締切日/開催日 2024年01月19日(金)
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: https://u-tokyo-ac-jp.zoom.us/meeting/register/tZAsc-qrqT8vGNWxBYxO5ENJJ2FQTgDBGw9V#/registration
Abstract: This paper studies the welfare implications of the US–China trade war in Vietnam when foreign-owned manufacturers repatriate their profits. Utilizing an enterprise survey in Vietnam, I provide novel evidence that Vietnam’s positive responses in input sourcing, product export, and employment in 2017–2019 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