Measuring the representativeness of social partners in Europe

By Marta Martínez and Pedro Martins

Are workers and firms well represented in social dialogue? In many countries, affiliation rates to social partners (employer associations and trade unions) have been decreasing for decades. However, social dialogue still regulates labour conditions of a significant part of firms and workers through collective agreements and, in some cases, their extensions. The result of this social dialogue generally includes conditions over wages, working time, training, and many other issues, with important effects on the labour market and the economy.

Creator: Hilch Credit: Getty Images/iStockphoto

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What drives social returns to education?

By Ying Cui and Pedro Martins

Schooling typically delivers significant private returns, with better educated individuals generally receiving higher earnings. However, the schooling of one person has also the potential to generate significant positive effects on other individuals, through formal and informal social interactions between them. Economists refer to these spillovers as ‘externalities’. These third-party effects also explain the wedge between private and social returns to education: while the former are typically estimated at 5% to 10%, the latter can be as high as 10% to 20%.

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Corporate social responsibility and cross-border M&A by Chinese firms

By Xianmin Liu
What is CGR PhD's research about? 
Introducing research projects of CGR PhD members

My research aims to explore the relationship between corporate social responsibility (CSR) and the success of cross-border M&As by Chinese A-share listed firms to extend our understanding of why and how Chinese firms pay more attention to CSR performance in initiating cross-border M&A and going global.

In the last three decades, both the value and number of cross-border mergers and acquisitions (M&A) have soared in waves (Xu, 2017). As a majority of foreign direct investment (FDI) (Albuquerque et al., 2019), cross-border M&As have become more prevalent to gain such as strategic assets, natural resources, market power and synergistic effect. Accordingly, the extant researches in cross-border M&A are also rapidly increasing, especially in emerging market countries like China (Karolyi and Liao, 2017; Li, Li and Wang, 2019; Schweizer, Walker and Zhang, 2019), which is the biggest developing country and overtook Japan as the second-largest economy in the world since 2010. In addition, China is still a transitional nation and has a transformational and proactive government, promoting studies in cross-border M&A under the institutional environment with Chinese characteristics as well.

Source: Thomson Reuters Eikon M&A database, compiled by the author.
Note: Completion rate of cross-border M&A is the ratio of the number of completed cross-border M&A deals recorded by Eikon to the total number of announced cross-border M&A deals. Dotted line of China2 excluded the targets in Hong Kong, Macau and Taiwan, because they are special administrative region (SAR) of China.Read More »

Coronavirus recovery – lessons from the eurozone crisis

By Stella Ladi, Angie Gago, Catherine Moury and Daniel Cardoso
Re-blogged

As governments around the world grapple with the public health and economic effects of the COVID-19 pandemic, there are striking similarities with the eurozone crisis that followed the 2008 financial crisis. Having researched this crisis, it is clear to us that there are some important lessons to apply to today’s recovery. The early signs indicate that the EU is responding much more effectively to this crisis than it did in 2008.

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CGR Working Paper | COVID-19 response needs to broaden financial inclusion to curb the rise in poverty

By Mostak Ahamed and Roxana Gutiérrez-Romero
CGR Working Paper 105

The ongoing COVID-19 pandemic risks wiping out years of progress made in reducing global poverty. In this paper, we explore to what extent financial inclusion could help mitigate the increase in poverty using cross-country data across 78 lowand lower-middle-income countries. Unlike other recent cross-country studies, we show that financial inclusion is a key driver of poverty reduction in these countries.

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How Germany flattened the curve

By Georg von Graevenitz
Re-blogged

CORE links modern economic methods to pressing policy challenges: mounting inequalities, climate change, concerns about power in the workplace, and financial instability. COVID-19 has highlighted inequalities in new ways, demonstrated the risks of ignoring pollution linked to climate change and underscored the role of governments in stabilising economies, coordinating responses and preparing for adversity. The pandemic also highlighted the role of science and trust in protecting society against adversity. Differences in preparedness, often the result of many years of incremental policy developments, have been particularly significant in this fast moving crisis. This post describes how scientists, preparedness and luck combined to simplify crisis management in Germany. But neglect of the exploitation of workers in the meat-processing industry has created unexpected external effects as new lockdowns are now being declared.

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Making the case for LMIC to be partners in the global solution for COVID-19

By Kaouthar Lbiati

The growing success of efforts to contain the spread of Covid-19, the disease caused by the virus, may present yet another hurdle – How to end lockdown without causing a second wave? There is no modern analog for the shutdown of economic activity. Ending the lockdown needs unparalleled capabilities in testing, tracing and most importantly it needs researchers to deliver a new vaccine!

Lockdown
Source: https://wendyedavis.files.wordpress.com/2020/04/lockdown.jpg

This paper makes the case for low and middle-income countries (LMIC) to be part of the clinical evaluation of the efficacy and safety of the COVID-19 future vaccine, the ramping up of regional manufacturing capabilities for local immunization and underscores the critical importance of reaching an advanced purchase agreement with manufacturers and suppliers as well as building up multilateral financial partnerships with key institutions before even a vaccine is made available in either North America, Asia and/or Europe.

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A study of Indian Born Global Firms

By Amrita Manohar
What is CGR PhD's research about? 
Introducing research projects of CGR PhD members

The survival and success of a company internationally is dependent on a multitude of factors, such as their financial resources, past experience, and familiarity with their own domestic market in order to achieve this international presence. However, certain firms called ‘born global’ firms have been able to establish international operations despite not possessing the resources or experience. According to Knight and Cavusgil (2004), Born global firms (BGs) are companies that begin international operations either at or soon after their establishment, with a notable part of their revenue generated from their activities in foreign markets.

Apart from early internationalization, BGs are characterized by their small size, limited resources, lack of prior experience in the domestic and international markets, and limited knowledge. These characteristics serve to differentiate them from large multinational enterprises, domestic firms, and small and medium-sized enterprises that follow a more gradual internationalization path.

Source: Shutterstock

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Technological platforms in South Korean automotive, electronics and service robotics industries

By Soo Jung Oh
What is CGR PhD's research about? 
Introducing research projects of CGR PhD members

My research aims to explore and compare technological platforms in the South Korean automotive, electronics and service robotics industries to extend our understanding of why and how organisations build and use different types of technological platforms.

A technological platform is a modular architecture consisting of core components and peripheral components. The core components provide a foundation for peripheral components to be developed. For example, Apple’s iPhone is a core, and it gives a basis for application development which is a periphery. Therefore, technological platforms connect companies who can innovate and compete by developing core components as well as peripheral components.

Industrial robotic arms
Image from https://www.manufacturingglobal.com/technology/rise-robotics-manufacturing

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Vocational education in China

By Li Dai and Pedro Martins

Vocational education is an important and well-established alternative to academic education. In most countries, the number of vocational graduates is now on par with that of academic graduates. In the case of China, there are approximately 11 million students graduating with vocational education qualifications annually, only slightly less than the around 12 million academic graduates per year.

Dai Martins MAR2020

Figure 1. The density of secondary vocational schools in China (More details in the paper)

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