Online seminar winterterm 2016/17
Online-Seminar on “Factor Flows in Globalization”
Description
The easiness with which trade, capital and workers can nowadays move around the world is one of the most evident aspects of globalization. The patterns of factor flows have undergone some interesting changes in recent years. As far as trade and capital flows are concerned, one of the most notable feature is the increasing share of world trade and capital flows represented by emerging markets, and in particular the Asiatic countries. As to world migration, not only the number of international immigrants has been increasing in general, but the high-skill migrants in particular are found to be more likely to move away from their origin (especially developing) countries. The above stylized facts suggest some natural questions: do cultural and institutional factors matter in shaping the patterns of international trade and capital flows? What explains the differences in the magnitude and composition of world migration, and what are the consequences for the sending countries? In this seminar we will try and find answers to the above and other questions by means of the relevant economic literature. Besides analyzing trade, FDI and migration singularly, we will review the results of some important studies focusing on the links among them.
Overview of Important Deadlines
| August 15, 2016 | Deadline for application |
|---|---|
| September 17, 2016 | Introductory lecture |
| October 30, 2016 | Deadline for the submission of the first draft of the seminar paper |
| November 16 - 19, 2016 | Student presentations |
| December 15, 2016 | Deadline for the submission of the final version of the seminar paper |
General rules, dates and deadlines
In order to provide students with the highest possible degree of flexibility, and yet to preserve the interactive nature of a seminar course, this seminar will be organized as a “online-seminar”. This means that all meetings will take place using the Connect Portal of the FernUniversität in Hagen, which can be accessed using a web interface. No special software is required but a stable internet connection, a webcam and a microphone must be available. Furthermore, the students’ presentations will be scheduled in four to five online meetings which will take place in the late afternoon. This seminar should thus be particularly suitable to students who, for work-related reasons or temporary residence abroad, would otherwise not be able to participate in a regular seminar.
The formal language of the seminar is English: students are expected to present and give feedbacks in English and to write their Seminar paper in English as well. The deadline for the application to the online-seminar is August 15. No application submitted after that date will be taken into account.
Students should apply by sending an email to:
In their email students should indicate their name, matriculation number, address, and their preferences over two out of the five thematic blocks listed below.
Selected participants will be informed about their assigned topics by the end of August. The topic assignment will be as much as possible based on the students’ preferences.
There will be an introductory lecture on September 17, 2016, 14.00-16:00. The introductory lecture will provide students with an overview of the topics and additional remarks on the requirements for the successful participation in the seminar. This first meeting is also meant as an opportunity for students to discuss with the instructors possible questions or doubts about the seminar topics. Participation in the introductory lecture, though not mandatory, is strongly recommended.
A first draft version of the seminar paper must be handed in by October 30, 2016. Failure to submit the first draft by that date will result in the exclusion from the seminar. The same applies to drafts submitted later than that date.
The student presentations will take place on the following date: November 16 - 19, 2016, each meeting from 17.00 from 20.00
In each meeting up to 10 students will present their assigned topic, but all students are required to participate in each meeting. After each presentation there will be a discussion of the topic and results presented. Notice that the presentation plan might slightly change depending on the number of participants. Students will be informed in due time.
After the presentations students have the possibility to further modify their papers so as to include comments and feedbacks received during the discussion. The final version of the seminar papers must be handed in by December 15, 2016.
Remarks on the seminar paper
Please refer to the following document for the formal rules for drafting the seminar paper:
Instructions for scientific work (DOC 194 KB)
Seminar Topics
| Understanding world trade patterns | |
|---|---|
| Topic 1: | This thematic block deals with the empirical determinants of trade flows. Most studies listed here use the gravity equation to detect the role of several important factors in shaping the pattern of world trade. Those factors include, among others, a country’s institutional quality, tariffs and other trade costs in historical perspective, as well as cultural and colonial links among pairs of countries. Literature Anderson, J. E., and Van Wincoop, E. (2001). Gravity with gravitas: a solution to the border puzzle. NBER Working Paper No. 8079. Anderson, J. and Marcouiller, D. (2002). Insecurity and the Pattern of Trade: An Empirical Investigation. Review of Economics and Statistics, 84(2), 342-352. Debaere, P., and Mostashari, S. (2010). Do tariffs matter for the extensive margin of international trade? An empirical analysis. Journal of International Economics, 81(2), 163-169. Head, K., Mayer, T., and Ries, J. (2010). The erosion of colonial trade linkages after independence. Journal of International Economics, 81(1), 1-14. Helpman, E., Melitz, M., and Rubinstein, Y. (2007). Estimating trade flows: Trading partners and trading volumes. NBER Working Paper No. 12927. Jacks, D. S., Meissner, C. M., and Novy, D. (2011). Trade booms, trade busts, and trade costs. Journal of International Economics, 83(2), 185-201. McCallum, J. (1995). National borders matter: Canada-US regional trade patterns. The American Economic Review, 85(3), 615-623. |
| FDI: determinants and consequences | |
| Topic 2: | This thematic block deals with the driving forces and economic outcomes of foreign direct investments. As to the determinants, the institutional environment and skill endowment of the receiving country seems to play a major role as an attractor of FDI. As far as the consequences are concerned, the main focus is on whether foreign capital may help boost firm productivity and growth in the host countries, e.g. through the transfer of more advanced technology. Literature Chen, W. (2011). The effect of investor origin on firm performance: Domestic and foreign direct investment in the United States. Journal of International Economics, 83(2), 219-228. Cheung, Y. W., De Haan, J., Qian, X., and Yu, S. (2012). China's outward direct investment in Africa. Review of International Economics, 20(2), 201-220. Fernandes, A. M., and Paunov, C. (2012). Foreign direct investment in services and manufacturing productivity: Evidence for Chile. Journal of Development Economics, 97(2), 305-321. Harding, T., and Javorcik, B. S. (2011). Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows. The Economic Journal, 121(557), 1445-1476. Kimura, H., and Todo, Y. (2010). Is foreign aid a vanguard of foreign direct investment? A gravity-equation approach. World Development, 38(4), 482-497. Javorcik, B. S., and Spatareanu, M. (2011). Does it matter where you come from? Vertical spillovers from foreign direct investment and the origin of investors. Journal of Development Economics, 96(1), 126-138. Yeaple, S. R. (2003). The role of skill endowments in the structure of US outward foreign direct investment. Review of Economics and Statistics, 85(3), 726-734. |
| Understanding international migration flows | |
| Topic 3: | The literature contained in this thematic block examines several issues concerning migration flows. Besides analyzing the role of traditional push and pull factors, e.g. income differences, geographic factors and language similarities, and the change in their relative importance over time, the focus is also on the determinants of the skill-composition of migration. This is particularly relevant from a policy perspective, given the problems of skill-shortages that most industrialized countries are facing at the moment. Finally, the economic impact of high-skilled emigration on the source countries is at the core of the “Brain Drain” literature, which highlights the winners and losers in the world competition for talents. Literature Beine, M., Docquier, F., and Özden, Ç. (2011). Diasporas. Journal of Development Economics, 95(1), 30-41. Beine, M., Docquier, F., and Rapoport, H. (2001). Brain drain and economic growth: theory and evidence. Journal of Development Economics, 64(1), 275-289. Beine, M., Docquier, F., and Rapoport, H. (2008). Brain drain and human capital formation in developing countries: winners and losers. The Economic Journal, 118(528), 631-652. Belot, M. V., and Hatton, T. J. (2012). Immigrant selection in the OECD. The Scandinavian Journal of Economics, 114(4), 1105-1128. Grogger, J., and Hanson, G. H. (2011). Income maximization and the selection and sorting of international migrants. Journal of Development Economics, 95(1), 42-57. Hatton, T. J., and Williamson, J. G. (2002). What fundamentals drive world migration? NBER Working Paper No. 9159. Pedersen, P. J., Pytlikova, M., and Smith, N. (2008). Selection and network effects—Migration flows into OECD countries 1990–2000. European Economic Review, 52(7), 1160-1186. |
| The Economics of Remittances | |
| Topic 4: | It has been often argued that one of the ways developing countries can benefit from the emigration of part of their workforce is through the remittances that the migrants send back to their home countries. What are the individual motives to remit and do remittances really help improve the situation of those left behind? The articles contained in this thematic block deal with those issues. Using case studies, this literature documents the effects of remittances on economic growth as well as on some indicators of a country’s development, such as health and education. Literature Bollard, A., McKenzie, D., Morten, M., and Rapoport, H. (2011). Remittances and the brain drain revisited: the microdata show that more educated migrants remit more. The World Bank Economic Review, 25(1), 132-156. Giuliano, P., and Ruiz-Arranz, M. (2009). Remittances, financial development, and growth. Journal of Development Economics, 90(1), 144-152. Amuedo-Dorantes, C., and Pozo, S. (2004). Workers' remittances and the real exchange rate: a paradox of gifts. World Development, 32(8), 1407-1417. Cox Edwards, A., and Ureta, M. (2003). International migration, remittances and schooling: evi- dence from El Salvador. Journal of Development Economics, 72(2): 429–461. Dustmann, C., and Mestres, J. (2010). Remittances and temporary migration. Journal of Development Economics, 92(1), 62-70. Hildebrandt, N., McKenzie, D. J., Esquivel, G., and Schargrodsky, E. (2005). The effects of migration on child health in Mexico [with comments]. Economia, 6(1), 257-289. McKenzie, D., and Rapoport, H. (2007). Network effects and the dynamics of migration and inequality: theory and evidence from Mexico. Journal of Development Economics, 84(1), 1-24. |
| Interactions among migration, FDI and Trade | |
| Topic 5: | This thematic block focuses on the link among international migration, FDI and Trade. The main hypothesis underlying this literature is that the immigrant community may influence consumers’ preferences and trade costs in the destination country so as to shape its patterns of trade and capital flows. Most results seem to hint that a country may benefit from the pool of immigrants residing within its borders in as much as they help strengthen the economic links between their home and host countries. Literature Aleksynska, M., and Peri, G. (2014). Isolating the network effect of immigrants on trade. The World Economy, 37(3), 434-455. Aroca, P., and Maloney, F. W (2005). Migration, trade, and foreign direct investment in Mexico. The World Bank Economic Review, 19(3), 449-472. Buch, C. M., Kleinert, J. and Toubal, F. (2006). Where enterprises lead, people follow? Links between migration and FDI in Germany. European Economic Review, 50(8), 2017-2036. Dunlevy, J. A., and Hutchinson, W. K. (1999). The impact of immigration on American import trade in the late nineteenth and early twentieth centuries. The Journal of Economic History, 59(4), 1043-1062. Gould, D. M. (1994). Immigrant links to the home country: empirical implications for US bilateral trade flows. The Review of Economics and Statistics, 76(2), 302-316. Javorcik, B. S., Özden, Ç., Spatareanu, M., and Neagu, C. (2011). Migrant networks and foreign direct investment. Journal of Development Economics, 94(2), 231-241. |
