Global Sourcing, Supply Chain Restructuring, and Firm Competitiveness
Project Description
The continuing and increasing trade uncertainties have exposed firms to a global market with an unprecedented level of competition, leading to global sourcing of intermediate inputs in order to improve firm competitiveness. Nowadays, owning an efficient global supplier base constitutes an important source of firm's advantage to survive and thrive. For firms located in developing countries such as China, sourcing from foreign origins promotes firm productivity, product scope, and also affects the other aspects of firm performance. The goal of this project is to improve our understanding of the constraints that heterogeneous firms face in expanding and maintaining their global supplier network and in responding to unanticipated trade shocks to this base. As Chinese firms became more inclined to import foreign inputs, many discovered that their newly created relationships with suppliers could be harmed by unanticipated trade shocks. This risk becomes increasingly severe during the recent trade war period. We use this unique setting in China to learn how firms manage their supplier base and to obtain insight into the limits of their ability to adjust to adverse trade shocks quickly, with a particular interest in the firms that are located in the Greater Bay Area (GBA) since they are mostly export oriented and heavily participating in the global value chain.
Supervisor
LI, Yao
Quota
5
Course type
UROP1000
UROP1100
Applicant's Roles
Duties: data mining and data analysis, data collection, literature review, etc. Students are expected to continue the UROP series conditional on satisfactory performance. All students are required to sign the confidentiality agreement before they can use the confidential data provided by the supervisor.
Time commitment: average 10-20 hours per week in summer term and average no more than 10 hours per week in Fall/Spring semester.
Requirement: background knowledge of microeconomics/macroeconomics and statistics/econometrics, as well as the software Stata.
(If a student does not have any prior knowledge of Stata, she/he will need to learn how to use Stata first. The first 6 class notes with movies at the following link https://stats.idre.ucla.edu/stata/modules/ will provide a good starting point.)
Time commitment: average 10-20 hours per week in summer term and average no more than 10 hours per week in Fall/Spring semester.
Requirement: background knowledge of microeconomics/macroeconomics and statistics/econometrics, as well as the software Stata.
(If a student does not have any prior knowledge of Stata, she/he will need to learn how to use Stata first. The first 6 class notes with movies at the following link https://stats.idre.ucla.edu/stata/modules/ will provide a good starting point.)
Applicant's Learning Objectives
Primary: based on Chinese and global data, understand the characteristics of different types of firms and/or the relations between them as well as their interactions with the rest of the world, in particular, how firms respond to trade shocks by adjusting sourcing and supply chains.
Secondary: obtain more advanced knowledge of the software Stata and quantitative analysis skills.
Secondary: obtain more advanced knowledge of the software Stata and quantitative analysis skills.
Complexity of the project
Challenging