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211. Impacts of Trade Diversion from China in the United States Market on Wages in a Third Country: Evidence from Thailand

Author:
Kazunobu Hayakawa and Sasatra Sudsawasd
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Since the latter half of the 2010s, China’s exports to the United States (US) have gradually decreased due to the US-China trade war and other factors, such as lockdown measures in China to combat COVID-19. This decrease has resulted in increasing exports from third countries, including Thailand, to the US market by substituting China’s exports, i.e. trade diversion. Against this backdrop, this study empirically investigates how the changes in exports to the US driven by the change in China’s exports to the US affect wages in Thailand. Especially, we examine the heterogeneous effects according to workers’ characteristics. To this end, we conduct regression analyses using individual-level quarterly data from the first quarter of 2017 to the second quarter of 2023. Our main finding is that the wage gap between low- and middle-skilled workers decreased, whilst the gap between middle- and high-skilled workers increased. Namely, the increased exports to the US caused ‘wage polarisation’ in Thailand. We also find that the increase in exports to the US contributed to expanding the wage gap by age but narrowing it by gender.
Topic:
Markets, Trade Wars, Exports, and Wages
Political Geography:
China, Asia, Thailand, and United States of America

212. City Amenities and Internal Migration: Evidence from Chinese Cities

Author:
Karma Wangdi and Shandre Mugan Thangavelu
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper provides new empirical evidence of city amenities’ role in China’s internal migration using a unique city-level dataset. The results highlight the positive effects of city amenities such as education, public facilities, transportation, environment, and climate conditions in attracting migrant workers to cities. In our study, migrant workers are more likely to move to cities with better education, more public facilities, higher coverage of urban pensions, and a cooler climate with more precipitation. Moreover, they prefer to migrate and live in cities with larger service agglomeration and employment, higher average wages, more job opportunities, and lower house prices
Topic:
Development, Labor Issues, Cities, Internal Migration, and Amenities
Political Geography:
China and Asia

213. Have Dynamic Spillovers and the Connectedness of Trade Policy Uncertainty Changed During the COVID-19 Pandemic and Sino–US Trade Frictions?

Author:
Chien-Chiang Lee and Farzan Yahya
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
In this paper, we examine the spillover and connectedness between the trade policy uncertainty (TPU) of the United States (US), China, Japan, and the Republic of Korea (henceforth, Korea) under global geopolitical risk (GPR), infectious disease equity market volatility (EMVID), and GPR from North Korea (GPRNK) using a relatively novel time-varying parameter vector autoregression (TVP-VAR) approach. Additionally, method of moments quantile regression is utilised to estimate the asymmetric effect of GPR, GPRNK, and EMVID on TPU. Our findings suggest that there is a high total and directional spillover amongst underlying variables during Sino–US trade friction that further elevated during the coronavirus disease (COVID-19) pandemic period. The US is a net receiver of spillover from the TPU of all economies, while the Chinese TPU receives spillover from EMVID. The results further confirm that both the TPU of China (TPUCN) and the TPU of the US (TPUUS) are vulnerable to EMVID, but the effect is stronger for Chinese TPU in the higher quantiles. Although Japanese TPU is less vulnerable to GPR and EMVID, it is significantly exposed to GPRNK. Korean trade shows resiliency and immunity to pandemic-induced volatility and GPRNK.
Topic:
Trade Wars, Trade Policy, COVID-19, and Spillovers
Political Geography:
Japan, China, Asia, South Korea, and United States of America

214. COVID-19 and Firm Response: Evidence from China

Author:
Dongmin Kong, Chen Liu, and Mengxu Xiong
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper explores the effects of the coronavirus disease (COVID-19) pandemic on firm response. Using a novel COVID-19 sentiment index, our estimation shows that the pandemic significantly reduced the overseas revenue and profits of firms listed on the Chinese A-share market. Moreover, we observe that an increase in loans, and a drop in debt financing cost and trade credit, were prominent during the pandemic. We contend that reduced cash flows, which damaged firm operations; government support, which provided more financing channels; and increased default risks, which placed barriers on trade credit, are the plausible mechanisms through which the COVID-19 pandemic affects firm performance. Profit contraction was more pronounced for firms with a lower ratio of domestic content in exports and state-owned enterprises, while external financing was easier for firms subject to stringent financial constraints despite their lowered trade credit.
Topic:
Trade, COVID-19, and Firms
Political Geography:
China and Asia

215. Foreign Direct Investment, Brand Value, and Economic Performance: A Multinational Analysis

Author:
Tuba Yıldız, Ünal Arslan, Zeynep Ökten, Yıldız Sağlam Çelıköz, and Hale Kırmızıoğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
The visibility and dependability of multinational corporations’ products increase with the fact that they introduce their goods to markets in other nations through foreign direct investments. The method for presenting products to international markets through foreign direct investments reveals the product’s reputation and therefore the brand’s development value. This study examines the relationship between foreign direct investments and brand value in Australia, Canada, China, France, India, Japan, Spain, the USA, and the UK for the period 2007-2023. The majority of studies in the literature attempt to explain the impact of brand value on foreign direct investments. However, very few studies explain the impac foreign direct investments on brand value and 1st generation unit root tests were generally used. Unlike existing studies, In this study, the second-generation unit root test, Durbin-Hausman cointegration, and Common Correlated Effects Mean Group estimation methods were used. As a result, it is anticipated that this study will contribute to the literature in this regard. The findings show that increases in foreign direct investments boost brand value.
Topic:
Economics, Foreign Direct Investment, Multinational Corporations, Data, and Branding
Political Geography:
Japan, China, United Kingdom, Canada, India, France, Spain, Australia, Global Focus, and United States of America

216. Selective Migration Policies With Chinese Characteristics

Author:
Rey Koslowski and Sheng Ding
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
This article examines China’s recruitment of high-skilled migrants within a broader comparative analysis of selective migration strategies and adds the neglected Chinese case to the comparative immigration policy literature. China adopted certain selective migration polices from other countries, such as Canada and the United States, but its selective migration strategy does not fit established categories. Beginning in 2013, the Chinese communist government enacted new laws and issued new regulations to attract foreign talent and better regulate the entry, residence and employment of foreigners. The contours of China’s distinctive selective migration policy became more defined as Beijing established a point system combined with a job offer requirement; reformed the Z visa, which is issued to those with a college degree who intend to work in China; established the R visa for exceptionally high-skilled migrants; and adopted more liberal policies on permanent residency for the highly skilled. These policies, combined with the opportunities presented by China’s rapidly growing economy, attracted growing numbers of university graduates and propelled China, to become, for a brief period before the COVID-19 pandemic, a major destination for high-skilled migrants.
Topic:
Migration, Employment, Migration Policy, and Skilled Migration
Political Geography:
China and Asia

217. Rethinking Democracy ep. 4: China's growing presence in the Middle East with Dr. F. Gregory Gause and Dr. Jon Alterman

Author:
F. Gregory Gause, Jon B. Alterman, and Gonul Tol
Publication Date:
09-2024
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
About the series: This is a critical year for the future of democracy. Half the world’s population will go to the polls in 2024, at a time when citizens in America and across the globe are losing faith in democratic institutions. We often view the rollback of democracy and threats to the liberal international order as separate problems, but in reality they are closely interlinked. Through a new limited podcast series, MEI’s Gonul Tol seeks to examine the interplay between democracy’s domestic and international foes as well as how to counter them. In this episode: China has made significant inroads in the Middle East through diplomacy, trade, investment, and infrastructure projects. Beijing advertises the benefits of its authoritarian development model and presents itself as a responsible alternative to the United States. What does this mean for MENA autocracies? Dr. F. Gregory Gause and Dr. Jon Alterman join Gonul Tol to discuss China’s growing presence in the Middle East.
Topic:
Foreign Policy, Elections, Democracy, Belt and Road Initiative (BRI), and Institutions
Political Geography:
China, Middle East, and Asia

218. Securitization of China Pakistan Economic Corridor Amid India China Rivalry

Author:
Muhammad Babar and Muhammad Umar
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
China Pakistan economic corridor (CPEC) is the flagship project of the Belt and Road initiative (BRI). The project has been considered the guarantor of Pakistan‟s economic development and has the potential to significantly improve the Pakistan gross domestic product and to transform Pakistan economy from import driven to export driven. Since the project has been under various impediments particularly in the domain of security, there have been several attacks on the Chinese personal working on the projects and its installations, majorly prompted by the Indian backed proxies and non-state actors in Pakistan. The Potential threats to the success of CPEC have been enhanced due the growing and intensifying India china rivalry. The securitization of the CPEC from all potential threats is a matter of national interest and ensuring national and economic security. This paper highlights the importance of CPEC for Pakistan‟s economy, potentials threats to the CPEC emanating from the Indian backed-proxies, discuss security measures taken to address these concerns and suggests a strategic path forward for the project securitization.
Topic:
Bilateral Relations, Non State Actors, Borders, Belt and Road Initiative (BRI), Exports, Economic Development, Rivalry, Securitization, and Proxy Groups
Political Geography:
China, South Asia, India, and Asia

219. R2P Monitor, Issue 68, 1 March 2024

Author:
Global Centre for the Responsibility to Protect
Publication Date:
03-2024
Content Type:
Special Report
Institution:
The Global Centre for the Responsibility to Protect
Abstract:
R2P Monitor is a quarterly publication applying the atrocity prevention lens to populations at risk of mass atrocities around the world. Issue 68 looks at developments in Afghanistan, Central Sahel (Burkina Faso, Mali and Niger), China, Democratic People’s Republic of Korea, Democratic Republic of the Congo, Ethiopia, Haiti, Israel and the Occupied Palestinian Territory, Myanmar (Burma), Nicaragua, Nigeria, Sudan, Syria, Ukraine, Venezuela, Cameroon, Central African Republic, South Sudan and Yemen.
Topic:
Human Rights, International Law, Responsibility to Protect (R2P), and Atrocity Prevention
Political Geography:
Afghanistan, China, Sudan, Ukraine, Israel, North Korea, Yemen, Democratic Republic of the Congo, Palestine, Nicaragua, Haiti, Syria, Venezuela, Ethiopia, Nigeria, Myanmar, South Sudan, Cameroon, Sahel, Central African Republic, and Global Focus

220. China's "Second Battlefield": Political Warfare in Combat Operations

Author:
Kerry K. Gershaneck
Publication Date:
09-2024
Content Type:
Journal Article
Journal:
Journal of Advanced Military Studies
Institution:
Marine Corps University Press, National Defense University
Abstract:
This article addresses how the People’s Republic of China (PRC) will conduct political warfare against the U.S. Marine Corps in combat operations. The PRC has inextricably intertwined political warfare in its naval and maritime strategies to set the conditions for success in such a kinetic war. If the PRC perceives that political warfare alone will not achieve its goals, it threatens to achieve them through armed conflict, which may result in U.S. Marine Corps operations as a counter. This article examines key aspects of PRC political warfare in combat operations, to include a brief historical overview; goals, objectives, strategies, and tactics employed; targeting of U.S. and allied combat units, military base communities, and overseas Chinese; and the likely progression of political warfare operations throughout the combat campaign.
Topic:
Maritime, Gray Zone, Chinese Communist Party (CCP), political warfare, Hybrid Warfare, Coast Guard, People's Liberation Army (PLA), and Cognitive Warfare
Political Geography:
China and Asia