Randolph Bruno, Nauro Campos, Saul Estrin, 25 May 2017

The economic effects of foreign direct investment are generally expected to be positive for the host economy. However, this is usually conditional on certain thresholds of development being met, for instance in terms of human capital or institutional quality. This column argues that the economic impact of foreign direct investment is less ‘conditional’ than commonly thought, perhaps because below the thresholds, the difference between private and social returns is substantial, while above them it is smaller.

Andrew Rose, 19 October 2016

The pro-trade effects of the euro are a clear-cut benefit of Eurozone membership, but scholarly estimates of the size of this effect vary widely. This column uses meta-analysis to argue that the variation stems from inappropriate exclusion of nations and years. When all countries and years available in the data are included, the estimate of the euro trade effect is economically and statistically large, at about 50%.

José González-Páramo, Ángel Melguizo, 06 February 2013

In spite of its policy relevance, academics and policymakers cannot agree on who bears the brunt of a tax on labour. This column uses meta-regression techniques to argue that economic institutions, the tax wedge definition, and the time horizon are crucial in determining who actually pays. Results based on 52 empirical papers suggest that in the long run, workers bear between two thirds of the tax burden in Continental and Anglo-Saxon economies, and nearly 90% in Nordic ones.

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