This paper shifts the focus of discussion on the 2008 financial crisis from the problems of the financial sector to its effects on the real economy. We step back from the immediate facts of the crisis to consider the reason for finance and its importance in firm innovation, both theoretically...

Analysis of 35 U.S. manufacturing and service industries over the period 1998-2006 supports aggregate and firm-level studies showing that off-shoring is associated with a higher share of corporate profit in total value added. But these “dynamic” gains from off-shoring have not been realized,...

This paper shows that a “new wave of globalization,” involving extensive offshoring, has raised both actual and perceived labor market insecurity in industrialized countries. The paper analyzes various channels through which this new wave of globalization leads to economic insecurity. It...