{"title":"How the United States Marched the Semiconductor Industry into its Trade War with China","authors":"C. Bown","doi":"10.11644/kiep.eaer.2020.24.4.384","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2020.24.4.384","url":null,"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.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87487041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Modeling the Impact of Non-Tariff Barriers in Services on Intra-African Trade: GTAP Model","authors":"Amara Zongo","doi":"10.2139/ssrn.3771993","DOIUrl":"https://doi.org/10.2139/ssrn.3771993","url":null,"abstract":"This paper examines the effects of African Continental Free Trade Agreement (AfCFTA) on intra-African trade in the medium- and long-term, focusing on trade in services. It assesses the impacts of a 50% reduction of non-tariff barriers in four services sectors on bilateral trade in services between ECOWAS (Economic Organization of West African States) and SADC (Southern African Development Community) areas. Using the GTAP model and ad valorem equivalents of services restrictions, we find that services liberalization stimulates GDP and household income in both trading blocks. Bilateral trade in financial, transport, professional, and telecommunication services increases between the two trading blocks and the effects are significant in the long run. SADC member countries export more financial services as a result of ECOWAS macroeconomic and financial integration. ECOWAS benefits from the quality of SADC infrastructures to rise its exports of transport and telecommunication services. South Africa is the biggest exporter in the SADC region and Ghana and Nigeria share the top position in ECOWAS area. Liberalization has beneficial effects on trade only if it is combined with supporting policies aimed at stimulating domestic competition in services sectors.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"2 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84682929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Labor Share, Foreign Demand and Superstar Exporters","authors":"Ludovic Panon","doi":"10.2139/ssrn.3646969","DOIUrl":"https://doi.org/10.2139/ssrn.3646969","url":null,"abstract":"This paper proposes a new determinant of labor share changes. Using micro-data on the universe of French manufacturing exporters over 1995-2007, I show that a measure of export demand growth exogenous to firm-level outcomes drives down the manufacturing labor share through two effects. First, foreign demand shocks allow low-labor share, highly internationalized “superstar” exporters to grow disproportionately more. Second, foreign demand growth decreases the labor share of exporters and this effect is stronger for larger exporters. Both effects explain 12% of the labor share decline over 1995-2000 and led to a 1.2 percentage point drop over 2000-2007. A simple model of endogenous competition with heterogeneous firms rationalizes the findings. A market size increase allows exporters to expand, which decreases their share of fixed labor cost in value-added, and increases competition on international markets. Fiercer competition favors superstar exporters, further decreasing their labor share through the fixed cost channel. Overall, these findings provide direct causal evidence of a “winner take most” phenomenon induced by trade globalization.<br>","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"31 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73166058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"UA v. China Trade War: Interplay within Global Economy and Politics","authors":"John Fawole","doi":"10.2139/ssrn.3735461","DOIUrl":"https://doi.org/10.2139/ssrn.3735461","url":null,"abstract":"It is so germane for the growth of any country, that's the reason we can notice that the countries that are dominating are such that are well established in commerce. Seeing then the salient vitality of trade, over the years there have been \"trade war\" and of course, this trade war has reverberated on global politics in no small measure. Hence, this paper accords the privilege to have this topic distilled and jurisprudentially fine-tuned.<br>","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"42 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86522263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Limitations of the Use of Modernization Theory in Formulating and Implementing Development Policies in Africa – The case of Tanzania and Malawi","authors":"Lloyd George Banda","doi":"10.2139/ssrn.3747783","DOIUrl":"https://doi.org/10.2139/ssrn.3747783","url":null,"abstract":"Despite the progress that Africa has been making in terms of economic development, many countries still face issues such as poverty, inequality, and conflict. Africa houses have plentiful economic resources. Paradoxically, the continent languishes in poverty as evidenced by high prevalence of famine, diseases and ignorance (Matunhu, 2011). For example, out of 189 countries that are ranked by UNDP Human Development Index (HDI), Seychelles – the first African country with 0.801 index is ranked 62 globally (World population Review, 2020). Again, there are only 9 countries including Seychelles that are categorized within High HDI adding Mauritius, Algeria, Tunisia, Botswana, Libya, South Africa, Gabon and Egypt. These are the only African countries out of 54 with HDI above 0.700. The point of reference in this article, Tanzania and Malawi sit 159 and 172 respectively on HDI global rank. This shows that Malawi sits 18th from the bottom. Apart from HDI, another related measure of living standard is real GDP per head. 2019 real GDP per capita shows that most African countries sit at the bottom with Tanzania and Malawi on 153 and 182 respectively. Malawi is found at 8th position shy from the bottom (worldbank.org, 2019). <br><br>This manuscript attributes the poverty and economic stagnation to theories of development because the way African society deals with underdevelopment is influenced by development theories more specifically the highly used modernization theory of development by Talcott Parson. In the explicitness of this manuscript, there is no place of blame on African countries for employing the theory rather it aims to excavate the loop holes of modernization theory in order to expose its shaky premises that makes it unworthy to be used for policy formulation and programming<br>","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"41 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74133688","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Governance of the Surabaya’s West Shipping Channel","authors":"S. Anwar","doi":"10.31014/aior.1992.03.04.292","DOIUrl":"https://doi.org/10.31014/aior.1992.03.04.292","url":null,"abstract":"The governance regarding shipping safety in the Surabaya's West Shipping Channel is very important because it affects the smoothness of movement of ships, which carry goods and passengers to the ports in Surabaya City. Due to the frequent occurrence of ship accidents in the channel, there is a possibility that these were caused by several factors related to the governance in the shipping channel. The required data was obtained from relevant informants, while other supporting information was obtained by direct observation in the field. Then the data was analyzed using descriptive qualitative method. From this analysis, it was found several findings concerning the factors causing the accident of ships in the shipping channel, namely: the technical condition of the ships, the level of professionalism of the ship's crews, natural factors, the condition of navigation aids, and installation of infrastructures in the sea. The next findings were about things that have not been achieved by the government, such as law enforcement regarding the ships’ maintenance, education and training for the ship's crew especially in handling ships’ accidents at sea, law enforcement regarding the installation of undersea infrastructures, and the installation of proper navigation aids along the shipping channel.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81634794","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New Underlying Trends in China’s Cross-Border Investments","authors":"David Yu","doi":"10.2139/ssrn.3721857","DOIUrl":"https://doi.org/10.2139/ssrn.3721857","url":null,"abstract":"Abstract. As global macroeconomic uncertainties grow, there are notable shifts and oscillations in Chinese outbound investment and cross-border investment flows. This study shows China’s key investment characteristics including geographical preferences, investment compositions, and structural changes in industrial and foreign policies, such as Made in China 2025, financial liberalization, and OBOR. While these trends seem contradictory at times, opportunities are available for nimble and creative players who could capitalize on China’s increasing demand in the new economy (“xin jing ji ”), with adequate consideration of regulatory scrutinies. Keywords. Cross-border, China, Outbound, Investments, Regulations. JEL. F21, F68, O53, K23 .","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76963970","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Export Destinations and Margins of Trade: Evidence from Pakistan","authors":"Zara Liaqat, Karrar Hussain","doi":"10.2139/ssrn.3718135","DOIUrl":"https://doi.org/10.2139/ssrn.3718135","url":null,"abstract":"Using detailed customs data on the universe of import and export transactions from Pakistan, we attempt to empirically relate the variation in unit values of narrowly defined products to export market attributes, such as, market size and distance from the destination country. Although there is a systematic positive effect of market size on f.o.b. unit values, we discover a substantial degree of heterogeneity in the response of within-firm unit values to distance over various categories of exporters. While greater distance is associated with a lower unit price charged by exporters of multiple products as well as those using imported inputs, firms exporting only, with no domestic sales, tend to sell more expensive product varieties to distant markets. We also relate unit value adjustments to the overall volume and value of exports by firms. Our results lend support to the additive trade costs hypothesis à la Hummels and Skiba (2004) as well as within-product heterogeneity in demand elasticities à la Lashkaripour (2019), and the significance of price discrimination effects in determining spatial patterns of export prices. Furthermore, we obtain compelling evidence in favour of asymmetric effects of distance and destination country’s size over sectors.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"9 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90469338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Russia's Balance of Payments in Q3 2020","authors":"A. Bozhechkova, P. Trunin","doi":"10.2139/ssrn.3717909","DOIUrl":"https://doi.org/10.2139/ssrn.3717909","url":null,"abstract":"In Q3 2020, Russia’s favorable trade balance plunged compared to the same period last year due to a contraction in exports under a relatively stable volume of export deliveries. Nevertheless, despite a combination of the most adverse factors, current account balance remained favorable. Having said that, in July-September there was net outflow of capital that was due primarily by a reduction in financial liabilities before non-residents of other sectors of economy in the wake of raising geopolitical risks and decline in the interest of investors towards assets of developing countries.As a result, in Q3 2020, ruble’s exchange rate dropped by 14% and from the start of the year – by 29%.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"115 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83212462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"China’s Investments in Africa: Does Investment Facilitation in Africa Matter?","authors":"Ke Xia, E. Devadason","doi":"10.2139/ssrn.3714131","DOIUrl":"https://doi.org/10.2139/ssrn.3714131","url":null,"abstract":"China, through its open policy, has enhanced its cooperation with Africa through outward foreign direct investments in the region’s production capacity. The paper constructs a composite investment facilitation index (and five sub-indices reflecting different types of investment facilitation) for 19 African countries spanning the 2010 to 2017 period using the entropy weight method. It then employs the investment gravity model to analyze the impact of African investment facilitation on China’s investments in the Continent. Investment facilitation levels of most African countries are found to be relatively low, except for South Africa, and Morocco. The empirical results support a significant and positive impact of investment facilitation in Africa on China’s direct investments in the former. From a disaggregated investment facilitation perspective, the application of information technology, financial services efficiency and quality of institutions are found to be significant for aiding China’s investments in Africa.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81594317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}