Thurner and colleagues explore how economic shocks spread risk through the globalized economy. They find that rich countries expose poor countries stronger to systemic risk than vice-versa. The risk is highly concentrated, however higher risk levels are not compensated with a risk premium in GDP levels, nor higher GDP growth. The findings put the often-praised benefits for developing countries from globalized production in a new light, by relating them to risks involved in the production processes
- Abhijit Chakraborty
- Tobias Reisch
- Stefan Thurner
