This paper develops a quantitative model of multinational production (MP) with non-neutral technologies incorporating two stylized facts observed in a global firm-level data: first, larger firms on average use more capital-intensive technologies; second, among firms producing in the same industry and country, those from more capital-abundant home countries use more capital-intensive technologies. I quantify the model using both firm-level and aggregate moments for 37 countries. I found that the reduction in MP costs accounts for 56% of the average decline in labor shares from 1996 to 2011, and the model also replicates a negative relationship between the change in a country's labor share and the change in the foreign affiliates' output share as observed in the data.
Dr. Chang SUN
Management and Strategy
Academic & Professional Qualification
- Ph.D., Princeton University
- B.A., Tsinghua University
Chang obtained his bachelor’s degree from Tsinghua University, and a Ph.D. in economics from Princeton University. He joined the HKU Business School and the Department of Politics and Public Administration in August, 2017. His research concerns the impact of globalization, especially the patterns and consequences of multinational production.
- International Trade
- Multinational Production
- Politics of Economic Reform in China (POLI3031, 2017 fall)
- International Business Environment (STRA3702, 2018 spring)
“Factor-biased Multinational Production”
Work in Progress
- “Policy Uncertainty and FDI: Evidence from the China-Japan Island Dispute” (with Cheng Chen, Tatsuro Senga and Hongyong Zhang)
- “Demand Uncertainty and the Joint Dynamics of Exporters and Multinational Firms” (with Cheng Chen, Tatsuro Senga and Hongyong Zhang)
- “Incomplete Contracts and the Number of Suppliers”
- “Learning and Information Transmission within Multinational Corporations,” (with Cheng Chen and Hongyong Zhang), European Economic Review, 2022, 143, 104016.
- “Multinational Production with Non-neutral Technologies,” Journal of International Economics, 2020, 123, 103294.
1 Mar 2020
Journal of International Economics