Mr Hanwei Huang

Mr Hanwei Huang

PhD Candidate in Economics

Department of Economics

Telephone
+44 (0)74 5029 0090
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About me

Research interests
International Trade (primary)
Economic Development, Economic History (secondary)

Job market paper
Germs, Roads, and Trade: Theory and Evidence on the Value of Diversification in Global Sourcing

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This paper studies the value of diversification in global sourcing in improving firms' resilience to supply chain disruptions. I build a model in which firms select into importing from countries and via customs with different efficiencies, taking into account domestic and international trade costs. The model predicts that high productivity firms are more geographically diversified in sourcing under input complementarity, which makes them more resilient to adverse shocks on the supply chain than low productivity firms. Reductions in trade costs induce firms to further diversify their sourcing strategies. I then exploit the 2003 SARS epidemic as a natural experiment to examine the resilience of Chinese manufacturing importers. Firm imports fell by 7.9% on average when the trade route was hit by SARS, but as much as 52% for firms without any diversification. The disruptions led to smaller increases in marginal cost for firms with more trade routes for imports. The epidemic reduced total Chinese manufacturing outputs by about 0.7% at its peak. Connectivity to roads increased firms' resilience to the epidemic by facilitating input diversification.

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Publications and additional papers

Contacts

Placement Officer
Professor Wouter Den Haan

Supervisor
Professor Gianmarco Ottaviano

Advisors
Dr Thomas Sampson
Dr Catherine Thomas

References
Professor Robin Burgess
Professor Gianmarco Ottaviano
Dr Thomas Sampson
Dr Catherine Thomas

Contact information

Phone number
+44 (0)74 5029 0090

Email
h.huang7@lse.ac.uk

Room number
32L.2.35D

Office Address
Department of Economics,
London School of Economics and Political Science,
Houghton Street, London WC2A 2AE