French-Japanese
Webinar inEconomics (FJWE)

French-Japanese Webinar in Economics
Main objectives
This webinar (virtual seminar) aims to bring together researchers from Japaneseand French universities, research centers and economic policy think tanks toexchange and share their research results (work in progress, finalized papers,drafts, informal talks) on all aspects of economics (both theoretical and empirical
work in any subject of the field).
This webinar is a good platform to discuss the most recent innovations andtrends as well as challenges in different fields of Economics. It is also anopportunity to establish collaborations between French and Japanese colleagues
and researchers.

French-Japanese Webinar in Economics
Organization
The organization of the webinar is under the responsibility of two researchers,
one in Japan and the other in France. For the period from February 2024 toDecember 2024, Prof. Kiyotaka Sato from Yokohama National University (YNU)
and Prof. Gilles Dufrénot from the Aix-Marseille School of Economics andSciences Po Aix will take on the responsibility of the seminar.

The principle of organization is as follows. Once a month, two researchers fromeach country (France and Japan) present a paper. Each presentation lasts 30
minutes and is followed by another 30 minutes discussions/questions with theparticipants. The webinar therefore lasts two hours in total.

French-Japanese Webinar in Economics 2014
Time schedule
Summer time (from the last week of March to the third week of October)France 10:00-12:00
Japan 17:00-19:00
Winter time (from the last week of October to the third week of March)
France 9:00-11:00
Japan 17:00-19:00

16 February 2024
France 09:00-10:00 Japan 17:00-18:00

Presenter 1 : Federico Trionfetti, Aix-Marseille School of Economics

Topic : Migration
Title : Immigration and the skill premium
Co-authors : Daniela Maggioni, Alessia Lo Turco,Web page

Abstract

Paper available : No

We investigate the impact of immigration of low skilled workers on the skill premium. According to standard theoreticalpredictions, we expect to find a positive relationship due to the increase in the relative supply of unskilled labour. Using
data for the Italian economy between 2008 and 2013 we find no significant impact. We rationalise this puzzle byintroducing matching, screening, and firm-level wages in a two-sector, two-goods closed economy. In this model,
immigration causes a reduction in the relative cost of matching with unskilled labour. As a consequence, firms reduce theirskill-intensity as well as the relative severity of screening skilled workers. The latter effect follows from the fact that thebenefits of the screening activity accrue to a relatively smaller number of workers. The relative ability of skilled workers
then declines and may compensate or offset the increase in the skill premium induced by the reduction in the skill ratio. By
estimating a proxy for relative ability of the skilled, we indeed find evidence that migration flows from low and middle
income countries into Italian regions have caused a reduction in the relative ability of skilled workers within sectors. We
also estimate the welfare consequences of low-skill immigration factor

Keywords : Matching, screening, skill-intensity, factor relative ability
JEL Codes: F22; J61; F16; D24

16 February 2024
France 10:00-11:00 Japan 18:00-19:00

Presenter 2 : Uraku YOSHIMOTO, Ministry of Finance, Japan

Topic : International Finance
Title : Invoice Currency Choice in Intra-Firm Trade: A Transaction-Level Analysis of Japanese
Automobile Exports
Co-authors : Taiyo Yoshimi, Kiyotaka Sato, Takatoshi Ito, Junko Shimizu, Yushi Yoshida
Web pageAbstract

Paper available : Yes

This study empirically investigates how the invoice currency choice differs between intra-firm and arm’s-length exports.
We also examine whether other firm- and product-level characteristics affect the choice of invoice currency. This study isthe first to be granted access to highly disaggregated transaction-level trade data for Japan. Focusing on Japanese
automobile exports to France, we demonstrate that the importer’s currency tends to be chosen in intra-firm export
invoicing based on a panel logit estimation. Our empirical findings remain robust when different types of intra-firm export
variables and other conventional explanatory variables are introduced, such as firm and product market share, exchange
rate volatility, a dummy for intermediate goods exports, euro-invoiced imports, labor productivity, and research anddevelopment intensity. Given growing intra-firm trade and expanding global value chains, Japanese parent firms tend to
invoice in the importers’ currency, assuming the foreign exchange risk that arises from intra-firm trade. Thus, exchange
rate risk management is a significant consideration for Japanese parent firms.

Keywords: Invoice currency; intra-firm trade; Japan Custom’s data; market share; export competitiveness
JEL Codes: F14, F31

29 March 2024
France 9:00-10:00 Japan 17:00-18:00

Presenter 1 : Jamel Saadaoui, University of Strasbourg

Topic : Real exchange rates
Title : Real Exchange Rate and International Reserves in the Era of Financial Integration
Co-authors : Joshua Aizenman, Sy-Hoa Ho, Luu Duc Toan Huynh, Gazi Salah Uddin
Web page

Abstract

Paper available : here

The global financial crisis has brought increased attention to the consequences of international reserves
holdings. In an era of high financial integration, we investigate the relationship between the realexchange rate and international reserves using nonlinear regressions and panel threshold regressions
over 110 countries from 2001 to 2020. Our study shows the level of financial-institution development
plays an essential role in explaining the buffer effect of international reserves. Countries with a low
development of their financial institutions may manage the international reserves as a shield to deal
with the negative consequences of terms-of-trade shocks on the real exchange rate. We also find thebuffer effect is stronger in countries with intermediate levels of financial openness.
Keywords : International Reserves, Financial markets, Real exchange rate
JEL Codes: F30, F40, F44

29 March 2024
France 10:00-11:00 Japan 18:00-19:00

Presenter 2 : Nagendra SHRESTHA, Yokohama National University

Topic : Global Input-Output Analysis
Title : Measuring Economic Importance of a Country in Global Context
Co-authors :Web page

Abstract

Paper available : No

Global economy is interlinked in complex manner with different countries in the World. Somehow it is difficult to measureabsolute economic importance of a country, as other non-economic factors such as politics, geography, social conditions
etc. also play significant roles to promote the economic linkages globally. Here, we attempt to measure an economic
importance of a country with others by addressing global economic linkages as traced by Global Input-Output framework
in 2020. The salient feature of this paper is to use newly complied Global Input-Output table in real terms (subject toindustry-specific prices and country-specific exchange rates) by hypothetically extracting a country of interest from the GIO
table. In contrast to the conventional method of hypothetical extraction that uses same input and value-added coefficient
before and after the extraction to measure the inducements, we try to reflect the change in input and value-added
coefficients caused by new trade structure under the assumption that the country of interest does not produce, consume,and trade with other countries hypothetically. Our preliminary results show that China and the US have largest influenceon the induced global production and the global value-added respectively. Interestingly, Japanese importance seems to be
weaker than Korean influence if the inducement of global production is concerned.

Keywords : Real Global Input-Output tables, Hypothetical Extraction Method, Economic Importance, Production
inducements, Value-added inducements

JEL Codes: C67, F01, F60

12 April 2024
France 10:00-11:00 Japan 17:00-18:00

Presenter 1 : Laurent Ferrara, Skema Business School

Topic : Weather shocks and productionTitle : Dynamic effects of weather shocks on production in European economies
Co-authors : Daniele Columbo
Web page

Abstract

Paper available : here

The global financial crisis has brought increased attention to the consequences of international reserves
holdings. In an era of high financial integration, we investigate the relationship between the realexchange rate and international reserves using nonlinear regressions and panel threshold regressions
over 110 countries from 2001 to 2020. Our study shows the level of financial-institution development
plays an essential role in explaining the buffer effect of international reserves. Countries with a low
development of their financial institutions may manage the international reserves as a shield to deal
with the negative consequences of terms-of-trade shocks on the real exchange rate. We also find thebuffer effect is stronger in countries with intermediate levels of financial openness.
Keywords : Weather shocks, Bayesian VAR, Non-linear local projection, European production
JEL Codes: C32, E23, Q54

12 April 2024
France 11:00-12:00 Japan 18:00-19:00

Presenter 2 : Tomoo INOUE, Seikei University

Topic : International trade and business cycle
Title : Exploring the Macroeconomic Interdependence of East Asian Countries: A GVAR ApproachCo-authors : Tuan Khai Vu
Web pageAbstract

Paper available : No

Over the past few decades, with rapid economic growth, East Asia has also experienced deepening
economic integration with active intraregional economic activities such as trade and investments. Thisdevelopment has contributed to the complex and possibly time-varying macroeconomic
interdependence of countries in the region. To understand this interdependence more fully, this study
aims to employ the Global Vector Autoregressive (GVAR) model. This model is useful because it cancomprehensively capture the interdependence of domestic macroeconomies in the region andquantitatively describe the impact of shocks that occur in East Asian countries on the macroeconomiesof other countries. By incorporating changes in trade relations over time, the model can capture thetemporal evolution of shock propagation through supply chains. Furthermore, the idea of connectedness
measures, developed by Diebold and Yilmaz (2009), will be applied to quantify changes in theinterdependence of East Asian countries over the past 40 years.
Keywords : Business cycle; Connectedness; Global Vector Autoregression; Trade Linkage
JEL Codes: C32, C53, F62

24 May 2024
France 10:00-11:00 Japan 17:00-18:00

Presenter 1 : Cecilio Tamarit, University of Valencia

Topic : Global value chains
Title : Globalisation and unemployment in the EU: new insights on the role of global value chains andworkforce composition
Co-authors : Mariam Camarero, Antonia Lopez-Villavicencio

Web page

Paper available : here

Abstract
The participation of the European Union in Global Value Chains (GVCs) is significantly higher comparedto North America and Asia and it has steadily increased with the creation of the Single Market and thelaunching of the euro. We provide empirical evidence on the consequences of GVC participation on
aggregate unemployment. Using data for EU countries and impulse response functions derived fromlocal projections, we show that a higher participation reduces the unemployment rate in less advanced
EU economies while it increases it in core countries. Our results also show that unemployment isparticularly sensitive to GVCs when the labour cost is low.
Keywords : Global value chains, EU, Local projections, unemployment
JEL Codes: C32, F14, F15, F62

24 May 2024
France 11:00-12:00 Japan 18:00-19:00

Presenter 2 : Yuki MASUJIMA, Deloitte Tohmatsu Financial Advisory LLC

Topic : International Finance
Title : Drivers of Post-Pandemic Currency Movement: Recurring Impacts of Sovereign Risks and OilPricesCo-authors : SATO, Yuki

Web page

Paper available : NoAbstract
This paper tries to investigate the driving factors of FX rates, focusing on the roles of sovereign credit
risks and energy prices in the post-pandemic period. We find that the yen’s safe-haven status weakened,
and the European currencies became more sensitive to debt risks and fragile to uncertainty. The yen’ssensitivity to higher sovereign risks picked up after the introduction of the yield curve control (YCC)
policy implemented by the Bank of Japan (BOJ), even if its policy could have reduced the volatility ofJapan’s credit default swap (CDS) rates. Moreover, the type of shock (supply or demand) may change theimpacts of oil prices on FX moves.

Keywords : CDS, Oil Prices, Post-COVID-19, Safe-haven CurrencyJEL Codes: E44; F31; G15

21 June 2024
France 10:00-11:00 Japan 17:00-18:00

Presenter 1 : Cristina Terra, ESSEC Business School

Topic : Gender wage gap
Title : Gender Wage Gap and Job FlexibilityCo-authors : Gustavo Gonzaga and Maria Oaquim
Web page

Paper available : NoAbstract
We investigate the impact of two dimensions of job flexibility on the gender wage gap(GWG): one related to the characteristics of the occupation itself and another specific to thefirm. Using a large administrative dataset for Brazil, we find that: (i) both the occupationand the firm dimensions of job inflexibility pay wage premiums; (ii) these wage premiums
are larger for men compared to women; and (iii) the two dimensions of job inflexibility feedeach other back, magnifying their widening impact on the GWG in favor of men.
Keywords : Gender wage gap, job flexibility
JEL Codes:

21 June 2024
France 11:00-12:00 Japan 18:00-19:00

Presenter 2 : Sheue Li ONG, Universiti Malaya

Topic : Economic Integration
Title : Is the Chinese Renminbi Becoming a Regional Key Currency?
Evidence from Industry-Specific Real Exchange Rate Convergence and Latent Dynamics
Co-authors : Kiyotaka SatoWeb page

Abstract

Paper available : Not yet

This research explores the intricate dynamics of economic integration in Asia and Europe, assessing the degree of realexchange rate (RER) convergence. Departing from conventional bilateral RER calculations based on the Consumer Price
Index (CPI), we utilize industry-specific RER based on the Producer Price Index (PPI) to evaluate RER convergence towards
regional key currencies—the Chinese renminbi (RMB) in Asia and the euro in Europe. We specifically focus on RERs inthree pivotal machinery industries—general machinery, electric machinery, and transport equipment—as significant
drivers of regional and global supply chains. Employing a state space model, we aim to estimate industry-specific RER
convergence and discern nuanced time variations in RER adjustment speeds across regional countries. The dynamic factor
model (DFM) decomposes RER convergence dynamics for each regional country, identifying relative contributions from
common global (US), regional (Asia or Europe), and idiosyncratic (country-specific) factors. This approach provides
comprehensive insights into the intricacies of economic integration in Asia and examines the role of the RMB as a regional
key currency.

Keywords : Economic integration; real exchange rate convergence; Chinese RMB, dynamic factor model
JEL Codes: C32, F15, F33, F36

Contact us

Kiyotaka Sato
Professor of Economics
Department of Economics
Yokohama National University79-3 Tokiwadai, Hodogaya-ku
Yokohama, 240-8501, Japan
Tel: +81-(0)45-339-3551
Email: sato@ynu.ac.jp

Gilles Dufrénot
Professor of Economics
Sciences Po Aix, AMSE
Maison de l'économie et de lagestion d'Aix
424 chemin du viaduc, CS80429
13097 Aix-en-Provence Cedex 2
Tel: +33-(0)4 13 55 25 60
Email: gilles.dufrenot@sciencespo-aix.fr