All-Around Trade Liberalization and Firm-Level Employment: Theory and Evidence from China

Antonio Rodriguez-Lopez and Miaojie Yu

No 6710, CESifo Working Paper Series from CESifo

Abstract: Chinese firms faced an all-around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries’ goods and inputs. Using novel firm-level tariff data for trading Chinese manufacturing firms, this paper disentangles the effects of each type of trade liberalization on Chinese firm-level em-ployment. For each firm type, reductions in Chinese and foreign final-good tariffs are associated with job destruction in low-productivity firms and job creation in high-productivity firms. In contrast, the net effect of reductions in Chinese input tariffs is limited to job destruction in low-productivity ordinary exporters.

Keywords: firm-level employment; firm-level tariffs; heterogeneous firms (search for similar items in EconPapers)
JEL-codes: F12 F14 F16 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cna, nep-int, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6710

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