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on China |
| By: | Conteduca, Francesco Paolo; Giglioli, Simona; Giordano, Claire; Mancini, Michele; Panon, Ludovic |
| Abstract: | In this work, we analyse the most recent shifts in trade patterns amid increasing ge-oeconomic fragmentation. We document five facts about the recent reconfiguration of global, US and EU trade flows. First, a broad retreat from globalization is not tak-ing place. Second, selective decoupling along geopolitical lines is ongoing, and is driven mostly by the weakening of specific trade relationships. Third, while the US dependency on China has been dropping since 2018, for the EU a decline is visible only in 2023, largely driven by few advanced technology products. Fourth, not all dependencies from China are diminishing. US and EU import shares of selected Chinese goods critical for the green transition have indeed even increased. Fifth, US supply chains from China are lengthening, at least for some production lines, as Chinese products increasingly flow through third countries to reach the US market; for the EU it is too early to tell. In general, micro data for Italy indicate that reduc-tions in dependencies from China may be less significant than those emerging from aggregate data, as some EU hubs are increasingly exporting products originated in China to other EU partners such as Italy. |
| Keywords: | Trade fragmentation; Global Value Chains; Trade policy; International Trade |
| JEL: | F10 F14 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122657 |
| By: | Matthew E. Kahn; Wen-Chi Liao; Siqi Zheng |
| Abstract: | The Trump Administration's tariffs created a wedge between mutually beneficial trades between China's producers and U.S. consumers. Moving production to nearby Vietnam allows firms to jump the tariff wall. Within Vietnam, cities closer to China with respect to distance and industrial mix grow faster and attract more FDI. They are increasingly consuming renewable power to fuel their local economy. We study the local air quality gains and the carbon dioxide emissions reductions associated with the growth in regional trade. China’s regional trade increases have important implications for the rise of the system of cities across Asia. |
| JEL: | F14 R40 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33126 |
| By: | Hong, Jifeng; Kazakis, Pantelis; Strieborny, Martin |
| Abstract: | As economic integration advances, the interdependence between upstream and downstream firms within the supply chain intensifies. Using data from Chinese listed firms (2010–2023), we examine the impact of suppliers’ environmental misconduct on downstream firms’ green innovation continuity. We show that suppliers’ environmental misconduct significantly undermines downstream firms’ green innovation continuity. In addition, suppliers’ environmental misconduct lowers downstream executives’ green cognition and increases financial constraints, reducing green innovation continuity. Further, greater bargaining power in downstream firms mitigates the negative impact of suppliers’ environmental misconduct, while closer geographic proximity amplifies its harm to green innovation continuity. Moreover, we find that China’s 2015 environmental protection law curbed suppliers’ environmental misconduct, boosting green innovation continuity in downstream firms. Finally, talent introduction policies enhance green innovation continuity, though this effect is weakened by suppliers’ environmental misconduct. Our findings add to the green supply chain literature, provide a perspective of green innovation continuity for corporate governance, and expand research on the impact of exogenous policies and environmental regulations on firms. |
| Keywords: | supply chain relationships; supply chain information transmission; environmental misconduct; green innovation continuity; green policy; financial constraints |
| JEL: | G30 L14 L22 Q51 Q55 |
| Date: | 2024–11–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122743 |
| By: | Carol H. Shiue; Wolfgang Keller |
| Abstract: | This paper documents persistence in the power of elite families in Central China despite dynastic change. We study the impact of the fall of the Ming Dynasty (1368-1644) on couples and their descendants (treatment of people), and present evidence on the response of multigenerational family lines to a big shock. Local Ming elites suffered a decline in influence in the short run, but in the long-run their descendants recovered and tightened their grip on power in their role as the elites of the new Qing Dynasty (1644-1911). In contrast to the recovery of family lines, the fall of Ming had a more persistently negative impact on the regions that historically were most strongly negatively affected by the shock (treatment of regions). The paper suggests that the elite reversal is due to trauma caused by Ming destruction that shifted norms towards the most socially respectable career paths based on the civil service exam; these norms were, to a greater degree, intergenerationally transmitted in family lines that suffered more from the destruction in the fall of the Ming dynasty. |
| JEL: | N35 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33121 |