De-Globalization
Abstract
Globalization conveys the widely accepted idea that we are living in a border-less world. According to this view, no notice is taken of distance or national policy anymore, dictated by global markets. However, the concept of de-globalization is starting to appear in literature with evidence of a growing awareness. It seems that there is a transition from globalization and trade integration to economic nationalism or de-globalization. Recent data suggests that the level of de-globalization is on the increase globally. This phenomenon may cause vulnerable countries to reassess their position in the global trade environment as conventional trade agreements and partners may be jeopardized. The COVID-19 pandemic has spilled over to the global economy triggering a massive decline in economic activity, mainly because of government mandated lockdowns and general mobility restrictions. This has also had a dramatic effect on the functioning of global value chains, increasing the visible threat of de-globalization. Recent trends associated with the move towards de-globalization among G-20 countries and concomitant risks are also explored.
Keywords:
Globalization, De-globalization, Economic nationalism, G-20 Countries, COVID-19, global value chainsReferences
Smith, A. (1937). The wealth of nations [1776] (Vol. 11937). na.
Albertoni, N. (2021). A Historical Overview of 21st-Century Protectionism: How Did We Arrive at This Point? Latin American Journal Of Trade Policy, 4(10), 5-23.
Albertoni, N. and Wise, C. (2020). International Trade Norms in the Age of COVID-19 Nationalism on the Rise? Journal of the Humanities and Social Sciences, 14(1), 41-66.
Anderson, S. (2021). “Biden Continues Trump’s Misguided Trade Policies”. Online:
https://www.forbes.com/sites/stuartanderson/2021/05/05/biden-continues-trumps-misguided-trade-policies/?sh=244405d94385 [accessed on Thursday, 10 June 2021]
Antras, P. (2020). De-globalisation? Global Value Chains in the Post-Covid-19 age. NBER Working paper series, Working Paper 28115. Cambridge, MA.
Baldwin, R. (2012). Global Supply Chains: Why they emerged, Why they matter, and Where they are going. Fung Global Institute, Working paper FGI-2012-1.
Block, W. (1998). The Necessity of Free Trade. Journal of Markets and Morality, 1(2), 192-200.
Business Standard. (2022). “What is RCEP?”. Companies. Online: https://www.business-standard.com/about/what-is-rcep. [accessed on Friday, 18 March 2022].
Butler, E. Ludwig Von Mises – A Primer (April 21, 2010). Institute of Economic Affairs, Occasional Paper 143, Available at SSRN: https://ssm.com/abstract=1632974.
Campanella, E. (2020). “Free trade is over”. Election 2020. Online: https://foreignpolicy.com/2020/11/05/protectionism-trump-biden-buy-american-tariffs/ [accessed on Thursday, 10 June 2021]
Das, S.B. (2017): De-globalisation sentiment carries risks for ASEAN economies, Yusof Ishak Institute, Singapore. No 15.
De Backer, K. and Flaig, D. (2017). The Future of Global Value Chains, Business as Usual or “A new normal”. OECD Policy Papers, no.41. OECD publishing.
de Bolle, M. (2019). The Rise of Economic Nationalism Threatens Global Cooperation. Peterson Institute for International Economics (PIIE). September.
Enderwick, P. and Buckley, P. (2020). Rising regionalisation: will the post-Covid-19 world see a retreat from globalisation? Transnational Corporations, 27 (2), 99-112.
Erb, G. and Sommers, S. (2021). “Biden’s Trade Policy and Free Trade Areas”. WITA. Online: https://www.wita.org/blogs/bidens-trade-policy/ [accessed on Thursday, 10 June 2021].
Evenett, S. (2019). Protectionism, state discrimination and international business since the onset of the Global Financial Crisis. Journal of International Business Policy, 2, 9-36.
Evenett, S.J. and Fritz, J. (2017): Will Awe Trump Rules? The 21st Global Trade Alert Report. Centre for Economic Policy Research (CEPR Press: London.
Evenett, S.J. and Fritz, J. (2019): Jaw Jaw not War War: Prioritising WTO Reform Options. The 24th Global Trade Alert Report. Centre for Economic Policy Research (CEPR Press: London.
Evenett, S.J. and Fritz, J. (2020): Collateral Damage: Cross-border Fallout from Pandemic Policy Overdrive. The 26th Global Trade Alert Report. Centre for Economic Policy Research (CEPR Press: London.
Fajgelbaum, P.D. and Khandelwal, A.K. (2016). Measuring the unequal gains from trade. The Quarterly Journal of Economics, 131(3), 1113-1180.
Fouda, R.A.N. (2012). Protectionism and Free Trade: A Country’s Glory or Doom? International Journal of Trade, Economics and Finance, 3(5), 351-355.
Frum, D. (2020). “Trump Is Attacking Global Trade. Would Biden Bring It Back?” The Atlantic. Online: https://www.theatlantic.com/ideas/archive/2020/05/biden-protectionism/611803/ 19 May 2020 [accessed on Thursday, 10 June 2021].
Gereffi, G. and Fernandez-Stark, K. (2016). Global Value Chain Analysis: A Primer. Duke Center on Globalization, Governance and Competitiveness. Social Science Research Institute.
Gladding, I. (2018). Rise of Economic Nationalism and its Implications. Lewis University, Experts Blog.
Greenspan, A. (2003). “Greenspan warns against creeping protectionism in trade”. The New York Times. Online: https://www.nytimes.com/2003/11/20/business/greenspan-warns-against-creeping-protectionism-in-trade.html
Hoffmann, J. and Kumar, S. (2013). Globalisation – the maritime nexus. The handbook of maritime economics.
IMF, (2022). World Economic Outlook. Online: https://www.imf.org/en/Publications/WEO. [accessed on 26 April 2022].
James, H. (2017): Deglobalization as a global challenge, Centre for International Governance Innovation, CIGI papers no. 135.
Karunaratne, N.D. (2012): The Globalisation-Deglobalization Policy Conundrum, Modern Economy, 3, pp. 373-383.
Kimura, F. and Chen, L. (2016). Implications of Mega Free Trade Agreements for Asian Regional Integration and RCEP Negotiation. Economic Research Institute for ASEAN and East Asia (ERIA). No. 2016-03. December.
Kutlina-Dimitrova, Z. and Lakatos, C. (2017). The Global Costs of Protectionism. Policy Research Working Paper no. 8277. World Bank
Livesey, F. (2018). Unpacking the Possibilities of Deglobalisation. Cambridge Journal of Regions, Economy and Society, 11(1), 177-187.
Lucas, B. (2020). Impacts of Covid-19 on inclusive economic growth in middle-income countries. Helpdesk Report, Knowledge, evidence and learning for development (K4D), 11May.
Luo, S. and Tsang, K.P. (2020). How much of China and world GDP has the Coronavirus reduced? Available at SSRN 3543760.
Magee, S.P. International Trade and Distortions in Factor Markets. New York: Marcel-Dekker, 1976.
Mankiw, N.G. (2009). Smart Taxes: An Open Invitation to Join the Pigou Club. Eastern Economic Journal, 35(1), 14-23.
Martin, M. (2018). Keeping it Real: Debunking the Deglobalization Myth, Brexit, and Trump: - “Lessons” on Integration. Journal of International Trade Law and Policy, 17(1/2), 62-68.
Mullen, A. (2022). Worlsd’s largest free trade agreement enters into force. Online: https://www.trademinister.gov.au/minister/dan-tehan/media-release/worlds-largest-free-trade-agreement-enters-force [accessed on Friday, 18 March 2022].
Murphy, J. (2019). Frederic Bastiat: Public Choice Theorist. Available at SSRN 3344752.
Newfarmer, R. (2012). Reducing the thickness of borders to promote trade and participation in global value chains, OECD Issues. Paper prepared for the Joint Meeting of the Development Assistance Committee and the Working Party of the Trade Committee on Aid for Trade, 10-11 September.
New Oxford Dictionary of English, (1998): Oxford: Harrendon Press.
OECD (2022). International trade during the COVID-19 pandemic: Big shifts and uncertainty. OECD. Policy Responses to Coronavirus (COVID-19). Online: https://www.oecd.org/coronavirus/policy-responses/international-trade-during-the-covid-19-pandemic-big-shifts-and-uncertainty-d1131663/. [accessed on 26 April 2022].
Olivie, I. and Gracia, M. (2020). The end of globalisation? A reflection on the effects of the Covid-19 crisis using the Elcano Global Presence Index. Elcano Royal Institute, ARI 60/2020, 4 May.
Postelnicu, C., Dinu, V. and Dabija, D.C., Economic Deglobalization – from Hypothesis to Reality, In: Ekonomie a Management (E&M), (2015): 18(2), 4–14.
Prelipcean, G. and Bucatar, D.G. (2019). Rising Protectionism within the Global Economy. Economic Sciences Series, Vol. XIX, (1).
Pryke, S. (2020). Economic Nationalism: Theory, History and Prospects. Global Policy Journal, online library.wiley.com.
Ricardo, D. (1821). On the principles of political economy. London: J. Murray.
Shukla, S. (2020). Covid-19 and globalisation, an analysis. Cape Comorin, Vol II, Issue IV, 60-64.
Tuca, S. (2013). The evolution of economic globalisation during the current global crisis. CES Working Papers, vol. V, issue 4.
VanGrasstek, C. (2019). The Trade policy of the United States under the Trump Administration. European University Institute. Robert Schuman Centre for Advanced Studies. EUI Working paper. RSCAS 2019/11.
Veseth, M, (1998): Selling globalization: The Myth of the Global Economy, London: Lynne Rienner.
Von Mises, L. (2010). A Primer. The Institute of Economic Affairs (IEA), Great Britain.
Williamson, J.G. (2002): Winners and Losers over two centuries of globalization, National Bureau of Economic Research, NBER working paper 9161.
Witt, M.A. (2019). De-globalization: Theories, Predictions, and Opportunities for International Business Research. Journal of International Business Studies, 50(7), 1053-1077.
Wolf, M. (2017). The long and painful journey to world disorder. Institute of Diplomacy and Global Affairs. The American College of Greece.
