This paper develops a quantitative model of multinational production (MP) with non-neutral technologies incorporating two stylized facts observed in a global firm-level data: first, larger firms on average use more capital-intensive technologies; second, among firms producing in the same industry and country, those from more capital-abundant home countries use more capital-intensive technologies. I quantify the model using both firm-level and aggregate moments for 37 countries. I found that the reduction in MP costs accounts for 56% of the average decline in labor shares from 1996 to 2011, and the model also replicates a negative relationship between the change in a country's labor share and the change in the foreign affiliates' output share as observed in the data.
Prof. Chang SUN
经济学
管理及商业策略
Associate Professor
3917 4220
KK 1226
Academic & Professional Qualification
- Ph.D., Princeton University
- B.A., Tsinghua University
Biography
Chang obtained his bachelor’s degree from Tsinghua University, and a Ph.D. in economics from Princeton University. He joined the HKU Business School in August, 2017. His research concerns the impact of globalization, especially the patterns and consequences of multinational production.
Research Interest
- International Trade
- Multinational Production
Teaching
- Politics of Economic Reform in China (POLI3031)
- International Business Environment (STRA3702)
Selected Publications
- “Internal Migration, Remittances And Economic Development,” (with Xiameng Pan), Journal of International Economics, forthcoming.
- “Uncertainty, imperfect information, and expectation formation over the firm’s life cycle,” (with Cheng Chen, Tatsuro Senga and Hongyong Zhang), Journal of Monetary Economics, forthcoming.
- “The economic costs of trade sanctions: Evidence from North Korea,” (with Jihee Kim, Kyoochul Kim and Sangyoon Park), Journal of International Economics, 2023, 145, 103813.
- “Learning and Information Transmission within Multinational Corporations,” (with Cheng Chen and Hongyong Zhang), European Economic Review, 2022, 143, 104016.
- “Multinational Production with Non-neutral Technologies,” Journal of International Economics, 2020, 123, 103294.
Recent Publications
1Mar
1 Mar 2020
Journal of International Economics