The question

What are the political sources and consequences of economic globalization?

Current frameworks for understanding the politics over economic globalization emphasize a fragmentation of politics: political conflict breaks down to individual firms and citizens, because the gains from trade are concentrated on large, globally engaged, and politically active firms.

Departing from this view, PINPOINT develops an innovative framework built on the linkages between firms created by domestic production networks. Production ties imply a much broader impact of economic globalization, because many domestic firms interact with international markets indirectly — as suppliers and as customers of globally engaged firms.

Moreover, these linkages vary in quantity and quality. To date, we know surprisingly little about the role of production networks in politics, which creates a mismatch between the structure of modern economies and current theoretical frameworks. Ignoring such ties risks misattributing the impact of economic globalization, overlooking economic roots of political coalitions, and misunderstanding the sources and consequences of economic globalization.

The approach

PINPOINT places economic exchange between firms front and center in an account of the behavior of governments, firms, and citizens in the context of international markets, and of the role of institutions in such an account.

The project will provide theoretical and empirical innovations that lead to a revised understanding of the political underpinnings of economic globalization and of the mechanisms through which institutions shape economic globalization.

The framework

PINPOINT will develop an innovative framework that is built on the linkages between firms created by domestic production networks. This will help foster a better understanding of:

Government Behaviour
How governments respond to the political pressures arising from production network structures and globalization.
Citizen Preferences
How citizens form attitudes toward trade and globalization, based on their embeddedness in production networks.
Political Coalitions
How production ties shape the formation of political coalitions — and why these coalitions often transcend industry or firm interests.