Capital Mobility, Trade, and the Domestic Politics of Economic Policy

1996 ◽  
pp. 79-107 ◽  
Author(s):  
Geoffrey Garrett
Keyword(s):  
Economic Policy ◽  
Capital Mobility ◽  
Domestic Politics

Kapitalmobilität in Europa aus empirischer Sicht. Befunde und wirtschaftspolitische Implikationen / Capital Mobility in Europe from an Empirical Viewpoint. Evidence and Implications for Economic Policy

2002 ◽  
Vol 222 (1) ◽  
Author(s):  
Andre Jungmittag ◽  
Gerhard Untiedt
Keyword(s):  
Economic Policy ◽  
Capital Mobility

ZusammenfassungDie hohe Korrelation zwischen nationalen Investitions- und Sparquoten ist seit der Studie von Feldstein/Horioka (1980) ein umstrittener, aber zunächst häufig bestätigter empirischer Befund. In diesem Beitrag wird dieser Zusammenhang erneut für die EU-Staaten im Zeitraum von 1960 bis 1997 untersucht. In Erweiterung der bisherigen Untersuchungen werden in unserer auf Zeitreihen basierenden Analyse für die Länder einerseits unterschiedliche Grade an Kapitalmobilität zugelassen und andererseits wird für die interessierenden Größen explizit zwischen den lang- und kurzfristigen Zusammenhängen unterschieden. Zusammenfassend ergeben sich die folgenden Schlußfolgerungen. Erstens bestehen in den EU-Staaten kaum langfristige Beziehungen zwischen den nationalen Investitions- und Sparquoten, sondern die beobachtbaren Korrelationen sind vielmehr der Ausdruck von Scheinkorrelationen zwischen trendbehafteten Variablen. Die Analyse der kurzfristigen Zusammenhänge sowie die sich daran anschließenden Strukturbruchüberprüfungen legen zweitens nahe, daß auch in diesem Fall für die EU-Staaten im untersuchten Zeitraum allgemein ein hoher Grad an Kapitalmobilität vorliegt, der häufig im Zeitablauf zunimmt.

Remodeling the Competition for Capital: How Domestic Politics Erases the Race to the Bottom

2004 ◽  
Vol 98 (2) ◽  
pp. 261-276 ◽  
Author(s):  
SCOTT J. BASINGER ◽  
MARK HALLERBERG
Keyword(s):  
Capital Mobility ◽  
Domestic Politics ◽  
Formal Model ◽  
Legislative Process ◽  
Direct And Indirect Effects ◽  
Policy Changes ◽  
Tax Reforms ◽  
Race To The Bottom ◽  
Political Costs ◽  
Capital Tax

This paper proposes and tests a new formal model of the competition for capital, using the analogy of a “tournament” as a substitute for the ”race-to-the-bottom” model. Our key insight is that political costs that accompany legislating have both direct and indirect effects on the likelihood and scale of reforms. While countries with higher political costs are less likely themselves to enact reforms, the presence of these costs also reduces competing countries' incentives to reform regardless of their own political costs. Domestic politics therefore mitigates the pressures for downward convergence of tax policy despite increased capital mobility. We examine the capital tax policies in OECD countries during the period from 1980 to 1997 and find that states are sensitive to tax reforms in competitor countries, although their responses to reforms are mediated by their own domestic costs to reform. We define two potential sources of political costs of reform: transaction costs, due to the presence of multiple veto players in the legislative process, and constituency costs, due to ideological opposition to policy changes that benefit capital. Our evidence reveals that a reduction in these costs either domestically or abroad increases the likelihood that a country enacts tax reforms.

Europeanization Compared: The Shrinking Core and the Decline of ‘Soft’ Power

2003 ◽  
Keyword(s):  
Economic Policy ◽  
European Integration ◽  
Soft Power ◽  
Domestic Politics ◽  
Public Policies ◽  
Shrinking Core ◽  
Key Policy ◽  
Domestic Reform

This concluding chapter summarizes the empirical findings of the volume's contributions on the polity, politics, and policy dimensions of Europeanization, with an emphasis on the implications of living with Europe in terms of Germany's power to project its institutional forms and policies; the balance between the enabling and constraining implications of European integration; and domestic contestation about European integration. The overall pattern of Europeanization is characterized by the contrast between progressively Europeanized public policies, a semi-Europeanized polity, and a largely non-Europeanized politics. This finding points to a dual agenda of domestic reform: one that enables Germany to regain its benchmark status in key policy domains – most centrally in economic policy – and one that addresses the apparent unresponsiveness of domestic politics to pressures of Europeanization.

Declining hegemony and assertive industrialization: U.S.-Brazil conflicts in the computer industry

1989 ◽  
Vol 43 (2) ◽  
pp. 207-238 ◽  
Author(s):  
Peter B. Evans
Keyword(s):  
Economic Policy ◽  
Domestic Politics ◽  
The United States ◽  
South American ◽  
Computer Industry ◽  
Foreign Economic Policy ◽  
Conflict Model ◽  
Theory Of Hegemonic Stability ◽  
Hegemonic Stability ◽  
Structural Conflict

Alternative explanations for the formation of U.S. foreign economic policy are explored using the acrimonious but inconclusive conflict between the United States and its largest South American ally over Brazil's restrictive policies toward the computer industry. After comparing a post-dependency/bargaining perspective, the theory of hegemonic stability, and Stephen Krasner's structural conflict model, the article argues that systemic perspectives on foreign economic policy must be complemented by an account of the interaction between the effects of international position and the dynamics of domestic politics. The resulting politicized state-centric approach, which integrates interest-based politics and ideologically defined state aims, is proposed as a means of more fully understanding the dilemmas of a declining hegemon.

Introduction: approaches to explaining American foreign economic policy

1988 ◽  
Vol 42 (1) ◽  
pp. 1-14 ◽  
Author(s):  
G. John Ikenberry ◽  
David A. Lake ◽  
Michael Mastanduno
Keyword(s):  
Economic Policy ◽  
World Economy ◽  
Domestic Politics ◽  
International Political Economy ◽  
International System ◽  
The United States ◽  
Economic Decline ◽  
Foreign Economic Policy ◽  
The World ◽  
Scholarly Attention

Despite its relative economic decline, the United States remains the dominant power in the world economy. The foreign economic actions taken by American officials, whether they involve trade, technology transfer, or the value of the dollar, continue to have profound consequences for other states in the international system, as well as for American domestic politics and economics. Thus, it is not surprising that the study of American foreign economic policy attracts considerable scholarly attention, and presently constitutes a major portion of the subfield of international political economy.

scholarly journals Policy response to COVID-19 pandemic and related future challenges

2021 ◽  
Vol 69 (3-4) ◽  
pp. 217-229
Author(s):  
Dušan Vujović
Keyword(s):  
Economic Policy ◽  
Capital Mobility ◽  
Policy Framework ◽  
Policy Response ◽  
Policy Paradigm ◽  
Regulated Markets ◽  
Future Challenges ◽  
Fiscal Support ◽  
Development Goals ◽  
Future Growth

The paper reviews new standard policy response to global COVID-19 pandemic led by the IMF. It identifies new innovative approaches in the design of expansionary fiscal support measures and accommodating monetary policy. Particular attention is paid to the treatment of labor markets, job-retention measures, and worker-reallocation efforts deployed at appropriate stages of continued pandemic, initial post-COVID-19 economic recovery and longer-run investment for sustainable future growth. The paper detects inherent policy limitations in the treatment of local, national and global public goods, excessive globalization, and unregulated financial markets and capital mobility, as well as weak integration between prevailing economic policy paradigm and other social sciences. It seeks a solution in expanding economic policy framework beyond neoliberalism, by harnessing democracy and human wellbeing consistent with sustainable development goals through balanced conduct of economic policy, efficient and adequately regulated markets (as needed), and responsible and transparent state actions.

scholarly journals Neoliberalism and global capital mobility: a necessary reconsideration of textbook trade theory

2015 ◽  
Vol 35 (2) ◽  
pp. 267-284 ◽  
Author(s):  
KUNIBERT RAFFER
Keyword(s):  
Economic Policy ◽  
Exchange Rates ◽  
Capital Flows ◽  
Capital Mobility ◽  
Real Economy ◽  
Trade Theory ◽  
The Real ◽  
Capital Movements ◽  
Global Capital ◽  
Regulatory Decisions

Textbook theory ignores capital flows: trade determines exchange rates and specialisation. Approaches taking the effects of capital movements adequately into account are needed, and a new theory of economic policy including measures to protect the real economy from external volatility. Equilibrating textbook mechanisms cannot work unless trade-caused surpluses and deficits set exchange rates. To allow orthodox trade theory to work one must hinder capital flows from destroying its very basis, which the IMF and wrong regulatory decisions have done, penalising production and trade. A new, real economy based theory is proposed, a Neoclassical agenda of controlling capital flows and speculation.

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