Research & policy

Policy Brief Series

What are Policy Briefs?

A policy brief is a concise summary of a particular issue, the policy options to deal with it, and some recommendations on the best option. It is aimed at government policymakers and others who are interested in formulating or influencing policy. If you want  to contribute to the INFFER Policy Brief Series follow the instructions here and use the template that can be availble upon request or you can download here and open it using the MsWord processor. If you are interested in submitting your contributions, please contact Cristina Badarau who is in charge of the INFER Policy Brief Series (Email:


Volume 1, Issue 1, April 2018

Creative milieu and firm location: Am empirical appraisal

Eva Coll-Martinez and Jospe-Maria Arauz-Carrod

This paper focuses on the creative industries – those industries that produce and commercialise creative goods and services – and the role played by the existing spatial distribution and agglomeration economies of these kinds of activities in their location decisions. Our main statistical source is the Register of Manufacturing Establishments of Catalonia (REIC), which has plant-level microdata on the location of new plants. We use count data models to show that location determinants are quite similar in both creative and non-creative industries and that both industries are positively influenced by the specialisation level of creative industries. Moreover, our results provide evidence that an unobserved ‘creative milieu’ has a considerable impact on attracting firms. (...)


Volume 1, Issue 2, November 2018

Globalization and the attitudes toward higher education: A policy discussion

Pablo Agnese and Jana Hromcová

Globalization is rapidly changing the international landscape and is bringing new and unexpected opportunities for those who are ready to grab them. However, it is also making it more difficult for some people to adjudast to the changing conditions. In particular, those on the lower end of the skill ladder will find themselves in a tight spot if they are unable to move up. Education, both formal and informal, is thus an enabler of opportunities and a booster of low skilled workers' productivities that can help to make up for their globalization-related losses. Understanding people’s concerns (or lack thereof) for higher education in a globalized world becomes an important political matter (...)


Volume 1, Issue 3, December 2018

The Role of Instituional Quality in the Corruption-Growth Nexus

Réda Marakabi, Camélia Turcu and Patrick Villieu

We analyze the channels through which institutional quality affects the corruption growth nexus. To this end, we develop an endogenous growth model and empirically test its implications. Our sample consists of a panel of 136 developed and developing countries over the period 1984-2015. We show, both theoretically and empirically, that (i) the corruption-growth relation can be subject to nonlinearities highly
influenced by countries’ institutional development and (ii) private investment and public spending are two main channels through which institutional quality nonlinearly affects the relation between corruption and economic growth. (...)


Volume 2, Issue 1, March 2019

Which exchange rate regime provides the best protection against unsuitable effects of a liquidity trap?

Cristina Badarau and Ibrahima Sangaré

A two-sector two-country DSGE model was used to study the performance of alternative exchange rate regimes in a liquidity trap caused by a large deflationary shock. Contrary to common belief during the recent euro crisis, the current study shows that the currency union can outweigh the independent floating regime in dealing with the duration and depth of a liquidity trap. This result suggests that being member of the euro area represented an advantage rather than a drawback for countries which were most affected by the recent crisis. However, we also show that targeting the exchange rate as a monetary policy rule allows an independent policy to outperform the monetary union. This would be the best option for countries that are not concerned with a monetary union. This study clearly highlights the importance of the exchange rate regime as a preventive strategy to avoid the negative effects of deflationary and recessionary shocks. (...)

Volume 2, Issue 2, July 2019

Edible Oil Trade Liberalization in India: What Can We Say from Policy Perspective?

Sutirtha Bondyopadhyay

India moved towards trade liberalization in early 1990s’ and edible oil was one of the sectors where import liberalization started intensely. Starting from near-autarkic policies that prohibited import of either edible oils or oilseeds, restrictions were relaxed and tariffs reduced on edible oil imports. India is now the world’s largest importer of edible oils and imports account for 70% of domestic consumption. Among all edible oils, palm oil constitutes the dominant share in India’s edible oil import. The access to cheaper imported oil increases its consumption. This is reflected in the increasing share of imported palm oil in the edible oil consumption basket during the post trade liberalization era. But the increase in edible oil consumption increases fat intake and leads to adverse health consequences. The trade liberalization of edible oils also has negative impacts on the domestic oilseeds sector in India. The decline in the tariff rate of imported oil reduces the demand for traditionally produced edible oils (like groundnut oil, rapeseed-mustard oil). Oilseeds are inputs to edible oil production. Therefore, decrease in the demand for traditional edible oils has adverse impact on the domestic oilseeds sector. We find evidence of reduction in the area devoted to traditional oilseeds production in the
post trade liberalization period. Several oil mills which used to extract edible oil from domestically produced oilseeds have shut down. This article discusses the possible policy measures that can be implemented to protect the domestic oilseeds farmers as well as oilseeds industry. (...)

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