Author: Stefania Garetto
Publisher:
ISBN:
Category : International business enterprises
Languages : en
Pages : 206

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Author: Zi Wang
Publisher:
ISBN:
Category :
Languages : en
Pages :

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This dissertation includes two chapters on international trade and multinational production. My research focuses on estimating the frictions that impede commodity trades and knowledge transfers across countries, and quantifying the consequences of policies that aim to lower these frictions. In both chapters, I build and structurally estimate multi-country general equilibrium models, conducting policy experiments based on these models. However, they emphasize different economic forces that affect the implications of trade and multinational production liberalization.Chapter 1Multinational firms play a crucial role in international trade and production. I develop a new general equilibrium model that characterizes multinational firms' export behaviors and quantify their implications for trade and welfare. The unique feature of this model is that it allows a multinational affiliate's export cost to each market to depend on how close this market is to its production location (gravity) and to its headquarters (headquarters gravity). I show analytically that in existence of headquarters gravity the standard gravity equation is not enough to characterize trade flows across countries. The model delivers structural gravity equations that allow me to estimate headquarters gravity from Chinese firm data. The estimates suggest that multinational affiliates face much lower export costs to markets closer to their headquarters. I then calibrate the general equilibrium model to the world of 2001 with 28 major economies. The model fits the multinational firms' exports well both in firm-level and aggregate data. Counterfactual experiments show that if foreign affiliates in China have the same export costs as Chinese firms, Chinese manufacturing exports in 2001 would decrease by about a quarter. Furthermore, I show that ignoring headquarters gravity would substantially bias the estimates of welfare gains from multinational production. Finally, I demonstrate the usefulness of my model in quantifying the impacts of regional trade and investment agreements and the spillover effects of domestic policies.Chapter 2I introduce locally external economies of scale in production into a standard multi-country general equilibrium model with trade and multinational production (MP). I provide sufficient conditions for the existence and uniqueness of equilibrium. The model shows that both the elasticity of trade flows with respect to trade costs and the external economies of scale in production are crucial for the welfare implications of trade and MP liberalization. Via the lens of my model, I separate the external economies of scale from comparative advantage using the event of China joining WTO as an instrument. Counterfactual analysis shows that with stronger external economies of scale in production developing countries specalized in production gain more from MP liberalization.

Author: Federico Clementi
Publisher:
ISBN: 9788793579002
Category :
Languages : en
Pages : 123

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Author: Federico Clementi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Zaure Aitkulova
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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The first chapter explores the dynamic trade-off between export and FDI over the life-cycle of firms. Using car manufacturers sales data, I find that the share of car models sold through FDI increases over time while the share of exported models decreases over time within same destination markets. I explain this behavior with a demand learning model in which foreign sales profitability is determined by the foreign consumer's preference parameter and inter-temporal demand shocks. Prior to entering a particular foreign market, firms face a high uncertainty in their expected profitability. Firms start serving foreign markets mainly with exports because of this uncertainty and start switching to FDI subject to a set of realized demand shocks over time as their appeal index becomes less uncertain. This model nests existing models of FDI export trade-off and, at the same time, explains the dynamic switching between export and FDI observed in data. The second chapter explores the difference between multinational enterprises (MNEs) and non-multinational enterprises by looking at their trade dynamics facing a potential tariff increase. We create a dataset of US MNEs with subsidiaries in China and show that subsidiaries of US MNEs respond more to trade policy uncertainty compared to non-subsidiaries. To rationalize this finding, we build an inventory model that differentiates between MNEs and Non-MNEs based on difference in demand elasticities and in markups. Empirically, we estimate demand elasticities and markups charged by MNEs and Non-MNEs. We find that MNEs face lower demand elasticity and charge lower markups compared to Non-MNEs. The third chapter explores the short run and the long run effects of tariff change on intensive and extensive margins of trade in a vertical trade setting. I develop a model of vertical trade in which home country downstream oligopoly specializes in producing the final good using input purchased from foreign upstream oligopoly. A decrease in tariff imposed by the home country on foreign input producers increases entry in both sectors. The effect of a decrease in tariff on firm output is positive in the short run but depends on the shape of the final good demand function in the long run. Additionally, I derive the short run and the long run optimal tariff. Behavior of aggregate output, import, and firm entry depend on the shape of the final good demand function and relative sizes of both sectors.

Author: Sanjaya Lall
Publisher: Springer
ISBN: 1349052280
Category : Business & Economics
Languages : en
Pages : 271

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Author: Nathaniel P. S. Cook
Publisher:
ISBN:
Category : Commercial treaties
Languages : en
Pages : 196

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Author: Peter J. Buckley
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 314

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Book Description
This collection of essays by researchers in the field of international business celebrates the seminal contribution of John Dunning, offering not only case studies but also assessments of major themes in the field of international business. These summaries should prove useful reading and a major reference point for students and researchers in the field of international business.

Author: Murray C. Kemp
Publisher: Routledge
ISBN: 1134792026
Category : Business & Economics
Languages : en
Pages : 417

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Book Description
This book focuses on the normative side of trade theory and is divided into five parts: * trade under perfect competition; * restricted trade under perfect competition; * trade under imperfect competition and other distortions; * Compensation: lumpsum, non-lumpsum or neither? * International trade

Author: Ashok Kapoor
Publisher: Darwin Press, Incorporated
ISBN:
Category : Business & Economics
Languages : en
Pages : 536

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Book Description
Collection of readings on the definition, emergence and function of the multinational enterprise - covers management approaches in terms of business organization, marketing, accounting, financing, manufacturing, research and development, etc., and includes foreign investment in developing countries, political problems, future prospects, etc. Diagrams, references and statistical tables.