Clemens Otto, Assistant Professor of Finance and BNP Paribas Fellow at Singapore Management University Lee Kong Chian School of Business
We study the impact of upstream tariffs on downstream investment in US manufacturing firms. Exploiting tariff reductions following multinational trade agreements (GSP, GATT, NAFTA) in a difference-in-differences framework, we estimate that a 10 per cent decrease of upstream tariffs entails an increase in downstream investment by four per cent to six per cent. We also find that lower upstream tariffs are followed by higher downstream output, employment, and total factor productivity. Extending the analysis beyond import tariffs, we use the sudden increase in Chinese import penetration in an instrumental variable estimation and show that higher import competition upstream leads to higher investment downstream.
Speaker bio
Clemens Otto is Assistant Professor of Finance and BNP Paribas Fellow at Singapore Management University Lee Kong Chian School of Business. His research interests are in behavioural finance, financial contracting, and corporate disclosure. Prior to joining SMU in 2017, he was at HEC Paris. He obtained his PhD in finance from London Business School in 2012.
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Event timings
Date:
20 October 2020
Start Time:
13:00
End Time:
14:00