Globalization: Strategies and Effects

609 Pages·2017·11.355 MB·English

by  Bent Jesper Christensen, Carsten Kowalczyk (eds.)

Bent Jesper Christensen
Carsten Kowalczyk E ditors
Globalization
Strategies and Eff ects
Globalization
Bent Jesper Christensen • Carsten Kowalczyk
Editors
Globalization
Strategies and Effects
123
Editors
BentJesperChristensen CarstenKowalczyk
DepartmentofEconomicsandBusiness TheFletcherSchool
Economics TuftsUniversity
AarhusUniversity Medford
Aarhus,Denmark Massachusetts,USA
ISBN978-3-662-49500-1 ISBN978-3-662-49502-5 (eBook)
DOI10.1007/978-3-662-49502-5
LibraryofCongressControlNumber:2017932094
©Springer-VerlagBerlinHeidelberg2017
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Tomyparents,Dorisand JensH.Christensen
BentJesper Christensen
Tomy daughter,Sara Kowalczyk
CarstenKowalczyk
Preface
This volume presents work on globalization by researchers from economics,
business,politicalscience,law,andthehumanitiesastheculminationofadecade-
long focus on this topic at Aarhus University (AU), Denmark, starting with the
inclusionofglobalizationasaresearchfocusareainthe2006developmentcontract
betweenAUandtheMinistryofScience,TechnologyandInnovation.Thecontract
providedfundingforprojectsonglobalizationatAU,withBentJesperChristensen
(BJC,AU, coeditor)inchargeoftwolargeprojects,includingseveralcontributors
to this volume. As an adjunct faculty member at AU, Carsten Kowalczyk, Tufts
University and AU (CK, coeditor), participated in the first of these projects, on
“GlobalizationandEuropeanIntegration”(GEI,GrantNo. AU-121722-1344,also
including Torben M. Andersen, AU (TMA), a contributor to this volume, and
others). The second project grant, “Globalization, Migration and Capital Flows”
(GrantNo. AU-121722-1345,the project also including Annette S. Hansen, Peter
Nannestad, and Martin Paldam (MP), AU researchers and contributors to the
volume, and others), supplemented external funding obtained by BJC from the
Social Science Research Council for the project “Globalization, Migration and
ForeignAid”(GrantNo.SSF-275-05-0319,alsowithMPamongtheparticipants).
BJC spent 1 year of the project period at the Department of Economics, Harvard
University,andinCambridgemetwithCKtomakeplansforprojectactivities.The
GEIgrantprovidedforpart-timebuyoutfromteachingatTuftsUniversityforCK
tohelporganizeaninternationalconferenceonglobalizationinDenmark.Afterthe
projectperiod for the originalgrants, BJC obtaineda new externalgrantfromthe
SocialScienceResearchCouncil,foraresearchcenteron“Cycles,Adjustment,and
Policy”(CAP,GrantNo.DFF-10-079705,alsoincludingcontributorstothisvolume
TMA, Dale T. Mortensen, Northwestern University and AU, and Allan Sørensen,
AU).CAPstartedin2010andfinancedaconferenceon“Globalization:Strategies
and Effects,” organizedby BJC and CK, which took place at Hotel Koldingfjord,
Denmark,November9–12,2011.Attheconference,paperscontributedinresponse
toaninternationalopencall,invitedpapers,andpaperscomingoutofCAPandthe
AUresearchfocusareawerepresented,andsomeofthepaperswerelatersubmitted
forconsiderationforpublicationinthisvolume.Alsoconsideredweresomepapers
vii
viii Preface
comingoutofCAPandtheAUresearchfocusarea,byauthorswhowereunableto
attendtheconference,includingHaleUtar,BielefeldUniversity,acontributortothe
volume.Inaddition,beforetheconference,inSeptember,2011,AnneO.Krueger,
JohnsHopkinsUniversityandStanfordUniversity,hadbeenawardedanHonorary
DoctorateatAU,andherpaperwasconsideredtoo.Foreditingandfinalpublication
ofthevolume,BJC obtainedgrantsfromtheAU ResearchFoundation(GrantNo.
AUFF-EFLS-14-430), the Aarhus Institute of Advanced Studies (AIAS) at AU,
and CREATES, funded by the Danish National Research Foundation (Grant No.
DNRF-78).Wehopethattheresultingvolumewillbeofinteresttoresearchersand
advancedstudentsof globalizationalike and thatit will help spurfurtherresearch
onthisexcitingandimportanttopic.
Manyindividualsandinstitutionshavehelpedalongthewaytothispublication—
too many for all to be mentioned here. We are grateful to Aarhus University,
the AU Research Foundation, the National Research Foundation, and the Social
Science Research Council for the grants mentioned above, to Tufts University
for allowing the buyout of teaching for CK, and to AIAS and the Department
of Economics, Harvard University, for their hospitality and support. Among the
peoplewhohavehelpedwithadministration,organization,theconference,editorial
assistance, photography,andmanyothermattersare JuanCarlosP. Alvarez,Peter
A.Bache,RitwikBanerjee,JeffreyH.Bergstrand,HenningBunzel,MenzieChinn,
AnnaP.Damm,CarlDavidson,StevenJ.Davis,SalvatoreDell’Erba,JanFidrmuc,
Holger Goerg, Ingrid Henriksen, Samuel S. Kortum, Asli Leblebicioglu, Rune V.
Lesner,EdithLiu,KristineMidtgaard,VioletaMoreno-Lax,JørgenB. Mortensen,
JørgenU.Nielsen,AlexandrosX.M.Ntovas,PaolaA.B.Quiroga,ValerieRamey,
BoS. Rasmussen,HelenaS. Raulus,DavideSala,ThomasA.Sampson,Christian
Schultz, Niclas M. Skovbjerg,Kirsten Stentoft, MichaelSøndergaard,Kenneth L.
Sørensen,ClausVastrup,andRuneM.Vejlin.Wethankthemall.
Aarhus,Denmark BentJesperChristensen
Medford,MA,USA CarstenKowalczyk
About the Conference
Hotel Koldingfjord, Denmark, venue of the Aarhus University conference
Globalization: Strategies and Effects, organized by Bent Jesper Christensen and
CarstenKowalczyk.(PhototakenbyNiclasMaabariSkovbjerg)
ix
x AbouttheConference
Participants at the Aarhus University conference Globalization: Strategies and
Effects, Hotel Koldingfjord, Denmark, organized by Bent Jesper Christensen and
CarstenKowalczyk.(PhototakenbyNiclasMaabariSkovbjerg)
Contents
IntroductiontoGlobalization:StrategiesandEffects ....................... 1
BentJesperChristensenandCarstenKowalczyk
PartI Search,Matching,andGlobalization
ProductandLaborMarketEntryCosts,Underemployment
andInternationalTrade......................................................... 19
SpirosBougheasandRaymondRiezman
Offshoring,Mismatch,andLaborMarketOutcomes ....................... 47
DavidM.ArseneauandBrendanEpstein
GoodTimesandBadTimes,withEndogenousTradePolicy
Responses ......................................................................... 75
T.HuwEdwards
PartII MultinationalFirms
DynamicCapabilitiesandtheMultinationalEnterprise .................... 105
DavidJ.Teece
DeterminantsoftheFirm’sForeignInternalizationDecision .............. 131
SusannaThede
MultinationalsandCorruption:BusinessasUsual?......................... 147
AyçaTekin-Koru
ExportMarketExitandFirmSurvival:TheoryandFirstEvidence ...... 183
SanneHiller,PhilippJ.H.Schröder,andAllanSørensen
CharacteristicsofInternationalTradeIntermediariesand
TheirLocationintheSupplyChain ........................................... 207
HaleUtar
xi