【Empirical seminar】Bound by Ancestors: Immigration, Credit Frictions, and Global Supply Chain Formation
2022/09/27
研討會日期 : 2022-09-27
時間 : 14:30
主講人 : Professor Ziho Park (朴至鎬)
地點 : Conference room B110
主持人 : Professor Tzu-Ting Yang
演講者簡介 : Professor Park received his Ph.D. in Economics from the University of Chicago. He is currently an Assistant Professor at the National Taiwan University. His research interests are international trade, macroeconomics, and urban economics.
演講摘要 : This paper shows that the ancestry composition shaped by century-long immigration to the US
can explain the current structure of global supply chain networks. Using an instrumental variable strategy, combined with a novel dataset that links firm-to-firm global supply chain information with a
US establishment database and historical migration data, we find that co-ethnic networks formed by immigration have a positive causal impact on global supply chain relationships between foreign countries and US counties. Such a positive impact not only exists in conventional supplier-customer relationships but also extends to strategic partnerships and trade in services. Examining causal mechanisms, we find that the positive impact is stronger for counties in which more credit-constrained
firms are located, and such a stronger effect becomes even more pronounced for foreign firms located in countries with weak contract enforcement. Collectively, the results suggest that co-ethnic networks serve as social collateral to overcome credit constraints and facilitate global supply chain formation.
