[TUMES] The Value of Trademarks: Micro Evidence from Chinese Exports to Africa (Jan 19, 2023)

Tohoku University Modern Economics Seminar (TUMES)

Next seminar

DateJanuary 19, 2023 (Thursday)
Time16:20 — 17:50
Venue文科系総合研究棟 第21演習室 + オンライン
C-14 Building (10F)
Speaker黒石悠介 (Yusuku Kuroishi)
InstitutionHitotsubashi University
TitleThe Value of Trademarks: Micro Evidence from Chinese Exports to Africa
AbstractThis paper studies trademarks in developing countries. I introduce a trademark as a technology to mitigate information frictions in a general equilibrium setting with firm heterogeneity. In my model, highly productive firms are more likely to use a trademark since the revenue increase outweighs the trademark cost only for these firms. This leads to reallocation away from less productive firms. I test my predictions using Chinese exports to Africa in the tire industry. I exploit a sudden change in the member countries ratifying an international trademark agreement. My empirical findings support my predictions. At the extensive margin, a Chinese exporter decreases the probability of exporting to the ratifying countries. On the intensive margin, a large exporter earns more by using a trademark while a small exporter does not use a trademark and its market size shrinks. A back-of-the-envelope calculation suggests welfare increases by 0.014% in Africa through the use of trademarks in the ratifying countries’ tire industries.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s