Journal of International Economics

🎓 Call for Applications | JIE Summer School 2026 📍 Milan (Bocconi University) | 🗓 July 6–8, 2026 Lectures by Cécile Gaubert, Christoph Trebesch, David Hémous, Federica Romei, Christopher Clayton & Natalia Ramondo. 🗓 Deadline: Jan 25, 2026 👉 sciencedirect.com/journal/journa…

New at JIE: "Demand for safe assets and spillovers from the global dollar cycle" by Cían Allen, Rudolfs Bems, Lukas Boer, Racha Moussa doi.org/10.1016/j.jint…

@machang_china @arebucci1 @SiliZHOU Chinese private equity outflows have surged. We uncover a new international transmission channel of Chinese monetary policy via these flows, using matched stock–fund data from the Qualified Domestic Institutional Investor program and event studies around policy announcements.

New at JIE: "A nascent international financial channel of China’s monetary policy transmission" by Chang Ma (@machang_china), Alessandro Rebucci (@arebucci1), Sili Zhou (@SiliZHOU) doi.org/10.1016/j.jint…

@SangMinLee1227 This paper builds a 66-country model and estimates bilateral trade costs for goods and services from 1995 to 2018. It finds that globalization outweighs productivity growth in driving structural transformation and that globalization's impact is heterogeneous across countries.

New at JIE: "Globalization and structural transformation: The role of tradable services" by Sang Min Lee (@SangMinLee1227) doi.org/10.1016/j.jint…

Firms initially treated 2018 tariffs as temporary, delaying their exit from the markets. This "rumor of peace" stalled the trade response for years before reality set in.

New at JIE: "Trade wars and rumors of trade wars: The dynamic effects of the U.S.–China tariff hikes" by Trang Hoang, Carter Mix doi.org/10.1016/j.jint…

Reka Juhász (@juhreka13, University of British Columbia), previously an Associate Editor, will succeed her as Co-Editor. Agostina Brinatti (University of Chicago) will join the editorial team as Associate Editor starting July 1.

Mary Amiti will step down as Co-Editor on June 30, 2026, after seven years of outstanding service. We are deeply grateful for her leadership and many contributions to the journal.

@ming_jen @WIeconomics @SungJuWu Using Taiwan’s 2001 outward-FDI liberalization as a natural experiment, we show affected electronics firms were 10% more likely to invest in China. Linked employer-employee data reveal higher job turnover and wage losses for domestic incumbents, strongest for mid-wage workers.

New at JIE: "Firm and labor adjustments to FDI liberalization" by Ming-Jen Lin (@ming_jen), Yi-Ting Wang (@WIeconomics), Sung-Ju Wu (@SungJuWu) doi.org/10.1016/j.jint…

When are sector-specific price shocks magnified in GE with multiple industries/distorsions? Authors develop a framework with homothetic sectoral preferences and derive a sufficient statistic for the share of the direct effect of the shock that materializes in the aggregate.

New at JIE: "Intersectoral demand linkages: Good shocks, bad outcomes?" by Kristian Behrens, Sergei Kichko, Philip Ushchev doi.org/10.1016/j.jint…

It was a great weekend at the JIE-GCAP-GSB Conference on Geoeconomics (globalcapitalallocation.com/jiegcapbgs), and we thank the presenters and discussants for joining us. We are grateful to @StanfordGSB and @JIntlEcon for making this event possible.

@uos_official_ @OhioState Agents do not internalize the impact of investment on sovereign bond prices, investment is insufficient, and a subsidy improves welfare. Yet, if the sovereign is impatient, due to political economy factors, it finds private capital accumulation excessive and prefers to tax it.

New at JIE: "Insufficient or excessive investment under sovereign default risk" by Ilhwan Song (@uos_official_), Gabriel Mihalache (@ohiostate) doi.org/10.1016/j.jint…

@ShuLin58005151 Authors study how two significant conflicts between China and the U.S.—the Korean War and the current trade war—affect global supply chains, and find that the death toll from the Korean War in a chairperson’s city of origin influences Chinese firms’ selection of suppliers today.

New at JIE: "Historical military conflict, current trade tensions, and global supply chains" by Yichuan Hu, Chang Li, Shu Lin (@ShuLin58005151) doi.org/10.1016/j.jint…

@Columbia @EricMengus @TomKMichalski We document and model four key facts: the universality of labor market polarization in cities; a city-size difference in the shock magnitudes; a skew in the types of middle-paid jobs lost; and the role of polarization in the great urban divergence of high vs. low-paid jobs.

New at JIE: "Labor market polarization and the great urban divergence" Donald R. Davis (@Columbia), Eric Mengus (@EricMengus), Tomasz Michalski (@TomKMichalski) doi.org/10.1016/j.jint…