Dieter M. Urban

Are Cardiovascular Diseases Bad for Economic Growth

We assess the impact of cardiovascular disease (CVD) mortality on economic growth, using a dynamic panel growth regression framework taking into account potential endogeneity problems. In the worldwide sample we detect a non-linear influence of working age CVD mortality rates on growth across the per capita income scale. Splitting the sample (according to the resulting income threshold) into low- and middle-income countries, and high-income countries, we find a robust negative contribution of increasing CVD mortality rates on subsequent five-year growth rates in the latter sample. Not too surprisingly, we find no significant impact in the low- and middle-income country sample.

Offshoring along the production chain

In this paper, we analyze the offshoring decision of firms whose production process is characterized by a particular sequence of steps. International cost differences vary non‐monotonically along the production chain, and moving unfinished goods across borders incurs transport costs. We show that, in such a setting, firms may refrain from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may offshore (almost) the entire production chain to save transport costs. Small variations in model parameters may thus have a substantial impact on offshoring activities. (Dans ce memoire, on analyse la decision de delocalisation des firmes dont le processus de production est caracterise par une sequence particuliere d’etapes. Les differences internationales de couts varient de facon non‐monotone le long de la chaine de production, et deplacer des produits au stade intermediaire de production a travers des frontieres implique des couts de transport. On montre que, dans un tel cadre, les entreprises peuvent choisir de ne pas delocaliser meme si la relocalisation de certaines etapes individuelles de production pourrait etre avantageuse en termes de couts, ou elles peuvent delocaliser (presque) la chaine de production dans son entier pour reduire les couts de transport. De faibles variations dans les parametres du modele peuvent avoir un impact substantiel sur les activites de delocalisation.)

Offshoring Along the Production Chain (Délocalisation Le Long De La Chaine De Production)

In this paper, we analyze the offshoring decision of firms whose production process is characterized by a particular sequence of steps. International cost differences vary non‐monotonically along the production chain, and moving unfinished goods across borders incurs transport costs. We show that, in such a setting, firms may refrain from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may offshore (almost) the entire production chain to save transport costs. Small variations in model parameters may thus have a substantial impact on offshoring activities. (Dans ce memoire, on analyse la decision de delocalisation des firmes dont le processus de production est caracterise par une sequence particuliere d’etapes. Les differences internationales de couts varient de facon non‐monotone le long de la chaine de production, et deplacer des produits au stade intermediaire de production a travers des frontieres implique des couts de transport. On montre que, dans un tel cadre, les entreprises peuvent choisir de ne pas delocaliser meme si la relocalisation de certaines etapes individuelles de production pourrait etre avantageuse en termes de couts, ou elles peuvent delocaliser (presque) la chaine de production dans son entier pour reduire les couts de transport. De faibles variations dans les parametres du modele peuvent avoir un impact substantiel sur les activites de delocalisation.)

FDI Technology Spillovers and Wages

This study distinguishes multinational firm (MNE) technology-spillover from learning effects. Whenever learning takes time, the model predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers and add it to experienced ones to prevent them from moving to local competitors. Hence, the national wage bill is unaffected by the presence of MNEs. In contrast to learning, technology spillover effects occur whenever a worker with MNE experience contributes more to local firms than to MNEs productivity. In this case, experienced MNE workers are hired by indigenous firms and the host country obtains a welfare gain from the presence of MNEs.