Research

Description:

Recently, foreign trade policy has been overshadowed by other issues, particularly the impacts on the environment, social relationships, and human rights. This is especially the case as autocracies become increasingly integrated into the division of labor. Consequently, adherence to Western values and sustainability goals is becoming more important.

This research focus examines the conflicts between short-term welfare maximization and the values described here. Several articles on this topic have already been published. A research proposal, formulated in collaboration with Peter Draper and Naoise McDonagh from IIT Adelaide and Matthias Menter, investigates how different countries handle this problem.

Project staff

• Univ.-Prof. Dr. Andreas Freytag

Description:

In recent years private operators of security services have been gaining more and more importance, in Germany and internationally. Roughly speaking this is caused by an increasing demand as well as by new technical and organizational means. Such a development can be considered as functional against the background of new and diverse security challenges in Germany and a productive supplement to the "classical" public task of providing civil security. However, entering such a new territory requires a good analysis of the actual economic good "security" not least because these services are related to sensitive societal questions. On the basis of such a profound analysis this project intends to evaluate the development of the security market and to find appropriate institutional answers: to bring out the potential productivity of private security markets, and to avoid potential risk on the other hand. It is observable that trends of a larger involvement of the private sector are more advanced in other countries. Thus the main task of the Jena group is to analyze security markets namely of the United Kingdom, the United States, and Sweden. The research goal is to identify and to evaluate the impact of social, cultural, and institutional factors on the demand for security. For that purpose a qualitative concept of causality should be created as well an according quantitative (econometric) model.

Project staff

• Prof. Dr. Andreas Freytag
• Dr. Wolfgang Bretschneider

Partners:

• Association of German Security Industry (BDSW)External link
• Brandenburg Institute for Society and Security (BIGS,External link CoordinatorExternal link)External link
• Fraunhofer Institute for Open Communication Systems (Fraunhofer FOKUS)External link
• University of PotsdamExternal link
• Viadrina Compliance Centre (VCC)External link

Sponsor:

Federal Ministry of Education and ResearchExternal link

Duration of the project:

October 2016 – August 2019

For more information please click here.External link 

Description:

In addition to commentaries on current monetary policy, a book titled Central Bank Independence Reconsidered is a central focus. Together with two colleagues from Stellenbosch University, Stan du Plessis and Dawie van Lill, Andreas Freytag is writing about the challenges that central banks have faced since the global financial and economic crisis. The book is scheduled to be published by Cambridge University Press at the end of 2021.

Project staff:

• Andreas Freytag
• Henri Bisch-Chandaroff

Partners:

• Stan du Plessis
• Dawie van Lill

Description:

For several years, the department has been working closely with Peter Draper (IIT Adelaide). This collaboration has created and strengthened various networks. Draper and Freytag, along with several colleagues from around the world, have formed the research network G20TIRN (www.g20-tirn.orgExternal link), which deals with the G20 process in a sustainable manner. Additionally, the department (Andreas Freytag, Miriam Kautz) has been contributing to the Think20 (www.t20italy.orgExternal link) in drafting policy briefs for years. Another notable initiative is the network for subsidy analysis, which was founded in collaboration with Draper.

Project staff:

• Andreas Freytag
• Moritz Wolf

Partners:

• Peter Draper

Description:

The G7 comprises seven of the world's largest and most influential economies. While its decisions are not legally binding, the annual summit meetings carry significant symbolic weight. However, the role of the G7 is frequently debated, particularly in recent times due to the systemic competition in development policy with China and the relationship with Russia. Consequently, questions about the legitimacy of the G7 arise, especially concerning development policy in Africa.

To address this question, a current project is examining the effectiveness of the G7 concerning economic development and prosperity in Africa. This involves assessing various G7 initiatives, as well as investments, development aid, debt relief, and trade flows between member countries and Africa. The goal is to make statements about the influence of these factors in the past and derive recommendations for the future on how the G7 can improve its impact in Africa.

Additionally, there is a book project by Andreas Freytag and Peter Draper to mark the 50th anniversary of the G7 in 2025. This book will delve into the group's history, take positions on various topics and relationships with international actors, and discuss the future of the G7 in terms of global governance.

Project staff:

• Andreas Freytag
• Moritz Wolf

Partners:

• Peter Draper

Description:

Economic development and climate change are two of the most pressing challenges of our time. Policymakers have been grappling with development cooperation issues for decades. However, actual development cooperation primarily focuses on financing individual projects linked to specific, often isolated, goals. Empirical evidence indicates that the effectiveness of these efforts has often been limited. As a result, many developing countries face serious institutional challenges, particularly governance issues, which also hinder their ability to address current challenges like climate change.

This is especially relevant as current trends in international climate cooperation follow a similar approach. Countries pursue national strategies to combat climate change, focusing on individual policy measures and often overlooking the bigger picture. Developing countries often lack the resources to combat climate change, despite being disproportionately affected. If inefficiencies observed in development cooperation also occur in international climate cooperation, political efforts may prove insufficient to achieve set goals, resulting in significant costs for countries worldwide.

Therefore, we propose a global emissions trading system that addresses both policy areas simultaneously. To compensate for historical emission disparities, developing countries could be allocated free emission rights. These countries could use these rights to create incentives for domestic development or sell them for financial gains, which can then be reinvested. This instrument can ensure economic efficiency, ecological effectiveness, and social sustainability. The political feasibility of the ETS as a primarily climate instrument can be increased by linking it with development policy.

Project staff:

• Andreas Freytag

Partners:

• Matthias Menter
• Jan Hauke Montag

Description:

Climate change is one of the central issues of our time, affecting countries around the globe. To address this global challenge effectively, it requires a suitable and coordinated approach that adequately considers the diverse interests between developed Western countries and developing nations. Therefore, a key question is how cooperation between actors from these two groups of countries can be strengthened, enabling them to collaboratively search for the best solutions. It is crucial to signal that climate protection is associated with entrepreneurial opportunities. Only when countries with a significant share of global emissions engage can climate protection efforts succeed.

Project staff:

• Andreas Freytag

Partners:

• Philipp Lamprecht (ECIPE)
• Mathias Menter

Description:

The study has the goal of assess the regional significance of the MV Werften by analyzing there intersectoral linkages in the regional economy. To this end, the regional linkages of the MV Werften with Mecklenburg-Vorpommern, East Germany and overall Germany is analyzed. For the analysis of regional economic importance for Mecklenburg-Vorpommern, the counties, which locate the shipyards will also be considered. These counties are Nordwestmecklenburg (Wismar), Vorpommern-Rügen (Stralsund) and Rostock and the independent Hanseatic City of Rostock. To evaluate the regional economic importance of MV Werften the focus are effects on the labor market as well as effects on the production capacity, output and value added in the region.

Project staff:

• Univ.-Prof. Dr. Andreas Freytag
• Christoph Dörffel, M.Sc.
• Dipl.-Volksw. Susanne Fricke
• Dr. Wolfgang Bretschneider

Sponsor

• MV Werften Wismar GmbH

Duration

June – Dec. 2017

Description:

The project deals with current developments in international trade and their economic impact and comprises specifically issues concerning global (and regional) value chains (GVC, resp. RVCs) and their implications for developing and emerging economies with a specific focus on Sub-Saharan African (SSA) countries. Issues which are addressed comprise both the preconditions and challenges for developing countries for GVC integration (see "The potential of ACP countries to participate in Global and Regional Value Chains: A Mapping of Issues and Challenges"External link, with Andreas Freytag and Peter Draper) and implications and new challenges arising from mega-regional trade agreements (see "TTIP: Chancen für Europa, Stimulus für die Welt?"External link, with Andreas Freytag and Peter Draper). In ongoing studies the role of public and private standards in GVCs is scrutinized ("Compliance with appropriate international standards and market access to the European Union: A case study of sub-Saharan countries", with Geoffrey Chapman) and the impact of trade policies on spatial price transmission of maize, rice and wheat in Cameroon, Kenya and Tanzania is assessed ("Spatial price transmission at different levels of the agricultural value chain - evidence from selected sub-Saharan African countries", with Lodovico Muratori). Within the study on the impact of standards in GVCs we analyze the impact of public EU standards on exports from Sub-Saharan-African countries to the EU and the question what determines market access for SSA countries. The market access for SSA countries to the EU is of developmental significance (important determinant of income per capita and average wages) what amplifies the relevance of this research question. Our study on the impact of trade policies on spatial price transmission has its focus on the impact of both tariff and non-tariff barriers on the spatial price transmission of the analyzed products. In particular, the research question is whether trade policies were able to insulate the chosen countries from the price shocks on the international markets during the food price spike crisis.

Project staff

• Prof. Andreas Freytag
• Susanne Fricke
• Lodovico Muratori
• Geoffrey Chapman

Partners

• South African Institute of International Affairs (SAIIA)External link (Peter DraperExternal link), Pretoria
• Tutwa ConsultingExternal link, Pretoria, Peter DraperExternal link
• African Economic Research Consortium (AERC)External link, Nairobi
• ACP MTS ProgrammeExternal link, Brussels
• International Centre for Trade and Sustainable Development (ICTSD)External link, Geneva, Harsha Singh

Description:

Das Ziel der Studie besteht darin, die Merkmale des namibischen Wohnungsmarktes zu bewerten und die Möglichkeit zu untersuchen, in den nächsten fünf Jahren im Rahmen einer landesweiten Kampagne zur Armutsbekämpfung zwischen 20.000 und 200.000 erschwingliche Wohnungen in Namibia zu bauen.

Die Endziele des Projekts umfassen die Einrichtung einer Sonderwirtschaftszone in Okahandja (Region Otjozondjupa), in der Einrichtungen zur Herstellung innovativer Ziegel aus Sand und Polyesterharz angesiedelt werden. Darüber hinaus zielt das Projekt darauf ab, namibische Arbeitnehmer in der Bedienung von Ziegelproduktionsmaschinen und Baufähigkeiten wie Elektroinstallationen und Sanitärtechnik in spezialisierten Ausbildungszentren zu schulen.

Darüber hinaus untersucht das Projekt die Möglichkeiten zur Elektrifizierung neu gebauter Gemeinden mit Hilfe erneuerbarer Energiequellen. Schließlich werden im Rahmen der Studie Chancen zur Reduzierung der Arbeitslosigkeit und zur Schaffung neuer Einkommensquellen für namibische Familien als Nebeneffekt des Wohnungsbauprojekts untersucht.

Project staff

• Prof. Dr. Andreas Freytag
• Morten Müller
• Dejan Dragutinović

Partner:

• Ambassady of NamibiExternal link
• Respective infrastructure ministries of Thuringia and Namibia
• PolyCareExternal link Research Technology GmbH & Co. KG aus Gehlberg TH
• Faculty of Civil EngineeringExternal link, Bauhaus Universität Weimar

Description:

Social Scientist from various fields search for the understanding of tax evasion. The starting question was: why people evade taxes. This was answered with a rational choice model taking into account the possible gains from evasion together with the detection rate and possible penalties. Later research questioned that view by arguing that with the given auditing rate in our modern societies tax evasion has to be much higher if it is a pure rational choice. So they turned the question into: why people pay their taxes in the first place and put attention to the concept of tax morale. One part of this project is to bring both traditions together by including them in a comprehensive three step model of explanation as a modification of earlier approaches. In this model the three steps are: willingness, opportunity and decision. The last step covers the traditional rational choice view. The willingness step takes into account the idea of tax morale. A big part of this project is to go deeper into the evolution of the willingness to evade. It could be shown that this has something to do with perceived fairness. Three lines of argumentation are especially important. First, people are more likely to be willing to evade taxes if the perceive the tax code as unfair. Second, if people think that tax evasion is widespread they have a higher disposition to do the same. And third, if people feel treated unfair by the government in other ways than the tax code their willingness is increased too. Examples for that are limitations to the business opportunities or economic freedom and repressive system of controls.

Project staff:

• Sebastian Spiegel

Partners:

• Prof. Dr. F. Schneider
• Dr. Alexandra Kloss

Project duration

October 2013 – October 2017

Description:

The field of entrepreneurship development in Sub Saharan Africa has been increasingly caught attention in academic as well as policy making. There is evidence that stronger private sector involvement can be the competitive edge and bring about significant and positive change in fighting unemployment. Small and Medium Enterprises (SMEs) as the main driver of job provision should be given more opportunities and initiatives to develop in number and quality. The promotion of entrepreneurship is at the heart of the Social Market Economy model in Germany. Therefore, we want to test application of certain elements of the German economic model with adjustments to the conditions in African countries and ask whether or not they could favour the development of SMEs and thus improve economic efficiency and lay the ground for institutional changes. The research consists of paper-based questionnaires conducted in spring 2016 in two countries, Ghana and Kenya in West and East Africa respectively, to find out how formal and informal institutions affect the performance of business owners, thus paving the way for policy makers to enhance the quality and quantity of SMEs in Africa.

Project staff:

• Luong Thanh Tran

Partner:

• Konrad-Adenauer-StiftungExternal link, Graduiertenprogramm "Soziale Marktwirtschaft"

Final date:

Nov. 2018

Description:

Governments usually promote trade and globalization as key for development, especially for developing- and under-developed countries. However, previous studies showed that trade would be either better or worsen human life, depending on regions and nations. The question "How trade affects human life?" was an unclear and debatable question for a long time, since theoretical and empirical evidences provided mix results, uncertainty for under-developing area and only partly image in world economy as a whole. This study aims to identify and provide intensive analyses how trade changes life in all aspects in 21st century; not only concerning economic aspects, but also society, politics, environment and psychology. We focus on Sub-Sahara African - the poorest region in the world, with 233 million people suffering from hunger. Base on the fundamental idea of Maslow's hierarchy of needs and The Stiglitz-Sen-Fitoussi dimensions, using advanced econometric instruments, the project will determine impacts of trade liberalization and globalization on essential fields of human life such as income, income distribution, food security, employment, health, environment, human rights. It furthermore suggest solutions for human development. Further, by working intensively on institutional factors, the project will provide more empirical evidences to explain how instituions influence devopment of nations.

Project staff:

• Doan Quang Huy

Partner:

DAADExternal link

Description:

Most countries in Africa are endowed with abundant natural resources; Southern Africa is no exception. However, ineffective governance and poor management have caused the abundance of resources being a curse. The Sustainable Development Goals (SDGs) are difficult to meet against this background. Amongst the notable resources that serve as sources of foreign exchange earnings for most countries in Southern Africa is tobacco, which is grown in almost all countries in this region. The stream of income from the production and trade of this commodity has helped to cushion the paucity of income at the disposal of governance, and contributed to an improved level of development and livelihood sustainability for the citizens.
Recent calls for the ban on tobacco production and trade by the World Health Organization, through its Framework Convention on Tobacco Control (FCTC) has triggered much directed attention to the question, how the attainment of the 17 SDGs can be achieved without tobacco.
In this project, therefore, we are exploring the role of tobacco production and trade in cushioning the income stream of these countries and the sector's potential contribution to the attainment of the SDGs. The countries in focus are: Malawi, Mozambique, Tanzania, Zambia and Zimbabwe. The project proceeds in three steps:

1. A review of the SDGs, the metrics, the state of the respective countries in the attainment and the contribution of Tobacco Companies towards attaining these goals.
2. The project constructs the Input-Output tables by aggregating the sectors into three (Agriculture, Manufacturing and Services) to determine the interflow and interdependency amongst the sectors. The goal of the Input-Output analysis is to ascertain the role of agriculture in the economy its flows to other sectors.
3. It shows the bilateral trade of the five countries in tobacco production and trade revealing their competitive advantage and the need to sustain the production and trade of commodity. We are deeply interested in the question of whether and to what extent the tobacco industry can contribute to meeting the SDGs in these countries.

Project staff

• Prof. Andreas Freytag
• Kehinde Medase

Partner:

• Tutwa Consulting GroupExternal link

Description:

This dissertation project aims to contribute to the understanding of factors determining the success of international agreements. How can international cooperation and compliance with international agreements in particular be achieved? Based on the research, concrete proposals for the optimization of international agreements shall be derived. So far, the research focus lies on determinants of compliance with International Environmental Agreements (IEA) and is approached from two perspectives - an international and national perspective. First, within a literature review ("What drives compliance with International Environmental Agreements? A political economy analysis of international and national determinants"), reputational effects and IEA design (including transparency and inducement instruments) on the international level, and domestic institutions and actors on the national level could be identified as major determinants of IEA compliance. Specific country characteristics such as employment situation, household incomes, or level of education influence national preferences and interests. Additional preliminary results include econometric insights on the design of IEAs ("International Climate Policy: Does it matter?") and the influence of domestic interest groups ("Democracy, interest groups and compliance with international environmental agreements. An Empirical Assessment on the Example of the Kyoto Protocol") on compliance with the Kyoto Protocol.

Partner:

• Konrad Adenauer Foundation, Graduate Program "Social Market Economy"

Description:

In recent years, private operators of security services have gained increasing importance both in Germany and internationally. Broadly speaking, this trend is driven by rising demand as well as new technical and organizational means. Such a development can be considered functional against the backdrop of new and diverse security challenges in Germany, providing a productive supplement to the "classical" public task of providing civil security. However, entering such new territory requires a thorough analysis of the actual economic good "security," not least because these services are associated with sensitive societal issues. Based on such a comprehensive analysis, this project aims to evaluate the development of the security market and find appropriate institutional responses: to highlight the potential productivity of private security markets while avoiding potential risks. Trends indicating a greater involvement of the private sector are more advanced in other countries. Therefore, the main task of the Jena group is to analyze security markets, particularly in the United Kingdom, the United States, and Sweden. The research goal is to identify and evaluate the impact of social, cultural, and institutional factors on the demand for security. For this purpose, a qualitative concept of causality will be developed, along with a corresponding quantitative (econometric) model.

Project staff:

• Prof. Dr. Andreas Freytag
• Dr. Wolfgang Bretschneider

Partners:

• Association of German Security Industry (BDSW)
• Brandenburg Institute for Society and Security (BIGS, Coordinator)
• Fraunhofer Institute for Open Communication Systems (Fraunhofer FOKUS)
• University of Potsdam Viadrina Compliance Centre (VCC)

Sponsor:

• Federal Ministry of Education and Research

Project Duration:

October 2016 - August 2019

Description:

The study focuses on foreign trade promotion instruments (FTPI), with the question: To what extent can a framework of economic policy be created in African states from Germany through the targeted use of FTPI, which reduces the financing and investment risks of German, especially medium-sized companies to a marketable level and subsequently enables stronger engagement?

With this question, the study will be divided into three parts. The first part will take stock of the investment activities of private companies from different (non-African) countries in various (African) countries. In the second part, existing and possible new FTPI will be examined. Additionally, the FTPI relevant in this context will be listed and empirically estimated regarding their impact on (direct) investments. The third part focuses on the development policy effects (growth impulses) of the instruments resulting from these investments.

Project staff:

• Univ.-Prof. Dr. Andreas Freytag
• Dr. Luong Thang Tran

Partners:

• Prof. Gabriel Gelbermayr, Ph.D.
• Prof. Dr. Erdal Yalçin

Project Duration:

December 2018 - June 2019

Description:

In 2018, the members of the African Union established the largest free trade zone in the world in terms of the number of participating countries, known as the African Continental Free Trade Area (AfCFTA). Members of the chair have been closely monitoring the development of the AfCFTA and have authored numerous papers on this topic as well as other issues related to regional integration in Africa, continuing to track its progress.

Additionally, there is a specific project underway, namely a book project by Andreas Freytag with Abena D. Oduro, a professor at the University of Ghana, on the topic of Prospects for Regional Integration in Africa - A Comparative Perspective. In September 2021, a conference will be held at the Stellenbosch Institute for Advanced Study (STIAS) where potential authors will present their planned book chapters. The project is funded by the Federal Ministry of Education and Research through the MIASA network. It is expected to be completed in the second half of 2022.

Project staff:

• Andreas Freytag
• Christoph Dörffel
• Sebastian Schuhmann
• Mesefin Woldegiorgis

Partner:

• Abena D. Oduro

Description:

One focal point in this field is the state of the world trading system, with particular emphasis on subsidies, subsidy reduction, and the resulting conflict between China and the West, which is the focus of the Chair's work (in collaboration with Peter Draper from the Institute for International Trade in Adelaide); see also below: Value-based Foreign Trade Policy.

Another thematic focus is the relationship between international conflicts and trade agreements. In a globalized world with highly integrated value chains, the question arises as to what institutional framework conditions can enable economic cooperation despite conflicts.

Project staff:

• Andreas Freytag
• Miriam Kautz

Description:

The project explores the relationships between inclusiveness, which refers to the participation of broad sections of the population in the economic and social process, and the institutional framework in society.

Two main sets of questions are at the center of the investigation. Firstly, what drives inclusiveness? Potential drivers include the rule of law, absence of corruption, economic performance, foreign trade, or development aid. The second key question concerns the measurement of inclusiveness. Due to the absence of suitable measurement concepts, the Chair of Christoph Dörffel and Sebastian Schuhmann has developed an index called the Multidimensional Inclusiveness Index (MDI).

Project staff:

• Andreas Freytag
• Mesfin Woldegiorgis