IDEAS home Printed from https://ideas.repec.org/a/wly/reggov/v15y2021i3p634-652.html
   My bibliography  Save this article

Power transitions and global trade governance: The impact of a rising China on the export credit regime

Author

Listed:
  • Kristen Hopewell

Abstract

The existing liberal international economic order was constructed during the era of American hegemony and has been heavily shaped by US power. How is the rise of China affecting global economic governance? This article analyzes the case of export credit, which has long been considered a highly effective international regulatory regime and an important component of global trade governance. I show that the rise of China is profoundly altering the landscape of export credit and undermining its governance arrangements. State‐backed export credit is a key tool of China's development strategy, yet I argue that an explosion in China's use of export credit is eroding the efficacy of existing international rules intended to prevent a competitive spiral of state subsidization via export credit. The case of export credit highlights a fundamental tension between liberal institutions of global governance and the development objectives of emerging powers.

Suggested Citation

  • Kristen Hopewell, 2021. "Power transitions and global trade governance: The impact of a rising China on the export credit regime," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 634-652, July.
    • Handle: RePEc:wly:reggov:v:15:y:2021:i:3:p:634-652
    DOI: 10.1111/rego.12253
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rego.12253
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rego.12253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keohane, Robert O., 1982. "The demand for international regimes," International Organization, Cambridge University Press, vol. 36(2), pages 325-355, April.
    2. Coppens,Dominic, 2014. "WTO Disciplines on Subsidies and Countervailing Measures," Cambridge Books, Cambridge University Press, number 9781107014770.
    3. Stein, Arthur A., 1982. "Coordination and collaboration: regimes in an anarchic world," International Organization, Cambridge University Press, vol. 36(2), pages 299-324, April.
    4. Justin Lin & Ha-Joon Chang, 2009. "Should Industrial Policy in Developing Countries Conform to Comparative Advantage or Defy it? A Debate Between Justin Lin and Ha-Joon Chang," Development Policy Review, Overseas Development Institute, vol. 27(5), pages 483-502, September.
    5. Moravcsik, Andrew M., 1989. "Disciplining trade finance: the OECD Export Credit Arrangement," International Organization, Cambridge University Press, vol. 43(1), pages 173-205, January.
    6. Sandra Lavenex & Omar Serrano & Tim Büthe, 2021. "Power transitions and the rise of the regulatory state: Global market governance in flux," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 445-471, July.
    7. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    8. William Lazonick, 2008. "Entrepreneurial Ventures and the Developmental State: Lessons from the Advanced Economies," WIDER Working Paper Series DP2008-01, World Institute for Development Economic Research (UNU-WIDER).
    9. Gregory Shaffer & Robert Wolfe & Vinhcent Le, 2015. "Can Informal Law Discipline Subsidies?," Journal of International Economic Law, Oxford University Press, vol. 18(4), pages 711-741.
    10. Dani Rodrik, 2008. "Normalizing Industrial Policy," World Bank Publications - Books, The World Bank Group, number 28009, December.
    11. Ken Warwick, 2013. "Beyond Industrial Policy: Emerging Issues and New Trends," OECD Science, Technology and Industry Policy Papers 2, OECD Publishing.
    12. Cornel Ban & Mark Blyth, 2013. "The BRICs and the Washington Consensus: An introduction," Review of International Political Economy, Taylor & Francis Journals, vol. 20(2), pages 241-255, April.
    13. Koremenos, Barbara & Lipson, Charles & Snidal, Duncan, 2001. "The Rational Design of International Institutions," International Organization, Cambridge University Press, vol. 55(4), pages 761-799, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dirk-Jan Koch, 2022. "Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies," SN Business & Economics, Springer, vol. 2(6), pages 1-21, June.
    2. Hoeffler, Anke & Sterck, Olivier, 2022. "Is Chinese aid different?," World Development, Elsevier, vol. 156(C).
    3. Xia, Ying & Chen, Muyang, 2023. "The Janus face of stateness: China's development-oriented equity investments in Africa," World Development, Elsevier, vol. 162(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olga Romanova & Alena Ponomareva, 2019. "Theoretical, Institutional and Ethical Basis for Implementing Modern Industrial Policy. Part I," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 13-28.
    2. Vu, Khuong M., 2018. "Embracing globalization to promote industrialization: Insights from the development of Singapore's petrochemicals industry," China Economic Review, Elsevier, vol. 48(C), pages 170-185.
    3. Jana M. Kleibert & Laura Mann, 2020. "Capturing Value amidst Constant Global Restructuring? Information-Technology-Enabled Services in India, the Philippines and Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1057-1079, September.
    4. Grumiller, Jan & Raza, Werner G., 2019. "Towards an institutional setup for industrial policy in late industrialization in the 21st century," Working Papers 61, Austrian Foundation for Development Research (ÖFSE).
    5. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726.
    6. Martínez Sola, María Luz, 2017. "Ocasos y resurgimientos de los Bancos Nacionales de Desarrollo en Latinoamérica: entendiendo factores que pudieron haber afectado las diversas trayectorias en Argentina y Brasil," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 27, pages 101-139, May.
    7. Marina V. Evseeva & Evgeny N. Starikov & Mikhail P. Voronov, 2021. "Technological development of industrial regions: The ecosystem approach," Upravlenets, Ural State University of Economics, vol. 12(3), pages 13-30, July.
    8. Mann, Laura & Kleibert, Jana Maria, 2020. "Capturing value amidst constant global restructuring? Information technology enabled services in India, the Philippines and Kenya," LSE Research Online Documents on Economics 103356, London School of Economics and Political Science, LSE Library.
    9. Schulz, Nicolai, 2020. "The politics of export restrictions: A panel data analysis of African commodity processing industries," World Development, Elsevier, vol. 130(C).
    10. John Weiss & Adnan Seric, 2021. "Industrial policy: Clarifying options through taxonomy and decision trees," Development Policy Review, Overseas Development Institute, vol. 39(5), pages 773-788, September.
    11. Antonio Andreoni & Ha-Joon Chang, 2016. "Industrial policy and the future of manufacturing," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 491-502, December.
    12. Sandrine Labory, 2014. "Determining Industrial Policy in Current Conditions of Competition," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    13. Kim, Kyunghoon & Sumner, Andy, 2021. "Bringing state-owned entities back into the industrial policy debate: The case of Indonesia," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 496-509.
    14. Simachev, Y. & Kuzyk, M. & Pogrebnyak, E., 2018. "Federal Industrial Policy: Basic Models and Russian Practice," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 146-154.
    15. Schneider, Volker & Werle, Raymund, 1988. "Regime oder korporativer Akteur? Die EG in der Telekommunikationspolitik," MPIfG Discussion Paper 88/4, Max Planck Institute for the Study of Societies.
    16. Constantino Hevia & Norman V. Loayza & Claudia Meza-Cuadra, 2023. "Industrial Policies vs Public Goods under Asymmetric Information," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 46(91), pages 39-52.
    17. Kleibert, Jana M. & Mann, Laura, 2020. "Capturing Value amidst Constant Global Restructuring? Information-Technology-Enabled Services in India, the Philippines and Kenya," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(4), pages 1057-1079.
    18. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    19. Mao, Jie & Tang, Shiping & Xiao, Zhiguo & Zhi, Qiang, 2021. "Industrial policy intensity, technological change, and productivity growth: Evidence from China," Research Policy, Elsevier, vol. 50(7).
    20. Pianta, Mario, 2018. "Produrre," MPRA Paper 110089, University Library of Munich, Germany.
      • Pianta, Mario, 2018. "Produrre," MPRA Paper 84392, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:reggov:v:15:y:2021:i:3:p:634-652. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1748-5991 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.