European Political Economy Research Papers (original) (raw)

This article analyses the extent to which the Covid-19 pandemic crisis represents a window of opportunity towards fundamental change in the economic governance of the European Union (EU). Adopting a historical institutionalist (HI)... more

This article analyses the extent to which the Covid-19 pandemic
crisis represents a window of opportunity towards fundamental
change in the economic governance of the European Union (EU).
Adopting a historical institutionalist (HI) perspective and drawing
insights from the policy learning literature, we argue that contingent learning immediately took place and policy entrepreneurs
took important decisions recognising the new crisis as an existential
threat for the EU. Further, the pandemic crisis support fund and the
ECB pandemic emergency purchase programme represent
instances of single loop learning that leave the fundamentals of
economic governance untouched. However, and in contrast to the
Euro area crisis response, the adoption of the Recovery and
Resilience Facility (RRF) represents a bold decision and suggests
double-loop learning. It is argued that the Covid-19 crisis is a critical
juncture for the EU. As a result, EU economic governance ceases to
be limited to its regulatory function and is now complemented by
a redistributive function as well.

This essay develops a contemporary analysis of the Global Economic Diplomacy. The intent is to provide a theoretical and methodological basis for further understanding of the economic relations and international negotiations complicated... more

This essay develops a contemporary analysis of the Global Economic
Diplomacy. The intent is to provide a theoretical and methodological basis
for further understanding of the economic relations and international
negotiations complicated procedure. After contextual and generic discussion on the topic, it approaches the question of the European Union role in Economic Diplomacy and its various levels of power that constitutes its institutional structure and the connection of these with others actors
capable of influencing Brussels decisions. In particular, it’s discussed the
useful capability of the European Union to control and to operate within the
international market. Sequentially, it demonstrates how the theoretical
questions tabled in the first section of the work, apply to real events. In
fact, the last segment focuses on three case studies. All of which are
relatively recent episodes within the Italian political, economic reality. The
first analyses the economic diplomacy from the central state point of view.
The timeframe covered starts with Berlusconi’s period as prime minister in
the early 2000’s to conclude with the events of the subprime financial crisis
in 2008. It’s also highlighted the deep interconnections between political
decisions and economic repercussion both on the civil society as well as on the governmental structures itself. Indeed, all this approach is linked to the effects of the globalised international market in internal affairs.
Sequentially, the final case studies take into consideration a different
perspective of the political and economic circumstances worldwide. Hence, it is intended to analyse and understand deeply how corporations use the
instruments of economic diplomacy to guarantee positive economic
outcomes, influence governments and bend policy decision-making.
Additionally, it reveals the importance of how these companies deal with an
international crisis.
The timeframe of this study is relatively short, however, incredibly dense in
events that transformed the international economic arena thoroughly.
Furthermore, the necessity to tackle the subject of economic diplomacy
from a multi-sectoral perspective generates astonishing curiosity and
enthusiasm because grants space to seek to understand throughout several academic fields. Hence, the attempt to connect, link and intertwine different study areas and academic fields into one very current and important subject was the main challenge of this work.

The theoretical literature on monetary integration has been traditionally dominated by the theory of optimum currency areas (OCA). This analysis has its origins in a debate, during the 1960s, between Mundell, McKinnon and Kenen about the... more

The theoretical literature on monetary integration has been traditionally dominated by the theory of optimum currency areas (OCA). This analysis has its origins in a debate, during the 1960s, between Mundell, McKinnon and Kenen about the criteria which delineate the optimal domain of a currency area. Between the 1980s and early-1990s the traditional OCA theory was gradually modified in line with new theoretical developments. This new phase led to a “new” OCA theory with very different policy implications compared with the traditional approach. The Treaty of Maastricht symbolized the triumph of the new OCA paradigm. The euro crisis has, instead, represented the revenge of the traditional approach. This paper traces how the optimum currency area theory has evolved over time and uses the OCA theory as a framework within which the Eurozone’s governance, crisis and future are examined. Evidence presented in this paper suggests that the Economic and Monetary Union (EMU) has had asymmetric effects on its member States while it lacks of adequate instruments to deal with them. The fact that the EMU did not constitute an OCA, according to the traditional paradigm, contributed to the crisis of the euro area. The paper leads to the conclusion that, without the introduction of supranational adjustment mechanisms, the Eurozone will not survive its own imperfections.

The chapter argues that the neoliberal doctrine, which emerged in the 1980s as a response to the crisis of the Keynesian economics, has shaped both the IMF's conditionality policy and the European economic governance. The orthodox... more

The chapter argues that the neoliberal doctrine, which emerged in the 1980s as a response to the crisis of the Keynesian economics, has shaped both the IMF's conditionality policy and the European economic governance. The orthodox prescriptions known as the Washington Consensus have formed the " one-size-fits-all approach " applied for several decades by the IMF. The EU has given constitutional strength to the neoliberal principles through the Maastricht Treaty of 1992. However, this chapter also shows that the latest global financial crisis has represented a turning point for the IMF-EU consensus on macroeconomic policy. European policy makers have adopted a hyper-conservative approach by remaining devoted to the economic orthodoxy. The Fund has, instead, engaged itself in an open-minded discussion about the best policies to promote stability and growth which has led IMF researchers to challenge all the main neoliberal tenets.

The European crisis is the best case study for examining both the vulnerabilities of Europe's framework for economic governance and the very process of European integration itself. This statement is true for several reasons: first,... more

The European crisis is the best case study for examining both the vulnerabilities of Europe's framework for economic governance and the very process of European integration itself. This statement is true for several reasons: first, because the European crisis is the most serious crisis the European Union has faced to date; second, because of the crisis, limits on the process of economic integration in Europe have been put to a real test; and third, because the main causes of the crisis are tied into the framework for economic governance that has been developed over the last few decades and therefore are connected to the very process of European unification itself. The primary aim of this paper is to demonstrate whether and to what extent the new framework for economic governance in Europe is largely a result of interstate bargaining and consequently whether national preferences continue to play an important role in the framework's general transformation. The economic crisis showed that important issues in economic policy concerning the change in economic governance and the role of the nation-state, which were ‘swept under the carpet’ in recent decades, must be resolved to make the European venture viable.

This volume is made up of a selection of papers originally presented at the 9th international conference on European integration entitled: “The Europe of Tomorrow: Creative, Digital, Integrated” which was held in Skopje on 15 May 2014.... more

This volume is made up of a selection of papers originally presented at
the 9th international conference on European integration entitled: “The Europe of Tomorrow: Creative, Digital, Integrated” which was held in Skopje on 15 May 2014. The volume seeks to critically address the potential challenges and opportunities for building a stronger European Union which relies on creativity, innovation and digital technologies and considers how the EU should strengthen its basic political values of freedom, solidarity and integration. As such, the papers were written at a time when the member states of the European Union were slowly emerging from the global economic crisis, which had had such a deep impact upon the EU since 2008.

Recent analyses of international affairs highlight that states are increasingly exploiting the key position of some private industries in critical hubs of global economic networks to gain an advantage over their competitors. The key role... more

Recent analyses of international affairs highlight that states are increasingly exploiting the key position of some private industries in critical hubs of global economic networks to gain an advantage over their competitors. The key role of private companies in international competition has also significant implications in the cyber-domain, where private actors are the main owners of data and digital infrastruc-tures. In contrast to those who see a transformative effect of cyber, this article draws on comparative political economy and defense policy to identify two different models of state-industry relations in the governance of cybersecurity. The theoretical framework distinguishes between public and private governance ecosystems and identifies different hypotheses on how states and industries interact in cyberse-curity governance in France and in the UK. The French public governance is characterized by the presence of formal and informal relations between state and industries, a high degree of public investment in the private sector and centralized institutions. France has also used the EU mainly to advance its industrial interests. In contrast, the UK private governance is characterized by more arm's length relations between the state and industries and a less centralized system. Moreover, the UK, differently to France, has not used the EU channel to advance its industry-related preferences. These results confirm the macro-differences between public and private governance ecosystems and open new relevant avenues to investigate the interplay between political economy structures and European and international pressures in policy-areas with both economic and security implications.

When referring to macroeconomic governance of the EU, we mean the supply side of the economics: all policies that deal with change in inflation, price levels, rate of growth, national income, gross domestic product and unemployment.... more

When referring to macroeconomic governance of the EU, we mean the supply side of the economics: all policies that deal with change in inflation, price levels, rate of growth, national income, gross domestic product and unemployment. Therefore, in this paper, we focus on monetary and fiscal policy, as well as on banking supervision. With “asymmetric” structure, we intend to indicate the lack of equality or equivalence in the governance of the different Member States, as well as the heterogeneity of the governance, which does not prevent economic asymmetric shocks in the Union.

This paper discusses the challenges that the EU faces in relation to economic democracy and work. The first part of this paper looks at the need for political alternatives against the background of the failure of current strategies to... more

This paper discusses the challenges that the EU faces in relation to economic democracy and work. The first part of this paper looks at the need for political alternatives against the background of the failure of current strategies to tackle the increasing social and economic inequalities that have been exacerbated by the financial, economic and social crisis that started in 2008. It proposes that fostering ́economic democracy ́ should be a cornerstone of the social democratic strategy in Europe, tracing the history and theory of the concept as well as its possibilities and limitations. The second part of the paper looks at the existing situation of different tools for economic democracy in Europe, with a particular focus on cooperatives. It firstly explores the empirical implications of economic democracy through the example of cooperatives. It then looks at what policies could be pursued on a European level to support cooperatives, and also briefly looks at the policies that could be implemented to expand economic democracy beyond the development of the cooperative sector. It then discusses the limitations in theory and practice to this policy solution. Finally, it highlights some initiatives which a progressive European political movement could put on the agenda in order promote social justice and democratic accountability at the work place.

The paper explores the determinants of foreign direct investment (FDI) in Sudan over the period (1970–2010). The study considers the market size, inflation rate, exchange rate, indirect taxes, trade openness, and investment incentive... more

The paper explores the determinants of foreign direct investment (FDI) in Sudan over the period (1970–2010). The study considers the market size, inflation rate, exchange rate, indirect taxes, trade openness, and investment incentive policy as factors influencing FDI. The study uses the cointegration and error-correction techniques to identify the short- and long-run dynamics of the FDI determinants. The Johansen cointegration test statistics indentify four cointegrating relations among the series, which implies an existence of long-run relationship among the FDI determinants. The results of the long-run FDI equation indicate that FDI flows in Sudan are influenced by the market size, inflation rate, exchange rate, and investment incentive policy. The error-correction term suggests that approximately 17% of total disequilibrium in FDI flows was being corrected each year. Moreover, Granger causality results show that there is a unidirectional causality running from each of the exchange rate, investment incentive policy, and the market size to FDI.