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2. The Cross-Border Interbank Payment System: A Case Study in Chinese Economic Leadership
- Author:
- Aidan Campbell
- Publication Date:
- 03-2023
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- Investigations seeking to explain the rise of China rarely investigate the many new institutions founded to increase China’s economic success and influence over global affairs. In the economic sector, some better-known projects include the Belt and Road Initiative, the Asian Infrastructure Investment Bank, and the New Development Bank. One of the newest and least understood institutions founded to promote international use of the RMB is the Cross-Border Interbank Payment System (CIPS). The purpose of this research is to examine the development, policies, and goals of CIPS in order to better understand the phenomenon of Chinese-lead international economic institutions. Novel evidence for CIPS’s intention to adopt blockchain technology and provide services for currencies other than the RMB is presented. The conclusion to this research is that CIPS is presently too small to pose a threat to the existing SWIFT network or predominance of US dollar transactions in international trade. At the same time, CIPS evidences a patient and rational strategy designed to reform international norms and patterns of trade to China’s advantage in the long term.
- Topic:
- Political Economy, Leadership, Economy, Belt and Road Initiative (BRI), and Banking
- Political Geography:
- China and Asia
3. State Capitalism, Imperialism, and China: Bringing History Back In
- Author:
- Isabella Weber
- Publication Date:
- 02-2023
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- State capitalism is experiencing a great revival as a term to capture the current capitalist constellations, increasingly replacing neoliberalism. Unlike neoliberalism, however, the term state capitalism has a long history reaching back to the age of imperialism in the late 19th century. While state capitalism has been used as a pejorative term by Marxists, liberals and neoliberals alike, it has served as a programmatic label for developmentalist and neomercantilist projects in reaction to imperialism in the periphery. This paper argues that we need to bring the intellectual history of state capitalism into the ‘new state capitalism’ debate. China has played a major role in the revival of state capitalism in the social sciences, but the long history of China’s engagement with state capitalism as a concept and program dating back to the late Qing reformers has been overlooked for the most part. State capitalism is by no means new to China, from Liang Qichao, Sun Yatsen and Mao Zedong to Deng Xiaoping, the idea that China had to create a modern nation state and industrial capitalism in the name of economic progress and to get ahead in the global competition is a recurring theme. What is new is that for the first time the ambition to use state capitalism as a means to catch up with the West is bearing fruits in ways that could undermine the predominance of Western economies.
- Topic:
- Imperialism, Political Economy, History, Capitalism, and State Capitalism
- Political Geography:
- China and Asia
4. China's Political-Economy, Foreign and Security Policy: 2023
- Author:
- Center for China Analysis
- Publication Date:
- 01-2023
- Content Type:
- Working Paper
- Institution:
- Asia Society
- Abstract:
- It has now been three months since the 20th Party Congress convened in Beijing on October 15. While the Congress set Xi Jinping’s ideological, strategic, and economic direction for the next five years, much has happened since then that the Chinese leadership did not anticipate. Principal among these surprises was the spontaneous eruption in late November of public protests across multiple Chinese cities against the economic and social impact of the Chinese Communist Party’s “dynamic zero-COVID” policy. These protests resulted in an unprecedented U-turn on December 8 from China’s relentless pursuit of its three-year-long national pandemic containment strategy to the Party now seeking desperately to restore economic growth and social calm. This shift has in turn generated major public pressures on the Chinese health system as hospitals struggle to cope with surging caseloads and mortalities. All of these developments stand in stark contrast to the political, ideological, and nationalist self-confidence on display at the 20th Party Congress. In October, Xi Jinping swept the board by removing any would-be opponents from the Politburo and replacing them with long-standing personal loyalists. Xi also proclaimed China’s total victory over COVID-19, contrasting the Party’s success with the disarray its propaganda apparatus had depicted across the United States and the collective West. Despite faltering economic growth, Xi had doubled down in his embrace of a new, more Marxist approach to economic policy which prioritized planning over the market, national self-sufficiency over global economic integration, the centrality of the public sector over private enterprise, and a new approach to wealth distribution under the rubric of the Common Prosperity doctrine. At the same time, Xi’s 2022 Work Report, delivered at the Congress, abandoned Deng Xiaoping’s long-standing foreign policy framework that “peace and development are the principal themes of the time” and instead warned of growing strategic threats and the need for the military to be prepared for war. As part of a continuing series on China’s evolving political economy and foreign policy, this paper’s purpose is threefold: to examine the political and economic implications of this dramatic change in China’s COVID-19 strategy; to analyze what, if any, impact it may have on China’s current international posture; and to assess whether this represents a significant departure from the Party’s strategic direction set at the 20th Party Congress last October. The paper concludes that the Party changed course on COVID-19 for two reasons: (1) it feared that not doing so would threaten its unofficial social contract with the Chinese people based on long-term improvements in jobs and living standards; and (2) that a structural slowdown in growth could also undermine China’s long-term strategic competition against the United States. This paper also concludes that the stark nature of the December 8 policy backflip, together with the Chinese health system’s lack of preparedness for it, has dented Xi Jinping’s political armor for the medium term. This setback comes on top of internal criticism of Xi’s broader ideological assault on the Deng-Jiang-Hu historical economic growth formula that Xi has prosecuted since 2017, as well as Xi’s departure from Deng’s less confrontational foreign policy posture that characterized previous decades. Nonetheless, these policy errors remain manageable within Chinese elite politics, where Xi still controls the hard levers of power. Furthermore, many of these changes on both the economy and external policy are more likely to be short-to-medium term and therefore tactical in nature, rather than representing a strategic departure from the deep ideological direction laid out for the long-term in Xi’s October 2022 Work Report. While these changes to current economic and foreign policy settings are significant in their own right, there is no evidence to date that Xi Jinping’s ideological fundamentals have changed.
- Topic:
- Security, Foreign Policy, Political Economy, and COVID-19
- Political Geography:
- China and Asia
5. The Internationalisation of the Chinese Renminbi and China’s Digital Currency Plans
- Author:
- Lorenzo Bencivelli and Michele Savini Zangrandi
- Publication Date:
- 04-2023
- Content Type:
- Working Paper
- Institution:
- Istituto Affari Internazionali
- Abstract:
- China has made major reforms to boost the international standing of its currency. The global presence of the renminbi remains contained, however. This is due to China’s economic structure (a persistent current account surplus and a partially closed financial account) and the government’s grip on the economy. China is also a Central Bank Digital Currency (CBDC) forerunner. The digital yuan (e-cny) is already active in a large scale trial. Many claim that the e-cny could provide a major boost to the internationalisation of the renminbi. However, the internationalisation of the renminbi would require major economic reforms that cannot be bypassed by the deployment of new technologies. The e-cny is therefore unlikely to boost the renminbi’s international presence. Yet, its underlying technology could be exported to other countries wishing to deploy their own-currency CBDCs. Much like with telecommunication equipment, this scenario would put China in the position of being a provider of a critical infrastructure. In the longer run, the export of e-cny technology might also facilitate the creation alternative payment networks, though this scenario is not very likely.
- Topic:
- Political Economy, Governance, Finance, Currency, and Digital Policy
- Political Geography:
- China and Asia
6. China’s Changing COVID-19 Policies: Market and Public Health
- Author:
- Zhun Xu
- Publication Date:
- 05-2023
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- After the outbreak of COVID-19 in early 2020, China took fast and decisive measures to successfully contain the spread of the virus within its borders. While the rest of the world saw huge human and social costs in the pandemic, the Chinese mainland for about two years was largely free from COVID. The zero-COVID model, however, met great challenges by early 2022. Despite some efforts to save the zero-COVID model, in November 2022, the Chinese government abruptly abandoned its signature COVID controls during the pandemic and switched to the opposite. This article reviews the evolution of the Chinese COVID policies and places the dramatic turns in the context of the changing Chinese political economy. The findings show that the shifting class interests and actions were an important force behind China’s retreat from zero- COVID.
- Topic:
- Markets, Political Economy, Public Health, and COVID-19
- Political Geography:
- China and Asia
7. Public responses to foreign protectionism: Evidence from the US-China trade war
- Author:
- David Steinberg and Yeling Tan
- Publication Date:
- 06-2022
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- America's recent turn toward protectionism has raised concerns about the future viability of the liberal international trading system. This study examines how and why public attitudes toward international trade change when one's country is targeted by protectionist measures from abroad. To address this question, the authors fielded three original survey experiments in the country most affected by US protectionism: China. First, they find consistent evidence that US protectionism reduces Chinese citizens' support for trade. This finding is replicated in parallel experiments on technology cooperation, and further validated outside of the China context with a survey experiment in Argentina. Second, they show that responses to US protectionism reflect both a "direct reciprocity" logic—citizens want to retaliate against the United States specifically—and a "generalized reciprocity" logic that reduces support for trade on a broader, systemic basis.
- Topic:
- Economics, Political Economy, Public Opinion, Trade, and Protectionism
- Political Geography:
- China, Asia, North America, and United States of America
8. Processing Trade and Global Supply Chains: Towards a Resilient “GVC 2.0” Approach
- Author:
- Lucian Cernat
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- In the current global context marked by economic fragility, growing uncertainty and geopolitical conflicts, ensuring the smooth functioning of global supply chains becomes more important than ever. Supply shortages, higher freight costs, higher commodity prices and strong demand increase will trigger inflationary pressures for all economic sectors dependent on global value chains (GVCs). As part of global efforts to enhance the resilience of GVCs, this paper makes the case for a broader discussion about the untapped potential of processing trade, a relatively unknown trade facilitation option available in many countries around the world. Processing trade has been credited with stimulating China’s participation in GVCs, in combination with foreign direct investment (FDI) attraction and industrial upgrading. However, processing trade is not just a Chinese phenomenon. In the EU, significant trade flows (over 200 billion euros in 2021 alone) benefitted from a double-digit trade cost reduction, thanks to the EU processing trade provisions. Different types of processing trade arrangements exist in over 70 countries worldwide (including in the EU), as a way to facilitate the integration of developing countries in global production chains. However, these unilateral schemes have different requirements and co-exist without any attempt to facilitate their inter-operability along complex global supply chains. This paper argues that there is a pressing need for a global reflection on how best to promote a better integration between these national processing trade schemes. One option is to promote a “GVC 2.0” approach that offers key recommendations and best practices for processing trade along GVCs. Such a coordinated “GVC 2.0” trade facilitation initiative would not only make GVCs more resilient for countries that depend on global sourcing for their critical economic activities, but it will also reduce the inflationary effect generated by the unnecessary trade costs associated with GVC activities.
- Topic:
- Political Economy, European Union, Trade, Resilience, and Supply Chains
- Political Geography:
- Europe, Asia, and Global Focus
9. Policy Experimentation in China: The Political Economy of Policy Learning
- Author:
- Shaoda Wang and David Y. Yang
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- Determining what policies to implement and how to implement them is an essential government task. Policy learning is challenging, as policy effectiveness often hinges on the nature of the policy, its implementation, the degree that it is tailored to local conditions, and the efforts and incentives of local politicians to make the policy work.
- Topic:
- Political Economy, Politics, Policy Implementation, and Economic Policy
- Political Geography:
- China and Asia
10. China’s grand industrial strategy and what it means for Europe
- Author:
- Frederico Mollet
- Publication Date:
- 04-2021
- Content Type:
- Policy Brief
- Institution:
- European Policy Centre (EPC)
- Abstract:
- In its 14th Five-Year Plan, China has mapped out a grand economic and industrial strategy that upends many of the assumptions that underpin the EU's approach - how can the Union respond? With this new plan, the EU can expect tougher competition and greater protectionism in its economic relations with China. A further blurring of the public-private sector distinction in the country's economic model will make it harder to combat unfair Chinese competition. And while China is actively courting foreign investment, it is also signalling greater protectionism to products not made in China, which will lead to European investors' and exporters' interests diverging. To balance the scales, the EU should adapt its own strategy by: continuing to develop trade instruments to combat unfair competition at home and abroad; ensuring that these instruments and institutions can respond to unfair competition from private companies benefiting from state capital investment; ensuring that the extensive and often opaque government holdings in private firms are reflected in foreign direct investment and export controls; incorporating China's attempts to reconfigure supply chains into its own assessment of strategic dependencies, identifying areas that could become vulnerable; prioritising the improvement of access to the Chinese market for goods and services produced in Europe; developing alternative sources of growth, and boost demand and reduce barriers within the Single Market to offset greater Chinese protectionism; and ensuring that its industrial policy efforts will enable European industry to match China's developments. The present moment may mark a turning point in EU–China relations: in a little over three months, an agreement on an investment treaty was followed by sanctions and countersanctions. Geopolitical conflict ratchets up between China and the US. Beijing's new economic course will reshape its global relationships. China's protectionist turn and growing one-sided dependencies will threaten Europe's long-term strategic autonomy and undercut any attempts to construct a balanced approach to EU–China relations. If the EU's multi-track strategy is to work, a concerted effort is required to preserve economic parity and balance between the two powers.
- Topic:
- International Relations, Political Economy, European Union, Grand Strategy, Industry, and Supply Chains
- Political Geography:
- China, Europe, and Asia
11. The Political Economy of India’s Transition to Goods and Services Tax
- Author:
- Chanchal Kumar Sharma
- Publication Date:
- 01-2021
- Content Type:
- Working Paper
- Institution:
- German Institute of Global and Area Studies
- Abstract:
- What kept the Goods and Services Tax (GST) from becoming a reality in India for a quarter of a century after the adoption of the structural adjustment programme in 1991? What made it possible in 2016? To what extent the Indian model of GST reflects a compromise between the need to keep fiscal federalism intact and to respond to a more global economic imperative? To what extent India’s transition to a concurrent dual GST has brought about a change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions? This paper investigates these issues and shows that the shifts in the indirect tax regime in India since independence have taken place within the structural context of constitutional rules, the economic policy paradigm and political dynamics. Party congruence after 2014 helped to facilitate the introduction of the GST, but the shape thereof was strongly marked by path-dependent logics and the role of state governments as institutional veto players. In addition, the paper examines the ways in which India’s transition to a concurrent dual GST has brought about a fundamental change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions.
- Topic:
- Development, Political Economy, Governance, Tax Systems, Institutions, and Services
- Political Geography:
- India and Asia
12. An Analysis of Adjustment Challenges of Academia Returns Migrants: An Evidence from South Asia
- Author:
- Syed Anwaar UI Hassan, Sadaf Mahmood, Muhammad Shabbir, and Uzma Niaz
- Publication Date:
- 01-2021
- Content Type:
- Journal Article
- Journal:
- South Asian Studies
- Institution:
- Department of Political Science, University of the Punjab
- Abstract:
- The principal objectives of this research were to analyze their reintegration challenges and to dig out the way to use their social and human capital for getting benefit from the international political economy. Qualitative data were obtained from sixteen highly qualified return migrants in the universities of Faisalabad. Purposive and snowball sampling techniques were adopted to reach the respondents and in-depth interviews with them were conducted with the help of an interview guide. Thematic analysis was applied on the bases of case studies. The return migrants were facing multiple challenges at the institutional, political, and economic levels. They were less paid as they can get better salaries internationally. There is no channel to utilize their human and social capital appropriately that can be beneficial for enhancing the role of the country in the global political economy. The difficulties in the diffusion of new ideas, mismanagement at the professional level, cultural shock, lack of proper infrastructure, and political interference in academic institutions remained challengeable for them. The country should better utilize the capital of the highly qualified return migrants to uplift the political economy of the country.
- Topic:
- Migration, Political Economy, Immigrants, Academia, and Social Capital
- Political Geography:
- South Asia and Asia
13. China's Belt and Road Initiative in Italy: An Analysis of Financial Cooperation
- Author:
- Nicola Bilotta
- Publication Date:
- 05-2021
- Content Type:
- Working Paper
- Institution:
- Istituto Affari Internazionali
- Abstract:
- Financial cooperation is essential to boosting bilateral economic ties, providing firms with more effective instruments to operate in foreign markets. It should come as no surprise, then, that financial cooperation was a pillar of the 2019 Memorandum of Understanding (MoU) reached between Italy and China in support of the latter’s Belt and Road Initiative (BRI). However, a preliminary analysis of BRI-related commercial agreements between Italian financial institutions and their Chinese counterparts shows that they have not resulted in any ground-breaking development. These Memoranda have apparently just added a “BRI” badge to pre-existing trends of collaboration. The BRI-related MoUs in the field of financial cooperation do not, for the time being at least, justify concerns that China may gain an economic foothold in Italy large enough to win it much political influence. A more realistic risk is that these MoUs may undermine a common European approach to China, weakening the negotiating stance of the European Union’s. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
- Topic:
- Foreign Policy, Political Economy, Governance, Finance, and Belt and Road Initiative (BRI)
- Political Geography:
- China, Europe, Asia, and Italy
14. An International Digital Yuan: (Vane) Ambitions, (Excessive) Alarmism and (Pragmatic) Expectations
- Author:
- Nicola Bilotta
- Publication Date:
- 07-2021
- Content Type:
- Commentary and Analysis
- Institution:
- Istituto Affari Internazionali
- Abstract:
- Days after the European Central Bank (ECB) publicly disclosed its roadmap for a digital euro project on 24 July, the People’s Bank of China (PBoC) published a white paper describing the advancements of its plan for a digital yuan (e-CNY). While the EU roadmap outlines an investigation phase which will end in five years, China has already introduced several pilot experiments for its e-CNY. In June 2021, the e-CNY was employed in more than 70.7 million transactions for a value of 34.5 billion yuan by 20.8 million retail users and 3.5 million corporate users.
- Topic:
- International Political Economy, Political Economy, Governance, Finance, Currency, and Digital Policy
- Political Geography:
- China and Asia
15. Predicting Chinese State-Owned Enterprise Policy Incidence
- Author:
- Sara Hsu
- Publication Date:
- 06-2021
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese state-owned enterprise policies. Using a VAR model, we find indicators that explain state-owned enterprise policy creation variance, which means that we can explain, to some extent, the incidence of state-owned enterprise policies. This reduces economic policy uncertainty, thereby having the potential to increase economic activity and reduce costs.
- Topic:
- Political Economy, Economy, and State-Owned Enterprises
- Political Geography:
- China and Asia
16. Predicting Chinese Banking Policy Incidence
- Author:
- Sara Hsu
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese Banking and Insurance Regulatory Commission policies using a VAR model. We find that CBIRC policies are predicted by State Council construction policies and policies set by the State Administration of Foreign Exchange. This indicates that the CBIRC is inward-looking, observing what other regulators are doing rather than responding to changes in the real and financial economy. This may be a product of market distortions due to China’s unique blend of state-oriented and market-based institutions.
- Topic:
- Political Economy, Regulation, and Banking
- Political Geography:
- China and Asia
17. Volume 71 Issue 2
- Author:
- Gökhan Karabulut
- Publication Date:
- 01-2021
- Content Type:
- Journal Article
- Journal:
- Istanbul Journal of Economics
- Institution:
- Istanbul University Faculty of Economics
- Abstract:
- Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
- Topic:
- Economics, Globalization, International Trade and Finance, Oil, Political Economy, Natural Resources, Exchange Rate Policy, and Industry
- Political Geography:
- Europe, Turkey, and Asia
18. China, India and the political economy of medical supplies
- Author:
- Stein Sundstol Eriksen
- Publication Date:
- 04-2020
- Content Type:
- Special Report
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- Summary: • The pandemic and lockdowns threaten the supply of medicines, especially from India • Poor countries relying on supplies of cheap Indian medicines are especially vulnerable • New medicines and vaccines are likely to be developed and patented by Western companies and will be expensive. • Norway should help fund the supply of medicines and promote reforms of patent rules to make medicines more affordable
- Topic:
- Political Economy, Asia, Vaccine, Pandemic, and COVID-19
- Political Geography:
- China, South Asia, India, and Asia
19. 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
20. Stakeholders’ Interest Relations in Korea’s Services Trade Liberalization: A Political Economy Analysis
- Author:
- June Dong Kim
- Publication Date:
- 11-2019
- Content Type:
- Working Paper
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- This paper seeks to analyze the major factors behind why each stakeholders in the legal, health, educational and audio-visual service sectors in Korea op-pose liberalization in a qualitative political economy context as well as to pro-vide alternative strategies for further liberalization in these four service sectors. In legal services, the foreign equity ceiling of 49 per cent for joint venture law firms may be lifted as long as the present regulation against the number of FLCs in a joint venture law firm exceeding the number of Korean lawyers is maintained. In health services, as a step-by-step approach, we can first con-sider a system where incorporated hospitals can be established and liquidated more freely by deregulating current limitations placed on the disposal of re-maining properties, while an overly distribution of dividends is restrained. In educational services, in order to deregulate limitations regarding the disposal of remaining properties, it will be necessary to enhance the transparency of management and operation of private schools. In this regard, allowing school foundations to take the form of a limited liability company could be considered, since they would then become subject to external financial audit. In audio-visual services, it will be necessary to improve monitoring and im-plementation of intellectual property rights as well as competition policy when considering further liberalization. The major factors compelling each stakeholder in the legal, health, educational and audio-visual services to oppose further liberalization can be summarized as a general mindset towards uniform equity and control, cultural factors pre-venting discussion on rational alternatives, insufficient government budget for universal services, lack of administrative capacity in policy implementation and monitoring, absence of a proper system to evaluate the quality of ser-vices, asymmetry of information, and persistence of acquired rents. In order to correctly identify and understand the nature of problems, the highest priority should be placed on reducing the mistrust among the con-stituents. This is because mistrust among the constituents acts as the most important impediment when attempting value-creating negotiation strategies among each of the stakeholders. Meanwhile, to build trust among all constit-uents, free flow of information works as an important factor. Therefore, the problems of mistrust and lack of free flow of information are the most important impediments to improve those constraints that were analyzed in the selected service sectors. In addition, they are interlinked with each other, so that dealing with these problems simultaneously is a rational solution. In order to accomplish this, it is utmost important to develop the capability of each constituent to allow them to interpret specific pieces of information without distortion. In this regard, upgrading research and educa-tion of economics also becomes imperative.
- Topic:
- Political Economy, Law, Economic Policy, and Trade Liberalization
- Political Geography:
- Asia and South Korea