Beefing Up the Service Sector: Commodity Exports to China and Production Network Spillover
This seminar will present a study exploring the global phenomenon of increased commodity exports to China, with a specific focus on Uruguay’s rapidly growing beef exports. The researchers have integrated various data sources, including customs data, tax records, and employer-employee information, to analyse the impact of this trade surge on Uruguay’s economy.
The presentation will detail the methodology used to identify effects on the production network by examining buyer-supplier linkages and changes in beef exporters’ trade with China over time. Attendees will learn about the study’s findings, which reveal a significant increase in sales for suppliers to beef exporters, particularly smaller suppliers and those in the service sector. The seminar will also cover the observed impacts on suppliers’ employment, wages, and productivity across different industries. A key component of the presentation will be the introduction of a general equilibrium model of production networks developed by the authors. The researchers will demonstrate how this model can be used to analyse the aggregate impact of surging beef exports on the economy, breaking down the effects into direct, indirect, and network.