Politics and economics

Ufuk Akcigit, Sina T. Ates, Josh Lerner, Richard Townsend, Yulia Zhestkova, 24 September 2020

The US military community has highlighted the potential security threat posed by foreign venture investments in Silicon Valley, particularly from Chinese stakeholders. This column presents a theoretical and empirical analysis of the relationship between venture capital and national security, focusing on the ability of overseas firms to gain a domestic technological advantage through investing in the US tech sector. The growing importance of this the technology sector, as well as the national security issues at stake, mean that understanding the correlations is a vital avenue of future research.

David Clayton, David Higgins, 23 September 2020

After Brexit, the UK government will enjoy greater freedom to encourage domestic consumers to “Buy British”. But as this column explains, attempts by successive UK governments in the 1970s and early 1980s to initiate such import substitution policies were fraught with economic and legal difficulties. Indeed, accelerating globalisation and the rapid growth of imports in intermediate products for assembly into ‘British’ goods raise significant problems in defining a ‘national’ product – and the growth of tradable services (such as insurance, education and healthcare) presents an even more intractable problem.

Caroline Le Pennec, Vincent Pons, Vestal McIntyre, 22 September 2020

The first televised debate between US President Donald Trump and Democratic challenger Joe Biden will take place next week. But while it is being portrayed as a make-or-break moment in the campaign, this column argues that TV debates between candidates do not substantially impact vote choice. Instead, a campaign wishing to sway last-minute voters might do better by focusing on individual outreach – a challenging prospect, given the Covid-19 pandemic.

Benny Kleinman, Ernest Liu, Stephen Redding, 17 September 2020

The increasingly prominent role of China in the world economy has led to widespread discussions concerning the balance of power, trade relations, and economic development. This column presents a new ‘friends and enemies’ model which is used to show that significant growth and welfare effects have stemmed from China’s shifting role, and that changes in trading clusters have varied across different sectors. The findings also suggest that as countries become less economically friendly in terms of the welfare effects of their productivity growth, they also become less politically friendly in terms of foreign policy. 

Runjing Lu, 04 September 2020

Many Americans blame China for Covid-19. Runjing Lu tells Tim Phillips that the way politicians have exploited the pandemic has led to an increase in prejudice against the US Asian community.

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