In his research, Prof. Dr. Daniel Baumgarten deals intensively with the consequences of the global division of labour on the German economy. In essence, it is about what kind of value creation takes place in Germany and what effects it has on activities in Germany. In his research, the newly appointed researcher shows how closely global economic developments are linked to our daily lives. His work contributes to a better understanding of complex interrelationships and provides valuable insights for shaping a sustainable future.
From Bolivia to economics
Born in Düsseldorf, he completed his civilian service in Bolivia in a development aid project after graduating from high school, which sensitised him to global economic challenges. During this time, Baumgarten developed an interest in economics with an international focus, which he subsequently deepened during his studies. In the further course of his academic career, Prof Dr Daniel Baumgarten developed an additional enthusiasm for statistical and econometric methods. His professional stations, including the RWI Economic Research Institute, LMU Munich and Hanover University of Applied Sciences and Arts, shaped his research. Today, the political relevance and the linking of theory and empiricism are essential components of his work.
Labour market effects of globalisation and the digital world
A central focus of Baumgarten's research is the interface between foreign trade and the labour market, in particular the labour market effects of globalisation. He has been working on this topic since his doctorate: "I am particularly interested in the question of how the changing international division of labour affects activities here in Germany," he explains. He is investigating who benefits from globalisation and who is confronted with phases of unemployment, as well as which skills could be relevant in the future.
Another important field of research for the new appointee is the study of globalisation in a digital world. "Digitalisation is changing the way the international division of labour works," explains Baumgarten. He is investigating whether the traditional barriers to globalisation, such as physical distance, remain relevant in a digital world. "The digital world brings new challenges and opportunities for globalisation. It is crucial to understand how these changes affect economic structures and labour markets." Daniel Baumgarten is investigating the extent to which digital technologies are changing international value chains and what new forms of division of labour are resulting from this. "Digitalisation enables companies to optimise processes and make global networks more efficient. At the same time, new competitive conditions are emerging that need to be analysed," explains Prof. Dr. Daniel Baumgarten.
Research with academic relevance and practical benefits
Prof Dr Daniel Baumgarten's research approach is empirical in nature. "I have always been interested in analysing data and investigating statistical correlations," he explains. In collaboration with partners, he often combines empirical analyses with theoretical models in order to investigate complex issues relating to globalisation and digitalisation: "Especially with complex topics such as globalisation, it is helpful to develop theoretical models in order to make the expected effects transparent and to test them."
This combination of theory and empiricism enables him to gain well-founded insights into the economic mechanisms of globalisation and digitalisation and derive political implications. "My research should not only have academic relevance, but also offer practical benefits by providing pointers for shaping economic policy," emphasises Prof. Dr. Daniel Baumgarten.
One example from his research is the study of wage inequality in West and East Germany. "We found that the decline in collective bargaining coverage plays a major role and explains a significant proportion of the rise in wage inequality," explains Prof Dr Daniel Baumgarten. Another research project deals with the internationalisation strategies of high-performance companies, in particular with the question of whether companies serve their foreign markets through exports or by opening foreign branches and how this decision differs for different products of the same company.
Research results with global relevance
Although his studies often use examples from Germany, his research findings have global relevance. "The factors influencing globalisation and digitalisation are similar in many developed economies," he explains. However, differences in labour markets, such as minimum wages, trade union influences and employment protection, influence the specific effects in individual countries. "It is important to gather evidence from different countries in order to understand the different effects and learn from them," says Prof Dr Daniel Baumgarten.
Motivated students and practical teaching
Baumgarten has a clear approach to teaching: "You learn the most when you work something out for yourself." This requires students to be motivated and curious. "I expect my students to question things critically and not take everything at face value," he emphasises. The connection between theoretical models and the real world is also important to him. "We not only learn about models, but also check how well they reflect reality," he explains.
As Professor of Macroeconomics and Globalisation, Prof. Dr. Daniel Baumgarten sees these two fields as closely linked: "Macroeconomics deals with macroeconomic interrelationships, and most economies are very closely intertwined." A clear example of this is the impact of the coronavirus crisis on international supply chains and the resulting macroeconomic consequences.
Future trends and megatrends
For the future, Prof. Dr. Daniel Baumgarten sees major challenges and opportunities in the fields of macroeconomics and globalisation. He identifies several megatrends that will shape the macroeconomy. "Climate change and the necessary transformation of the economy, digitalisation and artificial intelligence as well as demographic change are key issues," he explains. He is also particularly concerned with the question of how globalisation will develop in the face of geopolitical tensions. "We need to closely monitor and understand these developments in order to take the right economic policy measures."
