Cross-border flows of goods and cross-border holdings of stocks and bonds have grown rapidly in recent decades. Nearly all major companies import some of their intermediate inputs from foreign suppliers and obtain some of their capital funding from foreign investors. In today’s interconnected world, events that start in one country can quickly impact economies all across the globe.
These links are not only increasingly relevant across countries, but also across the regions and neighborhoods within them. Trade policy, for example, has unequal effects across states and cities with different sectoral specialization. Top companies have expanded geographically to offer their products in a larger set of local markets, and we have seen increasing polarization of skills across cities as educated agents migrate to large urban areas. A selected group of urban hubs increasingly concentrates cognitive occupations and innovation.
The International Economics and Economic Geography Initiative brings together prominent UChicago faculty whose research informs these crucial topics and facilitates application of leading academic frameworks to real-world policy analysis.