Networks of International Trade and Investment

Understanding globalisation through the lens of network analysis

Edited by Sara Gorgoni, University of Greenwich et al.

In recent decades, the international economy has witnessed fundamental changes in the way manufacturing is organised: products are no longer manufactured in their entirety in a single location. Instead, the production process is often split across a number of stages located in countries that are frequently far apart from each other. By spreading out their manufacturing and supply chain activities globally through international investment and intra-firm trade, Multinational enterprises (MNEs) play a focal role in this reorganisation of production. Our ability to understand the global economy, therefore, requires an understanding of the interdependencies between the entities involved in such fragmented production. Traditional methods and statistical approaches are insufficient to address this challenge. Instead, an approach is required that allows us to account for these interdependencies. The most promising approach so far is network analysis. ‘Networks of International Trade and Investment’ makes a case for the use of network analysis alongside existing techniques in order to investigate pressing issues in international business and economics. The authors put forward a range of well-informed studies that examine compelling topics such as the role of emerging economies in global trade and the evolution of world trade patterns. They look at how network analysis, as both an approach and a methodology, can explain international business and economics phenomena, in particular, in relation to international trade and investment. Providing a comprehensive but accessible explanation of the applications of network analysis and some of the most recent methodological advances in its field, this edited volume is an important contribution to research in international trade and investment.

Applied Economics for Development: Empirical Approaches to Selected Social and Economic Issues in Transition Economies

Edited by Mahmut Zortuk, Dumlupınar University, Turkey

Transition economies experience transformation of their economic system. Following the disintegration of the Soviet Union, a number of former socialist countries underwent transitions from central planning to a market economy. More generally, many rapidly growing economies undergo no less profound transformations of their economic systems. Contrary to common misconception, the transition process cannot be simply reduced to eliminating state intervention and liberalizing the economy. Economies under transition exhibit a unique set of policy challenges. Unlike developed market economies, missing markets or market failures abound. Economic transformation takes the form of rapidly evolving patterns of international trade and investment, industrial structure and consumption. These changes call for appropriate public policies. A continuing flow of investment hinges on suitable institutions, the provision of public infrastructure and other public goods. Adequate regulation can be central in ensuring that environmental resources are sustainably managed. And sophisticated production systems, call for corresponding social institutions in terms of education, health and welfare provisions. In all these cases, accurate empirical assessments are central to the design of effective policy. This book presents a selection of pressing economic and social issues in transition economies. Selected issues include the development of particular industrial sectors, the drivers and consequences of foreign direct investment, public finances, urbanization, social indicators, environmental policy and energy diversification. In each case an original empirical analysis is performed, using a variety of advanced quantitative methods, applied to recent data. The book will be of interest to economists studying transition economies, economic development or having a general interest in applied economics. It will be of particular interest to applied economists, policy analysts and policy makers in transition economies, concerned with the shape and direction of appropriate economic reforms.

Understanding DSGE models

Theory and Applications

Celso Jose Costa Junior, São Paulo School of Economics, Brazil

While the theoretical development of DSGE models is not overly difficult to understand, practical application remains somewhat complex. The literature on this subject has some significant obscure points. This book can be thought of, firstly, as a tool to overcome initial hurdles with this type of modeling. Secondly, by showcasing concrete applications, it aims to persuade incipient researchers to work with this methodology. In principle, this is not a book on macroeconomics in itself, but on tools used in the construction of this sort of models. It strives to present this technique in a detailed manner, thereby providing a step by step course intended to walk readers through this otherwise daunting process. The book begins with a basic Real Business Cycle model. Subsequently various frictions are gradually incorporated into a standard DSGE model: imperfect competition; frictions in prices and in wages ; habit formation; non-Ricardian agents; adjustment cost in investment; costs of not using the maximum installed capacity; and finally, Government.

Network Society

How Social Relations rebuild Space(s)

Roberta Iannone, Sapienza University of Rome, Italy et al.

The present volume attempts to critically evaluate claims that modern society may be read and understood as a network. Accepting that this perspective holds some potential, the question becomes how to best capitalize on it. To analyze society as a network means to respond not only to the “actual needs”, but also to highlight the "opportunities" and the "utilities", and to investigate whether society is increasingly relational or just perceived as such, as e.g. digital "social networks" and related concepts exemplify. From a strictly scientific perspective to answer the question "how to" read society as a network means to ask ourselves: a) if the conceptual categories (especially the concepts of structure and exchange) and the paradigms of traditional analysis (holism and individualism, both in the functionalist and the conflictive versions) are still sufficient; b) if new conceptual categories/theories/instruments are needed to represent more properly the reality we face: to investigate it, to explain it or, at least, to understand it. Starting from a reflection on already established social networks (Scott, 2003), the fundamental differences between groups and networks (Vergati, 2008), the logics of networks (Serra, 2003) as well as social capital formation and links (Di Nicola, 2006; Mutti, 1998), we seize the spatial dynamics, seemingly following opposite paths, but which revert to a common denominator: de-spatialization and re-spatialization, namely the processes of dematerialization of space(s) and its reconstruction by specific relational dynamics and forms. The study of networks is therefore not attributable to a single theory but to several theories converging towards a unique perspective (spaces) and logical reasoning (Serra, 2001) each one with its own uniqueness. The strength of this volume and the difference with respect to other attempts at explaining the Network Society lies in the multidimensional and interrelated perspectives it offers emerging from converging multidisciplinary perspectives (sociological, anthropological and linguistic), and from applications that the Network Society provides, namely, international (European Governance), institutional, public (linguistic landscape of the city of Rome) and mediated ones (communication technology).

Introduction to Dynamic Macroeconomic General Equilibrium Models

José Luis Torres Chacon, Universidad de Málaga, Spain

This book offers an introductory step-by-step course in Dynamic Stochastic General Equilibrium (DSGE) modelling. Modern macroeconomic analysis is increasingly concerned with the construction, calibration and/or estimation and simulation of DSGE models. The book is intended for graduate students as an introductory course to DSGE modelling and for those economists who would like a hands-on approach to learning the basics of modern dynamic macroeconomic modelling. The book starts with the simplest canonical neoclassical DSGE model and then gradually extends the basic framework incorporating a variety of additional features, such as consumption habit formation, investment adjustment cost, investment-specific technological change, taxes, public capital, household production, non-ricardian agents, monopolistic competition, etc. The book includes Dynare codes for the models developed that can be downloaded from the book’s homepage. The second edition is identical to the first with the exception of a revised appendix to Chapter 2. The revised appendix can be downloaded free of charge in the accompanying downloads section.