The CEPII Newsletter       
November 2018        



The French edition is slightly different as it also includes material available in French only  

Europe Monnaie & Finance Trade & Globalization Migrations Economic Policy Emerging Economies Competitivness & Growth Environment & Natural Ressources
  Focus

Fixing the euro needs to go beyond economics

The agenda to fix the euro is hampered by conflicting national interests. Creditor countries demand fiscal house cleaning and debtor countries ask for risk sharing. There is currently a political deadlock about how the adjustment burden should be distributed, perpetuating a state of vulnerability that is not in the collective interest of euro area members. This column, part of the Vox debate on euro area reform, argues that overcoming this coordination failure requires reforming the political governance of the EU, rather than just its economic governance. This post has been first published on VoxEU.
Anne-Laure Delatte
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  Edito




Let their people come: Migrants as drivers of knowledge diffusion

Migration, particularly skilled migration, is a driver of knowledge diffusion and it can induce productivity shifts as measured by new exports. Based on our work, there are many reasons to believe that migration may actually be a highly effective driver of knowledge diffusion across borders. This is, if anything, the most important conclusion of our study. Therefore, this study carries important policy implications. Since knowhow and technology are the most important determinant of productivity growth, policies incentivising temporary migration, for example, may be a highly efficient way for firms and countries to access new knowledge. Further investigation of the type of migration policies that would be most effective for this purpose is, in fact, a crucial part of our ongoing research agenda.
Dany Bahar & Hillel Rapoport

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  Facts & Figures





The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese and cream industry. We use firm level data from the French custom and an original dataset of firms and products concerned by Protected Designations of Origin (PDO).  Our estimations show that PDO labeling allows firms to increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO label as much as EU consumers.
Sabine Duvaleix-Treguer, Charlotte Emlinger, Carl Gaigné & Karine Latouche

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ISSN: 1255-7072
Editorial Director : Sébastien Jean
Managing Editor : Dominique Pianelli