Economics

  • Permalink Gallery

    The cost of discrimination against senior Jewish managers in Nazi Germany

The cost of discrimination against senior Jewish managers in Nazi Germany

Talented individuals are often excluded from leadership positions if they belong to a group that faces discrimination. Such discrimination is, of course, extremely hurtful and unfair to the individuals. But is it also costly in a more general sense?

In particular, do corporations 
become less profitable when they adopt discriminatory attitudes and exclude highly qualified individuals from leadership roles? How […]

  • Permalink Gallery

    China’s shipbuilding industry: measuring the effect of industrial policy

China’s shipbuilding industry: measuring the effect of industrial policy

Industrial policies, broadly defined as policies that shape a country’s or region’s industry structure by either promoting or limiting certain industries or sectors, have been widely used in developed and developing countries. Historic examples include the U.S. and Europe after World War II, Japan in the 1950s and 1960s, South Korea and Taiwan in the 1960s and 1970s. Today, […]

April 15th, 2019|Economics|0 Comments|

‘Global Britain’: scripting the EU as an enemy

Like all things Brexit, Theresa May’s intention of building “Global Britain” outside the European Union has been controversial from the outset. Government ministers have expended a good deal of political capital championing “why Global Britain matters”, framing it as an exercise in creating an “outward-looking” country confidently meeting global challenges. For its advocates, Global Britain is about connecting with […]

  • Permalink Gallery

    In a world of mobility for firms and skilled labour, workers who can’t move pick up the tax bill

In a world of mobility for firms and skilled labour, workers who can’t move pick up the tax bill

For a long time, economists have known that rising globalisation can bring substantial aggregate gains, but also produce winners and losers. The source of this growing inequality may be heterogeneous effects on employment, wages, and prices. Trade barriers have been shrinking since the end of World War II, reaching its lowest levels in the years since the fall of […]

April 11th, 2019|Economics|0 Comments|

The value of having a view to a canal

Britain has an extensive canal and navigable river network, which played a vital role in transporting goods from the Industrial Revolution through the 18th, 19th and early part of the 20th centuries. Their use for transporting freight had all but disappeared by the mid-20th century, and many had fallen into disrepair or been abandoned. Since then, the canal and […]

  • Permalink Gallery

    Africa’s continental free trade area: progress and challenges

Africa’s continental free trade area: progress and challenges

The African continental free trade area (AfCFTA) was signed in Kigali, Rwanda, on 18 March 2018. With Egypt’s parliamentary ratification, three weeks from the anniversary of the signing, 19 out of the required 22 ratifications are in hand, signalling that meeting the objective of ‘entry into force’ (30 days later) is within reach.

This is no mean feat given that […]

  • Permalink Gallery

    As the Phoenicians sailed across the Mediterranean, they spread mice and growth

As the Phoenicians sailed across the Mediterranean, they spread mice and growth

While economists extol the virtues of trade, advocates of free trade face stiff political headwinds these days. The economic ideas for the benefits of trade go back more than 200 years
 to Adam Smith and David Ricardo, but empirical evidence for these benefits has been much harder to come by and is much more recent.

In particular, empirical economists have […]

  • Permalink Gallery

    Income inequality is growing fast in China and making it look more like the US

Income inequality is growing fast in China and making it look more like the US

Between 1978 and 2015, China moved from a poor, underdeveloped country to the world’s leading emerging economy. Despite the decline in its share of world population, China’s share of world GDP increased from less than 3 per cent in 1978 to about 20 per cent by 2015 (see Figure 1). According to official statistics, real national income per adult […]

April 1st, 2019|Economics|0 Comments|
  • Permalink Gallery

    Non-performing loans are still hovering over the European banking union

Non-performing loans are still hovering over the European banking union

The assessment of credit risk is a critical part of the macro-prudential analysis, with the aggregate non-performing loan (NPL) ratio serving as a proxy for the economy-wide probability of default of the banking sector’s overall loan exposure. High NPL ratios affect banks’ balance sheets and profitability, overall slowing down economic growth. Therefore, the factors driving NPL ratios in different […]

Why we need to incubate unicorn entrepreneurs, not ideas

The venture and innovation worlds are focused on idea-based venture development. They spend money on incubators and very-early-stage venture capital (VC) seed funds in hopes of building giant ventures from seemingly promising ideas and technologies. But is this wasted capital? Can angels, incubators, venture developers and universities see potential before it is proven? Or can they show more results […]

Introducing valueism and social contract accounting

In her final article at the Financial Times, business editor Sarah Gordon summarises what she learned over 20 years and concludes, “Many businesses are badly run, but business is not bad”. It is a pretty damning conclusion, supported by the large list of examples she offers. Her conclusion does not surprise me. In my past writings I have often referred […]

The UK economy is hostage to Brexit political drama

European policy-makers have given Mrs May the option to push her 585-page withdrawal agreement through Parliament for the third time (!!!) around or decide what to do with Brexit by the 12th of April. In fact, the ‪EU’s decision to allow Mrs May to ‘sort out’ Brexit by the 12th of April is largely down to economic considerations. On the […]

March 27th, 2019|Economics|0 Comments|
  • Permalink Gallery

    Locking horns: online incivility is seen as the new normal, and it inhibits social trust

Locking horns: online incivility is seen as the new normal, and it inhibits social trust

Have you ever witnessed (or been involved in) one of those endless Facebook discussions where users fight each other on sensitive issues with nonsensical arguments and rude comments filled with hate and stereotypes? How did this make you feel?

“When it’s a faceless, person-less comment, and it’s comment after comment after comment, it makes you lose faith in humanity”, once […]

Regulating mobile money: what’s at stake

In the past decade, mobile payment systems (MPS) have rapidly emerged in many developing economies, addressing several well-known gaps in the provision of financial services. MPS, also known as mobile money, has allowed consumers who are often unbanked or underbanked, to transact and to store money more efficiently, thereby reducing the costs of engaging in undertaking all transactions, including […]

The impact of the Brexit vote on the economy is now clear

The impact of the Brexit vote can now begin to be evaluated with greater accuracy than previous forecasts, thanks to the emergence of new data. In the run-up to the UK’s referendum on membership of the European Union (EU) in June 2016, a number of research reports estimated the likely economic impact of Brexit (see, for example, Dhingra et […]

March 23rd, 2019|Economics|1 Comment|
  • Permalink Gallery

    Canada’s supply management system: lessons from Britain’s Corn Laws

Canada’s supply management system: lessons from Britain’s Corn Laws

The recent controversy over Canada’s ‘supply management system’ of agricultural protection during the regional US-Mexico-Canada Trade Agreement (USMCA) negotiations was a timely reminder of the entrenched protectionism in nations that retain a theoretical commitment to international ‘free trade’. It also indicates that deviations from free trade in many guises thrive in market economies where benefits are concentrated, and costs […]

  • Permalink Gallery

    Gutenberg’s moving type propelled Europe towards the scientific revolution

Gutenberg’s moving type propelled Europe towards the scientific revolution

Fundamental changes in information technologies have profound implications for labour markets, for the production and spread of knowledge, and for the evolution of politics and beliefs. But competition among producers also influences the use of these technologies and their impact on multiple dimensions of life. The introduction of Gutenberg’s printing press crystallised these dynamics and profoundly shaped the long-run […]

  • Permalink Gallery

    How steam railways shaped the emerging metropolitan area of London

How steam railways shaped the emerging metropolitan area of London

Modern metropolitan areas include vast concentrations of economic activity, with Greater London and New York City today accounting for around 8.4 and 8.5 million people, respectively. These intense concentrations of population involve the transport of millions of people each day between their home and work, as surveyed in Redding and Turner (2015). Today, the London Underground alone handles around […]

Who gets to occupy the corporate C-suite?

You have been in your current job for some time. You have learned a lot, acquiring valuable knowledge and skills as well as getting to know people in your workplace. You enjoy what you do. Now there is an opportunity to move to another job within the organisation. The job is quite different from what you have been doing, […]

The political influence on state bank lending in Turkey 

The Great Recession of 2008-09 led to government bailouts of banks in Europe and elsewhere, giving rise to greater presence of state banks in the financial sector. This sparked a renewed debate over the economic costs and benefits of state bank lending. On the one hand, a large literature argues that lending by state banks is inefficient, subject to […]