. The paper concludes with a discussion of whether gouvernment économique might offer a way forward.
Topic:
Economics and International Political Economy
Political Geography:
Europe

66. Theories at a loss? EU-NATO fusion and the 'low-politicisation' of security and defence in European integration

Author:
Hanna Ojanen
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
In the European Union, security and defence integration was for a long time seen as impossible or at least highly unlikely. Theories of European integration leaned complacently on the idea that security and defence policy have a specific character that explains this state of affairs. Yet, recent developments seem seriously to challenge their assumptions: the new joint EU crisis management with military means is bound at least to affect, if not replace, the traditional defence policy of the member states.
Topic:
Defense Policy, NATO, International Organization, and International Political Economy
Political Geography:
Europe

67. Back to the Nest? Europe's Relations with the African, Caribbean and Pacific Group of Countries

Author:
John Ravenhill
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Europe's association with African, Caribbean and Pacific (ACP) countries was the first of its interregional relationships. In the nearly half century since the signature of the Treaty of Rome, it developed into Europe's most institutionalized and multidimensional interregional relationship. It embraces not only trade and investment issues but also a development "partnership" that includes what has traditionally been the EU's largest single aid program, a joint parliamentary assembly, meetings of organizations representing civil society, and a dialogue on human rights. This chapter examines the factors that have shaped this relationship over the last four decades. The principal focus is on the trade regime, not just for consistency with the other contributions to this volume but also because it is in its trade dimension that the relationship has changed most dramatically over time.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Africa, Europe, Caribbean, and Rome

68. The Development of Europe's Linkages with East Asia: Hybrid Trans-Regionalism?

Author:
Julie Gilson
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This chapter argues that the EU-Asia trans-regional relationship is still very hard to measure but that there is developing both a notion of economic Asia, a desire to collectivise responses in the face of differentiated resource allocation and a growing dominance of the form of regionalism demonstrated by the EU.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Europe and Asia

69. The European Union's Trade Policy towards MERCOSUR

Author:
Jörg Faust
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Interregional relations between the European Union and MERCOSUR reflect a general trend of governments and firms to institutionalise their relations not only within but also across regions. As the global liberalization process within the WTO has been stagnating in recent years, transregional strategies have become attractive as next-best strategies. Against this background, the following analysis focuses on the institutional development of EU-MERCOSUR relations and the driving forces behind this development from a European perspective. This, because shedding some light on the political economy of relations between two of the most ambitious integration mechanisms of the 1990s should deepen our understanding of the forces shaping the growing importance of transregional and interregional trade relations. Rather than trying to explain the course of EU-MERCOSUR relations by one dominant hypothesis, I make an appeal for a multi-causal framework, highlighting three aspects of particular importance from a bottom up perspective. Firstly, one can observe that the interplay of economic interest groups has strongly influenced the course of interregional institutionalisation between the EU and MERCOSUR.) Secondly, political actors have not acted as mere agents of private interest but also have followed their own political agendas. Thirdly, the European Union's interregional trade strategy towards MERCOSUR has not been independent of the international context.
Topic:
International Political Economy
Political Geography:
Europe, South America, and Latin America

70. National Interests, State Power, and EU Enlargement

Author:
Milada Anna Vachudova and Andrew Moravcsik
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The EU enlargement process and its consequences are decisively influenced by material national interests and state power. Current EU leaders promote accession primarily because they believe it to be in their longterm economic and geopolitical interest, and applicant states embark on the laborious accession process because EU membership brings tremendous economic and geopolitical benefits, particularly as compared exclusion as others move forward. As in previous rounds of EU enlargement, patterns of asymmetrical interdependence dictate that the applicants compromise more on the margin—thereby contributing to a subjective sense of loss among those countries (the applicants) that benefit most. Domestic distributional conflict is exacerbated everywhere, but the losses are in most cases limited, inevitable and, in the longer term, even beneficial. Once in, we should expect applicant states, like their predecessors, to deploy their voting and veto power in an effort to transfer resources to themselves. While overrepresentation of smaller states gives the applicants an impressive number of votes, the lack of new “grand projects” essential to existing members, the diversity of the new members, and above all, the increasingly flexible decision-making structure of the EU, will make it difficult for the new members to prevail.
Topic:
International Political Economy and Politics
Political Geography:
Europe

71. Linkage and Legalism in Institutions: Evidence From Agricultural Trade Negotiations

Author:
Christina Davis
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
In a comparative study of Japanese and European trade policy, this paper explains how the institutional context of negotiations affects political outcomes. I examine two pathways by which negotiation structure promotes liberalization: issue linkage and legal framing. Broadening stakes through issue linkage mobilizes domestic lobbying for liberalization. Use of GATT/WTO trade law in dispute settlement legitimizes arguments favoring liberalization. This study on international institutions addresses the theoretical debates in the field regarding how interdependence and the legalization of international affairs change the nature of state interaction.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
United States, Japan, Europe, and Israel

72. The Construction of Europe in the Northern Dimension

Author:
Christopher S. Browning
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This article focuses on the construction of Europe at the turn of the millennium. Unlike most approaches to this issue that tend to focus analysis on debate in Brussels, the most powerful member states, or on the various IGCs, this paper looks at this question through the lens of the discourses surrounding a regional initiative. The initiative in question is that of the Northern Dimension with the argument being that it is on the EU's borders and in the regional peripheries that the debates constructing the EU can be most clearly identified. In this respect the article contributes to a growing constructivist/poststructuralist literature that places boundary producing practices at the heart of the constitution of subjectivity.
Topic:
Globalization and International Political Economy
Political Geography:
Russia, Europe, and Asia

73. The European Union and Globalisation: Reflections on Strategies of Individual States

Author:
Morten Kelstrup
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Major developments in European politics are related to two simultaneous processes: the process of globalisation and the process of Europeanisation. As Helen Wallace has recently remarked: “For too long the debates on globalisation and on Europeanisation have been conducted in separate compartments and in different terms” (Wallace, 2000, 369). The purpose of this paper is to support the effort in bringing the two debates together. The paper will discuss the two processes, discuss how they interlink, and have a special focus on possible strategies and dilemmas of individual states that are confronted with both processes.
Topic:
Globalization and International Political Economy
Political Geography:
Russia, Europe, and Asia

74. Structural Geopolitics in Europe: Constructing Geopolitical Subjectivity for the EU and Russia

Author:
Pami Aalto
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This paper is designed to elucidate structural geopolitics in Europe. This entails mapping the main structural developments and processes in contemporary Europe in the sphere of spatially and geographically coloured politics, i.e. geopolitics.
Topic:
International Political Economy
Political Geography:
Russia, Europe, and Asia

75. The Evolution of Russian Grand Strategy -- Implications for Europe's North

Author:
Henrikki Heikka
Publication Date:
01-2000
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
A study about Russian grand strategy is certain to raise more than a few eyebrows among observers of Russian foreign policy. How can one possibly assume that in a country with constantly changing prime ministers and an economy on the verge of bankruptcy there could be a commonly accepted Grand Plan about anything? Moreover, the record of post-cold war Russian foreign policy is so full of reckless moves and unpredictable u-turns, that it seems rather far-fetched to suggest that there could be, even in theory, a common logic behind it. Judging by the steady flow of publications on the role of self-interested politicians, parties, business elites, and organizational and bureaucratic actors in the formation of Russian foreign policy, it does indeed seem that most scholars see Russia's external policy driven by the day-to-day power struggles of various groups within the Russian political elite rather than by a common national strategy.
Topic:
Foreign Policy and International Political Economy
Political Geography:
Russia, Europe, and Asia

76. The Saviour and Other Europes—Identity, Interests, and Geopolitical Images of Europe in Estonia

Author:
Pami Aalto
Publication Date:
04-2000
Content Type:
Working Paper
Institution:
International Studies Association
Abstract:
It is no secret that research on integration within the European Union (EU) is not any more limited to the traditional dispute between intergovernmentalism and neo-functionalism. The debate between these two branches of research is now joined by International Relations (IR) constructivism, comparative politics approaches, and approaches treating the EU as “new governance” (Christiansen et al. 1999: 537). The issue of EU enlargement, moreover, enforces us to enlarge the research agenda horizontally, too, in order to make EU integration comprehensible. One of the metaphors depicting this enlarged research agenda is the “Europe of concentric circles”, with Brussels and EU institutions as the centre (Joenniemi 1993: 209- 12). For Ola Tunander (1997: 32), the emerging perception in the EU centre is that it represents a “Cosmos” of order and peace. This “Cosmos” is surrounded by a concentric circle of less integrated EU members, then a circle of relatively stable states eager for joining the EU, an outer circle of states less prepared to do so, and finally, a periphery representing “Chaos”; a final frontier of Europe which is definitely not about to join the EU in the foreseeable future. Ole Wæver (1997), for his part, speaks of a “Europe of three empires”. The EU is the most important empire, but it is accompanied by the “empire of the Tsars” -- Russia and its sphere of interests -- and the “empire of the Ottomans” -- Turkey with its sphere of interests.
Topic:
Globalization, International Political Economy, and International Trade and Finance
Political Geography:
Europe and Israel

77. EMU Effects on International Trade and Investment

Author:
Harry Flam and Per Jansson
Publication Date:
04-2000
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The partial effect of nominal exchange rate volatility on exports from each EMU member to the rest of the EMU is estimated on annual data for 1967-97, using modern time-series methods. The long-run relations between exchange rate volatility and exports are mostly negative and in several cases insignificantly different from zero. Thus, these estimates do not provide much support for the hypothesis that the elimination of nominal exchange rate volatility will significantly increase trade within the EMU. However, the EMU will presumably lead to geographical concentration of production and therefore indirectly to increased trade within the EMU and, during a transitional stage, to increased foreign direct investment, both within the EMU and between the EMU and the rest of the world.
Topic:
Economics, Government, International Political Economy, and International Trade and Finance
Political Geography:
Europe

78. The Impact of EMU on European Transition Economies

Author:
David Begg
Publication Date:
04-2000
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
An interesting theory of transition must give a convincing account of structural adjustment and supply side improvement. In this paper, I discuss the incentives for government to undertake costly supply side improvement and how these relate to incentives governing the design of monetary and fiscal policy during transition. The government cares about deviations of inflation, output and government spending from their ideal levels, is subject to a budget constraint in which inflation yields some real revenue, and recognizes the distortionary effects of excess levels of taxation. Costly structural adjustment enhances future output by reducing supply side distortions.
Topic:
Economics, Government, and International Political Economy
Political Geography:
Europe

79. EMU and the Developing Countries

Author:
Benjamin J. Cohen
Publication Date:
03-2000
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The purpose of this paper is to explore economic and political implications of Europe's Economic and Monetary Union (EMU) for developing countries. In strictly economics terms, influences will be communicated through both trade and financial channels. Economies in the developing world will be affected by changes in European growth rates as well as by EMU's impact on transaction costs and enterprise competitiveness within Europe; they will also be impacted by changes in the structure and efficiency of Europe's capital markets. Modifications may be anticipated in borrowing and investment practices at the private level as well as in reserve and debt-management policies at the official level. In political terms, developing countries will be most directly influences by the anticipated rivalry between Europe's new single currency, the euro, and the dollar, which will compel developing countries to reconsider their own national currency strategies. Three conclusions stand out. First, except for selected groups of countries with particularly close ties to the EU, most economic linkages appear marginal at best. It is much easier to enumerate possible channels of transmission than to find many that appear quantitatively significant. Second, among economic effects of EMU, financial channels seem to matter more than trade channels. And third, across the full range of possible linkages, the most lasting influences for developing countries may well turn out, notably, to be political rather than either trade or financial. Significant changes are likely in exchange-rates regimes in many parts of the developing world.
Topic:
Emerging Markets, Government, and International Political Economy
Political Geography:
Europe

80. Will the Euro Trigger More Monetary Unions in Africa?

Author:
Patrick Honohan and Philip R. Lane
Publication Date:
03-2000
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We analyse the prospects for greater monetary integration in Africa, in the wake of EMU. We argue that the structural characteristics of African economies are quite different to the EMU members but that much can be gained from monetary cooperation, as an external agency of restraint and in promoting stability in the financial sector. EMU has only a marginal impact on the net benefits of monetary cooperation but the euro would be a natural anchor for any African monetary unions. Indeed, the most likely route to new monetary cooperation in Africa is via a common peg to the euro.
Topic:
Emerging Markets and International Political Economy
Political Geography:
Africa and Europe

81. Coming Home or Moving Home? "Westernising" Narratives in Finnish Foreign Policy and the Re-interpretation of Past Identities

Author:
Chris Browning
Publication Date:
01-1999
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Since the end of the Cold War it is widely accepted that Finnish foreign policy has oriented increasingly towards the 'West', the most pertinent and concrete example of which, to date, has been accession to the EU. Implicit in many commentaries is the assumption that this orientation is a natural phenomenon, the natural culmination of an effervescent Finnish 'Western' cultural identity. Whilst the rhetorical style perhaps differs espousers of this view draw on Herderian and Hegelian assumptions, essentially arguing that after the unfortunate interruption and deviation from its true path occasioned by the Cold War the Finnish 'national spirit' is now back on its rightful historical and linear course to national fulfilment and blossoming. Looking into the nation's history such discourses see Finland's cultural and political roots as lying in the West and hence posit that with the break-up of the Soviet Union Finland is returning to these organic origins in Western civilisation, with all the effects for foreign policy such a 'Western' identity will entail. This is what we may term the 'Westernising' narrative of current debates about Finnish identity and Finnish foreign policy. On this basis the Finnish Cold War foreign policy of neutrality is characterised, either as having been a total aberration and betrayal of the Finnish 'Western' Self, or, and perhaps more commonly, as having been the best possible option available to the Finnish elite at the time: constrained by the dictates of power, agile Finnish political leaders were able to manoeuvre the Finnish ship of state through the various pitfalls and traps waiting to beguile them in the stormy waters of great power Cold War politics. Now free of such power dictates these current 'Westernising' discourses are attempting to push Finnish foreign policy towards the West, legitimising such a move to the Finnish public and the wider international audience on the grounds of Finland's claimed historical Western identity. To note the title of this panel discussion, “Defining New Identities Between East and West', for Westernising discourses there is no between about it. As an organically Western state why would Finland want to be between East and West any longer? On this basis the Finnish neutrality of the Cold War period merely disguised the true Finnish identity, a ruse so that Finland could in the future once more live as its true self when conditions once again permitted.
Topic:
International Relations, Foreign Policy, International Political Economy, and Nationalism
Political Geography:
Europe and Finland

82. On the Regulation of Telecommunications Markets

Author:
Manfred J. Holler
Publication Date:
08-1999
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the theoretical concepts underlying recent developments in the regulation of telecommunications in Europe, the USA and developing countries with respect to efficiency and welfare. It focuses on analysing standardization problems, pricing rules and entry condition related to networks and network effects and derives preliminary policy recommendations for the telecommunications industry through a discussion of network models and related empirical evidence.
Topic:
Emerging Markets, International Political Economy, and Science and Technology
Political Geography:
United States and Europe

83. The Asian Currency Crisis: Origins, Lessons and Future Outlook

Author:
Abdur Chowdhury
Publication Date:
02-1999
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
What started in the summer of 1997 as a regional economic and financial crisis in East and Southeast Asia had developed into a global financial crisis within the span of a year. This crisis followed the crisis in the European Monetary System in 1992–3 and the Mexican peso crisis in 1994–5. However, unlike the previous two crises, the scale and depth of the Asian crisis surprised everyone. One obvious reason for this is East and Southeast Asia's track record of economic success. Since the 1960s, no other group of countries in the world has produced more rapid economic growth or such a dramatic reduction in poverty. Given so many years of sustained economic performance the obvious question is: how could events in Asia unfold as they did?
Topic:
Economics and International Political Economy
Political Geography:
Europe, Asia, and Southeast Asia