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Dalia Marin



Articles by Dalia Marin

Making supply chains more resilient

September 14, 2021

A Global Deal for Our Pandemic Age
Report of the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response.

By: Tharman Shanmugaratnam, Lawrence H. Summers, Ngozi Okonjo-Iweala, Ana Botin, Mohamed El-Erian, Jacob Frenkel, Rebeca Grynspan, Naoko Ishii, Michael Kremer, Kiran Mazumdar-Shaw, Luis Alberto Moreno, Lucrezia Reichlin, John-Arne Røttingen, Vera Songwe, Mark Suzman, Tidjane Thiam, Jean-Claude Trichet, Ngaire Woods, ZHU Min, Masood Ahmed, Guntram B. Wolff, Victor J. Dzau and Jeremy Farrar
Topic: Global Economics & Governance
Date: July 9, 2021

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Will COVID accelerate productivity growth?

February 10, 2021

The COVID-19 pandemic has prompted an increasing number of rich-country firms to reduce their reliance on global supply chains and invest more in robots at home. But it is probably too soon to tell whether this switch will increase productivity growth in advanced economies.
By:
Dalia Marin
Date: February 10, 2021
Topic: European Macroeconomics & Governance

Since the mid-2000s, productivity growth in advanced economies has been anaemic. Average annual productivity growth in the United States from 2005 to 2016 was just 1.3%, less than half of the 2.8% annual growth rate recorded between 1995 and 2004. Across other OECD countries, annual productivity growth declined from 2.3% in the 1995-2004 period to 1.1% between 2005 and 2015.
This sluggish growth appears paradoxical, given

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Eastern Germany’s New Growth Engine

October 7, 2020

Eastern Germany has suffered from three decades of deindustrialization since the collapse of communism, largely because of poor policy decisions. But by becoming an electric-vehicle powerhouse, the region can help to drive Europe’s green transition and secure its own future prosperity.
By:
Dalia Marin
Date: October 7, 2020
Topic: European Macroeconomics & Governance

MUNICH – This week, Germany celebrates the 30th anniversary of its reunification. After years of frustration and gloom, the long-depressed east of the country – the former German Democratic Republic (DDR) – is finally experiencing fresh hope owing, to large new investments in electric-vehicle (EV) manufacturing.
Eastern Germany is fast becoming the European center of future electric mobility. Volkswagen is

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Europe Needs a DARPA

February 14, 2020

Germany needs an industrial revival of the sort it experienced in the late nineteenth century, but this will be possible only if the state offers technological backing to German companies. The US government’s successful Defense Advanced Research Projects Agency should serve as a modelThe mood in Germany is bleak, and not just because of the country’s current economic slowdown. Long famed for its engineering know-how and high-quality industrial products, the German economy is now in danger of falling behind as software and data become increasingly crucial to future prosperity. And the recent news that US technology company Apple is now worth more than the entire DAX index of 30 leading German companies has no doubt deepened the gloom among business leaders and policymakers. If German firms

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The Case for Intelligent Industrial Policy

October 7, 2019

Although national industrial policies have a bad reputation, there is a strong case for government support to sectors that will increasingly rely on artificial intelligence. In this regard, the German government’s plan to promote production of electric-car batteries may accelerate an industrial renaissance in Europe. By: Dalia Marin Date: October 7, 2019 Topic: European Macroeconomics & Governance Earlier this year, German Economy Minister Peter Altmaier unveiled his “National Industrial Strategy 2030,” which aims to protect German firms against state-subsidized Chinese competitors. The strategy identifies key industrial sectors that will receive special government support, calls for establishing production of electric-car batteries in Europe, and advocates mergers to achieve

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Germany’s Divided Soul

September 13, 2019

Eastern Germans vote, think, and feel differently than western Germans do, as the results of the September 1 regional elections make clear. To help tackle the underlying economic causes of this divide, the federal government should introduce incentives to encourage foreign investment in the east of the country. By: Dalia Marin Date: September 13, 2019 Topic: European Macroeconomics & Governance MUNICH – This November, Germany will celebrate the 30th anniversary of the fall of the Berlin Wall. But the country is in a gloomy mood, and cheers will be few and far between – especially in the east.Today, more than one-third of eastern Germans describe themselves as second-class citizens. Contrary to their expectations at the time of German reunification in 1990, the east of the country

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What’s the matter with Austria?

August 9, 2016

Austrian firms invested heavily in Central and Eastern Europe. They offshored the parts of the value chain that required specialized skills and produced valuable research. This resulted in lowered growth in Austria.

Austria was once lauded as Germany’s more successful neighbor, one of Europe’s fastest-growing countries. But its economy has been sputtering since 2012, with GDP up last year by a meager 0.7%; only Greece and Finland performed more poorly. And Austria’s unemployment rate has soared, from 5% in 2010 to 10% today.
These developments have their origins in how Austria engaged with Central and Eastern Europe after the fall of communism. At first, Austria benefited from the European Union’s eastern enlargement. International trade soared, Austrian firms invested heavily in the region, and Austrian banks opened subsidiaries there, financing these countries’ modernization. All of this was good for business, and the Austrian economy grew rapidly.
But a hidden dynamic ultimately turned the tables on this success. Central and Eastern European countries had low per capita income, but were rich in skills. Austria, far wealthier, was not. In 1998, 16% of Central and Eastern Europeans (including Russia and Ukraine) had academic degrees, compared to just 7% of Austrians.

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Inequality in Germany – how it differs from the US

July 5, 2016

The pay gap between workers and CEOs in Germany is driven by a lack of managers. Income inequality could fall if there were more managers available for companies to hire. Firms should start hiring more CEOs who are women or from abroad.

The rise in income inequality over the last 20 years is a widely discussed problem in Germany at the moment. But there is little discussion on the drivers of this inequality, and why Germany is more equal in income than the US. There is one reason for this which is widely overlooked.
A major source of inequality in rich countries is the rising pay of the top 1% of income earners. In Germany the top 1% of income earners are CEOs in industrial firms, partners in law firms and in management consultancies, and some medical doctors. Why has the income of this group increased so much?
Where you work is decisive
A worker’s income does not depend so much on their education level, but on the firm they work for, as shown by two new studies on the US and Germany (Song et at 2015, Card et al 2013).  To increase your income you have to work for a firm which is very productive and which pays high wages. If you work for the same firm all your life, you can only marginally increase your income.
Wage inequality between firms, rather than within firms, explains the evolution of inequality.

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