April 24th, 2019

Discussion Paper 2019/2 is now available: El-Shagi, M. / Muhammad, B.: Institutional Similarity and Bilateral FDI


In this paper we assess the effect of institutional similarity on foreign direct investment. In a large panel of bilateral FDI stocks that covers roughly 190 countries both as host and source country of FDI we demonstrate that it is not similarity in general, but similarity with respect to government involvement in markets and with respect to corruption that matters. Our finding is robust to a large set of different panel estimators and specifications of the gravity model that is underlying our estimation.


April 12th, 2019

Discussion Paper 2019/1 is now available: Marsiglio, S. / Masoudi, N.: Transboundary Pollution Control and Competitiveness Concerns in a Two-Country Differential Game


We analyze a transboundary pollution control problem in a heterogeneous two-country differential game in which each country’s regulator cares for the implications of environmental policy on its compet-
itiveness. We characterize and compare the noncooperative and the cooperative solutions, showing that under both scenarios, the heterogeneous countries impose different tax rates despite such competitiveness
concerns. This may suggest that, while implementing some kind of mitigation policy is necessary to combat climate change, a universally homogeneous environmental tax may not be either desirable or optimal.


Chinese Divisia M3, M4 monthly growth rate

March 22nd, 2019

As of this week the CFDS also hosts the data on Divisia monetary aggregates for China. More data will be added in the near future in our pursuit to become the primary datasource for monetary data in China.

Chinese Divisia Data



December 3rd, 2018

We are excited to announce that the CFDS jointly with the Beijing Normal University Business School (BNUBS), and the School of Economics at the University of Cape Town (UCT) are organizing an Open Access Special Issue on “Poverty and Inequality: Evidence from the BRICS and Beyond” to be published in the journal Economic Modelling as part of their cooperation under the umbrella of the BRICS Network University (BRICS NU).

Call for Papers

2018 Winners of the Nikkei Prize

November 5th, 2018

Prof. Kiyohiko G. Nishimura (CFDS Academic Board Member) was awarded the 2018 Nikkei price for his book "Economics of Pessimism and Optimism" from Springer. The Nikkei prize is considered the most prestigious award for books in economics by Japanese authors. (https://www.jcer.or.jp/about-jcer/bunka available in Japanese only)

Prof. Nishimura is the first author that was awarded with this prize for books written in English twice, in 1993 he won the award for his book "Imperfect Competition, Differential Information and Microfoundations of Macroeconomics" from Oxford University Press.

The CFDS congratulates to this unprecetended achievement and wants to seize the opportunity to thank Prof. Nishimura once more for his continued support of our center.

Participants of the 1st Academic Board Meeting

November 2nd, 2018

This Friday, we had the opportunity to host 5 most distinguished colleagues for the inauguration meeting of the CFDS Academic Board - Prof. Gao Peiyong (Vice-President of the China Academy of Social Science), Prof. Hu Haifeng (Head of the Department of Finance at Beijing Normal University), Prof. Kiyohiko Nishimura (Professor of Economics at the National Graduate Institute for Policy Studies in Japan), Prof. Young Sik Kim (Director of the Seoul National University Institute for Research in Finance and Economics) and Prof. Paul McNelis (Robert Bendheim Professor of Economic & Financial Policy at Fordham University). The Academic Board meets annually and provides advice to the executive board members on future research focuses and possibilities to further improve the policy impact of the CFDS.


September 30th, 2018


International relations are at a crossroad. A single misstep could yield desaster and shape the future of global cooperation for decades to come. Maybe, the world is in dire need of a superhero. But then, maybe this wish for a hero was at the core of our problems all along. Read our op-ed on superheroes and the global trade conflict to learn more.


Policy Forum 4 (September 2018)