Globalisation,Reterritorialisation and the Political Economy of Tourism Development in the Middle East

A major limitation of most political economy studies of globalisation is that they view globalisation almost exclusively in terms of deterritorialisation. This essay, in contrast, emphasises how increases in the transnational mobility of people, capital and information can also result in reterritorialisation, which is the increased relevance of location and characteristics of place for global economic activity. In contrast to the erosion of the territorially based powers of nation-states often associated with deterritorialisation, the reterritorialisation of economic activity can increase the power and regulatory influence of state, societal and transnational agents who are able to exert control over territorial assets and the reterritorialisation process. The essay uses the concepts of deterritorialisation and reterritorialisation to develop a framework to analyse the changing political economy of one of the most understudied aspects of globalisation, the international tourism economy. With a focus on the development strategies of states in the Middle East and North Africa, the essay explores efforts to generate ‘experiences of place’ for tourists and territorial-based economic rewards for firms and their political consequences.     

中国自由贸易试验区（FTZ）：演变特征与深化趋势

建设高质量的中国自由贸易试验区,在我国改革开放进程中具有里程碑意义。本文在分析全球典型自贸区代表模式和制度特征的基础上,系统性总结中国自贸试验区的总体深化特征与趋势,以及各自贸试验区制度创新的差异,明确中国在自贸试验区建设改革中应发挥的使命。通过分析发现,中国自贸试验区发展存在四大主要问题,包括全球复杂局势带来的新挑战、自贸试验区建设侧重偏差、制度创新的立法保障缺位、高水平开放支撑动力不足,后续针对性提出了更好发挥自贸试验区作为高水平开放基点的制度创新对策,期望借此契机完善全国自贸试验区内部联动机制,尽快消除国内外经贸规则差异,为我国加快高质量自贸试验区的建设、加速高水平开放的实现,提供有益的经验启示。     

Borders and Governance: An Analysis of Health Regulation and the Agri-food Trade

The contemporary dynamics of states, borders, and markets suggest the need for non-traditional methods of regulation and international cooperation in areas such as border inspections and management. The emerging literature on cross-border regions and multi-level governance suggests a framework to understand this development within the general transformation of states under globalisation. To explore these ideas, in this article we focus on the arena of health regulation and the international agricultural and food trade. Multilateral bodies such as the World Trade Organization (WTO), the World Organization for Animal Health (OIE), and the International Plant Protection Convention (IPPC) have endorsed the policy concept of “regionalisation” as a means by which states can preserve trade relations when sanitary (human or animal health) or phytosanitary (plant health) hazards threaten a country's trading status. In this paper, two cases – one historical and one contemporary – illustrate that regionalisation offers a largely functional application of multi-level governance to enhance regulatory and trade capacity. We conclude that governance changes indicated by regionalisation may provide further evidence for the transformation of borders, regions, and states in an era of globalisation.     

The Trans-Political Nature of Southwest China’s Energy Conduit,Yunnan Province

Transboundary flows of energy across Yunnan Province in China and to Southeast Asian states provide insight into the changing nature of borders and border areas. Rather than monolithic symbols of state sovereignty, China’s southwest borders in Yunnan can be more accurately characterised as zones of connectivity and exchange, serving a range of local, national and regional objectives. Energy production and distribution in and across Yunnan can be understood as functioning in a set of dynamic transnational processes that serve as economic and political bridges – increasing interaction and deepening regional integration – while also working to mitigate risk to China’s energy demands. In this article, energy projects in Yunnan and Southeast Asia demonstrate the ways border regions can respond to increasing globalisation, simultaneously strengthening national energy security while promoting regional interconnection and diplomacy. Thus, connections to and through a once peripheral region present an apparent contradiction: once rigid territorial borders are increasingly characterised by transboundary infrastructure development and exchanges of energy, capital and diplomacy, while promoting broader, diversified national energy security objectives – essentially strengthening national security through transnational energy projects. This article investigates how energy development works to shape Yunnan’s role as an “energy conduit,” while advancing both transnational and national geopolitical objectives, and thus, suggesting that these projects can be understood as trans-political in nature.     

Economic integration agreements,border effects,and distance elasticities in the gravity equation

Using a novel common econometric specification, we examine the measurement of three important effects in international trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration agreements, international borders, and bilateral distance. First, recent studies focusing on precise and unbiased estimates of effects of economic integration agreements (EIAs) on members׳ trade may be biased upward owing to inadequate control for time-varying exogenous unobservable country-pair-specific changes in bilateral export costs (possibly decreasing the costs of international relative to intranational trade); we find evidence of this bias using a properly specified gravity equation. Second, our novel methodology yields statistically significant estimates of the declining effect of “international borders” on world trade, now accounting for endogenous EIA formations and unobserved country-pair heterogeneity in initial levels. Third, we confirm recent evidence providing a solution to the “distance-elasticity puzzle,” but show that these estimates of the declining effect of distance on international trade are biased upward by not accounting for endogenous EIA formations and unobserved country-pair heterogeneity. We conclude our study with numerical general equilibrium comparative statics illustrating a substantive difference on trade effects of EIAs with and without allowance for the declining effects of international borders on world trade.     

National borders,the global economy and geopolitics: A view from Yemen

The wider geographic scales of the new interdependencies called ‘globalisation’ are not new to peripheral states such as Yemen. In the colonial and post‐colonial world sensitivity to international developments has always been important in the course of local events. What is new is the particular configuration of political and economic institutions at various levels including, critically, the national level. This paper argues that, on the one hand, the new geography of economic and political ‘globalisation’ has left Yemen with distinctly ‘old’ forms of economic integration into world markets, but that, on the other hand, regional geopolitics have opened certain opportunities for Yemen's political elite to refashion itself as a strategic geopolitical player so as to maintain international flows of military and economic aid. The end result is the continued national dominance of these same elite. ‘Globalisation’ in this sense is a national political project.     

International trade and “Catching up with the Joneses”: Are the consumption patterns convergent?

We use a dynamic international trade model to analyse the implications of international trade for agents’ preferences and economic growth. This model is based on the home market effect with external habit formation (“catching up with the Joneses”) and “learning by doing” in production. We demonstrate the following: the historical composition of consumption in countries determines industrialization after trade; the preferences of agents converge after trade, independent of the economic results; and the welfare effects of trade may be positive or negative depending on trading partner characteristics. In some scenarios, autarky is strictly preferred to trade. Thus, international trade does not necessarily imply greater welfare, as is the typical result in a static context under CES preferences.     

Introduction to the Special Issue on Understanding the Current China-U.S. ‘Trade War’

ABSTRACT

One of the most important international economic events in 2018 was the China-U.S. “trade war.” With China’s growing role in the worldwide economy and geopolitical impacts, the United States has labeled China as a strategy competitor. This notes briefly introduce the six articles covered in the volume. We highlight the causes and possible economic consequences from the perspectives of the United States, China, Japan, the Europe, and even East Asian countries like Association of Southeast Asian Nations (ASEAN) countries.     

国际经济格局变动中的区域主义发展新趋势

本文研究指出全球化再造过程中新区域主义的特点和发展趋势,以及由此引发的学术界研究方法的巨大变革和对世界经济格局变动的影响,通过对美墨加协定、下一代欧盟复苏计划、东亚一体化RCEP协定的研究,论证了区域主义和全球化之间的关系,研究RTA本身与WTO是否一致,梳理并分析区域贸易协定是全球自由贸易的绊脚石还是垫脚石的争论,得出北美和欧盟的区域主义是全球化的“绊脚石”,更多是替代作用且具有防御性,而东亚的区域主义则是全球化的“垫脚石”,发挥互补作用且具有开拓性,RCEP在内容上是WTO的升级版,在范围上是WTO的降级版,中国未来在WTO改革、全球治理和人类命运共同体构建方面将担负更大的使命,通过新区域主义的形式推进全球化治理与改革,从“外围”走向“中心”。     

Keynes,the socialisation of trade,and international monetary institutions

While Keynes began formulating his ideas concerning the post-WWII international financial system in the early 1940s, the genesis of these ideas can be traced to his earlier work. The Keynes Plan represents the culmination of his search for adequate institutions that guide economic activity for the public good. The reasons given by Keynes for the establishment of an International Clearing Bank are relevant in the modern international economy, given the current imbalances in international trade. As Keynes argued for the socialisation of investment as a method to achieve full-employment in the domestic economy, he argued for the “socialisation of trade” as a method to achieve international economic balance among nations.     

US Credit Crisis and Spillovers to Asia

We review key highlights of the global credit crisis. We then consider how financial turmoil in the largest advanced economies might be transmitted to East Asia. The focus is on foreign trade links, international capital flows, currency market pressures and mismatches, financial sector fragilities, and countercyclical monetary and fiscal policy actions. We introduce a set of vulnerability indicators and explore whether an ordinal ranking of East Asian economies according to these vulnerability indicators seems to be related to the cross-country differences in estimated slowdowns of economic growth during the crisis. Finally, we discuss how Asian economies might encourage the adoption of a stronger regulatory and supervisory framework in the USA and whether some Asian economies and the USA might pursue a more “balanced” growth strategy after the crisis.     

Seapower and US Forward Presence in the Middle East: Retrenchment in Perspective

The winding down of military operations in Iraq and Afghanistan has prompted a scholarly debate around America’s evolving strategic role and posture in the broader Middle East. Allegedly, its isolated geographical position and “seapower” condition would allow the US to behave as an “offshore balancer”, by pulling back militarily, retreating from alliances and formal security commitments and relying on the different regional powers to balance each other. However, it remains unclear to what extent a seapower like the US would be able to effectively manipulate the balance of power in the Middle East from offshore. An examination of US strategy in the Middle East from 2009 to 2015 suggests that the main puzzle Washington confronts is not so much whether to retreat offshore or remain engaged onshore, but rather to work out the terms of onshore engagement. As this article shows, current US strategy in the Middle East revolves around the need to reconcile two seemingly contradictory sets of pressures. The first is that war fatigue, financial pressures and the ongoing reorientation of military-strategic resources towards the Asia-Pacific theatre do require that the US cuts back on its engagement elsewhere, including in the Middle East. The second relates to Washington’s deep-seated conviction that there is a direct correlation between US forward presence and the preservation of a favourable balance of power in the Middle East, which is itself critical to the security of other regions, including the Asia-Pacific. By discussing the relationship between seapower and forward presence, this article places US strategic retrenchment in the Middle East in perspective. In particular, the article transcends the rather vague notion of “balancing” and concentrates on US perceptions about which geographical areas in the Middle East need to be balanced, and how, i.e., through which alliances, instruments and policies.     

International Production and Distribution Networks in East Asia: Eighteen Facts,Mechanics, and Policy Implications*

International production/distribution networks in East Asia developed in the 1990s and after have distinctive features in their significance, extensiveness, and sophistication. This paper first lists “18 facts” on production/distribution networks in East Asia that have been identified by a number of studies using international trade data, microdata of Japanese multinational enterprises, and casual observations. It then presents a concept of two-dimensional fragmentation as a starting point of theoretically formalizing the phenomena of fragmentation and agglomeration. It finally discusses the policy environment in which the formation of production/distribution networks has been accelerated and policy implications of the existence of such networks for economic integration in East Asia.     

Gains from Trade versus Gains from Migration: What Makes Them So Different?

Would unrestricted “economic” migration enhance the potential gains from free trade? With free migration, consumers' feasible sets become non‐convex. Under standard assumptions, however, Walrasian equilibrium exists for a continuum of individuals with dispersed ability to afford each of a finite set of possible migration plans. Then familiar conditions ensuring potential Pareto gains from trade also ensure that free migration generates similar supplementary gains, relative to an arbitrary status quo. As with the gains from customs unions, however, wealth may have to be redistributed across international borders.     

The importance of the Logistics Performance Index in international trade

Logistics and transport increasingly play a pivotal role in international trade relations. The Logistics Performance Index (LPI) analyses differences between countries in terms of customs procedures, logistics costs and the quality of the infrastructure for overland and maritime transport. The aim of this article is to analyse the impact that each of these components has on trade in emerging economies using a gravity model. Furthermore, the study also attempts to detect possible advances in logistics in developing countries, which are grouped into five regions (Africa, South America, Far East, Middle East and Eastern Europe) by comparing the first LPI data published in 2007 with the most recent data, released in 2012. The results obtained reveal that improvements in any of the components of the LPI can lead to significant growth in a country’s trade flows. Specifically, LPI components are becoming increasingly important for international trade in many countries in Africa, South America and Eastern Europe.     

Introduction: Postnational Politics in the European Union

During the Cold War, “buffer” or “bastion” seemed a popular metaphor to describe Turkey. After the Cold War, “bridge,” (and, to some extent, the “crossroad”) metaphor started to dominate the Turkish foreign policy D??course. This article traces the use of “bridge” metaphor in this D??course in the post-Cold War period by the Turkish foreign policy elite. It develops two arguments. First, the word bridge is a “metaphor of vision” combining Turkey's perceived geographical exceptionalism with an identity and a role at the international level. As a “metaphor of vision,” the employment of the word “bridge” highlighted Turkey's liminality and justified some of its foreign policy actions to Eurasia and then to the Middle East. Second, because the bridge metaphor was used in different context to justify different foreign policy choices, its meaning has changed, illustrating that metaphors are not static constructs. It concludes by Say?ng that the continuous use of “bridge” metaphor might reinforce Turkey's “liminality,” placing Turkey in a less classifiable category than the regular “othering” practices.     

US Trade Policy in the Trump Administration

President Donald Trump has emphasized three recurring themes regarding trade policy: the importance of trade balances, including bilateral trade balances, currency manipulation to gain unfair advantage in trade, and “disastrous” trade agreements. Asia figures prominently in these concerns. Trump withdrew the United States from the Trans‐Pacific Partnership, is increasing contingent or process protection, demanding the renegotiation under duress of the North American Free Trade Agreement and the Korea‐United States Free Trade Agreement. These policies are modeled quantitatively and results generated for sectoral output and employment at the state and metropolitan area level.     

The 2016 Veblen-Commons Award Recipient: Daniel W. Bromley: Institutional Economics

Institutional economics remains impaired by a lack of agreement as to the meaning of the concept “institution.” At the practical level, this conceptual muddle prevents progress in the crucial task of helping problematic states in Africa, parts of South Asia, and the Middle East. Thousands of refugees seeking to enter Europe are a reminder of the tragic consequences of dysfunctional states. Standard international development programs — emphasizing economic growth and fighting poverty — are counter-productive because they fail to address the underlying institutional incoherence in fragile states. They are flawed because they focus on symptoms rather than reasons. A focus on the reasons for current dysfunctional states would bring attention to the defective institutional architecture — legal relations — that prevents the emergence of economic coherence where dysfunction now reigns. We must help countries craft economic institutions that will improve livelihoods. But conceptual coherence about institutions must first emerge from the academy.     

The Heckscher–Ohlin model and the network structure of international trade

This paper estimates for 28 product groups a characteristic parameter that reflects the topological structure of its trading network. Using these estimates, it describes how the structure of international trade has evolved during the 1980–2000 period. Thereafter, it demonstrates the importance of networks in international trade by explicitly accounting for their scaling properties when testing the prediction of the “Heckscher–Ohlin” model that factor endowment differentials determine bilateral trade flows. The results suggest that factor endowment differentials increase bilateral trade in goods that are traded in “dispersed” networks. For goods traded in “concentrated” networks, factor endowment differentials are less important.     

东亚区域经济合作新模式:中国-东盟自由贸易区

2001年11月在第五次东盟与中国领导人（10＋1）会议上，中国与东盟达成一致，确立了10年内建成中国－东盟自由贸易区的目标。这对双方关系的长远发展和东亚地区的繁荣稳定具有深远意义。它是中国继加入世界贸易组织后又一件对外经贸方面的重大事件。本就这一东亚区域合作的新模式产生的国际背景，以及实现目标所面临的困难进行分析。