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Date and Location

March 20, 2024
10:00 AM - 11:30 AM ET
Online

Contact

617-384-0025
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The Growth Lab's Research Seminar series is a weekly seminar that brings together researchers from across the academic spectrum who share an interest in growth and development. 



Speaker: Luis M. Espinoza Bardales, Ph.D. candidate in Economics from University of Michigan, Former CID Research Fellow.​



Location: Online only. Please register​ in advance. 
Abstract: This paper explores how contracting frictions and geography influence the trade costs faced by multinationals' affiliates located in Mexico relative to domestic firms. Luis documents two key facts. First, distance to firm’s home countries influences firms’ sourcing patterns. Second, sectors with a larger presence of foreign affiliates are more intensive in relationship-specific inputs. He develops a small open economy model with multiple sectors, imperfect contracting, input relationship-specificity, global sourcing and multinational production. Luis computes a set of counterfactual equilibria to gauge the relative importance of contracting frictions, trade costs, and productivity in the price advantage of multinationals over domestic firms. He finds small median differences between foreign and domestic firms regarding inward trade and contracting costs, with high variability across industries and home countries. 

Organizer

Additional Organizers

​Growth Lab