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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
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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.
Keywords
Euro crisis, comparative capitalism, China, trade relations, asymmetric shock, monetary relations, CAPITALISM, EUROPE, EU, NEGOTIATIONS, ADJUSTMENT, IMBALANCES, ADVANTAGE, VARIETY, POWER, MODEL

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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.
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.
Chicago author-date
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.
Chicago author-date (all authors)
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.
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.
IEEE
[1]
F. De Ville and M. Vermeiren, “The Eurozone crisis and the rise of China in the global monetary and trading system: the political economy of an asymmetric shock,” COMPARATIVE EUROPEAN POLITICS, vol. 14, no. 5, pp. 572–603, 2016.
@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’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},
  keywords     = {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},
}

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