Institut für Weltwirtschaft The Kiel Institute for World Economics Annual Report 2003 Contents I. The Institute in 2003: An Overview 3 II. Research and Advisory Activities 6 1. Main Areas of Research 6 2. President’s Department 7 3. Growth, Structural Change, and the International Division of Labor (Research Department I) 10 4. Environmental and Resource Economics (Research Department II) 21 5. Regional Economics (Research Department III) 27 6. Development Economics and Global Integration (Research Department IV) 35 7. Business Cycles (Research Department V) 43 8. Interdepartmental Research 53 9. Cooperation with Researchers and Research Organizations 53 10. Advisory Activities and Participation in Organizations 61 11. Commissioned Expert Reports and Research Projects 64 III. Documentation Services 72 1. The Library 72 2. The Economic Archives 75 IV. Teaching and Lecturing 77 1. Universities and Colleges 77 2. Advanced Studies Program 77 3. Guest Lectures and Seminars at Universities 79 V. Conferences 80 1. Conferences Organized by the Institute 80 2. External Conferences 84 VI. Publications 96 1. In-House Publications 96 2. Out-of-House Publications 103 VII. Appendix 114 1. Recipients of the Bernhard Harms Prize, the Bernhard Harms Medal, and the Bernhard Harms Prize for Young Economists 114 2. Staff (as of January 1, 2004) 116 3. Organization Chart 121 I. The Institute in 2003: An Overview The Kiel Institute for World Economics at the University of Kiel (IfW) is one of the world’s major centers for international economic policy research and documentation. The Institute’s main activities are economic research, economic policy consulting, and the documentation and provision of information about international economic relations. The Institute’s publications and services are addressed to academics in Germany and abroad as well as to decision-makers in both the public and private sector, and to those people in the general public inter- ested in domestic and international economic policy. The Institute’s Library is one of the world’s largest libraries for economics and social sciences, and the Institute’s Economic Archives have a comprehensive collection of newspaper articles. The Institute, founded by Bernhard Harms in 1914 as the Königliches Institut für Seeverkehr und Weltwirtschaft, has its roots in the Staatswissenschaftliches Seminar at the University of Kiel, which was established in 1899. In 1934, the Institute was given its present name, Institut für Weltwirtschaft. Today the Insti- tute is affiliated with the University of Kiel, but is still an independent institu- tion. It is a member of the Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz (WGL), which unites institutes and service providers that are of supra- regional importance. In the field of academic research, the Institute focuses on applied economic research. The Institute engages especially in the empirical analysis of current economic policy issues, in the identification and theoretical analysis of newly emerging economic phenomena, and in preemptive innovative economic thinking to find new solutions to economic policy problems. In 2003, numerous research projects were initiated, followed up, and completed. The resulting publications were presented at several international and national con- ferences and were published in various studies and contributions to renowned eco- nomic journals. Further, due to improved online access, the services offered by the Library, which also functions as the German National Library of Economics (ZBW) and is also a member of the WGL, and the Economic Archives were in- creasingly taken advantage of by both domestic and foreign users. Institutions which have a service function for research such as the ZBW are evaluated by the WGL Senate at least every seven years. At the end of November, the Senate adopted the evaluation given by a WGL group which visited the ZBW in May and recommended that the federal government and the state governments 4 The Institute in 2003: An Overview should continue to support the ZBW. The recommendation is based on the ap- praisal that in recent years the ZBW has developed along positive lines. The Institute attributes great importance to the advanced training of economists. It offers an international postgraduate program and encourages the regular ex- change of research results by hosting conferences, workshops, and guest lectures. In 2003, numerous research associates at the Institute were engaged in work on their doctoral dissertations, some on their Habilitation. Jörn Kleinert, Andrea Schertler, and Hubert Strauß, who had been a researcher in the Business Cycles Department until May 2002, were awarded doctorates at the Universität Kiel. Claudia M. Buch was appointed to tenured position at the University of Tübingen. Several economists from the Institute were awarded prizes for their outstanding endeavors. Holger Brauer was awarded the Fakultätspreis der Wirtschafts- und Sozialwissenschaftlichen Fakultät der Universität Kiel for his dissertation “The Real Exchange Rate and Prices of Traded Goods in OECD Countries,” and Jörn Kleinert was awarded the Erich-Schneider-Preis des Instituts für Volkswirtschafts- lehre der Universität Kiel for his dissertation “The Role of Multinational Enter- prises in Globalization.” Herbert Giersch was granted the Wissenschaftspreis of the City of Kiel. Horst Siebert was awarded the Verdienstorden of the Federal Republic of Germany by the German president. At the end of the year, the Institute had 272 employees, 57.7 percent of which were female and 26.8 percent of which were part-time employees. Of the total, 128 employees worked in the President’s Department, the Information, Editorial, and External Relations Department, and the five research departments. 117 worked in the Library, and 27 in the Administration. Of the 272 employees, 79 were academics and 193 were nonacademics, 4 of which were trainees. Several staffing changes took place in 2003. In April, Horst Siebert, president of the Institute, retired after 14 years at the Institute. His holistic approach to in- vestigating global economic processes and structures, and their driving forces, has shaped the public perception of the Institute and has given depth and breadth to the work conducted at the Institute. His analyses and recommendations have received a great deal of attention, not only at home, but in numerous other coun- tries as well. His textbooks on economics have been translated into numerous languages and have been used to teach students of economics in many countries. Hans-Georg Glaeßer, head of the Asia department of the Library since 1982, also retired. Matthias Lücke, head of the Industrialization and Foreign Trade Research Group, returned to the Institute after having been active for three years in an IMF department which analyzed development in countries of the former Soviet Union. The Institute in 2003: An Overview 5 In May 2003, a new Employee Council of the Institute was elected, the chairman of which is again Wolfgang Weskamp; his deputies are Hermann Dick and Christiane Krieger-Boden. In January 2003, Nora Grabsch was appointed Equal Opportunity for Women representative of the Institute; her deputy in 2003 was Abel Koch-Klose. As of 2004, Jana Daleske will be her new deputy. In September 2003, Bernhard Heitger died unexpectedly at the age of 54. He had been an economist in the Growth, Structural Change, and International Division of Labor Department since 1975, and had published internationally well-read papers about the relationship between growth and public activities. II. Research and Advisory Activities 1. Main Areas of Research The Institute’s central area of research is the international division of labor from a static and dynamic point of view. The Institute analyzes the sectoral and spatial allocation of goods, services, and factors of production. In particular, it analyzes the endowments of countries, including their environment, the changes in these endowments over time, and the international interdependencies between mone- tary and fiscal policies and between business cycles of various countries. In analyzing these phenomena, special emphasis is given to the consideration of institutional settings in national as well as international terms and to the incentive and political economy systems that are part of these settings. Research in 2003 concentrated on the following topics: Z worldwide locational competition and the effects of globalization on national goods and factor markets, Z global regulatory systems and their reforms, Z trends, causes, and consequences of the “new economy,” Z the integration of developing countries, newly industrializing countries, and transformation countries into the international division of labor and the multilateral trade order, Z the effects of economic reforms in developing countries on the distribution of income, Z the effects of international environmental and climate policies, Z the analysis of currency and financial markets and international capital flows, Z European integration, with special emphasis on its eastern enlargement and the monetary policy of the European Central Bank, Z international variation in educational performance and its determinants, Z reforms of labor markets and social security systems in industrialized coun- tries, especially in Germany, Z national and international business cycle analysis and forecasting, Z structural adjustment problems in eastern Germany, Z fiscal policy and subsidies in Germany, Z regional growth