Trade with China displaced large parts of the American workforce in the 2000s, but Germany did not experience a similar shock at the time. This column argues that the ‘China shock’ has hit the German economy since 2020, particularly in its core automobile and machinery sectors. To avoid America’s painful de-industrialisation of the 2000s, Chinese […]
As global trade expands, so does the number of workers in high-income countries whose jobs are tied to exports. More of that growth is generated by exports to low-and middle-income countries than to other high-income countries. Employment generated by exports of goods and services to low and middle-income countries, either directly or indirectly, more than doubled […]
Governments are increasingly employing industrial subsidies, raising questions about their market implications. This column undertakes a thorough econometric testing of the causal impacts of subsidies on several firm performance indicators for large manufacturing companies. The authors find that subsidies increase firms’ market shares but have either no impact, or a negative impact on investment and […]
The world is seriously off track to meet global nutrition targets. In fact, in some countries, statistics are moving in the wrong direction. Stunting remains a widespread problem, with nearly 148 million children affected, while at the other end of the spectrum, millions of adults are either struggling with obesity or suffering from non-communicable diseases (NCDs). […]
In 2000, the World Bank published, “Can Africa Claim the 21st Century?” This landmark report proposed four crucial areas of progress, and the priorities that were highlighted are even more pertinent today: improve governance and reduce conflict, invest in people; increase competitiveness and diversify economies; and reduce aid dependence and debt. Much of what was on […]
Thailand’s coastal and marine resources are vital engines of growth. From pristine beaches that attract millions of tourists each year to the Eastern Economic Corridor that supports production and trade, the country’s “blue economy” involving 23 coastal provinces is estimated to contribute around 30 percent of Thailand’s GDP and one-fourth of the nation’s employment. As Thailand […]
The new targets, to be formally included in the government’s upcoming fiscal and economic policy guidelines in June, represent a sharp escalation from the previous goal of 100 trillion yen by 2030 Japan is set to raise its 2030 foreign direct investment target by 20% and push the figure as high as 150 trillion yen […]
Public debt-to-GDP ratios have climbed to historic highs in most advanced economies. This column studies the connection between productivity growth, fiscal policy, and public debt. Using a theoretical model, it argues that a feedback loop is possible between fiscal policy and growth. Large primary surpluses are associated with fiscal distortions which depress investment and productivity […]
Despite signs of cautious improvement, India-China relations remain deeply strained by border tensions and mutual distrust. China-India relations, which have long been fraught, were further complicated by the 2020 military standoff on the Himalayan border. The political disruption had a significant impact on Chinese companies’ presence in India. And yet, India’s dependence on Chinese imports […]
Geopolitical issues are flooding current political and economic debate, but evidence is limited on their interplay with structural policies. Combining information on geopolitical risks and the EU cohesion policy, this column evaluates the costs of geopolitical tensions in terms of reduced effectiveness of structural funds. The results indicate that the impact of the cohesion policy […]
