KCG Journal Articles

Where has the rum gone? The impact of maritime piracy on trade and transport

26th October 2021
KCG Secretary
Authors: Alexander Sandkamp, Vincent Stamer, Shuyao Yang (Review of World Economics, forthcoming)
Despite a general agreement that piracy poses a significant threat to maritime shipping, empirical evidence regarding its economic consequences remains scarce. This paper combines firm-level Chinese customs data and ship position data with information on pirate attacks to investigate how exporting firms and cargo ships respond to maritime piracy[...]

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[..]

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, online published)
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[...]

The Ethics of Workplace Health Promotion

10th July 2020
KCG Secretary
Authors: Eva Kuhn, Sebastian Müller, Ludger Heidbrink, and Alena Buyx (Public Health Ethics, phaa007)
Companies increasingly offer their employees the opportunity to participate in voluntary Workplace Health Promotion programmes. Although such programmes have come into focus through national and regional regulation throughout much of the Western world, their ethical implications remain largely unexamined[...]

The Trade Effects of Anti-Dumping Duties: Firm-level Evidence from China

10th July 2020
KCG Secretary
Authors: Gabriel Felbermayr, and Alexander Sandkamp (European Economic Review, Vol. 122, Feb. 2020, 103367)
This paper uses Chinese customs data to investigate the trade effects of anti-dumping (AD) policies. Merging firm-level exports to firm-specific AD duties, we exploit differences across firms within products. This reduces endogeneity concerns which have plagued earlier research[...]

Friends like this: The Impact of the US – China Trade War on Global Value Chains

8th June 2020
KCG Secretary
Authors: Holger Görg and Haiou Mao (The World Economy, Vol. 43(7), 1776-1791)

This paper considers the indirect impact the recent tariff increases between the US and China can have in third countries through links in global supply chains. We combine data from inputoutput relationships, imports and tariffs, to calculate the impact of the tariff increases by both the US and China on cumulative tariffs for other countries and thus hurt trade partners further downstream in global supply chains[...]

Chain of Blame: A Multi-Country Study of Consumer Reactions towards Supplier Hypocrisy in Global Supply Chains

23rd March 2020
KCG Secretary
Authors: Nils Christian Hoffmann, Juelin Yin, and Stefan Hoffmann (Management International Review, Vol. 68, 247-286)

Recent research identified firms’ hypocritical behavior as a major threat to their reputation among consumers. This paper expands the dyadic relationship to a triadic relationship, integrating the hypocritical behavior of suppliers in global supply chains. Introducing a chain of blame[…]

Introducing Dominant Currency Pricing in the ECB’s Global Macroeconomic Model

14th November 2019
KCG Secretary
Authors: Georgios Georgiadis and Saskia Mösle (Forthcoming, International Finance)

A large share of global trade being priced and invoiced primarily in U.S. dollar rather than the exporter's or the importer's currency has important implications for the transmission of shocks. We introduce this “dominant‐currency pricing” (DCP) into ECB‐Global, the ECB's macroeconomic model for the global economy. To our knowledge, this is the first attempt to incorporate DCP into a major global macroeconomic model used at central banks or international organisations. In ECB‐Global, DCP affects in particular the role of expenditure‐switching and the U.S. dollar exchange rate for spillovers: In case of a shock in a non‐U.S. economy that alters the value of its currency multilaterally[…]

Rules of Origin and the Profitability of Trade Deflection

14th November 2019
KCG Secretary
Authors: Gabriel Felbermayr, Feodora Teti and Erdal Yalcin (Journal of International Economics, Vol. 121, Nov. 2019, 103248)

When a country grants preferential tariffs to another, either reciprocally in a free trade agreement (FTA) or unilaterally, rules of origin (RoOs) are defined to determine whether a product is eligible for preferential treatment. RoOs exist to avoid that exports from third countries enter through the member with the lowest tariff (trade deflection)[…]