Good for some,bad for others: US investors and non-trade issues in preferential trade agreements

Preferential trade agreements (PTAs) trigger investment through their commitment to a liberal market economy. Increasingly however, PTAs go far beyond liberalizing trade and investment flows. Especially controversial features included in most modern PTAs are environmental and labor standards. Do these standards affect business activity? If so, how do investors react to such non-trade issues in trade deals? The literature provides inconclusive findings about the impact of standards on foreign direct investment (FDI). Some contributors argue that strict standards decrease FDI, whilst others claim that environmental and labor protection increases productivity and, in consequence, inward investment. In all likelihood, the usage of aggregated FDI data, as is the case for most studies, causes confusion. I expect standards to influence investors’ decisions – but heterogeneously across sectors. Environmental and labor standards should reduce FDI in polluting and low-skilled labor endowed industries, but increase investment in environmentally clean and high-skilled labor abundant sectors. Based on an original dataset of environmental and social standards in trade agreements and at the sector-level disaggregated US-FDI data, I find robust support for my argument. The paper provides a more nuanced picture on the standards and investment nexus: Standards have no uniform effect on multinationals. Instead, they are good for some, but bad for other industries.     

Executive capacity to control legislatures and presidential choice of cabinet ministers in East Asian democracies

How do presidents in new democracies choose cabinet ministers to accomplish their policy goals? Contrary to existing studies explaining the partisan composition of the cabinet with institutional characteristics, such as formal authority, we argue that the broader political context surrounding the president's ability to control the legislature can affect cabinet partisanship. By analyzing original data on cabinet formation in all presidential systems in East Asia since democratization, we find that when presidents are more likely to be dominant in executive–legislative relations, they have less concern about legislative support and more leeway to focus on policy performance by appointing nonpartisan cabinet members. This analysis suggests that understanding cabinet partisanship requires a view of cabinet appointments as a trade‐off between securing legislative support and managing policy performance, and the scope of this compromise depends on the strength of the president vis‐à‐vis the legislature.     

Consequences of Forced Residential Relocation: Early Impacts of Urban Renewal Strategies on Forced Relocatees’ Housing Opportunities and Socioeconomic Outcomes

Policymakers have actively pursued urban renewal and dispersal programs to deconcentrate poverty in urban neighborhoods. Relocation strategies lead to new housing opportunities and may encourage employment opportunities for relocated residents if resourceful contacts and job information become more easily available after the move. This study provides an innovative evaluation of the early impacts of involuntary relocation programs in the Netherlands on the housing careers, earnings and employment rates of forced relocatees. It establishes a quasi-experimental design by employing unique longitudinal individual-level population registry data from Statistics Netherlands: forced relocatees are tracked and matched to a control group consisting of similar residents that were not forced to move. A difference-in-difference design shows that forced relocatees are living in less deprived neighborhoods after the move. However, we find no conclusive evidence that this upgrade in housing leads to more socioeconomic opportunities for the forced relocatees.     

Introduction: Ideology,Propaganda, and Political Discourse in the Xi Jinping Era

The ideology, propaganda, and political discourse of the Communist Party of China (CPC) have continued to function as key elements of the political system of the People’s Republic of China (PRC) in the post-Maoist period since 1978. In the first term of the Xi Jinping leadership (2012–2017), the CPC, for instance, elaborated on its guiding ideological concepts, devised inventive ideational framings of phenomena usually perceived as tangible (such as the “New Normal”), engaged in complex intellectual debates on crucial topics (such as “eco-civilization”), intensified and diversified its argumentation patterns and discursive strategies, and consolidated ideational governance over some citizens’ individual values, beliefs, and loyalties. Furthermore, it is often no longer possible to differentiate between the CPC’s internal and external propaganda, as seemingly exclusively domestic ideational and discursive issues increasingly correlate with international phenomena. However, the trends in the Xi era do not present paradigmatic shifts, but rather an overall reassertion-cum-innovation of previous Maoist and post-Maoist uses of ideology, propaganda, and political discourse, primarily aiming at strengthening one-party rule.     

Whose New Normal? Framing the Economic Slowdown Under Xi Jinping

After decades of double-digit economic growth, China experienced a significant drop in GDP growth rates in the wake of the global financial crisis. For the new Chinese leadership under Xi Jinping, who had assumed power in the fall of 2012, analysts predicted a looming crisis due to the alleged decline in the regime’s performance legitimacy. This article argues against a mechanistic application of the notion of performance legitimacy. Instead, it proposes to take into account the role of ideology in mediating public perceptions of regime performance. By tracking the career of the concept of “new normal” in Chinese public discourse over a period of three years – from late 2013 to late 2016 – it shows how the economic slowdown has been framed in ways conducive to the reproduction of regime legitimacy. The findings suggest an intense process of ideological contestation and decontestation, in which the domestic reflection of foreign audiences and their recognition of the Chinese regime’s performance have gained in importance.