Migration, tariffs, and China's export surge

Chen Liu and Xiao Ma

Journal of International Economics, 2023, vol. 140, issue C

Abstract: We build a multi-sector spatial general equilibrium model that features heterogeneous firms' and workers' location choices to account for China's export surge between 1990 and 2005 using three policy changes: China's import tariffs, tariffs imposed against China's exports, and barriers to internal migration in China. We find that tariff and migration policies jointly accounted for 30% of China's export growth. We also find evidence that suggests a positive interaction effect of tariff and migration policies. As migration reform prepared the country to become more export oriented, China enjoyed faster export growth after opening to trade than it would have otherwise.

Keywords: International trade; Tariffs; Labor-market adjustments; Migration; Firm location choices (search for similar items in EconPapers)
JEL-codes: F1 J6 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:140:y:2023:i:c:s0022199622001283

DOI: 10.1016/j.jinteco.2022.103696

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