GROWTH AND CRISIS IN THE Globalization and the Collapse of Trade Economics 1490 GROWTH AND CRISIS IN THE WORLD ECONOMY with Professor Dale W. Jorgenson Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Harvard University Department of Economics - Fall 2016
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Course Outline 1. Introduction. 2. U.S. Financial and Economic Crisis. 3. Asian Economic Miracles. 4. Europe and the U.S.: Convergence and Divergence. 5. Sustainability of Economic Growth. 6. Outlook for the World Economy.
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Introduction 1. Course Outline. 2. The World Economy since 1990: Growth and Crisis. 3. Comparing Economies: Production and Welfare. 4. The Sources of Growth: Asia, Europe, and the United States. 5. Globalization and the Collapse of Trade.
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade CAPITAL INPUT AND THE COST OF CAPITAL PERPETUAL INVENTORY METHOD where: K - capital stock I – investment - depreciation rate RENTAL PRICE OF CAPITAL INPUT where: c - price of capital input P - price of investment r - rate of return - asset-specific inflation rate
Globalization and the Collapse of Trade Globalization of Trade: Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Globalization of Trade: Steve Jobs Introduces the i-Phone The i-Phone Supply Chain All Roads Lead to China Shenzhen and Singapore, Taiwan, the U.S. Who Is Foxconn?
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Steve Jobs Introduces the i-Phone4
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade All Roads Lead to China
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade THE APPLE SUPPLY CHAIN The iPhone and the Software Are Designed by Apple. Components Are Produced Globally. The Final Assembly and Packaging Are Done in China. Most of the Value Is Added in the United States.
FOUR TRENDS IN THE FRAGMENTATION OF TRADE Lecture 05: September 15, 2016 Globalization and the Collapse of Trade FOUR TRENDS IN THE FRAGMENTATION OF TRADE Trend 1: International Fragmentation of Production is Expanding. Trend 2: More Value-Added from High-Skilled Labor and Capital. Trend 3: Enhanced Specialization in High-Skilled Labor in High-Income Countries. Trend 4: Enhanced Specialization in Capital in Emerging Economies.
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.1. Stylized representation of an internationally fragmented value chain
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Table 15.1 Value added shares in final output of automotives from Germany (%).
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.2 An accounting framework for global value chains
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.3 Schematic outline of a World Input-Output Table (WIOT)
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Table 15.2 Regional value added distribution of final output of manufactures by country-of-completion
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Table 15.2 Regional value added distribution of final output of manufactures by country-of-completion
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.4 GVC Incomes in Advanced and Emerging Countries, All Manufactures, 1995–2011
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.4 GVC Incomes in Advanced and Emerging Countries, All Manufactures, 1995–2011
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Figure 15.5 Regional Shares in World GVC Income, All Manufactures, 1995–2011 (%)
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade THE FRAGMENTATION OF TRADE Lecture 05: September 15, 2016 Globalization and the Collapse of Trade THE FRAGMENTATION OF TRADE The Domestic Share of GVC Income Has Declined and the Global Share Has Increased. Emerging Economies Have Increased Their Share of GVC Income, Relative to Advanced Economies. The Share of Capital in GVC Income Has Increased Relative to the Share of Labor. The Collapse of Trade in 2009, the Peak of the Crisis, Was Quickly Reversed in 2010.
Globalization and the Collapse of Trade The Great Trade Collapse Lecture 05: September 15, 2016 Globalization and the Collapse of Trade The Great Trade Collapse Historical Perspective Simultaneity of the Collapse in Different Countries Food, Oil, and Manufactures The Great Recession Composition of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade
Globalization and the Collapse of Trade Lecture 05: September 15, 2016 Globalization and the Collapse of Trade Globalization and the Collapse of Trade: Summary Trade Grows Faster than Output and Also Collapses Faster than Output The Explanation is Globalization of the Supply Chain The i-Phone Example: All Roads Lead to China Value Added Approach to Trade: Trade Flows and Competitiveness