Time: 2023/04/17 (Mon.), 13:30 -15:00 (Beijing Time)

Title: Market Interdependence through Shared Suppliers: Theory and Evidence from the Termination of Multi Fibre Arrangement

Venue: Zongxianzi Science Building 406

About the speaker:

张睿，中山大学商学院副教授，2019年毕业于北京大学国家发展研究院，获经济学博士学位。在2019年秋季到2022年秋季期间，他在丹麦Aarhus University担任经济系与商业经济系助理教授。他的研究兴趣是国际贸易和空间经济学。他的研究论文发表于The Economic Journal、《经济研究》、《管理世界》、《经济学（季刊）》、《世界经济》、《金融研究》等学术杂志。

Abstract:

We study the direct effect of a unilateral trade liberalization episode on the third-market economies who share the same set of suppliers as the liberalizing economy. Exploring the lifting of the Multi-Fibre Arrangement quotas on textile and apparel products in 2005, we provide new evidence of market interdependence: Upon the quota lifting, Chinese textile and apparel exporters exhibit strong “export reallocation” by increasing exports of quota-capped products to destinations lifting quotas, and decreasing exports of the same products to destinations that never imposed quotas. We interpret these findings in a model with increasing-marginal-cost production and export market participation decisions. The model features a direct “third-market” spillover effect and a welfare statistic adjusting for changes in marginal costs of the shared suppliers. Our estimation confirms strong increasing marginal cost and suggests sizeable adverse welfare effects of the quota lifting on the third-market economies.