Mary Amiti, Mi Dai, Robert Feenstra, John Romalis, 28 June 2017

China has become the world’s largest exporter, with a rapid rise in its world trade share just after it joined the WTO in 2001. This column finds that China’s WTO entry reduced the US manufacturing price index by 7.6% between 2000 and 2006, with most of this effect arising from China reducing its own import tariffs. US consumers gained because they paid less for manufactured goods and because they had access to more varieties of goods.

Kenta Ikeuchi, Kazuyuki Motohashi, Ryuichi Tamura, Naotoshi Tsukada, 28 June 2017

There is growing interest in measuring the scientific aspects of industrial innovation and performance to understand the economic impact of publicly funded R&D. This column presents new indicators for science-industry linkages in Japan based on a novel dataset combining academic research paper data, patent data, and economic census data. It finds that the academic sector is getting more involved in patenting activities, and that scientific knowledge generated in the sector is being utilised not only in science-based industries, but also in many others.

Thomas Le Barbanchon, Roland Rathelot, Alexandra Roulet, 27 June 2017

The generosity of unemployment insurance can influence the time and energy job seekers dedicate to searching for a job, as well as the jobs they are willing to accept. Yet we know little about how unemployment insurance affects the reservation wages of the unemployed. Using new French data, this column shows that increasing unemployment generosity does not affect the reservation wages or the ‘pickiness’ of job seekers.

Ross Levine, Chen Lin, Zigan Wang, 26 June 2017

While the causes and consequences of mergers have received a lot of scholarly attention, geographic factors have thus far been neglected. Using US data, this column argues that greater geographic overlap of the subsidiaries and branches of two bank holding companies increases the likelihood of the two merging, and also boosts the cumulative abnormal returns of the acquirer, target, and merged companies. It also discusses how network overlap can affect synergies and value creation.

Marc Auboin, Floriana Borino, 26 June 2017

In recent years there has been debate over whether the global trade slowdown and related fall in trade-to-income elasticity was structural or cyclical. This column estimates the standard import equation for 38 advanced and developing economies using an import intensity-adjusted measure of aggregate demand. This measure allows the authors to predict 90% of changes in global imports. The slowdown in global value chains explains more than half of the remaining share of the global trade slowdown, while protectionism does not appear to be statistically significant.

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