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The Eurozone crisis and the rise of China in the global monetary and trading system: the political economy of an asymmetric shock

Ferdi De Ville UGent and Mattias Vermeiren UGent (2016) COMPARATIVE EUROPEAN POLITICS. 14(5). p.572-603
abstract
In this article we examine the role of China-EMU monetary and trade relations in the divergent evolution of the extra-regional trade balance of Germany and the GIPS countries (Greece, Italy, Portugal, Spain). These deepening relations generated an asymmetric shock in the Eurozone: while Germany largely benefited from the rise of China in the global monetary and trading system, the GIPS countries have been much less adapted. Drawing on the insights of the varieties of capitalism literature, we argue that the institutional adaptability of these countries to these deepening relations has been a function of the presence of particular labor market institutions that allow manufacturing firms to maintain their competitiveness. Coordinated labor market institutions supported Germany’s extra-regional trade balance performance by bestowing its manufacturing firms with comparative institutional advantages, whereas the absence of these labor market institutions in the GIPS rendered their manufacturing firms much less institutionally adjusted to deal with the competitiveness pressures associated with the rise of China. As such, EMU-China monetary and trade relations have been a contributing factor in the Eurozone debt crisis by forcing the GIPS countries to run increasing extra-regional trade deficits.
Please use this url to cite or link to this publication:
author
organization
year
type
journalArticle (original)
publication status
published
subject
keyword
Euro crisis, comparative capitalism, China, trade relations, asymmetric shock, monetary relations, CAPITALISM, EUROPE, EU, NEGOTIATIONS, ADJUSTMENT, IMBALANCES, ADVANTAGE, VARIETY, POWER, MODEL
journal title
COMPARATIVE EUROPEAN POLITICS
editor
Colin Hay
volume
14
issue
5
pages
572 - 603
publisher
Palgrave Macmillan
place of publication
Basingstoke
Web of Science type
Article
Web of Science id
000384930700003
JCR category
POLITICAL SCIENCE
JCR impact factor
1.524 (2016)
JCR rank
58/165 (2016)
JCR quartile
2 (2016)
ISSN
1472-4790
DOI
10.1057/cep.2014.35
language
English
UGent publication?
yes
classification
A1
copyright statement
I have transferred the copyright for this publication to the publisher
id
5668012
handle
http://hdl.handle.net/1854/LU-5668012
date created
2014-08-05 15:14:34
date last changed
2017-01-02 09:57:31
@article{5668012,
  abstract     = {In this article we examine the role of China-EMU monetary and trade relations in the divergent evolution of the extra-regional trade balance of Germany and the GIPS countries (Greece, Italy, Portugal, Spain). These deepening relations generated an asymmetric shock in the Eurozone: while Germany largely benefited from the rise of China in the global monetary and trading system, the GIPS countries have been much less adapted. Drawing on the insights of the varieties of capitalism literature, we argue that the institutional adaptability of these countries to these deepening relations has been a function of the presence of particular labor market institutions that allow manufacturing firms to maintain their competitiveness. Coordinated labor market institutions supported Germany{\textquoteright}s extra-regional trade balance performance by bestowing its manufacturing firms with comparative institutional advantages, whereas the absence of these labor market institutions in the GIPS rendered their manufacturing firms much less institutionally adjusted to deal with the competitiveness pressures associated with the rise of China. As such, EMU-China monetary and trade relations have been a contributing factor in the Eurozone debt crisis by forcing the GIPS countries to run increasing extra-regional trade deficits.},
  author       = {De Ville, Ferdi and Vermeiren, Mattias},
  editor       = {Hay, Colin},
  issn         = {1472-4790},
  journal      = {COMPARATIVE EUROPEAN POLITICS},
  keyword      = {Euro crisis,comparative capitalism,China,trade relations,asymmetric shock,monetary relations,CAPITALISM,EUROPE,EU,NEGOTIATIONS,ADJUSTMENT,IMBALANCES,ADVANTAGE,VARIETY,POWER,MODEL},
  language     = {eng},
  number       = {5},
  pages        = {572--603},
  publisher    = {Palgrave Macmillan},
  title        = {The Eurozone crisis and the rise of China in the global monetary and trading system: the political economy of an asymmetric shock},
  url          = {http://dx.doi.org/10.1057/cep.2014.35},
  volume       = {14},
  year         = {2016},
}

Chicago
De Ville, Ferdi, and Mattias Vermeiren. 2016. “The Eurozone Crisis and the Rise of China in the Global Monetary and Trading System: The Political Economy of an Asymmetric Shock.” Ed. Colin Hay. Comparative European Politics 14 (5): 572–603.
APA
De Ville, F., & Vermeiren, M. (2016). The Eurozone crisis and the rise of China in the global monetary and trading system: the political economy of an asymmetric shock. (C. Hay, Ed.)COMPARATIVE EUROPEAN POLITICS, 14(5), 572–603.
Vancouver
1.
De Ville F, Vermeiren M. The Eurozone crisis and the rise of China in the global monetary and trading system: the political economy of an asymmetric shock. Hay C, editor. COMPARATIVE EUROPEAN POLITICS. Basingstoke: Palgrave Macmillan; 2016;14(5):572–603.
MLA
De Ville, Ferdi, and Mattias Vermeiren. “The Eurozone Crisis and the Rise of China in the Global Monetary and Trading System: The Political Economy of an Asymmetric Shock.” Ed. Colin Hay. COMPARATIVE EUROPEAN POLITICS 14.5 (2016): 572–603. Print.