Manufacturing Localization,Technology Backfire,and Economic De-globalization

Since the global financial crisis,global value chain(GVC)have been contracting amid the trend toward economic de-globalization.With GVC participation rate in mind as the core indicator of economic de-globalization,in this paper we create a multi-country general equilibrium model to characterize the mechanism by which manufacturing localization affects GVC participation rate.Our theoretical derivation shows that changes in the local manufacturing status of final products in various countries directly influence the GVC participation rate of those countries.When the local proportion of a country’s final products reaches a certain level,rising local proportion of intermediate inputs,economic growth below the world average level,and technology progress all cause the country’s GVC participation rate to decline,giving rise to de-globalization at the manufacturing and trade levels.We further provide a comprehensive interpretation based on an empirical test of the deep-seated causes of economic de-globalization in relation to such economic phenomena as increasing trade concentration,the“technology backlash”effect of the new industrial revolution,and economic growth driven by the combined forces of trade protectionism and quantitative easing.

China＇s Free Trade Ports： Effective Action Against the Threat of De-globalization

With sluggish external demand and increasing trade protectionism by the U5~l and the European Union, China is facing severe challenges in implementing its deeper, ongoing reforms. To respond actively to such challenges, the Communist Party of China ＂s 19th National Congress proposed to ＂promote a new pattern of all-round opening up. ＂ in particular, the establishment of JEee trade ports is considered an important means to realize deeper integration with the world economy. This paper discusses the background, the motivation, the possible challenges as well as a Jeasible path for the successful implementation of free trade ports in China. Based on the international experience, the construction or free trade ports in China requires .freer trade in goods, high mobility of talent and free capital flow.

Globalization Under the Spells of Breakdowns in Supply Chains, Regime Change, Regime Formation, and Alliance Restructuring: How Much Is Left for Public Goods?

In a paper conceived about five years ago(“Globalization and Public Goods:Too Big to Tackle?”)roughly a dozen factors were linked to explain important causal paths from globalization to the potential output of public goods.The Russian invasion of Ukraine,the corona epidemic,and the increased hegemonic rivalry between China and the U.S.interrupted or even destroyed many of the linkages between globalization and potential public good production.About five important detrimental paths involved in the meantime.In the present article we aim at linking what is left from the previous level of globalization or emerging to form a new and simplified causal model for likely linkages between truncated or(re-)emerging globalization,and the deadly needed output of public goods.These linkages refer to rules of climate control,go to trade linkages and arbitrary tariffs and trade interventions.Regime change,regime formation,and alliance restructuring address aspects of domestic rule and international stability.Selectorate theory,regime type,and exit options for political elites provide key explanatory factors in explaining globalization and public goods productions,or their decay.Where possible we use some data and transformation experiences corroborating our arguments.In other instances need for further empirical macro research will become clear.