The outlook for the euro area economy has improved somewhat in recent months. After five consecutive quarters of a decline of real GDP, the March estimate of the Eurogrowth indicator predicts a minor positive growth for the first two quarters of this year. So after the steep drop at the end of 2012, there may […]

Abstract: The euro crisis has rekindled questions about the advantages and disadvantages of membership in the European Monetary Union. In the Northern periphery of the EU, the different monetary regime choices of Finland and Sweden have created a particularly interesting testing ground for the benefits of the EMU. The average growth rates were rather similar […]

Abstract: This paper examines the causal link between foreign investment and firm performance in six small open economies in the European Union. Specifically, using micro data for manufacturing and services over the period 2001-2009, we analyse the effects of foreign mergers and acquisitions on labour productivity and employment growth up to five years after acquisition. […]

Abstract:This paper uses longitudinal linked employer-employee data to study how firms’ offshoring decisions affect labor market mobility and the wage growth of their employees. The results show that offshoring affects mobility primarily in occupations that are easily offshored. Wage growth, however, is weaker in the occupations that are offshorable, even if the employer has not […]