Foreign States in Domestic Markets

Political economy debates have focused on the internationalisation of private capital, but foreign states increasingly enter domestic markets as financial investors. How do policymakers in recipient countries react? Do they treat purchases as a threat and impose restrictions or see them as beneficial and welcome them? What are the wider implications for debates about state capacities to govern domestic economies in the face of internationalisation of financial markets?

In response, Foreign States in Domestic Markets have developed the concept of 'internationalised statism', where governments welcome the use of foreign state investments to govern their domestic economies. These foreign state investments are applied to the most prominent overseas state investors, Sovereign Wealth Funds (SWFs). Many SWFs are from Asia and the Middle East and their number and size have greatly expanded, reaching $9 trillion by 2020. This book examines policies towards non-Western SWFs buying company shares in four countries: the US, UK, France, and Germany. Although the US has imposed significant legal restrictions, the others have pursued internationalised statism in ways that are surprising given both popular and political economy classifications. This book argues that the policy patterns found are related to domestic politics, notably the preferences and capacities of the political executive and legislature, rather than solely economic needs or national security risks. The phenomenon of internationalised statism underlines that overseas state investment provides policymakers in recipient states with new allies and resources. The study of SWFs shows that internationalisation and liberalisation of financial markets offer national policymakers opportunities to govern their domestic economies.

Meet the speakers and chair

Mark Thatcher is visiting professor at the European Institute, LSE  and Professor of Politics, Department of Political Science, Luiss University, Rome.  His research interests lie in comparative public policy and regulation in Europe. He has worked on the governance of markets, examining the creation and development of national and EU regulatory agencies, policies towards network industries and general competition policy, as well as neo-liberalism. In recent years, he has worked on Western policies toward Sovereign Wealth Funds. In addition, he is studying comparative policies towards cultural heritage, at both national and EU levels.

Tim Vlandas (@timvlandas) is Associate Professor in the Department of Social Policy and Fellow in St Antony’s College, both at the University of Oxford. He holds a PhD in European Political Economy from the London School of Economics and Political Sciences. His main area of expertise is comparative political economy, with a particular interest in the relationship between electoral politics, public policies and socio-economic outcomes. He has published in over 25 academic journals and has received awards from the American Political Science Association and the European Network for Social Policy Analysis. His research has been cited by the UK House of Commons, World Bank, International Labour Organisation, Organisation for Economic Cooperation and Development, European Commission, and the United Nations.

Dr Robert Basedow is an Assistant Professor for International Political Economy at the LSE. He researches and teaches international trade and investment policy. Before joining the LSE, he was an international civil servant at the Organisation for Economic Co-Operation and Development (OECD) in Paris and worked as policy consultant for European Institutions and the German government.

How can I attend? This event is free and open to all, but a ticket is required. This event will be a hybrid event, with an in-person audience and an online audience. 

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The LSE European Institute (@LSEEI) is a centre for research and graduate teaching on the processes of integration and fragmentation within Europe. 

You can order the book, Foreign States in Domestic Markets, (UK delivery only) from our official LSE Events independent book shop, Pages of Hackney.