Tag Archives: Integration

In an interview with the NZZ, Gabriel Felbermayr explains where the European Union adds value, and where it doesn’t. The key points: Free trade for goods and services as well as capital and labor mobility are partial substitutes. Partial, because factor mobility fosters trade and technology transfer. Estimates suggest that free trade and capital mobility generate more than 80% of the welfare gains from European integration. Even labor mobility does not require admission into welfare...

Link to slides of a presentation at the Peterson Institute. According to Baldwin, the new globalization (since 1990) reflects the fact that ICT enabled G7 firms to precisely control what goes on inside developing-nation factories.