We investigate the export-enhancing effect of foreign workers at the firm level. We first develop a theoretical framework of heterogeneous firms, assuming that foreign workers allow for productivity gains and convey valuable information on foreign...

Evidence on the effectiveness of FX interventions is either limited to short horizons or hampered by debatable identification. We address these limitati

This report examines key aspects of the European Union-China economic relationship, including trade, investment and China’s key strategic project overseas, the Belt and Road Initiative (BRI). We conclude that China is, and will continue to be, a...

The European Commission is currently finalizing its proposed New Pact on Migration and Asylum to re-start the debate on how to reform the common Europea

...„Wenn sich ein Land besonders stark für eine gemeinsame Krisenbewältigung einsetzen sollte, dann ist das Deutschland, im wohlverstandenen Eigeninteresse", sagte Gabriel Felbermayr, Präsident des Kieler Instituts für Weltwirtschaft (IfW)....

Political trust matters for citizens’ policy preferences but existing research has not yet considered whether this effect depends on how policies are

The extensive margin of bilateral trade exhibits a high level of persistence that cannot be explained by geography or trade policy. We combine a heterogeneous firms model of international trade with bounded productivity with features from the firm...

The return on German foreign assets is significantly lower than that of other countries that invest internationally. Since 1975, average annual returns have been about 5 percentage points below those of the USA and almost 3 percentage points below...

Germany is world champion in exporting capital (“Exportweltmeister”). No other country invests larger amounts of savings outside its borders.

He misunderstands the U.S. current account.