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Coordination Funds

Subject Area Economic Policy, Applied Economics
Economic Theory
Term since 2026
Project identifier Deutsche Forschungsgemeinschaft (DFG) - Project number 550491480
 
New developments in international trade have changed the costs and benefits of globalization. With a deeper international division of labour, the scope for welfare gains from trade has widened considerably. At the same time, the scope for distributional conflicts within and between countries has increased as well, providing new challenges for policy intervention, which - as argued by many - is needed in order to counter increasing resistance to globalization and the new wave of economic nationalism observed in the recent past. In this research unit, we will shed light on three factors that shape major challenges to globalization: First, we will analyze new forms and dimensions of international trade, such as the emergence, deepening, and reorganization of global value chains, the surge of international trade in services, and the role of large "superstar" firms in the changing world economy. Second, we will explore the role of major changes of technology fuelled by computerization, automation, and robotisation in the context of transforming international trade. And third, it is an important task of our research unit to identify the winners and losers of globalization, to shed light on how the dividing line separating the two groups has shifted over time, and to discuss suitable measures of policy intervention that allow larger parts of society to participate in the overall gains from trade.
DFG Programme Research Units
 
 

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