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 2017-5:

Now We’re Talking: Quantifying the Effect of Languages on Trade

Julian Hinz (Kiel Institute for the World Economy) and Elsa Leromain (Paris School of Economics)

Abstract: Economic transactions necessitate that buyer and seller communicate. While common spoken languages have been widely recognized as a determinant of bilateral trade, the mechanisms at play are largely lacking micro-foundations. In this paper we explicitly incorporate languages in a model of trade between locations with heterogeneous consumers and heterogeneous firms that yields a structural gravity equation. Deriving the local distribution of languages from a sample of 1 billion geolocated tweets, we use the model to quantify the general equilibrium effects of changes in the local distributions of spoken languages. For one such experiment, English as a common European language, we find welfare gains for all locations in Europe, with significant heterogeneity in magnitude between locations. While for another experiment, the elimination of within-country language diversity in Europe, the model predicts significant welfare losses across all locations in Europe.

Date: Friday, Nov. 3, 2017, 12 a.m. – 1 p.m.

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

KCG-Seminar 2017-4:

The Organization of International Trade

Frank Stähler (University of Tübingen) and Dominik Boddin (CAU Kiel)

Date: Friday, Oct. 20, 2017, 12 a.m. – 1 p.m.

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

KCG-Seminar 2017-3:

Greenfield Hires

Stefanie Haller (UCD Dublin)

Date: Friday, Oct. 13, 2017, 12-13am

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

KCG-Seminar 2017-2:

Rising Wages and Intra-country Industry Relocation: Evidence from China

Karsten Mau (Leuphana University)

Abstract: This paper systematically examines the effect of rising labor cost on the reallocation of industries within China. Using panel data for the years 2004 through 2007, evolution of industries within and across Chinese prefecture-level cities is evaluated. Wage growth does not appear to generally impact aggregate manufacturing industry production, employment, and exports, but a negative relationship is found in coastal provinces and their high-wage locations. Effects are stronger also in more labor-intensive industries and in location more exposed to low-wage competition. Attraction of industry activity by inland locations, due to excess wage growth in coastal China, is found to depend heavily on geographic proximity to the coast and on prior export orientation. Results highlight relevance of supply and market access linkages, and underscore challenges of China’s industry development as wages are expected to grow further.

Date: Friday, Oct. 6, 2017, 12-13am

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

KCG-Seminar 2017-1:

The Use of Economics in International Trade and Investment Disputes

Marion Jansen, Ph.D., Chief Economist, International Centre for Trade and Sustainable Development

Abstract: International economic dispute settlement is under increased scrutiny. How are decisions about the “fairness” of national or foreign policies taken? How are damages to be paid by governments to private investors calculated? This presentation explores whether economists can be of any use in addressing these and other contentious questions in international trade and investor state disputes. It is based on an edited volume containing contributions from academics and practitioners.

Date: Wednesday, Sep. 20, 2017, 10-11am

Venue: Hörsaal , Kiel Institute for the World Economy (Kiellinie 66, 24105 Kiel)