报告题目：A Model of Trade with Endogenous Product Design
报告人：Xiaoping CHEN (Assistant Professor of Economics, Nanyang Technological University)
We study a model of international trade in which firms choose between a broad product design that targets mainstream consumers, and a niche product design that targets specific market segments. Assuming that local firms have absolute advantage in providing niche products, we show that in equilibrium, the more efficient firms adopt a board design and export whereas the less efficient firms adopt a niche design and do not export. A reduction in trade cost encourages efficient firms to adopt a board design and export, whereas it encourages inefficient firms to adopt a niche design. Consequently, trade liberalization changes the composition of product types in the market, which in turn affects consumers welfare. Our analysis illustrates a novel possibility that trade liberalization could have a negative impact on welfare if it leads to an increase in the proportion of firms adopting board designs which provide a low consumer surplus.
Ph.D.in Economics, Boston College, USA, 2013
B.A. in Economics, Tsinghua University, China, 2008
Research Fields: International Trade; Trade Policy; Political Economy; Personnel Economics
Publications and Working Papers:
1. Product Cycle, Contractibility and Global Sourcing, with Yi Lu (NUS) and Lianming Zhu (Kyoto), Journal of Development Economics.
2. Skill Distributions, Effective Endowment and Trade, (under review)
3. Non-Neutral Technology, Endowment, and Trade, with Hongsong Zhang (HKU)
4. Goods vs. Territories: A Tale of Two Gravities, with Ben Li (BC) and Jay Bowman (BC)
5. Product Cycle, Knowledge Capital and Comparative Advantage, with Yuchen Shao (NJU)
6. Revisit the Linder Hypothesis with International Fragmentation, with Yi Lu (NUS) and Yunong Li (SWUFE)
7. Book Review on ‘Introduction to Numerical Simulation for Trade Theory and Policy’ by John Gilbert and Edward Tower for Singapore Economic Review.
Grants: MOE Tier 1 Grant, “The Implications of Global Production Network”, 2015-2018