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  • Author: James M Dorsey
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: The Begin-Sadat Centre for Strategic Studies (BESA)
  • Abstract: EXECUTIVE SUMMARY: Much of the Middle East’s recent turmoil stems from internecine Middle Eastern rivalries spilling onto third country battlefields and Saudi and UAE-led efforts to roll back the achievements of the 2011 popular Arab revolts and pre-empt further uprisings. The recent successful toppling of ailing Algerian president Abdelaziz Bouteflika and months of anti-government demonstrations that have put Sudanese leader Omar al-Bashir on the defensive suggest that the Saudi-UAE effort may be faltering.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Israel
  • Author: Qiyuan Xu
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: In 2017, the Chinese economy rebounded more significantly than expected. There is now general anticipation that growth in 2018 will fall slightly compared with that of 2017, but that it will remain stable at 6.5 percent or above. However, there are some factors that could lead to downward pressure on investment and consumption in 2018
  • Topic: International Political Economy, International Affairs
  • Political Geography: China
  • Author: Ville Sinkkonen, Mika Aaltola
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: The Finnish Institute for International Affairs
  • Abstract: Donald Trump’s first year as President has been marked by continuity in US security policy, a partial challenge to the global principles of free trade, and a sea change in commitments to the liberal international order. These reflect a view of the international system as a zero-sum competitive realm.
  • Topic: International Political Economy, Political Theory, Capitalism
  • Political Geography: Global Focus
  • Author: Ana Karen Negrete-García
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper investigates the existence and nature of constraints prevailing among Mexican microenterprises. It provides inter‐temporal insights by relying on firm‐level data span‐ning from 1994 to 2012. A performance index is defined based on firm levels of capital stock and monthly profits, and is used to estimate the empirical probability of a business’s success. The predicted values are used to classify every microenterprise into one of three categories: upper, middle, or lower segment. Overall, the study provides evidence of con‐ strained productivity and capital misallocation. Specifically, middle‐segment firms exhibit entrepreneurial features and their average marginal returns are 15 percent. Because this segment faces mainly external constraints, cost‐effective interventions are plausible. Re‐garding the lower‐segment firms, it is estimated that their average monthly marginal re‐ turns are 30 per cent, compared to 1 per cent for the upper segment. It is also shown that, over time, the share that middle‐segment firms represent relative to all microenterprises increased from 16 to 22 percent. Lastly, the sources of variation in monthly profits among segments are explored using the Oaxaca‐Blinder decomposition method.
  • Topic: International Political Economy
  • Political Geography: Mexico
  • Author: Maria Demertzis, 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
  • Author: Marilena Koppa
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: International Relations Council of Turkey (UİK-IRCT)
  • Abstract: This article explores the role of Greece in the Balkans since the end of Communism and the impact of the sovereign debt crisis that followed. Since the beginning of the 1990s, while Greece failed to accomplish its vocation at the political level, at the level of the economy the country acted as an important regional actor. The article examines the dynamics of the Greek crisis on the Balkan economies and analyses the major challenges for Greece in this new reality. At the same times, it tries to identify the triple crisis faced currently by Greece: at the level of credibility and status, at the level of mediation between the region and the EU and, finally, at the level of the gradual peripherisation of the country.
  • Topic: International Political Economy, Financial Crisis
  • Political Geography: Greece
  • Author: Stephen L. Magiera
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: Foreign investors can lodge a complaint against a host country for alleged treaty violations under the Investor-State Dispute Settlement (ISDS) provisions of bilateral investment treaties (BITs). The complaints are arbitrated internationally outside the host country's domestic court, sometimes involve claims exceeding US$1 billion, and give rise to significant financial risk of international arbitration for host countries. Because of this, Indonesia has recently cancelled many of its BITs. But at the same time, Indonesia has agreed to ISDS under the ASEAN Comprehensive Investment Agreement (ACIA) and ASEAN's five agreements with Dialogue Partners. Furthermore, President Joko Widodo has expressed strong interest in joining the Trans-Pacific Partnership (TPP), which contains provisions for ISDS. ASEAN's Regional Comprehensive Economic Partnership (RCEP) will also provide for ISDS. This note reviews the status of Indonesia's international obligations with respect to ISDS, evaluates some of the benefits and costs of ISDS, and reviews the extent to which Indonesia would be undertaking new ISDS obligations under TPP. The note concludes with a discussion of ways that Indonesia can reduce the risk of international arbitration through domestic regulatory reforms.
  • Topic: Economics, International Political Economy
  • Political Geography: Southeast Asia
  • Author: Zsolt Darvas, 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, Europe Union
  • Political Geography: Europe
  • Author: Yakov Ben-Haim, Maria Demertzis, 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, International Trade and Finance
  • Political Geography: Europe
  • Author: Ahmad Alili, Victoria Bittner
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Economic and Social Development (CESD)
  • Abstract: Azerbaijan’s membership in the EITI is considered a key asset to the country’s oil and natural gas economy. As a result of leaving the EITI, Azerbaijan might be regarded as ineligible for future loans by the World Bank and other international institutions for projects, such as the Southern Gas Corridor Project (TAP&TANAP). It is quite an important decision for the country, which was a founding member of the initiative, to leave it. It is going to have considerable effects on the economy and civil society in Azerbaijan. This article aims to shed light on the possible domestic developments of Azerbaijan’s suspension of the EITI.
  • Topic: Economics, International Political Economy
  • Political Geography: Azerbaijan
  • Author: Rashad Hasanov
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Economic and Social Development (CESD)
  • Abstract: The implementation of fixed exchange rate regime for 20 years (1994-2014) resulted in a formation of an insecure currency position for all interest groups, including the government and business. Although the pressures on manat have commenced to increase since the second half of 2014, the Central Bank and the government failed in comprehending the process. That is why, promising statements have been made to the general public. But the following events proved the underlying problem more severe and the implemented monetary, fiscal and exchange rate policies ineffective in the long-term. Business, citizens, as well as state-owned enterprises faced serious financial losses. The country experienced serious threats with regard to its financial sustainability.
  • Topic: International Political Economy, Monetary Policy, Finance
  • Political Geography: Azerbaijan
  • Author: Rashad Hasanov
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Economic and Social Development (CESD)
  • Abstract: Without a doubt, 2016 is considered as one of the painful years for the economy of the country. That is to say, the economy of the country encountered nearly 4.0 % decline [during January-November 2016 GDP fell by 3.9% compared with the previous year, SSCRA1], the depreciation of national currency continued, as a result, manat lost its value by 12.5% during the year. The depreciation of national currency reached 57% from January, 2015 until December, 2016. Inflation rate increased to 12.1%, hitting a two-digit level first time since 2008 and consequently, real income of population shrank by 3.2%. The tight monetary and credit policies of the government led to weakening economic activity, lending level fell to the minimum, 11 banks were closed (one of them being systematically important). The state budget revenues and expenditures executed with respectively 16.1% and 10% decrease in 2016, compared with the January-November, 2015.
  • Topic: Economics, International Political Economy, Finance
  • Political Geography: Azerbaijan
  • Author: Steve Goodrich
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Transparency International
  • Abstract: It is well established that companies based in the UK’s Overseas Territories (OTs) and Crown Dependencies are widely used in money laundering and grand corruption cases.1 The absence of any public information about them allows corrupt beneficial owners to buy luxury goods and property with anonymity and enjoy their ill-gotten gains with impunity. Journalists, citizen investigators and businesses looking to find out who’s behind these anonymous corporate entities hit a brick wall whenever they encounter them, and rely almost entirely on periodic leaks like the Panama Papers to unveil who really owns them.2 Their use is so problematic that the UK’s National Crime Agency (NCA) has openly cited their opacity as a strategic risk to the UK.3
  • Topic: Corruption, International Political Economy
  • Political Geography: Global Focus
  • Author: Ali Enami, Nora Lustig, Rodrigo Aranda
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income remains unchanged. We show that in a world with more than a single fiscal instrument, the simple rule that progressive taxes or transfers are always equalizing not necessarily holds, and offer alternative rules that survive a theoretical scrutiny. In particular, we show that the sign of the marginal contribution unambiguously predicts whether a tax or a transfer is equalizing or not.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: Jeong Hyung-Gon
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Since the global economic crisis triggered in the United States in 2008, the East Asian economic region has received particular attention as it achieved relatively solid economic growth compared to developed countries, which struggled with recession. The discussion on economic cooperation and economic liberalization within East Asia has mainly focused on the RCEP, with this discussion being led by ASEAN as it calls for ASEAN centrality. ASEAN is currently the second-largest overseas investment destination and second-largest trading partner for South Korea, making it an important partner in economic cooperation for South Korea. Particularly, as China is openly implementing economic retaliatory measures against South Korea for the deployment of THAAD missiles in the nation, South Korea has become more interested in the ASEAN market as it strives to diversify its trade and investment portfolio. Under this background, this research examines the characteristics of ASEAN FDI by income level and doing business conditions, then conducts an empirical analysis of determination factors to draw policy implications for stronger economic cooperation with ASEAN.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Asia
  • Author: Choi Hyelin, Kim Subin, Jung Sung Chun
  • Publication Date: 09-2017
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Productivity is considered one of the most important factors for economic growth. Total productivity grows through technological progress or realloca-tion of resources. This paper analyses their contribution to economic growth for total economy and by sectors. The main finding is that economy-wide increases but this is mainly due to internal technological improvements. On the one hand, inter-sector reallocation of labor negatively contributes to eco-nomic growth as employment moves to service sectors with low productivity. Further, when looking at the sectoral-level productivity growth, both internal and external restructuring make positive contributions to aggregate economic growth. However, internal technological progress and reallocation of employment appear to similarly contribute to the sectoral-level economic growth in the manufacturing sector, whereas internal restructuring makes a larger contribution to economic growth in the service sector. This suggests that there is more room for reallocation of resources to contribute to the productivity growth in service sectors. Therefore, the productivity growth of the service sector would foster economy-wide productivity and it can be achieved by the mitigation of misallocation of resources in service sectors.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Asia
  • Author: Lee Sooyoung
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: The last decade of the world trade has been marked by an unprecedented collapse, quick recovery, slowdown, another drop, and recovery. To study cyclical and structural aspects of the recent trend of trade, I use both aggregate and disaggregated trade statistics of a small open economy, South Korea, whose economic success and growth have been heavily dependent on exports. The aggregate trend of the country is surprisingly similar to that of the world, which is why the trend of Korea's export is called a proxy for the world. I show that while the last drop of trade after 2015 has cyclical aspects, there is evidence that the continued slowdown from 2012 is structural: (1) the so-called `China factor' is found in the analysis of trade-income elasticity of the world and China for imports from Korea. (2) The bilateral trade barriers between Korea and its important trading partners are universally tightening. I also show that the firm sizes, destination countries, and the mode of transactions affect disaggregated trade flows during the slowdown periods. It is advisable to diversify main export products to lower the effect of oil prices on export prices and to strengthen the cooperation with ASEAN countries, whose trade barriers have exceptionally diminished throughout the last decade.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Asia
  • Author: Kim Sujin
  • Publication Date: 05-2017
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Even at near-zero interest rates for a prolonged period since the financial crisis, why has business investment in advanced economies remained persistently below its pre-crisis level? This paper investigates empirically the roots of this investment puzzle from the global megatrend perspective. The empirical model of this study augmented the uncertainty-finance accelerator investment model with megatrend variables of a transition to service industry, ageing population and a rise in income inequality. The main estimation results show that they have affected negatively the business investment over the period 1980-2014. The shift-to-service driven investment fall is the price-dominant effect during the transition, which is not necessarily pessimistic news, while the suppressing effects from ageing and a rise in income inequality require adequate policy reactions. In addition, the analysis finds significant negative spillover effects of trade partners' ageing and income inequality on a country's own private investment. Based on the empirical results, I expect that the G20’s efforts in inclusiveness with structural reforms will stimulate global business investment.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Asia
  • Author: Lee Woong
  • Publication Date: 04-2017
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: India is the first country to introduce mandatory CSR spending for eligible firms, based on the revision of the Companies Act in 2013. In this paper, I explore the effects of the revision of the Companies Act in India on the likelihood of a firm's CSR participation and its profit. It is the first work to investigate the effects of the provision of mandatory CSR. The results show that the revision increased the eligible firms' CSR incurrence by 2.3 percentage points, compared to ineligible firms. The findings also indicate that the revision is effective to increase the eligible firms' profits by 3.5 percent, compared to the ineligible firms. Therefore, I suggest that profit-maximizing CSR and private provision of public goods through mandatory CSR are valid in India.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Asia
  • Author: Joseph E. Aldy
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: This paper examines the choice between—and design of—CO2 cap-and-trade and tax policies through a political-economy lens. It draws from insights in economics and political economy to highlight important public policy principles and policy options in carbon-pricing policy design. The paper illustrates each of these insights with examples from cap-and-trade and tax-policy experiences. Revealed political preferences about carbon-pricing-policy design can, in practice, inform our understanding of how decision-makers weigh various policy principles, as well as policy objectives. The balance of the paper examines the following design choices: establishing and phasing-in policy targets; setting the point of compliance and scope of coverage; addressing uncertainties in emission and cost outcomes under carbon pricing; updating carbon-pricing targets over time; using revenue and other forms of economic value created by carbon pricing; mitigating adverse competitiveness impacts of pricing carbon; accounting for the existing, complex policy landscape in designing carbon pricing; and linking of carbon-pricing programs. The final section concludes with a discussion of policy implications and next steps for policy-relevant scholarship.
  • Topic: International Political Economy, Climate Finance, Global Political Economy
  • Political Geography: Global Focus
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Centre for East European Studies, University of Warsaw
  • Abstract: Every year the World Association of Investment Promotion Agencies (WAIPA) surveys its members. This survey, conducted in 2017, polled over 90 agencies on numerous aspect
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: Liu Dongmin
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: The Chinese government seeks a more prominent role for China’s currency, the renminbi, in the international financial system. Its efforts to establish the renminbi as an international currency – like the US dollar – have hitherto emphasized relatively limited applications such as trade settlement and exchange rate arbitrage. However, recent market and policy developments point to the internationalization process henceforth being driven more by the renminbi’s status as a reserve currency
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Mohsen Shariatinia, Hamidreza Azizi
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: Iran served as a bridge in the ancient Silk Road, connecting the East and the West. It also has great potential to play an important role in the new Silk Road. The present study analyzes the factors affecting Iran–China cooperation in the context of the Belt and Road Initiative at the strategic and operational levels. This article shows that, at the strategic level, Iran defines this project as an opportunity to improve its status in the world economy, expanding its room to manoeuvre in the international arena and developing its ties with China, a rising great power. At the operational level, the opportunities and challenges for Iran–China cooperation could be summarized as pertaining to five realms within the Silk Road Economic Belt Initiative: policy coordination, facilitation of connectivity, unimpeded trade, financial integration and people-to-people bonds. The present study asserts that the main opportunity for cooperation between the two countries lies in facilitating connectivity and that the key challenge is financial integration.
  • Topic: International Political Economy, International Affairs
  • Political Geography: China, Iran
  • Author: Giovanni Andornino
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: As Chinese leaders endeavor to maintain the international environment aligned with their strategic aim of realizing the “dream of national rejuvenation,” the remarkable increase in China’s capabilities, coupled with uncertainty in the global economy and the ambivalent attitude of the USA toward the international order, poses fresh challenges to Beijing’s foreign policy. The present paper argues that a lexicographic preference for the mitigation of the risk of pushback against China’s core interests underpins the Belt and Road Initiative. Pursuing a strategy of credible reassurance commensurate to the shift in the distribution of power in China’s neighborhood and globally, President Xi Jinping’s administration has been cultivating a form of connective leadership that commits China to the encapsulation of the Belt and Road Initiative for transregional connectivity into its own national development strategy, generating an octroyé, non-hegemonic, type of international social capital, and integrating the existing order without corroborating the position of its founder
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Chanchal Kumar Sharma
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper links the foreign economic engagement of India’s states with the literature on federalism, thereby contributing to an understanding of the political economy of FDI in‐flows in a parliamentary federal system. More specifically, it studies subnational governments’ international engagements to attract foreign direct investment (FDI) and investigates whether the political affiliations of states’ chief ministers and parliamentarians determine the spatial distribution of FDI across the Indian states, correcting for the influence of per capita income, population density, urbanisation, infrastructure, policy regime, and human development. Although the central government plays no direct role in determining the state to which FDI goes, the centre–state relations in a federal structure play a role in creating perceptions about the relative political risk involved in different investment destinations. Employing multiple linear regressions to analyse time‐series (2000–2013) cross‐sectional (12 states) data using the panel procedure, the study finds that affiliated states attract relatively more FDI per capita in comparison to states ruled by opposition parties or coalition partners. However, some exceptions do result, primarily due to two phenomena: first, the presence of a strong state leadership and, second, the presence of a significant share of members of parliament belonging to the prime minister’s party in the non‐affiliated states. Further, states ruled by outside supporters have been most successful in attracting FDI inflows during the coalition period.  
  • Topic: International Political Economy, International Affairs
  • Political Geography: Global Focus
  • Author: Kristin McKie
  • Publication Date: 12-2017
  • Content Type: Working Paper
  • Institution: International Peace Institute
  • Abstract: Since presidential term limits were (re)adopted into many constitutions during the third wave of democratization, 207 presidents across Latin America, Africa, the Middle East, and Asia have reached the end of their terms in office. Of these, 30% have attempted to contravene term limits whereas 70% have stepped down in compliance with tenure rules. Furthermore, of the presidents who have attempted to alter tenure restrictions, some have succeeded in fully abolishing term limits, others have only managed a one-term extension, while a minority have failed in their bids to secure any additional terms in office. What explains these divergent trajectories? On the basis of a series of statistical analyses, I argue that trends in electoral competition over time are the best predictor of the range of term limit contravention outcomes across the board, with the least competitive elections permitting full term limit abolition and the most competitive elections saving off attempts at altering executive tenure rules. Furthermore, results show that failed contravention attempts are true borderline cases, rather than instances gross miscalculations of success by the president and her party, in that they feature less competitive elections than non-attempt cases but more competitive elections than successful contravention cases. These findings suggest a linkage between political uncertainty and constitutional stability more generally.
  • Topic: International Political Economy
  • Political Geography: Global Focus
  • Author: Dieter Ernst
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: This paper explores what we know about possible employment effects of the 10-year plan, issued by the State Council on May 19, 2015, entitled Made in China 2025. MIC2025 was designed to address China’s emerging labor shortage challenge. To achieve this goal, the plan seeks to boost labor productivity through an increased use of robots and through network-based upgrading of the entire industrial value chain and related services. How might the projected increase in labor productivity affect the creation and quality of jobs in China? Will China’s push into advanced manufacturing now move the country’s manufacturing employment closer to the pattern of “employment de-industrialization” observed in the US and other industrialized countries? How China will cope with the advanced manufacturing challenge for employment will have major implications not only for the US and other industrialized countries, but also for emerging economies and, most importantly for the majority of developing countries that are still struggling as latecomers to labor-intensive industrial manufacturing. The paper lays out objectives of the MIC 2025 plan and highlights a failure of Chinese policy makers to take into account employment effects and other labor market issues when they design their grand visions of industrial policy. The paper finds that until 2014, manufacturing has acted as an employment absorber in China. However new data on unemployment, labor force participation and income inequality signal that China may now be moving towards an “employment de-industrialization” pattern, unless enough knowledge-intensive service jobs will be created in China’s growing information economy. The paper concludes with implications for policy and further research.
  • Topic: Economics, International Political Economy, Markets, Labor Issues
  • Political Geography: China
  • Author: Mireya Solis
  • Publication Date: 10-2016
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: Trade policy, and the Trans-Pacific Partnership (TPP) in particular, is vitally connected to the national interests of prosperity, security, and governance. With novel rules on the digital economy, high tariff elimina- tion targets, and disciplines to address behind-the-border protectionism, the TPP creates opportunities for American sectors that enjoy competitive strength—services, advanced manufacturing, agriculture—to expand their reach in overseas markets. Projected annual income gains from this trade deal range between $57 billion and $131 billion by 2032, compared to a base- line scenario. In sharp contrast to the experience of import competition with China, the TPP will not impose large adjustment costs in terms of employment and wages, generating instead a net (albeit small) positive effect on job creation and wage rates. However, the individual costs for displaced employees are very high, and the contours of a new pro-adjustment safety net that enables workers to navigate difficult economic transitions (brought about by technological change or trade) are highlighted below.
  • Topic: Globalization, International Political Economy, International Trade and Finance
  • Political Geography: America, Asia-Pacific
  • Author: Jeffrey Bader
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: Serious people understand that the manner in which the United States deals with China will be a critical, if not the critical, overseas chal- lenge for the United States in the 21st century. China will likely be the largest economy in the world within one or two decades; the second or third strongest military soon, if not already; and competitive with the United States and Europe in global economic, and perhaps political and cultural, influence in some regions. China is ruled by a Communist Par- ty resistant to political liberalization at home and wedded to nationalist rhetoric and behavior in dealing with its neighborhood, enhancing the chances for rivalry with the United States. For those students of history who see conflict as the likely outcome when ris- ing powers encounter dominant powers, these are precursors of a dark future. How should we deal with China? What policy framework best optimizes our interests, which are multiple and not always consistent with each oth- er? Americans are in the midst of an ongoing presidential campaign that, in a better world, would be asking and answering such questions, but this is not such a campaign.
  • Topic: International Relations, Foreign Policy, International Political Economy
  • Political Geography: China, America
  • Author: Christopher Wilson
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: The Woodrow Wilson International Center for Scholars
  • Abstract: The U.S.-Mexico trade relationship is huge. The two countries trade over a half-trillion dollars in goods and services each year, which amounts to more than a million dollars in bilateral commerce every minute. With such a large volume of trade, it is not hard to believe that the number of jobs that depend on the bilateral relationship is similarly impressive. New research commissioned by the Mexico Institute shows precisely that: nearly five million U.S. jobs depend on trade with Mexico. This means that one out of every 29 U.S. workers has a job supported by U.S.-Mexico trade.
  • Topic: Globalization, International Political Economy, International Trade and Finance, Employment
  • Political Geography: America, Mexico
  • Author: Yan Lili Ing, Miaojie Yu, Rui Zhang
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: We define and measure "firm-product-destination-year-specific export quality" and investigate how quality competition from China affects Indonesian firm productivity in the domestic and export markets. Our results suggest that an increase in Chinese exported product quality by 10 percent will increase the productivity of Indonesian firms by 0.4 - 0.5 percent in Indonesia's domestic market, and increase Indonesian exporters' productivity by 2 percent in the export market. Where we limit our sample to exporters only, an increase in Chinese exported product quality will increase Indonesian firm productivity in the export market, but not in the domestic market. Our findings broaden the horizon through which firms could benefit from opening up to trade.
  • Topic: Economics, International Political Economy, International Trade and Finance
  • Political Geography: Southeast Asia
  • Author: Luke Patey, Michal Meidan
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The size and sophistication of Chinese foreign investment is on the rise. In 2014, inbound investment to China was outpaced by outbound investment for the first time. Chinese foreign investment has surpassed the $100 billion mark for the past three years, making China the third largest overseas investor. At the same time, beyond oil and gas, which dominated headlines over the past decade, Chinese state-owned enterprises and private corporations are making multi-billion dollar investments in construction, telecommunications, nuclear, and high-tech across the globe. What political and security implications do these new investment have for host government in North America and Europe? What is the view point of Beijing towards the growing reach of its corporations overseas? A new policy brief by Michal Meidan, research associate at Chatham House and Asia Analyst at Energy Aspects, and DIIS senior researcher Luke Patey explores these questions.
  • Topic: Globalization, International Political Economy, International Trade and Finance
  • Political Geography: China, Global Focus
  • Author: Angela Stanzel, Agatha Kratz, Justyna Szczudlik, Dragan Pavlićević
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: European Council On Foreign Relations
  • Abstract: China faced hard times in 2016 – at least when it comes to promoting its investment in Europe. The European Union is one of its most important economic and trading partners and the final destination of China’s flagship initiative, the New Silk Road. However, some EU member states have recently become increasingly critical of China’s push for more investment in Europe. Beijing has invested significant effort in building a new entry point into Europe through the central and eastern European (CEE) countries – in particular, through the 16+1 framework. As reflected in Agatha Kratz’s article in this edition of China Analysis, the CEE region is attractive to China thanks to its strategic geographical position for the New Silk Road project, its high-skilled yet cheap labour, and its open trade and investment environment.
  • Topic: International Political Economy, International Affairs
  • Political Geography: China
  • Author: Malcolm D. Knight
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The past 20 years have witnessed a profound change in the types of non-resident investors who provide funding to emerging market economies (EMEs) and the nancial instruments through which emerging market (EM) corporations borrow from abroad. Until the beginning of the new millennium, private capital ows to EMEs were mainly intermediated by large global banks, and EMEs were subjected to massive volatility in their external payments balances, exchange rates and domestic nancial systems. But since the early 2000s the role of bank- intermediated credit has declined, as the base of investors willing to take on exposure to EM corporate debt has become much larger and more diverse. These structural changes have encouraged a vast growth in ows of funds, not only from the mature economies to EMEs as a group, but also among EMEs themselves.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: August Reinisch
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Since the transfer of foreign direct investment powers from the European Union member states to the European Union itself in the 2009 Treaty of Lisbon, the European Commission, the main external trade actor for the European Union, has started to negotiate international investment agreements as well as investment chapters in enlarged free trade agreements (FTAs). Both contain substantive protection standards and enforcement mechanisms in case of disputes, usually both state–state and investor–state arbitration (ISA). With regard to the latter, it was unclear whether the European Commission, the European Union’s experienced World Trade Organization (WTO) litigator, would continue to use the interstate template of trade disputes or venture into ISA. After an initial orientation period, the European Commission rmly endorsed ISA, as demonstrated by the negotiations with Canada on the Comprehensive Economic and Trade Agreement (CETA) and with the United States on the Transatlantic Trade and Investment Partnership (TTIP). Meanwhile, however, public opposition to the TTIP, and to ISA in particular, has formed in unexpected dimensions. It even led the European Commission to partially interrupt its trade negotiations with the United States in order to conduct a public consultation on the investment aspects of the TTIP. Ever since, ISA has remained one of the most controversial parts of the planned trade agreements. Most recently, the European Commission tabled a TTIP proposal to set up a permanent investment court that would replace the system of ad hoc ISA. This paper analyzes in detail the development of the European Union’s position toward the use of ISA as a means for settling investor-state disputes.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: European Union
  • Author: Hugo Perezcano
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Investor-state arbitration (ISA) has been a controversial topic and a source of criticism and debate for quite some time. Yet, it continues to be a standard feature of modern international investment agreements (IIAs). While opposition to ISA has traditionally come from certain sectors of civil society, there appears to be a growing discomfort now among states as well. Some critics suggest that ISA is unnecessary and should be left out of IIAs altogether. Others argue that it may be needed in IIAs between developed nations that are mostly capital exporters, on the one hand, and developing countries that require foreign capital to promote development, on the other, but that it is unwarranted in IIAs that developed countries enter into among themselves. They reason that developed countries have robust legal frameworks and institutions, including responsive judiciaries, that adequately protect private investment and, therefore, ISA can safely be omitted from such IIAs without any detriment to foreign investors or their investments. This paper addresses some of the aws in the arguments that have been advanced in support of this position, as well as some of its implications, especially the reaction that might be expected from developing countries if developed countries were to back away from ISA in their dealings with other developed nations but continue to demand its inclusion in their agreements with developing countries.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: James M. Boughton
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Economic con ict between nation-states has been a major concern throughout the past century and will continue to threaten progress for the foreseeable future. The language evolves, but the issues persist. The “beggar-thy-neighbour” policies and “competitive devaluations” that aggravated the Great Depression of the 1930s have become the “currency wars” of the twenty- rst century. De ning the problem, however, is easy compared with the task of solving it. A central recurring question is whether policy makers can — and should — cooperate and try to coordinate their policies in an effort to alleviate con icts and improve outcomes.
  • Topic: International Cooperation, International Political Economy, International Development
  • Political Geography: Global Focus
  • Author: John Whalley, Li Chunding
  • Publication Date: 05-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Trans-Pacific Partnership (TPP) Agreement has now been concluded, but it still faces the challenge of ratification in each of the 12 member countries that are partners to the agreement. China is the world’s second- largest economy, but is not part of the TPP Agreement, which has provoked a great deal of debate in China on the best strategy for China to deal with the TPP. This paper analyzes China’s possible trade strategy, raising three issues for consideration, given the TPP Agreement. First, security of market access should be China’s main concern in any free trade agreement (FTA) negotiation, but the TPP does not include content that is particularly relevant to this issue. Second, the nal TPP Agreement is somewhat less than the high-level, ambitious agreement that has been proclaimed. Third, the rati cation process in all 12 member countries will be slow and may possibly not even happen. This paper sets out four strategies for China: to promote the development of China’s remaining regional and bilateral FTAs; to negotiate a bilateral FTA with the United States; to promote deep domestic reform and opening up by enlarging the coverage of the TPP; and, nally, to negotiate its entry in the TPP as soon as possible, so that the terms of entering the agreement do not degenerate for China.
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Marc Lalonde
  • Publication Date: 05-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: I have rarely seen, in my long life, a change as unjustified as the one represented by the new investment tribunal structure now found in the agreed text of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. First of all, it is a poor solution based on a faulty premise. It is the result of an ill-informed but obviously effective campaign by mainly European lobbies[1] and some groups in the European Parliament, which have argued, without proper quantitative or qualitative support, that the present system is biased in favour of foreign investors. If this were the case, how can they explain that, according to the latest statistics from the International Centre for Settlement of Investment Disputes (ICSID), only 46 percent of all ICSID awards upheld (in part or in full) investors’ claims, while 53 percent of the claims were dismissed for lack of jurisdiction or on the merits, and another one percent were rejected as manifestly without legal merit.[2] Similarly, in its 2014 World Investment Report, the United Nations Conference on Trade and Development (UNCTAD) came to the conclusion that, out of 274 concluded investment treaty cases in 2013, 43 percent were decided in favour of the state, 31 percent in favour of the investor and 26 percent were settled.[3]
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: Evangelos Venetis
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: Nowadays Islamic finance is gradually becoming an important part of the international financial system. During the ongoing financial crisis, the role of Islamic finance for the stabilization of the international financial system appears to be strong and promising due to its ethical principles and religious foundation. This analysis focuses both on the quantitative and qualitative examples of the economic upheaval in the Eurozone and Greece and explores the prospects of introducing and developing possible prospects of Islamic finance in the Greek economy.
  • Topic: International Political Economy
  • Political Geography: Greece
  • Author: Kim Young Gui
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: There have been voluminous contributions such as Daudin et al. (2011), Johnson and Noguera (2012), Koopmans et al. (2010), and Trefler and Zhu (2010) in measuring value added trade based on input-output tables as generalizations of the vertical specialization measures following Hummels et al. (2001). These studies focused on trade in intermediate goods as a key feature of recent global trade. In the case of Korea, about 50% of total exports and 70% of its total imports are intermediate goods trade. This paper contributes to the discussion about the trade in intermediate goods and productivity by revisiting Basu (1995), Jones (2011), and Lee and Pyo (2007) to examine implications of trade in intermediate goods for macroeconomic business cycles and productivity and welfare at the current stage of Korean development. The major revision of the Basu (1995) model is attempted by decomposing intermediate goods into domestically produced intermediate inputs and imported intermediate inputs to investigate implications of the model in a small open economy. The major finding is that the procyclicality of the intermediate goods usage relative to labor usage and TFP changes in both value added and gross-output regressions are significantly weaker in a small open economy like Korea than the large economy of the United States. We also investigate the effects of misallocation and multiplier effects due to intermediate goods on industrial productivity and efficiency following the model of Jones (2011). Since the effects of misallocation can be intensified through the industrial input-output structure of the economy, we calculate the intermediate goods multiplier by Korea's 29 manufacturing industries. We find technical changes and the degree of inefficiency are related with the magnitude of multipliers, but we leave a fundamental identification problem to future research
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Asia, Korea
  • Author: Oh Yoon Ah
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This paper examines the determinants of China's development finance to developing countries with a focus on Asia from 2000 to 2012. It uses a recent version of China Aid Data, one of the most reliable and publicly available data sources that systematically collect and differentiate different types of China's official development financial flows. This paper differs from previous studies in two aspects that (1) it analyzes a wider range of developing countries, moving beyond earlier research largely limited to Africa; and (2) it examines regional variation in China's motives for development financing. The findings show that China's allocations decision for concessional development flows, or ODA, has mixed motives of humanitarian, commercial and strategic interests. It is noteworthy that China's ODA appears not to be in competition against, but rather in a complementary form to, established donors in this period. Yet substantial regional variation is observed, suggesting different regional dynamics are at work. On the other hand, it is found that China's allocations decision for less-concessional development financing largely follows commercial considerations. This paper also provides detailed discussion of the trends in China's development finance to Southeast Asia, which is an Asian region critical for China's economic and foreign policy interests. The paper ends with a discussion of the implications of possible shift in China's overseas development finance strategy since 2011.
  • Topic: International Relations, International Political Economy
  • Political Geography: Asia
  • Author: Choi Nakgyoon
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This paper studied the effects of anti-dumping measures on the imports to investigate whether the trade restriction effect of an anti-dumping duty is dominant in the US, the EU, China, and India from 1996 to 2015. Our results indicate that a 1% increase in the anti-dumping duties decreases the import of the targeted product by about 0.43~0.51%. The actual statistics, however, show that the total import of the targeted products increased by about 30 percent while an anti-dumping duty was in force. That indicates that an anti-dumping duty is just a temporary import relief. This paper also investigated whether an anti-dumping duty is terminated in the case that the injury would not be likely to continue or recur if the duty were removed. The increase in market share, MFN tariff rate, and dumping margin turns out to decrease the hazard of termination of an anti-dumping duty, but the increase in value added increases the hazard of termination. Generally speaking, this result indicates that the WTO member countries have regulated the overuse of an anti-dumping measure. It also implies that anti-dumping duties have been used as a tool for trade remedy.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: China
  • Author: Yoon Yeo Joon, Whang Un Jung
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: We propose a new measure of inter-industry ‘distance’. This is constructed a la Antras et al. (2012). While they measure the distance of an industry from its final use ? what they call ‘downstreamness’ of an industry ? we measure the distance between a pair of industries. Our proposed index is a measure of input-output linkages between industries that incorporates a ‘distance’ flavor. Our measure distinguishes the number of vertical production stages that an industry’s product goes through until it is finally used by another industry by assigning larger weights to the value of input use with longer production chains. Hence our measure contains more information on the relation between two industries along the vertical production chain. We use this index to construct an aggregate measure of ‘industry connectedness’ of regions in the U.S. It measures the degree of industrial linkages of a region. We then empirically establish that each region’s labor productivity is positively associated with the ‘industry connectedness’. The result contributes to the large literature of agglomeration economies that the industrial linkage is one of the main sources of agglomeration economies and productivity growth, as emphasized by Marshall (1920). It also suggests that our index can serve as an alternative measure of the industrial linkages.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Global Focus
  • Author: Han Chirok, Shin Kwanho
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Some countries have persistent current account surplus, contributing to global imbalances up to a level that is worrisome. For example, Germany has been continuously experiencing current account surpluses since 2002, amounting to 8.4% of GDP in 2015. China has never experienced current account deficits since 1997, the year that data is first available. Japan's record is even longer; its consecutive current account surplus started from 1981. Recently, Korea joined this large current-account surplus club: since the currency crisis in 1997, Korea's current account balance has been continuously in the black, expanding even more in these recent years. In this paper, we present an empirical methodology that explains how current account balances are determined and by employing it, try to diagnose factors that account for Korea's current account surplus. In fact, the IMF has introduced a methodology, the External Balance Assessment (EBA: Phillips et al., 2013), to assess exchange rate and current account gaps that are defined as the difference between current levels and those consistent with fundamentals. For example, the 2016 External Sector Report, by utilizing this methodology, demonstrates that Korea's real effective exchange rate in 2015 was 4 to 12 percent undervalued than the level consistent with fundamentals.
  • Topic: International Political Economy
  • Political Geography: Korea
  • Author: Kim Wongi
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: In this paper, I empirically examine the effects of uncertainty about government spending policy on economic activity using U.S. time series data. To this end, I constructed government spending policy uncertainty indexes and estimate proxy SVAR model. Proxy SVAR model with constructed indexes shows that an increase in government spending policy uncertainty has negative, sizable, and prolonged effects on economic activity. Moreover, the results imply that the commonly adopted recursive SVAR model in literature on policy uncertainty systematically underestimates the adverse effect of government spending policy uncertainty because of the endogeneity issue. One policy suggestion based on the empirical finding is clear announcement of future government spending path.
  • Topic: International Political Economy
  • Political Geography: Global Focus
  • Author: William R. Cline
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Cline critiques OECD findings on "too much finance," which seem to imply that the optimal amount of credit in an economy is zero, given the linear specification of the main tests. If these results were taken literally, there would be a radical policy implication: Growth would be maximized by completely eliminating credit finance. He then finds that the negative impact of additional finance on growth is reversed when the appropriate (purchasing-power-parity) per capita income is applied and country fixed effects are removed. Separate tests for countries with intermediated finance below and above 60 percent of GDP show a significant positive effect of finance on growth in the lower group but an insignificant effect in the higher group. He also responds to critics of his earlier study.
  • Topic: Economics, International Political Economy, International Trade and Finance, GDP
  • Political Geography: Global Focus
  • Author: J. Bradford Jensen, Dennis P. Quinn, Stephen Weymouth
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The authors investigate a puzzling decline in US firm antidumping (AD) filings in an era of persistent foreign currency undervaluations and increasing import competition. Firms exhibit heterogeneity both within and across industries regarding foreign direct investment (FDI). Firms making vertical, or resource-seeking, investments abroad are less likely to file AD petitions and firms are likely to undertake vertical FDI in the context of currency undervaluation. Hence, the increasing vertical FDI of US firms makes trade disputes far less likely. Data on US manufacturing firms reveals that AD filers generally conduct no intrafirm trade with filed-against countries. Persistent currency undervaluation is associated over time with increased vertical FDI and intrafirm trade by US multinational corporations (MNCs) in the undervaluing country. Among larger US MNCs, the likelihood of an AD filing is negatively associated with increases in intrafirm trade. The authors confirm that undervaluation is associated with more AD filings. However, high levels of intrafirm imports from countries with undervalued currencies significantly decrease the likelihood of AD filings. The study also highlights the centrality of firm heterogeneity in international trade and investment in understanding political mobilization over international economic policy.
  • Topic: Economics, International Political Economy, International Trade and Finance, Foreign Direct Investment
  • Political Geography: United States of America
  • Author: Gary Clyde Hufbauer, Eujiin Jung, Tyler Moran, Martin Vieiro
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Hufbauer and colleagues critically evaluate the Organization for Economic Cooperation and Development’s ambitious multipart project titled Base Erosion and Profit Shifting (BEPS), which contains 15 "Actions" to prevent multinational corporations (MNCs) from escaping their "fair share" of the tax burden. Spurred by G-20 finance ministers, the OECD recommends changes in national legislation, revision of existing bilateral tax treaties, and a new multilateral agreement for participating countries. The proposition that MNCs need to pay more tax enjoys considerable political resonance as government budgets are strained, the world economy is struggling, income inequality is rising, and the news media have publicized instances of corporations legally lowering their global tax burdens by reporting income in low-tax jurisdictions and expenses in high-tax jurisdictions. Given that the US system taxes MNCs more heavily than other advanced countries and provides fewer tax incentives for research and development (R&D), implementation of the BEPS Actions would drive many MNCs to relocate their headquarters to tax-friendly countries and others to offshore significant amounts of R&D activity.
  • Topic: Development, Economics, International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: Volodymyr Dubovyk
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: Since the beginning of Euromaidan (Maidan II), Ukraine finds itself entangled in a deep crisis, which, while not necessarily existential, dramatically alters the country’s internal dynamics and international positioning vis-à-vis its neighbors and other significant regional and global players. To handle this crisis, Ukraine must find the right method of dealing with international players, especially the Russian Federation, the European Union and the United States of America. Ukraine should take certain actions against the new super-assertive and aggressive Russia. The European Union unquestionably has provided significant aid to Ukraine during these turbulent times. However, there remains great potential for cooperation, and questions linger regarding whether the EU is prepared to foot the bill for pulling Ukraine’s economy away from the brink indefinitely. Finally, the United States should by all means continue doing its good work in bringing attention to the situation in and around Ukraine in a variety of ways, including multilateral venues, unilateral initiatives, and bilateral frameworks. The fact that Ukraine is located in Europe does not make this crisis a mere European problem but a conflict with global repercussions.
  • Topic: International Relations, International Political Economy, International Security, Geopolitics
  • Political Geography: Russia, Ukraine, European Union
  • Author: Veronika Movchan
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: This paper aims to review existing Ukrainian-Russian trade relations and explore the feasibility of Ukraine’s trade reorientation away from the Russian market, given growing trade tensions.
  • Topic: Conflict Prevention, International Political Economy, International Trade and Finance
  • Political Geography: Russia, Ukraine
  • Author: Grigoriy Shamborovskyi
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: This paper explores topics related to Ukraine’s Relations with Russia, the EU, and the US. These relationships are explored in terms of international trade, security issues and institution building. Finally, the existence of internal political and socioeconomic divisions is discussed.
  • Topic: International Political Economy, International Trade and Finance, International Security, Political and institutional effectiveness
  • Political Geography: Russia, America, Ukraine, European Union
  • Author: Yulia Tyshchenko
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: This article examines certain questions and challenges pertaining to the Russian Federation’s illegal annexation of Crimea in the domains of security and the violation of both property rights and human rights, abuses of which are systemic in the region. The issues I will discuss, pertaining to the illegal nationalization of private and state property in the annexed region of Ukraine, are problems that entangle the Russian Federation in complex land relations, which have the potential to fuel conflict. This article examines human rights violations linked with the annexation of the Crimea. Problems have arisen concerning the persecution of different ethnic and national groups—namely, Crimean Tatars and Ukrainians—by Crimean and Russian authorities. Currently, both Ukraine and the international community lack significant opportunities to influence Crimea’s politics and economy.
  • Topic: Political Violence, Human Rights, International Political Economy, International Security
  • Political Geography: Russia, Ukraine, Crimea
  • Author: Sergey Markedonov
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: On February 7, 2014, the 22nd Winter Olympic Games will open in the Russian Black Sea resort of Sochi. Because these games will be the first Olympics hosted by Russia since the dissolution of the Soviet Union, they will be more than a mere athletic competition—they possess a singular symbolic character, important to Russia and particularly to Russian president Vladimir Putin. On the eve of the 119th session of the International Olympic Committee in Guatemala on July 4, 2007, at which the decision on the host city for the 2014 games would be made, Putin was the main Russian lobbyist for the Sochi project.
  • Topic: Economics, Globalization, International Political Economy, International Trade and Finance
  • Political Geography: Russia
  • Author: Karsten Mau
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: The paper shows that the relationship between GDP per capita and levels of specialization can be predicted differently depending on whether the intensive or the extensive margin is considered. It shows that at the extensive margin countries continuously diversify their exports and that cross-sectional patterns can be captured well by a gravity equation. Prior studies documenting nonmonotone patterns with respecialization appear to have obtained their results from sample-selection bias, the omitted log-transformation of the income variable, and the neglect of control variables. Furthermore, results from dynamic panel analyses (system GMM) suggest that causality goes in both directions, with income having a contemporaneous impact on diversification, while the feedback effect of diversification on GDP per capita may be delayed. This pattern fits into theoretical rationales that view diversification as driven by technology or efficiency and where diversification generates additional revenues as it proves to be persistent.
  • Topic: Economics, International Political Economy, International Trade and Finance, Science and Technology
  • Author: Hanks Kiri
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: UN Secretary - General Ban Ki - moon invited business leaders to bring to the Climate Summit the bold actions they are undertaking to address climate change. These public – private initiatives are touted to be a key outcome of the summit – especially given that few governments will be in a position to make major new commitments. The hope is that they will inject some positive momentum into the global talks by showing that business is already ' getting on with it ' and leading the way.
  • Topic: Climate Change, International Cooperation, International Political Economy
  • Political Geography: United Nations
  • Author: Medin Hege
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This paper presents a simple new trade theory model with results that contradict those from standard model. A home market effect in domestic sales of manufactured goods is found to co-exist with a reversed home market effect in exports of manufactured goods. In consequence, for a small country the number of manufacturing firms that sell in the domestic market is lower than proportional whereas the number of exporters is higher than proportional to country size. The proportion of firms that export, decreases with relative size of the home market. Empirical support for the latter prediction is found in a cross-sectional dataset on firm level exports for 116 countries.
  • Topic: International Relations, Economics, International Political Economy, International Trade and Finance
  • Author: Ahmed Ali
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Institute for the Study of War
  • Abstract: Iraq's 2014 national elections are taking place at a difficult time. The country is at a crossroads, presented with the possibility of widely different futures. Deteriorating security conditions frame political thought in ways that harken back to Iraq's first national elections in 2005. The Iraqi state does not hold control of territory in some of Iraq's key political provinces, such as Anbar, Ninewa, and Diyala. The disenfranchisement of Iraq's Arab Sunnis; the rising threat of the Islamic State of Iraq and al-Sham (ISIS); and the activation of Ba'athist groups collectively discourage electoral participation.
  • Topic: International Relations, International Political Economy, Politics
  • Political Geography: United States, Iraq, Ninewa, Anbar, Diyala
  • Author: Alex He
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: As the largest emerging economy, China believes that the Group of Twenty (G20), instead of the Group of Eight (G8), is the ideal platform for its participation in global governance. This paper examines the reasons why China joined the G20 rather than the G8, and then focuses on a detailed review of China's participation in G20 summits since the enhanced forum began in 2008. China took a very active and cooperative attitude in dealing with the global financial crisis in 2008-2009. The paper observes that China also insisted on its own agenda for reforms to the international monetary system, through reforms to the international financial institutions that manage it — in particular, raising the number of voting shares and the representation of developing countries at the IMF and the World Bank. Based on the reviews of China's performance in the G20 summits since 2008, the paper explores China's policy making through its participation in the G20, determining that it is shaped by several major economic departments in addition to the Ministry of Foreign Affairs, and coordinated by a vice premier responsible for economic and financial affairs. The paper concludes that China has gained immensely from its participation in the G20. Most importantly, China entered the centre stage of global economic governance through the G20, which allowed the country to demonstrate that it is a responsible great power, and communicate and maintain relations with other major powers. The main challenges China has faced since joining the G20, from the perspective of some Chinese scholars, are a lack of capacity for agenda setting and shaping initiatives, as well as inadequate communication and coordination among different government departments and between the Sherpa and financial tracks of the G20.
  • Topic: Economics, International Political Economy, International Trade and Finance, International Monetary Fund, Global Recession, Financial Crisis, World Bank
  • Political Geography: China
  • Author: Clare Castillejo
  • Publication Date: 01-2013
  • Content Type: Working Paper
  • Institution: Norwegian Peacebuilding Resource Centre
  • Abstract: China is expanding its engagement across South Asia, with significant implications for the region's most fragile states. Western donors and peacebuilding actors are aware of this changing context and concerned about their resulting loss of influence. Yet they have so far failed to develop a coordinated response or to engage effectively with China regarding its impact on fragility within the region.
  • Topic: Arms Control and Proliferation, Emerging Markets, International Political Economy, International Trade and Finance, Regional Cooperation
  • Political Geography: China, South Asia, Israel, Asia
  • Author: Rebecca Winthrop, Elena Matsui
  • Publication Date: 08-2013
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: In the 13 years since the dawn of the new millennium, significant progress has been made in addressing some of the world's most important problems. One billion fewer people live in extreme poverty, 3 million children's lives are saved annually and 610 million children in developing countries are enrolled in primary school, more than ever before. However, this progress has not been shared evenly around the globe. Populations affected by weak systems of governance and that suffer violence and disasters have systematically been left behind. They are much less likely to enjoy progress vis-à-vis any of the United Nations' Millennium Development Goals (MDGs), which include eradicating extreme poverty and hunger, improving children and women's health, and enrolling children in school. No country classified as a “fragile state,” for example, has met all eight of the MDGs. Children born in low-income, conflict-affected countries are twice as likely to die before the age of five years, twice as likely to lack access to clean water and more than three times as likely to not attend school than children living in peaceful, low-income countries. People living in poverty, many of whom are affected by conflict, are more vulnerable to the effects of climate change and disasters. Children are especially affected, and those from the poorest families are up to 10 times more likely to bear the brunt of environmental disasters linked to climate change.
  • Topic: Conflict Resolution, Development, International Political Economy, Peace Studies, Foreign Aid, Peacekeeping
  • Political Geography: United Nations
  • Author: Greg Distelhorst, Jens Hainmueller, Richard M. Locke
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: Watson Institute for International Studies, Brown University
  • Abstract: This paper offers the first empirical analysis of the introduction of lean manufacturing as a "capability building" strategy for improving labor standards in global supply chains. Buyer interventions to improve supplier management systems have been proposed to augment existing, and widely deemed insufficient, private regulation of labor standards, but these claims have yet to be systematically investigated. We examine Nike Inc.'s multiyear effort to promote lean manufacturing and its associated high-performance work systems in its apparel supply base across eleven developing countries. Adoption of lean manufacturing techniques produces a 15 percentage point reduction in serious labor violations, an effect that is robust to alternative specifications and an examination of pre-trends in the treatment group. Our finding contradicts previous suggestions that pressing suppliers to adopt process improvements has deleterious effects on labor conditions and highlights the importance of relational contracting and commitment-oriented approaches to improving labor standards in the developing world.
  • Topic: Development, Economics, International Political Economy, International Trade and Finance, Labor Issues
  • Political Geography: India
  • 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, Territorial Disputes
  • Political Geography: Europe, Turkey
  • 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, International Affairs
  • Political Geography: Europe, Asia, Western Europe
  • Author: Daniel W. Drezner
  • Publication Date: 10-2012
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: The 2008 financial crisis posed the biggest challenge to the global economy since the Great Depression and provided a severe “stress test” for global economic governance. A review of economic outcomes, policy outputs, and institutional resilience reveals that these regimes performed well during the acute phase of the crisis, ensuring the continuation of an open global economy. Even though some policy outcomes have been less than optimal, international institutions and frameworks performed contrary to expectations. Simply put, the system worked.
  • Topic: Economics, Globalization, International Political Economy, Markets, Global Recession, Monetary Policy, Financial Crisis
  • Author: David J. Berteau, Guy Ben-Ari, Joachim Hofbauer, Priscilla Hermann, Sneha Raghavan
  • Publication Date: 10-2012
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Asia is growing in geostrategic importance. Despite the financial crisis that began in 2008, many Asian countries experienced relatively less fiscal distress and increased their level of involvement in global affairs. Indicative of the region's elevated global role is the United States' pivot toward the Asia-Pacific region as outlined in the Strategic Guidance recently released by the Department of Defense. With Asian defense spending projected to overtake that of Europe by the end of 2012, the United States' posture rebalancing toward the Asia-Pacific region is likely to continue.
  • Topic: Foreign Policy, Defense Policy, Arms Control and Proliferation, International Political Economy
  • Political Geography: Israel, Asia
  • Author: William Savedoff
  • Publication Date: 08-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: A new wave of development programs that explicitly use incentives to achieve their aims is under way. They are part of a trend, accelerating in recent years, to disburse development assistance against specific and measurable outputs or outcomes. With a proliferation of new ideas under names such as “payments for performance,” “output-based aid,” and “results based financing,” it is easy to lose sight of basic underlying similarities in these approaches and to miss some significant differences. This paper proposes a way of classifying and distinguishing the range of incentive programs being debated today, emphasizing two particular dimensions: the agent whose behavior the incentive seeks to change and the specificity of the output or outcome measure. It begins by characterizing a basic incentive arrangement, discussing the range of available contracts and how they appear in development programs, presents a classification of existing incentive programs and illustrates the scheme with examples. The paper concludes by identifying four broad categories that address different problems and offers some cautionary notes.
  • Topic: Development, International Political Economy, Poverty, Foreign Aid
  • Author: Caroline Bain
  • Publication Date: 09-2011
  • Content Type: Working Paper
  • Institution: Economist Intelligence Unit
  • Abstract: Global oil consumption grew by 3.4% in 2010, rebounding from a contraction of 1% in 2009. Consumption growth will slow in 2011-14 but remain relatively strong.
  • Topic: Energy Policy, International Political Economy, International Trade and Finance, Markets, Oil
  • Author: Paul Masson, Mansoor Dailami
  • Publication Date: 12-2011
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: As the second decade of the 21st century unfolds, the growing clout of emerging markets is paving the way for a world economy with an increasingly multipolar character. The distribution of global growth will become more diffuse, with no single country dominating the global economic scene or even the global security agenda.
  • Topic: Economics, Globalization, International Political Economy, Monetary Policy, Financial Crisis
  • Publication Date: 02-2010
  • Content Type: Working Paper
  • Institution: Economist Intelligence Unit
  • Abstract: The results of the Economist Intelligence Unit's Democracy Index 2008 confirm that, following a decades-long global trend in democratisation, the spread of democracy has come to a halt. Comparing the results for 2008 with those from the first edition of the index, which covered 2006, shows that the dominant pattern in the past two years has been stagnation. Although there is no recent trend of outright regression, there are few instances of significant improvement. However, the global financial crisis, resulting in a sharp and possibly protracted recession, could threaten democracy in some parts of the world.
  • Topic: Civil Society, Democratization, International Political Economy, Financial Crisis
  • Author: Kimberly Elliott, Antoine Bouët, David Laborde Debucquet, Elisa Dienesch
  • Publication Date: 03-2010
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper examines the potential benefits and costs of providing duty-free, quota-free market access to the least developed countries (LDCs), and the effects of extending eligibility to other small and poor countries. Using the MIRAGE computable general equilibrium model, it assesses the impact of scenarios involving different levels of coverage for products, recipient countries, and preference-giving countries on participating countries, as well as competing developing countries that are excluded. The main goal of this paper is to highlight the role that rich and emerging countries could play in helping poor countries to improve their trade performance and to assess the distribution of costs and benefits for developing countries and whether the potential costs for domestic producers are in line with political feasibility in preference-giving countries.
  • Topic: Economics, International Political Economy, International Trade and Finance, Markets, Third World
  • Author: Nancy Birdsall
  • Publication Date: 03-2010
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Inclusive growth is widely embraced as the central economic goal for developing countries, but the concept is not well defined in the development economics literature. Since the early 1990s, the focus has been primarily on pro-poor growth, with the "poor" being people living on less than $1 day, or in some regions $2 day. The idea of pro-poor growth emerged in the early 1990s as a counterpoint to a concern with growth alone (measured in per-capita income) and is generally defined as growth which benefits the poor as much or more than the rest of the population. Examples include conditional cash transfers, which target the poor while minimizing the fiscal burden on the public sector, and donors' emphasizing primary over higher education as an assured way to benefit the poor while investing in long-term growth through increases in human capital. Yet these pro-poor, inclusive policies are not necessarily without tradeoffs in fostering long-run growth. In this paper I argue that the concept of inclusive growth should go beyond the traditional emphasis on the poor (and the rest) and take into account changes in the size and economic command of the group conventionally defined as neither poor nor rich, i.e., the middle class.
  • Topic: Economics, International Political Economy, Poverty, Foreign Aid
  • Author: Kimberly Ann Elliott
  • Publication Date: 04-2010
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Trade preference programs are an important and underused tool for stimulating exports, creating jobs, reducing poverty, and promoting prosperity and stability in poor countries. While many rich countries provide special access for exports from the least developed countries (LDCs) to promote these benefits, the trade preferences often do not extend to the products that matter most to LDCs, such as agriculture and clothing. Improving these programs could make a major difference in the lives of the poor, while having minimal effects on production or exports in preference-giving countries because the affected trade is so small: less than 1 percent of global exports are from LDCs. And, in the longer term, improved trade preferences for LDCs will promote shared prosperity and stability in rich and poor countries alike. Recognizing the role of trade in poverty reduction, the UN's Millennium Development Goals (MDGs) for poor countries call on high-income countries to provide duty-free, quota-free market access for the LDCs.
  • Topic: Development, Economics, International Political Economy, International Trade and Finance, Poverty, Third World
  • Publication Date: 05-2010
  • Content Type: Working Paper
  • Institution: Oxford Economics
  • Abstract: Over the weekend the EU put together a large-scale package worth up to €720 billion aimed at stabilising all the 'peripheral' Eurozone countries, in the face of mounting contagion risks. This came on top of an earlier financial support package for Greece worth €110 billion. The latest move has brought some relief to bond markets, but major challenges remain. Investors remain concerned about the capacity of Greece to stick to the immense fiscal adjustment needed in the face of a very deep recess ion and mounting social unrest. With the debt/GDP ratio set to keep rising to almost 150% in the next few years, concerns remain that some kind of debt restructuring or default cannot be avoided. For the other peripherals, too, the outlook remains bleak – while the immediate threat of a collapse in their debt markets has been averted, years of fiscal austerity and slow growth remain ahead.
  • Topic: Debt, International Political Economy, Global Recession, Monetary Policy, Financial Crisis
  • Political Geography: Greece
  • Author: Paul Wilson
  • Publication Date: 04-2010
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: Vaccines have made possible some of the greatest public health successes of the past century. Immunisation helps avert an estimated 2.5 million child deaths each year, as well as millions more bouts of illness and disability. Poor countries as well as rich have benefited, although developing countries almost always benefit only after long delays. Basic childhood immunisation is one of the few health interventions to which most of the world's poor have access, free of charge and through the public sector. In fact, immunisation is one of the most equitable health interventions, protecting girls and boys alike, and reaching the poor within countries at higher rates relative to the wealthy than other services.
  • Topic: Emerging Markets, Health, International Political Economy, Third World, Health Care Policy
  • Author: Jean-Michel Severino, Olivier Ray
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The development business has become much more complex in the past decade, with actors proliferating and collaboration fragmenting. This trend is characteristic of the change from collective action to what the authors term hypercollective action. Such a shift brings new energy and resources to international development, but also more difficulty managing global public policy. Severino and Ray use the lessons of the Paris Declaration—the first large-scale effort to coordinate hypercollective action—as a starting point for envisioning a new conceptual framework to manage the complexity of current international collaboration. They offer concrete suggestions to improve the management of global policies, including new ways to share information, align the goals of disparate actors, and create more capable bodies for international collaboration.
  • Topic: International Relations, Development, Globalization, International Cooperation, International Political Economy
  • Author: James Cotton
  • Publication Date: 08-2010
  • Content Type: Working Paper
  • Institution: Australian National University Department of International Relations
  • Abstract: Although he was an original member from 1951 of the Department of International Relations at the Australian National University (ANU), Michael Lindsay's contribution to the discipline and to the ANU is rarely acknowledged. He is probably best known from the brief account given in the official ANU history of the second appointment to the chair. The candidate in question was Martin Wight, then reader at the London School of Economics. Having accepted the position, Wight later withdrew in controversial circumstances. In the official history it is claimed that Lindsay 'wrote to him in terms that scared him away'. In the contemporary international relations discipline, Wight, by contrast, is regarded as one of the most influential figures of his generation. For those with any awareness of this episode, Lindsay's role as, apparently, the person responsible for this path not taken is generally regarded as negative. The account offered in the official history has obscured two important points. First, setting aside issues of personality, it can be shown that Lindsay's correspondence with Wight and any differences they might have had were based upon a coherent view on Lindsay's part of the discipline and also of the work that was most appropriate to the new institution. Second, the record shows that, as he was the acting head of the Department for much of the 1950s, Lindsay played a large role in establishing its character, and was indeed immensely active, despite his junior status, in fostering interest in the discipline in the ANU and the wider community. This paper shows Lindsay to have played a strong and creative role in the discipline, one which should be more remembered and celebrated today.
  • Topic: International Relations, Economics, International Political Economy, Politics, Political Theory
  • Political Geography: Australia
  • Author: Robert Kappel
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: A number of regional powers are becoming important international actors and are changing the coordinates of world politics and the global economy. The political and economicshift in favor of these regional powers has been accompanied by the relative loss of importance of the US, Japan, and the EU. The latter countries are increasingly challenged by the economic growth and the geostrategical actions of the regional powers. As the conception of and debates on regional powers have been led by political science, this paper aims to contribute to the discussion from an economics perspective. Based on the discussion of different concepts of economic power–such as those of Schumpeter, Perroux, Predöhl, or Kindleberger–concepts of technological leadership, and the global value chain approaches, the paper develops a research framework for the economics of regional powers. This framework is then tested using descriptive statistics as well as regressions analysis, with a focus on the four regional powers Brazil, China, India, and South Africa. As economic power is relational, the relationship of regional powers to other nations in the region is analyzed. According to the findings, only limited conclusions on the economics of regional powers are possible: a regional power can be described as an economy with a relatively large population and land area which plays a dominant role in trade within the region and in the regional governance. The regional power develops its technological capacities, and its businesses act regionally and globally with increasing strength.
  • Topic: International Relations, Economics, Globalization, International Political Economy, Power Politics
  • Political Geography: China, India, Brazil
  • Author: Edwin M. Truman, Garry J. Schinasi
  • Publication Date: 10-2010
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper examines the implications of the global financial crisis of 2007–10 for reform of the global financial architecture, in particular the International Monetary Fund and the Financial Stability Board and their interaction. These two institutions are not fully comparable, but they must work more closely in the future to help prevent global financial crises. To this end, the paper identifies institutional and substantive reforms separately and in their joint work that would be desirable and appropriate.
  • Topic: Economics, International Cooperation, International Political Economy, Global Recession, Monetary Policy, Financial Crisis
  • Publication Date: 04-2010
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: In the late 1940s, a visionary generation of transatlantic leaders – shaped by the experience of the most devastating war in human history – decided to build a new world based on respect for universal human values and cooperation among nations. Thus was born the United Nations, the Universal Declaration on Human Rights, the International Court of Justice, the Bretton Woods Institutions of the World Bank and International Monetary Fund, the European Coal and Steel Community and, of course, NATO.
  • Topic: International Relations, NATO, International Political Economy, International Security, Reform
  • Author: Richard Manning
  • Publication Date: 01-2009
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The Millennium Declaration included a highly significant innovation – universal, support by the world's governments for a short list of development results to be, achieved by a set date. As the target year of 2015 approaches, the paper compares the, MDG framework that emerged from the Declaration with other ways of measuring, and incentivising progress, sets out some initial hypotheses about its impact and addresses issues about its structure and coverage. This leads to proposals about how to, get the best value from the MDGs over the years to 2015 and five hypotheses about, how the world might approach the issue of what framework, if any, to put in place, to measure and incentivise development progress after 2015.
  • Topic: Development, Health, Human Welfare, Humanitarian Aid, International Cooperation, International Political Economy, Third World, United Nations
  • Author: Donald K. Emmerson
  • Publication Date: 02-2009
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: No crisis is uniformly global. The suffering and the opportunity that a “global” crisis entails are always unevenly distributed across countries, and unevenly across the population inside any one country. That said, one can nevertheless argue that we—not the old royal “we” but, more presumptuously, the new global “we”—are in January 2009 experiencing the latest of four dramatic changes that major parts of the world have undergone over the last twenty years. In 1989, of course, the Berlin Wall was breached, ending the Cold War, followed by the implosion of Lenin's Soviet dystopia two years later. Nor did the 1989 massacre of proreform demonstrators in Tiananmen Square revive a command economy in China. Instead it kept the polity shut so that Deng's economy could continue to open.
  • Topic: International Relations, Globalization, International Political Economy
  • Political Geography: United States, China, America, Israel, Asia, Berlin
  • Author: Vijaya Ramachandran, Enrique Rueda-Sabater, Robin Kraft
  • Publication Date: 02-2009
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The geopolitical world of the 21st century is very different than that of the post–World War II era. In this new world order, what constitutes a system of global governance? We argue that it has to balance representation, which is made credible by the inclusion of key parts of the global community, and effectiveness, which means involving as small a number of actors as possible while having access to the resources—and clout—to turn decisions/intentions into action/results. In this paper, we propose simple, fundamental criteria—based on global shares of GDP and population—around which global governance might be organized. We analyze the role that these criteria would assign to different countries and compare them with some of the key components of the system of governance currently in place—the Bretton Woods institutions and the United Nations. We also examine the implications of our analysis for membership in the G-20 and the OECD. We find major disparities, which suggest the need for fundamental changes in sharp contrast to the incremental changes that are currently being considered. Overall, our analysis points to the need for a more comprehensive approach, and for much more than incremental solutions.
  • Topic: Globalization, Government, International Organization, International Political Economy, Political Theory
  • Political Geography: United Nations
  • Author: Robin Niblett
  • Publication Date: 02-2009
  • Content Type: Working Paper
  • Institution: Chatham House
  • Abstract: During his inaugural address on 20 January 2009, Barack Obama declared to 'all other peoples and governments, who are watching today, know that we are ready to lead once more'. In the following four weeks to the publication of this report, President Obama has set the United States on a course that is meeting widespread approval around the world. He has ordered the closure as soon as possible of the Guantánamo Bay detention facilities and of other secret facilities outside the United States that had so undermined America's international credibility with its allies and confirmed the anti-US narrative of its opponents. He has appointed special envoys for Middle East Peace and to implement an integrated strategy for both Afghanistan and Pakistan. He has offered to 'seek a new way forward' with the Muslim world as well as to 'extend a hand' to authoritarian governments if they are willing 'to unclench [their] fist'. His Secretary of State, Hillary Clinton, has said that America will be more effective if it can 'build a world with more partners and fewer adversaries'. Both have recognized the virtues of pragmatism over ideology and the reality of interdependence.
  • Topic: Foreign Policy, International Political Economy, International Affairs
  • Political Geography: United States, America, Middle East, Asia, Latin America
  • Author: Steven Dunaway
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: The current economic and financial crisis has brought about a significant change in global economic governance as the international forum for discussions on the crisis has shifted from the small group of advanced countries in the Group of Seven (G7) to the Group of Twenty (G20), a broader group including important emerging market countries. The G20 summit held in Washington, DC, on November 15, 2008, dealt with the immediate concerns fostered by the crisis and focused on both macroeconomic policy actions needed to support global growth and ideas for implementing financial market reforms. Follow-up G20 summits are expected, starting with a gathering in the United Kingdom in April 2009. However, for these discussions to have a substantial impact, the agenda will have to be broadened beyond economic stimulus and financial market regulation. If not, global policymakers will miss a critical chance to make the world economy and financial markets more stable, as then U.S. treasury secretary Henry M. Paulson Jr. pointed out: If we only address particular regulatory issues—as critical as they are—without addressing the global imbalances that fueled recent excesses, we will have missed an opportunity to dramatically improve the foundation for global markets and economic vitality going forward. The pressure from global imbalances will simply build up again until it finds another outlet.
  • Topic: International Relations, Economics, International Political Economy, International Trade and Finance
  • Political Geography: United States, China
  • Author: Sam Jones
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: Careful consideration of the appropriate level and composition of aggregate public spending is vital in low income countries, especially in the presence of large volumes of foreign aid. Not only can expansion of the public sector weaken economic growth, but also provision of public services may be difficult to re­trench. These issues are relevant to Mozambique as the share of government in GDP already is comparatively high and strategic management of aggregate public spending historically has been weak. A new long-term macroeconomic model quantifies the implications of alternative aggregate spending profiles. It shows that small increases in minimum levels of government spending correspond to large increases in the duration to aid independence. Sharp reductions in aid availability would necessitate significant fiscal and economic adjustments, including cuts in real public spending per capita. For this reason, there is no room for complacency as regards the future of development finance to Mozambique.
  • Topic: Development, Economics, Humanitarian Aid, International Political Economy, Poverty, Third World
  • Political Geography: Africa
  • Author: Simon Bolwig, Signe Marie Cold-Ravnkilde, Kjeld Rasmussen, Tine Breinholt, Michael Mortimore
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: This paper provides a review of the experience gained through Danish and inter-national research and development projects within the field of sustainable natural-resource management (NRM) over the last ten years in the Sahel. It is based on a larger background study edited by Bolwig, Rasmussen and Hansen (Bolwig et al. 2008b), supplemented with new material, including a questionnaire survey targeted at experienced Danish researchers and development professionals. It addresses eco-nomic, institutional, governance, gender and environmental aspects of sustainable NRM. The main themes emerging from the review concern: 1) the functioning of the agricultural market, the significance of market failures and the regulation of markets to mitigate adverse social and environmental impacts; 2) the relationship between NRM, land tenure security and property right regimes; 3) the complexities of modern – central and decentralised – and customary institutions involved in the NRM domain; and 4) the environmental and climate change trends observed in the past and foreseen for the future. For each theme, we review recent findings and discuss how these may (or should) affect policies of relevance to NRM. Relative to past policies and practices, these findings do suggest revisions. First, the need for a strengthened focus on market functioning and on increasing the economic and social benefits to the rural poor from participation in NRM-based value chains. Second, the need to adjust policies on land tenure (including land-titling ), decentralization and NRM institution-building. Finally, national strategies and action plans for combating desertification and adapting to climate change should take account of the fact that the Sahel has generally been 'greening' over the last 25 years, and that the climate change outlook may not be as bleak as often presumed.
  • Topic: Agriculture, Climate Change, Energy Policy, Environment, International Political Economy
  • Author: Warwick McKibbin, Peter J. Wilcoxen
  • Publication Date: 02-2009
  • Content Type: Working Paper
  • Institution: Lowy Institute for International Policy
  • Abstract: For the foreseeable future, climate change policy will be considerably more stringent in some countries than in others. Indeed, the United Nations Framework Convention on Climate Change explicitly states that developed countries must take meaningful action before any obligations are to be placed on developing countries. However, differences in climate policy will lead to differences in energy costs, and to concerns about competitive advantage. In high-cost countries, there will be political pressure to impose border adjustments, or “green tariffs”, on imports from countries with little or no climate policy and low energy costs. The adjustments would be based on the carbon emissions associated with production of each imported product, and would be intended to match the cost increase that would have occurred had the exporting country adopted a climate policy similar to that of the importing country. In this paper, we estimate how large such tariffs would be in practice, and then examine their economic and environmental effects using G-Cubed, a detailed multi-sector, multi-country model of the world economy. We find that the tariffs would be small on most traded goods, would reduce leakage of emissions reduction very modestly, and would do little to protect import-competing industries. We conclude that the benefits produced by border adjustments would be too small to justify their administrative complexity or their deleterious effects on international trade.
  • Topic: Climate Change, Economics, Environment, International Cooperation, International Political Economy, International Trade and Finance, United Nations
  • Author: Benn Steil
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: The story of the financial crisis will be retold endlessly as one of widespread greed, corruption, and incompetence, enabled by a policy agenda dominated by an ideology of deregulation. Yet even if the marketplace had been populated by more ethical and intelligent individuals, and even if their activities had been more carefully scrutinized by more diligent regulators, there would almost surely still have been a major financial boom and bust—such is the power, as history attests, of cheap money.
  • Topic: Economics, International Political Economy, International Trade and Finance, Markets, Political Economy
  • Author: Daniel S. Hamilton, 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, International Trade and Finance
  • Political Geography: United States, Europe
  • Author: Kenneth C. Shadlen
  • Publication Date: 01-2009
  • Content Type: Working Paper
  • Institution: Global Development and Environment Institute at Tufts University
  • Abstract: This paper examines the contemporary politics of intellectual property (IP) and investment in the World Trade Organization (WTO). I examine the underlying and perennial conflicts that pit developing and developed countries against each other in these two areas and the nature of the two agreements reached during the Uruguay Round, the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the Agreement on Trade-Related Investment Measures (TRIMS). I then analyze developed countries' efforts to push beyond the TRIPS and TRIMS agreements, and, critically, developing countries' success in forestalling these efforts. Developing countries have “prevailed” in the current international conflicts over IP and investment not by securing rules that they desire, but rather by preventing the imposition of arrangements that they regard as worse than the WTO status quo.
  • Topic: Development, Economics, Globalization, International Political Economy, International Trade and Finance
  • Author: Matthew Adler, Gary Clyde Hufbauer
  • Publication Date: 05-2009
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This working paper draws on historical and contemporary data on tariffs, nontariff barriers, and transportation costs (for the United States and its major trading partners) to estimate the role of policy liberalization in US merchandise trade growth over the period 1980 to 2006. Both partial equilibrium analysis and computable general equilibrium analysis are used to make the estimates. Both methods indicate that roughly 25 percent of US trade growth since 1980 can be attributed to policy liberalization. Policy liberalization plays a larger role in US export growth (35 to 40 percent) than US import growth (25 percent). According to these estimates, policy liberalization accounts for almost all US merchandise growth in excess of growth that can be explained by expanding GDP in the United States and abroad.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: United States
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: An overview of the region up to 30 January 2009 by the UN Economic Commission for Latin America and the Caribbean (cepal) argues that the larger economies have been more directly affected by the global economic crisis (because in general they are more integrated with the global markets, especially finance), but are also better equipped to respond to it. In particular, Cepal sees South America as diverging from Central America and the Caribbean, which seem to be both less resilient in terms of their economies, and more exposed to the slump in the USA. They are being driven back to aid as the last/only resort. Mexico is in a category of its own, the most exposed to the US downturn, but as a large economy and an oil exporter, better placed to withstand the downturn than its Caribbean basin neighbours.
  • Topic: Economics, Globalization, International Political Economy
  • Political Geography: South America, Latin America, Caribbean
  • Author: Eswar Prasad, M. Ayhan Kose, Ashley D. Taylor
  • Publication Date: 05-2009
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: The financial crisis has re-ignited the fierce debate about the merits of financial globalization and its implications for growth, especially for developing countries. The empirical literature has not been able to conclusively establish the presumed growth benefits of financial integration. Indeed, a new literature proposes that the indirect benefits of financial integration may be more important than the traditional financing channel emphasized in previous analyses. A major complication, however, is that there seem to be certain “threshold” levels of financial and institutional development that an economy needs to attain before it can derive the indirect benefits and reduce the risks of financial openness. In this paper, we develop a unified empirical framework for characterizing such threshold conditions. We find that there are clearly identifiable thresholds in variables such as financial depth and institutional quality—the cost-benefit trade- off from financial openness improves significantly once these threshold conditions are satisfied. We also find that the thresholds are lower for foreign direct investment and portfolio equity liabilities compared to those for debt liabilities.
  • Topic: Development, Economics, Globalization, International Political Economy, International Trade and Finance
  • Author: Pertti Joenniemi
  • Publication Date: 06-2009
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • 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, Bilateral Relations
  • Political Geography: United States, America, Europe
  • Author: Brad W. Setser, Arpana Pandey
  • Publication Date: 05-2009
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: This paper was originally published in January 2009. The May update incorporates quarter one 2009 data on China's foreign reserves, the Treasury International Capital (TIC) capital flows data for December, January, and February, and the results of the June 2008 survey of foreign portfolio investment in the United States. The June 2008 survey indicated that China bought fewer Treasury bonds and more equities than the authors estimated in the January paper.
  • Topic: Economics, International Political Economy, International Trade and Finance
  • Political Geography: United States, China
  • Author: Jaya Prakash Pradhan
  • Publication Date: 08-2009
  • Content Type: Working Paper
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
  • Topic: Economics, International Political Economy, International Trade and Finance, Markets, Foreign Direct Investment, Financial Crisis
  • Political Geography: Russia, China, South Asia, Malaysia, Korea
  • Author: Luís Afonso Lima, Octavio de Barros
  • Publication Date: 08-2009
  • Content Type: Working Paper
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: The internationalization of Brazilian companies is a relatively recent phenomenon. From 2000 to 2003, outward foreign direct investment (OFDI) averaged USD 0.7 billion a year. Over the four-year period 2004−2008, this average jumped to nearly USD 14 billion. In 2008, when global FDI inflows were estimated to have fallen by 15%, OFDI from Brazil almost tripled, increasing from just over USD 7 billion in 2007 to nearly USD 21 billion in 2008 (annex figure 1 below). Central Bank data put the current stock of Brazilian OFDI at USD 104 billion, an increase of 89% over 2003. Caution is in order about these figures, however, as in Brazilian outflows it is difficult to separate authentic FDI from purely financial investment under the guise of FDI. According to the most recent data, 887 Brazilian companies have invested abroad
  • Topic: Development, Economics, International Political Economy, International Trade and Finance, Markets, Foreign Direct Investment
  • Political Geography: Brazil, Latin America
  • 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, Financial Crisis
  • Political Geography: United States, Europe, Brazil, Latin America
  • Author: Theodore H. Moran
  • Publication Date: 07-2009
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The 2008 election rekindled debate about whether US multinationals shift technology across borders and relocate production in ways that might harm workers and communities at home. President Obama now pledges to end tax breaks for corporations that ship jobs overseas. The preoccupation about the behavior of American multinationals takes three forms: (1) that US-based multinational corporations may follow a strategy that leads them to abandon the home economy, leaving the workers and communities to cope on their own with few appealing alternatives after the multinationals have left; (2) worse, that US-based multinational corporations may not just abandon home sites but drain off capital, substitute production abroad for exports, and “hollow out” the domestic economy in a zero-sum process that damages those left behind; and (3) worst, that US-based multinational corporations may deploy a rent-gathering apparatus that switches from sharing supranormal profits and externalities with US workers and communities to extracting rents from the United States. Each of these concerns contains a hypothetical outcome that can be compared with contemporary evidence from the United States and other home countries.
  • Topic: Economics, International Political Economy, International Trade and Finance, Markets, Financial Crisis
  • Political Geography: United States, America