The paper builds a unique industry-level dataset by combining Mexico’s nationally sourced inputoutput data (INEGI) with cross-country sources (WIOD, UN Comtrade). Using this dataset to exploit higher supply linkages across a larger number of industries than what is available in cross-country sources, the paper estimates the trade diversion effect on Mexico’s exports to the U.S. from two episodes, with a focus on the first: the U.S.-China trade tension in 2018 and the U.S. sanctions on Russia in 2014. Difference-in-differences, local projections and few other empirical methodologies are used. For the first episode, the paper finds higher trade diversion effects than estimates in literature. Output tariff plays an important role, and there is some evidence of a positive impact through downstream tariffs. The effects are stronger when nationally sourced input-output data is used compared to those derived from cross-country sources. Importantly, the magnitude of trade diversion across industries does not depend on Mexico’s industry-level trade exposure to the U.S., but rather on the U.S. tariff changes on Chinese goods, the decrease in imports from China, product substitutability with Chinese products, and (weakly) on Mexico’s GVC integration. Similarly, for the second episode, the paper finds positive trade diversion effects. Overall, the findings suggest that trade diversion effect might be higher than previously thought and the proper accounting of dataset and supply linkages makes a difference.

The latest World Economic Outlook reports economic activity was surprisingly resilient through the global disinflation of 2022–23, despite significant central bank interest rate hikes to restore price stability. Risks to the global outlook are now broadly balanced compared with last year. Monetary policy should ensure that inflation touches down smoothly, while a renewed focus on fiscal consolidation is needed to rebuild room for budgetary maneuver and to ensure debt sustainability. Structural reforms are crucial to revive medium-term growth prospects amid constrained policy space.

Regionalization in general and regional integration in particular have taken place at a growing pace since the end of the Cold War, when states were set free from various security overlays. Regional integration is ’logical’ as it is supposed to advance wealth and peace. Still, the picture is far from clear and the process of regional integration is not automatic; disintegration takes place, as we saw in the cases of the Soviet Union, Yugoslavia and Czechoslovakia to mention a few. This is the case not only in states recently brought together but also in traditional states like Britain, The Netherlands and Spain where strong groups strive for independence. In some places regionalization is flourishing, but regional integration is not. Some regional integration projects like the North American Free Trade Agreement and Mercosur seem to stagnate. Certainly there are limits to regional integration. This comprehensive volume, written by high profiled academics, covers these themes by examining eleven cases ranging from the lack of integration in the Arctic and the Middle East, to ongoing or progressing integration in Europe to uncover what ’blocks’ regional integration, the results of which are used for developing new theoretical insights.

The North American Free Trade Agreement (NAFTA) was bold and controversial from the start. When first conceived, it was far from obvious that it would be possible given the circumstances of the times. Drawing from a December 2013 Hoover Institution conference on "NAFTA at 20," this book brings together distinguished academics who have studied the effects of NAFTA with high-level policy makers to present a comprehensive view of the North American Free Trade Agreement. It looks at the conception, creation, outcomes so far, and the future of NAFTA from the perspective of economists, historians, and the aforementioned policy makers in the words of those who actually participated in the negotiations and research. In the context of the fundamental economic and political transformation of North America, they discuss the trade, real wage, and welfare gains that NAFTA has produced for the United States, Mexico, and Canada, along with a review of the major energy markets within and among the three countries. They include lessons from NAFTA for the future, both for NAFTA itself and for other trade agreements, and stress the importance of political leadership and providing information on the benefits of trade liberalization to voters and potentially ill-informed politicians who hear most loudly from the opponents.

"A very important and long-awaited major contribution to the debate . . . Her work cannot be ignored." --Nils Petter Gleditsch, Journal of Peace Research "Barbieri builds on a solid foundation of work on trade and conflict and specifies the conditions under which trade reduces and increases conflict. . . . The bottom line is that this is an important book in the study of trade and conflict because of its comprehensive approach." --Kathy L. Powers, Perspectives on Politics "Barbieri's analysis reveals the fundamental and intellectual weaknesses of the various arguments on this topic. [A] solid and timely contribution to the literature" --Choice The Liberal Illusion sheds light on an increasingly important question in international relations scholarship and the domain of policy making-whether international trade promotes peace. By examining a broad range of theories about trade's impact on interstate relations and undertaking a set of empirical analyses of the trade-conflict puzzle, Katherine Barbieri provides a comprehensive assessment of the liberal view that trade promotes peace. Barbieri's stunning conclusions depart from conventional wisdom in international relations. Consequently, The Liberal Illusion serves as an important counterargument and a warning call to policymakers who rely upon trade-based strategies to promote peace, strategies that appear to offer little hope of achieving their goals.

The "Taiwan question" has long been considered one of the most complicated and explosive issues in global politics. In recent years, however, relations between Taiwan and the Chinese mainland have improved substantially to the surprise of many. In this ground-breaking collection, distinguished contributors from the US, Asia, and Europe seek to go beyond the standard "recitation of facts" that often characterizes studies focusing on the Beijing-Taipei dyad. Rather, they employ a variety of theories as well as both quantitative and qualitative methodologies to analyze the ebbs and flows of the Taiwan issue. Their discussions clearly illuminate why there is a "Taiwan Problem," why conflict did not escalate to war between 2000 and 2008, and why cross-Strait relations improved after 2008. The book further reveals the limits of realism as a device to gain traction into the Taiwan issue, demonstrates the importance of taking into account domestic political variables, and shows how theory can be used to advance the cause of better China-Taiwan relations and to analyze the potential for future conflict over Taiwan. New Thinking about the Taiwan Issue is essential reading not only for students, scholars and practitioners with an interest in studying relations across the Taiwan Strait, but also for any reader interested in economics, international relations, comparative politics or political theory.

'International Handbook on the Economics of Integration edited by Miroslav Jovanovi? provides timely and rich academic contributions to considerations of the widest array of integration-related issues. European integration has been providing an inspiration to a number of academics and researchers. the Handbook is a recognition of the dynamic and strong solidarity of European integration. At the same time, the European Union often provided an example for integration schemes throughout the world which spread enormously since the mid-1990s. Leading experts from all continents contributed to this Handbook which will be a valuable input into academic and policy-making discussions and actions.' - José Manuel Barroso, President of the European Commission

There has been a lot of interest within the scientific and policy communities in the ‘resource curse’; that is, the tendency of mineral rich economies to turn into development failures. Yet, after more than 20 years of intensive research and action, ‘the curse’ still lingers as a very real global problem, because of volatile mineral prices, bad governance and conflict. This book incorporates current original research on the resource curse (from some of the most prominent contributors to this literature), combined with a critical reflection on the current stock of knowledge. It is a unique attempt to provide a more holistic and interdisciplinary picture of the resource curse and its multi-scale effects. This edited volume reflects the current academic diversity that characterises the resource curse literature with a mix of different methodological approaches (both quantitative and qualitative analyses) and a diverse geographical focus (Latin America, Sub-Saharan Africa, global). Taken together the studies emphasize the complexities and conditionalities of the ‘curse’ – its presence/intensity being largely context-specific, depending on the type of resources, socio-political institutions and linkages with the rest of the economy and society. This book was originally published as a special issue of the Journal of Development Studies.