Input-Trade Liberalization, Export Prices and Quality Upgrading

Maria Bas () and Vanessa Strauss-Kahn
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Maria Bas: CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, Sciences Po - Sciences Po
Vanessa Strauss-Kahn: ESCP-EAP - ESCP-EAP - Ecole Supérieure de Commerce de Paris

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Abstract: This paper explores the impact of input-trade liberalization on imported input and exported product prices. Using Chinese transaction data for 2000-2006, we capture causal effects between exogenous input tarif reductions and within firm changes in HS6 traded product prices. Identifcation is based on a quasi-natural experiment where some forms are exempt from paying tariffs and stand as a control group. Both imported input and export prices rise. The effect on export prices is specific to forms sourcing inputs from developed economies and exporting output to high-income countries. Results are consistent with a scenario within which forms exploit the input tariff cuts to access high-quality inputs in order to quality-upgrade their exports.

Keywords: Firm heterogeneity; imported inputs; trade liberatization; export prices; quality upgrade; mark-up (search for similar items in EconPapers)
Date: 2013-09-01
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03460775
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Citations: View citations in EconPapers (1)

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