EconPapers    
Economics at your fingertips  
 

Trade Liberalization and the Extensive Margin of Differentiated Goods: Evidence from China

Johannes Van Biesebroeck, Yingting Yi and Elena Zaurino (elena.zaurino@ec.europa.eu)

No 15906, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We exploit tariff reductions associated with China’s entry into the WTO to evaluate whether the response of trade flows at the extensive margin depends on the degree of product differentiation. We adopt a 4-way difference-in-differences approach to identify the effects as cleanly as possible by comparing market entry of products from each WTO member into China with entry into India and Indonesia. The absolute tariff elasticities are estimated to be relatively large, compared to existing estimates. This is especially true for differentiated goods, for goods with low Chinese demand elasticity, and for exports from OECD countries. We provide both new evidence and a theoretical justification for the heterogeneity of these effects across products and countries.

Keywords: Wto; Import tariff; Trade policy; Exports (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-int and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP15906 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Trade liberalisation and the extensive margin of differentiated goods: Evidence from China (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:15906

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15906
orders@cepr.org

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by (repec@cepr.org).

 
Page updated 2024-12-28
Handle: RePEc:cpr:ceprdp:15906