Welcome to my homepage.
I am a Ph.D. Candidate in Economics at the University of Colorado at Boulder.
I am on the job market for the academic year 2013-2014, and I will be available for interviews at the 2014 AEA/ASSA meetings in Philadelphia.
Economic Development, Technological Change, and Growth
In particular, the dynamics of the global value chain and multinational production, and the welfare consequences of the evolution.
Please click HERE for my Curriculum Vitae.
Department of Economics
University of Colorado at Boulder
Boulder, CO 80309
This paper develops a theory of the evolution of global production and the aggregate welfare effects it has. In my task-based growth model, a learning-by-doing mechanism enables firms to improve their production efficiency, giving rise to task upgrading in firms and countries that are engaged in global production. In a North-South framework, both the technologically advanced North and the lagging South move up the global value chain through this self-reinforcing process. I characterize the evolution of welfare in the steady state and during the transitional period. While non-monotonic welfare effects may exist in the short run, both countries gain from openness to offshoring in the long run, provided that they both undertake manufacturing activities. The model yields testable predictions for the share of industry value added in each country over time. When I confront the model with data on multinational subsidiaries in China, there is strong support for the key predictions of my model.
We provide a unified theory that describes how the global value chain evolves over time. Both developing countries (South) and developed countries (North) move up the global value chain. The South moves up by conducting more and increasingly sophisticated tasks, while the North by specializing in fewer and highly sophisticated tasks. During this process, given the South's lower factor prices, the North offshores to the South tasks that are both within and moderately beyond the South's technological readiness, a practice that makes more Northern tasks offshorable to the South through learning-by-doing. This process continues until the allocation of tasks in global production converges to a steady state. Prior to reaching the steady state, both the South and the North have increasing productivity, and the wage dynamics reflect both productivity and relative labor demand. We also provide an empirical approach to test this stylized theory using commonly available firm-level data. An application of this approach to data from China shows a salient convergence in global production, as predicted by the theory.
This paper develops a task-based theory of multinational production in which countries can learn or innovate for productivity enhancement. The interaction between the pace of innovation and that of learning in different countries determines the organization dynamics of global production. The model provides predictions and explanations for the dynamics of offshoring and reshoring, where tasks previously offshored are moved back to the originating home country.
"International Labor Standards and International Competitiveness: A Human Capital Perspective," (with Yueyong Wang), Research on Economics and Management (in Chinese), 2007 (8), 87-91.
"Ecological Economics of Water in China: Towards a Sustainable Water Quality Management Regime," (with Haider Khan), in A. Usha (Ed.), Law of Water : Global Perspectives, ICFAI University Press, 2008.
"Management Orientation Characteristics and Influencing Factors: A Case Study on the Founders and Senior Management Teams of Two Successful Private Enterprises in China," (with Yongrui Li and Liheng Xia), Journal of Management Case Studies (in Chinese), 2011, 4(2), 138-147.