International trade and investments
Research group: Growth, international trade and competition Research began: 2017 Research ends: 2020 Sponsored by: TT-foundation

Responsible for research:

International trade and investments

International trade and investments

Etla started three-year international trade and investments research at the end of 2017. The need for research has increased due to changes in trade on one hand and contract arrangements related activites and political pressures on the other. There are various research themes: e.g. effects of UK withdrawal from EU, effects of free trade, effects of globalization on employment and wages, issues related to international trade in services, ideas for changing the international investment regime and changes in internatiol value chains e.g. development of new technologies and international climate goals.

Studying these various themes requires different approaches. The study of trade liberalisation efforts, on one hand, and its unwinding (Brexit), on the other, would require models in which tariffs and tariff equivalents for non-tariff barriers can be planted (e.g. the GTAP model). Theoretical orientation toward international trade and location research could provide tools for understanding what has happened. Development in supply chains could be clarified quite clearly at the industry on the basis of input-output-based databases of international trade (e.g. Wiod and OECD). Development of value chains could also be clarified on the basis of business cases (e.g. interviews, business survey). Technological development is also significant factor in development of international trade. It has implications for both value chains and whole farming method. On the other hand, external trade is substantial for the development of technology and innovation. The impact of international trade development on the labour market is its own issue, somewhat separate from the development of trade itself. However, wage levels determined in the labour market has feedback to trade through cost competitiveness.

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