UROP Proceedings 2021-22

School of Business and Management Department of Economics 171 Department of Economics Projects on International Trade, Innovation, and Corporate Finance Supervisor: GONG Robin Kaiji / ECON Student: LAM Lai Man / ECOF LEUNG Ho Fung / ECOF WONG Kelly / ECON ZOU Xinying / ACCT Course: UROP1100, Fall UROP1100, Fall UROP1100, Fall UROP1100, Fall In the UROP project, we conducted data cleaning and preliminary analysis of the IPO matching and entity list matching data. In extension to the project, this paper investigates the impact of the US-China trade war on both countries’ economies. It is found that the trade volumes of both countries decreased. The underlying factors boil down to the relocation of productions to other Southeast Asian countries and the reduction in investment in technology. It is also found that China's retaliatory tariff caused a decrease in US’s export value. Additionally, the US tariff resulted in a complete pass-through into US domestic prices. This paper concludes that both countries experienced a worse-off economy thanks to the trade war. Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: CHAN Cheuk Yin Rudolph / ECON YU Yue / MAEC Course: UROP2100, Fall UROP3100, Spring UROP1100, Fall UROP2100, Spring In our research, we have explored the export premium of Chinese manufacturing firms. By utilizing the firm production survey data and Chinese customs data, we processed firm-level information and sort out the single product firms. We then adopted De Loecker and Warzynski (2012)’s method to estimate firm-level markup and firm-level productivity. After constructing the performance measures, we regress markups on export status and controlled for marginal cost by adding TFP into the regression, we also decompose the export status into entry and exit effects. Our results showed that exporters charge on average higher markups and firms’ markups increase upon export entry.