The purpose of the seminar is to provide a platform for presenting and discussing ongoing research on determinants and consequences of globalisation in general and global value chains in particular. The seminar will take place on an irregular basis at the Kiel Institute for the World Economy or at the Christian-Albrechts University of Kiel. Both are scientific partners of KCG. Information about upcoming presentations will be provided here in advance.

If you have any questions about the KCG Research Seminar, please contact Dr. Wan-Hsin Liu (KCG Coordinator).


KCG-Seminar 2019-3:

Impact of the EU-Korea Free Trade Agreement (FTA) on Firms’ Exporting Activity

Sonali Chowdhry (KCG and Kiel Institute for the World Economy)

Abstract: This paper examines multiple margins of firm-level adjustment following the entry into force of the deep and comprehensive EU-Korea FTA in 2011. Using French customs data spanning 2000-2016, the paper exploits variation in tariffs and tariff reductions across products under the FTA, assuming them to be exogenous from an individual firm’s perspective. It then employs difference in differences to identify the impact of the FTA on firms’ exporting activity. On the extensive margin, the FTA led to an increase in the probability of exporting to Korea and an increase in the product scope of firms. On the intensive margin, firms responded to the tariff reduction by primarily lowering unit values. The impact of the FTA is also found to be heterogeneous along the firm size distribution.

Date: Friday, May 10, 2019, 12.00-1.00pm

Venue: Medienraum (A-211), Kiel Institute for the World Economy (Kiellinie 66, 24105 Kiel)


KCG-Seminar 2019-2:

Export Potential in Services: Do Policy Measures Matter?

Camille Reverdy (University Paris 1-Panthéon Sorbonne)

Abstract: Trade in services has gained importance in the world economy in the last decades, outpacing the growth of trade in goods. Even though services trade represents 13% of global GDP, disaggregated services data is still scarce. Indeed, while developed countries usually report their trade data by service sector and partner, developing countries mostly report only the exports and imports of broad service sectors without any detail on the source or the destination of the trade flow. In an attempt to reduce the information gap existing in services trade, this paper assesses the general equilibrium effects of a reduction in bilateral trade costs, based on a structural gravity model. In a second step, the expected trade values following the reduction in trade costs are compared to the observed export values, representing the ‘trade potential’. Thirdly, I estimate the impact of the policy measures applied by the destination country on the value of this potential. I find that an increase in the level of trade restrictiveness in a given sector decreases the probability that an exporter will face a positive potential with this partner in this sector. Almost 40% of negative potential are associated with a ‘no restriction’ environment in the partner country. Focusing on the ‘intensive margin’, i.e. on the positive potential values, I find that an increase of the restrictiveness level by one unit decreases the value of the trade potential by 1.1%.

Date: Friday, May 3, 2019, 12.00-1.00pm

Venue: Medienraum (A-211), Kiel Institute for the World Economy (Kiellinie 66, 24105 Kiel)


KCG-Seminar 2019-1:

Productivity Losses and Firm Responses to Electricity Shortages: Evidence from Ghana

Dr. Charles G. Ackah (University of Ghana, Accra)

Abstract: One of the commonly cited obstacles to firms’ operations in developing economies is inadequate access to electricity. In this paper, we explore the impact of electricity outages on firm productivity using arguably exogenous variation in outages across small and medium-sized Ghanaian manufacturing firms induced by an electricity rationing program. We find that eliminating outages in this setting could lead to an increase in firm productivity. We further analyze the strategies firms use to cope with outages. We draw two main conclusions from the analysis in this paper. First, power outages have a significant negative impact on productivity. Our estimates suggest that, for instance, reducing the number of days in a month with outages from the average of about 10 in Ghana to none, as is the typical case in most developed countries, has the potential to increase productivity by about 10 percent. Second, firms are able to reduce the negative productivity impacts of outages by altering their product mix in favor of less electricity-intensive products. This coping strategy can have broader implications for the variety of products available to consumers. Further, we find that one of the most common strategies employed worldwide, the use of a generator, is unable to alleviate the negative productivity impact potentially due to the inability of small firms to efficiently use generators given the substantial economies of scale in electricity generation.

Date: Friday, March 1, 2019, 12.00-1.00pm

Venue: Medienraum (A-211), Kiel Institute for the World Economy (Kiellinie 66, 24105 Kiel)