Seminar in International Economics: Trade and Industrial Policy in Supply Chains: Directed Technological Change in Rare Earths
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Join Harald Fadinger as he reveals how restricting critical inputs can unintentionally fuel foreign innovation and expand downstream industries worldwide.
The Competence Centre for International Economics Research (FIW) kindly invites to participate in the Seminar in International Economics on the topic
Trade and Industrial Policy in Supply Chains: Directed Technological Change in Rare Earths
Trade and industrial policies restricting critical inputs can inadvertently promote foreign downstream industries via a directed technological response. We provide evidence for this mechanism by examining rare earth elements (REEs) – critical manufacturing inputs with highly concentrated production and low substitutability. We show that China’s REE export restrictions in 2010 induced a surge in global innovation increasing REE input-efficiency and exports in REE-intensive industries. A quantitative trade model with Heckscher-Ohlin-based comparative advantage, directed technological change and input-output linkages rationalizes how input-supply restrictions induce REE-enhancing innovation and expand REE-intensive industries abroad. This directed technological response substantially mitigates foreign welfare losses.
The paper can be downloaded here.
Registration: This is an online event – please register here
Language: English
Speaker: Harald Fadinger is a Professor of Economics at the University of Vienna. He is also a Research Fellow in the areas Trade and Regional Economics and Climate Change and the Environment at the Centre for Economic Policy Research (CEPR), London/Paris, and a Senior Research Fellow at the Institute for Advanced Studies (IHS) Vienna. His main research interests are international trade, economic growth, international macroeconomics, organizational economics and environmental economics. His current research focuses on international competitiveness, productivity, trade and industrial policy, labor markets, firm organization and the link between trade and the environment.
He holds degrees in Economics and in Law from the University of Vienna. Harald Fadinger did his graduate studies at Pompeu Fabra University, Barcelona, where he obtained an M.Sc. and a Ph.D. in Economics. Prior to joining the University of Vienna, he was a Marie Curie Fellow at Université Libre, Brussels (ECARES), Assistant Professor of Economics at the University of Vienna and Associate and Full Professor of Economics at the University of Mannheim.
This event is co-organised with the Research Centre International Economics (FIW). The seminar provides a forum for presentation and discussion of recent academic research in the field of international economics.
The event will be recorded.
