Search

Begin New Search Topic Globalization

111. Technical Barriers to Trade and the Performance of Indian Exporters

Author:
Pavel Chakraborthy and Rahul Singh
Publication Date:
08-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We study the effects of technical barriers to trade (TBTs) imposed by destination markets on prices, marginal costs, and markups of Indian manufacturing exporters. Using detailed firm-product-level data on prices and production from PROWESS, we first identify the underlying component of prices (i.e. marginal costs and markups), and use those as our outcomes of interest in the second stage. We find that (i) introduction of TBTs by importing countries increases marginal costs by 5% and prices by 4%, (ii) there is considerable heterogeneity based on exporters’ initial productivity, (iii) productive exporters (those belonging to the lower deciles) experienced an increase in marginal costs and decrease in markups compared to low productivity exporters, and (iv) overall effects are driven by private firms (both domestic and foreign) belonging to intermediate input industries.
Topic:
Globalization, International Cooperation, International Trade and Finance, and Exports
Political Geography:
India and Asia

112. Effective Rates of Protection in a World With Non-Tariff Measures and Supply Chains: Evidence from ASEAN

Author:
Ben Shepherd
Publication Date:
08-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The concept of effective rate of protection expresses protection on a sector’s final output relative to protection affecting its inputs. As such, it is well adapted to analysing the effects of trade policy from a supply chain standpoint. This paper makes two contributions to the literature on effective rates of protection. First, it draws on the literature on trade in value added to highlight an alternative to the traditional measure that better accounts for supply chain trade by considering both direct and indirect input use. Second, it includes data on ad valorem equivalents of non-tariff measures, which are increasingly important as trade policy instruments. In an analysis covering 17 aggregate goods sectors, I find that average tariff only effective rates of protection in ASEAN averaged 6.9% and ranged from zero to 23.4% in 2018. By contrast, effective rates including non-tariff measures averaged 14.0% and ranged from –6.2% to 44.0%. While patterns of escalation and even effective taxation differ substantially across sectors, most countries practice a tariff and NTM trade policy that is broadly neutral between input and output sectors, but which causes low to moderate isolation from world markets. Given the complexity of tariffs and NTMs from a supply chain perspective, there would likely be reductions in economic waste accompanying substantial simplification.
Topic:
Economics, Globalization, International Cooperation, International Trade and Finance, Protectionism, Non-Tariff Measures, and Supply Chains
Political Geography:
Asia and Southeast Asia

113. The Trade Restrictiveness Index and Its Impact on Trade Performance in Selected East Asian Countries

Author:
Norlin Khalid, Muhamad Rias K.V. Zainuddin, Tamat Sarmidi, Sufian Jusoh, Faliq Razak, and Mohd Helmi Ali
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper aims to investigate the effect of non-tariff measures (NTMs) on trade in selected East Asian countries. In doing so, we first estimate the ad valorem equivalent (AVE) of NTMs and construct an augmented trade restrictiveness index (ATRI) by measuring the overall external regulations imposed by importing countries. Second, we analyse the effect of the AVE and trade restrictiveness index (TRI) of importing nations on the exports of various sub-sector products for each country in selected East Asian countries. Based on a standard gravity model framework, we perform a Poisson pseudo maximum likelihood (PPML) regression at the sectoral level (Harmonized System 2-digit) for total exports and major sub-sectors (agri-food, health, logistics, and manufacturing). The findings show that the ATRI has a negative and significant relationship towards bilateral exports for total exports, manufacturing, and logistics sub-sectors. The negative impacts of the ATRI also highlight that trade barriers play a significant role in bilateral exports. NTM restrictions (proxied by the calculated AVE of NTMs) imposed by importing countries have mixed results for technical and non-technical measures. Where technical measures have negative and significant impacts on bilateral exports for total exports, manufacturing, and health sub-sectors. This implies that implementation of technical NTMs such as sanitary and phytosanitary (SPS) and technical barrier to trade (TBT) measures in importing nations adversely affect bilateral exports for these sub-sectors. This is in line with our hypothesis, as exporters may face difficulties in meeting the current NTM specifications, leading to lower bilateral exports. In addition, the results show that most trade agreements have a positive and significant relationship with ASEAN and East Asia countries’ bilateral exports, suggesting that free trade agreements enhance trade between countries.
Topic:
Economics, Globalization, International Trade and Finance, and Non-Tariff Measures
Political Geography:
East Asia and Asia

114. The Global Economic Impact of the COVID-19 Pandemic: The Second Wave and Policy Implications

Author:
Gyeong Lyeob Cho, Minsuk Kim, and Yun Kyung Kim
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the macroeconomic impact of the COVID-19 pandemic through the Computable General Equilibrium model. Due to a second wave and a subsequent delay in economic recovery, the pandemic could lead to a permanent shock in capital accumulation and productivity. This implies that the shock may not merely affect the short-term growth rate but also negatively impact the future economic growth path from its pre-pandemic trend. Through simulations, in the mild scenario, countries lose 0.10% to 0.31% of their future economic growth rates; in the severe scenario, they lose 0.21% to 0.69%.
Topic:
Economics, Globalization, International Trade and Finance, Public Health, Pandemic, and COVID-19
Political Geography:
Global Focus

115. Robustness and Resilience of Supply Chains During the COVID-19 Pandemic: Findings from a Questionnaire Survey on the Supply Chain Links of Firms in ASEAN and India

Author:
Yasuyuki Todo, Keita Oikawa, Masahito Ambashi, Fukunari Kimura, and Shujiro Urata
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using a unique firm-level data set from the Association of Southeast Asian Nations (ASEAN) and India collected from November 2020 to February 2021, this paper examines how the robustness and resilience of supply chain links – i.e. maintaining links and substituting another for a disrupted partner, respectively – were determined when firms faced economic shocks due to the spread of the coronavirus disease (COVID-19). Focusing on the role of the characteristics of firms’ supply chains, we find that homophily, i.e. the tendency to form a group with similar agents, was often associated with the robustness of supply chain links, most likely because of the strength of homophilous ties. In particular, when a foreign-owned firm had a supply chain link with a firm located in the same country as its home country, the link was quite robust. We also find that the geographic diversity of customers and suppliers creates resilience of supply chains. When the demand or supply from a partner of a firm was disrupted because of COVID-19, the firm likely mitigated the damage from the disruption through substitution of partners if its supply chains were well diversified across countries. In addition, larger or younger firms tended to be resilient and robust. The robustness and resilience of supply chains are found to have led to higher performance.
Topic:
Globalization, International Trade and Finance, Pandemic, Resilience, COVID-19, and Supply Chains
Political Geography:
India, Asia, and Southeast Asia

116. A Collapsing World?

Author:
György Schöpflin
Publication Date:
11-2021
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
Editor’s Note: American Diplomacy Journal asked several foreign policy commentators to address the significance of growing chaos in many parts of the world, as failed and failing states are increasingly unable to perform the fundamental functions of the sovereign nation-state. This is one of five articles looking at those concerns. Historically, the world always has been unstable. Colonialism, the Cold War and the Hyperpower decade (the 1990s) created an illusion of global stability. That moment has gone, hence strategies have to be reconfigured. Global connectivity, the autonomy of capital movement, the uneven spread of technology, the rise of resentful elites – resentful of the West’s hegemony – all combine to resist human rights, the democracy agenda, gender mainstreaming and much else dear to liberals. To complicate matters, two tiers of states have the capacity to resist liberalism. There are the civilisation states – China, Russia, India, which make up their own rules, and large regional powers each believed to be responsible for generating one percent of the world’s GDP. Brazil, Turkey, Mexico, Indonesia, South Africa are in this category. Japan is in a category of its own. Also relevant here is the economic success of non-liberal states as role models, Singapore, most obviously. This is very hard for the West to accept. The legacy of hegemony and empire live on, above all as a kind of low-grade civilising mission. Those who would thus be civilised do not take kindly to this at all. But they may be open to negotiation if treated with parity of esteem. Stability is not just a Western goal, though its definition can vary. The sense of superiority exists in the non-West just as much as in the West. There are non-Western civilising missions too.
Topic:
Diplomacy, Globalization, Political stability, and Crisis Management
Political Geography:
Global Focus

117. Thinking beyond Democracy and Freedom: A Post 9/11 War on Terrorism Scenario

Author:
Rana Eijaz Ahmad and Muhammad Sajid
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
This paper is going to explore the world beyond democracy and the shrouded concept of freedom. In the world of 'globalution' where revolution comes through Multinational Corporations and any specific form of government does not work but tolerance. Tolerance for this paper is all about respect for each other’s' ideology, opinion, and status. It makes us wise enough to make our surroundings a harmonized and liveable place. The dichotomous nature of societies demands space for each other. However, we humans are supposed to respect each other's existence without any specifications. We are just human beings instead of Confucianists, Communists, Capitalists, Hindus, Christians, and Muslims. Humans are born free but their specifications have made them intolerant towards each other. Tolerance is a basic ingredient of democracy, which is a means to an end, not an end itself. Freedom can only be observed with impositions and impositions are against the concept of freedom. Thus, this paper will conclude the outcome of the nature of the modern sovereign state system. It is teemed with liberalism (a mixture of liberalism and realism) and liberacantilism (a mixture of liberalism and mercantilism). Misinterpretations of the West have made certain errors during the post 9/11 socalled war against terrorism. These errors cumulatively transform terrorism into 'errorism'. This 'errorism' is bringing home the world that inequality and imbalances are occurring horizontally and vertically making this world disorder. Industrialization is going on in the West and the population is increasing in the rest, breaking the "iron cage of liberalism." It demands a glocal system of governance that could sustain people's co-existence at home and abroad. The triangulation method with primary and secondary sources would be used in the process of this research.
Topic:
Globalization, Democracy, 9/11, War on Terror, and Freedom
Political Geography:
Global Focus

118. The Economic Impact of Globalisation in Indonesia

Author:
Kiki Verico and Mari Pangestu
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the economic impact of globalisation in Indonesia from the end of the 1960s to date. The analysis found that globalisation generated a positive impact on Indonesia’s economic growth through the trade and investment channel; reduced wage inequality and child labour participation; and increased labour absorption, including women's participation in the labour market. Through the trade channel, globalisation also contributed to Indonesia’s productivity and structural economic transformation, benefited small and medium-sized enterprises (SMEs), contributed to poverty alleviation and reduced inequality, and increased trade in services such as tourism. Through the investment channel, there is evidence of the spillover effect of technology transfer, technology progress, improvement of the role of SMEs, and contribution to poverty alleviation. The waves of open and more restrictive trade and investment policies, which Indonesia has gone through in the last few decades, reflect the political economy reality – that is, the impact of globalisation is dynamic and only felt in the medium term, whereas the cost and potential negative impact is often felt more immediately throughout trade creation. The trade creation increases imports from countries with which free trade agreements have been negotiated, decreasing the domestic producer surplus. Since globalisation will create net benefits in the long run, Indonesia should continue its process of globalisation and integration with the world economy to ensure the net benefits and to move forward in its structural transformation, while managing the costs of globalisation and its transition process.
Topic:
Globalization, International Cooperation, International Trade and Finance, and Economic Growth
Political Geography:
Indonesia, Asia, and Indo-Pacific

119. 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 (EPC)
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

120. Four Years of Trump. The US and the World

Author:
Mario Del Pero, Paola Magri, Gary C. Jacobson, Michele Alacevich, Gabriella Sanchez, Scott L. Greer, Mario Del Pero, William F. Wechsler, and Erik Jones
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Unprecedented and unpredictable: this is how US President Donald Trump's administration has repeatedly been labelled. Beyond the frequent tweets and bombastic rhetoric, however, lie a more conventional four years, as the United States navigated an ever-evolving international reality, compounded by a global pandemic and one of the deepest economic recessions in over a century. This Report analyses the continuity and changes that occurred during Trump’s presidency. Domestically, it investigates the growing political polarization, the country's pre-pandemic economic performance, Trump's approach towards regular and irregular migration, and the US’ response to a healthcare emergency. At the international level, this volume looks at how the US stance has changed vis-à-vis China, the Middle East, and Europe. Which long-term trends has President Trump had to ride through? What was his trademark, and what might be his lasting legacy?
Topic:
Economics, Globalization, Immigration, European Union, Inequality, Economic Growth, Engagement, Donald Trump, COVID-19, Polarization, and Disengagement
Political Geography:
China, Europe, Middle East, North America, and United States of America