K.C. Fung, Lurong Chen and Alicia Garcia-Herrero
The purpose of this paper is to investigate what affects trade in parts and components, particularly for Latin America and East Asia.
Abstract
Purpose
The purpose of this paper is to investigate what affects trade in parts and components, particularly for Latin America and East Asia.
Design/methodology/approach
The methodology includes using data analysis as well as regressions
Findings
The main findings show that logistics and infrastructure are among the most important determinants of supply chain trade. For Latin America to participate more in such trade, the region should attract more foreign direct investment, including direct investment from China in transportation, roads and ports as well as infrastructure in general.
Originality/value
This paper is among the first in the literature to conduct regression analysis on trade in parts and components.
Details
Keywords
Alessandro Rebucci, Jonathan S. Hartley and Daniel Jiménez
This chapter conducts an event study of 30 quantitative easing (QE) announcements made by 21 central banks on daily government bond yields and bilateral US dollar exchange rates…
Abstract
This chapter conducts an event study of 30 quantitative easing (QE) announcements made by 21 central banks on daily government bond yields and bilateral US dollar exchange rates in March and April 2020, in the midst of the global financial turmoil triggered by the COVID-19 outbreak. The chapter also investigates the transmission of innovations to long-term interest rates in a standard GVAR model estimated with quarterly pre-COVID-19 data. The authors find that QE has not lost effectiveness in advanced economies and that its international transmission is consistent with the working of long-run uncovered interest rate parity and a large dollar shortage shock during the COVID-19 period. In emerging markets, the QE impact on bond yields is much stronger and its transmission to exchange rates is qualitatively different than in advanced economies. The GVAR evidence that the authors report illustrates the Fed’s pivotal role in the global transmission of long-term interest rate shocks, but also the ample scope for country-specific interventions to affect local financial market conditions, even after controlling for common factors and spillovers from other countries. The GVAR evidence also shows that QE interventions can have sizable real effects on output driven by a very persistent impact on long-term interest rates.
Details
Keywords
– The purpose of this paper is to examine various aspects of regional and global production networks, with a special focus on China.
Abstract
Purpose
The purpose of this paper is to examine various aspects of regional and global production networks, with a special focus on China.
Design/methodology/approach
The author studies four different approaches to measure production networks and discuss their strengths and weaknesses. The author presents some of the results associated with some of these measurements.
Findings
The author finds that using trade data alone is simple but incomplete. Bringing in input–output tables is useful but much more data would be needed. In addition, for the case of China, electronic goods and telecommunication goods tend to have a higher foreign value added.
Research limitations/implications
Data with good quality can be a problem. The authors also have difficulty getting input–output tables for many years.
Practical implications
The results can guide policymakers as to which industries can create more domestic value added. The results can also lead to betting of an understanding of trade balances measured in the value added.
Social implications
The results can generate further understanding among citizens of many different countries, including China, about the importance of different sectors in generating the value added.
Originality/value
The value of this paper is to focus on alternative ways to measure the value added in exports from China. The paper is the first to discuss the strengths and weaknesses of different approaches and present some of these results.