The Rise in Economic Nationalism and Protectionism Policies; Fragmentation in the Global Economy

Abstract

World societies have benefited from the rules-based global trading system since 1945 and have experienced a period of prosperity full of opportunities. Especially in the last 30 years, globalization has accelerated and the increase in world trade has accelerated with China joining the World Trade Organization. However, since the second decade of the 21st century, global trade has encountered major shocks such as the trade wars between the USA and China, the Coronavirus pandemic and the Ukraine war. These shock waves have emerged as obstacles to international trade with trade policies such as export controls and import taxes in our age of intense interdependence. With the tension in geopolitical relations, the world's leading countries have begun to follow protectionist policies in order to ensure their economic security with increasing nationalist narrative. The fact that countries shift their production to close or friendly countries has also brought up discussions about fragmentation in the global economy. This study aims to analyze the rise in economic nationalism and protectionism policies triggered by global tensions in recent years and the course of fragmentation in the global economy.