IRES research in international economics focuses on trade and factor mobility. We have projects on export participation and firm-level performance and on demand-driven determinants of trade flows. The determinants and implications of factor mobility is another important area for us. This includes international movement of skilled and unskilled workers and the links between factor mobility and economic development and income inequality between nations.
Research in international economics is organized around two main areas:
I. Trade theory and quality
Trade theory usually emphasizes the role of supply-side determinants of trade flows (productivity, relative endowments, size etc.). However, in a world where goods are more and more differentiated, consumer preferences should play a role in the determination of countries’ comparative advantages. Florian Mayneris investigate this question both theoretically and empirically in the context of European integration.
Florian Mayneris also analyzes how the specialization of countries in a given quality segment might have repercussions on macroeconomic outcomes. He uses French firmlevel data and exploits information on the export prices charged by firms from the French luxury sector to identify high-end exporters.
Another research topic (led by Florian Mayneris) is focusing on the formation of groups of exporting firms and their strategy in terms of the products they export and in terms of quality type they choose to produce.
Main publications in 2015-2016
Hübner, Malte; Vannoorenberghe, Gonzague. Patience and long-run growth. In: Economics Letters, Vol. 137, p. 163-167 (December 2015).
Ourens, Guzman. Trade and growth with heterogeneous firms revisited. In: Journal of International Economics, Vol. 100, no. 1, p. 194-202 (2016).
II. Trade, risk and volatility
While typically seen as a source of economic growth, international trade also affects the risk faced by countries, industries or firms. Being open to foreign market may raise their exposure to foreign shocks, but also makes them less sensitive to domestic shocks. Gonzague Vannoorenberghe investigates theoretically and empirically whether involvement in international trade acts as a source of volatility or of stability for different economic actors, with a particular focus on the variables mediating that relationship. While increased risk may not be a major concern in the presence of perfect markets and a high mobility of production factors, Gonzague Vannoorenberghe shows that increased risk has a differential impact on different groups and can generate welfare costs even in the presence of mild policy distortions. He notably investigates the effect of trade-induced risk on unemployment, the movement of labor across sectors, and the support for redistributive policies.
Main publications in 2015-2016
Vannoorenberghe, Gonzague; Janeba, Eckhard. Trade and the political economy of redistribution. In: Journal of International Economics, Vol. 98, p. 233-244 (January2016).
Vannoorenberghe, Gonzague; Wang, Zheng; Yu, Zhihong. Volatility and Diversification of Exports: Firm-Level Theory and Evidence. In: European Economic Review, vol. 89, p; 216-247 (October 2016).
III. Geographical mobility of labor.
Research on the geographical mobility of labor is related to research on the determinants of the international mobility of labor. A first project led by Frédéric Docquier aims (i) to identify the determinants of international labor mobility, (ii) to characterize the dynamics of migrant diasporas (defined as the stock of people born in country i and living in country j), (iii) quantify the role of total migration costs and their legal component, (iv) predict how many migrants could leave in case of a liberalization of migration.
Another project led by Fabio Mariani concerns the links between migration and crime. Its starting point is the fact that, contrary to popular perception, empirical evidence shows that crime rates are not necessarily higher among immigrants than among natives. However, in most cases, second-generation immigrants are more involved in criminal activities than natives. These stylized facts are analyzed theoretically in the framework of a two-country, endogenous «career choice» model.
Assimilation policies are the third pillar of immigration policies (together with quantitative restrictions (quotas) and qualitative selection of immigrants (skill requirements, for instance). Another project (led by F. Mariani) focused on the political economy, at the country level, of immigrants’ naturalization.
Main publications in 2015-2016
Aubry, Amandine; Burzynski, Michal; Docquier, Frédéric. The welfare impact of global migration in OECD countries. In: Journal of International Economics, Vol. 101, p. 1-21 (July 2016).
