The Dynamics of Global Sourcing

  • 研討會日期 : 2021-01-13
  • 時間 : 10:30
  • 主講人 : Ms. Trang Hoang
  • 主持人 : Professor Wan-Jung Cheng
  • 地點 : online
  • 演講者簡介 : Ms. Hoang will receive her Ph.D. in Economics from Vanderbilt University in 2021. Her research interests are International Trade, Development, and Applied Microeconometrics. She is applying for a position of the Institute of Economics, Academia Sinica now.
  • 演講摘要 : Though input trade accounts for a significant share of global trade, little has been done to study the movement of firms in and out of import markets. To fill in the gap, this paper presents and estimates a dynamic, multi-country model of input imports with heterogeneous firms. The model incorporates intra-temporal interdependence across countries, while an inter-temporal link is embedded in the country-specific sunk entry costs. Using a sample of Chinese chemical producers between 2000 and 2006, I obtain the bounds for the fixed and sunk costs of importing by applying a partial identification approach under the revealed preferences assumption. The baseline results indicate that source countries are complementary in the sense that sourcing from an additional country increases the marginal benefits of other countries. Furthermore, a continuing importer pays between 7.81% and 27.06% of the average marginal revenue gain, while the average importing cost for a new importer is higher, ranging between 12.87% and 39.75% of the revenue gain of importing from a new source. The existence of interdependence across countries and location-specific sunk costs implies that temporary trade policy changes in one market can have long-lasting externalities on other markets.