Economics Seminar（2018-05）

Topic: Input Prices, Productivity and Trade Dynamics: Long- run Effects of Liberalization on Chinese Paint Manufactures

Speaker: Hongsong Zhang

Time: Tuesday,March20, 13:30-15:00p.m

Place: Room217, Guanghua Building 2

Abstract:

Input tariff liberalization encourages direct importing by lowering the relative price of directly imported intermediate inputs relative to domestic alternatives. In thrn, the action of importing itself encourages productivity growth. We develop a dynamic structural model to illustrate firm heterogeneity in both input prices and productivity. We find a mild short-term effect of input tariff liberalization from China’s accession to WTO in the paint industry. The effect is amplified in the long run by induced trade participation, resulting in even higher aggregate productivity and lower input prices. Overall, this effect increases the average present firm value by 2.3 percent.

Introduction:

Dr. Hongsong ZHANG obtained his Ph.D. in Economics from the Pennsylvania State University in 2013. He also holds a B.A. in Economics from the China Youth University for Political Sciences, and an M.A. in Economics from Peking University. Hongsong joined the School of Economics and Finance at The University of Hong Kong as Assistant Professor in 2013.

Hongsong’s main research interests cover topics in empirical industrial organization, international trade, and applied microeconomics. His current research focuses on measurement of productivity and demand shock, research and development (R&D), innovation, and their interaction with firm (dynamic) activities such as participation in importing/exporting, R&D investment, new product development, entry/exit decisions, and capital investment decisions.

Your participation is warmly welcomed!