Macroeconomic impact of the Sino–U.S. trade frictions: Based on a two-country, two-sector DSGE model

Yang, Shanran; Shi, Benye; Yang, Fujia

doi:10.1016/j.ribaf.2023.101956

Cited by 9 publications

(2 citation statements)

References 38 publications

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“…We collected all firms' financial data from the China Stock Market and Accounting Research (CSMAR) database, which is one of the largest data sources for listed Chinese firms (Wang & Qian, 2011). Since Donald Trump announced in 2018 that the U.S. would impose punitive tariffs on imports from China, it has not only directly affected trade between the two countries but also indirectly impacted output, employment, and incomes in non-traded sectors (Yang et al, 2023). It has worsened the local innovation environment in China and also damaged the business behavior of innovation firms (Chen et al, 2023).…”

Section: Methodology Sample and Data Collectionmentioning

confidence: 99%

How Does Time Synchronization Affect Innovation Quality?

Si,

Liu,

et al. 2024

Journal of Global Information Management

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How location choice influences innovation in MNCs has been the subject of controversy, and the examination of geographic concentration or dispersion is particularly insufficient. The question is, how will the decentralization or centralization of MNCs affect the communication and management of information among employees. To address this deficiency, this study introduces the concept of time synchronization and attempts to examine the relationship between MNCs location choice and corporate innovation quality from a new perspective. By gathering data from the Chinese internationalized firms, we found that time synchronization between parents and subsidiaries is positively associated with the innovation quality of parent firms, and the degree of digitization strengthens this positive relationship. This study underscores the crucial role of overlapping work time for employee interactions between parents and subsidiaries to acquire information in comprehending and absorbing overseas knowledge to improve the innovation quality of parent firms.

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Section: Methodology Sample and Data Collectionmentioning

confidence: 99%

How Does Time Synchronization Affect Innovation Quality?

Si,

Liu,

et al. 2024

Journal of Global Information Management

View full text Add to dashboard Cite

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“…In the parameter calibration phase of this study, we anchored our choices in the academic literature explicitly pertaining to the Chinese sphere. Guided by the studies of Yang et al [47] and He [48], we selected a discount factor of 0.99. The proportion of domestic goods in consumption, influenced by the research of Jin et al [49], Wang and Yao [50], and Ma [51], was established at a value of 0.5.…”

Section: Parameter Calibration and Estimationmentioning

confidence: 99%

Assessing the Macroeconomic Consequences of External Financial Upheavals on China: A Caution of a Silicon Valley Bank’s Collapse

Wang,

2023

Axioms

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In the context of an increasingly interconnected global economy, deciphering the complex ripple effects of external financial disruptions on national economies is a task of utmost significance. This article dives deep into the intricate repercussions of such disturbances on the macroeconomic dynamics of China using the example of the potential insolvency of a Silicon Valley bank. Grounded in empirical scrutiny, we leverage data spanning from Q1 2000 to Q1 2022 and the analytical utility of the impulse response function to illuminate our findings. We find that external financial tumult triggers a global recession, adversely impacting China’s export-driven economy while simultaneously unsettling aggregate output, employment levels, and wage stability. Simultaneously, these disruptions induce variability in consumption tendencies, investment trajectories, and import volumes and inject instability into interest rate paradigms. We also acknowledge the potential for currency depreciation and bank insolvency incidents to induce inflationary stresses, primarily by escalating the costs of imports. However, these inflationary tendencies may be offset by the concomitant economic slowdown and diminished demand inherent to global recessions. Importantly, the tightening of global credit conditions, coupled with existing financial ambiguities, may obstruct investment initiatives, curtail imports, and exert influence on both risk-free and lending interest rates. Our investigation also probes into the response of the Chinese government’s monetary policy to these external financial shocks. Despite the vital role of monetary policy in alleviating the impacts of these shocks, the potential secondary effects on China’s domestic economy warrant attention. Our study underscores the imperative of proper policy design rooted in a profound understanding of the intricate economic interdependencies for effective management and mitigation of the potentially detrimental consequences of such financial upheavals on China’s macroeconomic resilience within the tapestry of a tightly knit global financial ecosystem.

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