This paper shows that diaspora networks played a pivotal role in directing early foreign investment to Chinese locations with weaker institutions and in catalyzing long-run industrial development.

New at JIE: "Familiar strangers: The role of diaspora networks in foreign investment and long-run development" by Fanghao Chen, Ruichi Xiong, Xiaobo Zhang doi.org/10.1016/j.ji...

New at JIE: "Fiscal policy and inflation in the Euro Area" by Guido Ascari, Dennis Bonam, Lorenzo Mori, Andra Smadu doi.org/10.1016/j.ji...

Shipment data linked to a consumer panel show supply-chain delays and import-cost shocks raise affected firms’ own prices by lowering availability/raising costs. Rivals then also raise prices, so strategic spillovers amplify the direct effect.

New at JIE: "The price of delay: Supply chain disruptions and pricing dynamics" by Salomé Baslandze, Simon Fuchs (@foxecon.bsky.social) doi.org/10.1016/j.ji...

The US-Vietnam Bilateral Trade Agreement (December 2001) has, on average, led to greater upward absolute occupational mobility (through greater human capital investment) but lower relative occupational mobility in Vietnam. Effects vary across age groups and genders.

New at JIE: "Exports and intergenerational mobility", by Devashish Mitra (@devashishmitra.bsky.social), Hoang Pham, and Beyza Ural Marchand doi.org/10.1016/j.ji...

New at JIE: "From local to global: How foreign acquisitions reshape job mobility" by Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm, Susan Chun Zhu doi.org/10.1016/j.ji...

This paper shows that IPO approval in China boosts firm exports by over 6% annually, mainly by helping firms enter more destination-product markets. Equity financing appears to fund intangible investment and risk-taking, rather than physical capital or trade credit.

New at JIE: "Equity financing and exports: Evidence from IPO approvals in China" by Robin Kaiji Gong, Yao Amber Li, Stephen Teng Sun, Shang-Jin Wei doi.org/10.1016/j.ji...

📢 The JIE Co-Editors Conference comes to Bocconi on July 9–10! Speakers: Costas Arkolakis, Gianmarco Ottaviano, Pablo Ottonello, Javier Bianchi, Eduardo Morales, Paola Conconi, Zhen Huo, Tommaso Monacelli & Yan Bai 🔗 Program and registration: economics.unibocconi.eu/jie-co-edito...

Central bank policy decisions affect expectations driven by monetary and information shocks. In emerging markets, unexpected rate hikes raise inflation and output forecasts in the short run— consistent with New Keynesian models only when the information channel is active.

New at JIE: "Is the information channel of monetary policy alive in emerging markets?" by Mariana García-Schmidt doi.org/10.1016/j.ji...

New at JIE: "Air access to foreign markets and export-biased growth: Evidence from business entries" by Yangming Bao, Jie Li doi.org/10.1016/j.ji...

Sanctions cut trade with Russia, but firms’ voluntary exits mattered too. Using Spanish firm-level data, we find voluntary suspensions reduced exports/imports by 20%/24%, while sanctions cut them by 10%/34%. Together, they hit trade harder than sanctions alone.

New at JIE: "Reducing trade with Russia: Sanctions vs. firms’ voluntary suspension of activities" by Juan de Lucio (@juandelucio.bsky.social), Raúl Mínguez, Asier Minondo (@aminondo.bsky.social), Francisco Requena doi.org/10.1016/j.ji...

How could de-dollarization happen? Argentine firms rapidly starting invoicing international trade transactions in Chinese currency (RMB) in 2023, amid a dollar shortage. This paper studies why.

New at JIE: "How to grow an invoicing currency: Micro evidence from Argentina" by Felipe Benguria (@uky.bsky.social), Dennis Novy (@dennisnovy.bsky.social) doi.org/10.1016/j.ji...

New at JIE: "Tariffs and goods-market search frictions" by Pawel M. Krolikowski, Andrew H. McCallum doi.org/10.1016/j.ji...

The commodity boom and bust in Brazil during the 2000s and 2010s had an uneven impact on workers based on their skill and location. We develop a dynamic, quantitative, multi-region model to show how spatial linkages and downward wage rigidity shape this impact.

New at JIE: "Spatial linkages and the uneven effects of a commodity boom" by Felipe Benguria, Felipe Saffie, Shihangyin Zhang doi.org/10.1016/j.ji...

The Paris Agreement may have triggered a “burn now or never” response among fossil fuel firms. In our paper, we show that firms more exposed to climate policy increased investment after 2015, especially in fossil extraction—evidence consistent with Green Paradox dynamics.

New at JIE: "Burn now or never? Climate policy exposure and investment of fossil fuel firms" by Jakob Feveile Adolfsen, Malte Heissel, Ana-Simona Manu, Francesca Vinci doi.org/10.1016/j.ji...

New at JIE: "Trade liberalization, wage rigidity, and labor market dynamics with heterogeneous firms" by Ekaterina Gurkova, Elhanan Helpman, Oleg Itskhoki doi.org/10.1016/j.ji...

This paper studies how import liberalization affects labor markets when labor and intermediates are complements or substitutes. Using Colombian tariff cuts, authors show imports reduce wage bills via competition/cheaper inputs in agr./manufacturing, but raise them in services.

New at JIE: "Complements or substitutes? Labor market effects of foreign inputs in developing economies" by Leonardo Bonilla-Mejía, Juan Muñoz-Morales (@jmunozmorales), Román David Zárate (@romandzarate) doi.org/10.1016/j.ji...

New at JIE: "Global value chains and inflation dynamics" by Vu Chau, Marina Conesa-Martinez, Taehoon Kim, John Spray doi.org/10.1016/j.ji...

New at JIE: "The local-area incidence of exporting" by Christoph E. Boehm, Aaron Flaaen, Nitya Pandalai-Nayar, Jan Schlupp doi.org/10.1016/j.ji...

New at JIE: "Cross-border trade competition and international stock return comovement" by Sungjune Pyun, Johan Sulaeman doi.org/10.1016/j.ji...

Europe caught up to U.S. labor productivity by 1995, then fell back to 86% by 2019. Authors' GE model with Baumol cost disease + non-homothetic preferences shows labor reallocation into low-productivity services drives the reversal — a 5× bigger drag than in the U.S.