Foreign Demand Shocks To Production Networks

DOWNLOAD

Download Foreign Demand Shocks To Production Networks PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Foreign Demand Shocks To Production Networks book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page

Foreign Demand Shocks To Production Networks

DOWNLOAD
Author : Emmanuel Dhyne
language : en
Publisher:
Release Date : 2022

Foreign Demand Shocks To Production Networks written by Emmanuel Dhyne and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.

We quantify and explain the firm responses and worker impacts of foreign demand shocks to domestic production networks. To capture that firms can be indirectly exposed to such shocks by buying from or selling to domestic firms that import or export, we use Belgian data with information on both domestic firm-to-firm sales and foreign trade transactions. Our estimates of firm responses suggest that Belgian firms pass on a large share of a foreign demand shock to their domestic suppliers, face upward-sloping labor supply curves, and have sizable fixed overhead costs in labor. Motivated and guided by these findings, we develop and estimate an equilibrium model that allows us to study how idiosyncratic and aggregate changes in foreign demand propagate through a small open economy and affect firms and workers. Our results suggest that the way the labor market is typically modeled in existing research on foreign demand shocks--with no fixed costs and perfectly elastic labor supply--would grossly understate the decline in real wages due to an increase in foreign tariffs.

Demand And Supply Shocks Of Covid 19 And International Production Networks

DOWNLOAD
Author : Mitsuyo Ando
language : en
Publisher:
Release Date : 2021

Demand And Supply Shocks Of Covid 19 And International Production Networks written by Mitsuyo Ando and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021 with categories.

Trade And Domestic Production Networks

DOWNLOAD
Author : Emmanuel Dhyne
language : en
Publisher:
Release Date : 2020

Trade And Domestic Production Networks written by Emmanuel Dhyne and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.

We examine how many and what kind of firms ultimately rely on foreign inputs, sell to foreign markets, and are affected by trade shocks. To capture that firms can trade indirectly by buying from or selling to domestic firms that import or export, we use Belgian data with information on both domestic firm-to-firm sales and foreign trade transactions. We find that most firms use a lot of foreign inputs, but only a small number of firms show that dependence through direct imports. While direct exporters are rare, a majority of firms are indirectly exporting. In most firms, however, indirect export is quantitatively modest, and sales at home are the key source of revenue. We show that what matters for the transmission of foreign demand shocks to a firm's revenue is how much the firm ultimately sells to foreign markets, not whether these sales are from direct or indirect export.

Production Networks And Propagation Of Supply And Demand Shocks

DOWNLOAD
Author : Nuriye Melisa Bilgin
language : en
Publisher:
Release Date : 2022

Production Networks And Propagation Of Supply And Demand Shocks written by Nuriye Melisa Bilgin and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.

We obtain measures of demand and supply shock spillovers across the U.S. manufacturing industries using monthly data on industrial production (1976-2022) and producer prices (1947-2022). Analyzing the spillovers/connectedness measures and the input-output linkages, we find strong evidence that supply shocks propagate downstream through the producer price channel. In contrast, demand shocks propagate upstream through the production channel. Statistical tests strongly support that the input-output network Granger causes inflation connectedness, especially more significantly during global metal-mineral and oil price hikes. Similarly, the input-output network Granger causes output connectedness, particularly more strongly during U.S. recessions.

Covid 19 And Emerging Markets

DOWNLOAD
Author : Cem Çakmaklı
language : en
Publisher:
Release Date : 2020

Covid 19 And Emerging Markets written by Cem Çakmaklı and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.

Abstract: We quantify the macroeconomic effects of COVID-19 for a small open economy by calibrating a SIR-multi-sector-macro model to Turkey. Sectoral supply shocks are based on the proximity requirements in each sector and the ability to work from home. Physical proximity determines the supply shock through its effect on infection rates. Sectoral demand shocks incorporate domestic and foreign demand, both of which adjust with infection rates. We calibrate demand shocks during COVID-19 using real-time credit card purchase data. Our results show that the optimal policy, which yields the lowest economic cost and saves the maximum number of lives, can be achieved under a full lockdown of 39 days. Economic costs are much larger for an open economy as the shocks are amplified through the international production network. A decline in foreign demand leads to losses in domestic sectors through international input-output linkages, accounting for a third of the total output loss. In addition, the reduction in capital flows deprives the network from its trade financing needs, where sectors with larger external finance needs experience larger losses. The policy options are limited given sparse fiscal resources to fight the pandemic domestically, while serving the external debt. We present historical evidence from 2001 crisis of Turkey, when fiscal, monetary and exchange rate policies were employed altogether to deal with a triple crisis of balance of payments, banking, and sovereign debt

International Comovement In The Global Production Network

DOWNLOAD
Author : Zhen Huo
language : en
Publisher:
Release Date : 2019

International Comovement In The Global Production Network written by Zhen Huo and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.

This paper provides a general and unified framework to study the role of production networks in international GDP comovement. We first derive an additive decomposition of bilateral GDP comovement into components capturing shock transmission and shock correlation. We quantify this decomposition in a parsimonious multi-country, sector and factor network propagation model featuring a single composite supply shock, with data for 29 countries and up to 30 years. We find that the network transmission of shocks can only account for a minority of observed comovement under a range of standard values of structural elasticities. To assess the role of delayed propagation and intertemporal shocks- features absent in the standard static framework- we extend both the accounting decomposition and the model to a dynamic setting and enrich the space of shocks. Quantitatively, delayed propagation contributes relatively little to the overall GDP comovement compared to the impact effects captured by the static production networks model. Models featuring two intratemporal shocks (TFP and labor supply) strike a good balance between parsimony and fit to the data.

Endogenous Production Networks With Fixed Costs

DOWNLOAD
Author : Emmanuel Dhyne
language : en
Publisher:
Release Date : 2023

Endogenous Production Networks With Fixed Costs written by Emmanuel Dhyne and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.

This paper presents a tractable model of endogenous production networks with fixed costs associated with the formation of links between firms. The model consists of a finite number of firm types producing differentiated products. Each firm is characterized by firm-specific parameters describing its CES production function, firm-specific domestic and foreign demand shifters, and a firm-specific set of potential suppliers and buyers. We consider versions of the model in which either the buyer or the supplier initiates the formation of links, and versions in which the production network can be cyclic or acyclic. Our main theoretical result is that the closed economy equilibrium is unique if the set of feasible networks consists only of networks that are acyclic and the buyer initiates the link formation while having full bargaining power in price negotiations with the supplier. We provide examples of multiple equilibria if the supplier initiates the link formation in both cyclic and acyclic feasible networks or if the buyer initiates the link formation in a cyclic production network. We take the acyclic production network model to Belgian data on firm-to-firm production networks and show that it approximates well the salient features of the network. The endogenous network model generates substantial churn in domestic firm-to-firm linkages in response to trade shocks. However, the endogenous network model generates only moderately different welfare changes compared to a model with fixed linkages, suggesting that exogenous production networks can approximate the welfare response to trade shocks reasonably well.

Asia And Global Production Networks

DOWNLOAD
Author : Benno Ferrarini
language : en
Publisher: Edward Elgar Publishing
Release Date : 2014-10-31

Asia And Global Production Networks written by Benno Ferrarini and has been published by Edward Elgar Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014-10-31 with Business & Economics categories.

This timely book deploys new tools and measures to understand how global production networks change the nature of global economic interdependence, and how that in turn changes our understanding of which policies are appropriate in this new environment.

Uncovering Value Added In Trade New Approaches To Analyzing Global Value Chains

DOWNLOAD
Author : Yuqing Xing
language : en
Publisher: World Scientific
Release Date : 2015-07-13

Uncovering Value Added In Trade New Approaches To Analyzing Global Value Chains written by Yuqing Xing and has been published by World Scientific this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-07-13 with Business & Economics categories.

Value chain trade has challenged economic implications of conventional trade statistics and transformed bilateral trade relationships into multilaterals. Conventional trade statistics exaggerate trade volumes and bilateral trade imbalances. It is imperative to measure trade in value-added and examine trade relations in the context of global value chains. This book is a collection of research papers on new approaches to measure trade in value added and the role of global value chains in modern international trade. It introduces the input output method for measuring trade and a direct approach for measuring the domestic value added of the People's Republic of China — the center of global assembly. In addition, it shows how to analyze trade relations in the context of global value chains.

Cars In Europe Supply Chains And Spillovers During Covid 19 Times

DOWNLOAD
Author : Vizhdan Boranova
language : en
Publisher: International Monetary Fund
Release Date : 2022-01-14

Cars In Europe Supply Chains And Spillovers During Covid 19 Times written by Vizhdan Boranova and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-01-14 with categories.

Cars in Europe: Supply Chains and Spillovers during COVID-19 Times