Incentives through Inventory Control in Supply Chains

19th June 2018
KCG Secretary
Authors: Zhan Qu, Horst Raff and Nicolas Schmitt (International Journal of Industrial Organization, 2018, Vol. 59, 486-513)

The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it to a manufacturer increases the value of a supply chain especially
for goods whose demand is highly volatile. This is because doing so solves incentive distortions[…]

Attracting FDI in Middle-skilled Supply Chains

15th June 2018
KCG Secretary
Authors: Theordore Moran, Holger Görg, Adnan Seric and Christiane Krieger-Boden (Economics: The Open-Access, Open-Assessment E-Journal, Vol. 12 (2018-26), 1-9)

While popular opinion often pictures FDI flowing in search of lowest-wage, lowest-skilled activities in emerging markets, actual FDI to such countries increasingly addresses medium to high-skilled manufacturing sectors. Such FDI might be called “Quality FDI” that contributes to the creation of decent and value-adding jobs, enhancing the skill base of host economies, facilitating transfer of technology, knowledge and know-how, boosting competitiveness of domestic firms and enabling their access to world-wide markets[…]

Holger Görg: Governments Need to Deal with Negative Impact of Globalization

15th June 2018
KCG Secretary
Public Contributions
Public Contributions
The recent trade dispute, also observed at the G7 Summit last week, shows again how highly relevant and urgent it is to learn more about negative impact of globalization and to develop adequate policies and measures to deal with such impact. Imposing higher tariffs on imports may be an easy action to take. But protectionist measures cannot be the right solutions here. Protectionist measures hinder trade and investment across countries and leave parts of potential benefits of globalization unrealized[…]

KCG Working Paper No. 12: International Trade and Retail Market Performance and Structure: Theory and Empirical Evidence

14th June 2018
KCG Secretary
Publications
Publications
Authors: Philipp Meinen and Horst Raff

Based on a theoretical model featuring heterogeneous retailers that may source globally and operate as chains, we derive a number of hypotheses that link trade integration to retail firm performance and to the structure of retail markets. We empirically test these predictions using Danish microdata for the period 1999 to 2008. We find that importing retailers are larger, more profitable[…]

A New KCG Working Paper on International Trade and Retail Market Performance and Structure

14th June 2018
KCG Secretary
News
News
In recent decades, advanced economies have experienced a sharp increase in consumer goods imports, leading to an unprecedented degree of import penetration across many consumer goods industries. A new KCG Working Paper, co-authored by Philipp Meinen, Ph.D. (Deutsche Bundesbank and Aarhus University) and Prof. Horst Raff, Ph.D. (KCG and Kiel University), aims to determine whether this growth in consumer goods imports has contributed to observed changes in the performance of retailers and the structure of retail markets[…]

KCG Seminar on Institutional Framework for Corporate Social Responsibility: Observations on Japan and Taiwan on June 15, 2018

8th June 2018
KCG Secretary
News
News

Corporate Social Responsibility (CSR) has been a focus point within the realm of global corporate governance for decades. Firms’ engagement in CSR is, however, not driven by their altruistic motives only. Institutional framework and regulations, often considered as rules for economic exchanges, are expected to also have impact on how firms would be motived in engaging in CSR and how they would implement CSR into business operations. Against this background, Bobby, Piao-Hao Hsu, Researcher from the Tamkang University and Visiting […]

KCG Fellows Attended the Global Solutions Summit in Berlin

1st June 2018
KCG Secretary
News
News
This year’s Global Solution Summit took place on May 28 and 29, 2018 in Berlin. The annual summit is organized by the global think tank network “Global Solutions Initiative” that is chaired by Prof. Dennis J. Snower Ph.D., President of the Kiel Institute for the World Economy. The summit brought together international leaders from academia, business, politics and the civil society with the aim of discussing[…]