1 - 26 of 26
Number of results to display per page
Search Results
2. No, China Does Not Make Everything!
- Author:
- David Henig and Anna Guildea
- Publication Date:
- 03-2021
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- China is now the world’s leading manufacturer, with goods exports rising from $63 billion in 1990 to $2.5 trillion in 2018. The popular assumption is that everything is now made in China, and that falling manufacturing employment in the EU and US is due to this. The assumption is wrong. China is the world’s largest goods exporter, but other countries have also experienced increases. One reason is that China is also the world’s second largest importer of goods, at $2.1 trillion in 2018.
- Topic:
- International Political Economy, Exports, Manufacturing, and Trade
- Political Geography:
- China
3. THE BRICS COUNTRIES’ MONETARY AND FINANCIAL POWER: WHAT HAS CHANGED SINCE THE 2008 GLOBAL FINANCIAL CRISIS AND WHY IT MATTERS
- Author:
- Luiza Peruffo
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Conjuntura Austral: Journal of the Global South
- Institution:
- Conjuntura Austral: Journal of the Global South
- Abstract:
- The grouping of the BRICS countries is controversial in several ways. First, because its origins do not have a political foundation: Brazil, Russia, India and China were first put together as an acronym created in the financial market (O’NEILL, 2001) and this was eventually transposed onto the political world. The group’s advocates have argued that the geopolitical initiative that followed made sense because it brought together countries of continental proportions, large economies, with huge domestic markets –an argument that falls apart with the inclusion of South Africa in 2010. In addition, there is the issue of the disproportionate economic power between China and the other members of the bloc. Moreover, many argue that there are few common interests between the economies, which have such diverse productive structures, and therefore it would be unlikely that they could form a cohesive group (see STUENKEL, 2013, pp. 620-621 for a review of criticisms of the group).
- Topic:
- Economics, International Political Economy, Global Financial Crisis, and Economic Cooperation
- Political Geography:
- Russia, China, India, South Africa, and Brazil
4. A COMPARATIVE ANALYSIS OF THE BRICS COUNTRIES IN THE INTERNATIONAL DEVELOPMENT COOPERATION FIELD
- Author:
- Augusto Leal Rinaldi and Laerte Apolinário Júnior
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Conjuntura Austral: Journal of the Global South
- Institution:
- Conjuntura Austral: Journal of the Global South
- Abstract:
- The first decade of the 21st century gave way to a series of international political-economic dynamics with the potential to reorganize global power (IKENBERRY, 2018; KITCHEN; COX, 2019; MAHBUBANI, 2009; MEARSHEIMER, 2018, 2019). Among the changes, one common reference is the rise of the BRICS –Brazil, Russia, India, China, and South Africa –and, consequently, their performance for demanding reforms of the global governance system (COOPER, 2016; HURRELL, 2018; ROBERTS; ARMIJO; KATADA, 2018; STUENKEL, 2017). The emerging economies have invested in consolidating their new status by acting in different branches of global governance, demanding changes and policies to see a reasonable parity between their economic weight and ability to participate as real decision-makers. In this context, international regimes are a crucial dimension to consider.
- Topic:
- Development, International Cooperation, International Political Economy, Geopolitics, International Development, Economic Development, and Economic Cooperation
- Political Geography:
- Russia, China, India, South Africa, and Brazil
5. ECONOMIC REBALANCING AND GEOECONOMIC CHALLENGES FOR CHINA: THE CASE OF INTRA-BRICS TRADE AND FOREIGN DIRECT INVESTMENTS
- Author:
- Marcelo Milan and Leandro Teixeira Santos
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Conjuntura Austral: Journal of the Global South
- Institution:
- Conjuntura Austral: Journal of the Global South
- Abstract:
- This article examines the geoeconomic challenges brought to China by the effects of trade and foreign direct investment (FDI) flows, and consequently by the nature and composition of international economic alliances, mainlycooperation among underdeveloped nations(Glosny, 2010), of rebalancing3of its drivers of growth4. It evaluates likely impacts on other BRICS countries, given the economic linkages developed during the past couple of decades, as an example of what may happen to broader geoeconomic arrangements as the process of rebalancing deepens
- Topic:
- International Political Economy, Foreign Direct Investment, Geopolitics, and Economic Cooperation
- Political Geography:
- Russia, China, India, South Africa, and Brazil
6. GEOGRAPHY, INTERNATIONAL TRADE AND INSTITUTIONS: AN ECONOMETRIC ANALYSIS OF THE BRICS
- Author:
- Marcelo Corrêa, Luiz Michelo, and Carlos Schonerwald
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Conjuntura Austral: Journal of the Global South
- Institution:
- Conjuntura Austral: Journal of the Global South
- Abstract:
- After two decades of intense debate about the determinants of economic development, with authors examining the variables that characterize geography, institutions and international trade, BRICS countries were left behind. Thus, in order to fill this gap, this paper uses econometrics of panel data to analyze the economic performance of these developing nations. Mainstream economists have run into serious problems to deal with these particular determinants within the traditional endogenous growth model, and they have not come up with an agreement, so they keep trying to figure out who is the “winner of this competition”. Empirical evidence shows that there is not a unique explanatorydeterminant, and recognizing which of them can provide the best understandingdepends on the particularities of each case (ROS, 2013).Examining BRICS as a group of countries demonstrates that these specific developing nations share some remarkable features. They are rapidly-growing nations with a vast amount of land and growing participation in international trade. So, empirical tests are feasible and desirable in order to understand their recent development. However, they are also different in many aspects, mostly in terms of institutional characteristics. Thus, our goal is to find out if the econometrics of panel data can shed some light on this ongoing debate.
- Topic:
- International Political Economy, International Trade and Finance, Trade, Trade Policy, Economic Cooperation, and Geography
- Political Geography:
- Russia, China, India, South Africa, and Brazil
7. BRICS STUDENTS EDUCATION IN CHINA FROM 2010 TO 2018: DEVELOPMENT, PROBLEMS AND RECOMMENDATIONS
- Author:
- Cheng Jing
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Conjuntura Austral: Journal of the Global South
- Institution:
- Conjuntura Austral: Journal of the Global South
- Abstract:
- Attracting international students is an important way to promote the internationalization of one country’s higher education, and to enhance youth and education exchanges between countries. As the biggest developing country in world, China has attachedimportance to the international students education in China since 2010 so as to improve the quality of China’s higher education and promote its internationalization. What’s striking is that in September of 2010, for the first time, the Ministry of Education of the People’s Republic of Chinafrom the perspective of national strategymapped out a plan targeting the international students educationin China, and releasedStudy in China Program, which was designed to “promote the communication and cooperation between China and other countries in education, promptthe sustainable and healthy development of the international students education in China and improve the internationalization of Chineseeducation”. This program highlightedthat China would“accelerate the quota of scholarship step by step in accordance with the need of national strategy and development”, with the targets of attracting 500,000 international students by 2020 and “making China the top destination country in Asia for international students”（China’s Ministry of Education, 2010:647).
- Topic:
- Education, International Political Economy, and Geopolitics
- Political Geography:
- Russia, China, India, South Africa, and Brazil
8. Work for Others, not Yourself: Globalization, Protectionism and Europe’s Quest for Strategic Autonomy
- Author:
- Fredrik Erixon
- Publication Date:
- 10-2020
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- Protectionism and mercantilism are yet again at the centre of global economic policy. “America First” is the guiding ethos in a good part of US international economic policy. Beijing is taking a larger stake in China’s economy and hand out privileges to domestic firms. Europe is increasingly occupied by achieving “strategic autonomy” and to create European champions at the expense of competition. Old and disreputed economic doctrines are getting a new lease on life. Behind this new orientation in international economic policy stands the old idea that a strong economy is an economy not dependent on others. Human prosperity – our story of rags to riches – tells a very different story. Prosperity is generated when people collaborate and improve our collective intelligence. Open economies are much better at creating wealth because they operate by the principle that people should work for others, not themselves. They specialize – and in the process, they get far more dependent on others. Dependency is a factor of success; economic sovereignty is a sure way of depriving people of opportunity and prosperity.
- Topic:
- International Political Economy, International Trade and Finance, Global Markets, and Strategic Competition
- Political Geography:
- United States, China, and Europe
9. The Tragedy of International Organizations in a World Order in Turmoil
- Author:
- Jean-Jacques Hallaert
- Publication Date:
- 07-2020
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- China’s rise and the U.S. response to the perceived threat it represents to its predominance jeopardize the world order and affect international institutions. The paralysis of the WTO and the U.S. withdrawal from the WHO are the most visible examples, but not the only ones. This article presents the case of the International Monetary Fund. Quotas are the cornerstone of IMF governance. They determine each member’s contribution to the institution’s resources and their voting power. As the world evolves, the quota distribution needs to be adjusted. Adjustments in quota shares and thus voting powers have always been politically difficult. However, they were possible. In the early 1990s, members agreed to an increase in the representation of Japan. In the 2000s, they agreed to increase substantially the voting power of emerging economies. In contrast, the 15th General Review of Quotas concluded early 2020, failed to increase and realign quotas. The proximate cause for this was the opposition of the United States to a change in quotas. This paper argues that the U.S. decision was in large part motivated to prevent an increased influence of China. The failure to increase and realign voting powers may have long-lasting consequences. In the absence of a quota increase, the IMF will need to continue to rely on borrowed resources to avoid a drop in its lending capacity. This extension of the “temporary” recourse to borrowed resources undermines the governance of the Fund as voting powers (which are not linked to borrowed resources but only to quotas) are disconnected from member’s total contributions to the Fund and to their economic weight. This may trigger a new legitimacy crisis and provide incentives for countries like China to support the development of new and competing institutions which would better represent their interests and economic weight. Such a development would undermine the complex and fragile international financial architecture.
- Topic:
- International Organization, International Political Economy, Governance, IMF, and WTO
- Political Geography:
- United States, China, and Global Focus
10. Learning to Love Trade Again
- Author:
- Frank Lavin and Oscar Guinea
- Publication Date:
- 06-2020
- Content Type:
- Research Paper
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- We are at the moment, the first in seventy-five years, where there is no international consensus in support of trade. Indeed, trade is unloved, unsupported, and even unwanted. There is no shortage of topics in the rhetoric of trade complaints: from the rapid rise of China to Coronavirus as a metaphor for the evils of greater connectivity. Regardless of the validity of these complaints, none of them negate the central truth of trade: countries that engage in trade move ahead, and those that do not, stagnate. Our political leaders disagree. Anti-trade positions are held by leaders across the political spectrum, from Donald Trump to Bernie Sanders. And yet, the public is increasingly warm to the idea of trade. When Gallup asks Americans, “Do you see foreign trade more as an opportunity for economic growth through increased U.S. exports or a threat to the economy from foreign imports?” a record high of 79% see trade as an opportunity, with 18% viewing it as a threat. How did the world arrive at this moment where the benefits of trade are clearly evidenced while trade has become politically toxic? We identify four main factors: (i) U.S. absenteeism from the leadership role; (ii) detachment between trade and security architecture; (iii) no alternative leadership in Europe or elsewhere; and (iv) the cumbersome WTO process. Against this background we put forward five initiatives that will be big enough to count but unobjectionable enough to be adopted. The Big Three. The U.S., EU, and Japan, should establish a consultative body on trade to forge a new approach that allows trade to move ahead in the absence of universal consensus. No harm, no foul. Each of the Big Three should commit to zero tariffs on any item not produced in each particular market. A de minimis strategy. Tariffs should be eliminated on all products where the current tariff is less than 2%. At that level tariffs are simply a nuisance fee. Mind the social costs. Expand the Nairobi Protocols to include health products and green tech. Scrapping import tariffs on medical and green goods would not only encourage additional trade but will also provide health and environmental benefits. Harmonize down. The Big Three should commit that on every tariff line each of the three will be no worse than the next worse. In other words, each of the Big Three will agree to reduce its tariff on every product where it has the highest tariff of the three. These actions will spur the WTO, not undermine it. The measures we propose can be set up on a plurilateral basis that would allow other trading powers to participate. By breaking away from the tyranny of universal consensus, these actions will encourage the trading community – including the WTO – to get back in forward motion. In some respect, convergence between the Big Three is already happening. The EU and Japan signed an FTA that lowers import tariffs between these two economies, while the U.S. and Japan agreed to negotiate a comprehensive FTA. And if China is willing to step up? China should be welcomed into this group if it supports the four initiatives, changing the Big Three to the Big Four.
- Topic:
- International Political Economy, International Trade and Finance, Global Markets, Trade, and WTO
- Political Geography:
- United States, Japan, China, Europe, and Global Focus
11. Covid-19 Shocking Global Value Chains
- Author:
- Peter Eppinger, Gabriel Felbermayr, Oliver Krebs, and Bohdan Kukharsky
- Publication Date:
- 09-2020
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- In early 2020, the disease Covid-19 caused a drastic lockdown of the Chinese economy. We use a quantitative trade model with input-output linkages to gauge the effects of this adverse supply shock in China on the global economy through international trade and global value chains (GVCs). We find moderate welfare losses in most countries outside of China, while a few countries even gain from the shock due to trade diversion. As a key methodological contribution, we quantify the role of GVCs (in contrast to final goods trade) in transmitting the shock. In a hypothetical world without GVCs, the welfare loss due to the Covid-19 shock in China is reduced by 40% in the median country. In several other countries, the effects are magnified or reversed for several countries. Had the U.S. unilaterally repatriated GVCs, the country would have incurred a substantial welfare loss while its exposure to the shock would have barely changed.
- Topic:
- International Political Economy, Trade, Pandemic, Global Value Chains, COVID-19, and Supply Chains
- Political Geography:
- China and Global Focus
12. Mask Wars: China's Exports of Medical Goods in Times of COVID-19
- Author:
- Andreas Fuchs, Lennart Kaplan, Krisztina Kis-Katos, Sebastian Schmidt, Felix Turbanisch, and Feicheng Wang
- Publication Date:
- 08-2020
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- The COVID-19 outbreak has cut China's supply of and raised the world's demand for face masks, disinfectants, ventilators, and other critical medical goods. This article studies the economic and political factors that are associated with China's exports of medical equipment during the first two months of the global pandemic. Regression results show that—controlled for demand factors—countries with stronger past economic ties with China import more critical medical goods from China at both the national level and the level of Chinese provinces. Friendly political relations, such as the twinning of provinces, appear to work as a substitute for pre-existing economic ties at the provincial level. These findings imply that, to secure access to medical equipment in crises, countries are well advised to either diversify their sources or to develop closer relations with Beijing and China's provinces.
- Topic:
- International Political Economy, Exports, Pandemic, COVID-19, and Medicine
- Political Geography:
- China
13. Does the Belt and Road Initiative stimulate Chinese Exports? The Role of State-Owned Enterprises
- Author:
- Holger Görg and Haiou Mao
- Publication Date:
- 02-2020
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- This paper evaluates firms’ exporting responses to BRI and considers their heterogeneity in ownership types, product types, regional origin and trade mode. This is done by analyzing firm-product-destination level customs data from 2011 to 2015 in a gravity model framework. Our empirical results show that aggregate export behavior did not change significantly after BRI. However, ownership matters when evaluating firms’ reactions. SOEs increase their total exporting and average export value (the intensive margin) to BRI countries, while private domestic firms show no reaction to BRI at any margin. Further, our results on regional heterogeneity suggests that “open through the west”, i.e., boosting the development of western regions in China, did not appear to work in the short term. Our findings show clearly the implications of BRI’s impact from a firm level perspective.
- Topic:
- International Political Economy, Belt and Road Initiative (BRI), Exports, Trade, and Economic Development
- Political Geography:
- China and Global Focus
14. The US–China trade deal and its impact on China’s key trading partners
- Author:
- Sonali Chowdhry and Gabriel Felbermayr
- Publication Date:
- 02-2020
- Content Type:
- Policy Brief
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- The US–China Economic and Trade Agreement (ETA) entered into force on 14th February 2020, marking a new phase in their protracted trade and geopolitical rivalry. The ETA includes specific targets for increased Chinese imports of US goods and services, amounting to 200 bn USD over 2020 and 2021. The authors show that these purchase commitments can generate substantial trade diversion effects and market share shifts for China’s top trading partners. In manufacturing, Germany is likely to experience the greatest trade diversion effects in a number of industries such as vehicles (-1.28 bn USD), aircraft (-1.59 bn USD) and industrial machinery (-0.72 bn USD). Moreover, developing countries will be hit if China re-directs its imports towards US suppliers. E.g. Brazil could experience a reduction of 4.95 bn USD in soybeans exports to China in 2021 as a result of the ETA.
- Topic:
- International Political Economy, International Trade and Finance, Exports, Trade, Trade Policy, and Imports
- Political Geography:
- United States and China
15. Silk Road Pathways: The China–Central Asia–West Asia Economic Corridor
- Author:
- Yu Hongjun
- Publication Date:
- 09-2020
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- Since the outbreak of 2008 world financial crisis, issues such as lackluster economic growth around the world and lack of progress in regional cooperation have not been resolved. Conservatism, isolationism, racism, populism, and unilateralism are on the march; political and social movements based on opposition to economic globalization are in vogue; and policymakers as much as ordinary people are expressing concern about the future of the world. Based on his observations and thoughts with regards to modern international relations, as well as his commitment towards a common destiny for mankind, Chinese President Xi Jinping proposed the launch of the Silk Road Economic Belt and Twenty-first Century Maritime Silk Road, which together form the globally influential Belt and Road Initiative (BRI).
- Topic:
- International Political Economy and Geopolitics
- Political Geography:
- China, Europe, Asia, and Global Focus
16. From the EMS to the EMU and...to China
- Author:
- Joseph Halevi
- Publication Date:
- 11-2019
- Content Type:
- Working Paper
- Institution:
- Institute for New Economic Thinking (INET)
- Abstract:
- The paper highlights the position of German authorities, showing that they were quite lucid about the fundamental weaknesses inherent in a process that separated monetary from fiscal policies by giving priority to the centralization of the former. Instead of repeating the well known critiques levelled against the EMU – for which readers are referred to the unsurpassed treatment by Stiglitz, the essay highlights the splintering of Europe in the way in which it has unfolded during the 1990s and in the first decade of the present millennium. In particular the early economic and political origins of the terminal crisis of Italy are located between the late 1980s and the 1990s. France is shown to belong increasingly to the so-called European periphery by virtue of a weakening industrial structure and persistent balance of payments deficits. The paper argues that France regains its central role by political means and through its weight as an active nuclear military power centered on maintaining its imperial interests and posture especially in Africa. The first decade of the present millennium is portrayed as the period in which a distinct German economic area had been formed in the midst of Europe with a strong drive to the east with an increasingly powerful gravitational pull towards the People’s Republic of China.
- Topic:
- Economics, International Political Economy, Political Economy, History, and Macroeconomics
- Political Geography:
- Africa, China, Europe, Asia, Germany, and Global Focus
17. China and the World Bank: How Contrasting Development Approaches affect the Stability of African States
- Author:
- Kai Gehring, Lennart C. Kaplan, and Melvin H.L. Wong
- Publication Date:
- 10-2019
- Content Type:
- Working Paper
- Institution:
- Empirical Studies of Conflict Project (ESOC)
- Abstract:
- China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.
- Topic:
- Development, International Political Economy, Political Economy, World Bank, and Developing World
- Political Geography:
- Africa and China
18. The role of Chinese finance in the City of London after Brexit
- Author:
- Sarah Hall
- Publication Date:
- 06-2019
- Content Type:
- Policy Brief
- Institution:
- Asia Research Institute, University of Nottingham
- Abstract:
- London is the largest western financial centre for financial transactions denominated in Renminbi (RMB) and has played an important role in shaping the rapid and recent internationalisation of Chinese finance. This policy brief discusses how to maintain this leading role post-Brexit.
- Topic:
- Economics, International Political Economy, Finance, Brexit, and Financial Institutions
- Political Geography:
- Britain, China, and United Kingdom
19. The role of Chinese finance in the City of London after Brexit: Background Report
- Author:
- Sarah Hall
- Publication Date:
- 06-2019
- Content Type:
- Special Report
- Institution:
- Asia Research Institute, University of Nottingham
- Abstract:
- The competitiveness of London’s financial centre is shaped by the UK’s current adoption of EU regulations. The future development of London’s financial services sector is unknown as Britain’s relationship with Europe changes following the vote to leave the EU in the 2016 referendum. This uncertainty arises because even if Theresa May’s Withdrawal Agreement is adopted, the UK will then have to choose whether to converge, seek equivalence with or diverge from EU regulations for financial services. Research by Professor Sarah Hall (University of Nottingham) argues that the implications of these regulatory decisions will impact London’s financial services sector’s relationship with financial markets globally. Her research focuses on how London’s role as the largest western financial centre for financial transactions denominated in China’s currency, the renminbi, could be adversely affected following changes in the regulatory alignment between the UK and the EU following Brexit.
- Topic:
- Economics, International Political Economy, Finance, and Financial Institutions
- Political Geography:
- Britain, China, and United Kingdom
20. Shooting Oneself in the Foot? Trade War and Global Value Chains
- Author:
- Cecilia Bellora and Lionel Fontagné
- Publication Date:
- 12-2019
- Content Type:
- Working Paper
- Institution:
- Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
- Abstract:
- Despite the “Phase One Deal” agreed on mid-December 2019, bilateral tariffs between US and China remain at unprecedented high levels, which will have long-lasting effects. US tariffs remain very high on parts, components and other intermediate products; similarly, only the last wave of Chinese retaliatory tariffs has been half cut. We investigate in this paper how such tensions between highly interdependent economies will impact trade, income and jobs. We rely on a set-up featuring General Equilibrium, imperfect competition and importantly differentiating demand of goods according to their use, for final or intermediate consumption. This authorizes tracing the impact of protection along the value chains, on prices, value added and factor income. Additional tariffs from official lists are taken into account at the tariff line level, before being aggregated within sectors. Beyond the direct toll of sanctions, US exports to the world post a sizeable decrease as a result of reduced competitiveness led by vertical linkages along the value chains. Because of the tariffs in place as of February 2020, three quarters of the sectors decrease their value added in the US. Consistent with political economy determinants, these twists of value added are transmitted to production factors, leading to sizeable creation and destruction of jobs, and reallocation of capital to the benefit of protected sectors, mostly at the expense of their clients. Ultimately, this paper sheds light on the economic consequences of policies disrupting global value chains.
- Topic:
- Economics, International Political Economy, Bilateral Relations, Tariffs, Trade Wars, and Trade
- Political Geography:
- United States and China
21. Are Your Labor Shares Set in Beijing? The View through the Lens of Global Value Chains
- Author:
- Ariell Reshef and Gianluca Santoni
- Publication Date:
- 12-2019
- Content Type:
- Working Paper
- Institution:
- Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
- Abstract:
- We study the evolution of labor shares in 1995-2014 while taking into account international trade based on value added concepts. On average, the decline in labor shares (starting around 1980) accelerates in 2001-2007, after which labor shares recover somewhat. In contrast, skilled labor shares consistently increase. The acceleration in the decline in labor shares is associated with increased intensity of intermediate input exporting; this manifests in a sharp increase in the foreign component in upstreamness of industries and countries in global value chains (GVCs). China's global integration accounts for much of this. Declines in the price of investment together with capital-skill complementarity can explain both the consistent increase in skilled labor shares and the reversal of trend in overall labor shares. Compared to shares in GDP, labor shares in gross national product (GNP) are higher in countries with positive net FDI positions; the uneven spread of multinational activity contributes to greater inequality through this channel.
- Topic:
- Economics, International Political Economy, International Trade and Finance, Labor Issues, Trade, Global Value Chains, and Skilled Labor
- Political Geography:
- China and Global Focus
22. Exchange rate pass-through to import prices: Accounting for changes in the Eurozone trade structure
- Author:
- Valérie Mignon and Antonia Lopez-Villavicencio
- Publication Date:
- 06-2019
- Content Type:
- Working Paper
- Institution:
- Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
- Abstract:
- This paper assesses whether the emergence of new trading partners (i.e., China and Eastern Europe) as suppliers reduces the exchange rate pass-through (ERPT) in Eurozone countries which differ regarding their external exposure. Using bilateral data on import prices at the two-digit sector level, we find that (i) pass-through is complete in many cases, (ii) ERPT from China is higher than from the United States, and (iii) there is no compelling evidence of a generalized link between ERPT and the increasing integration of some emerging markets in European imports. We also show that the launch of the single currency has not provoked a sufficient change in the part of trade exposed to exchange rate fluctuations and, therefore, has not affected the pass-through. Overall, the trend of liberalization in new players' markets has not altered the competitive environment such as to induce exporters of other countries to absorb exchange rate depreciations.
- Topic:
- Economics, International Political Economy, International Trade and Finance, Exchange Rate Policy, Eurozone, Trade, and Imports
- Political Geography:
- China, Europe, and Eastern Europe
23. Grading China’s Belt and Road
- Author:
- Daniel M. Kliman
- Publication Date:
- 04-2019
- Content Type:
- Special Report
- Institution:
- Center for a New American Security (CNAS)
- Abstract:
- Since its launch in 2013, what China calls “One Belt, One Road” has emerged as the cornerstone of Beijing’s economic statecraft. Under the umbrella of the Belt and Road, Beijing seeks to promote a more connected world brought together by a web of Chinese-funded physical and digital infrastructure. The infrastructure needs in Asia and beyond are significant, but the Belt and Road is more than just an economic initiative; it is a central tool for advancing China’s geopolitical ambitions. Through the economic activities bundled under the Belt and Road, Beijing is pursuing a vision of the 21st century defined by great power spheres of influence, state-directed economic interactions, and creeping authoritarianism
- Topic:
- International Political Economy and International Affairs
- Political Geography:
- China
24. China and the world trade organisation: towards a better fit
- Author:
- Petros C. Mavroidis
- Publication Date:
- 06-2019
- Content Type:
- Special Report
- Institution:
- Bruegel
- Abstract:
- China’s participation in the WTO has been anything but smooth, as its self-proclaimed socialist market economy system has alienated its trading partners. The WTO needs to translate some of its implicit legal understanding into explicit treaty language, in order to retain its principles while accommodating China
- Topic:
- International Political Economy and International Affairs
- Political Geography:
- China
25. The Future of US Strategic Competition with China
- Author:
- Atlantic Council
- Publication Date:
- 07-2019
- Content Type:
- Video
- Institution:
- Atlantic Council
- Abstract:
- Please join the Atlantic Council’s Asia Security Initiative, housed within the Scowcroft Center for Strategy and Security, for a public panel discussion on forward-looking recommendations for the future of US-China relations and US strategy towards China. How should the United States and its allies work together to respond to China’s ongoing rise? What are the advantages and limits of the current US approach? Ultimately, can the United States and China be both strategic competitors and, at least in some areas, strategic cooperators at the same time? The Scowcroft Center for Strategy and Security works to develop sustainable, nonpartisan strategies to address the most important security challenges facing the United States and the world. The Center honors General Brent Scowcroft’s legacy of service and embodies his ethos of nonpartisan commitment to the cause of security, support for US leadership in cooperation with allies and partners, and dedication to the mentorship of the next generation of leaders.
- Topic:
- International Political Economy
- Political Geography:
- China and America
26. China in the 2020s: a more difficult decade?
- Author:
- George Magnus
- Publication Date:
- 10-2019
- Content Type:
- Commentary and Analysis
- Institution:
- LSE IDEAS
- Abstract:
- The conventional narrative is that China is, or will, by 2030, be the largest economy in the world. Based on commonly held expectations historically about prewar Germany, the USSR and Japan, greater humility would not go amiss. It is not preordained that past economic trends will continue, especially in view of a much compromised outlook for both China and the rest of the world in the 2020s
- Topic:
- International Political Economy and International Affairs
- Political Geography:
- China and Global Focus