@article{Macroeconomic:3000,
      recid = {3000},
      author = {Li, Haishi},
      title = {Essays on the Macroeconomic Implications of Globalization},
      publisher = {The University of Chicago},
      school = {Ph.D.},
      address = {2021-06},
      pages = {243},
      abstract = {Chapter 1: Multinational Production and Global Shock  Propagation during the Great RecessionBoth international  trade and multinational production (MP) collapsed during  the Great Recession. What fundamentals explained the MP and  trade collapse? I answer the question with a model of MP,  trade, and sectoral linkages. I highlight the frictions  multinational enterprises (MNEs) face when they source from  and sell to non-headquarters countries. These parameters  govern MNEs' vertical/horizontal-ness and render the rich  interactions between MP and trade. I consider two possible  sources of the MP collapse: compared to local producers,  (1) MNEs respond more adversely to the trade collapse and  the decline in durable final demand and (2) MNEs are  affected by different shocks (MNE-specific shocks).  MNE-specific shocks include those that affect MNEs'  productivity relative to local producers and their  vertical/horizontal-ness. I find that 71% of cross-country  variation in multinational foreign affiliate sales decline  and 19% of cross-country variation in trade decline, both  relative to GDP, can be explained by MNE-specific shocks.  MNE-specific shocks that hit a few important headquarters  and host countries propagate worldwide and explain much of  the MP collapse. However, sectoral final demand shocks to  almost all countries are necessary to explain a significant  share of the trade collapse.

Chapter 2: The Employment  Consequences of Anti-Dumping Tariffs: Lessons from Brazil  (with Gustavo De Souza)Can anti-dumping tariffs increase  employment? To answer this question, we compile data on all  anti-dumping (AD) investigations in Brazil, matched to  firm-level administrative employment information. Using  difference-in-differences, we estimate the effect of AD  tariffs on trade, the national supplier and sectors linked  to it. In response to an AD tariff, import decreases and  employment increases in the protected sector. Moreover,  downstream firms decrease employment by more than the  employment gains of the national producers while upstream  ones dramatically increase it. To quantify the aggregate  effect of these tariffs, we build a quantitative model with  international trade, input-output linkages, and labor force  participation. The model can reproduce the  micro-elasticities we found and aggregate moments of the  Brazilian economy. We show that the Brazilian AD policies  increase employment by 0.04%, GDP by 0.04%, but decrease  welfare by 0.09%.

Chapter 3: The Life-Cycle Dynamics of  Exporters and Multinational Firms (with Anna Gumpert,  Andreas Moxnes, Natalia Ramondo and Felix Tintelnot)This  paper studies the life-cycle dynamics of exporters and  multinational enterprises (MNEs). Using rich firm-level  data, we document a comprehensive set of facts on entry,  exit, and growth of new exporters and new MNEs. Guided by  these facts, we build a model based on the standard  proximity-concentration trade-off extended to incorporate  time-varying firm productivity and sunk costs of MNE entry.  The calibrated version of the model goes far in matching  cross-sectional and dynamic moments of the data on  exporters and MNEs. Our results point to much higher sunk  costs for MNE than for export activities. Finally, we show  how including the choice to become an MNE affects the  predicted export dynamics after a trade liberalization  episode.},
      url = {http://knowledge.uchicago.edu/record/3000},
      doi = {https://doi.org/10.6082/uchicago.3000},
}