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1. Immigration and Offshoring: Two Forces of Globalisation and Their Impact on Employment and the Bargaining Power of Occupational Groups

Author:
Michael Landesmann and Sandra Leitner
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper estimates conditional demand models and, using a joint approach for the period 2008-2017, examines the impact of immigration and different measures of offshoring on the labour demand and demand elasticities of native workers in four different types of occupational groups: managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted using data for four EU economies: Austria, Belgium, France and Spain. Our results point to important and occupation-specific direct and indirect effects of immigration and offshoring. Both offshoring – particularly services offshoring – and immigration have negative direct employment effects on all occupations, but native clerks and manual workers are affected the most, and native managers/professionals the least. Generally, offshoring exerts a stronger direct negative employment effect than does immigration. Our results also identify an important (labour demand) elasticity-channel of immigration and offshoring and show that some groups of native workers can also actually gain from globalisation through an improvement in their wage-bargaining position. Overall, our results indicate a deterioration in the bargaining power of native manual workers arising from both immigration and offshoring; an improvement in the bargaining position of native craft workers in the case of both immigration and offshoring; and an improvement in the bargaining position of native clerical workers and managers/professionals in the case of offshoring only. Finally, our analysis of the cross-effects of immigration highlights the important role of migrant managers/professionals for the labour demand and demand elasticities (bargaining power) of native clerical workers, craft and manual workers.
Topic:
Globalization, Labor Issues, Immigration, Employment, and Work Culture
Political Geography:
Europe, France, Belgium, Spain, and Austria

2. Resisting deglobalisation: the case of Europe

Author:
Zsolt Darvas
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Global trade and finance data indicates that the pre-2008 pace of economic globalisation has stalled or even reversed. The European Union has defied this trend, with trade flows and financial claims continuing to grow after the recovery from the 2008 global economic and financial crisis. Immigration, including intra-EU mobility, has also continued to increase.
Topic:
Globalization, Immigration, European Union, Finance, Economic growth, Global Financial Crisis, and Trade
Political Geography:
Europe

3. Globalization Paradox and the Coronavirus Pandemic

Author:
Remco van de Pas
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The global scale of the coronavirus (Covid-19) pandemic and its response is unprecedented. This Clingendael Report applies Dani Rodrik’s framework of Globalization’s political trilemma to analyze the current response to the pandemic. In the aftermath of the 2008 financial crisis he argued that any recovery measures would have to balance off state power with economic integration and democracy. Based on values of democratic governance and human dignity this report charts principles on how to move forward beyond the emergency phase into recovery from the Covid-19 pandemic. The report makes a plea to Dutch and European policymakers for safeguarding and upholding democratic values in the response to and recovery of the Covid-19 emergency. The political trilemma indicates that a renewed primacy of state sovereignty, combined with hyper-globalization being on the defense, requires political resistance and bold choices to uphold democratic governance principles for the urgent and difficult policy actions required during the recovery. The momentum is now to act and uphold a united European solidarity response and leadership. If the EU fails to do so, it risks disintegration and marginalization in a volatile multi-polar global order. Covid-19 is not merely a ‘crisis’ that will pass by. This is a new permanence that requires a redefinition of the European social contract while recognizing its interconnectedness with the rest of world.
Topic:
Globalization, European Union, Pandemic, and COVID-19
Political Geography:
Europe and Global Focus

4. The post-coronavirus world is already here

Author:
Josep Borrell
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
European Council On Foreign Relations
Abstract:
The pandemic will likely magnify existing geopolitical dynamics and test the strength of Europe’s democratic systems. Europe needs a new kind of globalisation capable of striking a balance between the advantages of open markets and interdependence, and between the sovereignty and security of countries. Europe should work to prevent the US-China rivalry from having negative repercussions in certain regions of the world – particularly Africa. European leaders need to focus on meeting the immediate needs of healthcare systems, providing an income for people who cannot work, and giving businesses guarantees. The European model will only mean something in the eyes of the world if we can successfully promote solidarity among EU member states.
Topic:
Globalization, Geopolitics, Coronavirus, Pandemic, COVID-19, and Health Crisis
Political Geography:
Africa, China, Europe, and United States of America

5. Covid-19 calls for European strategic autonomy: The EU needs to manage global dependencies without pulling up the drawbridges

Author:
Niklas Helwig
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Covid-19 has revealed the risks of Europe’s global dependencies in strategic sectors and intensified the debate on European strategic autonomy. While some argue for a self-sufficient Europe, a smart approach to globalization is in the EU’s interest.
Topic:
Globalization, Public Health, Pandemic, and COVID-19
Political Geography:
Europe

6. The Power to Engage: Giving Punch to a new EU Global Strategy 2020

Author:
Sven Biscop
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
I like being a policy-oriented academic: you meet lots of interesting people and you are invited to interesting meetings, so you can really contribute to the debate. Some actors may from time to time think you have an appealing idea, and they may even seek some academic legitimacy for their decisions. But you are of course not present when the actual decisions are being taken. It’s my job and I love it – but this is not the role that the EU itself should play. Europe does not aspire to be the world’s policeman, but it cannot just be the world’s professor either. As the new EU leadership is coming in, we must give punch to our strategy, and make sure we have the power to make our ideas work in the real world. Power, not to confront, but to engage the world.
Topic:
Globalization, Regional Cooperation, European Union, Leadership, and Police
Political Geography:
Europe

7. Fostering Europe’s Strategic Autonomy - A question of purpose and action

Author:
Giovanni Grevi
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
European Policy Centre
Abstract:
Strategic autonomy is about empowering Europe, not disengaging from partnerships, globalisation or multilateralism. The core of strategic autonomy is not that Europeans should act alone, but that they should have a purpose of their own, and a stronger power base to fulfil that purpose through cooperation with others whenever possible, or on their own, if needed. As such, strategic autonomy is not a condition to be achieved once and for all, but a mindset and a process, guiding initiatives across multiple areas. By advancing its strategic autonomy, Europe should acquire a stronger position to manage interdependence amidst geopolitical competition – arguably the defining challenge of our times. The concept has become central to a number of statements by EU and national leaders, and to important EU policy documents. Although the level of ambition and requirements for progress differ across policy areas – from trade and investment to innovation, the single market or security and defence – and are the subject of ongoing debate, an EU strategic narrative is emerging alongside current or envisaged policy measures and initiatives. These policy developments point to three main tracks of action, or dimensions of Europe’s strategic autonomy, namely bracing against threats and challenges, empowering Europe by joining forces and engaging others to strengthen a rules-based international order. Bracing. Europe needs to strengthen its resilience and political cohesion in the face of multi-dimensional competition. It needs to counter trade-distorting practices and unfair competition, while better enforcing the rules and obligations of EU trade agreements. Europe should also reduce its current overdependence on foreign technologies and companies, such as for 5G and data infrastructure, and Europeans should do more to secure their critical infrastructure against malicious practices or cyberattacks. Empowering. Europe is much more than the sum of its parts, even though it often performs as less than that because of disagreements among EU member states, or their reluctance to pool their resources. Completing and strengthening the Single Market is crucial to sustaining both Europe’s growth and the EU’s regulatory power. Eliminating current barriers within the Digital Single Market will be critical to spur innovation and scale-up European technology companies while creating a regime for data sharing and access that benefits all market actors and citizens. To both deliver the capabilities that Europeans need and acquire a real operational capacity, EU member states should make full use of the arrangements for defence cooperation established in the last few years, on the basis of a better-defined set of shared goals. Engaging. The purpose of shaping and supporting a rules-based international order should continue to drive Europe’s foreign policy, even though Europeans will need to take a pragmatic approach in a context of geopolitical competition. The election of Joe Biden paves the way to dialogue and cooperation with the US, and to reinforcing the transatlantic partnership and multilateralism.
Topic:
Globalization, Geopolitics, Multilateralism, and Strategic Autonomy
Political Geography:
Europe

8. Turning away from globalization? Trade wars and the rules of competition in global trade: Implications for the EU

Author:
Jan J. Michałek and Przemyslaw Wozniak
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The trade war between the U.S. and China began in March 2018. The American side raised import duties on aluminum and steel from China, which were later extended to other countries, including Canada, Mexico and the EU member states. This drew a negative reaction from those countries and bilateral negotiations with the U.S. In June 2018 America, referring to Section 301 of its 1974 Trade Act, raised tariffs to 25% on 818 groups of products imported from China, arguing that the tariff increase was a response to years of theft of American intellectual property and dishonest trade practices, which has caused the U.S. trade deficit. Will this trade war mean the collapse of the multilateral trading system and a transition to bilateral relationships? What are the possibilities for increasing tariffs in light of World Trade Organization rules? Can the conflict be resolved using the WTO dispute-resolution mechanism? What are the consequences of the trade war for American consumers and producers, and for suppliers from other countries? How high will tariffs climb as a result of a global trade war? How far can trade volumes and GDP fall if the worst-case scenario comes to pass? Professor Jan J. Michałek and Dr. Przemysław Woźniak give answers to these questions in the mBank-CASE Seminar Proceeding No. 161.
Topic:
Globalization, European Union, Economic growth, and Trade
Political Geography:
China, Europe, and United States of America

9. Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains

Author:
Amat Adarov and Robert Stehrer
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In the age of globalisation, international trade and foreign direct investment (FDI) have become integral elements of cross-country production sharing. In this paper we empirically assess the impact of FDI, as well as capital dynamics and structure, on the formation of global value chains (GVC) and trade in value added at country and sectoral levels based on a database constructed for a sample of European countries over the period 2000-2014. The analysis reveals that inward FDI is especially conducive to the formation of backward linkages while outward FDI facilitates forward GVC participation, especially in high-tech manufacturing sectors. A particularly robust influence of FDI and capital accumulation on GVC integration is identified in the textile and clothing industry. While capital accumulation in general intensifies GVC linkages for most sectors, ICT capital appears to be especially instrumental for backward integration of electrical and transportation equipment sectors.
Topic:
Globalization, International Trade and Finance, Foreign Direct Investment, Trade, and Global Value Chains
Political Geography:
United States, Japan, and Europe

10. Imitation, innovation, disruption: challenges to NATO's superiority in military technology

Author:
Andrea Gilli and Mauro Gilli
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
NATO Defense College
Abstract:
Analysts, academics and observers are worried that NATO countries may lose their industrial leadership in defence production. Globalization and advances in communications are widely believed to enable enemies and adversaries alike to copy NATO countries’ state- of-the-art weapon systems, and possibly even surpass them by developing next-generation weapon systems. Moreover, so-called disruptive technologies like artificial intelligence, quantum computing and additive manufac- turing are believed to offer cheaper and less technologi- cally demanding options to countries that do not possess the decades’ old defence industrial base of NATO coun- tries. These countries could then use such new technolo- gies for weakening NATO force structure. These concerns are real and deserve close scrutiny. However, adversaries and competitors still face signif- icant challenges which are more insidious than those NATO countries are facing. Because of the complexity of modern technology, imitation, innovation and disruption in armaments production have become increas- ingly demanding over the past decades – especially for naval and aerial platforms intended to operate in com- petitive environments. For NATO this implies more tar- geted defence investments and exploitation of industrial specialisation across the Alliance, as well as experimen- tation and innovation with new technologies to favour their future integration into the NATO force structure.
Topic:
Defense Policy, NATO, Globalization, Regional Cooperation, Science and Technology, and Military Strategy
Political Geography:
Europe, North Atlantic, and North America