International Growth and Business Cycle Theory

Globalization and technological change is the driving force of growth and competitiveness, both at the firm and country level. During the last three decades, the global growth process has led to the appearance of new huge economies like China and India, as well as a number of smaller emerging economies on the economic map. A large share of the world’s industrial production has shifted from Europe and North America to these newly emerging countries. This shift in competitive advantages has changed real live and working conditions. Employers and employees in each firm have to adjust to these changing global conditions.

An understanding of monetary and financial aspects of globalization is of equal importance. Global financial and stock markets are closely linked. In the last decade alone, major currency and financial crises have affected industrializing countries from East Asia to Latin America damaging economic growth.

Research on the dynamics of global growth and competition as well as the global integration of financial markets is the core focus of this research unit.