The goal of this chapter is to summarize the state of the art in research in inter- national trade and global production, and discuss issues relevant to European policymakers. Much of recent research on globalization is primarily empiri- cal, owing to the proliferation of available data. We begin by discussing recent advances in measuring the causes and effects of globalization, and discussing the particular data challenges that have emerged. We then turn to theories of trade and global production, rst summarizing the conclusions on which there is a broad consensus in the eld. We discuss new insights that may be relevant for policy-makers, and open research questions.
in: Mátyás et al. (eds), Economics without Borders: Economic Research for European Policy Challenges. Cambridge University Press. Chapter 6, pp 230-273.