Having received the 6th BBVA Frontiers of Knowledge Award in Economics, Finance and Management, economist Elhanan Helpman discusses in this interview how his contributions to international trade theory and the study of economic growth have redefined the modern understanding of globalization. Helpman explains how the models he developed allow for a more precise understanding of the role of firms, innovation, and productivity differences in trade flows. He also reflects on the distributional effects of trade, current tensions in the global economy, and the importance of designing policies that harness the benefits of international exchange without leaving the most vulnerable groups behind. His insights combine theoretical rigor with a keen understanding of contemporary economic dynamics.
The BBVA Foundation Frontiers of Knowledge Laureate in the Economics, Finance and Management categor
Having received the 6th BBVA Frontiers of Knowledge Award in Economics, Finance and Management, economist Elhanan Helpman discusses in this interview how his contributions to international trade theory and the study of economic growth have redefined the modern understanding of globalization. Helpman explains how the models he developed allow for a more precise understanding of the role of firms, innovation, and productivity differences in trade flows. He also reflects on the distributional effects of trade, current tensions in the global economy, and the importance of designing policies that harness the benefits of international exchange without leaving the most vulnerable groups behind. His insights combine theoretical rigor with a keen understanding of contemporary economic dynamics.
The BBVA Foundation Frontiers of Knowledge Laureate in the Economics, Finance and Management category goes in this sixth edition to Elhanan Helpman for his outstanding work in two key areas in modern economics: international trade and output growth. His contributions include the analysis of the production location choices of multinational firms and the relationship between organizations and protectionist political economy.
00:00 Introduction
00:05 What are the origins of the new trade theory? And could you explain the differences between the earlier theory and the new one?
01:12 You have highlighted the role of multinational corporations and their strategies, beyond a purely sector-based approach, in shaping international markets. Has this always been the case, or is it a more recent trend?
02:44 You have analyzed industrial strategies for locating production. What factors determine these strategies, and what are companies seeking when they invest in other countries?
04:21 How does cumulative innovation promote economic growth?
05:49 The jury also highlighted that you have demonstrated the complexity and limits of national market policies in a globalized economy. Is it possible for national policies to influence globalized markets, or is action at the level of trade blocs essential? In this regard, could you provide examples of effective national and international market policies?
07:35 Your research on protection policy suggests that the level of protection granted to an industry is related to its level of political organization. Could you elaborate on this?
