KCG Lunch-Time Seminar 2024

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 Research Seminar 2024-3/Kiel Trade Talks #2: 

Topic: Who Pays for the Tariffs and Why? A Tale of Two Countries

Prof. Lei Li, Ph.D. (University Göttingen)

Abstract: During the U.S.-China trade war, the U.S. punitive tariffs were almost entirely borne by U.S. importers. In contrast, only 68% of China’s retaliatory tariffs were paid by Chinese importers. The puzzling difference between the U.S. and China is mainly driven by their different import structures and product heterogeneity in tariff pass-through. China mainly imported products with lower tariff pass-through from the U.S., such as agricultural products and aircraft, while the U.S. primarily imported products with higher tariff pass-through from China, such as electronics. Furthermore, we decompose the product-level tariff pass-through and show that a higher ratio of import demand elasticity over export supply elasticity leads to lower tariff pass-through under perfect competition.

Date: November 29, 2024, 12:00 – 13:00

Venue: Virtually via Zoom

If interested, please send an Email to kcg-office@ifw-kiel.de to receive the Seminar-Link or to register for participation in Kiel.

KCG Research Seminar 2024-2/Kiel Trade Talks #1 (Online): 

Topic: No blood in my mobile: regulating foreign suppliers

Ninon Moreau-Kastler, Ph.D. (EU Tax Observatory, Paris School of Economics)

Abstract: Can developed countries enforce that goods consumed domestically do not contribute to human rights violations in developing countries where they are sourced? This paper studies the enforcement of new due diligence policies, which constrain firms in developed countries to prevent human rights violations involvement of their foreign suppliers. I study the US Dodd-Frank Act Conflict Mineral Rule (2010), a law targeting specific conflict minerals extracted in DRC and adjoining countries. I explore how diligence obligations have affected the regulated source countries’ access to international markets and whether diligence is circumvented through legal havens. Comparing targeted bilateral trade flows to non-targeted products and exporters within the structural gravity framework, I find that this policy decreased DRC and adjoining countries’ exports in value of 3T products by 72%. But this new extraterritorial rule has unintended consequences: I estimate that 38% of exports are diverted to opaque countries, called legal havens after the law is implemented. Exports are then redirected to countries hosting suppliers of US-regulated firms. Looking at US firms’ reactions, I show that sales drop, while administrative costs increase at the time of the law.

Date: October 11, 2024, 12:00 – 13:00

Venue: Virtually via Zoom

If interested, please send an Email to kcg-office@ifw-kiel.de to receive a Zoom-Link to the seminar.

KCG Research Seminar 2024-1 (Hybrid): 

Topic: Foreign Direct Investment and Structural Transformation in Africa

Prof. Marco Sanfilippo, Ph.D. (University of Turin and Collegio Carlo Alberto)

Abstract: This paper analyzes the relationship between inward FDI and structural transformation of local labour markets in Africa. We combine geolocalized information on the distribution of FDI with a novel database that provides information from 40,665,627 individuals in 2,570 subnational units over the period 1987-2019. Results are suggestive of a positive effect of FDI on structural transformation. FDI contributes to an increase in employment, and shifts of workers towards modern industries and higher-skilled occupations. No effects are found on self-employment. Results are heterogeneous, reflecting the characteristics of the foreign investor and of the business activity undertaken by foreign firms in the local market. Geospatial analysis of changes in performance of domestic firms exposed to nearby FDI projects provides evidence of horizontal spillovers and inter-industry linkages, suggesting a complementary mechanism through which FDI drives structural change.

Here link to the CEPR Discussion Paper No. 17838

Date: Friday, February 9, 2024, 12:00 – 13:00

Venue: Virtually via Zoom

If interested, please send an Email to kcg-office@ifw-kiel.de to receive a Zoom-Link to the seminar.