Heterogeneous Impact of Non-Tariff Measures through the Global Value Chains: Empirical Evidence from China

Qizhong Yang and Tsunehiro Otsuki
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Qizhong Yang: College of Economics, Aoyama Gakuin University
Tsunehiro Otsuki: Osaka School of International Public Policy, Osaka University

No 20E004, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper investigates the impact of non-tariff measure (NTM)’s stringency on Chinese firms’ positioning in the GVC, which is measured by two types of GVC positioning indices. We then estimate the impact of NTMs on various firm performance by paying special attention to how the impacts vary across firms with different positioning in the GVC. The results show that NTMs imposed against and imposed by China could significantly reduce firms’ linkages with foreign countries, thereby reducing the firms’ importance within the GVC. We also find that stricter NTMs could even hinder firms’ innovative activities and decrease exports and imports. Further analysis indicates that these negative impacts of NTMs on firms are heterogeneous across firms depending on their original position in the GVC.

Keywords: Global value chain; Non-tariff measure (search for similar items in EconPapers)
JEL-codes: F14 F23 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2020-05
New Economics Papers: this item is included in nep-cna and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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