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301. Iran's Influence in the Middle East

Author:
Jadranka Polovic
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The Middle East as one of the most heterogeneous and politically conflicting regions in the world and has long been at the center of international interest. Faced with sectarian wars and comprehensive social crises for decades the Middle East, due to its geostrategic importance and especially the imperative of controlling the region’s vast energy resources, has once again become a battle ground for major powers whose interests affect the concentration of participants in the region. The competition between global powers and growing influence of Russia and China, who undermine the US power and European Union’s influence and also undermine established alliances in the Middle East, undoubtedly require a rethinking of Western strategies for the region. A series of geopolitical challenges, especially after September 11 attacks against the United States, as a result of military interventions and civil wars (Afghanistan, Iraq, Libya and Syria) and uprisings (Arab Spring) and thus the collapsed regional order, confronted the international community with the changing nature of security threats, as well as with the new balance of power of regional and international actors in the Middle East. Among the many aspects of the Middle East conflicts, the fundamental issue of regional security today is the Sunni-Shiite conflict, which has since the invasion of Iraq in 2003 directly defined the approaches and policies of great powers and significantly changed regional dynamics. In this context, Iran’s role is particularly significant. Namely, over the last two decades, Iran has consolidated its goals in the Persian Gulf and strategically expanded its influence to other countries in the Middle East, primarily Iraq, Syria, Lebanon and Yemen. The growing influence of Shiite Iran, and its close relations with Shiite communities in the region with which it forms a strategic coalition, have become a key geopolitical challenge for the international community.
Topic:
Foreign Policy, Energy Policy, International Cooperation, Natural Resources, and Hegemony
Political Geography:
Russia, China, Europe, Iran, Middle East, Asia, North America, and United States of America

302. The End of the Second Karabakh War: Has a Lasting Peace Come to the South Caucasus?

Author:
Krševan Antun Dujmović
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
In a year in which the whole world seemed to have frozen its conflicts, uniting its efforts to curb the COVID-19 pandemic, a war broke out between Armenia and Azerbaijan over Nagorno-Karabakh and surrounding regions in Azerbaijan. This was a full-scale armed conflict involving two nations in the South Caucasus, but unlike the first Karabakh war that lasted for more than six years, this war lasted only six weeks. Mainly due to modern warfare and deployment of new sophisticated technology, namely unmanned aerial vehicles (UAVs) by Azerbaijan, a long war of attrition was avoided. Thus, the second war caused a significantly lower destruction of properties and cultural sites in this region of rich history on the crossroads between Asia and Europe, the Caspian and the Black Sea. The short duration of this war also insured that no big players neighboring Armenia and Azerbaijan get directly involved on either of the two warring sides, which could have had incomprehensible consequences for the international community. This is because the countries neighboring the conflict area are substantively different comparatively to what they were in the first half of the nineties when the first Karabakh war took place. Firstly, to the north, Russia was then a country facing disintegration and social implosion, with its military in disarray, unable to quell a rebellion in its small republic of Chechnya in the North Caucasus. Today, Russia is the second military force in the world, spreading its political and military clout far beyond its borders. Secondly, to the west, Turkey has become a major political power in the region, assertive and ambitious, the size of its military is second only to that of the US in NATO. Thirdly, to the south, Iran which was by late eighties a country weary of conflicts after a long war with Iraq, is today a regional power wielding it leverage in most of the Middle East. Considering this, the second war in Karabakh had a potential of erupting to a wider regional conflict, and considering the players involved, even into a global conflict. However, while Europe was introducing a second wave of lockdowns in order to grind to a halt the coronavirus, and while the US was embroiled in the presidential election campaign, shattered by an unprecedented economic slump and civil unrest, the war between Armenia and Azerbaijan erupted without much attention of the international community. When the conflict finally started to gain the interest of the world, it rapidly ended, leaving the international community once again perplexed. Has the ceasefire agreement signed between Armenia and Azerbaijan on November 9 brought a lasting peace to the South Caucasus, or is the truce just temporary, freezing the conflict for yet another round of hostilities?
Topic:
Diplomacy, Conflict, Peace, and COVID-19
Political Geography:
Europe, Asia, and South Caucasus

303. The U.S.–China Trade Imbalance and the Theory of Free Trade: Debunking the Currency Manipulation Argument

Author:
Anwar Shaikh and Isabella Weber
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The U.S.–China trade imbalance is commonly attributed to a Chinese policy of currency manipulation. However, empirical studies failed to reach consensus on the RMB misalignment. We argue that this is not a consequence of poor measurement but of theory. At the most abstract level the conventional principle of comparative cost advantage suggests real exchange rates will adjust so as to balance trade. Therefore, the persistence of trade imbalances tends to be interpreted as arising from currency manipulation facilitated by foreign exchange interventions. By way of contrast, the absolute cost theory explains trade imbalances as the outcome of free trade among nations that have unequal real costs. We argue that a disparity in real costs is the root cause of the U.S.–China trade imbalance.
Topic:
Exchange Rate Policy, Free Trade, Trade, and Purchasing Power
Political Geography:
China, Asia, North America, and United States of America

304. Predictors of school dropout across Ethiopia, India, Peru and Vietnam

Author:
Santiago Cueto, Claudia Felipe, and Juan Leon
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Group for the Analysis of Development (GRADE)
Abstract:
In this paper the authors utilize the five rounds of Young Lives household surveys across four countries (Ethiopia, India, Peru and Vietnam) to study the characteristics of children who had dropped out of school by 22 years of age. While most children in the longitudinal sample go to primary school, they tend to drop out more often and earlier in Ethiopia. In India most children complete the early grades of school but drop out later, particularly in grades 11 and 13. Researchers find that in all countries, except Vietnam, there is a considerable number of children who drop out of school but at some point return to it, either to complete secondary or drop out again. The reasons provided by children for dropping out across the countries are oftentimes related to poverty: for example, the need to work, or care or provide for family. The multivariate analysis shows that indeed in many cases the wealth level of the family at an early age predicts later dropout, as does maternal education level, students’ early skills and residence in certain regions of each country. There are also some variations across countries; for example, boys are more likely to drop out of school in Ethiopia and Vietnam, and children who have repeated a grade are more likely to drop out of school in Peru. However, having high educational aspirations at early ages seems to be a protective factor against dropping out. This suggests that the value that children place on education may be an important preventative factor against dropping out. Overall, these results suggest the need to act early through education and social protection interventions to target young children who are at risk of dropping out, and the follow their trajectories, providing support as needed to specific groups and even individuals, so that all children may fulfill their right to complete at least secondary education.
Topic:
Education and Children
Political Geography:
Africa, India, Asia, Vietnam, Ethiopia, and Peru

305. Oil Prices and Stock Prices in Clean Energy: New Evidence from Chinese Subsectoral Data

Author:
Dong Weijia
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
The International Energy Agency (IEA) believes that the world needs a clean energy revolution to break its dependence on fossil fuels. Clean energy consists of not just the new energy but also the vehicles that use them,2 including renewable energy, nuclear power, and biofuels. In this context, many studies discuss whether clean energy could have a significant substitution effect on traditional fossil fuels, especially oil.
Topic:
Energy Policy, Oil, and Trade
Political Geography:
China and Asia

306. The cross-border impacts of China’s official rate shocks on stock returns of Chinese concepts shares listed on U.S. market

Author:
Dong Weijia
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
This paper examines a new cross-border effect of an emerging country’s interest rate changes on the stock returns of its domestic firms listed overseas. First, we discover that the increase in China’s official interest rate greatly affects the NYSE-listed Chinese stocks, thereby suggesting that similar to Chinese domestic investors, the institutional investors in a mature market sometimes exhibit irrational sentiment driven by an emerging economy’s unexpected monetary policy shocks. Second, we highlight some novel asymmetric impacts of China’s official rate changes on Chinese concepts stock prices and reveal that these effects differ from the conventional nonlinear effects of monetary policies. For instance, a bull and bear regime has no statistically significant asymmetric effect on NYSE, whereas interest rate rise has different cross-border impact on Nasdaq and NYSE markets. These interesting findings are mainly driven by the smart investors in the U.S. stock market who are knowledgeable about the differences between NYSE- and Nasdaq-listed stocks and carefully analyze the different impacts of China’s official interest rate changes on the fundamentals of different types of Chinese concepts stocks.
Topic:
International Trade and Finance, Bilateral Relations, and Investment
Political Geography:
China, Asia, North America, and United States of America

307. Comovement of Home Prices: A Conditional Copula Approach

Author:
Lei Hou, Wei Long, and Qi Li
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
Even though housing markets in different areas are relatively localized, regional home prices have become closely correlated and tend to be simultaneously affected by many national economic factors. In this paper, through the dynamic copula model, we confirm that regional home price dependence is time-varying and the conventional time-invariant copulas underestimate the degree of dependence during economic expansions and recessions. In essence, the U.S. residential real estate market has become more integrated since the mid-1980s. Using the conditional copula model, we further identify how the dependence among regional housing markets evolves along with some fundamental economic factors such as unemployment rate and interest rate. These findings can help investors and home buyers to better identify and evaluate the systematic risk in the nationwide housing market.
Topic:
Economics, Unemployment, and Housing
Political Geography:
China, Asia, North America, and United States of America

308. Evaluating the impact of fossil fuel vehicles exit on the oil demand in China

Author:
Ziru Feng, Tian Cai, Kangli Xiang, Chenxi Xiang, and Lei Hou
Publication Date:
03-2020
Content Type:
Working Paper
Abstract:
Vehicle ownership is one of the most important factors affecting fuel demand. Based on the forecast of China's vehicle ownership, this paper estimates China’s fuel demand in 2035 and explores the impact of new energy vehicles under the scenarios of slow, medium, and rapid substitution. The main contribution of this paper is making a more detailed estimation on the main parameters such as the saturation level and growth rate of the vehicle ownership by taking into account the heterogeneity of provinces when using the Gompertz model to forecast the future vehicle ownership. On that basis, the fuel demand of each province in 2035 is calculated. The results show that: ①The vehicle ownership rate of each province conforms to the S-shape trend with the growth of real GDP per capita. At present, most provinces are at a stage of accelerating growth. However, the time for the vehicle ownership rate of each province to reach the inflection point is quite different. ②Without considering the replacement of new energy vehicles, China's auto fuel demand is expected to be 746.69 million tonnes (Mt) in 2035. Guangdong, Henan, and Shandong are the top three provinces in fuel demand due to the economic and demographic factors, with the expected fuel demand of 76.76, 64.91 and 63.95Mt respectively. ③Considering the replacement of new energy vehicles, China’s fuel demand in 2035 will be 653, 615 and 578 Mt respectively under the scenarios of slow, medium and fast substitution. Even under the scenario of slow substitution, the reduction in fuel demand will be 94 Mt, accounting for 26.3% of China's net oil imports in 2016. Therefore, the withdrawal of fuel vehicles will greatly reduce the oil demand and the dependence on foreign oil of China. Faced with the dual pressure of environmental crisis and energy crisis, the forecast results of this study provide practical reference for policy makers to rationally design the future fuel vehicle exit plan and solve related environmental issues.
Topic:
Climate Change, Oil, and Fossil Fuels
Political Geography:
China, Asia, and United States of America

309. WTO accession, trade expansion, and air pollution: Evidence from China’s county-level panel data

Author:
Shuai Chen, Faqin Lin, Xi Yao, and Peng Zhang
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
This study provides evidence that trade expansion has contributed to the degradation of air pollution in China. On the basis of different responses of counties’ trade to China’s World Trade Organization accession at the end of 2001, we exploit air pollution data from NASA to construct a difference-in-differences predicted trade as an instrument for our identification. We document statistically significant and robust evidence on trade expansion, which accounts for approximately 60% and 20% for the increase of PM2.5 and SO2, respectively, in China. Findings on trade pollution relation are robust to various tests. Deterioration in the environment is mainly driven by scale and trade in polluting sectors.
Topic:
Trade, Pollution, and WTO
Political Geography:
China and Asia

310. The Impact of COVID-19 on World Economy and China’s Role

Author:
Xu Xiujun
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
Recent years have seen more countries to experience “three lows and three highs” problems. The pandemic triggered the exposure of these accumulated risks, leading to a slump in world economic growth. Given the developing trend of world economy amid the ongoing pandemic, the world may face a range of challenges for a long time to go, e.g. insufficient momentum for economic growth, increased resistance for market opening and rising debt risks. As the world economy suffers a major hit, China has been active in providing the international community with the assistance needed to combat the COVID-19 and recover the economy, while China’s economy itself has shown strong resilience and stability. In the long run, the pandemic will not change the sound momentum of China’s economic development; rather, it will provide an opportunity for China to play a significant role in the world economy.
Topic:
Economy, Global Political Economy, and COVID-19
Political Geography:
China and Asia

311. Fight the COVID-19 Pandemic and Improve Global Health Governance

Author:
Lin Ren, Aizong Xiong, Guoding Wu, Chen Shen, Xu Tian, and Bo Peng
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
The fast spreading of the COVID-19 across the globe points to the urgency of strengthening global health governance. As the core global health governance institution, the WHO has taken a series of actions after the eruption of the epidemic and played an important role in providing guidance and coordinating global forces to combat the epidemic. The epidemic, however, has also exposed some defects of the global health governance mechanism, especially the WHO, and posed challenge to it. The international community needs to strengthen its support for the WHO to improve its role in the global health governance.
Topic:
Health, Governance, and COVID-19
Political Geography:
China, Asia, and Global Focus

312. Deceleration, Pandemic, Recession: Does India Have a Plan?

Author:
Roshan Kishore
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
India’s economic pain due to the COVID-19 pandemic will be more painful because it has come on the back of a prolonged economic slowdown. The pre-COVID-19 slowdown is rooted in India’s inability to find a sustainable demand side stimulus in the post-2008 period. However, the current regime has failed to grasp this macroeconomic reality and pursued policies which have only made matters worse. Because the economic pain has not translated into political pain for the ruling party, intellectual criticism of its policies is increasingly losing its influence. Persisting with such policy and politics will significantly add to the already existing economic pain and worsen social fissures. Unless the opposition reinvents its politics, things will not change on the policy front
Topic:
Public Health, Pandemic, COVID-19, and Economic Recovery
Political Geography:
India and Asia

313. Cooperation in Trade in Services

Author:
Akshay Mathur and Purvaja Modak
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Over the past decade, there has been a shift in global trade from trade in goods to trade in services. Unlike goods, services are intangible and consumed by the user directly, without intermediate supervision. Thus, the only way to ensure the quality of a service is to enforce standards on the service provider. This is the responsibility of domestic sector-specific regulatory institutions established by the government. This paper examines the current state of services trade in India and Canada, considers India’s services trade with Canada and outlines a number of measures the countries could take to support services trade.
Topic:
International Cooperation, International Trade and Finance, Services, and Trade Policy
Political Geography:
Canada, India, Asia, and North America

314. Fostering Growth in Digital Trade through Bilateral Cooperation in the Development of Trade Rules

Author:
Don Stephenson
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Like foreign policy, trade policy is the outward expression of domestic policy — both economic and social — and trade negotiations are to advance the national interest. Both India and Canada have important commercial interests in digital trade and both have counterbalancing social policy concerns, but they have important differences as well. Their equitable participation in digital trade must overcome an imbalanced competitive landscape through measures to facilitate access to technology and infrastructure, financing, and training in digital technology literacy and data-based business models. As yet, there is no international consensus on how trade rules should be adapted to foster digital trade. Consistent with the Track 1.5 Dialogue objectives, this paper calls on Canada and India to partner and lead in advancing the digital trade agenda. It recommends creating a bilateral process to identify common causes and areas for collaboration; convening a business-to-business conversation supported with research and analysis; and focusing on the impact of digital technology, looking at not only electronic commerce but also trade in traditional service sectors.
Topic:
International Cooperation, International Trade and Finance, Digital Economy, and Trade Policy
Political Geography:
Canada, India, Asia, and North America

315. India-Canada Energy Cooperation

Author:
Amit Bhandari
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The energy sectors of India and Canada complement each other: India is a large and growing oil importer, while Canada is a large and growing exporter of oil and gas. However, as they invested in oil fields across the world, Indian oil companies have missed out on the Canada story. Investing in Canada’s oil sector can help India guard against the risk of spikes in oil prices and provide Canada with long-term demand security. In this paper, first presented as a backgrounder at Track 1.5 meetings in Mumbai, India, in November 2019, Gateway House outlines its findings on the feasibility of Indian investment in Canada’s petroleum sector, suggesting a path forward and best prospects for investment.
Topic:
Energy Policy, International Trade and Finance, Oil, Gas, and Investment
Political Geography:
Canada, India, Asia, and North America

316. Sustainable Energy through Green Bonds in India

Author:
Olaf Weber and Vasundhara Saravade
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Emerging economies, such as India, will need significant international investment in climate action in order to transition toward a future that is low-carbon and climate-resilient. India needs fossil fuels at an affordable price and needs to protect itself against price fluctuations. It can meet these needs by investing in Canadian oil companies, given the country’s political stability and rule of law. As an emerging economy, India could attract greater foreign direct investment into its economy through green bonds, a climate finance debt instrument that addresses environmental and climate-related challenges. Not only are green bond issuances linearly increasing over the years, but they also seem to be driven by institutional pressure, provided in part by the Securities and Exchange Board of India’s regulation, as well as by the informal advocacy efforts of market stakeholders. These findings are consistent with institutional theory and contribute to it by introducing the regulatory perspective of the green bond market.
Topic:
Climate Change, Energy Policy, Green Technology, and Sustainability
Political Geography:
India and Asia

317. An International Intellectual Property and Digital Trade Strategy for Canada

Author:
Jeremy de Beer
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
To remain competitive on a global scale, Canada needs to enhance its domestic intellectual property (IP) and digital trade strategies with an international approach that can respond to constantly changing global economic conditions. Although Canada launched its Intellectual Property Strategy in 2018 — focusing on IP awareness, strategic tools and legislation — its data initiative, known as the Digital Charter, remains a work in progress. Both policies would benefit from an outward-looking, interconnected, international strategic vision. As a member of various international trade agreements, Canada has framed its IP laws to align with these agreements and its trade partners. Canada should expand its trade relationships with Africa before other countries, such as China, take advantage of the continent’s rapidly growing economies and trade opportunities. Building strategic alliances with the right global partners, combined with the use of hard and soft laws to promote Canadian interests, will help Canada strengthen its international IP and digital trade strategy.
Topic:
International Cooperation, Intellectual Property/Copyright, Digital Economy, and Trade
Political Geography:
China, Canada, Asia, and North America

318. At a Crossroads? China-India Nuclear Relations After the Border Clash

Author:
Toby Dalton and Tong Zhao
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
While both countries may think the situation is under control, dismissive attitudes and misperceptions could end up fueling a dangerous competition. On June 15, 2020, a lethal military conflict over disputed territory in the Himalayas shook the edifice of China-India relations. The clash in the Galwan Valley along their shared border is the gravest military confrontation the two nuclear powers have faced in fifty years. This event and ongoing tensions focus attention on the long-standing but tempered competition between China and India. One of the most interesting puzzles of that relationship is why nuclear weapons, which both possess, have not played a more important role. With the potential for a major reset in China-India ties after the Ladakh crisis, are Beijing and New Delhi finally approaching a long-anticipated crossroads in their nuclear relations? The findings reveal that while Indian security analysts give serious attention to China’s nuclear policy and capabilities, Chinese analysts maintain a dismissive attitude about the relevance of nuclear weapons in China-India relations. The attitude stems from a widely held view that India’s indigenous military technologies are significantly behind China’s and that China will continue widening the gulf between the two countries’ conventional and nuclear capabilities. However, Chinese analysts do not appear to fully appreciate the long-term destabilizing implications of this growing gap. India may feel pressure to build out its nuclear arsenal, and this could further threaten the fragile stability between India and Pakistan. Chinese experts tend to underestimate the role Beijing may have in shaping New Delhi’s threat perception and nuclear strategy.
Topic:
International Relations, Nuclear Weapons, Military Affairs, and Borders
Political Geography:
China, South Asia, India, and Asia

319. The Effectiveness of School Closures and Other Pre-Lockdown COVID-19 Mitigation Strategies in Argentina, Italy, and South Korea

Author:
Claudio Neidhofer and Guido Neidhofer
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
The rapid spread of COVID-19 forced policy-makers to swiftly find solutions to reduce infection rates and keep mortality as low as possible. Empirical analyses on the effectiveness of control measures are hereby of primary importance. School closures were among the earliest measures enacted by the governments of most countries. However, while schools are now reopening in many countries, the impact of school closures on the course of the epidemic is still an open question. Adopting parametric and non-parametric synthetic control methods we estimate the effectiveness of pro-active school closures, and other early social distancing interventions, in three countries that reacted relatively early during the course of the pandemic. Our findings suggest that these interventions were effective at reducing the mortality rate of COVID-19, especially when enacted early.
Topic:
Education, Public Health, Pandemic, and COVID-19
Political Geography:
Europe, Asia, South Korea, Argentina, South America, and Italy

320. East Asia decouples from the United States: Trade war, COVID-19, and East Asia's new trade blocs

Author:
Peter A. Petri and Michael G. Plummer
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
he deepening US-China trade war and nationalist reactions to the COVID-19 pandemic are reshaping global economic relationships. Alongside these developments, two new megaregional trade agreements, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), will refocus East Asia’s economic ties in the region itself. The new accords are moving forward without the United States and India, once seen as critical partners in the CPTPP and RCEP, respectively. Using a computable general equilibrium model, we show that the agreements will raise global national incomes in 2030 by an annual $147 billion and $186 billion, respectively. They will yield especially large benefits for China, Japan, and South Korea and losses for the United States and India. These effects are simulated both in a business-as-before-Trump environment and in the context of a sustained US-China trade war. The effects were simulated before the COVID-19 shock but seem increasingly likely in the wake of the pandemic. Compared with business as before, the trade war generates large global losses rising to $301 billion annually by 2030. The new agreements offset the effects of the trade war globally, but not for the United States and China. The trade war makes RCEP especially valuable because it strengthens East Asian interdependence, raising trade among members by $428 billion and reducing trade among nonmembers by $48 billion. These shifts bring regional ties closer to institutional arrangements proposed in the 1990s and incentivize greater cooperation among China, Japan, and South Korea.
Topic:
Treaties and Agreements, Trade Wars, Trans-Pacific Partnership, Free Trade, COVID-19, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

321. How the United States marched the semiconductor industry into its trade war with China

Author:
Chad P. Bown
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The US-China trade war forced a reluctant semiconductor industry into someone else’s fight, a very different position from its leading role in the 1980s trade conflict with Japan. This paper describes how the political economy of the global semiconductor industry has evolved since the 1980s. That includes both a shift in the business model behind how semiconductors go from conception to a finished product as well as the geographic reorientation toward Asia of demand and manufactured supply. It uses that lens to explain how, during the modern conflict with China, US policymakers turned to a legally complex set of export restrictions targeting the semiconductor supply chain in the attempt to safeguard critical infrastructure in the telecommunications sector. The potentially far-reaching tactics included weaponization of exports by relatively small but highly specialized American software service and equipment providers in order to constrain Huawei, a Fortune Global 500 company. It describes potential costs of such policies, some of their unintended consequences, and whether policymakers might push them further in the attempt to constrain other Chinese firms.
Topic:
Science and Technology, Trade Wars, Industry, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

322. Social Interventions, Health and Wellbeing: The Long-Term and Intergenerational Effects of a School Construction Program

Author:
Bhashkar Mazumder, Maria Rosales-Rueda, and Margaret Triyana
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. We find some evidence that household resources, neighborhood quality, and assortative mating may explain a portion of our results. Our findings highlight the importance of considering the long-run and multigenerational benefits when evaluating the costs and benefits of social interventions in a middle-income country.
Topic:
Education, Health, Poverty, Inequality, Economic Growth, and Economic Development
Political Geography:
Indonesia and Asia

323. Reverse Student Mobility from South Korea to the United States

Author:
Stephanie Kim
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Commentators have pointed to the “Trump Effect” for falling international student enrollment in the U.S. higher education sector. When taking a closer look at student mobility trends from South Korea, however, the facts and figures tell a different story. For the past two decades, South Korea has been consistently the third largest sender of international students to the United States. But the number of South Korean students who study in U.S. higher education had been steadily falling well before the more recent general declines in international student enrollment. What are the underlying causes of this concerning trend? And what are the implications for the United States when such a major contributor of international students wanes? This paper shows how internationalization efforts in the South Korean higher education sector have resulted in the reversal of domestic student outflow from South Korea to the United States that has major implications for bilateral relations between the two countries.
Topic:
Education, Bilateral Relations, Domestic Politics, and Freedom of Movement
Political Geography:
Asia, South Korea, North America, and United States of America

324. Bridging the Gap: Progress and Prospects for Accelerating South Korea's Move Towards a Carbon Neutral Scenario

Author:
Francesca Frassineti and Francesco Sassi
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Moon administration in South Korea has implemented rapid changes to accelerate the decarbonization of the energy sector. While seeking to embrace renewables, Seoul has been relying on the bridging capacity of natural gas—of which it is the world’s third largest importer. In this context, President Moon is also confronted with public discontent over weak emissions goals and inadequate policies to curb the negative effects of climate change. Besides, the socio-economic fallout from the pandemic could hinder the enforcement of environmental measures and loosen restrictions for the sake of an immediate recovery. As Seoul attempts to secure more environmentally-friendly and economically sustainable energy sources, this paper examines the advances and major drawbacks of this policy agenda. By shedding light on the dynamics within the gas sector, the analysis also assesses the viability of liquefied natural gas (LNG) as the pillar of this pro-environmental policy shift, including the potential of some LNG-related projects. The paper finds the feasibility of the current goals is challenged by the realities of energy supply stabilization, particularly due to the simultaneous phaseout of coal and nuclear power and the persistent capacity obstacles for renewables to fill this gap. In light of this, the paper advocates for integrated policy measures aimed at improving consistency in implementing national energy policy in tandem with climate change mitigation efforts.
Topic:
Climate Change, Energy Policy, Gas, and Carbon Emissions
Political Geography:
Asia and South Korea

325. Transforming informal work and livelihoods in China

Author:
Carl Shu-Ming Lin, Linxiang Ye, and Wei Zhang
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The informal sector has long been viewed as a locus of the disadvantaged, unskilled, and inexperienced workers in under-developed and developing economies. Workers in the informal sector, however, can learn skills and gain experience that could help them switch to better-paying jobs in the formal sector. But evidence of this is limited. China constitutes an important case study because it is the most populous country and has the largest labour force, consisting of over 290 million rural-to-urban migrants whose employment is mostly informal. Using three waves of nationally representative household surveys from 2014 to 2018, we study how the livelihoods of Chinese workers change when transitioning to different work statuses within or between formal and informal sectors. Our results show that transitioning jobs from the informal to the formal sector and from the self-employed to the wage-employed increases earnings, which improves the livelihoods of Chinese workers.
Topic:
Employment, Economic Development, Informal Economy, and Workforce
Political Geography:
China and Asia

326. Preparing for the Nightmare: Readiness and Ad hoc Coalition Operations in the Taiwan Strait

Author:
Mark Stokes, Yang Kuang-shun, and Eric Lee
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
Taiwan’s (Republic of China, ROC) defense readiness can be viewed from both strategic and operational perspectives. In our report, readiness is measured by both (1) the degree to which Taiwan’s government and civil society are prepared to counter coercion by the Chinese Communist Party (CCP), and (2) the degree to which the ROC armed forces can carry out its mission. Given the increasing likelihood of CCP use of force against Taiwan in the foreseeable future, it is in the interests of the United States and the ROC governments to improve overall defense readiness. This report evaluates the threat environment Taiwan faces and details its strategic and operational readiness, as well as the utility of ad hoc coalitions. In addition, the report highlights future opportunities for U.S. policymakers to strengthen the United States and Taiwan’s readiness in pursuit of the shared goal of peace and stability in a free and open Indo-Pacific region.
Topic:
Conflict Prevention, Strategic Stability, Coalition, and Readiness
Political Geography:
China, Taiwan, and Asia

327. Weaponizing the Belt and Road Initiative

Author:
Daniel R. Russel and Blake Berger
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China’s Belt and Road Initiative (BRI), launched by President Xi Jinping in 2013, is a massive international infrastructure program involving nearly 140 countries with over an estimated $1 trillion in projects related to energy, transportation, digital networks, and trade. Chinese leaders frame the BRI as “win-win” cooperation focused solely on development and connectivity. Beijing has gone to great lengths to minimize BRI’s links to the People’s Liberation Army and to downplay the initiative’s geostrategic overtones. Nevertheless, many governments have become worried about ulterior motives behind BRI projects, many of which have dual-use commercial-military capabilities and are increasingly connected to Chinese digital technologies and networks and satellite systems. The Asia Society Policy Institute’s – Weaponizing the Belt and Road Initiative – examines key BRI projects in the Indo-Pacific and explores relevant Chinese doctrine, the involvement of the People’s Liberation Army with BRI, and assesses the potential military and geostrategic advantages to China from BRI ports and other projects. This project is led by ASPI Vice President for International Security and Diplomacy Daniel Russel, with support from ASPI Senior Program Officer Blake Berger. The project and the report benefitted from advisement from experts and officials in Singapore, Australia, Japan, Vietnam, China, and the United States as well as to the expert advisory group whose distinguished members generously shared their time and wisdom to support this effort.
Topic:
Development, Geopolitics, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
China and Asia

328. China’s Response to Climate Change: A Study in Contrasts and a Policy at a Crossroads

Author:
David B. Sandalow
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China is the world’s leading emitter of heat-trapping gases, by far. In 2019, Chinese emissions were greater than emissions from the United States, the European Union, and Japan combined. There is no solution to climate change without China. China’s response to climate change is a study in contrasts. China leads the world in solar power, wind power, and electric vehicle deployment, but also in coal consumption. The Chinese government has adopted some of the world’s most ambitious energy efficiency and forest conservation policies, but is financing a significant expansion of coal-fired power plant capacity at home and abroad. China’s leaders are strongly committed to the Paris Agreement, but appear to attach less priority to climate change than in years past. This Issue Paper explores these contrasts. It does so at an important time in Chinese climate change policy. During the next 18 months, the Chinese government will spend heavily on economic stimulus measures, release its 14th Five-Year Plan (for 2021–2025), and develop short- and long-term climate action plans (known as its “updated nationally-determined contributions” and “mid-century strategy” in the terminology of the global U.N. climate process). Decisions by the Chinese government will reverberate globally, including in the United States. A Biden administration’s ambition in addressing climate change would be reinforced by ambition in China. This Issue Paper provides an up-to-date snapshot of China’s climate policies, drawing on data from 2019 and the beginning of 2020 (during the height of the COVID-19 economic lockdown), as well as recent remarks by Chinese leaders. It starts by examining Chinese emissions of heat-trapping gases. It then discusses China’s principal climate policies, explaining the main tools the Chinese government uses to address climate change and related topics. The Issue Paper concludes with a discussion of processes that will shape Chinese climate change policy in the years ahead.
Topic:
Climate Change, European Union, Economy, and Carbon Emissions
Political Geography:
Japan, China, Europe, Asia, and United States of America

329. China's Pandemic Diplomacy

Author:
Denny Roy
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The COVID-19 pandemic threatened to damage China’s international reputation just as the Chinese government under Xi Jinping was peaking in its promotion of China as a model political system and superior international citizen. Beijing launched a massive diplomatic effort aimed at both foreign governments and foreign societies. The goal was to overcome initial negative publicity and to recast China as an efficient and heroic country in the eyes of international public opinion. The crisis created an opening for China to make gains in its international leadership credentials as the world saw the superpower United States falter. Ultimately, however, Chinese pandemic diplomacy contributed to a net decrease in China’s global prestige, largely because domestic political imperatives motivated behavior that generated international disapproval and distrust for the Chinese Communist Party (CCP) government. This paper summarizes the content of Chinese pandemic diplomacy through the key period of January through May 20201, identifies specific strengths and weaknesses of China’s effort, and briefly assesses its global impact.
Topic:
International Relations, Diplomacy, Pandemic, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

330. Defending the Maritime Rules-Based Order: Regional Responses to the South China Sea Disputes

Author:
Rebecca Strating
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The seas are an increasingly important domain for understanding the balance-of-power dynamics between a rising People’s Republic of China and the United States. Specifically, disputes in the South China Sea have intensified over the past decade. Multifaceted disputes concern overlapping claims to territory and maritime jurisdiction, strategic control over maritime domain, and differences in legal interpretations of freedom of navigation. These disputes have become a highly visible microcosm of a broader contest between a maritime order underpinned by the United Nations Convention on the Law of the Sea (UNCLOS) and challenger conceptions of order that see a bigger role for rising powers in generating new rules and alternative interpretations of existing international law. This issue examines the responses of non-claimant regional states—India, Australia, South Korea, and Japan—to the South China Sea disputes.
Topic:
Foreign Policy, Territorial Disputes, Geopolitics, Maritime, and Jurisdiction
Political Geography:
China, Asia, North America, United States of America, and South China Sea

331. Has U.S. Government Angst over the China Danger Diminished?

Author:
Robert Sutter
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The so-called “truce” in the trade war with the signing of the phase one U.S.-China trade agreement on January 15 comes amid indicators that the intense U.S. government consensus pushback against a wide range of perceived challenges posed by China may be subsiding.
Topic:
Government, Bilateral Relations, Economy, and Trade Wars
Political Geography:
China, Asia, North America, and United States of America

332. Taiwan's 2020 Election and Its Implications for the New Southbound Policy

Author:
H. H. Michael Hsiao and Alan H. Yang
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The elections in January 2020 marked a new era for Taiwan, clearly demonstrating citizens’ resistance to China. The results showed that incumbent President Tsai Ing-wen, leader of the Democratic Progressive Party (DPP), was re-elected with a landslide victory of 8.17 million votes (57.1%) which is higher than the previous record high of 7.65 million votes obtained by the Kuomintang (KMT) President Ma Ying Jeou in 2008. Michael Hsiao and Alan Yang, Chairman and Executive Director, respectively, of the Taiwan‐Asia Exchange Foundation in Taiwan, explain that “The Taiwanese people firmly defended Taiwan’s sovereignty and cherished democracy through free and open elections.”
Topic:
Foreign Policy, Politics, Sovereignty, Elections, and Democracy
Political Geography:
China, Taiwan, and Asia

333. Pyongyang's Foreign Relations: Amidst a Diplomatic Standstill, Will Old Friendships Fade Away?

Author:
Daniel Wertz
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
North Korea’s tumultuous path over the past few years from nuclear standoff to summit diplomacy put a spotlight on Pyongyang’s bilateral relations across the Indo-Pacific. The February 2017 assassination of Kim Jong Un’s exiled half-brother at the Kuala Lumpur airport dramatized the malign aspects of North Korea’s overseas presence, and presaged Southeast Asia’s role as an important front in the incipient U.S.-led maximum pressure campaign against Pyongyang. As maximum pressure transitioned to engagement with North Korea, U.S.-DPRK summits in Singapore and Vietnam raised hopes that North Korea could follow the examples of these host nations, and move forward on a more hopeful path toward economic development and reconciliation with old adversaries.
Topic:
Foreign Policy, Diplomacy, Regional Cooperation, and Sanctions
Political Geography:
Asia, North Korea, and Pyongyang

334. Tracking COVID-19 in the Age of AI and Tech Wars

Author:
June Park
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
June Park, political economist at the National Research Foundation of Korea, explains that “even the like-minded countries of GPAI have revealed their differences and institutional variance in deploying digital technology to fight COVID-19 at a time of grave national emergency and public health crisis.”
Topic:
Science and Technology, Crisis Management, Trade, Artificial Intelligence, Pandemic, COVID-19, and Health Crisis
Political Geography:
Asia and Global Focus

335. Mongolia's Response to Increasing U.S.-China-Russia Rivalry in Asia

Author:
Alicia Campi
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Dr Alicia Campi, President of the Mongolia Society, explains that “The [“Third Neighbor”] policy was reinterpreted in content and meaning to include cultural and economic partners as diverse as India, Brazil, Kuwait, Turkey, Vietnam, and Iran. With increased superpower rivalry in its region, Mongolia has expanded this basic policy.”
Topic:
Foreign Policy, Partnerships, and Economy
Political Geography:
Russia, China, Turkey, India, Mongolia, Asia, Kuwait, Brazil, North America, and United States of America

336. Implications of the Proposed China-Iran deal for India

Author:
Sruthi V.S.
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Council on International Policy (CIP)
Abstract:
The ambitious $400 billion deal between China and Iran has garnered worldwide attention. The 18-page draft proposal says that China will facilitate the infusion of about $280 billion to Iran. This major economic and security partnership between China and Iran has raised India’s concerns against the backdrop of its ongoing border conflict with China. According to the New York Times report, the proposed China-Iran deal talks about expanding China’s presence in Iran’s “banking, telecommunications, ports, railways and dozens of other projects”, and in return China will receive a steady supply of oil from Iran for the next 25 years at a discounted price. There are more than 100 projects listed in the draft that will see Chinese investments; these include building Free Trade Zones and several very significant ports. The Chinese will also help Iran build infrastructure for 5G networks and come up with an internet filter like the Great Firewall in China. The stronghold of China in Iran could also result in undermining US policy in the Middle East.
Topic:
International Relations, Diplomacy, International Trade and Finance, and Conflict
Political Geography:
China, Iran, Middle East, India, and Asia

337. Prospects for India-Taiwan Relations

Author:
Niranjan Jose
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Council on International Policy (CIP)
Abstract:
This year’s border stand-off in the Galwan Valley between China and India following China’s encroachment into Indian territory, is a reminder of India’s perennial problems with Beijing. The latest violation is an example of the staunch stance China has adopted against India. Neither nation is interested in a full-fledged confrontation. In this scenario, New Delhi has no option but to engage with Beijing to resolve the dispute through dialogue; however discussion and confidence-building initiatives by itself will not lead India towards problem-solving. China’s confrontational approach towards India and the border disagreement set the right background as to why it could not be a better opportunity for India to meaningfully engage with Taiwan. India and Taiwan both are Asian democracies pursuing an effective resolution of dynamic social and ethnic problems, and both face aggressive Chinese security policies aimed at establishing regional hegemony. From a strategic security perspective, both India and Taiwan are deeply concerned about the rising assertiveness of Beijing in the region. The China element can become a tool for moving closer to the strategic communities in New Delhi and Taipei. India and Taiwan have a variety of mutual concerns, ranging from controlling China’s growth to a political and economic partnership. For Taiwan, China’s current trade war with the US has made several Taiwanese firms keen to reduce their vulnerability on China. Indian government initiatives such as Smart Cities, Make in India, Digital India, and Start-up India were launched to increase India’s viability for foreign investors, making it an attractive destination for Taiwanese corporations.
Topic:
International Relations, Foreign Policy, Diplomacy, and Regional Cooperation
Political Geography:
China, India, Taiwan, and Asia

338. Water Security and Disaster Management in Asia

Author:
Farwa Aamer
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
On March 2-4, the EastWest Institute (EWI) and Konrad-Adenauer-Stiftung (KAS), in concert with the Institute of National Security Studies Sri Lanka (INSSSL) and Consortium of South Asian Think Tanks (COSATT), convened a high-level dialogue entitled: “Water Security and Disaster Management in Asia” in Colombo, Sri Lanka. The dialogue, second in the project series, brought together experts from both the public and private sectors in India, Pakistan, Bangladesh, Nepal, Sri Lanka and the Maldives to jointly analyze threats to water security in Asia in the face of worsening hydro-meteorological disasters due to climate change. The two-day dialogue consisted of six panel discussions on varied topics related to the politicization of water security, including the economic vulnerabilities of the water crisis and stakeholder engagement, among others.
Topic:
Security, Climate Change, Water, and Disaster Management
Political Geography:
Asia

339. 11th U.S.-China High-Level Political Party Leaders Dialogue

Author:
Joshua Cavanaugh
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
A select delegation of leaders from the U.S. Democratic and Republican Parties and the global business community traveled to Beijing, China to meet with senior officials from the Communist Party of China (CPC) on November 18-21, 2019. The discussions were part of the 11th U.S.-China High-Level Political Party Leaders Dialogue organized by the EastWest Institute (EWI) in partnership with the International Department of the Central Committee of the Communist Party of China (IDCPC). Launched in 2010, the U.S.-China High-Level Political Party Leaders Dialogue seeks to build understanding and trust between political elites from the U.S. and China through candid exchanges of views on topics ranging from local governance to foreign policy concerns. The dialogue process consistently involves sitting officers from the CPC and the U.S. Democratic and Republican National Committees. In the 11th iteration of the dialogue, the CPC delegation was led by Song Tao, minister of IDCPC. Gary Locke, former secretary of the United States Department of Commerce, former governor for the state of Washington and former United States Ambassador of China; and Alphonso Jackson, former secretary of the United States Department of Housing and Urban Development; lead the U.S. Democratic and Republican delegations, respectively. Throughout the dialogue, members of both delegations spoke freely on relevant topics including foriegn policy trends, trade disputes and emerging areas of economic cooperation. EWI facilitated a series of meetings for the U.S. delegation, which included a productive meeting with Wang Qishan, vice president of the People’s Republic of China at the Great Hall of the People. The delegates also met with Yang Jiechi, director of the Office of the Central Commission for Foreign Affairs; Dai Bingguo, former state councilor of the People’s Republic of China; and Lu Kang, director of the Department of North American and Oceanian Affairs at the Ministry of Foreign Affairs. The U.S. delegates visited the Asian Infrastructure Investment Bank and met with their president, Jin Liqun, as well as the Schwarzman College at Tsinghua University to engage prominent scholars on the future of the U.S.-China relationship.
Topic:
Foreign Policy, Diplomacy, International Trade and Finance, and Economic Cooperation
Political Geography:
United States, China, Asia, and North America

340. A space exploration industry for India

Author:
Chaitanya Giri
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
On 16 May, the government introduced a huge reform that liberalised India's space sector, leveling the field and propelling the space ambitions of private players. Corporations such as L&T and Godrej Aerospace, can now compete and collaborate with the Indian Space Research Organisation, to build an indigenous Boeing or Lockheed Martin, and be part of global, private, space industry syndicates. The timing is significant, as the space race has accelerated with the U.S. and China marking their space territories through Accords and SEZs. India now is much better equipped to launch its space agenda. This paper analyses India's future potential.
Topic:
Space, Private Sector, and Industry
Political Geography:
China, South Asia, India, Asia, North America, and United States of America

341. China after the pandemic: Insecurity spills over to contradictory foreign policy actions

Author:
Jyrki Kallio
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
China has garnered international goodwill by aiding countries hardest hit by the Covid-19 pandemic. China is in a position to show that it takes its ideal of creating a global community with a shared future seriously. However, the country’s other actions undermine its soft-power dissemination efforts.
Topic:
International Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

342. Turkey in Africa: Chasing markets and power with a neo-Ottoman rhetoric

Author:
Toni Alaranta
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Turkey’s increasing activity in Africa is part of its new foreign policy doctrine within which Turkey is conceptualized as a global ‘order-producing’ country. The export-oriented companies supporting the AKP constantly seek new markets, and President Recep Tayyip Erdoğan wants to export his brand of Islamic-conservative ideology to other Muslim-majority countries. Turkish government officials and NGOs emphasize the historical connections between the Ottoman state and the African target countries. Turkey currently plays a key role in the internal affairs of Libya and Somalia, upholding military bases and training programmes. Turkey’s emphasis on humanitarian aid and equality, and the use of government-affiliated NGOs, have produced positive results, but the tendency to see Africa as a terrain for hegemonic power struggles against Egypt and Saudi Arabia is likely to generate negative reactions.
Topic:
Foreign Policy, Humanitarian Aid, and NGOs
Political Geography:
Africa, Europe, Turkey, and Asia

343. Eurasian Union fails a critical test: Displaying irrelevance in the time of the corona crisis

Author:
Arkady Moshes, Ryhor Nizhnikau, and Kristiina Silvan
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The pandemic is testing the effectiveness of the Eurasian Economic Union. However, its actions demonstrate the fundamental flaws of this integration project instead.
Topic:
Regional Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Asia

344. Parliamentary Oversight of Constitutional Bodies in the Maldives

Author:
Alexandra Brown, Erica Shein, and Katherine Ellena
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
International Foundation for Electoral Systems
Abstract:
After decades of power centralized in the executive, the Maldives’ 2008 Constitution introduced separation of powers and created “independent institutions to monitor the three branches of power and safeguard human rights.” The Election Commission, Anti-Corruption Commission and other independent institutions must have sufficient autonomy to operate effectively and carry out their mandates without susceptibility to undue influence. However, they are not immune from corruption, poor leadership or partisan behavior, and still require oversight to ensure accountability. Finding the correct balance between accountability and autonomy can be challenging, but it is essential to ensure that the institutions appropriately fulfill their mandates. In response to a request from Parliament, the International Foundation for Electoral Systems (IFES) conducted an extensive literature review, analyzed comparative practices and consulted stakeholders to develop a set of recommendations for effective parliamentary oversight of independent institutions. The resulting paper, Parliamentary Oversight of Constitutional Bodies in the Maldives, explores how parliamentary tools and mechanisms can be effectively tailored to provide the appropriate level of oversight. The paper has recommendations and lessons that are broadly applicable outside the Maldivian context, and helped inspire the development of IFES’ Autonomy and Accountability Framework. Because constitutional bodies have a unique role to play in bolstering good governance, any improvement to their performance will improve the quality of democracy as a whole and help prevent corruption, improve service delivery and increase transparency and rule of law. IFES’ Autonomy and Accountability Framework helps countries achieve this in practice.
Topic:
Elections, Democracy, Constitution, Transparency, Autonomy, and Parliamentarism
Political Geography:
South Asia, Asia, and Maldives

345. China’s Strategic Objectives in a Post-COVID-19 World

Author:
Benjamin Tze Ern Ho
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
On 1 October 2019, the People’s Republic of China (PRC) celebrated its 70th birthday, thus marking another important landmark of modern China under the leadership of the Chinese Communist Party (CCP). In commemorating the event, the Chinese government held a grand military parade with some 15,000 troops, more than 160 aircraft, and 580 active weapon systems during the event, including the latest generation nuclear missile systems such as the Dongfeng-41 mobile intercontinental ballistic missile. As the South China Morning Post reported, citing one insider, “the parade, which aims to showcase President Xi’s achievement in military modernization and reforms in both hardware and software will carry a lot of political meaning.” Given ongoing social protests in Hong Kong and problems in western societies at that time (such as Brexit talks in the UK and political opposition to President Trump in the United States) the contrast could not have been more stark: A powerful and prosperous China celebrates its international success while many western societies fail and flounder amidst their own domestic problems.
Topic:
Hegemony, Public Health, Strategic Competition, Pandemic, COVID-19, and Strategic Interests
Political Geography:
China and Asia

346. Dealing with China: Lessons Learned from Three Case Studies

Author:
Christopher W. Bishop
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The idea for this paper began after several conversations with Canadian friends and colleagues about the cases of Michael Kovrig and Michael Spavor. On December 10, 2018, Chinese officials detained the two Canadian citizens for “endangering state security”, 10 days after Canadian authorities arrested Meng Wanzhou, Huawei’s chief financial officer, on an extradition warrant from the United States, where she was wanted for bank fraud. Despite Chinese statements denying any connection between the two Michaels and Meng, some Canadians have argued the only way to gain their release is for Canada to release Meng – a classic “prisoner exchange”. Others, however, have argued just as forcefully that trading Meng for the two Canadians would only give legitimacy to China’s “hostage diplomacy”. One friend asked me if China had ever done anything like this before. How had those cases been resolved, and what would China do this time? Those were good questions. As a U.S. Foreign Service officer who has spent much of my career working on China – including at the U.S. embassy in Beijing from 2015-2018, where I analyzed the Communist Party leadership and China’s state security apparatus – I had some insight into Chinese foreign policy. I also had a personal connection to one of the cases. I knew Michael Kovrig – he had been one of my counterparts at the Canadian embassy in Beijing – and I had great respect for his work as a diplomat, and later as a senior advisor at the International Crisis Group. Moreover, because I was now on leave from the U.S. Department of State to serve as a Council on Foreign Relations International Affairs Fellow in Canada, I had time to look for some answers. And so I began trying to identify and analyze similar cases from the recent past. This paper is the result. It represents my own views, and although the Department of State has allowed me to publish it in my personal capacity, it does not necessarily reflect the views of the Department or the U.S. government.
Topic:
Foreign Policy, Diplomacy, International Affairs, Prisons/Penal Systems, and Finance
Political Geography:
China, Canada, Asia, North America, and United States of America

347. Assessing Asia: Sub-Saharan Africa Global Value Chain Linkages

Author:
Heiwai Tang, Douglas Zhihua Zeng, and Albert Zeufack
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the relationship between Asia’s economic engagements in Africa and individual African nations’ participation in global value chains (GVC) over the past two decades. We find that while overall exports from Africa to Asia are still highly concentrated in resource-intensive sectors, a few African countries have exploited the emerging opportunities to diversify export portfolios through exporting to Asia. Each African nation has a distinct main trade partner in Asia, in contrast to the common view that China has become the dominant trade partner of most African nations. Using a panel data set for 46 African countries over 16 years from 2000 and 2015, we find that exports to Asia are positively correlated with exports to the rest of the world, suggesting that in contrast to trade diversion, trade with Asia complements exports to other countries. Asian economic engagement in the continent is associated with countries’ exports “moving up the value chain”, as measured by the upstreamness index proposed by Antras et al. (2012). However, such process was accompanied by a reduction in the length of their production chains, implying that fewer stages and countries are now involved in the production of exported goods.
Topic:
Development, International Political Economy, Natural Resources, Partnerships, Exports, Trade, Global Value Chains, and Data
Political Geography:
Africa, Asia, and Global Focus

348. COVID-19 Pandemic’s Impacts on China’s Energy Sector: A Preliminary Analysis

Author:
Kevin Tu
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The novel coronavirus (COVID-19) pandemic is inflicting high human costs in China and around the world. The stringent quarantine measures imposed by the Chinese government have severely affected the country’s economic activity, with profound energy and climate implications
Topic:
Climate Change, Energy Policy, Environment, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

349. Is China Still a Developing Country? And Why It Matters for Energy and Climate

Author:
Philippe Benoit and Kevin Tu
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
China’s dramatic economic growth in the 21st century has made it not only the second largest economy in the world but also a powerhouse in the global energy system. Now, as the top energy consumer and the biggest emitter of greenhouse gases, China is being closely watched and judged as its impact on energy markets and climate grows more profound. Looking forward, many issues are expected to shape the evolution of China’s energy sector, not least of which is its development status. While China’s economic might makes it a superpower alongside the United States, it still faces many of the major challenges of a typical developing country, such as widespread energy poverty, including 400 million people without access to clean cooking, significant air pollution, and dependence on increasing energy use to fuel future economic growth. Its modest income per capita qualifies it as a middle-income developing country. Evaluating China’s development status is not just an academic exercise. How China views itself and its challenges and how the international community classifies it carry real-world consequences that can significantly impact how the country manages its energy needs going forward, what fuels it uses, how it interacts with energy and other partners, and the level of its contributions and commitment to climate change mitigation and adaptation efforts worldwide. Understanding the nature and implications of China’s development situation can help in designing energy policies and fostering an international framework that better promote sustainable growth both within the country and globally. This paper examines how the usual criteria employed by international organizations to determine a country’s development standing have become increasingly difficult to apply to China, given the dramatic changes it has undergone over the past several decades, notably from an energy perspective. The paper finds that China combines significant characteristics of both developing and developed countries and examines the energy and environmental implications of this hybrid status.
Topic:
Climate Change, Development, Energy Policy, and Environment
Political Geography:
China and Asia

350. Green Stimulus Proposals in the United States and China

Author:
David B. Sandalow and Xu Qinhua
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
On June 14, 2020 New York time and June 15, 2020 Beijing time, the Center on Global Energy Policy at Columbia University and Center for International Energy and Environment Strategy Studies at Renmin University convened a joint Zoom workshop on green stimulus programs in the US and China. The workshop offered a chance for scholars from the two universities to explore the recent economic downturn due to the COVID-19 pandemic, stimulus measures adopted to date and green stimulus proposals in both countries. Participants also discussed other measures to promote clean energy and low-carbon development in the US and China.
Topic:
Climate Change, Energy Policy, Environment, Green Technology, and Paris Agreement
Political Geography:
China, Asia, North America, and United States of America

351. Trends and Contradictions in China’s Renewable Energy Policy

Author:
Anders Hove
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
China is the world’s leader in wind and solar power, although new capacity is being added more slowly than several years ago. Meanwhile, a wave of coal power plant approvals and fewer public mentions of urban air pollution and climate change have raised questions about the future of China’s renewable power sector in the wake of Covid-19. In this commentary, Anders Hove examines China’s recent energy policy announcements and their implications for the 14th Five-Year Plan, which will set energy policy for the period from 2021–2025. He argues that the future of renewable energy deployment in China will be shaped by an ongoing contradiction within the power sector between long-term market-oriented reforms on the one hand and short-term administrative planning on the other. This contradiction is well represented in two draft laws issued in April and June 2020: the draft Energy Law and the draft Guiding Opinion on Establishing a Clean Energy Consumption Long-Term Mechanism. The former states that the country should prioritize development of renewable energy by opening the market to more players, while the latter puts grid companies, provincial officials, and incumbent generation companies in charge of all aspects of planning and target-setting. The ways in which this contradiction will be resolved are unclear. China’s central government remains focused on promoting markets in the longer term, in part based on market models that have worked in Europe and the US, so international lessons and experiences could play a role. China’s power reform could benefit from a greater focus on including consumers and other market players, and greater emphasis of long-term over short-term planning. Such a shift would help ameliorate the current trend of over-investment in unneeded and uneconomic coal capacity at the expense of renewables.
Topic:
Energy Policy, Renewable Energy, Wind Power, and Solar Power
Political Geography:
China and Asia

352. Reform Is in the Pipelines: PipeChina and the Restructuring of China’s Natural Gas Market

Author:
Erica Downs and Sheng Yan
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Beijing launched the most ambitious reform of China’s oil and natural gas industry in more than two decades with the establishment of the China Oil & Gas Piping Network Corporation (PipeChina) last December. The company is being developed from midstream assets—pipelines, liquified natural gas (LNG) import terminals, and storage facilities—and personnel transferred from China’s national oil companies (NOCs). Beijing expects that its goals of increasing China’s domestic and imported natural gas supplies and consumption will be more effectively advanced by having China’s midstream infrastructure owned and operated by a single company that provides fair and open access to its pipelines, LNG import terminals, and storage facilities instead of by three NOCs reluctant to grant third-party access to infrastructure.
Topic:
Energy Policy, Natural Resources, Gas, and LNG
Political Geography:
China and Asia

353. Shifts in Global Sanctions Policy, and What They Mean for the Future

Author:
Richard Nephew
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The last four years have borne witness to a range of new sanctions, policies, and approaches around the world. Some of these were predicted in November 2016, as Donald Trump took to sanctions far more than his predecessors, using them to tackle virtually every foreign policy problem he encountered. In fact, Trump’s use of sanctions transcended their typical usage in both form and content, as he employed tariffs and other more traditional “trade” tools to try to manage a bevy of nontrade problems. The long-term effects of this decision have yet to be felt or properly understood. It may be that Trump was ahead of the curve in seeing the fracturing of the global liberal economic order and employed the US economy for strategic advantage while it was still ahead. It may also be that Trump undermined the US position in the global economy through his policies, if not actually hastened the demise of this system of managing global economics. Time and the evolution of policy in other global power centers will eventually tell. The shifting approach to sanctions policy by a variety of other states is a manifestation of the potential effects of Trump’s policy choices in using US economic power. From the EU to Russia to China, other countries have changed long-standing policy approaches as they relate to sanctions, either to respond to or perhaps to take advantage of the new paths forged by the United States. The actions that they have taken are not “unprecedented” per se, as each of these countries or organizations has—at times—embraced policies that are consistent with some of these current actions. But, in aggregate, they describe an overall shift in how the world treats sanctions and trade policy, particularly that as practiced by the United States.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Sanctions
Political Geography:
China, Europe, Asia, North America, and United States of America

354. How the US and China Could Renew Cooperation on Climate Change

Author:
Aimee Barnes, Fan Dai, and Angela Luh
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Averting global climate catastrophe depends in large part on progress by the world’s two greatest powers and emitters: the United States and China. However, relations between these two countries—particularly on climate action—have deteriorated over the past four years. With a new presidential administration set to enter the White House in January 2021, there is an opportunity for the US and China to build trust and cooperation on climate change in a way that supports a cooperative and dynamic bilateral relationship more broadly. This commentary takes a close look at the Biden-Harris presidential platform with respect to climate action and China, and assesses China’s domestic and international climate efforts, particularly with respect to the status of its 14th Five-Year Plan. Importantly, what emerges from this examination is a starting point for China and the US to improve their relationship through climate action and collaboration. China’s announcement that it would seek to achieve carbon neutrality by 2060 is an important step towards such cooperation.[1] The most promising potential areas for US-China cooperation fall into three broad categories: renewing a shared commitment to global climate governance under the Paris Agreement; building trust to enable renewed bilateral cooperation, such as on technology innovation and investments; and supporting subnational leaders' progress in both countries through platforms where they can productively convene. Recognizing that a climate-safe future is bound up in our mutuality, these two world powers can promote a new era of climate action and resiliency.
Topic:
Climate Change, Diplomacy, Energy Policy, Environment, and International Cooperation
Political Geography:
China, Asia, North America, and United States of America

355. Forums, Fees and Data Flows: Coordinating Mining and Water Policy in Mongolia

Author:
Mirja Schoderer and Ines Dombrowsky
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Mineral and metal extraction threatens water quantity and quality in Mongolia. While good legal provisions for coordination exist, a lack of stakeholder involvement, data availability, human and financial capacity, and general transparency and accountability hinder their implementation.
Topic:
Natural Resources, Water, Accountability, Mining, and Transparency
Political Geography:
Mongolia and Asia

356. Broadening the Transatlantic Partnership to Address the China Challenge

Author:
Carisa Nietsche
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The COVID-19 pandemic has been a turning point in Europe’s calculus regarding China. Beijing’s ham-fisted mask diplomacy, attempt to rewrite the pandemic’s origins and use of the World Health Organisation to advance the objectives of the Chinese Communist Party (CCP) underscored for Europe the nature of Beijing’s objectives. Europe has grown more attuned to the “strategic challenge” China poses in the economic, technology and global governance realms as a result. The growing convergence between US and European perspectives on China provides a solid foundation for future cooperation between the transatlantic partners. Yet, addressing the China challenge will require broadening beyond the transatlantic partnership and bringing Indo-Pacific partners to the table.
Topic:
Foreign Policy, Communications, Partnerships, Cybersecurity, Transatlantic Relations, Pandemic, and COVID-19
Political Geography:
China, Europe, Asia, and United States of America

357. Italy, Atlanticism and the Biden Administration: Greater Convergence to Defuse Ambiguity on China

Author:
Dario Cristiani
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In September 2019, the once anti-establishment Five Star Movement (Movimento Cinque Stelle – M5S) agreed to enter a ruling alliance with the Democratic Party (Partito Democratico – PD).[1] By establishing this “yellow-red” coalition government with what was considered its political nemesis, the M5S managed to preserve its presence in power and avoid early elections. However, its influence gradually weakened, as attested to by poor performances in local elections. The M5S’s declining political fortunes and the changing composition of the government have a significant foreign policy dimension, especially if addressed through the lens of Italy–US relations. The PD is a solidly pro-Atlanticist party in Italy. The M5S, despite its evolution towards greater pragmatism over the years, remains a source of concern, being still perceived as the most pro-China actor within the Italian political landscape.
Topic:
Foreign Policy, Defense Policy, Geopolitics, and Transatlantic Relations
Political Geography:
China, Europe, Asia, Italy, and United States of America

358. Global Financial Imbalance: Firm-level Evidence from Korea

Author:
Tae Soo Kang, Kyunghun Kim, and Yuri Kim
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the global financial crisis, low interest rates have continued throughout the world. However, financial imbalance has deepened as much of the expanded investment during low interest rates did not lead to increased productivity. This study focused on the increase of marginal firms as a result of the adverse effects of financial imbalances on firms. The marginal firms were identified based on the company's financial statement, and the share of marginal firms by country was compared and analyzed using Worldscope data. As a detailed analysis on the marginal firms, the impact of borrowing interest rate on the possibility of becoming a marginal company was analyzed in the case of Korea with KED data. According to the international comparison, East Asia including Korea, China and Japan has shown a lower share of marginal companies than Europe, South Asia and Latin America. Empirical results through Panel Logit with Sector Fixed Effect Model show that the borrowing rate has a negative correlation with the probability the company will become a marginal company in the case of Korea. However, the impact of an increase in borrowing rates on the likelihood of becoming a marginal company depends on the degree of financial vulnerability. Specifically, an increase in the borrowing rate has a greater impact on the possibility to become ICR<1 in the companies with higher financial vulnerability indexes.
Topic:
Financial Crisis, Business, and Business Management
Political Geography:
Asia and South Korea

359. Defined Contribution Funded Social Security and Labor Supply: Focus on Mexican Social Security Reform in 1997

Author:
Sungwoo Hong
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Countries adopting a defined benefit pay-as-you-go (DB PAYG) regime have two options to solve the issue of financial unsustainability: (1) a parametric reform, which alters policies within DB PAYG regime, and (2) a structural reform, which changes the regime from DB PAYG to a defined contribution funded (DC) system. In this study, focusing on the structural reform of Mexico in 1997, I investigate whether structural social security reform affects labor supply. The findings suggest that the change in the social security regime increased both labor force participation and work hours per week. However, in the case of the elderly, the intensive margin effect on labor supply was not statistically significant.
Topic:
Reform, Tax Systems, Social Security, and Labor Market
Political Geography:
Asia, Korea, and Mexico

360. Bargaining and War: On the Communication Equilibrium in Conflict Games

Author:
Youngseok Park and Colin Campbell
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We present a version of Baliga and Sjostrom’s (2012a) conflict games with two asymmetric players. The players contemplate whether to take an active engagement action to compel the leader of a neighboring state (an extremist) to give up his risky weapons. We show that a player with greater damage from the extremist is more likely to choose an active engagement action than a player with lesser damage. Furthermore, we examine cheap-talk communication equilibria with the extremist. The likelihood of both players choosing the active engagement action decreases by a hawkish extremist who can send a provocative message, if both players are coordination types. If both players are opportunistic types, a dovish extremist can send an appeasement message that causes one player to be more active while another to be more inactive. Lastly, we show that there does not exist any other communication equilibrium for either kind of extremist, for any other combination of player types.
Topic:
Political Economy, International Security, and Conflict
Political Geography:
Asia, Korea, and Global Focus

361. Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Author:
Hanbyul Ryu and Young Sik Jeong
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.
Topic:
Development, Foreign Direct Investment, and Labor Market
Political Geography:
China, Asia, and Korea

362. COVID-19: In Search of Solutions for Maritime Supply Chains

Author:
Chin Yim Leng
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
The outbreak of the COVID-19 pandemic has had a remarkable impact on maritime supply chains. Since its first case in the capital of China’s Hubei province, Wuhan, Chinese seaborne trading activities were greatly affected – reports of weakening manufacturing confidence, decreasing demand for non-essential goods worldwide, and reduced workforce has surfaced since the massive transmission of COVID-19 in January 2020. Many European and Asian countries, including the United States, have responded to the pandemic in March 2020 by imposing strict containment measures. The implementation of national lockdowns or movement restrictions in pandemic-affected countries has led to rapid contractions in maritime supply chains. The wide-ranging impacts of COVID-19 on manufacturing and trading demands have created the need for different importing speeds based on essentiality, thus deteriorating the maritime supply chains. Governments and relevant authorities, as well as private entities, should take initiatives to ensure that maritime supply chains remain fully functional for national and commercial interests as the COVID-19 pandemic progresses. It could be ideal to adopt digitalisation and blockchains as these digital processes are easy to access and control in optimising the efficiency of maritime supply chains amidst the unprecedented COVID-19 pandemic.
Topic:
International Trade and Finance, Maritime, Pandemic, COVID-19, and Supply Chains
Political Geography:
China and Asia

363. Impact of US-China Trade Tensions, the Coronavirus, and the Plunge of Oil Prices on the Malaysian Maritime Transportation Industry

Author:
Ang Chin Hup
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
Malaysia’s maritime transportation industry has seen growth from the benefits of the nation’s strategic location, well-developed infrastructure, and buoyant economy. Recently, this growth has lost its momentum since it became affected by the US and China trade tensions, the Coronavirus pandemic, and the plunge in oil prices. The trade tensions affected Malaysia’s ports handling exports to China. The plunge of oil prices affects demand for bunker oil due to reduced shipping activities. Meanwhile, the Coronavirus pandemic has disrupted port operations. As solutions for these impacts, this paper recommends a diversified supply chain, logistics-centric port, a comprehensive bunkering strategy, and strict compliance to IMO’s conventions.
Topic:
International Trade and Finance, Oil, Pandemic, Industry, COVID-19, and Energy
Political Geography:
Malaysia and Asia

364. Geo-Economic Impact of COVID-19 on the Maritime Sector in Malaysia

Author:
Sumathy Permal and Norsyihan Jamal
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
The cascading effect of the novel coronavirus (Covid-19) that originated in Wuhan, China, is producing widespread reverberations around the globe and impacting almost every facet of life as we know it today. This article discusses the impact of Covid-19 on the geo-economics and maritime sector of Malaysia. A study by McKinsey states that the pandemic is expected to peak in the US and Europe in May 2020 and, as such, its full-fledged impact has not yet been felt. The pandemic has a corresponding effect on the global economy, which is expected to suffer major declines in consumption and production throughout the year. The global supply chain has been hard-hit with dire consequences for international trade and the shipping industry.
Topic:
Economics, International Trade and Finance, Maritime, Pandemic, COVID-19, and Supply Chains
Political Geography:
Malaysia and Asia

365. China’s responsibility for the Covid-19 pandemic: An international law perspective

Author:
Katja Creutz
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The coronavirus pandemic has roiled international relations. The huge global toll of the pandemic, both in terms of deaths and economic implications, has raised the question of Chinese responsibility. This Working Paper analyzes China’s responsibility for Covid-19 under international law. In order for state responsibility to arise, China must have committed an internationally wrongful act. The conduct must be attributable to China and must constitute a breach of its international obligations. An analysis of the timeframe concerning the main measures undertaken by Chinese authorities at different government levels shows a lag in reporting the outbreak to WHO according to the International Health Regulations. Hence, there appears to be a case for injured states to invoke China’s responsibility. The prospects for implementation are nevertheless bleak. A tacit understanding seems to prevail among states not to pursue the spread of pathogens in terms of legal responsibility or litigation. Whether major power rivalry or the enormous costs of the pandemic will change this non-confrontational tradition of dealing with pathogens remains to be seen.
Topic:
Leadership, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

366. Great-power competition and the rising US-China rivalry: Towards a new normal?

Author:
Bart Gaens and Ville Sinkkonen
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The United States and China are posited to be at the epicenter of an emerging and – by most accounts – intensifying rivalry. This report delves into the theoretical underpinnings as well as the geostrategic and geo-economic dynamics driving this great-power competition. It explores future prospects for contestation and engagement in key issue areas, such as arms control, trade and sanctions. The chapters in this volume also examine the Indo-Pacific as the immediate regional frontline of the unfolding great-power contest and explore the role that Europe has to play in this game. As the world is crossing the threshold into a new age of great-power competition, the debate on the US-China rivalry reveals the complex and contested nature of the meanings, causes, policy implications and future prospects of what is set to become the “new normal” in global politics.
Topic:
Hegemony, Geopolitics, Conflict, and Rivalry
Political Geography:
United States, China, Asia, and North America

367. Turkey and the post-pandemic world: What kind of revisionism?

Author:
Toni Alaranta
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
This study analyzes Turkish foreign policy narratives generated by the Covid-19 pandemic, and their intellectual and political context provided by Western debates. The approach is based on the assumption that the narratives about the pandemic provide an interesting window through which to observe the long-term fears and hopes concerning international politics in Turkey. The study utilizes Steven Ward’s conceptualization of distributive and normative revisionism as a theoretical framework for analyzing Turkey’s increasingly assertive foreign policy. It also discusses the analytical limits of this concept by introducing the idea of revisionism as a familiar narrative trope in Western International Relations scholarship. The study demonstrates that while Turkey remains loosely attached to its traditional commitment to defend the existing order, it increasingly expresses its dissatisfaction within that order, sometimes pushing it to the limits, and taking action that could even be defined as normative, or radical, revisionism.
Topic:
Foreign Policy, Public Health, Pandemic, COVID-19, and Revisionism
Political Geography:
Europe, Turkey, and Asia

368. Iran’s foreign policy: Buying time until the US presidential elections

Author:
Mariette Hagglund
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
A key issue dominating Iran’s foreign policy agenda is the future of the Iran nuclear deal with regard to the next US president. Non-state armed groups mark the core of Iran’s leverage in the region, but Iran is currently looking into diversifying its means of influence. Although Iran considers its non-aligned position a strength, it is also a weakness. In an otherwise interconnected world, where other regional powers enjoy partnerships with other states and can rely on external security guarantors, Iran remains alone. By being more integrated into regional cooperation and acknowledged as a regional player, Iran could better pursue its interests, but US attempts to isolate the country complicate any such efforts. In the greater superpower competition between the US and China, Iran is unlikely to choose a side despite its current “look East” policy, but may take opportunistic decisions.
Topic:
Security, Foreign Policy, Military Strategy, and Elections
Political Geography:
United States, China, Iran, Middle East, Asia, and North America

369. Is China preparing to invade Taiwan? The time may be opportune, but the overall situation is not

Author:
Jyrki Kallio
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Speculation is rife that China could take advantage of the potential confusion during the US presidential election and invade Taiwan. Although China has never relinquished the military option for resolving the Taiwan issue, there are sound reasons to downplay the risk of a military confrontation at the present time.
Topic:
War, Military Strategy, Elections, and Conflict
Political Geography:
United States, China, Taiwan, Asia, and North America

370. Digital authoritarianism in China and Russia: Common goals and diverging standpoints in the era of great-power rivalry

Author:
Elina Sinkkonen and Jussi Lassila
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
China and Russia are jointly advancing their shared interests in the international arena and are building up cooperation in the tech sector. Despite far-reaching plans, the asymmetry of cooperation in favour of China is increasingly at odds with Russia’s national goals in digital technology. Differences in resources and standpoints are also reflected in the implementation of digital surveillance. China’s surveillance system is sophisticated and extensive whereas Russia’s is largely inconsistent and emerging, as evidenced by the fact that there was virtually no control of the internet in Russia until 2012. While advanced surveillance in authoritarian countries is worrying, technology in strategic sectors is also a key field of increasingly disconcerting great-power competition. As a result of strategic competition, the world is faced with the risk of technological decoupling, which would contribute to further fragmentation of the international community and deepening of existing rivalries.
Topic:
Science and Technology, Authoritarianism, Digital Economy, and Surveillance
Political Geography:
Russia, China, Europe, and Asia

371. Uzbekistan’s new Central Asia policy: The economic rationale and political implications of good neighbourliness

Author:
Kristiina Silvan
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Under the leadership of President Shavkat Mirziyoyev, Uzbekistan has embarked on a moderate reform programme that aims to achieve socio-economic growth without undoing the country’s authoritarian political system. The programme has implications beyond Uzbekistan’s borders because it has changed the way Uzbekistani foreign policy is formulated and implemented. Uzbekistan’s former isolationist stance has shifted to a foreign policy opening, which is most noticeable in the improvement of its relations with its neighbours. This Working Paper analyzes “good neighbourliness”, the key concept of Uzbekistan’s new Central Asia policy. It details the amendment of Uzbekistan’s bilateral relations with its neighbours and points to the positive reception of Uzbekistan’s new regional policy in Russia, China, and the West. The paper argues that while “good neighbourliness” is a pragmatic strategy rooted in economic rationality, the policy’s regional implications are substantial. It is laying the necessary foundation for sustainable Central Asian co-operation from within in a way that is acceptable to the Central Asian states and big non-regional actors alike.
Topic:
Regional Cooperation, Bilateral Relations, Authoritarianism, Reform, and Leadership
Political Geography:
Russia, China, Europe, Central Asia, Asia, and Uzbekistan

372. Estimating the Arms Sales of Chinese Companies

Author:
Nan Tian and Fei Su
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
Quantitative research on the finances of the Chinese arms industry has been limited by the scarcity of available data. A scoping study to estimate the financial value of the arms sales of companies in the Chinese arms industry—using a new methodology—found information on four companies: the Aviation Industry Corporation of China (AVIC), the China Electronics Technology Group Corporation (CETC), the China South Industries Group Corporation (CSGC) and the China North Industries Group Corporation (NORINCO). These four companies cover three main sectors of conventional arms production: aircraft, electronics and land systems. The estimates suggest that China is the second-largest arms producer in the world, behind the United States and ahead of Russia. All four of the profiled companies would be ranked among the 20 largest arms-producing and military services companies globally in 2017, with three—AVIC, NORINCO and CETC—in the top 10. The new methodology improves the understanding of the structure, size and evolution of the global arms industry.
Topic:
International Trade and Finance, Weapons, Arms Trade, and Military Spending
Political Geography:
China and Asia

373. From Critical Engagement to Credible Commitments: A Renewed EU Strategy for the North Korean Proliferation Crisis

Author:
Antoine Bondaz
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
The North Korean nuclear and ballistic missile crisis is the most serious proliferation crisis the European Union (EU) and its member states currently face on the world stage. Despite the staging of diplomatic meetings, the threat caused by this crisis to European interests, in terms of proliferation, instability and to prosperity, persists. It is now essential that the EU and its member states move from a strategy of critical engagement to implementing a more proactive strategy of credible commitments in four areas: political engagement, non-proliferation, the implementation of restrictive measures and engagement with the North Korean people. Such a renewed strategy should be highly coordinated, build on the many initiatives already being taken and facilitated by the appointment of an EU Special Representative on North Korea.
Topic:
Arms Control and Proliferation, Nuclear Weapons, European Union, Disarmament, and Engagement
Political Geography:
Europe, Asia, and North Korea

374. EU Security Perspectives in an Era of Connectivity: Implications for Relations with China

Author:
Ian Anthony, Jiayi Zhou, and Fei Su
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
This SIPRI Insights Paper assesses EU security perspectives on connectivity, alongside and in relation to its evolving relationship with China. The EU’s relations with China have undergone an important shift in recent years, with a strengthened emphasis by the EU on the challenges to bilateral cooperation. In addition, since 2014, EU and EU member states’ security perspectives have undergone a wider reassessment, one that has increased the prominence of the military dimensions of connectivity, including military mobility, in EU security planning. The EU and China are currently pursuing synergies between their separate connectivity initiatives, namely the Belt and Road Initiative and the Connecting Europe programme. However, there remain barriers to sustainable cooperation that will need to be addressed between them moving forward. This Insights Paper outlines a number of those security concerns from the EU perspective, within the transport and digital sectors specifically.
Topic:
Security, International Cooperation, Bilateral Relations, European Union, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, and Asia

375. Beyond Corona: Getting EU Economic Security Right

Author:
Tobias Gehrke
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The corona crisis, the US-China great power competition and lacklustre international rules vividly demonstrate the vulnerability of economic interdependence. Interdependence is a power struggle, not a mutual aid society. For the vast benefits of a globalised economy to continue to outweigh its risks, policies to build greater resilience are necessary. For the EU, the unprecedented events also offer an opportunity to forge a new economic security approach to better manage its dependencies in strategic sectors.
Topic:
Security, International Cooperation, Europe, Public Health, Pandemic, and COVID-19
Political Geography:
United States, China, Europe, Asia, and North America

376. Post-workshop Briefing Paper: Preventing a COVID-19 Crisis in Africa

Author:
Atif Choudhury, Yawei Liu, and Ian Pilcher
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
In May 2020, the Carter Center’s China Program partnered with the China Institutes of Contemporary International Relations (CICIR) and the South African Institute of International Affairs (SAIIA) to organize a virtual workshop on Africa-U.S.-China cooperation on COVID-19 response. The workshop brought together a range of experts from the U.S, China, Ethiopia, Burundi, Kenya, and South Africa to discuss the public health impact and wider policy implications of the COVID-19 pandemic on the African continent. Emory University’s Global Health Institute and The Hunger Project also helped identify speakers and moderate panels.
Topic:
International Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:
Kenya, Africa, United States, China, Asia, South Africa, North America, Ethiopia, and Burundi

377. Scaling up Private Investment in Low-Carbon Energy Systems through Regional Cooperation: Market-Based Trade Policy Measures

Author:
Kaliappa Kalirajan, Huong Thi Thu Tran, and Yochang Liu
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study aims to analyse the possibility and challenges of encouraging private sector investment in low-carbon energy systems in Asia, particularly across the Regional Comprehensive Economic Partnership (RCEP) member countries, and to suggest an effective policy framework that governments could apply to improve the development and dissemination of low-carbon energy goods and technologies. The research questions examined in this study are: What type of policy measures affect trade in low-carbon energy systems transition, particularly the renewable energy transition? How can investment signals and incentives be reframed to scale up private finance in renewable energy through regional cooperation? The objective is to investigate and provide several market-based feasible trade policy and investment policy tools for both national and regional markets that governments could adopt to accelerate the speed of private financing of the low-carbon energy industry, particularly the renewable energy industry.
Topic:
Energy Policy, Markets, Trade, and Renewable Energy
Political Geography:
South Asia, East Asia, Asia, and Southeast Asia

378. Enhancing Inter-Firm Linkages through Clusters and Digitalisation for Productivity Growth

Author:
Vo Tri Tranh
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the policies for industrial cluster development in Viet Nam. The first export processing zone was established in 1991. Since 1994, Viet Nam has focused more on developing domestic productive capacity and thus various types of industrial estates were established. The key actors in industrial cluster policy are the government, Prime Minister, ministries, provincial people’s committees, and management boards of industrial and economic zones. The choice of industrial estate is often determined by factors such as geographic location, land, labour, infrastructure, industry, business environment, and incentives. Viet Nam has provided various incentives to industrial estates of various types, but the scope and extent of preferential policy support for firms in general and those operating in industrial and economic zones are rather modest. The industrial estates have contributed significantly to attracting foreign direct investment, to exports, to productivity improvement, etc. Looking forward, Viet Nam needs further efforts on industrial cluster development, including development of statistics, analysis of cluster policy impacts, and provision of FTA-consistent incentives.
Topic:
Development, Industrial Policy, Governance, Leadership, and Management
Political Geography:
Asia and Vietnam

379. Unlocking the Potential of Private Financing for Low-carbon Energy Transition: Ideas and Solutions from ASEAN Markets

Author:
Venkatachalam Anbumozhi
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Under the Paris Agreement in 2015, the opportunities for the ASEAN Member States (AMS) to maximise low-carbon energy sources to achieve the Nationally Determined Contributions (NDC) target in reducing carbon emission levels have expanded. In order to move towards a low-carbon energy transition, private sector actors must work together with governments to implement strategies to invest in the low-carbon economy. However, major barriers such as insufficient enabling policy environment, availability of technologies and access to funding somehow impede the implementation. It is believed that unlocking the potentials of private sector would accelerate the transition of low-carbon energy. This paper, based on a market survey, which aimed to identify barriers and risks that private sectors face in accelerating the low-carbon investments. The survey respondents are divided into two categories, Lenders and Borrowers. Analysing 110 total respondents helped to identify the perceived and actual barriers as well as risks underlying to the access to financing and generated potential solution for policymakers to overcome these barriers. The survey results indicate that the main obstacles faced by private sectors are incoherent policies that created a high-risk environment for investment, a lack of access to de-risking mechanisms, and insufficient capacity to communicate the opportunities amongst financial institutions and project developers. To bare these risks, this paper suggests four interdependent solutions – establishment of a low-carbon transition fund, government warranty programme, broadening of de-risking mechanisms, and capacity building programme to accelerate the low-carbon energy transition across ASEAN.
Topic:
Energy Policy, Finance, Renewable Energy, and Private Sector
Political Geography:
Asia and Southeast Asia

380. Does Home (Output) Import Tariff Reduction Increase Home Exports? Evidence from Korean Manufacturing Plant–Product Data

Author:
Chin Hee Hahn and Ju Hyun Pyun
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the effects of domestic output import tariff reduction on domestic plant export dynamics and clarifies the underlying mechanism, using rich plant–product data from the Republic of Korea for 1991–2002. We find that home import liberalisation increases domestic plants’ export market participation (extensive margins), particularly for industry where markup growth is more negative during tariff reductions. However, we do not find evidence that cutting import tariffs significantly affects incumbent home exporters’ export volume (intensive margins). This study unveils a new mechanism – ‘escape competition’ to foreign markets – by showing that reducing import tariffs leads domestic firms under heightened industry competition to look for an opportunity in foreign markets via export inauguration.
Topic:
Markets, Tariffs, and Imports
Political Geography:
Asia and South Korea

381. Effectiveness of Industrial Policy on Firms’ Productivity: Evidence from Thai Manufacturing

Author:
Juthatip Jongwanich and Archanun Kohpaiboon
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the role of industrial policy on firms’ productivity, using 3 years of panel data on Thai manufacturing as a case study. A range of industrial policy tools is defined – tariff measures, subsidies, and investment incentives through the Board of Investment (BOI) – which are the main tools used in Thailand. The effect on firm productivity of partial trade liberalisation undertaken through free trade agreements (FTAs) signed between Thailand and its trading partners is also examined. The key finding is that trade openness and research and development (R&D) are more crucial in fostering firms’ productivity than industrial policies. This is especially true for the narrow definition of industrial policy focusing on trade policy protection, measured by the effective rate of protection. In addition, the FTA-led trade liberalisation effect fails to add substantial competitive pressure and make firms improve productivity. Our results show that sectors benefiting from subsidies show noticeably lower productivity than others. Our study found weak support for investment promotion policy through the BOI, even when the domestic competitive environment is considered in our analysis.
Topic:
Industrial Policy, Manufacturing, and Productivity
Political Geography:
Asia and Thailand

382. Input Allocation Behaviour on Tariff Changes: The Case of Indonesia’s Manufacturing Industries

Author:
Samuel Nursamsu, Dionisius Narjoko, and Titik Anas
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Can firms reallocate their imported inputs to domestic sources when faced with import tariffs? To answer this question, we analyse the input allocation behaviour of Indonesian medium and large-sized manufacturing firms in responding to the movement of import tariffs from 2000 to 2013 by utilising plant-level input data of Indonesian manufacturing. We find that an increase in tariffs only creates a weak substitution effect. Our findings indicate that firms reallocate their inputs towards domestic sources, although this is accompanied by a decrease in the firms’ value added. This implies that domestic inputs are worse substitutes for imported inputs and that firms’ capacity to switch over to domestic products is limited, suggesting that firms will immediately switch back to importing when the tariff is removed. We find no evidence that firms make any adjustment towards more domestic-oriented input composition over time; and heterogeneity exists within the result, as industries with a strong basis in the domestic market are more capable of adjusting.
Topic:
Industrial Policy, International Trade and Finance, Tariffs, and Manufacturing
Political Geography:
Indonesia and Asia

383. Foreign Direct Investment and Labour Market Dynamics in a Developing Country: Evidence from Indonesian Plant-Level Data

Author:
Toshiyuki Matsuura and Hisamitsu Saito
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the impact of inward foreign direct investment on the wages and employment of skilled and unskilled workers in Indonesian manufacturing plants. Entry of multinational enterprises affects local labour markets through spillovers as well as labour and product market competition. Our results show that spillovers increase the labour demand of local plants for unskilled workers, but increased wages due to severe labour market competition reduce the demand for skilled workers. We also find that product market competition causes resource reallocation from low- to high-productivity plants. Thus, attracting inward foreign direct investment effectively enhances aggregate productivity growth, but may retard the transition to skill-intensive production in Indonesian manufacturing.
Topic:
Development, Foreign Direct Investment, Manufacturing, and Labor Market
Political Geography:
Indonesia and Asia

384. Learning-to-Export Effect as a Response to Export Opportunities: Micro-Evidence from Korean Manufacturing

Author:
Chin Hee Hahn and Yong-Seok Choi
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper aims to investigate whether empirical evidence supports the learning-to-export hypothesis, which has received little attention in the previous literature. By taking full advantage of plant–product level data from the Republic of Korea during 1990–1998, we find some evidence for the learning-to-export effect, especially for innovated product varieties with delayed exporters: their productivity, together with research and development and investment activity, was superior to their matched sample. On the other hand, this learning-to-export effect was not significantly pronounced for the industries protected by import tariffs. Thus, our empirical findings suggest that it would be desirable to implement some policy tools to promote the learning-to-export effect, while tariff protection cannot be justifiable for that purpose.
Topic:
Industrial Policy, International Trade and Finance, Tariffs, Manufacturing, and Productivity
Political Geography:
Asia and South Korea

385. Pandemic (COVID-19) Policy Regional Cooperation and the Emerging Global Production Network

Author:
Fukunari Kimura
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
In this paper, we explore the possible policy responses to the pandemic shock as well as the related economic (financial crisis) shocks on trade and global value chains (GVCs) in East Asia. We find that regional policy coordination is critical to mitigate and isolate the pandemic shock. It is important to identify the pandemic events early to flatten the pandemic curve at the national and regional level. This supports a recent study by the World Bank (2020) which highlights the importance of early mitigation policies during the pandemic shock. The cost of the pandemic and economic shocks increases significantly when several countries in the region experience the systemic pandemic shock concurrently. In this case, flattening the regional pandemic curve becomes important. The results also indicate the need for greater coordination in East Asia to mitigate the pending economic shock in terms of unemployment, corporate bankruptcy, and financial market fragility. The paper also highlights that the stability of the GVC network is critical during the pandemic in terms of hedging the risk of disruptions to the procurement of critical medical and health products as well as the stability of the services linkages to manufacturing, such as the logistics sector. Regional policy coordination and the stability of GVCs are valuable in the post-pandemic recovery of the region.
Topic:
World Bank, Pandemic, Global Value Chains, and COVID-19
Political Geography:
East Asia and Asia

386. Labour Market Impacts of Import Penetration from China and Regional Trade Agreement Partners: The Case of Japan

Author:
Kazunobu Hayakawa, Tadashi Ito, and Shujiro Urata
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The impacts of imports on the domestic labour market have been hotly debated recently. The purpose of this paper is to empirically examine the effects of not only imports from China but also those under regional trade agreements (RTAs) on employment in Japan. As in previous studies in the literature, we found that the rise in import penetration from China significantly decreases employment in Japan. However, import penetration under RTA regimes is found to have insignificant effects on employment. The finding suggests that the increase in imports under RTA regimes might not be harmful to the domestic labour market. In addition, we did not find significant effects of import penetration via input–output linkages. This insignificant result may be because imports by Japanese manufacturing firms are mostly conducted in the form of intra-firm trade, enabling them to avoid negative impacts on employment.
Topic:
International Trade and Finance, Regional Cooperation, Labor Issues, Employment, and Manufacturing
Political Geography:
Japan, China, and Asia

387. Trade Reform and the Evolution of Agglomeration in Vietnamese Manufacturing

Author:
Đoàn Thi Thanh Ha and Hông Quỳnh Nguyen
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
It is well-documented that agglomeration contributes to productivity growth. However, concentrations of workers could also lead to increasing regional income disparities. Therefore, understanding the evolution of agglomeration is relevant for the formulation of industrial policy and inclusive growth. This study documents the extent, pattern, and determinants of agglomeration in Vietnamese manufacturing during 2002–2016, a period when substantial economic reform took place. Our major findings are three-fold. First, agglomeration, as measured by the Ellison–Glaeser index, has declined since the mid-2000s. Second, there exists significant sectoral heterogeneity in the level and trend of agglomeration. Third, we do not find a significant impact of trade and foreign direct investment on agglomeration per se. However, foreign direct investment in port districts does contribute to disagglomeration.
Topic:
International Trade and Finance, Reform, Manufacturing, and Productivity
Political Geography:
Asia and Vietnam

388. Analysis of Global Value Chain Participation and the Labour Market in Thailand: A Micro-level Analysis

Author:
Upalat Korwatanasakul and Youngmin Baek
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study assesses the links between global value chain (GVC) participation and the labour market to examine the relatively unexplored employment-related distribution effects of GVC integration. Based on the Mincer wage model, we examine the relationship between GVC participation and worker productivity and wages at the individual level. Our main estimation method is a simple ordinary least squares estimation using pooled cross-sectional data from the Thai Labour Force Survey for the period 1995–2011. We also separately examine the effects of forward and backward GVC participation on wages and wage distributions. Our results show that GVC participation induces higher monthly wages for individuals and increases productivity in the labour market through either the forward linkage or backward linkage. We even find that GVC participation can help mitigate inequality. Our findings show that GVC participation promotes inclusive job creation and provides more job opportunities for rural, female, and low-skilled workers. Policies to support leveraging the existing strong industries through upgrading, smoothing labour movements while improving agricultural productivity, and preparing to move towards a services economy can help prepare Thailand, and other developing countries in general, to upgrade to higher value chains. Although GVC participation may be a catalyst for higher wages, greater labour productivity, and more inclusive job creation, its employment effects are complicated. An unbalanced policy framework might contribute to uneven income distributions and exclusive job creation as participating in GVCs through different linkages can benefit different stakeholders in varying ways. Therefore, a policy framework that balances the benefits among stakeholders in terms of wage distributions and job inclusion is ideal.
Topic:
Labor Issues, Work Culture, Global Value Chains, and Labor Market
Political Geography:
Asia and Thailand

389. New Developments in International Production Networks: Impact of Digital Technologies

Author:
Ayako Obashi and Fukunari Kimura
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We conducted a standard gravity exercise using worldwide disaggregated trade data to shed light on the influence of the spread of digital technologies on network trade. We found that growing investment in industrial robots in relatively lagging countries, together with imported digitally deliverable services, is enhancing bilateral network trade flows in East Asia, but not necessarily in other parts of the world. This suggests that exploring complementarities between machines and human resources in production blocks supported by better service-link connectivity may allow newly developed economies to retain and expand the international division of labour.
Topic:
Regional Cooperation, Science and Technology, Digital Economy, and Productivity
Political Geography:
East Asia and Asia

390. Assessment of Industrial Cluster Policies in Viet Nam: The Role of Special Economic Zones in Attracting Foreign Direct Investment

Author:
Nguyen Quynh Huong
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Special economic zones (SEZs) are considered as one of important regional industrial policies to attract foreign investment in developing countries such as Viet Nam. The review of SEZs development in Viet Nam including the comprehensive review of infrastructure and business environment in SEZs are presented in this paper for the first time. Moreover, the paper gives novel non-parametric evidence to indicate the positive causal linkage between the zoning policies and the attraction of foreign investment at district-level in the country during the period 2011–2015.
Topic:
Industrial Policy, Regional Cooperation, Foreign Direct Investment, and Industry
Political Geography:
Asia and Vietnam

391. A Quantitative Analysis of Disaster Risk Reduction Investment Effects for Sustainable Development: Indonesia Case Study

Author:
Hiroaki Ishiwata, Hiroyuki Wada, Koji Suzuki, and Naoto Tada
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the long-term impacts of large-scale disasters on the economic growth of developing countries in the Association of Southeast Asian Nations (ASEAN) Community, by the scale of disaster risk reduction (DRR) investments. As a means of quantitatively analysing the optimal level and economic efficiency of DRR investments, a case study was conducted on Indonesia by using a dynamic stochastic macroeconomic model. The results showed that in Indonesia, although greater economic growth is expected when additional DRR investments are made, an excessive DRR investment may contrarily lead to a slowdown in economic growth: an optimal level of DRR investment exists and maintaining its level is essential for sustainable economic growth. Furthermore, it was confirmed that there is a break-even point when the amount of accumulated disaster damage mitigation benefits exceeds the amount of accumulated DRR investment. This demonstrated that the funds invested in DRR could be recovered. Additionally, the results also showed that even if no disaster damage is caused over a long period of time, DRR investments are by no means redundant as the ‘ex-ante risk reduction effect’ will be generated when the optimal level of DRR investment is made. Lastly, it was determined that providing a continuous DRR investment is important in achieving the global target set forth in the Sendai Framework for Disaster Risk Reduction. In addition, it is considered desirable to maintain a higher level of DRR investment than that which is currently being implemented.
Topic:
Economic Growth, Investment, Risk, and Disaster Management
Political Geography:
Indonesia, Asia, and Indo-Pacific

392. Technology Imports and Employment in Developing Countries: Evidence from Viet Nam

Author:
Thu Thu Vu and Duc Anh Dang
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Advanced machines and technology replace workers through automation. However, capital–labour substitution need not reduce aggregate labour demand, as it induces simultaneous contrasting effects within industries. To explore these effects, we examine the relationship between employment in Vietnamese manufacturing firms and imported capital goods in 2011–2017. To solve the problem of potential endogeneity and measurement errors, we used Association of Southeast Asian Nations (ASEAN) imported capital goods as an instrument variable for imported capital goods in Viet Nam. We found that imported capital goods do not displace employment and even increase employment and labour productivity. The impacts of imported advanced technology are more pronounced in large firms. More imported technology increases labour productivity in state-owned enterprises and the number of workers in large firms and firms in industrial zones. However, the increase in the level of employment is lower in industries and firms intensively using machines.
Topic:
Development, Science and Technology, Employment, and Imports
Political Geography:
Asia and Vietnam

393. Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing

Author:
Đoàn Thi Thanh Ha
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the impacts of advanced technology on a possible change in workers’ skills, wages, and employment due to such technological advancement. Three proxies of advanced technologies are used in the study: (i) information and communications technology, (ii) intensity of robot use, and (iii) value of e-commerce. Our study compares the effects of technological advancements on labour market outcomes with import penetration, delineating into raw materials, capital goods, and final products. Our results show that in Thailand, the impact of advanced technology in pushing workers out of the job market is limited. Instead, it tends to affect reallocation of workers between skilled and unskilled positions. The results vary amongst proxies of technology and sectors. It seems that workers in comparatively capital-intensive industries, including automotive, plastics and chemicals, and electronics and machinery, are the most affected by advanced technology. Dampened wage/income is found only in some proxies of technology and sectors. Our results show less concern of negative impacts induced by imports, particularly imports of capital goods and raw materials, on employment status and income than technological advancement.
Topic:
Science and Technology, Labor Issues, Employment, Manufacturing, Job Creation, and Labor Rights
Political Geography:
Asia and Thailand

394. The Value-Added Tax Reform and Labour Market Outcomes: Firm Level Evidence from China

Author:
Yuxiang Yang and Hongyong Zhang
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The tax incentives designed to stimulate firm investment may have a large impact on labour market outcomes. Using a comprehensive data set containing more than 1 million Chinese manufacturing firms during the period 2000–2013 with a difference-in-difference approach, we examine the impact of the value-added tax reform in 2004–2008 on the firm-level labour market outcomes. We find that firms in eligible industries and regions (treated firms) enjoying lower costs of purchasing fixed assets under the reform tended to increase capital investment and reduce employment relative to firms that did not have tax incentives (the control firms). Compared with the control firms, the treated firms became more capital intensive and had an increase in average wage but a decline in labour income share. We also provide evidence that the substitutions of labour input by capital input is associated with increases in firm productivity and the share of skilled workers, but not imported capital goods.
Topic:
Labor Issues, Reform, Tax Systems, and Labor Market
Political Geography:
China and Asia

395. 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

396. Sustainable Water Resource Development Scenarios and Water Diplomacy in the Lower Mekong Basin: Policy Implications

Author:
Han Phoumin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper uses the current results of the Basin-wide water resource development scenario assessment of the Council Study of the Mekong River Commission Secretariat (MRCS) to analyse potentials benefits for economic development to meet the ambitious goal of the riparian states of the Lower Mekong Basin (LMB) countries for poverty reduction and, at the same time, analyse the risks of potential trans-boundary trade-off, which will require an appropriate mechanism to be in place. The scenario assessment results present both opportunities and risks associated with different levels of water resource development in the Mekong countries and the implications of the water diplomacy for both the lower and uper mekong basin. All scenarios could be broadly placed into three main categories with different timeframes and assumptions. Scenario M1 – the early development scenario – characterises baseline water resource developments in 2007; Scenario M2 – the medium-term definite future scenario – characterises existing, under-construction, and firmly-committed water related developments in 2020; and Scenario M3 – the long-term planned development scenario – characterises the planned water developments in 2040 in addition to those assigned for 2020 for implementation over the following 2 decades. The main scenarios aggregate combinations of water resource developments enabling the cumulative assessment of environmental, social, and economic effects in the Member Countries. The Scenarios will bring both economic opportunities in terms of benefits from water resource development as well as risks related to biodiversity changes, the environmental damages and losses of livelihoods, and the dependency on the natural resources of the Mekong River. Each of the scenario results presents the trans-boundary trade-off which requires appropriate skills, capacities of the LMB riparian countries, and water diplomacy to discuss and negotiate for the solutions. Finally, this paper provides some suggestions and policy implications that could be possible mechanisms and solutions for sustainable water resource development in the Mekong region.
Topic:
Environment, Natural Resources, Water, and Sustainability
Political Geography:
Asia, Vietnam, Thailand, and Laos

397. The Effects of Financial Inclusion on Development Outcomes: New Insights from ASEAN and East Asian Countries

Author:
Rajabrata Banerjee, Ronald Donato, and Admasu Afsaw Maruta
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study empirically examines the effects of financial inclusion on economic development, – economic growth, education, health, and income inequality – in 20 Asian countries in the period 2004-2015. The financial inclusion index at an aggregate level is constructed using a hybrid methodology (reported in the previous paper) and we empirically examine its relationship with particular development outcomes. We then disaggregate the index into the three dimensions of financial inclusions – access, usage, and quality – and further into the top two indicators from each dimension based on principal component analysis scores (reported in the previous paper), to examine whether specific dimensions or indicators are more strongly associated with particular development outcomes than with others. Our results show that aggregate financial inclusion has a strong positive effect on all development outcomes and this effect improves for countries with lower political risk. At the dimension level, while usage is the only dimension impacting on economic growth, and access is the only dimension impacting on health outcomes, both usage and access influence education and income inequality. Moreover, the top ranked indicators in each dimension exert a far greater positive influence on development outcomes than the second highest ranked indicators. Our findings show that adopting a single blanket policy may not be appropriate to realise the full potential of financial inclusion in a less developed country. Policy prescriptions should therefore target specific dimension and indicators of financial inclusion to maximise the positive effect on development outcomes.
Topic:
Development, Health, Finance, and Fiscal Policy
Political Geography:
Asia

398. The Composition of Financial Inclusion in ASEAN and East Asia: A New Hybrid Index and Some Stylised FactsThe paper provides an overview of the existing measures of financial inclusion and critically evaluates the two widely used existing methodologies to measure the dimensions – the principal component analysis (PCA) method and the Distance method, respectively. We subsequently propose a new hybrid financial inclusion index, which draws on the strengths of existing measures. We propose four key stylised facts by critically evaluating three dimensions of financial inclusion – access, usage, and quality in 22 Asian countries in the period 2004-2015. Utilising PCA scores, we identify the top two indicators under each dimension and by country, which are directly relevant for policy perspectives. An important finding is that the top five and the bottom five countries are the same under all three methodologies. There is a pattern across countries in adopting usage, access, and quality dimensions of financial inclusion over time. We also find that the top two indicators appear to play a significant role across all developing countries in the sample.

Author:
Rajabrata Banerjee and Ronald Donato
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper provides an overview of the existing measures of financial inclusion and critically evaluates the two widely used existing methodologies to measure the dimensions – the principal component analysis (PCA) method and the Distance method, respectively. We subsequently propose a new hybrid financial inclusion index, which draws on the strengths of existing measures. We propose four key stylised facts by critically evaluating three dimensions of financial inclusion – access, usage, and quality in 22 Asian countries in the period 2004-2015. Utilising PCA scores, we identify the top two indicators under each dimension and by country, which are directly relevant for policy perspectives. An important finding is that the top five and the bottom five countries are the same under all three methodologies. There is a pattern across countries in adopting usage, access, and quality dimensions of financial inclusion over time. We also find that the top two indicators appear to play a significant role across all developing countries in the sample.
Topic:
Finance
Political Geography:
Asia

399. The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia

Author:
Kimty Seng
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study analyses the effects of financial inclusion on poverty in terms of household income per capita in Cambodia, with data from the FinScope Survey carried out in 2015. The analysis describes the effects via financial literacy, accounting for endogenous selection bias resulting from unobserved confounders and for structural differences between users and non-users of financial services in terms of income functions. The findings suggest that the use of financial services is very likely to make a great contribution to reducing household budget deficits and poverty if the users, female in particular, have at least basic financial knowledge.
Topic:
Poverty, Inequality, Finance, and Financial Services
Political Geography:
Asia and Cambodia

400. Financial Inclusion, Active Bank Accounts and Poverty Reduction in India

Author:
Tony Cavoli, Ilke Onur, and Patricia Sourdin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the World Bank’s Global Findex data, this research first shows that the efforts by the Indian Government and the Reserve Bank have been successful in providing access to formal banking services, especially in the rural areas of the country. Similarly, financial account ownership gap has been eliminated in terms of gender and income. Further analysis, using the Financial Inclusion Insights dataset, shows that financial inclusion has a positive and significant effect on reducing poverty in India. A closer look at the utilisation of the financial accounts shows that active usage of these accounts would lead to further reductions in poverty levels in India. Therefore, targeted programmes, such as offering financial education both in and outside schools, with the aim of improving financial literacy, could lead to further poverty reduction in India.
Topic:
Education, Poverty, Finance, and Banks
Political Geography:
India and Asia