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Geoeconomic fragmentation, globalization, and multilateralism

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  • Norring, Anni

Abstract

The world is witnessing growing turbulence stemming from geopolitics and a tangible threat of economic disintegration. There are some indications of globalization in retreat, international trade growth slowing down and a transition from optimizing efficiency of global value chains towards ensuring their resilience. Disentangling the causes and effects of the various trends around global economic integration and pushing towards de-globalization is extremely difficult. This paper aims to inform the policy debate and the research agenda by giving an overarching view of geoeconomic fragmentation, i.e., economic disintegration driven by geopolitics. It defines the relevant concepts, channels of effect and amplification mechanisms, and discusses the main causes and implications of geoeconomic fragmentation.

Suggested Citation

  • Norring, Anni, 2024. "Geoeconomic fragmentation, globalization, and multilateralism," BoF Economics Review 2/2024, Bank of Finland.
    • Handle: RePEc:zbw:bofecr:289479
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    Cited by:

    1. Francesco Paolo Conteduca & Simona Giglioli & Claire Giordano & Michele Mancini & Ludovic Panon, 2024. "Trade fragmentation unveiled: five facts on the reconfiguration of global, US and EU trade," Questioni di Economia e Finanza (Occasional Papers) 881, Bank of Italy, Economic Research and International Relations Area.
    2. Norring, Anni, 2024. "The economic effects of geoeconomic fragmentation," BOFIT Policy Briefs 8/2024, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. Laser, Falk Hendrik & Mihailov, Alexander & Weidner, Jan, 2024. "Currency compositions of international reserves - recent developments," BOFIT Policy Briefs 6/2024, Bank of Finland Institute for Emerging Economies (BOFIT).

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    More about this item

    Keywords

    geoeconomic fragmentation; globalization; international monetary system; global financial safety net; multilateralism; costs of economic fragmentation;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F30 - International Economics - - International Finance - - - General
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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