Showing papers on "Economic interdependence published in 2015"
TL;DR: In this article, the authors show that interdependence between Europe and Russia in the energy sphere has exacerbated security tensions between the two sides, leading to the competitive foreign policies that now see them at loggerheads in Ukraine.
Abstract: Contrary to the expectations of liberal theories, interdependence between Europe and Russia in the energy sphere has exacerbated security tensions between the two sides, leading to the competitive foreign policies that now see them at loggerheads in Ukraine. Interdependence has not worked because both sides have been worried that in the future interdependence will become asymmetrical (that is, that they will become more dependent than the other side and that the other side will take advantage of this weakness) and they have adopted policies to reduce their exposure, but they cannot reduce their own dependence without also threatening to increase the dependence of the other side. As a result, the relationship looks like a classic security dilemma – where neither side can improve its own security without threatening the security of the other side. These findings dispel commonly held notions about the pacific effects of interdependence and show that interdependence can exacerbate security tensions, p...
60 citations
TL;DR: In this paper, the authors argue that China's rise has led to a competition among different regional orders, that is, the US-led bilateralism versus ASEAN-centered and China-supported multilateralism.
Abstract: The rise of the BRICS (Brazil, Russia, India, China and South Africa) is gradually transforming the international system from a unipolar world toward multipolarity. China’s ascent not only challenges US domination, but also intensifies the institutionalization of security in the Asia Pacific. On the basis of institutional balancing theory, I argue that (i) China’s rise has led to a competition among different regional orders, that is, the US-led bilateralism versus ASEAN-centered and China-supported multilateralism. However, conflicts or wars are not inevitable since the contested regional orders can coexist in the Asia Pacific. (ii) The deepening economic interdependence has encouraged regional powers, including the United States, China and ASEAN, to rely on different institutional balancing strategies to pursue security after the Cold War.
45 citations
TL;DR: In this paper, the authors address the role and impact of industrial policies in developing countries against the backdrop of persistently high levels of poverty and inequality, critical environmental boundaries and increasing global economic interdependence.
Abstract: Against the backdrop of persistently high levels of poverty and inequality, critical environmental boundaries and increasing global economic interdependence, this book addresses the role and impact of industrial policies in developing countries. Accepting the reality of both market failure and policy failure, it identifies the conditions under which industrial policy can deliver socially desirable results. General conclusions on the political economy of development are complemented by country case studies covering Ethiopia, Mozambique, Namibia, Tunisia and Vietnam.
44 citations
TL;DR: The authors examined two competing visions of global economic "interdependence" during the 1970s, and concluded that both these visions shared the assumption that the global economy was governed by political rules and could be managed by collective state action.
Abstract: This article examines two competing visions of global economic “interdependence” during the 1970s. The first was a hopeful vision proclaimed by the advocates of the New International Economic Order (NIEO), who saw interdependence as an opportunity to bring about greater economic equality between developed and developing nations. The NIEO’s critics argued for a more pessimistic view, emphasizing the way that interdependence transmitted economic shocks between countries and gave all nations a stake in maintaining the stability of the existing order. Despite their disagreements, however, both these visions shared the assumption that the global economy was governed by political rules and could be managed by collective state action. That assumption was increasingly challenged after the 1970s, leaving the NIEO debate as an important window into an era before more purely market-oriented visions of the global economy took hold.
30 citations
TL;DR: In this paper, the impact of the Eurozone's economic policies on specific South-Eastern European countries, namely Bulgaria, Croatia, Cyprus, Greece, Romania, Slovenia and Turkey, is assessed.
25 citations
28 Jan 2015
TL;DR: In this paper, the authors claim that states' trade interests affect their decisions to militarily assist their partners in armed conflicts and their choice of sides, and that economics shapes the expansion of conflicts to third-party states.
Abstract: Recent work on economic interdependence and conflict has focused largely on explaining whether trading states fight each other while ignoring the possibility that trade has broader political implications on state behavior. In this study, I claim that states’ trade interests affect their decisions to militarily assist their partners in armed conflicts and their choice of sides. The empirical analysis offers evidence that economics shapes the expansion of conflicts to third-party states. When third parties have important trade interests in a conflict participant, they join with their partners to protect their economic stakes against the potential externalities of armed confrontations. Yet, in cases where an outside state has interests in opposing sides of the conflict, it does not support one trade partner against another and abstain from joining on either side.
16 citations
TL;DR: In economics, one of the most important subjects is to increase economic growth and welfare of society as mentioned in this paper.This study mainly focused Smith's views on the determinants of economic growth It is clear that modern economic growth theory has been still benefited from the Smith's view on the economic growth which are division of labour, education, human capital, learning by doing, increasing returns to scale, technological change, externalities, institutional factors such as global free competitive market economy, the role of government etc.
14 citations
Journal Article•
TL;DR: In this paper, the authors examine the diplomatic recognition of Taiwan by examining the systemic, domestic and individual levels of analysis and find that major leaders of Taiwan's diplomatic allies have played a key role in Taiwan's recognition.
Abstract: Despite the post-World War II emergence of many small states and growing economic interdependence, small state foreign policy still gets short shrift in international studies. This article seeks to enhance our understanding of the subject by examining the diplomatic recognition of Taiwan. At the time of writing, 23 countries in the world have picked Taiwan over China. This is puzzling at first sight, since China is much more powerful than Taiwan, and a vast majority of countries pick China over Taiwan. This article shows that a full understanding must simultaneously take into account the systemic, domestic and individual levels of analysis. This research lends itself to structural realism, which stresses the role of structural factors in foreign policies, especially among small states. On the domestic level of analysis, this study identifies three important factors: ideology, economy and geography. For structural and cultural reasons, major leaders of Taiwan’s diplomatic allies are found to have loomed large in the diplomatic recognition of Taiwan.
13 citations
12 citations
TL;DR: In this paper, the authors argue that these proposals represent a third phase of competitive regionalism in the Asia Pacific, which will be more complex than the previous two rounds, driven by two factors: this time, rivalry is not over scope or leadership but regional order; and this time there is a greater number of leading players in the rivalry.
Abstract: The Asia Pacific is currently beset by two contradictory trends: growing economic interdependence and deepening strategic rivalry. Amidst these trends, new sets of regional trade agreements are being negotiated, primarily the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). This article argues that these proposals represent a third phase of competitive regionalism in the Asia Pacific, which will be more complex than the previous two rounds. This complexity is driven by two factors: this time, rivalry is not over scope or leadership but regional order; and this time there is a greater number of leading players in the rivalry.
12 citations
TL;DR: In this article, the authors argue that legislators hesitate to take aggressive action on the exchange rate issue because doing so could lead to a disruption of the broader United States-China economic relationship.
Abstract: Analysts generally believe that a weaker currency primarily benefits a country's manufacturing and primary goods sectors. However, many of these industries—and the elected officials who represent them—frequently oppose legislation designed to combat the dollar's overvaluation relative to the Chinese yuan. I argue that legislators hesitate to take aggressive action on the exchange rate issue because doing so could lead to a disruption of the broader United States–China economic relationship. The threat of an economic conflict emerges as a particularly important consideration in the context of currency bills, where proposed legislation is linked to trade policy and other areas of international economic regulation. A Bayesian statistical analysis of legislative behavior on two recent exchange rate bills in the US Congress provides overall support for my hypotheses. Legislators with ties to business interests that rely heavily on the Chinese economy were more likely to oppose the bills, while the strongest support came from legislators representing import-competing domestic producers. The results highlight the ways that economic interdependence shapes bilateral exchange rate politics in particular, and United States–China interactions more generally.
TL;DR: Interdependence is a potentially powerful conceptual tool that can help geography researchers, teachers and learners to make sense of complex social, economic, cultural and ecological interrelationships.
Abstract: Interdependence is a potentially powerful conceptual tool that can help geography researchers, teachers and learners to make sense of complex social, economic, cultural and ecological interrelationships. As this article shows, ‘interdependence’ is a concept with a history. It begins with a summary of the political, policy and cultural uses of the term across the last century. The range of different disciplines that have worked with interdependence is indicated, including geographical and international relations research. Some of the hazards of working with the concept, and its promiscuity, are offered. The concept has proven, however, to be a valuable reference point in developing thinking about the geographies of vulnerability and responsibility. Finally, the article closes with a look at the work of the Interdependence Day project – an interdisciplinary team (of which I am a member). The article concludes that thinking in terms of interdependence not only helps to sketch out relationships and consequences in ways that respect complexities, but also informs any action.
TL;DR: In this paper, the authors argue that the relationship between China and the USA is likely to continue as long as the relationship is underpinned by mutual nuclear deterrence as well as economic interdependence.
Abstract: Peace between China and the USA is likely to continue as long as the relationship is underpinned by mutual nuclear deterrence as well as economic interdependence
Journal Article•
TL;DR: The Transatlantic Trade and Investment Partnership (TTIP) as discussed by the authors is a free trade agreement between the United States and Europe that aims to boost economic growth on both sides of the Atlantic.
Abstract: 1. IntroductionAmerican and European negotiators are hard at work trying to bring to a successful conclusion negotiations over the Transatlantic Trade and Investment Partnership (TTIP). The primary motivation behind this effort is to boost economic growth on both sides of the Atlantic. Amid a prolonged economic downturn, American and European policy makers are searching for measures capable of stimulating growth and creating jobs. Structural constraints in Europe and political gridlock in the United States make a free trade agreement one of the more attractive options available for achieving these objectives.Although its economic impact is the chief driver behind TTIP, the pact would also have important geopolitical consequences. These geopolitical consequences are, however, not well articulated by policy makers. Moreover, the scholarly literature provides indeterminate findings as to the geopolitical implications of increased economic interdependence. Some studies indicate that commercial interdependence facilitates political cooperation and geopolitical stability, suggesting that TTIP, if successfully concluded, may be an important source of transatlantic solidarity.1 Other studies are more circumspect about the strategic implications of interdependence, finding little evidence that economic integration on its own is an important contributor to geopolitical stability.2 High levels of interdependence among Europe's major powers did little to stave off World War I. In similar fashion, commercial and financial flows between China and Japan appear to have little effect on dampening geopolitical rivalry. From this perspective, policy makers and analysts alike should be careful not to overstate TTIP's political and strategic implications.The goal of this paper is to explore the likely geopolitical impact of TTIP. It argues that a transatlantic free trade pact would have significant geopolitical implications. In particular, TTIP, by creating jobs and stimulating growth, would help revitalize the Western democracies and advance the prospects for the West's reclamation of political and strategic purpose. As the distribution of global power continues to shift from the West to the "rising rest" in the years ahead, it is essential that the Atlantic democracies remain a strong and effective anchor of liberal values and practices. TTIP has an important role to play in guiding the West out of its economic and political malaise, thereby enabling it to serve as the anchor of liberal democracy in a world headed into an era of profound change.This essay will also argue, however, that TTIP could potentially have significant geopolitical downsides. The more ambitious and exclusive the "club" constituted by the Atlantic democracies, the higher the barriers to entry, and the less likely it is that emerging powers will want or be able to play by Western rules. In this sense, TTIP could exacerbate dividing lines between the West and rising states. Another risk is that the Atlantic democracies come to view TTIP as a substitute for strategic partnership and turn to commercial ties to serve as the West's binding glue. To do so would be a dangerous mistake. The strength of commercial ties across the Atlantic notwithstanding, the Western democracies must ensure the continued viability of NATO and work to uphold their historic commitment to collectively shoulder geopolitical burdens. TTIP cannot serve as a substitute for NATO.The paper begins by exploring TTIP's geopolitical upsides. It then examines the pact's potential downsides and illuminates the need for sobriety about its positive geopolitical effects. The analysis is not meant to argue against TTIP. On contrary, the pact's overall economic and geopolitical effects are definitively positive. Nonetheless, it is important for the Atlantic democracies to proceed with eyes wide open.2. The Positive Geopolitical Effects of TTIPThe Weakening of the Liberal OrderEuropeans and Americans have been the world's trend-setters for the last two centuries; together, they forged the liberal international order that has accompanied the onset of a globalized and interdependent world. …
Journal Article•
TL;DR: In this article, the authors examined the China-plus-one diversification strategy that has been adopted by some Japanese multinationals and found that an increasing number of Japanese firms already employ this strategy, or are considering its use; they also found that the impact of anti-Japanese protests against Japanese firms in China is increasing.
Abstract: The East Asian political situation has grown volatile as a result of territorial disputes, historical legacies, and other regional rivalries. On the other hand, another notable phenomenon among East Asian countries is a very high degree of economic interdependence. To understand these somewhat contradictory phenomena and, in particular, how private actors have engaged in cross-border economic activities to cope with political instability this study will examine the China-plus-one diversification strategy that has been adopted by some Japanese multinationals. This study finds that an increasing number of Japanese firms already employ this strategy, or are considering its use; it also finds that the impact of anti-Japanese protests against Japanese firms in China is increasing, and that the most highly preferred investment destination in terms of diversification is Southeast Asia.
TL;DR: The authors identified the explanatory sources of Asians' perceptions about China's rise and found that the growing perception that China has the most influence in Asia is more related to individual-level demographic variables which are associated with greater interest in political affairs, despite the fact that there is also some evidence that contextual factors related to economic interdependence also matter.
Abstract: This article identifies the explanatory sources of Asians' perceptions about China's rise. The authors try to decipher the relative importance of individual-level explanatory variables such as socio-economic satisfaction, cognitive schema, and ideology and political values vis-a-vis that of the country-level structural variables such as geopolitical tension, economic interdependence and cultural identity. The empirical findings suggest that the growing perception that China has the most influence in Asia is more related to individual-level demographic variables which are associated with greater interest in political affairs, despite the fact that there is also some evidence that contextual factors related to economic interdependence also matter. A favorable perception of China's influence, on the other hand, is more associated with a less negative orientation on geopolitical and cultural factors, which both involve long-term historical memory and political feelings. Economic interdependence might engender...
Posted Content•
01 Jan 2015
TL;DR: In this paper, the authors address the role and impact of industrial policies in developing countries and identify the conditions under which industrial policy can deliver socially desirable results, with country case studies covering Ethiopia, Mozambique, Namibia, Tunisia and Vietnam.
Abstract: Against the backdrop of persistently high levels of poverty and inequality, critical environmental boundaries and increasing global economic interdependence, this book addresses the role and impact of industrial policies in developing countries Accepting the reality of both market failure and policy failure, it identifies the conditions under which industrial policy can deliver socially desirable results General conclusions on the political economy of development are complemented by country case studies covering Ethiopia, Mozambique, Namibia, Tunisia and Vietnam
TL;DR: In this paper, the United States and other nations can engage North Koreans at all levels of society and build a future environment of cooperation and stability, which will prove more successful than isolation, sanctions, or military force, and will bolster regional actors' efforts to develop additional stability-inducing policies.
Abstract: Given North Korea’s desire to maintain nuclear weapons—and barring its unexpected collapse—how can the US and its allies establish and maintain a peaceful Northeast Asia? Current US policy alternatives do not offer an effective means for removing North Korean nuclear weapons without creating many more serious problems that jeopardize a stable future for Northeast Asia. However, by engaging in foreign direct investment (FDI) through North Korea’s special economic zones, the United States and other nations can engage North Koreans at all levels of society and build a future environment of cooperation and stability. Such a long-term engagement policy will prove more successful than isolation, sanctions, or military force, and will bolster regional actors’ efforts to develop additional stability-inducing policies.
TL;DR: In this paper, the authors analyze the U.S. and Iran's economic interdependent foreign ties from 2005 up to the end of the Joint Plan of Action (JPA) first phase in July 2014 and highlight the importance of economic and political interests.
Abstract: From 2005 up until the end of the Joint Plan of Action’s first phase in July 2014, the United States sought to exploit Iran’s economically interdependent foreign ties in order to eradicate the perceived Iranian nuclear threat. This article analyzes the developments that took place in this time frame to assess and establish the effectiveness of this economic policy to achieve its security aim. By positing the argument in the context of the economic interdependence–security literature, this article contributes to the debate and policy discussions concerned with this political economy approach, and highlights the importance of economic and political interests when considering this relationship. By using the U.S.–Iran case study, this article emphasizes that unilateral actions to economically isolate a state are becoming increasingly impotent. Therefore, for such an economic isolation policy to work, it must be adopted on a multilateral if not universal level. Only then can the economic incentive for the targ...
01 Jan 2015
TL;DR: In this article, the authors provide a realist account of the puzzling trajectory of Russian-Turkish bilateral relations since the early 2000s, showing that between 2003 and 2011 these two major Eurasian powers engaged in an unprecedented level of political cooperation under the framework of strategic partnership.
Abstract: This article provides a realist account of the puzzling trajectory of Russian–Turkish bilateral relations since the early 2000s. Between 2003 and 2011 these two major Eurasian powers engaged in an unprecedented level of political cooperation under the framework of “strategic partnership.” Bilateral relations deteriorated after 2011, indicating a return to a more competitive equilibrium. Two factors explain this pattern of cooperation and conflict: (a) the growth of economic interdependence between Russia and Turkey, based on energy partnership in particular, (b) the convergence of Moscow and Ankara’s security interests in Eurasia.
01 Jan 2015
TL;DR: Park Geunhye as mentioned in this paper argued that Asia suffers from the "Asian paradox", the disconnect between growing economic interdependence on the one hand, and backward political, security cooperation on the other.
Abstract: In her speech to a joint session of Congress in May 2013, Park Geunhye contended, “Asia suffers from what I call ‘the Asian paradox,’ the disconnect between growing economic interdependence on the one hand, and backward political, security cooperation on the other.” This is, she noted, because “differences stemming from history are widening” and “how we manage this paradox” will determine the configuration of a new order in Asia.1 Other leaders of the region would agree with her assessment, though they might differ on how to manage the paradox. While Northeast Asia has witnessed growth in regional interactions over the past two decades, especially in the spheres of culture and economy, wounds from past wrongs, committed during colonialism and war, have not yet fully healed. The question of history has become a highly contentious diplomatic issue and a centerpiece in national identity, crowding out other dimensions and complicating bilateral relations as well as US strategic calculations.
28 Apr 2015
TL;DR: In this paper, the authors argue that acceptance and support for China's new major power status and corresponding regional initiatives like the Asian Infrastructure Investment Bank and a "new Asian security order" face three particular challenges in East Asia.
Abstract: Rapid changes in power relativities inevitably aggravate security fears among smaller, weaker states and those in relative decline. The closer these states are to the major power and the deeper their historical relationships with it, the more this is true. It is preponderant on rising or remerging major powers to assuage these worries in word and action. If not, the rising or reemerging power will face resistance. Under Xi Jinping, Chinese foreign policy has embraced China's status as the leading power in East Asia and one of two major powers globally. Acceptance and support for China's new major power status and corresponding regional initiatives like the Asian Infrastructure Investment Bank and a "new Asian security order" face three particular challenges in East Asia. The first challenge is increasingly public concerns about possible future Chinese hegemony with the East and South China Sea disputes, in particular aggravating these worries among the non-Chinese disputants. The second challenge is the disruption of the liberal virtuous cycle between growing economic interdependence and more aligned strategic interests and greater strategic trust. The third is the strengthening of alliance and security partnerships between the United States and a growing number of East Asian states from Vietnam and Singapore to the Philippines and Japan. Chinese foreign policy under and after Xi Jinping will have to respond to these concerns and reassure its East Asian neighbours in order to succeed.
TL;DR: In this article, the authors identify the importance of trade in Pak-India peace process and emphasize that trade is instrumental in achieving and maintaining peace and stability in the Indian subcontinent.
Abstract: The idea behind this study is to identify the importance of trade in Pak-India peace process. This study emphases that trade is instrumental in achieving and maintaining peace and stability in the Indian subcontinent. Economic interdependence promotes peace and mutual economic benefits preclude war between nations and this concept has been argued in the paper. Furthermore, considering Pakistan-India trade relations; barriers to bilateral trade; current trade volume; measures needed to be adopted for improving bilateral trade and its role in Indo-Pak peace negotiations, territorial and border disputes and peace settlement have been analyzed. It is, therefore, concluded that trade can play a soft and positive role in conflict resolution between the two long standing adversaries.
Posted Content•
TL;DR: In this paper, the authors provide insights into the interplay between globalisation and conflicts through a theoretical literature review, which is drawn from a large number of debates advocating globalisation as being a double edged sword.
Abstract: This paper is aimed at providing insights into the interplay between globalisation and conflicts through a theoretical literature review. The motivation is drawn from a large number of debates advocating globalisation as being a double edged sword. The main argument is drawn from the Liberal premise that globalization, through integration and economic interdependence dampens the likelihood of conflicts, whilst the opposite holds for Structuralist theorists. The key highlight from the study is that, different factors exist in determining the relationship between globalisation and conflicts hence furthering the study by means of conducting an evidence based research design is essential in interrogating and extending the current discourse.
TL;DR: The authors argued that the bipolar system in Asia will be relatively stable, however, because of conventional military balance, nuclear deterrence, and economic interdependence, and that the region is likely to be divided by China's growing power and the American presence.
Abstract: Given several possible strategic scenarios for East Asia, I argue that the region is likely to be divided by China’s growing power and the American presence along with its allies. The bipolar system in Asia will be relatively stable, however, because of conventional military balance, nuclear deterrence, and economic interdependence.
Journal Article•
TL;DR: This article found that those who reported to be prouder to be Korean held more positive perceptions of other countries as a potential ally to cooperate with, and that reflecting upon pride of national membership can improve perceptions toward others.
Abstract: How do countries with a history of conflict and colonialism overcome animosity? Despite thick economic interdependence and societal contact, problems of memory remains in Northeast Asia, as negative images spawning from past interactions continue to inhibit improvement in perceptions of other states. Riots exhibit anti- Japanese sentiment in South Korea, Japan is taking an increasingly conservative hardline, and with a rising China, the chronic antagonism in the region could take a turn for the worse. We borrow from the social-psychological theory of group-affirmation and apply it to an international context to hypothesize that reflecting upon pride of national membership can improve perceptions toward others. Utilizing survey data collected during 2007 to 2012 from 7200 South Koreans, we find that group members who reported to be prouder to be Korean held more positive perceptions of other countries as a potential ally to cooperate with. The implications of the study propose a more realistic route to cooperation than an erosion of national identities.
Dissertation•
01 Aug 2015
TL;DR: In this article, a decision theoretic model for explaining how economic interdependency will decrease the probability of conflict is presented, where both static and dynamic formed games are introduced and the models conclude that the utility of engaging in war when groups which have symmetric endowments are higher.
Abstract: This study aims to explicate a set of specific conditions under which colonization may lead to civil war. The specific set of conditions focus on how colonization affects the economic relations of groups within colonized states in both directions. First of all, the study examines the decision theoretic model for explaining how economic interdependency will decrease the probability of conflict. In doing so, static and dynamic formed games are introduced and the models conclude that the utility of engaging in war when groups which have symmetric endowments are higher. Therefore, when colonization monoculturizes the production of groups, the onset of war has more risk to the groups. In order to illustrate the model, the study focuses on two cases: the Arusha and Meru in Tanganyika and the Hema and Lendu in the Democratic Republic of Congo. The case of Arusha-Meru people indicates that colonization actually lead the production scheme to diversify and hence, decreases the tension between them. On the other hand, the Hema and Lendu tribes illustrate the impact of monoculturization on the onset of civil conflict.
01 Jan 2015
TL;DR: In this article, the authors argue that interdependence has only recently emerged in the India-China dyad and that lingering strategic distrust, national security consideration, and protectionist tendency have prevented the deepening of economic interdependencies.
Abstract: This study situates Sino-Indian economic interaction under the interdependence framework. By mapping conflict behavior in this dyad against the trends in the economic interdependence, we find a discernible shift away from escalation (high-level conflict) towards bargaining (diplomatic contestation). This paper argues that interdependence has only recently emerged in the India-China dyad and that lingering strategic distrust, national security consideration, and protectionist tendency have prevented the deepening of economic interdependence. The findings challenge the direction of interdependence in this dyad normally gleaned from nominal trade data. This paper also highlights key issue-areas that inhibit strategic coupling in the bilateral economic interaction.
TL;DR: This article examined the influence of globalization on party responsiveness across different forms of production-welfare regimes and found that political parties competing in these organized market economies do not respond to public opinion regardless of level of exposure to world markets.
Abstract: Previous research has argued that while elections motivate parties to respond to public sentiment, global economic ties reduce this responsiveness by redirecting elites from their electorates and toward market actors. In this study, we extend this work to examine the influence of globalization on party responsiveness across different forms of production-welfare regimes. Coordinated market economies (CMEs) accommodate economic interdependence by striking corporatist bargains between political elites, trade union representatives, and organized business. Although these consensual relations facilitate economic stability, they also insulate policymakers from voters. Analyses that pair public opinion and party positions across 18 advanced capitalist democracies from 1977 to 2009 show that while CMEs permit political elites a wide room to maneuver under economic globalization, political parties competing in these organized market economies do not respond to public opinion. This is the case regardless of level of exposure to world markets. In CMEs, party position-taking is uninfluenced by external factors (economic globalization) and domestic factors (public opinion) alike. By examining the consequences for party behavior, our results raise questions about the virtues of coordinated market capitalism for the health of representative democracy.