Productivity Effects of Processing and Ordinary Export Market Entry: A Time-varying Treatments Approach

14th April 2021
KCG Secretary
Authors: Sourafel Girma, Holger Görg (Review of International Economics, forthcoming)
China’s policy of encouraging export processing has been the topic of much discussion in the academic literature and policy debate. We use a recently developed econometric approach that allows for time varying “treatments” and estimate economically and statistically significant positive causal effects of entering into export processing and ordinary export markets on subsequent firm level productivity[..]

KCG Seminar “Decoupling Global Value Chains” by Peter Eppinger on April 16

14th April 2021
KCG Secretary
News
News
Global value chains (GVCs) have been quickly developed and extended since the 1990s. GVC growth is often seen as one of the main reasons behind the rapid growth of international trade but it has been slowed down since the financial crisis in 2008 particularly due to the decline in overall economic growth, the rising protectionism and intensifying trade tension as well as the Covid-19 pandemic. The pandemic-determined GVC disruption especially in the first half year of 2020 induced many countries to think about whether moving away from GVCs and relying more on national or regional inputs and value chains may help firms and countries to be better protected from foreign shocks[...]

Different antidumping legislations within the WTO: What can we learn from China’s varying market economy status?

6th April 2021
KCG Secretary
Authors: Alexander Sandkamp, Erdal Yalcin (Review of International Economics, 2021, 29(5): 1121–1147)

This paper examines how varying antidumping methodologies applied within the World Trade Organization differ in the extent to which they reduce targeted exports. We show that antidumping duties, on average, hit Chinese exporters harder than those of other targeted countries[...]

New KCG Study on Productivity Effects of Processing and Ordinary Export Market Entry

30th March 2021
KCG Secretary
News
News
The ubiquitous “Made in China” label epitomizes China’s transformation from a virtual autarky in the 1970s to a veritable exporting powerhouse in little more than a generation. This transformation arguably owes much to the country’s ever-increasing integration in global value chains. This has undoubtedly been helped by policy. As early as the mid-1980s China introduced special “processing trade” schemes in an attempt to boost exports. The hallmark of this scheme is that there are tariff-exemptions on imported inputs as long as these are only processed in the country and then re-exported. Domestic sales of these processed goods are, in general, not permitted[...]

KCG Working Paper No. 23: Productivity effects of processing and ordinary export market entry: A time-varying treatments approach

30th March 2021
KCG Secretary
Publications
Publications
Authors: Sourafel Girma and Holger Görg

China’s policy of encouraging export processing has been the topic of much discussion in the academic literature and policy debate. We use a recently developed econometric approach that allows for time varying “treatments” and estimate economically and statistically significant positive causal effects of entering into export processing and ordinary export markets on subsequent firm level productivity[...]

Today: KCG Seminar on Role of Foreign Divestment for China’s Innovation Edge by Holger Görg

16th March 2021
KCG Secretary
News
News
Foreign direct investment (FDI) is often seen as being advantageous for fostering the economic development of host countries. Since investors bring in not only financial capital as well as know-how and technologies, FDI is also considered to be able to support firms and countries receiving FDI to deal with financial and technological difficulties in innovation activities[...]

A New Kiel Institute Study Shows Protectionist Measures against Global Supply Chains Harm All

1st March 2021
KCG Secretary
Publications
Publications
The COVID-19 pandemic is a huge challenge for all aspects of human lives – locally, nationally but also globally. With respect to the global economy, the COVIC-19 pandemic has clearly demonstrated how
vulnerable global supply chains can be in the face of global shocks. The severe pandemic-determined global supply chain disruptions particularly in the first half year of 2020 has triggered political and public discussions worldwide about whether there is increasing national need for economic self-sufficiency and about the role of potential business reshoring in this regard. There have been also such debates and discussions in Germany[...]