UROP Proceedings 2021-22

School of Business and Management Department of Economics 172 Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: CHEN Yi / ECOF Course: UROP1100, Fall UROP2100, Spring In UROP1100, we examine the effects of Chinese retaliatory tariffs on 5G imports under the US-China trade war, which began in 2017. Following the progress, we use a reduced-form difference-in-difference framework to investigate the direct and indirect effects on the HS-6 level. We find that the retaliatory tariffs have a negative though not significant impact on China's imports of five G-related products from the US. Furthermore, its indirect effect on five G-related imports from the rest of the world is also negative and even significant. Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: CHOW Wing Shan / ECOF LAI Cheuk Lam / ECOF Course: UROP1100, Spring UROP1100, Spring The COVID-19 pandemic has struck the global economy since 2020. As governments started to impose social distancing measures and lockdowns, it affected global supply chains and hindered economic growth with rising unemployment. This paper investigates the effect of the pandemic on the import patterns between Hong Kong and its major trading partners. We have first identified a positive correlation between confirmed COVID-19 cases and import values at the aggregate level based on the gravity model. We also applied the gravity model to product-level data, which showed a mixed result across industries. The rise in aggregate level import values over time was mainly driven by the rising demand for electronic gadgets induced by trends in remote working and the availability of digital services. However, goods such as optical equipment and meat showed a significant negative correlation with COVID-19 cases in our results. We expected an uneven recovery across sectors in the post-covid era.