Kiel Institute for the World Economy

About: Kiel Institute for the World Economy is a facility organization based out in Kiel, Germany. It is known for research contribution in the topics: Foreign direct investment & Productivity. The organization has 318 authors who have published 1909 publications receiving 42832 citations. The organization is also known as: Institut für Weltwirtschaft an der Universität Kiel.

Trade and Investment Effects of Forced Labour: An Empirical Assessment

Abstract: This paper explores the international economic effects of forced labour, namely the linkages of forced labour with comparative advantage (trade) and foreign direct investment flows. It discusses several forms and the prevalence of forced labour and presents the results of empirical tests of those linkages. The results show that forced labour may enhance the endowment of unskilled labour. It can thus be expected to improve comparative advantage in unskilled-labour-intensive goods, that is, commodities where the impact of forced labour is likely to be felt most strongly. In contrast, foreign direct investment is negatively linked with forced labour. This result even holds for relatively poor developing countries.

Egalitarian redistribution in the era of hyper-globalization

Abstract: Two traditional theorems of welfare economics posit a trade-off between a government redistribution targets and efficiency. We propose a third ‘claim’ of welfare economics, stating that in closed e...

Capitalist diversity and compliance: economic reforms in Central and Eastern Europe after EU accession

Abstract: This paper investigates whether different capitalist varieties in Central and Eastern Europe have different records of post-accession compliance. Drawing on an explorative cluster analysis of 25 EU member states and additional case study evidence, its results suggest that there are two broader clusters of Central and East European countries, which are associated with different Varieties of Capitalism and privilege certain explanatory factors for (non-) compliance over others: I identify a cluster comprising the Baltic States and Slovakia that leans toward a liberal market economy type. I argue that post-accession compliance processes in this cluster are dominated by market-based modes of coordination, in which government ideologies and effectiveness gain greater explanatory power. The second cluster is associated with coordinated market economies marked by a more inclusive political process that privileges the interplay of preferences of various state and non-state actors to explain compliance aft...

Monetary policy during financial crises: Is the transmission mechanism impaired?

Abstract: We study the effects of monetary policy on output during financial crises. We use a large panel of advanced and emerging economies to guarantee a sufficiently high number of financial crisis episodes. Financial crises dummy variables, which are constructed based on the narrative approach, are interacted with other key macroeconomic variables in a panel VAR. Theory suggests that monetary policy might be more effective during financial crises if it can ease malfunctioning of financial markets for example by loosening credit constraints or restoring confidence. Alternatively, deleveraging and uncertainty might predominate and make the economy less interest rate responsive and monetary policy less effective during financial crises. Taking a sample from the mid 1980s to today, we find that an expansionary monetary policy shock is very effective in raising GDP during the recessionary period of a financial crisis. The effect is stronger than in non-crisis times. In contrast, during the recovery period of a financial crisis, monetary policy has a very small effect on GDP. These differences can be explained by a confidence channel. During the joint occurrence of a recession and a financial crisis an expansionary monetary policy shock increases consumer confidence and GDP. During the following recovery monetary policy has no effects on confidence or GDP. Other variables like credit, housing prices and exchange rates can at most partially explain differences in transmission between the different regimes.