The World is Flat: A Brief History of the Twenty-First Century

Geography and Trade

Executive Overview The seemingly unlimited availability of science and engineering (S&E) talent in emerging economies and the increasing difficulties of finding such talent in advanced economies have given rise to a new trend: the global sourcing of S&E talent. This paper examines the antecedents and dynamics of this trend. In particular, it examines the coevolution of macroeconomic forces, domestic and offshore national policies, industry dynamics, and firm-level offshoring capabilities driving today's offshoring decisions. The analysis exploits findings from the Offshoring Research Network (ORN) project. By taking a dynamic and multilevel perspective on next-generation offshoring, this paper may inform both firm-level strategies and national policy-making.

https://www.jstor.org/stable/info/27747462

A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent

In this paper we analyze the potential demand for privately used alternative fuel vehicles (AFVs), based on a nationwide survey in Germany among (potential) car buyers. For this purpose, we applied a stated preference discrete choice experiment, using a wide range of vehicle alternatives (gasoline/diesel, natural gas, hybrid, plug-in hybrid, electric, biofuel, hydrogen) and vehicle attributes. By applying both a multinomial logit model and a mixed (error components) logit model, we estimate the attributes’ influence on vehicle choice and calculate consumers’ willingness-to-pay for the improvement of these attributes. Furthermore, in a scenario analysis, we simulate the impact of monetary and non-monetary policy measures on vehicle choice probabilities. We find that the most promising target group for the adoption of all kinds of AFVs is that of younger, well-educated, and environmentally aware car buyers, who, in the case of electric vehicles, also have the possibility to plug-in their car at home, and who have a high share of city trips and thus need a small car. Moreover, we find that, depending on the vehicle alternative, environmental awareness, and budget constraints for the next vehicle purchase, households are willing to pay substantial amounts for the improvement of fuel cost, driving range, charging infrastructure, CO2 emissions, vehicle tax exemptions, and free parking or bus lane access. Furthermore, the scenario results suggest that conventional vehicles will maintain their dominance in the market, whereas electric and hydrogen vehicles will remain unpopular. The market share of the latter is only expected to rise markedly if massive and multiple policy interventions are implemented. Finally, we find evidence that an increase in the fully electric vehicle’s driving range to a level comparable with all other vehicle alternatives has the same impact on its choice probability as would a market-based, multiple measures policy intervention package.

/pdf/consumer-preferences-for-alternative-fuel-vehicles-a-o4fxudgmdi.pdf

Consumer Preferences for Alternative Fuel Vehicles: A Discrete Choice Analysis

This paper investigates the impact of ICT- and non-ICT capital, and of labour at different skill levels, on productivity and employment in the financial intermediation sector of twelve EU member countries plus the US and Japan. A stochastic possibility frontiers (SPF) approach is applied to assess the relation between the production inputs and to compute both time-varying and average inefficiencies. For the empirical analysis, annual data from 1995 to 2005 are employed that were obtained from recently released data contained in the EU KLEMS database. The results obtained shed some light on the relative impact of ICT- and non-ICT capital and labour inputs, and provide new insights about the structural dynamics between these factor inputs. We find that the financial sectors in the twelve EU member states studied are quite similar in terms of efficiency, and that efficiency and productivity depends much more on human capital than on physical capital. We conclude that learning-by-doing and learning-by-using are more decisive elements in shaping the productivity growth path than ICT investment alone, which can leave managers and employees overwhelmed by the complexity and needs of structural adjustments in the companies’ organisation.

/pdf/impact-of-ict-and-human-skills-on-the-european-financial-sqcq3shone.pdf

Impact of ICT and Human Skills on the European Financial Intermediation Sector

The paper analyses the offshore outsourcing of IT services (OOIT), which have become increasingly important for the global IT industry. Through this rapid process of firm relocation, a new terminology has emerged, which forms the starting point for our paper. We compare wage cost differentials of IT workers in key offshore locations like India to those in the US and Europe, incorporating the hidden costs of offshoring ? including long-term risks and opportunities ? in order to determine the total cost of offshore outsourcing activities. The debate on the potential future negative employment impacts in the major OECD countries recently became a point of political contention in the US presidential election campaign, reflecting widespread fears in the US and elsewhere that outsourcing will lead to decreased income and job loss. In Europe, policy makers are searching for instruments to guide these developments so that major social disruptions do not lead to disproportionately negative welfare impacts in the short term. The future costs and benefits of outsourcing can currently be assessed only in broad terms due to the lack of adequate data and representative statistics. However, the theory of comparative advantages suggests that overall, offshoring and inshoring countries will gain from the new international division of labour in the long run.

/pdf/offshore-outsourcing-a-global-shift-in-the-present-it-52ww0hkyqg.pdf

Offshore Outsourcing: A Global Shift in the Present IT industry

The paper analyses the offshore outsourcing of IT services (OOIT), which have become increasingly important for the global IT industry. Through this rapid process of firm relocation, a new terminology has emerged, which forms the starting point for our paper. We compare wage cost differentials of IT workers in key offshore locations like India to those in the US and Europe, incorporating the hidden costs of offshoring - including long-term risks and opportunities - in order to determine the total cost of offshore outsourcing activities. The debate on the potential future negative employment impacts in the major OECD countries recently became a point of political contention in the US presidential election campaign, reflecting widespread fears in the US and elsewhere that outsourcing will lead to decreased income and job loss. In Europe, policy makers are searching for instruments to guide these developments so that major social disruptions do not lead to disproportionately negative welfare impacts in the short term. The future costs and benefits of outsourcing can currently be assessed only in broad terms due to the lack of adequate data and representative statistics. However, the theory of comparative advantages suggests that overall, offshoring and inshoring countries will gain from the new international division of labour in the long run.

Offshore outsourcing - A global shift in the present IT industry

This question was raised by some participants when the topic was suggested as a special module for this project. Many economists working in academia, government institutions, and business have reservations about whether this field of economic research really warrants special attention. On the other hand, the number of scientific articles and conferences using network economics as a label to address issues related to actual organizational phenomena and physical networks increased significantly during the 1990s. Since 1997, the German Research Council (DFG) has even been financing an interdisciplinary Special Research Section (SFB) on Networking as a Factor in Competition 3 at the University of Frankfurt/Main. Furthermore, the rapid worldwide growth of the Internet and the dramatic changes accompanying the de- and re-regulation of network industries, which have been subject to the close control of government institutions in most countries, have stimulated debate on applied and practical political topics, as well as a more fundamental theoretical debate within the economic profession. This internal debate addresses the importance of networks as new entities in modern developed economies throughout the world, and the implications of networks for the developing countries wishing to catch up.1 Well-known economists have set up web sites to address this topic as their special research area.2

Economics of Networks

Industriepolitische Konzeptionen in ausgewahlten Landern bzw. der Europaischen Union: Allgemeines Die Industriepolitik in den USA Die Industriepolitik in Japan Die Industriepolitik in Sudkorea Di Industriepolitik in Frankreich Die Industriepolitik der Europaischen Union Die Industriepolitik in der Bundesrepublik Deutschland Die Konzeptionen von Michael Poerter und Robert Reich Fazit.- Zur Entwicklung von Produktivitat und Wachstum: Die Catching-Up Hypothese: Vorbemerkungen Zum Konvergenzbegriff: Beta-Konvergenz und Sigma-Konvergenz Inhalt der Catching-Up Hypothese Konvergenz und Aussenhandel Makrookonomische Rahmenbedingungen - Exogene Schocks - Wachstum - Konvergenz Konvergenz durch Wachstumsschwache der Industrielander Die Stellung der Bundesrepublik Deutschland im Rahmen der globalen Konvergenz Zusammenfassung.- Neuere Ansatze in der Wachstumstheorie und ihre wirtschaftspolitischen Implikationen: Von der "Alten" zur "Neuen" wachstumstheorie Die Bedeutung steigender Skalenertrage Die Rolle des Humankapitals Forschung und Entwicklung Wachstum und Aussenwirtschaft Staatliche Investitionen und Wachstum Empirische Resultate Wirtschaftspolitische Schlussfolgerungen.- Zur Stabilitat des Wachstumsprozesses und der Beschaftigungsentwicklung in den Wirtschaftszweigen der Bundesrepublik Deutschland: Vorbemerkungen Wachstumstrends der Bruttowertschopfung in den Wirtschaftszweigen Wachstumstrends der Arbeitsproduktivitat in den Wirtschaftszweigen Der Verdoorn-Zusammenhang in den Wirtschaftszweigen.- Wachstum, Produktivitat, Strukturwandel und Beschaftigung: Theoretische Uberlegungen Freisetzungs- und Kompensationseffekte des technischen Fortschritts Zur Entwicklung der Produktions-Produktivitats-Schere in der Bundesrepublik Deutschland Beschaftigungsschwelle und Okunsches Gesetz.- Wirtschaftspolitische Handlungsempfehlungen: Vorbemerkungen Gestaltungsmoglichkeiten Schlusswort.

Georg Erber

Papers

Impact of ICT and Human Skills on the European Financial Intermediation Sector

Offshore Outsourcing: A Global Shift in the Present IT industry

Offshore outsourcing - A global shift in the present IT industry

Economics of Networks

Zukunftsperspektiven Deutschlands im internationalen Wettbewerb : industriepolitische Implikationen der neuen Wachstumstheorie