Global economy

Eiichi Tomiura, Banri Ito, Byeongwoo Kang, 12 August 2020

Cross-border data flows are increasingly critical for modern firms, and the regulation of data poses a distinctly novel challenge for policymakers in the 21st century. This column presents survey data from Japan, investigating exactly which type of firm are most likely to be affected by regulations surrounding the international exchange of data. The results of the study suggest that new technologies such as Artificial Intelligence and 3D printers are usually adopted by the most productive and innovative firms, and that hampering these firms with regulation may create harmful effects for the wider economy.

David Martínez Turégano, Robert Marschinski, 11 August 2020

The EU’s falling share in global manufacturing has fuelled concerns about an overall loss of competitiveness. However, sectoral idiosyncrasies are strong and advise against a ‘one-size-fits-all’ policy intervention. This column uses the World Input-Output Tables to decompose the value added for manufacturing value chains and study the drivers of EU’s relative decline. Competitiveness concerns are most warranted for electronics, a key sector for productivity and innovation. The EU’s global share in electronics has fallen even more than in total manufacturing, without evidence that specialisation in other segments of this value chain could significantly mitigate the trend.

Gabriel Felbermayr, Aleksandra Kirilakha, Constantinos Syropoulos, Erdal Yalcin, Yoto Yotov, 04 August 2020

In recent years, economic sanctions have increasingly become ‘the tool of choice’ in responses to international political challenges related to geo-political conflicts. But are sanctions successful in achieving their purported objectives? And what are the economic costs of sanctions in a world that is increasingly interconnected with global value-chains and multinational enterprises?  This column introduces a new dataset of economic sanctions that covers all bilateral, multilateral, and plurilateral sanctions in the world from 1950 to 2016 that can be utilised to analyse sanctions policies.

Kaushik Basu, 03 July 2020

Kaushik Basu's time as World Bank chief economist inspired him to think radically about how to change the way the global economy works. He tells Tim Phillips about why public ownership and profit-sharing may be essential, and what we can still learn from Karl Marx.

Simeon Djankov, Dorina Georgieva, Hibret Maemir, 03 July 2020

Countries reform when their neighbours have reformed too, especially in the aftermath of economic crises. This column examines business regulatory reforms during 2004–2019. Previous crisis episodes have generated improvements in the law and administration of registering property, trading across borders, protecting investors and resolving bankruptcy. The current period of post-COVID-19 recovery is propitious for regulatory reform.

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