Issue
Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
Publishing License
This is an open-access article distributed under the terms of
POLITICAL ECONOMY AND ITS IMPACT ON INTERNATIONAL TRADE
Corresponding Author(s) : Rabiul Islam
Humanities & Social Sciences Reviews,
Vol. 7 No. 3 (2019): May
Abstract
Purpose of the study: The aim of this study was to relate the political economy and its impact on trade and development of economy. One of the currently witnessed changes that strike out the most from previous years is the relatedness of each political economy aspect of the world. The dimension of economy can be found in different problems throughout the world and economy has become the most prioritized aspect in the 21st century.
Methodology: The data for this study were obtained from existing literatures on political economy and trade as well. The methodology heavily relied on the existing previous literatures on the subject being dealt with.
Results: The findings indicated that the government could decide to intervene in markets with the intention of limiting import or maximizing export. Trade barriers might be applied for the intention of limiting imports such as tariffs, import quotas, native gratified necessities, directorial strategies, and anti-dumping policies.
Implications: Protectionist policies are being implemented by country by the means of protecting the local market from international market that might risk the industries inside the nation and might resulted in the depletion of the nation’s sovereignty rate. Protectionist policy can be considered as a barrier towards trade but is essential for the long run local industry.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Abidin, I. S. Z., Haseeb, M. & Islam, R. (2016b). Regional Integration of the Association of Southeast Asian Nations Economic Community: An Analysis of Malaysia – Association of Southeast Asian Nations Exports. International Journal of Economics and Financial Issues, 6(2): 646-652.
- Abidin, I. S. Z., Haseeb, M., Chiat, L. W. & Islam, R. (2016a). Determinants of Malaysia – BRICS Trade Linkages: Gravity Model Approach. Investment Management and Financial Innovation, 13(2): 1-10. DOI: https://doi.org/10.21511/imfi.13(2-2).2016.14
- Alam, F., Siwar, C., Talib, B. & Islam, R. (2011). Impacts on International Migration and Remittances Growth. American Journal of Environmental Sciences, 7(1): 20-25, 2011. DOI: https://doi.org/10.3844/ajessp.2011.20.25
- Alshammari, S. D. & Islam, R.(2014). Export Performance Relationship among Malaysian Exporters. Advances in Environmental Biology, 8(7): 2287-2300.
- Bennett, M. K. (1941). International contrasts in food consumption. Geographical Review 31:365-374. DOI: https://doi.org/10.2307/210172
- Bernhofen, D. M. & Brown, J. C. (2004). A Direct Test of the Theory of Comparative Advantage: The Case of Japan. Journal of Political Economy, 112(1): 48-67. DOI: https://doi.org/10.1086/379944
- Bożyk, P. (2006). Globalization and the transformation of foreign economic policy. Aldershot, England: Ashgate Pub.
- Certo and Peter (1990), Strategic Management Process, Singapore, Mc Graw-Hill.
- David, D. (2006). Interpreting Qualitative Data: Methods for Analysing Talk, Text and Interaction (Third edition) [28 paragraphs]. Forum Qualitative Sozialforschung/Forum: Qualitative Social Research, 9(1), Art. 16.
- Deardorff, A. V. (1984). Testing trade theories and predicting trade flows,"Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1(1): 467-517. DOI: https://doi.org/10.1016/S1573-4404(84)01013-3
- Frankel, J. (2006). What do economists mean by globalization? Paper presented at the Academic Consultants Meeting Organized by the Board of Governors of the Federal Reserve System, Washington, DC, and September 28.
- Frieden, J. & Martin, L. (2002). International Political Economy: Global and Domestic Interactions. In Ira Katznelson and Helen Milner (eds.) Political Science: The State of the Discipline. New York: Norton. DOI: https://doi.org/10.4324/9780203518588
- Furrer, O., Thomas, H. & Goussevskaia, A. (2008). The Structure and Evolution of the Strategic Management Field: A Content Analysis of 26 Years of Strategic Management Research. International Journal of Management Reviews, 10: 1-23. DOI: https://doi.org/10.1111/j.1468-2370.2007.00217.x
- Ghansyam, S. (2010). International Trade theory and practice, New Delhi, Centrum Press, India.
- Gilpin, R., & Gilpin, J. M. (2006). Global political economy: understanding the international economic order. Oxford; Princeton: Princeton University Press.
- Goldeng, E., Grünfeld, L. A. & Benito, G. R. G. (2008). The performance differential between private and state owned enterprises: The roles of ownership, management and market structure. Journal of Management Studies, 45 (7): 1244–1273. DOI: https://doi.org/10.1111/j.1467-6486.2008.00790.x
- Heilmann, K. (2015). Does political conflict hurt trade? Evidence from consumer boycotts. Journal of International Economics99, 179-191. doi:10.1016/j.jinteco.2015.11.008 DOI: https://doi.org/10.1016/j.jinteco.2015.11.008
- Islam, R. & Siwar, C. (2010). Trade and Environment in the Forestry Sector: Towards Sustainable Forest Management. Asian Journal of Scientific Research, 3(1): 1-17, 2010 DOI: https://doi.org/10.3923/ajsr.2010.1.17
- Islam, R. (2012). Analysing of Trade and Environment in the Sustainable Forest Management towards Sustainable Development. Elixir International Journal (Elixir Social Science), 49(2012): 9775-9781.
- Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Manickam, N. (2017a). Determinants of Factors that Affecting Inflation in Malaysia. International Journal of Economics and Financial Issues, 7(2): 1-11.
- Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Rayaiappan, J. M. (2017b). Impact on Poverty and Income Inequality in Malaysia’s Economic Growth. Problems and Perspectives in Management, 15(1): 1-9. DOI: https://doi.org/10.21511/ppm.15(1).2017.05
- Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Sundari, A. (2017c). Effects of Minimum Wage Rate towards the Unemployment Rate. Journal of Applied Economic Sciences, 12(1): 207-222.
- Islam, R., Ismail, S. M. & Siwar, C. (2010). Analyzing of Trade Barriers to Timber Trade Policy. American Journal of Environmental Sciences, 6(1): 95-102, 2010 DOI: https://doi.org/10.3844/ajessp.2010.95.102
- Islam, R., Siwar, C. & Ismail, S. M. (2013). Impacts of Non-tariff Trade Barriers on Tropical Timber Trade in Malaysia. Elixir International Journal (Elixir Social Science), 58(2013): 15214-15218.
- KozanoÄŸlu, I. M., Demir, O. & Hulusi, M. (2011). The Heckscher-Ohlin Trade Theory and Technological Advantages: Evidence from Turkey and USA. Asian Transactions on Basic & Applied Sciences, 1(4): 2221-4291
- Krugman, P. (2008). Trade and Wages, Reconsidered. Brooking Papers and Economic Activity, Spring. DOI: https://doi.org/10.1353/eca.0.0006
- Kucukaksoy, I. (2011). Adam Smith's conceptual contributions to international economics: Based on the Wealth of Nations. BEH - Business and Economic Horizons, 4(1): 108-119 DOI: https://doi.org/10.15208/beh.2011.9
- Miller, R. C. (2008). International political economy: contrasting world views. London: Routledge. DOI: https://doi.org/10.4324/9780203927236
- Oatley, T. H. (2016). International Political Economy. 5th Edition. London Routledge, Taylor &Francis Group. Pages 416.
- Ricardo, D. (1891). Principles of political economy and taxation. G. Bell.
- Richard A. M. (1998). The Role of the State in the Fiscal Theory. in P. B. Sorensen (ed.), Public Finance in a Changing World, MacMillan Press, Ltd., Houndmills, Basingstoke, United Kingdom.
- Riley, B. & Miller, A. T. (2014). Why Trade Matters and How to Unleash It: Trade Rankings from the 2015 Index of Economic Freedom. International Economies.
- Robinson, R. B. & Pearce, J. A. (1988). Planned Patterns of Strategic Behavior and Their Relationship to Business-Unit Performance. Strategic Management Journal, 9(1):43 – 60. DOI: https://doi.org/10.1002/smj.4250090105
- Salleh, I. M. (2011). The complex process of cultural globalization in a rapidly changing society television drama reception among the Malays (Unpublished master's thesis). Thesis (Ph.D.) - Universiti Utara Malaysia.
- Schumacher, R. (2012). Adam Smith's theory of absolute advantage and the use of Doxography in the history of economics.Erasmus Journal for Philosophy and Economics, 5(2): 54-80 DOI: https://doi.org/10.23941/ejpe.v5i2.105
- Schumacher, R. (2013). Deconstructing the Theory of Comparative Advantage. World Economic Review, 2: 83-105
- Veseth, M. A. & Balaam, D. N. (2006). political economy. Encyclopedia Britannica. 548p.
- Vito, T. (2001). Globalization, Technological Development and the Work of Fiscal Termites. Brooklyn Journal of International Law, Vol. XXVI, No. 4. Pp: 12-19
- Vito, T. (2005). The Economic Role of the State in the 21st Century. Cato Journal, Vol. 25, No. 3, Fall. 126p.
- Yang, J. (2013). The effect of international trade on rule of law. Journal of East Asian Economic Integration, 17(1), 27-53. DOI: https://doi.org/10.11644/KIEP.JEAI.2013.17.1.258
References
Abidin, I. S. Z., Haseeb, M. & Islam, R. (2016b). Regional Integration of the Association of Southeast Asian Nations Economic Community: An Analysis of Malaysia – Association of Southeast Asian Nations Exports. International Journal of Economics and Financial Issues, 6(2): 646-652.
Abidin, I. S. Z., Haseeb, M., Chiat, L. W. & Islam, R. (2016a). Determinants of Malaysia – BRICS Trade Linkages: Gravity Model Approach. Investment Management and Financial Innovation, 13(2): 1-10. DOI: https://doi.org/10.21511/imfi.13(2-2).2016.14
Alam, F., Siwar, C., Talib, B. & Islam, R. (2011). Impacts on International Migration and Remittances Growth. American Journal of Environmental Sciences, 7(1): 20-25, 2011. DOI: https://doi.org/10.3844/ajessp.2011.20.25
Alshammari, S. D. & Islam, R.(2014). Export Performance Relationship among Malaysian Exporters. Advances in Environmental Biology, 8(7): 2287-2300.
Bennett, M. K. (1941). International contrasts in food consumption. Geographical Review 31:365-374. DOI: https://doi.org/10.2307/210172
Bernhofen, D. M. & Brown, J. C. (2004). A Direct Test of the Theory of Comparative Advantage: The Case of Japan. Journal of Political Economy, 112(1): 48-67. DOI: https://doi.org/10.1086/379944
Bożyk, P. (2006). Globalization and the transformation of foreign economic policy. Aldershot, England: Ashgate Pub.
Certo and Peter (1990), Strategic Management Process, Singapore, Mc Graw-Hill.
David, D. (2006). Interpreting Qualitative Data: Methods for Analysing Talk, Text and Interaction (Third edition) [28 paragraphs]. Forum Qualitative Sozialforschung/Forum: Qualitative Social Research, 9(1), Art. 16.
Deardorff, A. V. (1984). Testing trade theories and predicting trade flows,"Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1(1): 467-517. DOI: https://doi.org/10.1016/S1573-4404(84)01013-3
Frankel, J. (2006). What do economists mean by globalization? Paper presented at the Academic Consultants Meeting Organized by the Board of Governors of the Federal Reserve System, Washington, DC, and September 28.
Frieden, J. & Martin, L. (2002). International Political Economy: Global and Domestic Interactions. In Ira Katznelson and Helen Milner (eds.) Political Science: The State of the Discipline. New York: Norton. DOI: https://doi.org/10.4324/9780203518588
Furrer, O., Thomas, H. & Goussevskaia, A. (2008). The Structure and Evolution of the Strategic Management Field: A Content Analysis of 26 Years of Strategic Management Research. International Journal of Management Reviews, 10: 1-23. DOI: https://doi.org/10.1111/j.1468-2370.2007.00217.x
Ghansyam, S. (2010). International Trade theory and practice, New Delhi, Centrum Press, India.
Gilpin, R., & Gilpin, J. M. (2006). Global political economy: understanding the international economic order. Oxford; Princeton: Princeton University Press.
Goldeng, E., Grünfeld, L. A. & Benito, G. R. G. (2008). The performance differential between private and state owned enterprises: The roles of ownership, management and market structure. Journal of Management Studies, 45 (7): 1244–1273. DOI: https://doi.org/10.1111/j.1467-6486.2008.00790.x
Heilmann, K. (2015). Does political conflict hurt trade? Evidence from consumer boycotts. Journal of International Economics99, 179-191. doi:10.1016/j.jinteco.2015.11.008 DOI: https://doi.org/10.1016/j.jinteco.2015.11.008
Islam, R. & Siwar, C. (2010). Trade and Environment in the Forestry Sector: Towards Sustainable Forest Management. Asian Journal of Scientific Research, 3(1): 1-17, 2010 DOI: https://doi.org/10.3923/ajsr.2010.1.17
Islam, R. (2012). Analysing of Trade and Environment in the Sustainable Forest Management towards Sustainable Development. Elixir International Journal (Elixir Social Science), 49(2012): 9775-9781.
Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Manickam, N. (2017a). Determinants of Factors that Affecting Inflation in Malaysia. International Journal of Economics and Financial Issues, 7(2): 1-11.
Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Rayaiappan, J. M. (2017b). Impact on Poverty and Income Inequality in Malaysia’s Economic Growth. Problems and Perspectives in Management, 15(1): 1-9. DOI: https://doi.org/10.21511/ppm.15(1).2017.05
Islam, R., Ghani, A. B. A., Abidin, I. S. Z. & Sundari, A. (2017c). Effects of Minimum Wage Rate towards the Unemployment Rate. Journal of Applied Economic Sciences, 12(1): 207-222.
Islam, R., Ismail, S. M. & Siwar, C. (2010). Analyzing of Trade Barriers to Timber Trade Policy. American Journal of Environmental Sciences, 6(1): 95-102, 2010 DOI: https://doi.org/10.3844/ajessp.2010.95.102
Islam, R., Siwar, C. & Ismail, S. M. (2013). Impacts of Non-tariff Trade Barriers on Tropical Timber Trade in Malaysia. Elixir International Journal (Elixir Social Science), 58(2013): 15214-15218.
KozanoÄŸlu, I. M., Demir, O. & Hulusi, M. (2011). The Heckscher-Ohlin Trade Theory and Technological Advantages: Evidence from Turkey and USA. Asian Transactions on Basic & Applied Sciences, 1(4): 2221-4291
Krugman, P. (2008). Trade and Wages, Reconsidered. Brooking Papers and Economic Activity, Spring. DOI: https://doi.org/10.1353/eca.0.0006
Kucukaksoy, I. (2011). Adam Smith's conceptual contributions to international economics: Based on the Wealth of Nations. BEH - Business and Economic Horizons, 4(1): 108-119 DOI: https://doi.org/10.15208/beh.2011.9
Miller, R. C. (2008). International political economy: contrasting world views. London: Routledge. DOI: https://doi.org/10.4324/9780203927236
Oatley, T. H. (2016). International Political Economy. 5th Edition. London Routledge, Taylor &Francis Group. Pages 416.
Ricardo, D. (1891). Principles of political economy and taxation. G. Bell.
Richard A. M. (1998). The Role of the State in the Fiscal Theory. in P. B. Sorensen (ed.), Public Finance in a Changing World, MacMillan Press, Ltd., Houndmills, Basingstoke, United Kingdom.
Riley, B. & Miller, A. T. (2014). Why Trade Matters and How to Unleash It: Trade Rankings from the 2015 Index of Economic Freedom. International Economies.
Robinson, R. B. & Pearce, J. A. (1988). Planned Patterns of Strategic Behavior and Their Relationship to Business-Unit Performance. Strategic Management Journal, 9(1):43 – 60. DOI: https://doi.org/10.1002/smj.4250090105
Salleh, I. M. (2011). The complex process of cultural globalization in a rapidly changing society television drama reception among the Malays (Unpublished master's thesis). Thesis (Ph.D.) - Universiti Utara Malaysia.
Schumacher, R. (2012). Adam Smith's theory of absolute advantage and the use of Doxography in the history of economics.Erasmus Journal for Philosophy and Economics, 5(2): 54-80 DOI: https://doi.org/10.23941/ejpe.v5i2.105
Schumacher, R. (2013). Deconstructing the Theory of Comparative Advantage. World Economic Review, 2: 83-105
Veseth, M. A. & Balaam, D. N. (2006). political economy. Encyclopedia Britannica. 548p.
Vito, T. (2001). Globalization, Technological Development and the Work of Fiscal Termites. Brooklyn Journal of International Law, Vol. XXVI, No. 4. Pp: 12-19
Vito, T. (2005). The Economic Role of the State in the 21st Century. Cato Journal, Vol. 25, No. 3, Fall. 126p.
Yang, J. (2013). The effect of international trade on rule of law. Journal of East Asian Economic Integration, 17(1), 27-53. DOI: https://doi.org/10.11644/KIEP.JEAI.2013.17.1.258