Jaume Ventura, 22 September 2017

What are the effects of globalisation on the structure of the state? In this video, Jaume Ventura presents his research and some of the modelling challenges. This video was recorded at the Barcelona Graduate School of Economics in May 2016.

Dave Donaldson, David Atkin, 21 September 2017

Giacomo Ponzetto, 13 September 2017

What is the link between citizens, insitutions and globalisation? In this video, Giacomo Ponzetto underlines the relevance of psychology and availability of information. This video was recorded at the Barcelona Graduate School of Economics in November 2016.

Rafael Dix-Carneiro, Brian Kovak, 14 September 2017

Mai Dao, Mitali Das, Zsoka Koczan, Weicheng Lian, 08 September 2017

In both developing and advanced economies, labour’s share of income has been declining since the 1970s, presenting a puzzle for classical trade theory. This column proposes that the globalisation of trade and ‘routinisation’ of tasks can reconcile declining labour shares in both advanced and developing economies. Countries with higher initial exposure to routinisation and a greater increase in participation in global value chains are shown to have experienced stronger declines in the labour income share of medium-skilled workers.

Jonas Hjort, 18 August 2017

Tito Cordella, Anderson Ospino, 14 August 2017

While some studies suggest that financial globalisation increases volatility and leads to economic instability, others appear to show that it leads to more efficient stock markets, with higher returns but no increase in volatility. Using a new measure of financial globalisation, this column argues that, on average, it has no significant effect on stock market volatility in developed markets, but it decreases volatility in emerging and frontier markets, where domestic shocks are likely to play a relatively greater role.

Mine Senses, 06 August 2017

There is some evidence that communities hit hardest by globalisation shifted away from centrist candidates towards ideologically extreme candidates in the most recent US election. This column, taken from a recent Vox eBook, asks what policies those who were elected on a promise of turning the tide of globalisation away will implement, and what the prospects of success for these policies are.

Gino Gancia, Giacomo Ponzetto, Jaume Ventura, 26 July 2017

The number of countries in the world more than halved during the first wave of globalisation, but then rose significantly during the second. Border changes have been much more peaceful during this second wave, and this column asserts that these observations are consistent with a theory in which political structure adapts to expanding trade opportunities. Globalisation makes borders costly. In its early stages, borders are removed by increasing country size, while in later stages, the cost of borders is removed by creating peaceful economic unions, leading to a reduction in country size.

Dani Rodrik, 03 July 2017

Populism has been on the rise for quite some time, and it is doubtful that it will be going away. This column argues that the populist backlash to globalisation should not have come as a surprise, in light of economic history and economic theory. While the backlash may have been predictable, however, the specific forms it took were less so, and are related to the forms in which globalisation shocks make themselves felt in society.

Daniel Gros, 30 June 2017

Trade liberalisation has been a significant driver of globalisation over the past half century, but global trade has slowed in recent years. This column argues that globalisation can also be driven by higher commodity prices, as commodities constitute a large fraction of global trade. This is reflected in trade volumes and commodity prices, which increased until around 2014 but have fallen since. Commodity price-driven globalisation implies lower living standards in advanced countries, as the higher commodity prices diminish the purchasing power of workers. 

Sergey Nigai, 14 June 2017

How does trade affect different groups in different countries? In this video, Sergey Nigai discusses how different people respond to changes in trade policies and how this affects their income. This video was recorded at the Royal Economic Society Annual Conference held in Bristol in April 2017.

Kerem Cosar, Banu Demir, 13 June 2017

Container shipping is considered to be one of the drivers of globalisation. This column uses micro-level data to show evidence that confirms the role of 'the box' in the global economy: it implies significant cost savings and explains a significant amount of the global trade increase since its inception. The results also suggest that most of its trade-increasing effect has already been realised.

Wolfgang Keller, Will Olney, 09 June 2017

Growing income inequality has been a hallmark of developed economies over the past few decades. Despite a large empirical literature exploring the determinants of this trend, to date few studies have explored the role of globalisation. Using US data on executive compensation, this column argues that while firm size, technology, and poor governance have all contributed to the growth in top incomes, globalisation is just as important in explaining the trend.

Pinelopi Goldberg, Nina Pavcnik, 20 June 2017

Raphael Auer, Claudio Borio, Andrew Filardo, 28 April 2017

In the past two decades, international trade has been transformed by the rise of global value chains. This column suggests that the rise of global value chains can help resolve the puzzle of the increasingly global nature of domestic inflation. Their expansion has greatly increased international competition for both intermediate and final goods and services, meaning price pressures arising from economic slack in one country become more relevant for others. This may be changing the trade-offs central banks face when managing domestic inflation.

Jim Tomlinson, 21 April 2017

Many commentators have portrayed Britain’s referendum decision to leave the EU as being motivated by a popular rejection of globalisation. This column argues that in seeking to understand the economic basis of the Brexit vote, we should concentrate not on globalisation but on the long-term impact of de-industrialisation, which has left a legacy of a much more polarised service sector labour market, with large numbers of people condemned to poorly paid and insecure jobs.

Kevin O'Rourke, Jeffrey Williamson, 03 April 2017

The Great Divergence in living standards between the West and the Rest is being eroded as developing economies rapidly industrialise. This column explores the origins of modern industrial growth in regions that fell behind the West during the Great Divergence. Modern manufacturing growth in the global periphery dates back to the interwar period, and in some regions much earlier. It depended on a complex interaction between factor endowments, the global context, economic policies, and luck.

Assaf Razin, 01 April 2017

Israel has received almost one million immigrants from the former Soviet Union, close to 19% of its established population. The extraordinary exodus of Soviet Jews to Israel in the 1990s is relevant to the current debate about globalisation. This column argues that the wave of immigration was distinctive for its large high-skilled cohort and its quick integration into the domestic labour market. Soviet-Jew immigration raised productivity, underpinned technological prowess, and had a large impact on income inequality and redistribution in Israel’s welfare state.

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