Bernhard Michel, Caroline Hambÿe, Bart Hertveldt, 21 January 2019

Domestic value creation is shaped by how and to what extent economies integrate into global value chains. This column argues that further insights can be gained by distinguishing export-oriented and domestic market firms in standard indicators of global value chain integration and participation. Using data for Belgium, it documents that export-oriented firms differ from domestic market firms in terms of input structure and import patterns. These two types of firms play different roles in determining the nature of a country’s global value chain participation.

Emmanuel Dhyne, Jozef Konings, Jeroen Van den bosch, Stijn Vanormelingen, 07 January 2019

Although information technology has reshaped the way businesses operate, measuring IT capital in firms is challenging. Using an exceptionally rich firm-level dataset from Belgium, this column finds that large firms benefit more from IT than small firms, and that IT explains about 10% of the productivity dispersion. IT has contributed to Belgian GDP and productivity growth prior to the Global Crisis, but the recession seems to have led firms to forgo investment in IT. Achieving optimal IT investment levels could reinvigorate productivity growth.

Jozef Konings, Cathy Lecocq, Bruno Merlevede, 17 October 2018

Many countries have reduced their corporate income tax rates or introduced tax deductions, exclusions, and credits to attract foreign direct investment. This column discusses the introduction of the Notional Interest Deduction in Belgium, which allows companies to deduct from their taxable income an interest that is calculated based on the company’s equity. The deduction has increased employment in Belgian affiliates of multinational enterprises by between 6% and 8%.

Gert Bijnens, Jozef Konings, 19 July 2018

Evidence from the US indicates that business dynamism is declining, and that this affects overall productivity growth. This column explores business dynamism in Belgium between 1985 and 2014. The results show remarkable similarities to those from the US, suggesting that these changes are likely due to global trends such as the rise of information and communication technology.

,

The Summer School broadly addresses the theme of ‘Europe and the World’, which builds upon the academic strengths of the Brussels School of International Studies.

This programme attracts students and young professionals who wish to broaden their knowledge of the EU. Over a period of two weeks, students participate in a series of guest lectures, seminars and debates delivered by academics, policy-makers, diplomats and European civil servants. The summer school allows students to discover how the European Union functions with a particular focus on how it acts as a global organisation and the challenges it faces in today’s world.

The accommodation, tuition, entrance fees on trips, lunches throughout the 2 weeks, a 2 week travel card around Brussels and a celebratory final dinner to mark the end of the course are all included in the cost of the Summer School.

Stela Rubínová, Emmanuel Dhyne, 04 July 2016

Even in export-oriented industries, only a handful of firms ship their goods abroad. These firms are systematically different from their purely domestic counterparts. This column sheds light on the domestic supply chain of exporters to uncover firms whose production is exported indirectly. Accounting for indirect exporters brings the empirics of international trade closer to the modern structure of production, characterised by many stages in possibly many locations. These findings suggest that the distributional effects of globalisation go beyond the exporters versus non-exporters dichotomy.

Michael Huberman, Christopher Meissner, Kim Oosterlinck, 06 February 2015

Understanding the relationship between trade and growth is still at the core of the economics profession. This column seeks to identify the pathways by which globalisation affects economic growth looking at the case of Belgium in the decades preceding the First World War. It argues that the collapse in fixed export costs promoted the entry of uncompetitive firms into export markets and as the trade component of GDP rose, the share of high performing firms contracted, slowing growth.

Andrea Ariu, 23 December 2012

International trade is traditionally thought of as goods crossing borders. Trade in services, however, is becoming increasingly important for high-income countries. This column, using Belgian firm-level data from 1995-2005, argues that trade in goods and services differ deeply in key aspects such as firm participation rates, size and frequency of shipments, entry and exit rates in foreign markets and in growth strategies.

Giordano Mion, Andrea Ariu, 25 February 2012

Services trade has increased dramatically in the last 20 years. This column examines data from Belgium and suggests that the change in IT use does not translate into higher services exports. It argues instead that offshoring is a key factor contributing to the rise of services trade.

Jan Bouckaert, Theon van Dijk, Frank Verboven, 19 December 2008

Most governments in Europe are interested in boosting broadband penetration. This column presents new evidence on how various forms of market structure affect penetration ratios. It turns out that inter-platform competition (e.g. DSL vs cable) promotes broadband penetration while intra-platform competition doesn’t.

Events

CEPR Policy Research