International Economy Research Articles

Informational lobbying and commercial diplomacy

AbstractWhat determines the content of bilateral diplomacy? I argue that the foreign policy issues prioritized by specific embassies are influenced by their diplomats' sources of information. For evidence, I study the proliferation of American Chambers of Commerce (AmChams)—private interest groups composed of US firms that are operating in specific host states—over the 20th and early 21st centuries. AmChams became key sources of information for US embassies, particularly on issues of relevance to the private sector (such as tax, trade, and investment regulations). Using novel text data from approximately 1500 oral history interviews with former diplomats, and leveraging the institutional structure of diplomatic rotation, I show that diplomats who were exposed to active AmCham branches paid significantly greater attention to commercial issues. These results identify a new avenue through which interest groups can influence foreign policy, help explain the proliferation of probusiness international agreements over the past several decades, and contribute to the growing literature on diplomacy in the international political economy.

A Gravity Model Analysis of China’s Bilateral Trade Flows: The Role of Free Trade Agreements and Exchange Rates

In the field of International Economics, the gravity model of trade has been one of the most successful empirical models guiding trade-policy decisions by nations. This paper aims to incorporate the theoretical foundations into the real world of trade flows between China and rest of the countries. An augmented gravity model is applied to study the impact of two variables, free trade agreements and nominal effective exchange rate on bilateral trade flows. Multiple regression analysis is carried out on a panel data consisting of trade flows with 224 countries from 1992-2015. The estimated results reveal a positive and significant influence of FTA on exports and imports. NEER displays a positive, though not significant, relationship with China’s imports and negative with exports.

Geopolinomic codes: Territorial and discursive practices of connectivity networks of political economy

AbstractAfter the collapse of the Soviet Union in the 1990s, the global power structure entered a period of geopolitical transition. An evolved vision in the twenty‐first century shows the arrival of the geopolinomic order based on the combination of economic, political and territorial codes. Geopolinomic codes, in synergy with the global political economy, regulate the territorial and infrastructural arrangement of the world order in periods of geopolitical transition between hegemonic and emerging powers. Spatialization of power politics requires going through a set of geopolitical representations and this adds a thin discursive layer to the territorial hegemonic order. I argue that the development of geopolinomic codes allows for a more significant infusion of political economy through the centrality of territorial communication networks. A country with more manoeuvring power in adjusting geopolinomic codes and its triple levels can change the balance of global power structures in its favour.

Europe 1992 and the American Economy: A Project to Strengthen International Economics at Ohio Wesleyan University

Europe 1992 and the American Economy: A Project to Strengthen International Economics at Ohio Wesleyan University

A Popular Backlash against Globalization?

Is there a popular backlash against globalization? When did it start and in which forms? What do we know about its causes? We address these questions in the context of advanced democracies. We see the ‘globalization backlash’ as the political shift of voters and parties in a protectionist and isolationist direction, with substantive implications on governments’ leaning and enacted policies. We discuss the empirical evidence on the backlash. We develop a theoretical discussion within the framework of the crisis of embedded liberalism. We nest within this framework theoretical results from international economics showing how the backlash may arise within standard trade models when considering the ‘social footprint’ of globalization. These theoretical insights are consistent with available empirical evidence pointing to the role of globalization as a driver of the backlash. Yet, globalization is only one of the drivers of the backlash. There are other economic factors playing a similar role, such as technological change, fiscal austerity, and immigration. Moreover, cultural concerns such as status threat, authoritarianism, and nativism do play a relevant role, with a significant interplay with economic drivers. This calls for a broad and comprehensive approach to the backlash, both from an academic and from a policy making perspective.

Measuring Structural Power in Global Value Chains: Evidence from Malaysian Manufacturing

The global value chain (GVC), as the most important feature and driving force of globalisation has profoundly shaped state–market relations, as well as the international political economy. This paper uses Malaysia as a case study to demonstrate a country’s embedding structural power in GVC. Deploying the OECD’s Inter-Country Input-Output Table from 1995 to 2018, two indicators were constructed, namely power of value added (PV) and interaction of value added (IV), to measure Malaysia’s structural power in GVC. The results indicate that Malaysia’s PV in GVCs has declined over the years. A combination of high GVC participation but low GVC position indicates that Malaysia’s export sector remains stuck in low value-added activities despite being highly integrated into global production networks. Also examined is the value-added interaction between Malaysia and major economic powers, such as the US, China and Japan. In so doing, we provide an evolutionary explanation of Malaysia’s location in the international political economic system where economic and political power are increasingly intertwined.

Quo Vadis, Historical International Relations? Geopolitical Marxism and the Promise of Radical Historicism

John Maclean’s 1988 call “Marxism and IR: A Strange Case of Mutual Neglect” has generated a rich bounty of Marxist studies and paradigms in International Relations (IR). This cross-pollination merged in the 1990s with the “historical turn” and shaped the sub-fields of International Historical Sociology and International Political Economy. But has it left its mark on how IR is practised today? We argue that while Marxism has spoken significantly to the discipline, mainstream IR, even Historical IR, has been largely impervious to Marxist arguments, drawing the standard charge of economism and structuralism. Rectifying these critiques, we suggest that conventional historical studies of “the international” remain methodologically and substantively impoverished. We exemplify this by showing how leading Historical IR studies of “systems change” fail to explain the inside/outside and public/private differentiations constitutive of the modern international order and to integrate the “levels of analysis” they presuppose. We further argue that this rejection has been facilitated by influential Marxist IR paradigms, which ultimately privilege structuralism over historicism: While Neo-Gramscians initially mobilised “historicism” to dissolve claims about the “sameness” of international relations across time and space, the approach became identified with the reified master-category of “hegemony”. Uneven and Combined Development, in turn, has gravitated towards matching Neo-realism’s claim to theoretical universality by insisting on transhistorical model-building and nomological “grand theory”. Both approaches remain over-sociologised and fail to address international politics. Drawing on radically historicist Political Marxism, this article shows how its substantive socio-political premises explain the historical formation of the contemporary international order and re-unite the “levels of analysis” theoretically to provide a framework for non-reductionist and non-economistic accounts of historical international relations. This requires an answer to the agentic challenge of Neo-Classical Realism by reincorporating grand strategy, diplomacy, and international politics into a reformulated perspective of Geopolitical Marxism to track the full historicity of the making of international orders.

Global economic order and global economic governance

Abstract This issue of the Oxford Review of Economic Policy explores the origins of the US-led liberal multilateral economic order in the post-war world and the threats which that order now faces, drawing on contributions from two different groups of people—academic international relations (IR) scholars and international economists. This introductory essay attempts to weave the various strands of this intellectual collaboration together. First, it provides a narrative history of how economic collaboration emerged in the aftermath of the Second World War. Second, it describes the nature of the global economic governance that emerged and provides a new formal framework for analysing it, making use of the idea of ‘concerted unilateralism’. Third, it explores how contemporary challenges—a broadening of policy requirements, the rise of economic nationalism, and the rise of China as a new hegemon—mean that the global economic order is now in flux. And finally, it concludes with a general observation that runs through the paper: that IR scholars are inclined to analyse international economic regimes, economists to study particular policy proposals, and that these two perspectives can—and should—complement one another.

China, global economic disintegration, and the climate change challenge

Abstract China has a large national interest in the success of the international effort to hold human-induced increases in temperature to 1.5 degrees above pre-industrial levels—and therefore in global net emissions falling to net zero by 2050. China is essential to the success of the global effort—as a supplier of competitively priced equipment for the zero-emissions world economy and as the world’s largest current source of greenhouse gas emissions. Success is more likely for China and the world with international specialization in line with global comparative advantage in goods production for the zero-emissions economy. This requires open international trade, with China supplying equipment to and drawing zero emissions semi-processed goods from abroad. Contemporary tendencies in international political economy make that difficult but not impossible.

Potential Asymmetries in the International trade and Economic Growth in China: The Role of Emission Intensity

<p class="MsoNormal" style="margin-top: 10pt; line-height: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: 'times new roman', times, serif; font-size: 14pt;">This study delves into the complex relationship between China's international trade and economic growth, specifically focusing on emission intensity and its environmental ramifications within the context of energy efficiency. The primary objective is to provide a comprehensive understanding of how China's international trade dynamics influence economic growth, emphasizing emission intensity and employing a model that considers the nonlinear impact of trade on output. Through this model, structural breakpoints are identified, revealing distinct outcomes for China amidst positive and negative shocks from 1972 to 2021. The study uncovers the dual nature of the energy sector, acting both as a source of environmental degradation and a potential avenue for positive change through increased efficiency. Complex interplays among economic activities, inflation, and investment on carbon intensity are revealed. Additionally, the varying effects of export volume on carbon emissions intensity across lag thresholds underscore the significance of global trade dynamics for environmental sustainability. The study concludes by emphasizing the importance of balancing economic prosperity with environmental responsibility, advocating for carefully balanced policies that foster sustainable growth. Recommendations include considering the dual nature of the energy sector and implementing policies promoting increased efficiency. Policymakers are urged to adopt growth models prioritizing environmental responsibility, balancing economic activities, inflation, and investment to mitigate carbon intensity while acknowledging the diverse effects of global trade dynamics on environmental sustainability.</span></p>

PORT PERFORMANCE IN THE PERSPECTIVE OF SHIP ARRIVAL AND DEPARTURE REPORT DATA

The seaport as a gateway to the regional, national and international economy must pay attention to the performance of operational services, including the level of service quality of ships, goods and port facilities. Activities at the port such as sea transportation operations must be reported to the Port Operator in accordance with the format of the ship arrival and departure report (LK3) which includes the type of ship, docking terminal, arrival time data and departure time from the Port. One perspective of port performance measurement is ship service which can be measured from how long the ship is at the terminal until it leaves the port. This research method uses a quantitative approach and the Data Envelopment Analysis (DEA) method. This study aims to determine the statistical approach and measure port performance, namely turnaround time and performance efficiency. The results of the study for 2022 obtained for the type of container ship, Tanjung Emas Port has a turnaround time of 23 hours while Tanjung Priok Port and Tanjung Perak Port are more than 24 hours and port performance efficiency with DEA efficient rating value Ѳ =1 at Tanjung Priok and Tanjung Perak ports.

Арктическая повестка ПМЭФ-2023 — цифровые, экономические, экологические и социально-культурные аспекты

The article summarizes the results of the 26th St. Petersburg International Economic Forum (SPIEF-2023), which took place in St. Petersburg from June 14 to 17, 2022. V. P. Zhuravel, Head of the Centre for Arctic Studies of the Institute of Europe RAS, is a permanent member of the Forum. In 2023, he attended the meetings of all 15 events of the “Arctic: Territory of Dialogue” program. The article deals with issues that were widely discussed at SPIEF-2023, related to the prospects and opportunities for international cooperation, social, economic and investment development of the Arctic regions, Arctic biodiversity, development of specially protected natural areas, northern cities, human resources, scientific and educa-tional potential of the Arctic, branding of the northern regions, digitalization of the northern territories. All these topics are widely covered by the CAS IE RAS scientific group on a regular basis. The author also analyses the development of the tourism, culture, and film industries in the Arctic with a focus on the promotion of Arctic topics in the media. Speakers of the thematic sections emphasized the increasing role of the Arctic in the social and economic development of the Russian Federation, noted the negative consequences of limiting the activities of the Arctic Council. The forum was held under the slogan “Sovereign development is the basis of a just world. Let's join forces for the sake of future generations”.

Арктическая повестка Петербургского международного экономического форума (ПМЭФ-2023)

The article summarizes the general results of the 26th St. Petersburg International Economic Forum (SPIEF-2023), which took place in St. Petersburg from 14 to 17 June 2023. The author, as a participant of the forum, attended all 15 events of the business program “The Arctic: Territory of Dialogue”, organized by the Ministry for the Development of the Far East and the Arctic. The article focuses on the problems of international cooperation, including with Asian countries, and the development of the Northern Sea Route.

Research on the Impact of Digital Trade on Urban Carbon Emissions in China under the "Dual Carbon" Target

After the "dual carbon" goal was put forward, low-carbon development has gradually become the focus of attention from all walks of life, and digital technology plays an important role in the process of helping carbon emission reduction. Digital trade, as an active field in international economy and trade, is of great significance to the economic growth of all countries and to deal with the problem of carbon emission reduction. This paper analyzes the transmission path of digital trade on urban carbon emission reduction in China from the theory of scale effect, structure effect and technological progress effect, and based on the panel data of 280 cities in China from 2011 to 2019, uses two-way fixed effect model to conduct regression analysis on the carbon emission reduction effect of digital trade. The study finds that China's digital trade development reduces urban carbon emission intensity, and the conclusion is still valid after the robustness test. Heterogeneity analyses show that the carbon emission reduction effect of digital trade varies in different regions in the East, West and Centre, as well as in regions with different degrees of carbon emissions. In terms of the transmission path, digital trade reduces regional carbon emission intensity by promoting scale effects, technological progress and industrial structure upgrading. Therefore, on the road of actively realizing the goal of "dual carbon", China should vigorously promote the development of international trade mode mainly represented by digital trade. At the same time, we fully recognize the heterogeneity of the impact of digital trade on carbon emissions, and adopt differentiated policies according to the different utility levels of digital trade on carbon emissions in different regions. This will narrow the "digital divide" between cities and help achieve China's "dual carbon" goal.

A paradigm Shift Approach in Transforming Arts and Humanities in East African Universities from Endangerment

This paper discusses the current situation of the arts and humanities disciplines in East African universities and their endangerment. Basing on a sample of 170 respondents, selected from 10 universities, the paper applies a mixed-method approach to collect primary and secondary data by means of questionnaire and interview guides. The analysis applied the thematic approach. The findings show that the causes of the arts and humanities disciplines include lack of government support and sponsorship, misconceptions by the public and limited employability. Despite their relegation to a weak position, it was found that these disciplines significantly contribute to both national and international economies. In addition, they remain fundamental to contemporary societies which call for a symbiosis between STEM and non-STEM disciplines. It is in this context that this paper proposes a paradigm shift to save the arts and humanities from demise through the following strategies: curricular reform, embedding sciences in culture, improvement of marketing and admission approaches, assessment of the contribution of the arts and humanities to national and international economies as well as adopting a competence and market-based approach.

Подъем протекционизма в политике США и ЕС: как это повлияет на Восточную Азию?

Global political economy has been experiencing a new normal period through the COVID-19 pandemic and theUkraine War since Jan. 2020. At the same time, the trade conflict between the USA and China has been continuingsince the Trump Administration and even expanding to the technology conflict under the Biden Administration thathas enhanced protectionism in the world trade. Due to these conflicts, discussions on de-globalization or re-globalizationare raised. The two expected or unexpected historical events have resulted in a long wave of high inflation,energy and food crises, disorder of global supply chains etc. in the global economy, which is known as a new normalera shifted from low inflation, well-functioning global supply chains (GSCs) based on division of labor. In order tostrengthen its economic and political leadership, the Biden government has upgraded the Trump’s America FirstPolicy to the Made in America Policy based on Chips and Science Act (CSA) and Inflation Reduction Act (IRA),which represent a new era of protectionism. In parallel, the EU has also considered to impose Net Zero Industry Act(NZIA) and other Acts. The research hypothesis is that protectionism in the name of economic security generatesinstability of the world trade. Its result may be negative impacts of some East Asian economies. This paper aims toanalyze the new trend of protectionism in the USA and the EU. It also focuses on impacts of protectionism on EastAsia in general and South Korea in particular.

Staatswissenschaften and the Mathematical Policy Science of Jan Tinbergen

The rise of mathematical economics is typically understood as a fundamental shift in the language and technique of economic theorizing. This article argues that an examination of Tinbergen's work demonstrates that a similar “mathematical” turn occurred in economic policy. This article contextualizes Tinbergen's professional career at the Dutch Central Bureau of Statistics and his early policy-oriented contributions as exemplified by the applied policy reports that he wrote between 1931 and 1936. His econometric work, including his seminal 1936 model of the Dutch economy and the closely related League of Nations model of the US economy, was rooted in his vision that business cycle research functioned in the service of the state. His work was aimed not at uncovering fundamental or structural relationships in the economy but at practical interventions in the economy by a state that developed control over new instruments of macroeconomic management. As such it can be and has been analyzed as an important contribution to economics as an engineering science. But this article demonstrates that Tinbergen also explicitly depicted the economy from the perspective of the policymaker and that he was attentive to the changing institutional order of the national and international economy. Tinbergen's work in this respect owed a great deal to the more political-economic tradition of German Staatswissenschaften than is typically acknowledged.

Artificial Intelligence as Promoting Effect on International Economic Relations

Artificial intelligence is one of the most cutting-edge fields in today's era, which is triggering a systematic transformation in human production and life worldwide, and has a great impact on international economic relations. In the short term, this disruptive technology will lead to changes and upgrades in industrial structure, a decrease in production costs, changes in international cooperation methods, resource allocation, and a redistribution of economic relations. In the long run, this metaphysical phenomenon based on human will challenge human self-awareness and identity. Different countries and social groups' predictions of the disruptive progress of artificial intelligence will lead to fierce competition and will reconstruct the international economic landscape on this basis.

Sources of the European Union's regulatory influence on digital platform firms: Lessons from three Google antitrust cases

AbstractVarious studies have highlighted the considerable regulatory influence of the European Union (EU) on digital platform (DP) firms. However, the role of stakeholders in individual competition cases remains underexplored. To fill this gap, this article draws on the conceptual framework of Market Power Europe and contends that the main sources of the European Commission's influence in this field are not only the EU's market size and regulatory capacity but also relevant market information provided by stakeholders such as consumer groups, business associations, and the target firm's competitors. Market information helps the Commission alleviate the problem of information asymmetry and effectively regulate complex and fast‐moving areas such as DP markets. A close analysis of three Google antitrust cases concluded between 2017 and 2019 provides initial empirical evidence supporting this conclusion. Overall, this study contributes to the literature on EU competition policy and greater understanding of the global political economy in relation to DP firms.

Geoeconomic Dynamics in a New Economic Global Order from West to East

Abstract The global economic landscape is in a state of flux, with the COVID-19 pandemic starkly highlighting the interdependent yet unequal and unstable nature of the global political economy. Moving beyond traditional geopolitical considerations of conflict, state-centricism, and security concerns, the current environment is witnessing the emergence of new hegemonic rivalries involving established, rising, and aspiring powers. This shift is not merely theoretical but practical, characterized more by geoeconomic dynamics than traditional geopolitical factors. Moreover, we attribute the diversity in state strategies to a blend of the network's structural design, on one hand, and the domestic institutions and norms of states seeking to leverage these network structures, on the other hand. The full exploitation of the advantages of weaponized interdependence is reserved for states with physical or legal control over hub nodes. Entities possessing such power currently include the United States, the European Union, and, increasingly, China, all these being, capable to enjoy the benefits of weaponized interdependence, even though other actors may still play influential roles. This research investigates the origins, outcomes, and key players shaping geoeconomics on a global scale within the context of a transforming global order. The often-mentioned normative force in foreign policies of the EU, the largest singularly unified economic area worldwide, tends to be overshadowed by its lack of homogeneity and perspective diversity. This gap is filled by emerging regional and global powers. Furthermore, Argentina's decision not to join the group starting from 2024 raises the question which side tends to gain majority within Western vs. Eastern challenge: whether the discounted Argentina or the newly included top oil exporters Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates.