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DESCRIPTION:TDPE presents: Daniel Xu (Duke University)A\nStructural Model o
 f Demand\, Cost\, and Export Market\nSelection for\nChinese Footwear Produ
 cers Authors: Mark\nRoberts\, Daniel Xu\, Xiaoyan\nFan and Shengxing\nZhan
 g Abstract:\nIn\nthis paper the authors use micro data on both trade and p
 roduction for a sample\nof large Chinese manufacturing firms in the footwe
 ar industry from 2002-2006 to\nestimate an empirical model of export deman
 d\, pricing\, and market participation\nby destination market. They use th
 e model to construct indexes of firm-level\ndemand\, cost\, and export mar
 ket profitability. The empirical results indicate\nsubstantial firm hetero
 geneity in both the demand and cost dimensions with\ndemand being more dis
 persed. The firm-specific demand and cost components are\nvery useful in e
 xplaining differences in the extensive margin of trade\, the\nlength of ti
 me a firm exports to a destination\, and the number and mix of\ndestinatio
 ns\, as well as the export prices\, while cost is more important in\nexpla
 ining the quantity of firm exports on the intensive margin. The authors\nu
 se the estimates to analyze the reallocation resulting from removal of the
 \nquota on Chinese footwear exports to the EU and find that it led to a ra
 pid\nrestructuring of export supply sources in favor of firms with high de
 mand and\nlow cost indexes.Sponsored by Trade Development and Political Ec
 onomy at the Moynihan Institute of Global Affairs 
DTEND:20150302T223000Z
DTSTAMP:20260512T161049Z
DTSTART:20150302T210000Z
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SUMMARY:TDPE presents: Daniel Xu
UID:RFCALITEM639141846492772555
X-ALT-DESC;FMTTYPE=text/html:<p></p><p><b>TDPE presents: Daniel Xu (Duke Un
 iversity)</b></p>A\nStructural Model of Demand\, Cost\, and Export Market\
 nSelection for\nChinese Footwear Producers<p> </p>Authors: Mark\nRoberts\,
  Daniel Xu\, Xiaoyan\nFan and Shengxing\nZhang<p> </p><p>Abstract:\nIn\nth
 is paper the authors use micro data on both trade and production for a sam
 ple\nof large Chinese manufacturing firms in the footwear industry from 20
 02-2006 to\nestimate an empirical model of export demand\, pricing\, and m
 arket participation\nby destination market. They use the model to construc
 t indexes of firm-level\ndemand\, cost\, and export market profitability. 
 The empirical results indicate\nsubstantial firm heterogeneity in both the
  demand and cost dimensions with\ndemand being more dispersed. The firm-sp
 ecific demand and cost components are\nvery useful in explaining differenc
 es in the extensive margin of trade\, the\nlength of time a firm exports t
 o a destination\, and the number and mix of\ndestinations\, as well as the
  export prices\, while cost is more important in\nexplaining the quantity 
 of firm exports on the intensive margin. The authors\nuse the estimates to
  analyze the reallocation resulting from removal of the\nquota on Chinese 
 footwear exports to the EU and find that it led to a rapid\nrestructuring 
 of export supply sources in favor of firms with high demand and\nlow cost 
 indexes.</p><p><i><b>Sponsored by Trade Development and Political Economy 
 at the Moynihan Institute of Global Affairs</b></i></p><p> </p><p></p>
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