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Begin New Search Topic International Trade and Finance Publication Year within 5 Years

51. Blowback: The Effect of Sanctions on Democratic Elections

Author:
Matthieu Crozet and Julian Hinz
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Sanctions are meant to coerce political adversaries through economic measures. However, evidence for their effectiveness is scarce. In this paper we assess the impact of sanctions on a democracy — France — by studying the electoral consequences of the sanctions and countersanctions imposed between Russia and Western countries. Contrary to most of the existing literature we find clear evidence for exposure to the sanctions to cause an increase in the vote share for pro-Russian (and far-right) candidates during the French 2017 presidential election. Locally, the impact on voting is substantial. Back-of-the-envelope calculations indicate that about 16,300 votes for the main far-right candidate can be directly attributed to the sanctions’ impact. This is the total number of votes cast in a medium-sized French city. It is however not nearly enough to have affected the outcome of the election at the national level.
Topic:
Globalization, International Trade and Finance, Sanctions, and Elections
Political Geography:
Russia, Europe, and France

52. Who is to suffer? Quantifying the impact of sanctions on German firms

Author:
Holger Görg, Anna Jacobs, and Saskia Meuchelbock
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In this paper, we use a novel firm level dataset for Germany to investigate the effect of sanctions on export behaviour and performance of German firms. More specifically, we study the sanctions imposed by the EU against Russia in 2014 in response to the annexation of Crimea and Russia's countermeasures. We find a substantial negative effect on both the extensive and intensive margin of German exports. While the negative effects are strongest for firms exporting products subject to trade restrictions, we provide further evidence on the indirect effects of sanctions. Analysing the impact on broader measures of firm performance, we document that the cost of sanctions is heterogeneous across firms but overall modest. Our results reveal that the negative impact of the shock was concentrated primarily among a small number of firms that were highly dependent on Russia as an export market and those directly affected by the sanctions.
Topic:
Foreign Policy, Globalization, International Trade and Finance, Sanctions, Russia-Ukraine War, and Firm Dynamics
Political Geography:
Russia, Europe, and Germany

53. Africa’s Businesswomen – Underfunded or Underperforming?

Author:
Charles Ackah, Holger Görg, Aoife Hanley, and Cecília Hornok
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
While the recent success of Africa’s ‘Lionesses’ – successful female entrepreneurs - is internationally celebrated, less is known about how liquidity can fuel the success of the ‘Lionesses’ and other businesswomen. Using information from a panel of over 800 male- and female-owned businesses in Ghana (ISSER-IGC survey), we capture a measure of underfunding, in addition to data on supplier credit, equity and other finance sources. Our regressions reveal a female-to-male productivity gap of between -11 to -19 percent, values similar to estimates for other African countries. However, when the relationship between gender and productivity is mediated by financial constraints, the gender performance gap disappears. Accordingly, female business-owners who indicate that funding is not a problem, are associated with higher productivity than males, all things equal. In a finding new to the literature, our regressions reveal the importance of supplier credit for Africa’s businesswomen.
Topic:
Globalization, International Trade and Finance, Women, Business, Productivity, and Liquidity
Political Geography:
Africa and Ghana

54. Rewriting the Future of America’s Maritime Industry to Compete with China

Author:
Michael Roberts
Publication Date:
10-2023
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
For decades, companies outside the United States have dominated the international commercial shipping and shipbuilding industries. At various times since World War II, Japan, Korea, and certain European countries have been able to leverage their export-driven manufacturing economies and government support to become world leaders in commercial shipbuilding and major players in international shipping. The People’s Republic of China (PRC) has taken that strategy to a new level and now produces more than half the large commercial ships delivered annually, controls scores of seaports in dozens of foreign countries, and owns almost one-fifth of the global commercial fleet. American commercial shipbuilders and US flag shipping companies have long faced fierce headwinds in international markets and have seen support from the US government dwindle. The US reset its maritime policies in the 1990s when America was the sole superpower and the security benefits of a robust commercial maritime industry were in doubt. By the end of 2022, Americans owned only 3 percent of the 55,000 ships in the global commercial fleet, including just 178 large US flag cargo ships, 85 of which are committed to international trade (see tables 1 and 2 below for a breakdown of US and global commercial fleets). The emergence of the PRC as a challenger to America’s global leadership has forced sweeping changes in US policy and spending priorities to boost America’s economic and military security. This report recommends that the US reform its policies governing America’s commercial maritime industries because shipping and shipbuilding are core components of national power. These industries remain especially crucial in the twenty-first century, as international trade is more important to a healthy American economy today than ever before. Yet Americans have almost no control over the maritime logistics systems that feed the US economy. The pandemic-induced supply chain crisis showed how much damage can be done when those systems break down.
Topic:
International Trade and Finance, National Security, Maritime, Industry, Domestic Policy, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

55. The power of control: How the EU can shape the new era of strategic export restrictions

Author:
Tobias Gehrke and Julian Ringhof
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Technology is increasingly a battleground in the strategic competition between the US and China. Western technology contributes to China’s military modernisation as well as the development of Russian weapon systems. The US is restricting trade in key technologies with China and pushing EU member states to follow its lead. To better defend its interests, the EU needs to develop clearer policies on China and security, including pursuing the ‘de-risking’ of its relations with Beijing. The EU must develop a new strategic technology doctrine and upgrade its export control policy. This more coherent stance will enable the EU both to act where necessary but also to defend itself and its member states from future pressure from China – and the US.
Topic:
Security, International Trade and Finance, European Union, and Exports
Political Geography:
China, Europe, and United States of America

56. EU-Pacific Talks: Trade relations with the Indo-Pacific

Author:
Eliška Prostřední
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
Overall, the debate focused on the diversification of global trading partners and how to achieve it. Speakers also discussed the threats associated with dependence on only a few strong countries, which can then take the position of rule makers. The whole debate was linked to the possibilities of global trade with countries that are part of the Indo-Pacific region. Writes Eliska Prostřední in her report on the debate "EU-Pacific Talks: Trade relations with the Indo-Pacific".
Topic:
International Trade and Finance, Partnerships, Diversification, Trade, Debates, and Economic Dependence
Political Geography:
Europe and Indo-Pacific

57. Building Worker Power in Global Supply Chains: Lessons from Apparel, Cocoa, and Seafood

Author:
Judy Gearhart
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
This working paper is about the campaigners and worker organizers in the global South and North who have challenged the persistent lack of government and corporate accountability for workers’ rights in the apparel, cocoa, and seafood industries. The transnational coalitions that have formed across these and other industries have driven significant innovations in global supply chain governance and reshaped international trade and development policies. This paper documents and draws lessons from the transnational organizing that has enabled these groups to sustain coalitions over many years, evolve their strategies and tactics for challenging power holders, and strengthen the influence of national global South organizers.
Topic:
Development, International Trade and Finance, Governance, Cocoa, Labor Rights, Supply Chains, Textile Industry, and Seafood
Political Geography:
Global South and Global North

58. Mapping the Indian Ocean Region

Author:
Darshana M. Baruah, Nitya Labh, and Jessica Greely
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The Indian Ocean region has been an important trade arena for centuries. Today, it remains critical to the security and stability of shipping lanes and trade routes, accounting for over one-third of the world’s bulk cargo traffic and two-thirds of the world’s oil shipments and ensuring global access to food, precious metals, and energy resources.1 Stretching from Africa’s eastern coast to Australia’s western coast, the region is home to thirty-three nations and 2.9 billion people. Given the region’s importance, many countries around the world work with regional partners to maintain open access to the Indian Ocean’s critical waterways and natural resources. For decades, the Indian Ocean region has been erroneously studied through the continental divisions of Africa, the Middle East, and South Asia. But to understand the true importance and strategic advantages of the region, it must be viewed as one continuous theater. The Carnegie Endowment for International Peace’s Indian Ocean Strategic Map does just that.2 Developed by Carnegie’s Indian Ocean Initiative, the map provides a coherent, continuous, and data-driven understanding of the players, security challenges, and other factors that shape the region (see figure 1). The first of its kind, it shows how the Indian Ocean’s economic, political, military, and geographic features interact to create a single geopolitical arena. This paper complements the map, further analyzing the areas of interest and contextualizing them within the current geopolitical environment. The first section summarizes the key players, both traditional and emerging, in the region. The second section examines the evolving security situation, including sovereignty disputes, climate impacts, illegal fishing, search and rescue zones, and choke points. The third section reviews the region’s economics, trade patterns, and oil flows. The fourth section assesses how regional organizations and multilateral partnerships enforce maritime laws and craft protocols.
Topic:
Security, Foreign Policy, International Trade and Finance, Geopolitics, Economy, Strategic Competition, and Regional Organizations
Political Geography:
South Asia, India, Australia, and Oceania

59. A Forward-Thinking Approach to Open Strategic Autonomy: Navigating EU Trade Dependencies and Risk Mitigation

Author:
Matthias Bauer, Oscar du Roy, and Vanika Sharma
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
For the EU, fostering economic interdependence is a more proactive and forward-thinking approach than resorting to defensive measures like eliminating alleged economic dependencies through restrictive regulations, as such actions would negatively impact Member States’ economies. The European Commission and some Member State governments keep pushing for “EU Open Strategic Autonomy”. Several EU laws have already been infused with the concept, resulting in a broad spectrum of EU interferences in production, trade, and investment in the Member States. With the “Resilient EU2030 Report on Open Strategic Autonomy”, the Spanish Presidency of the Council of the EU in September 2023 presented a new roadmap for how to further reduce external dependencies and strengthen EU technological leadership.[1] Similarly, implementing the EU’s Economic Security Strategy initiative, the European Commission presented a list of 10 critical technology sectors aiming to reduce potential economic dependencies and the risk of economic coercion.[2] This paper shows that EU claims about trade dependencies are not supported by trade data. Except for only few products, such as minerals and energy commodities, there are no critical dependencies on products and services imported from outside the EU. Regarding technology leadership, financial transfers for intellectual property rights indicate that EU businesses and public sectors institutions are benefiting much from advanced foreign technologies and innovation. Many if not most of these technologies are crucial for the EU’s international competitiveness, and they cannot easily be replaced by native EU production. At the same time, the EU is a significant exporter of technologies, including ICT and digitally enabled services that are not easily replaceable by non-EU countries. Policymakers should acknowledge the presence of these mutually beneficial interdependencies, as they can act as a hedge against risks like policy-induced disruptions in value chains and economic coercion. EU policymaking needs to recognise that trade and investment interdependencies, which include advanced technologies, are unavoidable. Trade interdependencies are critically important for maintaining competitive economies and high living standards in the EU. To mitigate potential risks, the EU should promote trade and investment relationships with trustworthy and like-minded partners, such as the US and OECD countries. EU policymakers should leverage trade interdependencies by increasing the competitiveness of EU exports, which act as a safeguard against dependency and the risk of economic coercion. Rather than limiting imports, the EU and Member State governments should initiate supply-oriented structural reforms to enhance the capacity and efficiency of production factors within the EU, which would ultimately bolster Europe’s export performance.
Topic:
International Trade and Finance, Treaties and Agreements, European Union, and Strategic Autonomy
Political Geography:
Europe

60. Good Practices in the Provision of Global Public Goods: How multilateral development banks build on global public goods in their operations

Author:
Johanna Neuhoff and Hannah Zick
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
In our flagship report, ‘Multilateral Development Banks for Global Public Goods’, commissioned by Deutsche Gesellschaft für Internationale Zusammenarbeit on behalf of the German Federal Ministry for Economic Cooperation and Development, Oxford Economics highlighted the positive role that the use of GPGs can play in preventing and addressing crises that cross national boundaries. As part of that work, we wanted to identify and share promising practices and good examples of how the provision of GPGs can be supported through international funding—and in particular through MDBs. We gathered a longlist of 99 examples of MDBs supporting GPG provision based on comprehensive desk research and interviews with over 30 key actors in the realm of project development. From this, we selected 20 case studies to carry out “deep dive” research to showcase good practices of provision of GPGs by MDBs based on whether the intervention: benefitted not only people inside the country of implementation but also beyond the country’s borders; supported the implementation of framework conditions that change the incentive structure for the provision of GPGs; could be replicated in other countries; and rated a good practice in reports or named a good practice by interview partners from MDBs. As a result, we gathered examples of GPG projects supported by MDBs and multilateral institutions at the country level that might not have been intended to only support GPG provision—such as those GPG projects mostly financed via Trust Funds and FIFs—but which also produced high GPG effects by maximising the synergies between national and global benefits. The case studies are designed to inform stakeholders from MDBs and receiving countries involved in the programming and project designing of development cooperation alike. The case studies showcase promising and highly replicable ways of supporting the provision of GPGs in the MDBs’ country engagement—considering both national and cross-country benefits of an intervention. Furthermore, valuable lessons can be learned on the institutional set-up, financing, quantification etc. concerning the support of GPGs by MDBs. They include examples of projects in sub-Saharan Africa, East Asia & Pacific, Latin America and the Caribbean, and South Asia, and which covered issues such as climate and the environment, global public health, peace and security, financial resilience, and a fair international trading system. In a synthesis report, we set out 12 recommendations to organisations implementing GPGs to ensure they maximise the benefits on the ground, based on our findings from the analysis of the case studies. These range from using cost-benefit analysis and focusing on projects with high cross-country benefits to helping coordination of in-country provision and encouraging regional learning.
Topic:
Climate Change, Development, Environment, International Trade and Finance, Institutions, Public Health, and Multilateral Development Banks (MDBs)
Political Geography:
South Asia, East Asia, Germany, Latin America, Caribbean, Asia-Pacific, Global Focus, and Sub-Saharan Africa