Brown Bag Seminar（2022-03）
Topic: Political Risk Spillovers via the Production Network
Speaker: Ruichang Lu, Peking University
Time: Friday, April 22, 12:00–1:00 p.m. Beijing Time
Location: Room K03, Guanghua Building 2 & Zoom meeting room
Abstract:
We quantify the role of production linkages in explaining spillovers of political risk across industries. We aggregate the firm-level political risk to the industry level and our estimation strategy is based on a standard spatial model. We find a strong network effect of production linkages on political risk. Specifically, a 1% increase in the political risk of the production network will lead to a 0.57% increase in the political risk of the focal industry. Via the production network, the strengths of spillover of political risk are comparable to that of non-political risk. Moreover, the suppliers have a significantly larger impact on political risk spillover than the customers. The spillover strengthens also vary significantly across different types of political risks.
(with Jihai Yu)
Your participation is warmly welcomed!
