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東京大学公共政策大学院 | GraSPP / Graduate School of Public Policy | The university of Tokyo

Seminar Information “Foreign Profit Shifting and The Welfare Responses to The US–China Trade War: Evidence from Manufacturers in Vietnam” January 17, 2024

Deadlines/Event Dates January 19, 2024

GraSPP faculty members and students are invited to the hybrid seminar by Mr. Sungji Wu from Duke University on his work “Foreign Profit Shifting and The Welfare Responses to The US-China Trade War: Evidence from Manufacturers in Vietnam

Date:  Friday, January 19,  15:30-17:00

Venue:  Lecture Hall 3 on the 3rd floor of the Economics Research Building, Faculty of Economics, The University of Tokyo

Please register at the website below for online participation.
TWID Zoom Registration URL:

Abstract: This paper studies the welfare implications of the USChina trade war in Vietnam when foreign-owned manufacturers repatriate their profits. Utilizing an enterprise survey in Vietnam, I provide novel evidence that Vietnams positive responses in input sourcing, product export, and employment in 20172019 are driven mainly by foreign-owned manufacturers, especially Chinese manufacturers. To further understand the welfare gains of the trade war episode, I develop and estimate a quantitative model of trade participation with foreign ownership, where foreign-owned manufacturers do not retain their profits in the host country. A foreign demand shock to Vietnam of a magnitude similar to that of the trade war raises the real expenditure in the model by 5 percent, predominantly from an increase in labor income.

Organizer: Prof. Taiji Furusawa