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  • 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, Economic Cooperation
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: Augusto Leal Rinaldi, 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 , Economic Cooperation
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: Marcelo Milan, 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, Economic Cooperation
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: Marcelo Corrêa, Luiz Michelo, 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, Geography
  • Political Geography: Russia, China, India, South Africa, Brazil
  • 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, Geopolitics
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: Peter Eppinger, Gabriel Felbermayr, Oliver Krebs, 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, Supply Chains
  • Political Geography: China, Global Focus
  • Author: Andreas Fuchs, Lennart Kaplan, Krisztina Kis-Katos, Sebastian Schmidt, Felix Turbanisch, 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, Medicine
  • Political Geography: China
  • Author: Holger Görg, 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, Economic Development
  • Political Geography: China, Global Focus
  • Author: Sonali Chowdhry, 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, Imports
  • Political Geography: United States, China
  • 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, Geopolitics
  • Political Geography: China, Europe, Asia, Global Focus