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Globalization, Optimal Policies and Growth

Objective

This project studies the challenges that policy makers face in a world where globalization is proceeding at high speed and knowledge creation is the key to prosperity. It consists of two main parts: one focuses on optimal growth policies, the other on policy externalities induced by market integration. The first part builds on the premise that fostering innovation requires appropriate regulations on product market competition and on Intellectual Property Rights. The following questions will be addressed. What are the optimal competition and IPR policies when economic growth requires both innovation and technology diffusion? Are competition and IPR policies complements or substitutes? How does the optimal policy mix change with economic development? How do optimal contractual relationships evolve with development? What are the misallocations created by market power when sectors and firms are heterogeneous in technology and in the exposure to foreign competition? Are trade liberalization and competition policy complements or substitutes? The second part studies the consequences of and remedies to the growing mismatch between economic and political borders created by globalization. The following questions will be addressed: Why does the size of governments increase with globalization? Does higher international factor mobility lead to a race to the bottom in taxation? What is the effect of trade openness on pollution and environmental regulations? Can globalization induce governments to adopt more stringent environmental regulations? Does market integration call for a reorganization of the world political structure? Can the tendency to reinforce supra-national entities and the process of political fragmentation within states be complementary reactions to globalization?

Field of science

  • /social sciences/economics and business/business and management/commerce
  • /social sciences/sociology/globalization
  • /natural sciences/earth and related environmental sciences/environmental sciences/pollution
  • /social sciences/other social sciences/social sciences interdisciplinary/sustainable development
  • /social sciences/sociology/governance/taxation

Call for proposal

ERC-2009-StG
See other projects for this call

Funding Scheme

ERC-SG - ERC Starting Grant

Host institution

Centre de Recerca en Economia Internacional (CREI)
Address
Ramon Trias Fargas 25/27
08005 Barcelona
Spain
Activity type
Research Organisations
EU contribution
€ 450 000
Principal investigator
Gino Gancia (Dr.)
Administrative Contact
Anna Ricart (Ms.)

Beneficiaries (1)

Centre de Recerca en Economia Internacional (CREI)
Spain
EU contribution
€ 450 000
Address
Ramon Trias Fargas 25/27
08005 Barcelona
Activity type
Research Organisations
Principal investigator
Gino Gancia (Dr.)
Administrative Contact
Anna Ricart (Ms.)