Local Content Requirements: Promises and Pitfalls

Local content requirements (LCRs) are becoming increasingly popular due to anti-globalization and geopolitical tensions. They reduce fair competition, lower trade and productivity, and lower world economic output and human welfare. This book investigates countries around the world, including the US, China, Indonesia, and resource-intensive countries, and presents product- and firm-level analyses. It is a useful resource for policymakers, researchers, and advanced undergraduates interested in international trade, industrial policy, political economy, labor economics, and development economics.

Format: Hardback
Length: 272 pages
Publication date: 06 November 2023
Publisher: Taylor & Francis Ltd

As anti-globalization and geopolitical tensions continue to escalate, the use of local content requirements (LCRs) around the world has gained increasing prominence. These requirements aim to promote domestic supply availability, job creation, and enhanced value addition while also serving as a means to safeguard national security. In their comprehensive examination, Ing and Grossman explore both country-specific and firm-product-level exercises to shed light on how LCRs hinder fair competition, leading to reduced trade and productivity, ultimately impacting world economic output and overall human welfare. The book provides a detailed analysis of countries across the globe, with a particular focus on the United States, China, Indonesia, and resource-intensive countries, including those with a heavy reliance on mining. Additionally, the book offers product- and firm-level analyses to unravel the motivations behind countries adopting LCRs and their actual effects on the global economy.

This book serves as a valuable resource for policymakers, researchers, and advanced undergraduates interested in international trade, industrial policy, political economy, labor economics, and development economics. It offers a comprehensive understanding of the dynamics and implications of LCRs in the global context, providing insights that will be of great value in shaping policy and understanding the economic landscape.

Dimension: 234 x 156 (mm)
ISBN-13: 9781032542232