IESE Insight - Economics

Globalization in troubled times

Altman, Steven; Ghemawat, Pankaj; Bastian, Phillip For years, the DHL Global Connectedness Index has been making the case that the world is not as globalized as we think. This is still true; yet surprisingly, in the age of Trump and Brexit, globalization has actually reached a new high.

Why Was the Sovereign Debt Crisis in Europe So Severe?

Acharya, Viral V.; Eisert, Tim; Eufinger, Christian; Hirsch, Christian Why did billions in investment, sales and so many jobs disappear during the European sovereign debt crisis? The Eurozone credit crunch deserves about half of the blame, which is a lot, according to research by IESE's Christian Eufinger and co-authors. They find two significant factors that helped cause the crunch and offer advice to free up the lending supply next time.

Why the Presence of Common Shareholders in Rival Companies Looms as a Threat

Azar, José; Schmalz, Martin; Tecu, Isabel "Common ownership" is a buzzword in academic and regulatory circles these days. José Azar's paper linking common ownership to higher airline ticket prices and other negative consequences is at the center of a new debate that could profoundly affect the investment fund industry as we know it.

New York, London and Paris Firmly Established as the Smartest Cities

Berrone, Pascual; Ricart, Joan Enric; Carrasco, Carlos; Duch, Ana Although New York leads the IESE Cities in Motion Index, Europe is the geographical area with the highest concentration of smart cities, with 12 representatives among the top 25. Where does your city stand in the ranking this year?

Why Wages Stagnate in Areas With Few Employers

Azar, José; Marinescu, Ioana; Steinbaum, Marshall We know monopolies negatively affect consumers. But what about workers? What happens when just a few employers hold most of the hiring power? New research shows that areas with high labor market concentration have lower wages. Here's where to look and why it's important.

Venture Capital and Ethnic Integration: Better Together

Samila, Sampsa; Sorenson, Olav Diversity is one thing, integration another, according to an empirical study of the impact of venture capital in the U.S. IESE's Sampsa Samila finds a one standard deviation increase in racial integration increased the positive outcomes associated with VC by at least 30 percent.

A Global Survival Guide

Rosenberg, Mike Brexit, Donald Trump, and the rise of protectionist -- even xenophobic -- political movements in other industrialized democracies raise questions about the state of globalization today. So how should we deal with the complexity of global strategy going forward?

Globalization Under Fire: How Should Leaders Respond?

Ghemawat, Pankaj Most business leaders have exaggerated perceptions of globalization, which can lead to costly strategy errors. This article debunks the myths and articulates recommendations grounded in two laws of globalization that will endure through the present turbulence.

Mixed Signals for Spanish Reforms

Vives, Xavier; Xifré, Ramon Political uncertainty is taking a toll on Spain's post-crisis reform agenda, which has been helping to modernize its economy. Experts consulted for the sixth edition of the Spanish Reforms Monitor shine a light on key economic policies, improvements and nagging doubts.

4 Years of Growth for Foreign Companies in Spain

Berrone, Pascual; Blázquez, María Luisa Spain remains a highly attractive destination for foreign investment. The annual Barometer of the Business Climate in Spain breaks down the latest statistics and shows that economic recovery is coupled with increased investment levels in the country.