The Extensive Margin of Exporting Products: A Firm-Level Analysis

To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market access cost shocks. Our estimates show that additional products farther from a firm’s core competency come at higher production costs, but there are substantive economies of scope in market access costs. Market access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer nontariff barriers. We evaluate a counterfactual scenario that harmonizes market access costs across destinations and find global welfare gains similar to eliminating all current tariffs. (JEL D22, F12, F13, F14, O14, O19)

Heterogeneity of the Impact of Geopolitical Events on Energy Trade: An Empirical Study Based on Regression Discontinuity Design

In the context of intensifying global geopolitical disputes and trade frictions, the relationship between geopolitics and energy trade has attracted extensive attention from scholars. The complexity of geopolitical risks mainly comes from the diversity of geopolitical events, which directly leads to the different responses of energy trade in the face of geopolitical risks. The purpose of this paper is to analyze the heterogeneity of the impact of geopolitical events on energy trade based on the difference of event types. This paper uses Regression Discontinuity Design (RDD) to simulate a quasi-natural experiment. Based on the monthly data and the Geopolitical Risk index (GPR index) of 17 emerging economies from 2000 to 2020, the empirical analysis can be concluded as follows: Wars and conflicts events lead to the increase of energy trade volume; terrorist attacks have no significant impact on energy trade; international tension can cause the decline in energy trade. Additional analysis shows that the impact of geopolitical events on energy trade in emerging economies is concentrated on the demand side, and the demand is severely inelastic.

International supply chains pose green challenges

Significance Trade-offs with other policy concerns such as domestic job creation pose political dilemmas. Both green technology products and their inputs are increasingly seen as strategic, prompting efforts to secure supply chains, which risk generating trade frictions and geopolitical disputes that could affect the cost efficiency of green technology. Impacts Global supply chain traceability will become more important for low-carbon companies and investors. The need to meet increased demand for green-technology minerals will create opportunities in the areas of recycling and recovery. Green technology transfer between Western and Chinese companies will become subject to trade disputes.

China-U.S. Trade Frictions, Opinion Divergence, and Stock Volatilities

China-US economic relation is of particular significance to the world economy. This paper aims to investigate how trade frictions influence Chinese stock market volatilities. Overall, trade frictions significantly increase large stocks' volatilities, whereas influences the SMEs differently before and after the 301 investigation. For the big caps (SSE50), opinion divergence has a partial mediation effect between trade frictions and market volatilities. Trade frictions lead to higher opinion divergence, and opinion divergence reduces market volatility before the 301 investigation and increases market volatility in Stages IV and V. This result is robust after controlling the endogeneity of opinion divergence. For the small caps (SMEs), the mediation effect has not been founddetected, but opinion divergence significantly influences stock volatility, negative before the Section 301 investigation, whereas positive after that.

Legitimation strategies in discourse surrounding Sino-American trade friction: A case study of Chinese government white papers

This article reports a critical discourse analysis of the legitimation strategies used in two Chinese government white papers about trade frictions between China and the United States. Drawing on the legitimation framework advanced by van Leeuwen to political discourse, it shows how the white papers use four main legitimation strategies: authorization, moralization, rationalization, and integration. It argues that the Chinese government uses these strategies to legitimate its responses to US trade policy and delegitimate the US government’s motives for initiating/escalating tensions. This article also discusses how the use of these legitimation strategies draws from certain traditional Chinese cultural values, such as Confucianism, the culture of face, and collectivism. This article is a part of a larger research project studying discursive strategies in trade friction discourse and hopes to shed light on the attributes and functions of this type of discourse.

The Impact of China’s Urbanization Level on Household Consumption

In recent years, household consumption has continued to be in the depression, which has restricted the healthy and sustainable development of the economy. With the deepening of the level of economic globalization, the current trade frictions are increasing, and export difficulties are expanding. The government investment to stimulate economic growth is not sustainable. Promotion of household consumption is the only way to achieve economic transformation. An important reason for the insufficient consumer demand is the lagging urbanization. This article focuses on the impact of urbanization development on consumer demand, which analyzes the effect and level of urbanization on household consumption. Based on the international experience in the development of urbanization, we try to give reasonable and orderly policy recommendations to promote urbanization.

The impact of Sino-US trade friction on Sino-Russian soybean trade cooperation

Since entering the 21st century, trade frictions between China and the United States have occurred frequently. In response to the escalation of the US provocation, China began to impose a 25 % tariff on US soybeans. The hindrance of Sino-US soybean trade has brought new opportunities for the development of Sino-Russian soybean trade. Purpose. This article analyzes the current situation of China-Russia soybean trade cooperation in the context of Sino-US trade frictions, and analyzes the current constraints and favorable opportunities in the development of the Sino-Russian soybean trade industry. Methods. The study used monographic, abstract-logical methods and the method of comparative analysis. Results. It can be said that Sino-US trade friction has objectively injected new momentum into Sino-Russian agricultural cooperation, and soybeans have become a new growth point in Sino-Russian agricultural cooperation. In the context of the “Belt and Road” initiative and the long-term trade competition between China and the United States, it is of great significance to further strengthen Sino-Russian agricultural cooperation and increase the level of agricultural trade represented by soybeans between the two countries. The scientific novelty of the research lies in the analysis of limited factors of influence and indication of a new direction of cooperation in the field of soybeans between the PRC and the Russian Federation.