The economic integration over the last decades has resulted in strong interdependence of economic systems. As a consequence, the importance of spillover effects between individual elements of the economic system (firms, industries, regions, countries) is increasing in importance. Modeling and estimating such spillover effects in the fields of international economics (cross-border demand effects, technology transfer, third-country effects of FDI, contagion of economic crisis) by using and extending spatial econometric techniques is one of the research focuses of the institute.
A further research area of the institute focuses on the determinants and growth effects of foreign direct investment (FDI). Since the mid 1990s, EU-15`s FDI to Eastern Europe and developing regions has increased impressively. Given the multiplicity of FDI determinants proposed by theory, the statistical robustness of these determinants is investigated in a Bayesian framework to learn which factors govern indeed EU-15´s FDI. A similar approach is used to investigate the relevance of FDI as a growth determinant.
For a list of publications and projects of the Institute for International Economics please use WU's research database WU-FIDES and you can find more detailed information about the research interrests on the respective websites of the instiute staff.