Tel. +34 93 542 1657
Available for Interviews at :
European Job Market for Economists (EEA), December 6-7, Naples, Italy
Simposio de la Asociación Española de Economía (SAEe), December 13-15, Madrid, Spain
Allied Social Science Associations (ASSA), January 4-6, Atlanta, US
International Trade. Economic Geography. Regional/Urban Economics.
"Infrastructure and Global Value Chain Position: Evidence from China" (Job Market Paper)
This paper studies the impact of trade cost reduction on a country’s participation in Global Value Chains (GVCs), measured by the gap between its import and export upstreamness. In this paper, export and import upstreamness are defined as the share of exporting and importing upstream goods. To explain China’s stronger participation in GVCs, I incorporate within-country geography into a trade model à la Antras and de Gortari (2017), which examines the decision-making process through which a firm decides where to source its intermediate goods and where to sell its final products. The model shows that a city’s proximity to domestic markets increases its participation in GVCs while a city’s proximity to foreign market may reduce its participation in GVCs. This paper empirically evaluates how China’s ambitious highway construction during the period 2000 – 2006 determined its own participation in GVCs. This is done by extending Faber (2014)’s algorithm, which calculates the least cost-trunk path, to include the time variation in the highway’s construction. The results show that a one standard deviation (std) increase in a city’s proximity to large domestic markets leads to a strong 1.2 std increase in GVC participation, while a one std increase in a city’s proximity to foreign markets leads to a weak 0.5 std decrease in GVC participation. Results from structural estimation show that solely replacing highway in 2000 with the one in 2006 increases the aggregate welfare by 11%, spatial inequality by 13% and the participation in domestic value chain to serve the foreign market by 1.9%. These results highlight the strong impact of China’s highway construction on its GVC participation, and social welfare between 2000 and 2006.
Research Paper in Progress
"Complementarity between infrastructure and restriction to migration: A Quantitative Analysis"