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Macro-economic Policy

Standort UK? German DFI and employment

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Standort UK? German DFI and employment " Germany is a significant investor in the UK, providing the second largest source of direct foreign investment (DFI) into the UK in terms of both stock and flow of such investments. This study investigates the quantitative and qualitative employment effects of German DFI into the UK in both home and host countries and sets out to answer questions as how important traditional and embeddedness factors as drivers of DFI into the UK are, whether German DFI create jobs in the UK, what types of jobs are associated with German DFI into the UK and whether German DFI lead to a loss of jobs and/or a loss of skilled jobs in Germany. The study concludes with an outline of policy implications. By Ulrich Hoppe, Frank McDonald, Heinz-Josef Tüselmann and David Williams for the Anglo-German Foundation UK

 

By Anglo-German Foundation , UK.

Macro Economic Policy Resource.


Globalization and Tax Competition

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Globalization and Tax Competition " Does globalization undermine the fiscal basis of the welfare state? The conventional wisdom believes so: open borders cause tax competition, which in turn leads to a race to the bottom in capital taxation. However, the data show that revenues from capital taxation are fairly stable in OECD countries. Some observers conclude from this that globalization does not pose much of a challenge to the welfare state. Philipp Genschel argues this conclusion is unwarranted because it overlooks that tax competition was not the only challenge facing welfare states during the 1980s and 1990s. There was also slow growth, rampant unemployment, and high levels of precommitted spending. "Globalization, Tax Competition, and the Fiscal Viability of the Welfare State" is published by the Max Planck Institute for the Study of Societies.

 

By Max Planck Institute for the Study of Societies., Germany.

Macro Economic Policy Resource.


Productivity in France and Germany

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Productivity in France and Germany" Laurence Nayman and Deniz Ünal-Kesenci compare manufacturing output and productivity levels between Germany and France since German unification. While the French level of productivity in terms of labour, capital and their combination was below the German one in 1997 France took advantage of lower unit labour costs than Germany and caught up significantly over the 90s. Disparities between the eastern and the western Länder that resulted in a lesser productivity growth still remain large. But the commitment of the east to more high-tech production processes using skilled labour could turn in the future into competitiveness gains for all Germany. "The French-German Productivity Comparison Revisited: Ten Years after the German Unification" is published by the Centres d'Études Prospectives et d'Informations Internationales.

 

By Centres d'Études Prospectives et d'Informations Internationales, France and Germany.

Macro Economic Policy Resource.