This paper provides a new theory of international capital flows. In a framework that
integrates factor-proportions-based trade and financial capital flows, a novel force emerges …

We study the implications of global supply chains for the design of monetary policy, using a
small-open economy New Keynesian model with multiple stages of production. Within the …

This paper incorporates sloping marginal cost curves and their variations across industries
into an open macro model, motivated by the fact that industries' output, imports, and exports …

Trade in intermediates, also known as unbundling of production, and trade in capital have
become increasingly important in the world economy during the last 25 years. To jointly …

In partial equilibrium, a reduction in import barriers may be thought to lead to an increase in
imports and a reduction in trade surplus. However, the general equilibrium effect can go in …

Motivated by the increased importance of trade between industrialized and less-developed
countries, we build a two-sector dynamic stochastic general equilibrium model featuring …

We analyze the impact of state ownership on firm internationalization. We propose and
explain four drivers of the variation in the internationalization of state-owned enterprises …

This paper starts by documenting a new fact that consumer price index (CPI) and producer
price index (PPI) used to move in tandem within a given country around the world, but start …

This paper studies the effects of trade liberalization on capital flows in a dynamic Heckscher-
Ohlin model and makes four contributions. First, we identify an interest rate over …

Since China joined the WTO in 2001, the Chinese economy has grown very rapidly,
especially, the tradable goods sector. However, the Chinese real exchange rate did not …