Domestic Interest Research Articles

Indonesian Foreign Political Analysis of Legal Protection of MSME Products Pancasila Economic Perspective

Indonesia's foreign policy should provide maximum protection to domestic interests, including the MSME sector. MSMEs as the spearhead of the people's economy need to be protected optimally in global trade competition. Indonesia's international trade competition is often defeated by global interests which are suspected of carrying out practices prohibited by international agreements (WTO), so that normally they are sometimes constrained by these agreements. A complex approach is needed to provide a comprehensive view, in this case viewed through the Pancasila economy to ensure and determine the size of domestic interests, so that it has strong arguments in protecting Indonesia's trade interests. This study uses a normative legal method that specifically examines matters relating to legal documents through statutory, conceptual and case approaches. This research has resulted that legal protection has actually been provided by the state through several laws and regulations, but sometimes the arguments for state or domestic interests have not been fulfilled. Foreign policy based on Pancasila as the foundation of the state illustrates that a populist economic system is based on kinship and people's sovereignty to support the improvement of the populist economy.

The domestic politics of selective permeability: disaggregating the Canadian migration state

ABSTRACT Hollifield’s ‘migration state’ concept draws attention to the political tension between openness and closure in liberal-democratic countries, arguing that domestic migration policy regimes represent an equilibrium outcome between security, rights, markets, and culture. This overstates national strategic control over migration and borders. Through a case study of recent developments in Canada, sometimes held up as the paradigmatic centralised liberal migration state, we present evidence of growing policy blurring, fragmentation, and decentralisation as migration management programmes have been patched and layered in response to controversies and pressure from domestic interests, including employers, higher education institutions, advocacy groups, and subnational governments. As a result, volumes of temporary foreign workers and foreign students have increased tenfold since 2000. More generally, we propose that a strategy of disaggregation reveals the internal complexity of, and political tensions within, contemporary migration states.

Sino-Soviet Relations in the Early 1950s - Late 1960s

From 1950 to 1960, Sino-Soviet relations transitioned from a close alliance to an eventual split. This change was influenced by various factors, including the Sino-Soviet Treaty of Friendship, Alliance, and Mutual Assistance, as well as the Korean War. Despite sharing communist ideologies, the two countries had fundamental differences in their developmental objectives, which led to irreparable divisions and an ultimate severance of ties. Additionally, the personal characteristics of the leaders further exacerbated suspicions and military tensions between the two nations. In the early 1950s, the Chinese Communist Partys (CCP) policies were primarily focused on safeguarding its domestic interests. Despite underlying suspicions and compromises, China and the Soviet Union formalized their alliance through the Sino-Soviet Treaty of Friendship, Alliance, and Mutual Assistance. Chinas military involvement in Korea in 1953 further strengthened the relationship, ushering in a honeymoon period for the alliance. However, the CCP harbored a long-term objective of establishing itself as an independent entity free from external control. The underlying motives and imbalances inherent in Soviet aid began to erode the CCPs trust in the USSR. In 1956, the 20th Congress of the Communist Party of the Soviet Union (CPSU) marked the onset of ideological divergences between the two nations. Subsequent internal conflicts within the socialist bloc and disagreements on how to resolve them prompted China to scrutinize the Soviet Unions true intentions and its great power chauvinism. These evolving dynamics progressively widened the divide between China and the Soviet Union, accentuating pre-existing tensions and eventually culminating in the dissolution of their alliance.

The Irony of British Human Rights Exceptionalism, 1948–1998

Abstract Assessments of London’s relationship with Strasbourg tend to highlight recent discontent about perceived infringements of parliamentary sovereignty by the European Court of Human Rights. The British criticism is, in short, that this is not what we signed up for. But this complaint is not new. This Article argues against understanding this story as one in which this relationship only recently soured. A recurrent theme in the United Kingdom’s involvement with the institutions of the Council of Europe, especially its human rights commission and court, has been the dawning realization, again and again, that the treaties and institutions that the United Kingdom’s own lawyers and diplomats were so instrumental in devising for an emergent Council of Europe could and would be applied to its own foreign and domestic interests. It is ironic that the United Kingdom should have been so central to crafting human rights instruments from which it later sought to exempt itself. The irony is heightened by the frequency with which this founding member state realized, opposed, and then accepted the implications of its actions. An unexpected consequence of this ironic refrain of exceptionalism may be to reinforce the objective legitimacy of the system’s most challenged institutions. After all, it is hard to allege an infringement of parliamentary sovereignty if the state’s ministers repeatedly choose to abide by the (sometimes changing) treaty obligations they helped establish. On the other hand, when ministers in high dudgeon declare their outrage at the latest Strasbourg ruling, the erosion they facilitate to popular legitimacy may ultimately reduce overall respect for the European Convention. Ironically, we become the masks we wear.

Two-Level Game Analysis on US Decision to Withdraw from the Trans-Pacific Partnership (TPP)

Abstract
 This study analyzes the reasons behind the U.S. withdrawal from the Trans-Pacific Partnership (TPP) in 2017. Using descriptive methods and Two-level Game theory as an analytical tool supported by secondary data, we found some domestic factors driving this policy. First, different preferences existed between the government as the “chief negotiator” and interest groups and public opinion representing domestic interests. Two-level game theory explains that international agreement can only be ratified if the win-set negotiations are in overlapping conditions or where international and domestic preferences find a meeting point. However, no common ground between international and domestic preferences resulted in a deadlock. Second, the U.S. public strongly resisted the agreement. Public opinion and hearings are factors that, to some extent, can become obstacles for national governments in international negotiations. Ratification is not only carried out through a formal process (legislative approval) but also through an informal process (public opinion and approval). In addition, the election of Donald Trump, who carried protectionist values with his “America First” slogan, strengthened the position of the opposing groups and those who embraced protectionist values. Therefore, the election of Trump as the president marked the end of the TPP debate because both the executive as the “chief negotiator” and the dominant domestic group rejected the ratification.
 Keywords: Trans-Pacific Partnership, Two-Level Game Theory, United States

Between Superpowers: A Politico-economic Analysis of Vietnams Engagement on Sino& American Trade Framework in Asia

As a weaker polity, Vietnam is deeply influenced by China and United States in many aspects. In the context of politics in asymmetry, this paper explores the engagement of Vietnam on economic frameworks of China and US, as well as its strategy in diplomacy. Besides, this paper testifies the applicability of asymmetric theory in studying Vietnams politico-economic condition by providing updated data. Cases of Vietnams engagement on the Belt and Road Initiative (BRI) proposed by China and Trans-Pacific Partnership Agreement (TPP) and Indo-Pacific Economic Framework (IPEF) from the US are selected. It argues the logic of Vietnams move as a weaker polity between China and US: Vietnams engagement in trade framework from China and US respectively illustrates its purpose to maximize domestic interests and ensure its diplomatic independence. Vietnam wants access to AIIB funds to build its domestic infrastructure, and also the U.S. to squelch Chinas political influence. Recent scholarship in the filed has left a hugh gap since Womacks masterpiece on Sino-Vietnam relationship in asymmetry. This paper tends to fill the gap.

South Africa’s interest rate behaviour: Investigating the influence of the indicators of financial openness

This study seeks to investigate the influence of financial openness variables on South Africa’s interest rate during the period between1980-2020. The study used both Augmented Dickey-Fuller (ADF) and Philip-Perron (PP) tests to determine the order of integration of the variables, while the autoregressive distributed lag (ARDL) bounds test was used to investigate both the short and long-run impact of the independent variables on the dependent variable. The findings of the study revealed that in the short-run both foreign direct investment (FDI) inflows and FDI outflows impacted the interest rate positively. However, portfolio investment, exchange rate and capital account openness did not have any significant impact on interest rate within the duration of this research. The long-run results revealed that FDI inflows had a positive and significant impact on interest rate. Also, while capital account openness had a significant and positive impact on the interest rate, FDI outflows, portfolio investment, and the exchange rate had no significant impact on interest rate. The study concludes that apart from portfolio investment which did not exert significant impact on interest rate, other financial openness indicators used in the study had a significant impact on South Africa’s domestic interest rate. The paper argues that, appropriate monetary policy measures targeted to lessen the monetary impact of excess capital inflows should be considered. Additionally, capital account liberalization policy should be encouraged, but it needs to be regulated if it places an excessive amount of liquidity pressure on the economy.

The role of halal requirements, health-environmental factors, and domestic interest in food miles of apple fruit

Abstract This study examines the indirect and direct factors affecting the preference for distant travel of apple fruit (food miles or FMs) in Indonesia, a Muslim-majority country. This research employs a quantitative consumer survey of 522 respondents in Indonesia from January to February 2023. Data were collected online (i.e. via social media), and the respondents were chosen randomly. Data were then analysed using a partial least square-structural equation model to prove the proposed hypotheses using Rstudio. This investigation has some principal findings. First, domestic interest and health-environment benefits directly affect the preference for short food miles (SFMs). Second, the halal requirements do not directly affect the choice of SFMs but indirectly affect the preference for SFMs through health-environmental benefits. In sum, the choice for SFMs is affected by domestic interest (direct), health-environmental benefits (direct), and halal requirements (indirect). This study finally has a theoretical contribution to the interplay among green supply chain, halal food supply chain, and food security.

The US/India Civil Nuclear Agreement of 2008: A Two-Level Game?

Nuclear power relationships between states have historically determined global power structures in a wider context. Following India’s maiden nuclear test in 1974, the international community sidelined the country for a long time. However, within the next three decades, international opinions about the India significantly improved and paved the way forthe country’s first civilian nuclear deal. That said, the circumstances behind this deal and the United States of America (US)’ objectives involved therein merit a review, considering changes in the US’ domestic situation and changing political realities around the world. Did the US make an objective foreign policy decision by pivoting its nuclear policy towards India? Or was the US playing a strategic two-level game with both domestic interests as well as its international agenda at stake? This paper seeks to analyze the different layers of interests that were involved in the US’ decision-making process resulting in the Agreement. It also aims to apply Robert Putnam’s Two-Level Game Theory to understand these interests in a better way.

The Missing Nexus: A Historical and Contemporary Position of the United States on Climate Change Action

The international system is unstable due to the absence of a global regulating body, but countries are sovereign and independent. Although intergovernmental and multilateral organizations exist, there is no world government to regulate the behaviour of nations. In such an environment, states are highly concerned about their security and domestic interest over the idea of climate justice. However, the United States, with a firm hold on the economy, repeatedly refuses to take a suitable stand, from Kyoto to the Paris Accord, for reducing its greenhouse gas (GHG) emissions and endlessly demands the developing world’s engagement in climate action. The US’s withdrawal from the Paris Agreement shocked world leaders and criticized the stand of President Trump’s backpaddling, which setback climate action. It influences global emissions, at least for the time being, forcing developing economies to reduce their standard of emissions extensively. Significantly, how conscious is the United States of climate justice? How fast will the United States come back in acting the jeopardy of climate change? This article reviews the US action, shifting governments’ policy and stands on climate change from Rio Earth Summit 1992 to Glasgow Climate Accord 2021 conditions. The author has taken the 1992 to 2021 period, a blueprint for crucial climate action decided in 1992 led to the formation of UNFCCC, while the United States has re-engaged in the Paris Accord in 2021. Also, it tries to understand the shift across federal governments and the influence of local governments on climate change. Furthermore, it sheds light on the obscure image of the United States on carbon trading and tax subsidies for GHGs.

SOCIALIZATION THROUGH INTERNATIONAL INSTITUTIONS? DECODING CHINA’S VIEWS ON INTELLECTUAL PROPERTY RIGHTS SINCE ITS WTO ACCESSION

Constructivism in the studies of international relations (IR) posits that international institutions have the power to induce a state’s socialization into the norms and rules enshrined in these institutions. The study puts this hypothesis to an empirical test by analyzing China’s views on intellectual property rights (IPR) since its WTO (World Trade Organization) accession in 2001. The article examines relevant People’s Daily commentary articles published from 2001 to 2022 using Structural Topic Model (STM) and domestic scholarly debates. The study identifies four prevalent themes, including IPRs and international competition, strengthening IPR protection, developing indigenous IPRs, and achievements and barriers in IPR development. It finds that although China has increasingly realized the importance of IPRs, China’s views on IPRs are predominantly oriented toward a realpolitik discourse on leveraging IPRs to enhance China’s overall national power in international competition. While socialization is at best subordinate to China’s domestic interests in shaping China’s views on IPRs, as the country’s worldview acts as a strong mediating force between international ideas and China’s views on IPRs.

Painful Moments and Realignment: Explaining Ukraine’s Foreign Policy, 2014–2022

ABSTRACT For decades, Ukraine’s foreign policy was indecisive, with elites balancing domestic interests, Russia, and the West. This article claims a critical juncture occurred in 2013–2014 resulting in Ukraine’s decisive turn to the West for two main reasons. First, the fragmentation of the Donetsk elite and territorial losses that excluded parts of its voter base weakened “pro-Russian” political forces inside Ukraine. Second, Ukraine’s predominant foreign policy narrative increasingly portrayed the EU and NATO as a civilizational choice and Russia as a radical other. The article shows how the critical juncture made Ukraine’s shift possible and how Ukraine’s pro-Western orientation stabilized from 2014 onward.

Faktor-faktor Penentu Resesi di Indonesia (Determinants of Recession in Indonesia)

The Covid-19 pandemic has had a further impact on the global economy, such as the threat of a recession. The Indonesian economy is making various efforts to be able to overcome the existing problems. This study aims to determine the determinants of recession in Indonesia. This research uses a secondary database from the Central Statistics Agency, Bank Indonesia, Bank Indonesia and the World Bank for the period March 2020 to September 2022. (The Covid-19 pandemic has entered Indonesia until now). The analytical method used in this research is Ordinary Least Squared (OLS). The results of this study indicate that there are four variables that have a significant effect on economic growth, namely inflation, domestic interest rates, world crude oil prices, and exchange rates. The variables that have the most influence on changes in economic growth are the rupiah exchange rate against the dollar, then domestic interest rates, then inflation and finally world crude oil prices.

Defaulting Differently: The Political Economy of Sovereign Debt Restructuring Negotiations

Abstract Negotiations to restructure sovereign debt are protracted affairs, and their outcomes, known as “haircuts,” range from 0 to 80 percent creditor losses. Haircuts impact states’ ability to borrow, cost of borrowing, and economic recovery; they also redistribute income—between states and creditors and between domestic interest groups. I conceptualize the interaction between governments and private creditors as a bargaining game where the government’s will to repay is private information. Creditors can make inferences about repayment based on the government’s political economy, but distributional signals are muddled when there are multiple veto players. Where additional uncertainty persists, governments can issue a public declaration of default, triggering costs in international financial markets. This costly signal separates governments that are willing to repay from those that are not and extorts greater concessions as a result. Using data on haircuts and public default declarations in market-based restructurings from 1980 to 2009, I find that governments are more likely to engage in costly signaling when they face heightened domestic constraints. When governments issue public declarations, they are subsequently rewarded with higher haircuts. Defaults do not all look the same, and the economic consequences are varied.

Money Demand Analysis through Business Cycle in Indonesia

There is still debate about the role of monetary aggregates (money demand) and their nature in the domestic economy, whether there is a direct affect and indirect affect. After the 2008 crisis, monetary aggregates became a monetary policy tool that played an important role in maintaining domestic economic stability. This study aims to examine macroeconomic variables on the demand for money in Indonesia from 2000Q1-2021Q4 using the VECM approach. The business cycle is used as a proxy for the income variable with the Hodrick-Prescott Filter method on the GDP variable. The results show that income has a high degree of variability in the demand for money and there is a sensitivity in the response of the demand for money to fluctuations in domestic interest rates. The implication of this research the application of domestic interest rates at the lowest level can encourage income which can increase the demand for money in Indonesia.

Evolution of the US’ Strategic Ambiguity in the Cross-Strait Relations

Purpose: This paper analyzes how the US policy on Taiwan is gradually evolving from strategic ambiguity to strategic clarity. First, I would like to analyze China's Taiwan policy in terms of the core interests of the Communist Party of China. Second, I would like to specify why the US policy on Taiwan is evolving from strategic ambiguity to strategic clarity. Third, in the event of the Taiwan contingency, the security threat to the Korean Peninsula is identified and policy alternatives are proposed.
 Method: This paper delves into the US policy on Taiwan with the Balance of Interest theory of Randall Schweller. A neoclassical realist suggests that national foreign policy is indirect and complex and must be reinterpreted through a parameter unit of domestic factors. According to Neo-Classic realists, the parameters that affect a country's foreign policy are such as domestic interest groups and the political leader’s ideology and identity.
 Results: The main parameters of the US policy shift towards Taiwan from the perspectives of Neo-classical Realism are as follows. First, it is Biden’s identity of value diplomacy which prioritizes democracy and human rights. Second, Xi Jinping's military threats to annex Taiwan, and the pursuit of a gray zone strategy are driving factors for the US Policy shift from strategic ambiguity to strategic clarity. Third, the US policy shift to Taiwan was initiated by curbing China's rise through the control of the Indo-Pacific maritime control and global supply chain.
 Conclusion: The contingency in the Taiwan Strait is closely linked to security on the Korean Peninsula due to the US’ strategic flexibility. Currently, tensions between the US and China are rising in the Indo-Pacific region as the US military support for Taiwan's self-defense. The ROK should be wary of being involved in the unintended Taiwan crisis. To build a free and prosperous Indo-Pacific, strategic communication between the US and China should be strengthened while respecting the “one China” principle.

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Purpose: This research aims to investigate the presence of monetary policy trilemma in the Middle Eastern region and evaluate the spillover effects of US monetary policy on the region. Theoretical framework: Middle Eastern economies follow the dollar pegged exchange rate policy with open capital account and this poses a question about the autonomy of the monetary policy stance adopted by the regional central banks. In this context, current research considers variables such as domestic interbank interest rate, domestic liquidity, oil price and federal fund rate to test the monetary policy trilemma in the region Design/methodology/approach: To investigate the presence of monetary policy trilemma in the Middle Eastern region, this research employs the time - varying Bayesian panel vector autoregression approach and selects a panel of five Middle Eastern countries which include Saudi Arabia, United Arab Emirates, Qatar, Oman and Kuwait while considering the monthly data for the sample period 2009m10 until 2021m12. Findings: This research finds that a positive shock in US federal fund rate increases the domestic interest rates in the Middle Eastern economies. In addition, this research finds a negative relationship between oil price shocks and domestic interest rates. Whereas a positive shock in US federal fund rates induces a reduction in the oil price. Research, Practical & Social implications: Current research provides insights for policy makers to determine the autonomy of domestic monetary policy stance to achieve its broader macroeconomic objectives. . Originality/value:This research is unique as it examines the monetary policy trilemma while considering oil price as a control variable in the system under a time varying Bayesian panel vector autoregression specification.

Testing Monetary Policy Trilemma for Middle Eastern Economies Under a Bayesian Panel VAR Specification

Purpose: This research aims to investigate the presence of monetary policy trilemma in the Middle Eastern region and evaluate the spillover effects of US monetary policy on the region.
 
 Theoretical framework: Middle Eastern economies follow the dollar pegged exchange rate policy with open capital account and this poses a question about the autonomy of the monetary policy stance adopted by the regional central banks. In this context, current research considers variables such as domestic interbank interest rate, domestic liquidity, oil price and federal fund rate to test the monetary policy trilemma in the region
 
 Design/methodology/approach: To investigate the presence of monetary policy trilemma in the Middle Eastern region, this research employs the time - varying Bayesian panel vector autoregression approach and selects a panel of five Middle Eastern countries which include Saudi Arabia, United Arab Emirates, Qatar, Oman and Kuwait while considering the monthly data for the sample period 2009m10 until 2021m12.
 
 Findings: This research finds that a positive shock in US federal fund rate increases the domestic interest rates in the Middle Eastern economies. In addition, this research finds a negative relationship between oil price shocks and domestic interest rates. Whereas a positive shock in US federal fund rates induces a reduction in the oil price.
 
 Research, Practical & Social implications: Current research provides insights for policy makers to determine the autonomy of domestic monetary policy stance to achieve its broader macroeconomic objectives.
 
 Originality/value: This research is unique as it examines the monetary policy trilemma while considering oil price as a control variable in the system under a time varying Bayesian panel vector autoregression specification.

Examining the Impact of Financial Openness on Domestic Interest Rate in Nigeria

The sensitive role played by domestic interest rate in the economy has made studies on its determinants paramount. This study therefore used the autoregressive distributed lag (ARDL) bounds framework to investigate the impact of financial openness on domestic interest rate in Nigeria over the period from 1980–2020. The study included three de facto financial openness measures, namely: foreign direct investment (FDI) inflows, FDI outflows and portfolio investment as well as one de jure financial openness measure, namely: capital account openness. The short-run results revealed that while FDI inflows had a negative but non-significant impact on domestic interest rate, the impact of FDI outflows was positive and significant. The short-run results also indicated that while foreign portfolio investment had a positive but non-significant impact on domestic interest rate, the impact of capital account openness was positive and significant. In the long-run, the study revealed that FDI inflows had a negative but non-significant impact on domestic interest rate. In another vein, while FDI outflows was found to impact on domestic interest rate positively, the impact of capital account openness was also found to be positive. The study therefore concludes that domestic interest rate in Nigeria was influenced positively by both FDI outflows and capital account openness in the two time horizons and this has implications for monetary policy setting. Based on these findings, the study recommends that apart from the traditional policies used in the control of domestic interest rate, monetary authorities in Nigeria should also regulate capital outflows in their quest to direct interest rate to a desired direction.

국내 가계대출의 특징과 결정요인 분석

Purpose - Since COVID-19, the government's expansion of liquidity to stimulate the economy has resulted in an increase in private debt and an increase in asset prices of such as real estate and stocks. The recent sharp rise of the US Federal fund rate and tapering by the Fed have led to a fast rise in domestic interest rates, putting a heavy burden on the Korean economy, where the level of household debt is very high. Excessive household debt might have negative effects on the economy, such as shrinking consumption, economic recession, and deepening economic inequality. Therefore, now more than ever, it is necessary to identify the causes of the increase in household debt. Design/methodology/approach - Main methodology is regression analysis. Dependent variable is household loans from depository institutions. Independent variables are consumer price index, unemployment rate, household loan interest rate, housing sales price index, and composite stock price index. The sample periods are from 2017 to May 2022, comprising 72 months of data. The comparative analysis period before and after COVID-19 is from January 2017 to December 2019 for the pre-COVID-19 period, and from Jan 2020 to December 2022 for the post-COVID-19 period. Findings - Looking at the results of the regression analysis for the entire period, it was found that increases in the consumer price index, unemployment rate, and household loan interest rates decrease household loans, while increases in the housing sales price index increase household loans. Research implications or Originality - Household loans of depository institutions are mainly made up of high-credit and high-income borrowers with good repayment ability, so the risk of the financial system is low. As household loans are closely linked to the real estate market, the risk of household loan defaults may increase if real estate prices fall sharply.