This paper analyzes the evolution of the structure of the chemical industry in the US, Europe, and Japan. Differences in institutions, historical conditions, and resource endowments across the three regions reinforce differences in initial conditions. However, technological innovation, the internationalization of the industry, and the development and operation of markets, especially markets for technology, capital, raw materials, and corporate control, are powerful forces encouraging convergence. Convergence is less marked at the level of the firm than at the level of the industry, and is more marked between the industries of Western Europe and the United States.
Germany's foreign economic policy places enormous weight on formal European institutions. In contrast, Japan has not had an institutionalist orientation in regard to its East Asian neighbors. This paper addresses the question of why Germany and Japan differ so greatly on this issue of regional economi. institutions. It suggests that the differences observed in German and Japanese interests in regard to such arrangements constitute a puzzle if they are examined from the perspective of liberal ideas about the functional bases of international collaboration, or from the viewpoint of realist propositions about hegemony and cooperation and about the impact of polarity on state preferences. The paper also puts forward a realist-inspired analysis (focusing on American power in the post-Cold War era as well as American national strategy in the early years of that conflict) that might help account for the strong German bias in favor of regional economic institutions and the equally pronounced Japanese aversion to date for such arrangements.
Topic:
Foreign Policy, Cold War, and International Organization
Political Geography:
United States, Japan, America, Europe, Israel, East Asia, Asia, and Germany