The Demand for Protectionism: Democracy,Import Elasticity,and Trade Barriers

Numerous studies suggest that democracies employ lower trade barriers than nondemocracies. In this article, we examine the conditioning role that the elasticity of import demand at the commodity level plays on the relationship between democracy and import barriers. Beginning with the assumption that democracies are more responsive than nondemocracies to the preferences of mass publics, we demonstrate that the value of free trade as a public good depends on the elasticity of import demand. When import demand for a given commodity is inelastic, trade barriers are more harmful to consumers; as such, democracies will employ lower trade barriers than nondemocracies. However, as import demand becomes more elastic, publics find it easier to adjust to higher prices; as a result, the difference in imposed trade barriers by regime type decreases. We find support for this argument in statistical analyses of crosssectional data covering 4,656 commodities imported by 73 countries Furthermore, we find that democracies raise higher trade barriers than nondemocracies on commodities for which import demand is very elastic.     

Do Democracies Attract Portfolio Investment? Transnational Portfolio Investments Modeled as Dynamic Network

For many, transnational capital is an important driving force of economic globalization. However, we know little about the political determinants for cross-border portfolio investments. Recent economic literature focuses upon information asymmetries. We move beyond this and introduce an explicitly political element into the study of international asset flows. Democratic institutions attract portfolio investments because they reduce the chances of government predatory practices. Applying a dynamic latent space model on the bilateral portfolio investment data from 2001 to 2005, we empirically examine the effects of important country-level characteristics of both exporters and importers of portfolio investments. The empirical findings suggest that democracies are often associated with higher levels of inward portfolio investments. Interestingly, we also find that portfolio investments are associated with business communities’ subjective estimate of property rights protection, but not with more comprehensive, index-based aggregate measures from international think tanks.     

Zimbabwean Indigenisation and the Shadow Economy of Cinematic Production

ABSTRACT

In recent years, Zimbabwe has suffered a political and economic crisis, which has generated impulses that have traumatised the country's film industry, among many other sectors. Resultantly, Zimbabwe's cinematic context of production has been reimagined and reconfigured in recent years. The southern African country's ruling elite, during former president Robert Mugabe's tenure, championed controversial policies of indigenisation in economic sectors, partly as a way of countering external economic and political hostilities. This article explores how the Zimbabwean film economy has responded to postcolonial indigenisation impulses and how the production context has developed parallel to or in tandem with this reality. It teases out the challenges and prospects posed by impulses of indigenisation in Zimbabwe to the country's fledgling film production industry by analysing the video-film production value chain post-2000, when the indigenisation agenda emerged and was consolidated. Informed by the theorisation of the shadow economies of cinema, the study employed in-depth interviews to collect data from purposively selected Zimbabwean filmmakers and policymakers. Thematic analysis was used to analyse this data. The study shows that indigenisation has been a pragmatic response to the economic trauma facing the film industry, although it has, in turn, sent out its own traumatic impulses that continue to affect the industry's structure and aesthetic.     

European‐Atlantic Security Institutions: Current state and future prospects

Since the turn of the millennium, scholars and pundits have been musing over the decline of the West. The disappointing US military invasions in Afghanistan and Iraq, together with the subprime mortgage crisis, seem to be evidence of an abrupt end to America's ‘unipolar’ moment. In Europe, the sovereign debt crisis has amplified Europe's long-term structural economic problems and laid bare the fragile institutional foundation on which the Economic and Monetary Union was built. At the same time, the BRICs and other emerging economies have been growing at unprecedented rates. Those same analysts see a ‘decoupling’ in the world economy: the developing economies pulling the world out of recession, while the advanced industrial economies are unable to solve their domestic difficulties. So to them, the events of the past five years signify the beginning of the end of Western influence, eventually leading to a more complete rebalancing of the world economy's current ‘Western’ system of governance. This article argues instead that the West still has a significant edge when it comes to most critical factors that determine long-term economic growth potential, including technology, innovative capacity, research and development, investment climate and education. Furthermore, the transatlantic economy is less vulnerable than the rest of the world to outside economic shocks and might eventually prove more capable of reform than many expect. The current malaise in the transatlantic community might therefore prove once again to be more cyclical than structural. Relying on linear projections, many are ‘crying wolf’ again, too loud and too soon.     

Bullins and Me: A Remembrance of Past Times

This article develops a critical appraisal of the UNESCO Creative Economy Report (2013). It dis-cusses continuity and change in the focus and message of the UNCTAD Creative Economy Reports. The UNESCO Report aims at Widening Development Pathways and provides a balanced engagement with the relation between culture and development. It is a welcome addition to the creative economy debate that is now uncontestably global in scope. In spite of many perks, there is always room for improvement. First, there is a need for more critical engagement with examples, including bad ones. Second, mobility and visa issues among artists remain a concern. Third, the problematic opposition of developed and developing countries is no longer useful. Finally, the limited historical framing of (cultural) policy issues often leads to myopic thinking.     

Risk Perceptions and Fear of Criminal Victimization Among Visitors to Jamaica

ABSTRACT

Tourism is viewed as being particularly vulnerable to crime and data on the attitudes of visitors and travel agents tend to confirm this. Visitor perceptions of the risk of being criminally victimized in Jamaica have tended to be somewhat negative although the rate of criminal victimization of tourists is fairly low. Visitors' perceptions of safety are thus not in keeping with the objective indicators of the risk of tourist victimization. This paper attempts to explain this disjuncture between risk perception and the reality of visitor victimization. It discusses the likely long-term effects, and suggests possible responses to it.     

The Kramer problem: Micro-macro resolution with a Danish pool

In a seminal paper, Kramer (1983) posed his “problem” for the study of economic voting with election surveys: the items administered can measure neither individual nor national economic wellbeing accurately. Instead these items of economic perception are laden with erroneous judgment and partisan bias. Thus, the investigation of economics and elections should not be a survey research enterprise. Here we show, through varied analyses in an extensive, well-gathered Danish election pool, that these fears are unfounded. The presence of strong sociotropic voting effects from surveys can be established, and reconciled with the observed effects of national fluctuations in the macro economy. Indeed, the micro- and macro- processes mirror each other, so resolving the Kramer problem.     

How Bush bungled Asia: militarism,economic indifference and unilateralism have weakened the United States across Asia

Abstract

Criticism of the Bush administration's policies in East Asia is hardly common fare. Roseate colors certainly pervade the picture painted by defenders of Bush's policies toward Asia who argue that relations between the US and that region have never been better. This paper shows to the contrary that the Bush administration politicized wide swaths of public policy, including foreign relations, in an effort to create a permanent Republican electoral majority. That effort created a host of failures in America's Asian relations. The article focuses on three central problems: excessive militarization of American foreign policy; economic mismanagement; and a unilateralism that distanced the US from the rising Asian regionalism. The failures are not irreversible however and a change in administration has the potential to revitalize cross Pacific ties.     

The new Korean political economy: beyond the models of capitalism debate

Abstract

A key theme within the literature on the evolution of the Korean political economy since the 1997/8 crisis has been the extent to which Korea remains a ‘developmental state’ or has pursued radical neoliberal reform. These debates have not only reflected a concern with understanding the Korean economy but with a wider set of questions relating to the future of capitalist diversity within a globalized economy. By the late 1980s Korea had come to be regarded as a model of successful state-led late capitalist development. Korean modern economic history has insured that questions relating to the extent that it has pursued neoliberal reform have been of keen interest to students of political economy globally. This paper argues that substantive neoliberal reform has taken place in Korea since 1997. The thesis that a new ‘developmental state’ is in process of consolidating itself is simply wrong. However, the state's reform program interacted with material conditions and political coalitions at the meso level in a complex and uneven manner. In certain critical sectors, such as finance, a neoliberal regulatory regime has been consolidated. In others, such as telecommunications, developmentalist regulatory structures have proven to be highly resilient. In order to fully understand the complexity of the contemporary Korean political economy it is necessary, therefore, to prioritize the importance of meso-level analysis.     

State transformation and resource politics: Australia and the regional political economy

Abstract

Although the 1994 Agreed Framework offers a solution to the North Korean nuclear crisis, many problems may prevent its successful implementation. Should the Agreed Framework break down, the United States and South Korea have indicated that they will ask Japan to join them in a trilateral economic sanctions regime.

Japanese participation would include the severance of trade and financial flows, including money sent to North Korea from Japan's ethnic Korean community. In this paper I examine this financial flow, and, finding it a valuable linkage to the North Korean economy, conclude that Japanese participation is vital for a successful sanctions regime against North Korea.

Given this, I examine whether or not Tokyo's cooperation will be forthcoming. Japan would be inclined to participate given that it has a strong interest in eliminating a regional nuclear threat. Furthermore, Japan would also feel pressure from its allies to display diplomatic leadership in the Asia‐Pacific region, as befits a country of its economic importance.

Despite these international reasons for Japanese participation, domestic factors will be likely to prevent Tokyo from joining a sanctions regime: constitutional questions, the possibility of terrorist reprisals, interest in Pyongyang's regime maintenance, concerns for the rights of Japan's ethnic Korean community, and political ties between North Korean and Japanese politicians. I find that these domestic factors will outweigh international pressures for Japanese participation, and thus conclude that in the event of a breakdown in the Agreed Framework, alternatives to a trilateral sanctions strategy against North Korea must be considered.