Internal Seminar: Zijun Cheng

China Shock and the Internal Organization of Firms: Evidence from French Business Groups

This paper studies how French business groups reorganize in response to China’s rise in global trade. Combining firm- and group-level data on ownership links, foreign affiliates, trade exposure, and occupations, we examine both domestic adjustments in management structure and changes in the international organization of firms. We construct exposure measures based on pre-shock industry composition and show that more exposed groups reallocate managerial resources within France and adjust their foreign affiliate networks. These patterns suggest that trade shocks reshape not only production and employment, but also the internal organization of business groups. The findings highlight the role of business-group restructuring in mediating the domestic effects of globalization.

Room A406.