Failed Globalisation

Flassbeck, Heiner; Steinhardt, Paul J.

doi:10.1142/11702

Cited by 2 publications

(4 citation statements)

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“…For some developing economies, FDI flows had a substantial impact on trade flows. In China, for example, 60%-70% of national exports were exports of western firms (Flassbeck & Steinhardt, 2018). It is moreover often a rather small number of TNCs, which exploits absolute advantages to reap monopolistic rents in world markets (UNCTAD, 2017).…”

Section: The Schumpeterian Theory In An International Conte X Tmentioning

confidence: 99%

“…The key question is therefore whether there is a mechanism in place, which would ensure that, in the medium to long term, nominal wages in the developing country rise with national productivity gains that are pushed upwards by the import (or copying) of Western technology (plus the inflation target). This is a sine qua non condition for widely spreading the fruits of technological progress, increasing living standards and generating a dynamic development process (Flassbeck & Steinhardt, 2018).…”

Section: Absolute Advantages International Trade Flows and Foreign Di...mentioning

confidence: 99%

“…Investments in new technologies thus become again a precondition for firms to increase their profitability and survive in the long run, which spurs domestic innovation and development (Schumpeter, 1942). On the other hand, in TNCs' host economies, the wage policies of international companies would put pressure on domestic companies to follow their lead and regularly adjust wages in line with productivity gains in the economy, which is a prerequisite for economic success and for developing countries to catch up (Flassbeck & Steinhardt, 2018).…”

Section: Shifting Priorities In International Tradementioning

confidence: 99%

“…We thus have a case in which, in terms of the macroeconomic conditions, companies in the poorer country could trade and compete on an equal footing with companies in the industrial country. The intertemporal dynamics created through investments and profits of pioneering firms could function in developing countries in the same way as in industrialised economies (Flassbeck & Steinhardt, 2018). This also includes dynamics that can be engendered through participation in GVCs.…”

Section: Absolute Advantages International Trade Flows and Foreign Di...mentioning

confidence: 99%

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Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Kaczmarczyk

Flassbeck

2023

Global Policy

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This article analyses the role of foreign direct investment (FDI) in trade and development theory and outlines the resulting implications for economic policy. We propose an alternative model of international trade and development based on absolute, not comparative advantages of firms, which are nested in countries but compete internationally. Applying a Schumpeterian theory of dynamic development, we consider how firms can either increase their competitiveness through productivity gains at a given wage level, or by combining the existing high level of productivity with lower wages in low‐income countries. We argue that the aim of competition policy must be to improve the quality of economic competition in international markets, limit monopoly rents and disincentivise rent‐seeking activities through the mere outsourcing of production. To that end, we propose that economic policy must reinstate rigorous wage bargaining regimes and make FDI subject to wage conditionality, obliging foreign companies to increase their wages in the host economy in line with average national productivity growth and the national inflation target.

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Section: The Schumpeterian Theory In An International Conte X Tmentioning

confidence: 99%

Section: Absolute Advantages International Trade Flows and Foreign Di...mentioning

confidence: 99%

Section: Shifting Priorities In International Tradementioning

confidence: 99%

Section: Absolute Advantages International Trade Flows and Foreign Di...mentioning

confidence: 99%

See 2 more Smart Citations

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Kaczmarczyk

Flassbeck

2023

Global Policy

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Montenegro’s Contentious Politics: How Clerical Protests brought Down the Government

Popović,

Ećimović

2023

Teoria Polityki

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Parliamentary elections in Montenegro in 2020 marked an end of Milo Đukanović’s ruling Democratic Party of Socialists, DPS. The defeat was an outcome of clerical protests led and organized by the Serbian Orthodox Church, SOC. This paper explores the contentious politics used by SOC to bring down the DPS-led government over the controversial Law on Freedom of Religions. SOC used its well-rooted repertoires of contention in nonviolent religious processions and channeled the discontent that was present among the people in Montenegro to its advantage. Montenegro’s democratic deficits and systemic corruption helped mobilize the people against Đukanović and DPS. First part contextualizes the evolution of relations between SOC and the government in the past thirty years, to determine the internal dynamics that would define religious re- volt in 2020. Second part looks specifically at religious processions traditionally used by SOC as a type of modular collective action for achieving its political aims. Finally, we dis- cuss how the strategy of non-violent protests of 2020, changed discourse and general mo- nopolization of anti-government sentiments led to a successful outcome at the elections. SOC not only accomplished its goal of terminating the Law, but continues to behave as a state above the state.

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Failed Globalisation

Cited by 2 publications

References 0 publications

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Montenegro’s Contentious Politics: How Clerical Protests brought Down the Government

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