How did China's WTO entry affect U.S. prices?

Amiti, Mary; Dai, Mi; Feenstra, Robert; Romalis, John

How did China's WTO entry affect U.S. prices?

Mary Amiti, Mi Dai, Robert Feenstra and John Romalis

Journal of International Economics, 2020, vol. 126, issue C

Abstract: We analyze the effects of China's rapid export expansion following its WTO entry on the U.S. prices of manufacturing goods between 2000 and 2006, exploiting cross-industry variation in trade liberalization. Lower input tariffs in China lowered costs and, in conjunction with reduced U.S. tariff uncertainty, expanded China's export participation. WTO entry therefore led to lower effective prices for Chinese exports, and we find a substantial reduction in the prices of other countries selling to the U.S., too. The largest contribution to the overall price reduction comes from lower inputs tariffs in China, with further price reductions caused by the reduction in tariff uncertainty. Other policy reforms such as the elimination of U.S. quotas under the Multifibre Agreements and of Chinese export controls also reduced prices.

Keywords: Trade liberalization; Input tariffs; China exports; Variety (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199620300556
Full text for ScienceDirect subscribers only

Related works:
Working Paper: How Did China’s WTO Entry Affect U.S. Prices? (2017)
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:eee:inecon:v:126:y:2020:i:c:s0022199620300556

DOI: 10.1016/j.jinteco.2020.103339

Access Statistics for this article

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().