The EU is becoming more inward-looking and more hesitant toward globalization. This paper examines recent transformations in the EU's economic policies, with a focus on international trade and industrial policy. It argues that these changes reflect the EU's response to the evolving global economic and political landscape, driven by factors such as China's rise and the United States’ protectionist policies. By analyzing the potential consequences of these policy adjustments on EU industries’ competitiveness and trade relations, the paper offers insights into the future prospects of EU economic policies and their role in shaping the global economy.

Chinese investment abroad has grown significantly in connection with the Belt and Road Initiative (BRI). This paper tries to answer two questions: First, what considerations gave birth to the BRI? And second, what are the project's economic effects in terms of capital flows and international trade? It is found that the project is above all a way to deal with large surplus capacity in China's capital-intensive industries, to increase growth in relatively poor regions of the country, and to secure a supply of energy and raw materials. For other countries involved in the project, BRI investments are a means to increase production and international trade. International trade and foreign direct investment have been positively affected, although to a limited extent. Finally, there are concerns that lack of transparency in Chinese lending may lead to increased corruption, and that some countries will face financial difficulties.

Large segments of the rural Timorese population survive on subsistence farming characterized by simple production methods and low output. Broad-based improvements in Timorese living standards require increased agricultural output. This article discusses what determines agricultural development in Timor-Leste and how such development can be achieved. The main causes of low agricultural output are found to be scarcity of land and capital, poor technology and education, and lack of government support, such as extension services and provision of infrastructure. We construct a model of an agricultural household to examine how increased market incentives will affect agricultural output and incomes. The effects of different price changes on household production, consumption, sales, income, and leisure are investigated. We find that the objective of increasing the living standard of Timorese farmers may in part be achieved via increased earning opportunities outside agriculture.

China needs a substantial growth of modern-sector employment to absorb its huge supply of underemployed people and new labor market entrants. The present crisis with its massive layoffs of workers makes the issue even more pressing. Although the government has announced large public investments to deal with the business cycle downturn, less attention has been paid to the structural aspects of Chinese underemployment. One exception is the recent emphasis of technology development. However, science and technology (S&T) can have both positive and negative effects on employment. Using information from a large sample of manufacturing firms in China between 1996 and 2004, we analyze how S&T affects employment. Our results suggest that S&T does not promote employment growth.

Cambodia has been growing rapidly over the past few years, but remains one of the poorest countries in East Asia. This paper analyzes rural poverty in Cambodia to identify the factors that explain its occurrence and persistence. The reduction of rural poverty in Cambodia requires (1) improvements in agricultural productivity and (2) the establishment of other income-earning opportunities for the rural population. Our econometric investigation of the 2004 Cambodian Socio-Economic Survey shows that the main causes of poverty differ between landowners and the landless, and between different regions. Increasing inputs to agriculture (e.g., fertilizers) is critical to increasing the welfare of landowning poor, and linkages with the rest of the economy are of vital importance to both landowners and the landless poor.

Small and medium-sized enterprises (SMEs) have been important for Vietnam's rapid economic development. This paper investigates the ways in which Vietnam's SMEs have been affected by the ongoing internationalization of the Vietnamese economy and points out the challenges that lie ahead if the country's plans for further trade liberalization are realized. The basis of our analysis is a unique database on the activities of a large sample of Vietnamese SMEs during 1990, 1996, and 2002, with quantitative data about company operations, as well as qualitative information about the entrepreneurs' perceptions of the current business environment and their expectations about the future.