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on International Activities of Firms |
| By: | Meng Yu Ngov; Pierre-Louis Vézina; Trang Thu Tran; Gaurav Nayyar |
| Abstract: | We document how foreign firms, inputs, and subsidies have shaped the development of Viet Nam's solar panel industry. We use firm-to-firm transaction data from Panjiva as well as firm-level data from the Vietnamese Enterprise Survey to trace solar panel value chains. We uncover three key findings: First, parts and components from subsidizing countries are 30% cheaper than alternatives. Those from China, which provides the majority of solar inputs to Vietnamese producers, are cheapest. Foreign subsidies may thus spill over across countries via value chains. Second, Chinese FDI firms dominate Viet Nam's solar industry, accounting for 75% of exports and 50% of jobs, while exporting solar panels that are 38% cheaper than those of other producers in Viet Nam. Third, local firms supplying parts and components to these Chinese FDI firms experience positive productivity gains. Our findings show how Viet Nam's solar boom emerged through deep integration into China's subsidized supply chains. |
| Keywords: | global value chains, green subsidies, FDI |
| JEL: | F14 F23 Q42 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:25138 |
| By: | Sascha O. Becker; Hartmut Egger; Michael Koch; Marc-Andreas Muendler |
| Abstract: | This paper links globalization, worker efficiency, and wage inequality within plants to internal labor market organization. Using German plant-worker data and information on the task content of occupations, we document that larger plants (i) use more occupations, (ii) assign fewer tasks per occupation, and (iii) exhibit greater wage dispersion. We develop a model where plants endogenously bundle tasks into occupations, improving worker-task matching at the cost of higher fixed span-of-control costs. Embedding this into a Melitz framework, we show that trade increases worker efficiency and wage inequality in exporting plants, whereas non-exporting plants experience the opposite effects. Structural estimation and simulations confirm the model's predictions and point to non-monotonic economy-wide effects. |
| Keywords: | Tasks; specialization; international trade; firm-internal labor allocation |
| JEL: | F12 F16 J3 L23 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:25135 |
| By: | Lucas Bertinatto; Lissette Briones; Jorge Fornero |
| Abstract: | This paper examines the short- and long-term effects of tariffs on Chilean exports using a novel micro-level panel from 2003 to 2024. The dataset includes firm-level exports by product and destination, tariffs, and macroeconomic controls. A relative tariff measure captures trade diversion. We find that a 10 percentage points increase in destination-country tariffs leads to a 5.9% drop in bilateral exports in the second year, focusing on the intensive margin. This effect is partially offset by the increase in shipments to other destinations. Findings are heterogeneous across sectors. Tariffs significantly reduce export levels, with results robust to alternative specifications, including Free Trade Agreements (FTA) controls. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1065 |
| By: | Jennie Bai; Luc Laeven; Yaojun Ke; Hong Ru |
| Abstract: | We study the global footprint and real effects of Chinese overseas corporate ownership. By assembling a comprehensive micro-level dataset of 161, 773 firms across 159 countries (2012–2021), we independently reconstruct multi-layered ownership chains to trace capital through offshore tax havens to its ultimate origin. This approach reveals a global footprint substantially broader than official FDI statistics. Chinese-controlled foreign assets expanded at 20% annually, reaching $2.1 trillion or roughly 3% of global corporate assets by 2021. Chinese investors—particularly state-owned enterprises (SOEs)—strategically target R&D-intensive and supply-chain-linked firms. Following acquisition, target firms increase capital stock and R&D expenditures, yet these inputs fail to generate higher patent output and are accompanied by a significant decline in profitability. We document a novel 'innovation spillback' mechanism: while target innovation remains stagnant, Chinese parent firms experience a sharp acceleration in granted patents following their first developed-economy acquisition. Furthermore, a greater Chinese presence crowds out R&D at non-target peer firms, though aggregate industry-level innovation remains unchanged. China thus represents a distinctively state-driven model of global ownership that accepts weaker near-term performance to internalize technological capacity at home. |
| JEL: | F3 G32 G34 O3 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35106 |