Europe in the Global Economy

Univ.Prof. Dr. Michael Landesmann 

Course: Dimensions of Globalisation - Europe in the Global Economy 

The following topics will be covered in this course: 

1. The European Union in the Global Economy: 

1.1 Europe’s growth and productivity performance in a comparative perspective 

1.2 Europe as a regionalist entity in the global economy 

1.3 The challenge of emerging economies 

1.4 Diversity within the enlarged European Union 

2. Dynamics of international specialisation and the enlarged European Union 

2.1 North-North and South-North trade patterns 

2.2 Catching-up processes and ‘climbing up the ladder’ 

2.3 Regionalist vs. global production networks 

3. Migration, Labour Markets and Welfare Systems 

3.1 European vs. global migration flows 

3.2 The impact of migration 

3.3 Which effects does globalisation have on labour markets and welfare systems? 

3.4 Integration with institutional diversity? 

4. The Economic Crisis 

4.1 Causes and historical comparisons of the 2008-2013 economic crisis 

4.2 Euro Area Divergences 

4.3 The specific impact on the European Union 

4.4 Economic policy responses and governance issues 

5. Additional topics (depending on the number of students): 

5.1 Designs for the Future of the European Union 

5.2 Europe’s Foreign Economic Relations 

5.3 The Role of the Euro in the Global Economy 

Course objectives 

- To provide insights into Europe’s position in the global economy 

- To familiarize students with the consequences of the EU integration and the euro 

- To provide students with a grounding on economic approaches to regional and global 

economic integration 

- To gain an understanding of the causes and effects of the current financial and economic 

crisis and its impact upon the EU 

Grading 

Students will have to prepare a presentation on one of the (sub-)topics of the course, be an 

assigned discussant on another sub-topic and write these contributions up in the form a short 

paper (10-12 pages) and discussant’s comments (4-5 pages). 

1/8 

Masterseminar, WS 13/14

Readings 

Books and Reports which you might want to consult as general background reading: 

A. Sapir et al (2004): An Agenda for a Growing Europe -- The Sapir Report; Oxford University 

Press. http://www.euractiv.com/ndbtext/innovation/sapirreport.pdf 

B. Eichengreen, M. Landesmann and D. Stiefel (eds) (2008): The European Economy in an 

American Mirror; Routledge Publ., London and New York. 

Sapir A., ed. (2007): Fragmented Power: Europe and the Global Economy; Bruegel, Brussels. 

http://www.bruegel.org/uploads/tx_btbbreugel/Fragmented_Power_Andre_Sapir.pdf 

EMU@10: Successes and Challenges after 10 Years of Economic and Monetary Union; 

European Economy 2, 2008: European Commission, Economic and Financial Affairs. 

http://ec.europa.eu/economy_finance/emu10/emu10report_en.pdf 

The EU Economy Review; DG EcFin; latest issues. 

http://ec.europa.eu/economy_finance/publications/european_economy/index_en.htm 

European Competitiveness Reports; DG Enterprise, various years. 

http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=3908 

Progress Reports on Economic and Social Cohesion; DG Regio; various years. 

http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/interim6_en.htm 

European Bank for Reconstruction and Development (EBRD): Transition Reports; London. 

http://transitionreport.co.uk/TRO/a/archives 

Suggested readings by topic: 

Topic 1.1: Slanina Ana 05.11.2013 Diskutant: Küsel Stephan 

B. van Ark, M. O’Mahony and M. Timmer (2008): “The Productivity Gap between Europe and 

the United States: Trends and Cause,” Journal of Economic Perspectives, vol. 22(1), pp. 25-44. 

K. Aiginger and M. Landesmann (2008): Longer-Term Competitiveness of the Wider Europe; 

in: B. Eichengreen, M. Landesmann and D. Stiefel (eds): The European Economy in an 

American Mirror; Routledge Publ., London and New York; pp. 62-103. 

European Competitiveness Report (2007): Ch.1: “Key facts about competitiveness 

developments: growth, employment and productivity,” pp.23-44. 

O. Blanchard (2004): “The Economic Future of Europe,” Journal of Economic Perspectives, 

18(4), pp. 3-26. 

2/8 


Optional: 

Matilde Mas & Robert Stehrer, Introduction, in: Industrial Productivity in Europe, Growth and 

Crisis, 2012 

Matilde Mas, Ch. 1, Productivity in the advanced countries: from expansion to crisis in: 

Industrial Productivity in Europe, Growth and Crisis, 2012 

Bart von Ark, Matilde Mas & Marcel P. Timmer, Ch. 3, Europe’s productivity performance in 

comparative perspective: trends, causes and recent developments, in: Industrial Productivity in 

Europe, Growth and Crisis, 2012 

Topic 1.2: Schacherbauer Lisa 05.11.2013 Diskutant: Kramar Michael 

EU Performance in the Global Economy, European Commission, DG Trade, 2008. 

http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141196.pdf 

Sapir A.: Europe in the Global Economy; Forward and Ch. 1 in: Sapir A., ed. (2007): 

Fragmented Power: Europe and the Global Economy; Bruegel, Brussels, pp. 1-20. 


Topic 1.3: Pfau Kerstin Anna 12.11.2013 Diskutantin: Wallner Lisa 

EU and BRICs: “Challenges and opportunities for European competitiveness,” Ch. 2, European 

Competitiveness Report 2009; DG Enterprise, Brussels. 

http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=3908 

G.B. Navaretti, M. Bugatelli, G. Ottaviano, F. Schivardi (2010): The Global Operations of 

European Firms: Bruegel Policy Brief, Brussels. 

http://www.bancaditalia.it/studiricerche/convegni/atti/efige/BarbaNavaretti_Matteo%20Bugamel 

li_Ottaviano_Schivardi.pdf 

Introduction and Overview, Ch. 1, in: The Rise of Asia, Trade and Investment in Global 

Perspective, Routledge/Taylor & Francis Publ., London and New York 

Topic 1.4: Schmeiduch Christoph 12.11.2013 Diskutantin: Kloiber Melanie 

“Five Years of an enlarged EU, Economic achievements and challenges,” European Economy 1, 

2009; pp. 11-54. 

http://ec.europa.eu/economy_finance/publications/publication_summary14081_en.htm 

Ch. 1 “Context and Stylized Facts,” and Ch. 2 “Redirecting the growth model,” in: Whither 

Growth in Central and Eastern Europe? Policy Lessons for an Integrated Europe; Policy Report 

written by the Bruegel-wiiw Expert Group on Central-Eastern Europe; Brussels/Vienna, 

September 2010. 

‘Accession Countries: How to balance Real and Nominal Convergence? Challenges for 

Monetary and Exchange Rate Policy’, Part IV in the volume: G. Tumpel-Gugerell, P. 

3/8 


Mooslechner (2003): Economic Convergence and Divergence in Europe: Growth and Regional 

Development in an Enlarged European Union, Edward Elgar Publ.; pp. 233-287. 

Topic 2.1: Roider Matthias 19.11.2013 Diskutant: Klingersberger Raphael 

‘Goods and Services in an Enlarged EU’; Ch.III in: Five Years of an enlarged EU, Economic 

achievements and challenges; European Economy 1, 2009; pp. 55-78. 

http://ec.europa.eu/enlargement/5years/documents/impact/publication14078_en.pdf 

Landesmann, M. (2010): “Patterns of Trade and Outsourcing in an Era of Catching-Up: an Asia- 

Europe Comparison,” Ch. 6 in: P.C. Athukorala, ed.: The Rise of Asia, Trade and Investment in 

Global Perspective; Routledge/Taylor&Francis Publ., London and New York. 

Topic 2.2: Steglich Christiane 19.11.2013 Diskutantin: Baba Alexandra 

J. Damijan and M. Rojec (2004): Foreign Direct Investment and the Catching-up Process in 

New EU Member States: Is There a Flying Geese Pattern?; The Vienna Institute for 

International Economic Studies (WIIW), Research Report, no 310, Vienna. 

‘Capital Markets in an enlarged EU’; Ch.IV in: Five Years of an enlarged EU, Economic 

achievements and challenges; European Economy 1, 2009; pp. 85-115. 

Topic 2.3: Nzeadibe Franca Nwabure 26.11.2013 

Diskutant: Schmeiduch Christoph 

P.C. Athukorala, ed.: The Rise of Asia, Trade and Investment in Global Perspective; Ch. 2 + 3, 

Routledge/Taylor&Francis Publ., London and New York. 

H. Kierzkowski (2009): ‘New trade in New Europe’, Ch.11 in: E. Nowotny, P. Mooslechner, D. 

Ritzberger-Gruenwald (2009): The Integration of European Labour Markets; Edward Elgar 

Publ; pp. 219-235. 

Topic 3.1: Reitmeier Heidemarie 26.11.2013 

Diskutantin: Schacherbauer Lisa 

Holzmann, R. and R. Muenz (2004): Challenges and Opportunities of International Migration 

for the EU, Its Member States, Neighbouring Countries and Regions: A Policy Note; Institute for 

Futures Studies; Stockholm. 

R. Munz (2008), “Migration, Labour Markets and Integration of Migrants: An Overview for 

Europe with a Comparison to the US,”Ch.7 in: B. Eichengreen, M. Landesmann, and D. Stiefel, 

(eds.): The European Economy in an American Mirror; Routledge Publ. 

4/8 


G. Peri (2008): “International Migrations – Some comparisons and lessons for the European 

Union”, Ch. 8 in: B. Eichengreen, M. Landesmann, and D. Stiefel, (eds.): The European 

Economy in an American Mirror; Routledge Publ., pp. 182-213. 

Topic 3.2: Lacmanovic Mihaela 03.12.2013 

Diskutant: Roider Matthias 

H. Bruecker (2009): “Labour mobility in the enlarged EU: causes, constraints and potential,” Ch. 

5 in: E. Nowotny, P. Mooslechner, D. Ritzberger-Gruenwald: The Integration of European 

Labour Markets; Edward Elgar Publ., pp.67-109. 

or alternatively: 

Forecasting potential migration from the new member states into the EU-15 * review of 

literature, evaluation of forecasting methods and forecast results 

Brücker, Herbert; Damelang, Andreas; Wolf, Katja (2009): Forecasting potential migration from 

the new member states into the EU-15 * review of literature, evaluation of forecasting methods 

and forecast results. Nürnberg, 35 S. 

and 

Labour mobility within the EU in the context of enlargement and the functioning of the 

transitional arrangements * literature review 

Boeri, Tito; Brücker, Herbert; Iara, Anna; Huber, Peter; Kaczmarczyk, Pavel; Upward, Richard; 

Vidovic, Hermine (2009): Labour mobility within the EU in the context of enlargement and the 

functioning of the transitional arrangements * literature review. Nürnberg u.a., 17 S. 

H. Bruecker and J. Von Weizsaecker (2007): Ch 8 in: A. Sapir: Fragmented Power: Europe and 

the Global Economy; Bruegel, Brussels; pp. 226-265. 


P. Huber, M. Landesmann, C. Robinson and R. Stehrer, “Migrants’ Skills and Productivity: A 

European Perspective,” National Institute Economic Review, July 2010. 

Topic 3.3: 

nicht zugeteilt 

T. Boeri, P. Garibaldi (2009): “Beyond Eurosclerosis.” Economic Policy, 59, July; pp. 409-461. 

T. Boeri (2008): Convergence via two-tier reforms and growthless job creation in Europe; Ch. 5 

in: B. Eichengreen, M. Landesmann and D. Stiefel (eds) (2008): The European Economy in an 

American Mirror; Routledge Publ., London and New York; pp. 117-127. 

Nickell, S. (1997), “Unemployment and labor market rigidities: Europe vs. North America,” 

Journal of Economic Perspectives, 11(3), pp. 55-74. 

5/8 


Topic 3.4: Baba Alexandra 03.12.2013 Diskutantin: Pfau Kerstin Anna 

G. Bertola, J.F. Jimeno, R. Marimon and C. Pissarides, “EU Welfare Systems and Labor 

Markets: Diverse in the Past, Integrated in the Future?” in: G. Bertola, T. Boeri and G. Nicoletti 

(edds): Welfare and Employment in a United Europe; MIT Press 2001; pp. 23-143; see also the 

“Introduction” by T. Boeri, pp. 1-20. 

R.J. Gordon (2008): ‘Comparing welfare in Europe and the United States’; in: B. Eichengreen, 

M. Landesmann and D. Stiefel (eds.): The European Economy in an American Mirror; Riutledge 

Publ., London and New York; pp. 15-40. 

Topic 4.1: Klingersberger Raphael 10.12.2013 

Diskutantin: Nzeadibe Franca Nwabure 

C. Wyplosz (2006): “European Monetary Union: the dark sides of a major success,” Economic 

Policy; 46; April; pp.207-261. 

“Economic Crisis in Europe: Causes, Consequences and Responses,” European Economy 7, 

2009; DG Economic and Financial Affairs, Brussels. 

http://ec.europa.eu/economy_finance/publications/publication15887_en.pdf 

J. Pisani-Ferry and A. Sapir (2009), “Euro Area: Ready for the Storm?” in: J. Pisani-Ferry and 

A.S. Posen, eds: The Euro at Ten: the Next Global Currency? Peterson Institute for International 

Economics and Bruegel; Washington; pp. 69-83. 

http://www.bruegel.org/uploads/tx_btbbreugel/Euro_at_Ten_June_4.pdf 

On the current economic crisis and the European Union, see more generally the discussion on 

the Vox cepr Web-Site: http://www.voxeu.org. An overview is given by Richard Baldwin 

(2010): A re-cap of Vox columns on the Eurozone crisis; see voxeu Website and read also the 

papers mentioned in this overview. http://www.voxeu.org 

Topic 4.2 Euro-area divergences Kloiber Melanie 10.12.2013 

Diskutantin: Lacmanovic Mihaela 

European Commission (2012): ‘Scoreboard for the Surveillance of Macroeconomic Imbalances’; 

Occasional Papers 92; Directorate General for Economic and Financial Affairs; Brussels. 

Darvas, Z. (2012): Intra-Euro Rebalancing is inevitable, but insufficient’; BRUEGEL Policy 

Contribution; issue 2012/15; Brussels. 

Topic 4.3: Wallner Lisa 07.01.2013 Diskutantin: Steglich Christiane 

P. De Grauwe (2009): “The Fragility of the Eurozone’s Institutions,” Open Economics Review, 

212 (1); pp. 167-174. 

Jean Pisani-Ferry (2010): Euro-Area Governance: What Went Wrong? How to Repair it? 

Bruegel Policy Contribution, June 2010, Brussels. 

http://www.voxeu.org/index.php?q=node/5172 

6/8 


Topic 4.4: Kramar Michael 07.01.2013 Diskutantin: Slanina Ana 

Zsolt Darvas (2010): Fiscal federalism in Crisis: Lessons for Europe from the US; Bruegel 

Policy Contribution; July 2010, Bruegel, Brussels. 

Surveillance of Intra-Euro-Area Competitiveness and Imbalances; European Economy, DG 

EcFin; 1/2010. 

http://ec.europa.eu/economy_finance/publications/european_economy/2010/pdf/ee-2010- 

1_en.pdf 

Completing the Eurozone Rescue: What More needs to be Done? edited by Richard Baldwin 

and Daniel Gros; A VoxEU.org Publication, Centre of Economic Policy research, London, 2010. 

http://www.voxeu.org/index.php?q=node/5194 

European Commission (2010): Reinforcing economic policy coordination; Communication from 

the Commission to the European Parliament, the European Council, the Council, the European 

Central Bank, the Economic and Social Committee and the Committee of the Regions; Brussels, 

12/5/2010. http://ec.europa.eu/economy_finance/articles/euro/documents/2010-05-12- 

com(2010)250_final.pdf 

Topic 5.1: 

nicht zugeteilt 

Europe 2020 – A European Strategy for smart, sustainable and inclusive growth, 

Communication from the Commission; Brussels, March 2010. 

http://ec.europa.eu/eu2020/index_en.htm 

Project Europe 2030 – Challenges and Opportunities; A Report to the European Council by the 

Reflection Group on the Future of the EU; under the chairmanship of Felipe Gonzales, May 

2010. http://www.reflectiongroup.eu/wp-content/uploads/2010/05/reflection_en_web.pdf 

Topic 5.2: Kenjaev Sherzod 14.01.2014 Diskutantin: Reitmeier Heidemarie 

Benoit Coeure and Jean Pisani-Ferry (2007): The governance of the European Union’s 

international economic relations: how many voices? Ch. 2 in: Sapir A.: Europe in the Global 

Economy; Forward and Ch. 1 in: Sapir A., ed. (2007): Fragmented Power: Europe and the 

Global Economy; Bruegel, Brussels, pp. 21-60. 


A. Ahearne and B. Eichengreen (2007): External monetary and financial policy: a review and 

proposal; Ch. 5 in: Sapir A., ed. (2007): Fragmented Power: Europe and the Global Economy; 

Bruegel, Brussels, pp. 128-155. 


M. Becht and L. Correia da Silva (2007): External financial markets policy: Europe as global 

regulator?; Ch. 7 in: Sapir A., ed. (2007): Fragmented Power: Europe and the Global Economy; 

+^^http://www.bruegel.org/uploads/tx_btbbreugel/Fragmented_Power_Andre_Sapir.pdf 

7/8 


Topic 5.3: Küsel Stephan 14.01.2014 Diskutant: Kenjaev Sherzod 

A.S. Posen (2009): “Geopolitical Limits to the Euro’s Global Role,”in J. Pisani-Ferry and A.S. 

Posen, eds: The Euro at Ten: the Next Global Currency? Peterson Institute for International 

Economics and Bruegel; Washington; pp. 85-102. 

‘Trends in the international role of the Euro’ and ‘Managing the euro-area’s growing 

international role’; pp.117-132 and pp.218-231 in: EMU@10: Successes and Challenges after 10 

Years of Economic and Monetary Union; European Economy 2, 2008: European Commission, 

Economic and Financial Affairs. 

http://ec.europa.eu/economy_finance/emu10/emu10report_en.pdf 

8/8

Europe in the Global Economy

Create successful ePaper yourself

Delete template?

Save as template?