FSS-ECON Seminar: Trade Frictions and Supply Chain Relations: From the Perspective of Third Countries
Speaker: Prof. Changyuan LUO, Professor of International Economics, Institute of World Economy, Fudan University
Date：08 May 2024 (Wed)
Time：14:00 – 15:15
Venue: E21B-G002
Language: English
Abstract: Based on data of US listed companies from 2014 to 2022, this article employs a difference-in-differences model to examine supply chain adjustments of American companies after US-China trade frictions. The baseline estimation results show that American companies tend to establish supply chain relations with third countries that are deeply integrated into the Chinese supply chain. Mechanism analyses suggest that American companies have increased their supply chain relations with third countries in order to indirectly establish connections with China. Extended analyses show that, such adjustments are more prominent for American companies with longer supply chain relations with China. When American companies transfer their supply chains to third countries, they are more concerned with the closeness of these countries’ trade relations with China, rather than the closeness of their political relations with China.
