Trade Recovery Requires Firm-specific Initiatives, Trade Policies and Global Collaboration

9th June 2020
KCG Secretary
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The COVID-19 pandemic has hit the global value chains (GVCs) substantially as it struck at their core regions, including China, Europe and the United States (Seric et al., 2020). According to a recent estimate of the World Trade Organisation (WTO) the merchandise trade volume worldwide would fall by between 13% to 32% in 2020. It is highly likely that the COVID-19 determined decline in world trade will be more substantial than the historical trade fall brought by the global financial crisis more than ten years ago[...]

Friends like this: The Impact of the US – China Trade War on Global Value Chains

8th June 2020
KCG Secretary
Authors: Holger Görg and Haiou Mao (The World Economy, 2020, Vol. 43(7), 1776-1791)

This paper considers the indirect impact the recent tariff increases between the US and China can have in third countries through links in global supply chains. We combine data from inputoutput relationships, imports and tariffs, to calculate the impact of the tariff increases by both the US and China on cumulative tariffs for other countries and thus hurt trade partners further downstream in global supply chains[...]

KCG Policy Paper No. 5: Lagging behind? German Foreign Direct Investment in Africa

3rd June 2020
KCG Secretary
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Authors: Julian Glitsch, Olivier Godart, Holger Görg, Saskia Mösle, and Frauke Steglich

German Foreign Direct Investment (FDI) in Africa is lagging behind China, France, the Netherlands, the UK, the US, and other economies. It represented only 1 percent of the German total FDI stock abroad in 2018 and is concentrated in few African countries[…]

A New KCG Research Project on the Impact of Special Economic Zones on Inequality

11th May 2020
KCG Secretary
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Inward foreign direct investment (FDI) is generally considered to be advantageous for supporting economic development in the emerging economies. Foreign investors do not only bring financial resources, know-how and technologies that are (relatively) limited on site into the FDI destination countries but also help local firms to gain better access to and benefit from the global production networks[...]

KCG Fellow Saskia Mösle Involved in a New Study on the COVID-19 Impact on the Global Economy

29th April 2020
KCG Secretary
News
News
The COVID-19 pandemic is a tremendous challenge for the national and global health care. It also poses a huge challenge to the world economy and the international trade. Against this background, Dr. Klaus-Jürgen Gern (Kiel Institute for the World Economy (IfW)) and Saskia Mösle (IfW & KCG) analyse the impact of the COVID-19 pandemic on the global economy from the point of view of the special economic zones (SEZ) worldwide. Their analysis is based on a recent SEZ survey that was jointly carried out by IfW and the World Free Zones Organization between March 23, 2020, and April 3, 2020[...]

UNIDO Published an Opinion Piece on GVC Impact of COVID-19 in Cooperation with KCG

17th April 2020
KCG Secretary
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The outbreak and spread of the COVID-19 damages the global health and challenges the world economy. One key aspect here is the global value chains which have been extensively developed since decades. Experts from the United Nations Industrial Development Organisation (UNIDO) and the Kiel Centre for Globalization (KCG) at the Kiel Institute for the World Economy[...]