Economic globalization causes an increasing international fragmentation (disintegration) of value-added chains, whereby firms outsource components of production to foreign markets. There is a high level of concern about unwelcome distributional effects. This paper provides a theoretical...

Anfang Dezember 2013 einigten sich die Mitgliedsländer der WTO auf ein neues Welthandelsabkommen. Gabriel Felbermayr, ifo Institut und Universität München, sieht einen Anpassungsbedarf der WTO an die neue Gemengelage in der Weltwirtschaft, da in Zukunft immer häufiger in regionalen Abkommen...

This volume is a collection of papers that apply general equilibrium theory in order to obtain policy relevant insights on topical issues of international trade and migration. The first set of papers focuses on European integration, applying dynamic numerical general equilibrium methods to...

This paper first describes the ingredients the present crisis in the euro zone and then evaluates the key options that policy makers face in resolving the crisis and avoiding similar crises in the future. I argue that the crisis should not be seen as caused by government profligacy alone. In...

Which firms find it optimal to integrate their input suppliers into the firm boundaries of control (vertical integration)? Which firms choose to expand their sourcing activities across the national border (offshoring)? This letter provides novel evidence on these questions based on a Spanish...

We use Spanish firm-level data to test the hold-up model of global sourcing proposed by Antr s & Helpman (2004). We propose a novel representation of the model which guides us in bringing the theory to the data. We estimate a discrete choice model of firms' sourcing behavior, separately for the...

We analyze the sourcing strategies of firms active in the Spanish manufacturing sector. We show that firms that select strategies of vertical integration and of foreign sourcing ex post tend to have been more productive, ex ante, than other firms.

Vielfach wird behauptet, die globale Einkommensverteilung entwickle sich dramatisch auseinander und die unfaire globale Weltwirtschaftsordnung sei schuld daran. Stehen »fair trade« und »free trade« im Widerspruch zueinander oder nicht? Mit der Diskussion dieser Frage führen Gabriel...

Eastern enlargement of the EU promises gains, but also imposes fiscal costs on incumbent countries. A sensitive issue concerns immigration, jobs and wages. We address these issues in a general equilibrium framework, both analytically and through numerical simulations. Analytical results identify...