Joint projects underway include the following:
A trade and investment project studies the impact of globalisation and regional integration on the location of production, on production structure, and on income levels. Which activities are relocating from established industrial centres to peripheral regions in Europe and to developing countries? How are traditional patterns of industrial development being changed by the growth of production networks and by outsourcing of stages of the production process? How are trade and domestic policies to be reformulated to take into account increasing levels of overseas investment and more internationally mobile economic activity?
Another project links insights from industrial organisation with those from geography and trade. This asks to what extent the gap between industrialised economies and the industrialising countries in the World Bank's 'middle group' reflects a late entrant disadvantage suffered by the latter group. Here the challenge is to pin down an estimate of the penalty suffered by latecomers to global markets. The research will also consider to what extent joining international supply chains offers a way of circumventing trade and technology barriers for industrialising countries.
Globalisation also has implications for the design of government institutions. Many commentators emphasise the dual need for more effective local and global institutions to deliver policy solutions. There are also broader issues of constitution design in the future Europe. Our political economy research programme will investigate the link between institutional design and economic performance. International competition in regulation and tax regimes will affect the future structure of bond and equity markets and patterns of investment. This will also necessitate thinking about global financial architecture.