|
on International Activities of Firms |
| By: | Thi Thanh Ha DOAN; Asei ITO; Changyuan LUO; Hongyong ZHANG |
| Abstract: | Utilizing comprehensive parent-affiliate matched data on Japanese multinational firms, this study investigates how geopolitical risks affect global supply chain configurations, with a focus on East and Southeast Asia during the period 2009–2022. We construct firm-level exposure to geopolitical risk in China using data on trade and foreign direct investment. First, Japanese multinational firms tend to respond to geopolitical shocks by diversifying their supply chains away from China and toward the Association of Southeast Asian Nations’ (ASEAN) economies. This response is particularly pronounced among firms that depend heavily on imported inputs from China or maintain substantial production operations there. Second, such diversification typically does not entail drastic within-firm relocation (“friend-shoring†) of supply chains. Third, Japanese multinational firms tend to increase their capital investment in Japan while maintaining their existing production bases in China. These results suggest that firms favor a strategy of supply chain diversification—rather than outright relocation / reshoring or abrupt decoupling—as a means of mitigating geopolitical risks. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25112 |
| By: | Davide Del Prete (the University of Naples Parthenope); Aminur Rahman (Asian Development Bank); Edoardo Tolva (University of Lisbon ISEG) |
| Abstract: | This paper studies how international buyers’ market power and transport mode shape the pass-through of exchange rate shocks to export prices. Using transaction level customs data from the Bangladeshi garment sector, we first document substantial buyer market power and the concentration of export activity in key trade hubs that shape transport decisions. We then show that large buyers leverage both their market power and their reliance on air freight to mitigate the impact of exchange rate fluctuations. Taken together, our findings highlight how buyer characteristics shape exporters’ adjustment to external shocks, with broader implications for regional economic resilience. |
| Keywords: | Bangladesh;exchange rate;global value chain;market power;transport mode |
| JEL: | D22 D43 E31 F10 L14 L22 |
| Date: | 2025–11–28 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021792 |
| By: | Jorge Cisneros Paz; Timothy Wojan; Matthew Williams; Jennifer Ozawa; Robert Chew; Kimberly Janda; Timothy Navarro; Michael Floyd; Christine Task; Damon Streat |
| Abstract: | Public-use microdata samples (PUMS) from the United States (US) Census Bureau on individuals have been available for decades. However, large increases in computing power and the greater availability of Big Data have dramatically increased the probability of re-identifying anonymized data, potentially violating the pledge of confidentiality given to survey respondents. Data science tools can be used to produce synthetic data that preserve critical moments of the empirical data but do not contain the records of any existing individual respondent or business. Developing public-use firm data from surveys presents unique challenges different from demographic data, because there is a lack of anonymity and certain industries can be easily identified in each geographic area. This paper briefly describes a machine learning model used to construct a synthetic PUMS based on the Annual Business Survey (ABS) and discusses various quality metrics. Although the ABS PUMS is currently being refined and results are confidential, we present two synthetic PUMS developed for the 2007 Survey of Business Owners, similar to the ABS business data. Econometric replication of a high impact analysis published in Small Business Economics demonstrates the verisimilitude of the synthetic data to the true data and motivates discussion of possible ABS use cases. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.05948 |