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17581. Free trade agreements and regional alliances: support from Latin American legislators

Author:
Asbel Bohigues and José Manuel Rivas
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Instituto Brasileiro de Relações Internacionais (IBRI)
Abstract:
The creation of international organizations and the signature of free trade agreements have become common in Latin America. However, few studies have tackled the attitudes of political elites. This work aims to analyze the determinants of support by Latin American legislators for free trade agreements with the US and the EU, and for the Pacific Alliance and ALBA. Results show that ideology, pro-state/market positions, and trustworthiness vis-à-vis Chinese and Russian governments are the main predictors.
Topic:
Treaties and Agreements, Free Trade, and Elites
Political Geography:
Latin America

17582. Global Value Chains and Formal Employment in Viet Nam

Author:
Trinh Q. Long, Le T. Trang, and Matthias Helble
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study investigates the impacts of integration into global value chains (GVCs) on formal and informal employment in Viet Nam. Utilising the Viet Nam Household Living Standard Surveys and the Organisation for Economic Co-operation and Development’s Trade in Value Added database (in 2010, 2012, and 2014), we examine how GVCs’ engagement affects the share of formal employment (through a fixed effects estimator) and the likelihood of being a formal employee (through a probit estimator). Our estimation results show a positive relationship between the level of GVC engagement and the share of formal employment at the provincial level. While the GVC participation index (measured as the sum of backward and forward participation indices) does not have a statistically significant effect on the share of formal employment at the provincial level, each component of GVC participation (i.e. backward and forward participation) has effects at the provincial level in different directions. At the individual level, we find that provincial GVC engagement is also positively correlated with individuals’ likelihood of being formally employed. However, the probability of being a formal employee (individual) is not directly affected by GVC engagement at the provincial level, but is indirectly affected through the local labour market. Such results indicate that individual and household characteristics are robust determinants of being employed as a formal employee.
Topic:
Labor Issues, Employment, and Global Value Chains
Political Geography:
Asia and Vietnam

17583. The Impact of Economic Globalisation on Firm Performance and the Labour Market: Evidence from Japan

Author:
Keiko Ito
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper summarises the major findings and arguments in the literature on the impact of globalisation on firm performance and the labour market, focusing on the case of Japan. Internationalised firms show better performance. Although offshoring has shifted labour demand towards skilled workers, thedirect contribution of globalisation to the widening wage gap is quite limited. The empirical evidence for Japan is more or less consistent with that for other developed countries, but some observations on Japan are worth pointing out. First, several empirical studies confirm a learning-by-exporting effect. Second, there is no strong evidence that increases in imports from China have reduced domestic employment. Increases in imports from China have a positive effect on value added growth in downstream industries, implying that imports from China are likely to be complementary to domestic production in Japan.
Topic:
Globalization, Industrial Policy, Labor Issues, Exports, and Imports
Political Geography:
Japan, China, and Asia

17584. Does Participation in Global Value Chains Increase Productivity? An Analysis of Trade in Value Added Data

Author:
Shujiro Urata and Youngmin Baek
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the impact of global value chain (GVC) participation on productivity by considering both backward and forward participation. Conducting a panel estimation covering 47 countries and 13 manufacturing sectors for 1995–2011, we found that both backward and forward GVC participation contributes to an increase in the productivity of the countries involved in GVCs. In particular, benefits in the form of improved productivity are larger in cases where developing countries procure intermediate goods from developed countries, or backward participation. Our analysis indicates the importance of GVC participation for improving productivity. We argue that, in order for a country to increase GVC participation, an open, free, and transparent trade and foreign direct investment environment (which is provided by regional trade agreements); well-developed soft infrastructure (e.g. educational and legal systems); hard infrastructure (e.g. transportation and communication systems); and the availability of capable human resources are important.
Topic:
International Trade and Finance, Foreign Direct Investment, and Global Value Chains
Political Geography:
Global Focus

17585. Processing Trade, Trade Liberalisation, and Opening Up China's Miracle of International Trade

Author:
Miaojie Yu and Huihuang Zhu
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Understanding the role of international trade is the key to understanding China’s miraculous economic growth. This paper reviews the literature on international trade in the context of China, with a focus on processing trade, trade liberalisation, and firmperformance to provide a better understanding of China’s experience of opening up over the past four decades.
Topic:
International Trade and Finance, Economic Growth, and Trade Liberalization
Political Geography:
China and Asia

17586. trade, investment, globalisation, Thailand Economic Consequences of Globalisation: Case Study of Thailand 26 December 2019 The paper reviews empirical works examining the effect of globalisation in Thailand, beginning with a discussion of its integration into the economy. Three drivers of … Read More Malaysia, globalisation, trade Globalisation and Economic Development: Malaysia's Experience 23 December 2019 The economic development of Malaysia has been strongly driven and shaped by globalisation, from the pre-colonial to the post-independence period. The country has harnessed trade, … Read More Australia, economic integration, reform, productivity Economic Consequences of Globalisation: The Australian Framework for Reforms

Author:
Christopher Findlay, Kotas Mavromaras, and Zhang Wei
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Australia has experienced significant reforms to policy affecting trade in goods and services, investment, and people. The contributions of these reforms to growth have been significant. However, the scope remains for significant further reform. The drivers of reforms since World War II are reviewed in this chapter. The consequences of globalisation in Australia and the slowdown in the pace of reform and its consequences, for productivity growth in particular, are also discussed. The Australian experience provides valuable insights for other economies, in relation to the scope and timing of reform and the role of supporting institutions.
Topic:
Economics, Globalization, Reform, and Trade
Political Geography:
Australia

17587. Globalisation and Economic Development: Malaysia's Experience

Author:
Cassey Lee
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The economic development of Malaysia has been strongly driven and shaped by globalisation, from the pre-colonial to the post-independence period. The country has harnessed trade, foreign capital, and foreign labour to grow and has transformed its economy from one that was highly dependent on primary commodities (tin and rubber) into one driven by manufactured exports. The impact of globalisation on the Malaysian economy has changed through the various phases of its development experience. The early phases of the country’s engagement with globalisation reduced poverty and inequality. In later stages, excessive dependence on low-skilled foreign labour, although beneficial initially, may have compromised the competitiveness of the economy. Malaysia’s multi-ethnic society has also posed considerable challenges in the balancing of domestic needs and benefits with greater engagement with globalisation. The openness of the Malaysian economy has also made it vulnerable to global economic shocks.
Topic:
Globalization, International Trade and Finance, Inequality, and Economic Development
Political Geography:
Malaysia and Asia

17588. Economic Consequences of Globalisation: Case Study of Thailand

Author:
Archanun Kohpaiboon
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper reviews empirical works examining the effect of globalisation in Thailand, beginning with a discussion of its integration into the economy. Three drivers of economic globalisation are emphasised: international trade, foreign direct investment, and cross-border labour mobility. The findings point to globalisation’s potential to create a favourable economic impact. Opening up to international trade could promote productivity and drive economic growth. Large foreign direct investment inflows enticed by export-oriented industrialisation are likely to generate horizontal technological spillovers within a given industry; vertical spillovers through the linkages were not a robust result. There is no evidence that employing foreign workers retards firm productivity; rather, the opposite is the case. Well-performing firms are in a position to attract foreign workers and maintain production capacity. Global production sharing (GPS) does not necessarily mean the participating countries are trapped at the low end of the quality ladder. The Thai experience supports the case for further globalising its economy. Any possible side effects of globalisation can be mitigated by other policies such as strengthening the social safety net.
Topic:
Globalization, International Trade and Finance, Labor Issues, and Economic Growth
Political Geography:
Asia and Thailand

17589. From a Common to a National State(s) and the Lithuanian-Polish Dispute

Author:
Alfonsas Eidintas
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Warsaw East European Review (WEER)
Institution:
Centre for East European Studies, University of Warsaw
Abstract:
On the occasion of the 100th anniversary of the restoration of the independent states of Poland and Lithuania, we will return to a fundamental question, namely, whether the relationship between our contemporary states, which had already become hostile during the restoration process, is a time of missed opportunities? Or maybe the interests of both sides were simply so different that it was impossible for them to agree on a matter of major importance – state territory (partly also on the issue of national minorities) – and to balance their interests, thus avoiding conflict and a particularly hostile bilateral relationship which lasted until the tragic developments for both Poland and Lithuania in 1939-1940, when our countries fell victim to two tyrants.
Topic:
Nationalism, Minorities, Conflict, and State Building
Political Geography:
Europe, Eastern Europe, Poland, and Lithuania

17590. The Georgian Herald Samizdat Journal

Author:
Aleksandra Gryzlak
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Warsaw East European Review (WEER)
Institution:
Centre for East European Studies, University of Warsaw
Abstract:
From the very beginnings of Soviet rule in Georgia, the communists were not very popular throughout Georgian society and treated as occupants. Almost all active forms of resistance ceased to exist after the bloody suppression of the August Uprising of 19241. The massive purge of the Georgian intelligentsia that followed deprived the nation of its patriotic elites. Only after the death of Stalin and in the wake of Nikita Khrushchev’s famous speech in 1956, did the situation change. Khrushchev’s words of accusation and criticism, leveled at Stalin for his cult of personality and other mistakes, were treated in Georgia as an attack on their nation and an element of Russian chauvinism. It gave rise to a series of mass protests in Tbilisi in March 1956, that were brutally dispersed by the army. Approxi- mately 150 people died as a result2. During the 1950s and 60s, Vasilii Mzhavanadze was the leader of the Georgian Com- munist Party. In keeping with Khrushchev’s strategy of somewhat reduced control over the national republics, one could observe a consolidation of power by the ruling elite in Geor- gia3. This led to the spread of corruption, bribery and other illegal economic operations. Despite a weak economy, according to official statistics, the average Georgian’s savings in the 1970s were nearly twice that of the average Russian. Also, during this time, a very high number of educated specialists – who while graduating, did not take job assignments were still able to live reasonably well. Another phenomenon characteristic for the 1950s and 60s was a growing sense of nationalism. Symptoms of this included a relatively small number of national minority representatives able to gain access to higher education in the Georgian Republic, as well as clear-cut Georgian control over local and national party structures. The situation did not change after the fall of Khrushchev.4 Only in the early 1970s, did things start to change. In 1972, the key position of the First Secretary of the Georgian Communist Party was passed to the former Minister of the Inte- rior – Eduard Shevardnadze, who began his rule with a broad campaign against corruption, overgrown bureaucracy, nepotism, and the so-called “second economy” (black market). Harsh administrative methods used in this campaign brought some positive effects – especially in the agricultural sector – but also resulted in a negative reaction from Georgian society5. Shevardnadze was also supposed to fight against growing Georgian nationalism. Campaigns, that condemned such things as reluctance to learn Russian lan- guage and promotion of national chauvinism in culture, were initiated. The teaching cur- riculum of the subject of history was also put under siege by the new authorities.
Topic:
Agriculture, Communism, Corruption, Human Rights, Nationalism, and Culture
Political Geography:
Europe, Eastern Europe, Soviet Union, and Georgia