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Europe in the World Research Seminar - When Internationalisation Increases Economic Protectionism: Multinational Companies and Orchestration of Political Activity Along Trade Networks

Dates:
  • Wed 05 Dec 2018 15.00 - 17.00
  Add to Calendar 2018-12-05 15:00 2018-12-05 17:00 Europe/Paris Europe in the World Research Seminar - When Internationalisation Increases Economic Protectionism: Multinational Companies and Orchestration of Political Activity Along Trade Networks

Why do we see trade barriers in highly international sectors? If economies become ever more intertwined and production ever more fragmented, trade barriers present a challenge to doing easy business across borders. While the literature has so far argued that supply chain networks boost open trade and contain protectionist interests, we have yet to explain why there is an increasing amount of trade barriers erected in sectors that are highly integrated into supply chains. This presentation addresses this gap and argues that internationalisation also creates a demand for protective trade barriers from the most internationalised economic actors – i.e. multinational companies (MNCs). These actors take advantage of their multi-country operations and orchestrate the raising of trade barriers with their affiliates to protect their supply chain operations. MNCs compartmentalise markets through vertical integration and develop multi-locational trade policy preferences. They subsequently coordinate the raising of trade barriers by orchestrating political activity along with their affiliates. I test the validity of my argument with a binomial logistic regression model using new dataset of European firms’ ownership data from the steel manufacturing sector and provide support of my proposition.

Sala Triaria, Villa Schifanoia DD/MM/YYYY
  Sala Triaria, Villa Schifanoia

Why do we see trade barriers in highly international sectors? If economies become ever more intertwined and production ever more fragmented, trade barriers present a challenge to doing easy business across borders. While the literature has so far argued that supply chain networks boost open trade and contain protectionist interests, we have yet to explain why there is an increasing amount of trade barriers erected in sectors that are highly integrated into supply chains. This presentation addresses this gap and argues that internationalisation also creates a demand for protective trade barriers from the most internationalised economic actors – i.e. multinational companies (MNCs). These actors take advantage of their multi-country operations and orchestrate the raising of trade barriers with their affiliates to protect their supply chain operations. MNCs compartmentalise markets through vertical integration and develop multi-locational trade policy preferences. They subsequently coordinate the raising of trade barriers by orchestrating political activity along with their affiliates. I test the validity of my argument with a binomial logistic regression model using new dataset of European firms’ ownership data from the steel manufacturing sector and provide support of my proposition.


Location:
Sala Triaria, Villa Schifanoia

Affiliation:
Robert Schuman Centre for Advanced Studies
Department of Political and Social Sciences
Department of History and Civilization
Max Weber Programme

Type:
Research seminar

Organiser:
Professor Ulrich Krotz (EUI - RSCAS and SPS)
Richard Maher (EUI - RSCAS)
Corinna Unger (EUI - HEC)

Contact:
Naïs Ralaison - Send a mail

Speaker:
Aydin Baris Yildirim ( EUI - RSCAS)

Discussant:
Madalina Dobrescu (EUI - RSCAS)

Links:
Europe in the World Research Area
 
 

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