scholarly journals Firms in Trade and Trade Politics

2019 ◽  
Vol 22 (1) ◽  
pp. 399-417 ◽  
Author(s):  
In Song Kim ◽  
Iain Osgood
Keyword(s):  
Political Economy ◽  
Exchange Rates ◽  
Interest Group ◽  
Foreign Investment ◽  
International Political Economy ◽  
Political Organization ◽  
Trade Regime ◽  
Capital Movements ◽  
Trade Politics ◽  
Preference Map

We survey the literature on firms as primary actors in trade politics. In contrast with prevailing approaches, firm-centered models predict that trade internally divides industries and that larger firms are the strongest advocates for globalization. This new preference map alters extant predictions about the dynamics of interest group contestation over trade and suggests revised accounts for how political organization and institutions contribute to an open international order. We also explore the potential for new insights into the operation of the global trade regime, the politics of foreign investment, immigration and capital movements, and exchange rates. Poli-tical activities undertaken by firms are important areas for further research in international political economy: Their economic engagements directly affect the movement of goods, services, capital, and people across the globe.

FOREIGN INVESTMENT AND THE POLITICAL ECONOMY OF INDONESIAN CAPITAL MARKET IN 2015-2016

2019 ◽  
Vol 7 (6) ◽  
pp. 340-348
Author(s):  
Faris Al-Fadhat ◽  
Mohammad Raihan Nadhir
Keyword(s):  
Political Economy ◽  
Interest Rates ◽  
Foreign Investment ◽  
Capital Market ◽  
International Political Economy ◽  
Stock Exchange ◽  
Economic Stability ◽  
Foreign Investors ◽  
The Impact ◽  
The Capital Market

Purpose of the study: This article examines the impact of foreign investment—especially through the capital market—towards the economic stability and strategic policy in Indonesia. Despite being a member of G20, a group of states with the world’s highest Gross Domestic Products, Indonesia is still a developing state whose need for investment to support economic growth is high. On the other side, Indonesia has a low capital accumulation rate due to low people’s savings which inhibits the development projects. Therefore, the government prioritizes the incoming flow of foreign investment. Methodology: This study applies the international political economy approach to provide critical analysis of Indonesian contemporary foreign investment, especially in the capital market. The data used is the investment activities through the Indonesia Stock Exchange during 2015-2016. Main Findings: It argues that Indonesia’s considerable dependence on investment has enabled foreign investors to play the capital flow to influence the national economic stability for their interests. Such influence was a result of two strategies: (i) the transaction domination in the capital market through the Indonesia Stock Exchange, and (ii) the alliance with financial actors in accessing inside information—which is not commonly owned by domestic investors. Implications/Applications: This study suggests that the politics of foreign investors has contributed towards the changes of government policies in the financial sectors to facilitate the process and to ensure the flow of foreign investment to Indonesia. Such policies include the government’s control of interest rates, fiscal policy, as well as currency stability through macroprudential regulation. Novelty/Originality: Essentially, the capital market is not politically neutral. It has been used by foreign investors to augment their interests by dominating transactions and building political alliances at the domestic level.

scholarly journals Declining hegemony and the sources of Trump’s disengagement from multilateral trade governance: the interaction between domestic politics and the international political economy

2021 ◽  
Author(s):  
Arlo Poletti ◽  
Lorenzo Zambernardi
Keyword(s):  
Political Economy ◽  
Domestic Politics ◽  
International Political Economy ◽  
Political Process ◽  
Careful Analysis ◽  
Economic Competition ◽  
Multilateral Trade ◽  
Trade Politics ◽  
Rise Of China ◽  
Hegemonic Transition

AbstractAs a result of the economic and political rise of China and Trump’s decision to undermine the liberal international order, theories of hegemony have regained center stage in both policy-oriented and scholarly debates. Yet, a careful analysis of the evolution of the US foreign policy strategy in the realm of international trade politics reveals that traditional theories of hegemonic decline are ill-equipped to account for both the timing and the content of the Trump administration’s behavior in this issue area. This paper argues in favor of integrating structural theories of hegemonic transition/stability with an analysis of the domestic sources of trade policy preferences. To do so, we draw on the International Political Economy literature highlighting how the domestic political process triggered by the dynamics of international economic competition combined with structural forces in shaping the timing and content of the Trump administration’s disengagement from the existing multilateral trade governance structures.

Automobiles in international trade: regime change or persistence?

1987 ◽  
Vol 41 (2) ◽  
pp. 225-252 ◽  
Author(s):  
James A. Dunn
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Regime Change ◽  
International Political Economy ◽  
Auto Industry ◽  
Trade Expansion ◽  
Trade Regime ◽  
Trade Regimes ◽  
The 1950S ◽  
Definition Of

The concept of a “regime” is frequently used to describe and explain behavior in international political economy. Peter Cowhey and Edward Long, attempting to test theories of surplus capacity and hegemonic decline, advanced a version of a regime governing international trade in automobiles which was fundamentally liberal from 1966 to 1975, but then collapsed into protectionism. Their diagnosis is mistaken, however, because the trade regime for autos was neither as liberal as they assert during the 1950s and 1960s, nor as protectionist as they believe it has become in the 1980s. The discussion focuses on a new definition of the auto trade regime based on four fundamental rules that have persisted since the 1950s. By examining data on auto imports since 1955 on a region-by-region basis, it becomes clear that the trade expansion of the postwar years was not based on a global liberalization of the trade regime, but on carefully managed regional arrangements that favored imports within the region, or extra-regional imports that did not threaten domestic producers. The flurry of restraints on Japanese imports in recent years is not a collapse into protectionism, but a reinforcement of the fundamental regime rules. The auto industry case illustrates the tendency of analysts to underestimate protectionist elements in industry trade regimes and to overestimate the amount of changes that take place in their fundamental rules.

Formal Models of International Political Economy

2021 ◽  
Author(s):  
Leslie Johns
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Foreign Investment ◽  
International Political Economy ◽  
Future Research ◽  
Formal Models ◽  
Foreign Investors ◽  
Research Questions

This chapter examines how scholars use formal models to study International Political Economy (IPE). This small, but important, body of research revolves around three substantive research questions. First, scholars have asked: how do states promote international trade by reducing tariffs and non-tariff barriers? Second, they ask: how do states encourage foreign investment by making binding pledges to protect foreign investors? Finally, scholars have studied: how do states stabilize and grow their economies? For each of these topics, the chapter looks back at past findings from formal models. It then discusses how IPE scholars can profitably move forward in their future research on these important topics.

Comparative Political Economy

2017 ◽  
Author(s):  
Georg Menz
Keyword(s):  
Political Economy ◽  
Political Institutions ◽  
International Political Economy ◽  
Adam Smith ◽  
Industrial Relations ◽  
Welfare States ◽  
Comparative Political Economy ◽  
Technological Parameters ◽  
Private Debt

This new and comprehensive volume invites the reader on a tour of the exciting subfield of comparative political economy. The book provides an in-depth account of the theoretical debates surrounding different models of capitalism. Tracing the origins of the field back to Adam Smith and the French Physiocrats, the development of the study of models of political-economic governance is laid out and reviewed. Comparative Political Economy (CPE) sets itself apart from International Political Economy (IPE), focusing on domestic economic and political institutions that compose in combination diverse models of political economy. Drawing on evidence from the US, the UK, France, Germany, Sweden, and Japan, the volume affords detailed coverage of the systems of industrial relations, finance, welfare states, and the economic role of the state. There is also a chapter that charts the politics of public and private debt. Much of the focus in CPE has rested on ideas, interests, and institutions, but the subfield ought to take the role of culture more seriously. This book offers suggestions for doing so. It is intended as an introduction to the field for postgraduate students, yet it also offers new insights and fresh inspiration for established scholars. The Varieties of Capitalism approach seems to have reached an impasse, but it could be rejuvenated by exploring the composite elements of different models and what makes them hang together. Rapidly changing technological parameters, new and more recent environmental challenges, demographic change, and immigration will all affect the governance of the various political economy models throughout the OECD. The final section of the book analyses how these impending challenges will reconfigure and threaten to destabilize established national systems of capitalism.

Patents and Development in the New Global Economy

2017 ◽  
Author(s):  
Kenneth C. Shadlen
Keyword(s):  
Political Economy ◽  
Case Studies ◽  
Global Economy ◽  
International Political Economy ◽  
World Order ◽  
Global Politics ◽  
Pharmaceutical Patents ◽  
Key Points ◽  
Comparative Case Studies ◽  
Privately Owned

The concluding chapter reviews the main findings from the comparative case studies, synthesizes the main lessons, considers extensions of the book’s explanatory framework, and looks at emerging challenges that countries face in adjusting their development strategies to the new global economy marked by the private ownership of knowledge. Review of the key points of comparison from the case studies underscores the importance of social structure and coalitions for analyses of comparative and international political economy. Looking forward, this chapter supplements the book’s analysis of the political economy of pharmaceutical patents with discussion of additional ways that countries respond to the monumental changes that global politics of intellectual property have undergone since the 1980s. The broader focus underscores fundamental economic and political challenges that countries face in adjusting to the new world order of privately owned knowledge, and points to asymmetries in global politics that reinforce these challenges.

scholarly journals Trade, Politics, and Democratization: The 1997 Global Agreement Between the European Union and Mexico

2000 ◽  
Vol 42 (2) ◽  
pp. 35-62 ◽  
Author(s):  
José Antonio Sanahuja
Keyword(s):  
European Union ◽  
International Political Economy ◽  
Trade Agreement ◽  
Negotiation Process ◽  
The European Union ◽  
Association Agreement ◽  
Economic Association ◽  
Trade Politics ◽  
Global Agreement ◽  
The Relationship

Mexico and the European Union signed a new Political and Economic Association Agreement in December 1997 and ultimately a free-trade agreement in March 2000, aiming to establish a new model of relations with a more dynamic trade and investment component. This article analyzes the 1997 agreement as background to the final accord. Economic and political changes in the 1990s modified both parties’ participation in the international political economy, helping to overcome some of the structural obstacles to the relationship. The policy toward Latin America adopted by the EU in 1994 was influential. The negotiation process revealed divergences over the scope of the liberalization process and the so-called democracy clause.

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