Showing papers on "Economic interdependence published in 2021"

Asymmetric interdependence and the politics of energy in Europe: Hirschman’s ‘influence effect’ redux

Abstract: In 1945, Albert Hirschman proposed that countries can use asymmetric trade relations as a weapon of political influence at the direct expense of the security of their trading partners. This paper argues that Hirschman’s theory of asymmetric interdependence can be applied to the contemporary case of European-Russian gas relations given that Russia uses its monopoly on gas to promote its regional political and security interests. At the same time, we argue that Hirschman’s concepts of ‘supply effect’ and ‘influence effect’ must be reevaluated in light of the deepening economic interdependence in European gas trade. By exploring three different types of dependent states, Ukraine, Bulgaria and Germany, we find that the interdependent network of trade relations in Europe, and the shared vulnerability and political influence of European gas importers, have weakened both types of economic statecraft. Yet, more indirect and diffuse forms of political influence are possible through forging ties of asymmetric interdependence.

The declining hegemony of the united states and the growing influence of china: a critical perspective on power transition theory in the 21st century

Abstract: The apparent eroding in the hegemonic power of the United States and the sustained growth of China has triggered debate as to whether the rise of China will be peaceful or conflictual Structural realism posits that the world is characterised by the anarchic ordering principle in which there is no central authority sitting above the states Therefore, the absence of a “leviathan” on the international system automatically makes every state equal on the system which created an atmosphere of competition for the maximisation of power for survival On a similar line of reasoning, the Power Transition theory as a variant theory within realism postulates that when the international system is structured based on the principle of hierarchy, peace will reign It means that when international relations are regulated and influenced by a dominant power, the international system becomes stable But the emergence of a dissatisfied powerful nation to challenge the hegemon usually ends up in war Based on this assumption, Power Transition theorists argued that the rise of China to rival the dominance of the United States could not be peaceful The Power Transition theory has influenced many academics to have the belief that the two nations will end up in “Thucydides’ Trap” This belief has aggravated the matter beyond the reasonable level and has instilled panic in the mind of foreign policymakers which could jeopardise world peace and international cooperation Hence, this paper aims to critically evaluate the deficiency of the Power Transition theory in the 21 st century in explaining the current United States-China relations and the prospect of peace or war between the two nations using process tracing Accordingly, in this paper, it is argued that in the 21 st century, an armed confrontation between the United States and China is highly unlikely Because in today’s world, nations (including the United States and China) are intertwined by the forces of globalisation which created inexorable economic interdependence Additionally, there is rapid advancement in military technology and the proliferation of weapons of mass destruction which came with the concept of Mutually Assured Destruction (MAD) Consequently, there is a need to revisit the Power Transition theory to accommodate contemporary factors The inclusion of the current variables into the Theory will make it applicable and adequately fit in the discourse of international relations and global politics of the 21 st -century international system

Cooperation dynamics under pandemic risks and heterogeneous economic interdependence.

Abstract: The spread of COVID-19 and ensuing containment measures have accentuated the profound interdependence among nations or regions. This has been particularly evident in tourism, one of the sectors most affected by uncoordinated mobility restrictions. The impact of this interdependence on the tendency to adopt less or more restrictive measures is hard to evaluate, more so if diversity in economic exposures to citizens' mobility are considered. Here, we address this problem by developing an analytical and computational game-theoretical model encompassing the conflicts arising from the need to control the economic effects of global risks, such as in the COVID-19 pandemic. The model includes the individual costs derived from severe restrictions imposed by governments, including the resulting economic interdependence among all the parties involved in the game. By using tourism-based data, the model is enriched with actual heterogeneous income losses, such that every player has a different economic cost when applying restrictions. We show that economic interdependence enhances cooperation because of the decline in the expected payoffs by free-riding parties (i.e., those neglecting the application of mobility restrictions). Furthermore, we show (analytically and through numerical simulations) that these cross-exposures can transform the nature of the cooperation dilemma each region or country faces, modifying the position of the fixed points and the size of the basins of attraction that characterize this class of games. Finally, our results suggest that heterogeneity among regions may be used to leverage the impact of intervention policies by ensuring an agreement among the most relevant initial set of cooperators.

Foreign economic policy in the European Parliament and economic interdependence with foreign powers

Abstract: What is the role of economic interdependence with foreign powers when legislators vote on foreign policies? Foreign aid and trade are among the European Union’s most important foreign policy instru...

The Chinese Way of Reforming Global Economic Governance: An Analysis of China’s Rising Role in the Group of Twenty (G-20)

Abstract: Since the Global Financial Crisis engulfed much of the world in 2008, the Group of Twenty (G-20) has emerged as the self-acclaimed “premium forum” for international economic cooperation and policy coordination. The ascendency of G-20, of which China is a part, indicates the world’s preference for a more inclusive and informal economic governance model, moving away from the relatively restrictive Group of Seven (G-7) and the legalized Bretton Woods settings. This article analyzes China’s participation and increasingly critical role in the G-20. China’s main priorities in relation to the G-20 evolved over time. The initial focuses on containing financial contagion and reforming Bretton Woods institutions were followed by attempts to resolve bilateral trade issues with the US and to fight the Coronavirus Disease 2019 (COVID-19) pandemic. China aspires to transform the G-20 from an ad hoc crisis management platform to one promoting proactive long-term global policy cooperation, partly in support of “a community with shared future for humanity” and the Belt and Road Initiative. However, public distrust of international economic interdependence, populist backlash against neoliberal globalization, as well as geopolitical, ideological, technological tussles between China and the West collectively present significant challenges to the G-20. © 2021 Taylor & Francis Group, LLC.

Bidenism as Trumpism 2.0: America’s Bipartisan Embrace of Neo-Mercantilist Policies and What this Entails

Abstract: A hefty dose of nationalism infuses Build Back Better, U.S. President Joe Biden’s economic policy priorities. Echoing Trump’s Make America Great Again promises, it embraces a zero-sum logic regarding economic relations with China, and is centered on trade protectionism, restrictions on capital and technological flows, and an industrial strategy that subsidizes American suppliers. Why? Many American politicians, if not average citizens, claim that China benefits much more than the U.S. from their economic interdependence. We debunk this idea, rejecting the logic of the arguments that policymakers deploy to justify their economic nationalism. American businesses, consumers, and workers benefit from Sino-U.S. interdependence. Plus, many of Trump’s supporters backed him not because of his protectionism, but despite it. We also discuss concerns over relative versus absolute gains in Sino-U.S. economic relations. China’s increased economic convergence with the U.S. may help explain America’s neo-mercantilism, especially in light of stagnating median wages.

Indonesia’s 2020 new paradigm of collaborative strategic outlook in the south-south cooperation (ssc) as the bridge-builder for the post-pandemic development

Abstract: The role of middle-income countries and the LDCs have been empowered through the South-South Cooperation (SSC) since 1955 when the Asia-African Conference was held in Bandung, Indonesia. The SSC itself uses the frame of triangular cooperation to achieve sustainable development goals and technical collaboration with its member states. At the beginning of 2020, the annual press statement of Indonesia’s Foreign Minister speech emphasized Indonesia’s principle on diplomacy that mutual benefit within international cooperation needs to be done by reinforcing the new paradigm of multilateralism – a collaborative strategic outlook. This article linked the new paradigm with the current context of the world’s economic polarisation and its unprecedented impacts that has made shifts towards middle-income and least-developing countries to be more resilient and cooperative amid the pandemic. With the new landscape of the global economy, Indonesia is now challenged to move forward and reinforce its partnerships in multilateralism amidst the fading global altruism and protectionism, hence this was contested during the G-20 Sherpas meeting. The document-based and internet-based research with qualitative analysis in this article also considers the recent development of conferences and meetings with the stakeholders in SSC within the period of Mrs. Retno Marsudi’s term as Indonesia’s foreign minister from 2014 until 2020. The article concludes the trajectories of Indonesia’s post-pandemic public diplomacy in SSC, the new role of Indonesia as the bridgebuilder in the post-pandemic cooperation norms to achieve the SDGs through cooperation in the G-20, and public diplomacy for the political influence and economic interdependence.

Внешняя политика Турции в постбиполярной системе координат

Abstract: Turkey's foreign policy in the first decade after the collapse of the bipolar system retained features of its continuity in comparison with the Cold War: the Kemalist principles of laicism and the choice in favor of further Westernization, with its orientation towards cooperation with the EU and Euro-Atlantic structures remained firmly in place. However, the post-bipolar period demonstrated a significant change in Turkey's foreign policy. The existing explanations for this phenomenon often start either from the appeal to the Islamic identity of the Justice and Development Party as the main reason for the changes, or from the approaches that prioritize Turkey's economic interests and emphasize Turkey's attempts to strengthen economic interdependence with neighbors in the region. Given the increasing complexity of the domestic and foreign policy nexus and the increasingly fluid characteristics of the international environment, it seems that an analysis of Turkish foreign policy in the post-bipolar period requires an alternative conceptual and methodological approach that allows the changes in Turkey's foreign policy to be viewed along three dimensions. In this article, the author resorts to just such an approach. It includes the study of domestic policy, the international context and the transformation of the ideological and institutional support of foreign policy. This approach makes it possible to explain the logic of Turkey's «sudden» reorientation from cooperation with the EU and Western countries in general to attempts to consolidate its leading role in the Middle East and establish itself as a regional hegemon in relation to situational alliances with various state and non-state actors in the broader international context.

China’s Approach to the Institutionalization of Trilateral Economic Cooperation

Abstract: In 2019, Trilateral Cooperation celebrated its 20th anniversary. As China, Japan and South Korea are close trade partners, economic cooperation is a focal point in Trilateral Cooperation. This paper endeavours to examine and explain China’s approach towards the institutionalization of trilateral economic cooperation from 1999 to 2019. The findings indicate that China was supportive towards institutionalizing trilateral economic cooperation, but it was less proactive in recent years. This is explained by two factors, namely, (a) the declining economic interdependence between China and other member states and (b) the shift in China’s regional strategy with the introduction of new regional initiatives by China, especially the Belt and Road Initiative. The findings of this study cast doubt on the critical juncture approach and the alternative explanation on balancing which perceives China’s participation in Trilateral Cooperation primarily through the lens of Sino-US relations.

Local economies and household spacing in early chiefdom communities

Abstract: Archaeological research has by now revealed a great deal of variation in the way early complex societies, or chiefdoms, developed. This variation is widely recognized, but our understanding of the forces that produced it remains relatively undeveloped. This paper takes aim at such understanding by exploring variation in the local economies of six early chiefdoms; it considers what implications this variation had for trajectories of chiefdom development, as well as the source of that variation. Economic exchange is a primary form of local interaction in all societies. Because of distance-interaction principles, closer household spacing within local communities facilitated more frequent interaction and thus encouraged productive differentiation, economic interdependence, and the development of well-integrated local economies. Well-integrated local economies, in turn, provided ready opportunities for aspiring leaders to accumulate wealth and fund political economies, and pursuit of these opportunities led to societies with leaders whose power had a direct economic base. Wider household spacing, on the other hand, impeded interaction and the development of well-integrated local economies. In such contexts, aspiring leaders were able to turn to ritual and religion as a base of social power. Even when well-integrated local economies offered opportunities for wealth accumulation and a ready source of funding for political economies, these opportunities were not always taken advantage of. That variation in the shapes of early chiefdoms can be traced back to patterns of household spacing highlights the importance of settlement and interaction in explaining not just chiefdom development, but societal change more generally.

Dollarization and economic interdependence: the case of Ecuador

Abstract: Economic theory suggest that dollarization increases the degree of interdependence between the dollarized economy and the anchor country. We test this theory for the case of the U.S. and Ecuador. We evaluate the existence of common trends and common cycles amongst production variables. The analysis considers data at the aggregate and industry levels. At the aggregate level, the results show that the economies of the U.S. and Ecuador were interrelated prior to dollarization. This interrelation increased after Ecuador adopted the U.S. dollar. At the industry level, we find that synchronization existed between some Ecuadorian industries and the U.S. Gross Domestic Product prior to dollarization. The interdependence increased after dollarization and it is particularly evident for the financial industry. This result is especially important since it shows how the use of a common currency leads to the integration of financial markets in the dollarized economy and economic activity in the anchor country.

China’s hunt for fuel through bri in the middle east

Abstract: Purpose of the study: The purpose of the study is to examine China’s hunt for the acquisition of energy supplies through the Belt & Road Initiative (BRI) in the Middle East due to the unprecedented economic expansion on accounts of which it needs reliable resources of natural gas and oil to cope with the requisite needs of energy. Methodology: The data for this study is collected from various secondary sources like Research Journals, Academic Research Papers, and Electronic Sources. Data were interpreted using the deductive method of investigation through an analytical and descriptive approach. Principal Findings: The main findings indicate that China has long followed its “win-win” strategy, which means that all trading partners of the region profit fairly, and for that reason, Beijing is aiming to boost its commercial presence in the region of the Middle East for mutual gains and that economic interdependence, according to Beijing encourages collaboration between the states on accounts of which it is considered that energy deals of China are centered on mutual economic interests. Applications of this study: Findings of the study will be helpful for scholars and academics of International Relations, Security Studies, Policymakers of China and the Middle East countries, diplomats of China, USA, Russia, Saudi Arabia, and Iran as well as it also contributes for understanding energy and economic ambitions of China in the region of Middle East, which to be accomplished through BRI. Novelty/Originality of this study: The originality/novelty of the study lies in the attempt to explore that BRI is considered as the 21st century’s Marshall Plan by China and that it will associate China’s hunt for global energy resources by diversification of the economic markets of the Middle East.

Does technology transfer from the US to China harm American firms, workers, and consumers? A historical and analytic investigation

Abstract: Decades of spectacular economic growth have made China into an important geopolitical player. As Chinese companies improve their capabilities across several areas of advanced technology, including AI, some U.S. policymakers and pundits lament the country’s “unfair trade practices” and serial “theft of American intellectual property”—particularly, through so-called forced technology transfer. China hawks claim these practices hurt U.S. companies, workers, and consumers. Do Chinese technology practices harm economic efficiency? What are their distributional consequences? To address these questions, we explore the different modalities of international technology transfer and flesh out their economic consequences. We also investigate the recent history of technology transfer, providing examples from the industrialization experiences of European countries and the Asian Tigers. We surmise that current Chinese processes are neither novel nor alarming from the standpoints of economic efficiency or distribution: U.S. firms are collecting record royalty payments for their IP from China and generating gangbuster profits due to their access to Chinese labor, suppliers, and the country’s growing consumer market. American consumers benefit from US-China economic interdependence and so do some workers. The consequences for the U.S. economy as a whole are positive. While we are agnostic about whether these practices threaten America’s national security, we offer ideas for how to prevent China from acquiring its most sensitive military technology.

Origins and consequences of economic globalization: moving beyond a flawed orthodoxy:

Abstract: Contemporary economic globalization is typically seen as a product of both trade and economic liberalization after the Second World War and of technological advances that have made it possible to o...

Impact of Novel Coronavirus Pneumonia on China’s Economy and the World Economy

Abstract: Purpose: The purpose of this article is to illustrate China’s influence on global economy through data comparative analysis of national interdependence anditsrelationto especially the economic impact in time of a major event such as a new coronavirus.

Biding time versus timely retreat: Asymmetric dependence, issue salience, and conflict duration:

Abstract: Trade-conflict studies focus on whether and how economic interdependence suppresses interstate conflict initiation Meanwhile, formal theories of war show that conflict initiation is inherently tie

Overcoming Barriers in Higher Education Mobility between Latin America, Canada and Asia: A Scoping Review

Abstract: Latin America and Asia have been tied for hundreds of years through a transcontinental trade network, which has culminated in their current economic interdependence. This interdependence necessitates cooperation, which can be bolstered through cultural understanding between the two continents. International student mobility is one way to foster intercultural relations, which are currently quite low between these regions. Canada has faced a similar struggle as Latin America to attract students in the Americas when faced with competition from US universities, but has had some successes which Latin American countries could learn from. This study therefore completes a scoping review of the literature to categorize barriers and enablers to academic mobility between higher education institutions (HEIs) in Asia, Canada, and Latin America and synthesizes relevant suggestions. An integrative literature search of qualitative and quantitative studies was conducted using six different databases. After considering inclusion and exclusion criteria, 33 studies were selected and analyzed. The results were categorized into six themes: Cultural, Academic and Professional, Linguistic, Economic, Program Structure, and Political Climate. Each theme included factors which enabled or hindered student mobility between Asia and the Americas. The findings highlight the need for Latinamerican HEIs to emphasize relevant initiatives and qualities that go beyond rankings, boost the use of English among academics and staff, actively reach out to Asian partners, and collaborate to develop credit transfer policies compatible with Asian institutions. These considerations could be all the more timely considering students are currently more open to virtual international opportunities in the midst of the COVID-19 pandemic, generating possibilities of greater collaboration between these regions of the world.

India–European Union Trade Integration: An Analysis of Current and Future Trajectories

Abstract: In a dynamic global environment of increased economic interdependence, nations are more than ever seeking to remove barriers to trade, despite growing trends of protectionism. In this context, Indi...

Economic Framework for Eurasian Integration: Theory and Practice

Abstract: Region-related formats (i.e. regional trading blocs, interregional alliances, mega-regional blocs) have significantly raised their role in settling current global economic, political, social and security agendas. The Eurasian Economic Union (EAEU) is the most successful integration project in the post-Soviet region. From the theoretical side, EU-centered theories on regionalism have generally failed to fully conceptualize Eurasian integration. Thus, when studied under the comparative regionalism approach, Eurasian integration holds a number of distinctive features. For instance, unlike in the EU, the EAEU displays a relatively low level of intra-regional economic interdependence but a rather high degree of power delegation to regional institutes. Therefore, the Eurasian integration should not be viewed through the prism of economic factors only but should also embrace common history, common values and security externalities. In 2010–2019 Eurasian integration has overall contributed to the development of the EAEU states’ economies (both quantitatively and qualitatively) given the pressure of adverse external factors (i.e. economic turbulence and sanctions imposed on Russia). EAEU states have also proportionally advanced in the creation of a common regulative framework; nevertheless, there is still much to be done. It has been revealed that in order to strengthen its global competitiveness the EAEU should explore the modalities of syndicated regionalism involving greater cooperation between regional blocks and their institutions (i.e. development banks). Thus, under this framework there are three possible gateways for the EAEU to strengthen its global competitiveness by forging alliances with other regional bodies: BRICS+, the pan-continental model and R20.

Economic Power and Vulnerability in Sino-Australian Relations

Abstract: We sift through the evidence of China’s apparent economic coercion of Australia in 2020 in order to glean insights into China’s use of geoeconomics and the broader lessons that it reveals about the relationship between power and economic interdependence. After an overview of how coercive vulnerability could arise in Sino-Australian trade, we turn to each of the main affected industries—barley, beef, tourism and education, and wine —and outline four things: the mechanism of disruption, the evidence for considering it coercive, its apparent impact, and the logic of targeting the industry. We conclude with a discussion of the lessons arising from Australia’s experience before making recommendations for government and industry.

Economic Interdependence Since COVID-19: China and South Asia

Abstract: In the backdrop of COVID-19-induced geo-political backlash against China, the article makes an assessment of the nature of economic interdependence of South Asian nations with China. Though COVID-1...

Harmonising Insolvency Law in the EU: New Thoughts on Old Ideas in the Wake of the COVID-19 Pandemic

Abstract: The COVID-19 crisis, which hit the world with full force in 2020, represents one of the greatest health and economic crises in recent history. The pandemic paralysed the world economy, forcing many countries around the globe to take emergency measures. Countries’ emergency responses to the crisis uncovered a tension between the continuous phenomenon of global economic interdependence and the tendency for nation-state governance during the crisis. Although this dichotomy was quite acute in the European Union (EU) at the onset of the pandemic – reflected overall by Member States’ preferences for national solutions over common multilateral solutions – governments eventually converged towards similar responses to the spread of the virus. These responses to the crisis included partial or total isolation of populations, travel bans, and the temporary closure of non-essential businesses. This so-called phenomenon of ‘copycat coronavirus policies’ was the result of regulatory emulation, which occurred spontaneously, with limited direct impetus from the EU. Our paper investigates whether insolvency and restructuring laws, policies, and measures followed a similar pattern. The study focuses on six selected European countries: Denmark, France, Germany, Italy, the Netherlands and the United Kingdom (UK). From a methodological perspective, our contribution relies on a case study approach. Building on the findings of this case study, our paper, then, draws more general conclusions on the process of harmonisation across the EU.

Cpec- an economic engine for peace and its impact on kashmir disagreement

Abstract: Purpose of the study: This research explores CPEC as a model of "Economic Interdependence" for being a mega driver of Globalization, which can bring economic equilibrium through development and interconnectivity for resolution of Kashmir dispute by connecting institutional and diplomatic channels to the economic interdependency. Methodology: This research is based on secondary data collected from various sources like academic papers, electronic sources, Newspapers, Periodicals, Journals, organizational reports, and books. For interpretation of data, descriptive and analytical approach has to be adopted by using the deductive method of investigation. Principal Findings: The main findings indicate that CPEC will provide grounds for minimizing conflicts on accounts of consistent regional and intra-regional economic connectivity. CPEC will transfigure the geographic position of Azad Jammu and Kashmir into an asset to be an economic engine for the establishment of peace in the region by amicable resolution of prolonged Kashmir dispute using economic connectivity. Applications of this study: This research will be helpful for academics of peace and conflict studies, International Relations, diplomacy and strategic management, policymakers, diplomats of Pakistan, China, and India. It will contribute to the resolution of the Kashmir dispute. Novelty/Originality of this study: The novelty/originality of this research lies in the attempt to correlate the concepts of "CPEC as an actor of economic interdependence" and "CPEC as a catalyst for the amicable resolution of Kashmir dispute."

Brexit: Australian Perspectives on International Trade and Customs Operations

Abstract: The decision made by a slight majority of voters in the UK to leave the EU, based on a non-binding referendum, sent initial shockwaves across the globe. The separation of the UK from the EU is still a process in the making, as there is no certainty about the negotiation approach the UK or the EU will adopt on the terms of the so called Brexit. This paper seeks to outline the major aspects of market access for the international trade of goods between the UK and the EU and the impact and opportunities for Australia, noting the comparatively greater importance of the EU 27 to Australia. The paper concludes that the economic interdependence between the UK and the EU warrants a win-win solution, despite the many as yet unknown challenges that lie ahead.

Trade Policy in the Mega-FTA Age

Abstract: In the globalisation era, major countries in the world have deepened economic interdependence and international trade has functioned as a key driver of economic interdependence. The formation of free trade agreement (FTA) networks has made great contributions to expand international trade and cross-border business operations. The FTAs serve to integrate the national economies into external markets by eliminating tariff and non-tariff barriers and promoting the harmonisation of various trade-related rules. In particular, the formation of the so-called mega-FTAs, which include a large number of counties in different regions, becomes a driving force for creating more connected and freer markets in the world.

The significance of economic interdependence for peace in East Asia

Abstract: The end of the cold war in 1991 also marked the end of the era of a bipolar world and ushered in a period of increased economic cooperation between East Asian countries. East Asia's modern political and security climate has enabled economic growth and better cooperation between various countries in that region. However, the region still faces many potential threats to regional peace and stability. In recognition of the potential future security challenges and uncertainties, regional economic interdependence is key to continued economic cooperation and political stability in this region.

Framing Trade Policy Preferences and Dialogues in ASEAN Economic Integration

Abstract: An exposure to international trade through an economic integration initiative potentially creates winners and losers at the domestic level. This chapter highlights the policy preferences and policy dialogues amongst stakeholders that shaped ASEAN economic integration within the automotive industry in Indonesia by tracing the economic integration process and critically reflects on the often-neglected competing interests and policy agenda settings. Policy preferences are defined as state motivation to pursue economic integration on the regional level, while policy dialogue is a domestic political process that involves various groups namely internationalist and backlash coalitions. Focusing on the automotive industry as an illustrative case, this chapter utilizes the qualitative approach of process tracing as a strategy to collect the data from key interviewees (government and private sector). Given the low intra-trade interaction in ASEAN, the analysis suggests that economic interdependence in sector-specific trade as the main driving force constructing policy preference. By eliminating trade barriers in the automotive industry, political elites aim to transfer domestic policy preferences to the regional level in order to secure domestic support through wealth-creation. Integrated ASEAN economies could contribute significantly to the development of the automotive industry with crucial improvements for a member country’s income per capita. The policy dialogue process traced shows that Indonesian domestic political-economic interaction was in diverged opinions between the internationalists that fully support integration and the backlash that approach economic integration cautiously. The latter perceived nontariff barriers as an acceptable strategy to protect the domestic economic interest. However, both actors’ strategies are constrained by their power, authority, as well as bargaining over the needs to address certain internal and external issues.