Saera Oh

Saera Oh

PhD Candidate, Michigan State University

Research

Job Market Paper

🔖 Multinational Status and Distance Elasticity - In Progress

Abstract: This study investigates the heterogeneity in trade costs among firms engaged in international trade, with a particular focus on distance elasticity. We explore how trade costs vary depending on whether a firm is multinational and whether transactions occur within or between firms. Beginning with a flagship commodity—bananas, one of the most traded goods globally, but only produced in a certain region—we extend the analysis to encompass all traded commodities. We utilize bill of lading data from S&P Panjiva Supply Chain Intelligence. Distance elasticity is estimated using the tetrads method developed by Head (2010), along with a structural gravity model that incorporates firm-level heterogeneity. This research contributes to the literature on multinational firms and international trade by providing empirical evidence on how global supply chains influence the dynamics of trade costs in global markets.

Working Paper

🔖 Trade Policy, Crop Choice, and Water Stress: Evidence from Mexican Agriculture (with Hyeseon Shin)

Abstract: International trade can influence the crop choices of local farmers, with important implications for water use, as some crops are significantly more water-intensive than others. Yet, trade patterns do not always align with comparative advantages in water availability—water-scarce countries may continue to export water-intensive crops, potentially worsening local water shortages. This study investigates how trade policy shapes crop selection in Mexican agriculture and evaluates its effects on local water resources.

🔖 Global Value Chains and Intellectual Property Right in Agricultural Trade (with Sunghun Lim and Titus Awokuse) - A draft will be provided upon request

Abstract: This study examines the impact of intellectual property rights (IPR)-related trade policy on agri-food global value chains (GVCs). We use IPR provisions in regional trade agreements (RTAs) as a proxy for IPR-related trade policy. The empirical specification follows a gravity model. We explore the trade effects of IPR provisions based on their specific characteristics using the deep trade agreement data published by the World Bank. Additionally, the study analyzes the effects of IPR provisions by income pair group. The results indicate that average bilateral agricultural GVC trade participation decreases between members with RTAs containing IPR provisions compared to those without them. However, the effects vary by the type of IPR provisions. The findings suggest that interactive effects between different types of IPR provisions are crucial for enhancing agricultural and food GVC trade, while single-type IPR provisions have negative effects. These effects are more pronounced in the agriculture sector compared to the food sector and vary across income levels.

Publication

🔖 Geopolitical Risks and Agricultural Trade Diversification in Southern Africa: Port-level Evidence from the Russia-Ukraine War
(with Sunghun Lim) - at Journal of the Agricultural and Applied Economics Association

Abstract With the spread of global agricultural value chains, international geopolitical risks often unintentionally trigger food insecurity in bystander countries. This study explores the impact of Russia's invasion of Ukraine on wheat supplies in South Africa and their trade diversification. Using port-level trade data, we show that South Africa, the main distribution route for South African wheat supplies, rapidly diversified its imports to mitigate geopolitical risk in the aftermath of the war. This sudden import diversification prevented the war-induced decline in average wheat imports, yet it led to an increase in the volatility of annual imports. More importantly, the import diversification contributed to more secure wheat supplies for southern African landlocked countries that were heavily reliant on border imports from South Africa. Our study highlights that sourcing diversification in a country with well-developed port infrastructure could be instrumental in stave off food insecurity in neighboring countries in times of geopolitical crises.