Working Papers

International Finance Discussion Papers #1337

27th FREIT-EIIT Best Graduate Student Paper

Econometric Society Winter School Best Paper in Applied Economics 2020

Finalist for the WTO Essay Award for Young Economists 2020

Abstract: This paper studies a model of heterogeneous importers that features static cross-country interdependence and dynamic dependence through sunk costs. Using data on Chinese chemicals producers, I find that source countries are complementary in the production. Furthermore, I estimate the sunk costs of importing using a partial identification approach under the revealed preferences assumption. The existence of cross-country interdependence and sunk costs implies that temporary trade shocks in one market can have long-lasting externalities on other markets through firm-level decisions.

Anticipation Effect of the TPP on Vietnamese Manufacturing Firms

Abstract: Using a firm-level dataset between 2010 and 2017, I study whether Vietnamese firms adjusted their productivity in anticipation of the Trans-Pacific Partnership (TPP). I find that an expected reduction of 10 percentage points in export tariffs leads to a 4% increase in productivity in 2016, the year that the TPP was signed and highly anticipated. However, an expected reduction of 10 percentage points in import tariffs causes a 3% decrease in productivity. The results are consistent with the notion that improved access to export markets and future export revenues encourage productivity-enhancing activities, while increased foreign competition, which lowers future revenues, discourages firms from improving productivity.

Work in Progress

The Global Costs and Benefits of Export Promotion

(with Magnus Buus, and Joel Rodrigue)

Consistency of Poisson Fixed Effects with Multiplicative Errors and Unbalanced Panel

(with Jeffrey Wooldridge)